OUR
SOLUTIONS
INVESTMENT CRITERIA
Aequum provides structured loans tailored to borrower’s capital needs. In an effort to provide transparency, below are general loan structures and guidelines for Aequum’s target borrower profile.
Loan Structure:
Revolving Lines and Term Loans
Loan Amounts:
$2M-$15M
Years in Business:
> 2 years
Rates:
10% to 16%
Fees:
0.5%-2.0%
Duration:
Up to 3 Years
Industries:
Preference in Business Services, Wholesale, Manufacturing, Consumer Products, Tech enabled, E-Commerce
Geography:
United States
Asset Based Loans
Description
Comprehensive and complex loans to a diverse array of lending scenarios and environments. These include Working Capital and Term Loans, Early Stage Turnarounds, DIP and Exit Financings to a range of businesses on the credit spectrum.
Revenue
$5 to 50M
Purpose
Bank Refinancing/Increase Working Capital
Support Turnaround
Debt Consolidation/Restructurings
Informal and Formal Composition of Creditors
Understand and Underwrite Highly Leveraged Companies

Qualifying Determinants
‍Company Governance
Engaged and Invested Management and Staff
Quality Asset Pool
Clear Measurable Forecast



Term Loans and Structured Loans
Description
Loans with maturity of one year or more made to borrowers that are well established, have predictable earnings and cash flow, and experienced management.

Revenue
$5M to 50M
Purpose
Refinancing
Growth Capital
Acquisitions
Disbursements
Investments
Asset Purchase / Expansion
Long Term Working Capital Restructure
Key Staff Hires
Qualifying Determinants
Company Governance
Management Assessment
Historical Strength of Cash Flows
Predictability of Future Cash Flows
Collateral
Financial Statement Strength
Supplier and Customer Relationships
Short Term Bridge Loans
Description
Short Term bridge loans for a specific purpose are made available from time to time. The full amount is expected to be repaid or convert to a term loan in less than one year. The most common extension of a bridge loan is 90 - 180 days.
Revenue
$10 to 50M
Purpose
Very specific one time purpose






Qualifying Determinants
Company Governance
Ability to Generate CF to Repay Loan
Collateral
Guarantee Strength
Refinanceability