Our Solutions

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
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Qualifying Determinants

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

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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
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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

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Qualifying Determinants

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