![]() It’s the flexibility that some structured debt facilities offer which appeals to both SMEs and lenders as it means neither would lose out if the business fails.īusinesses often choose structured debt options to help develop to the next level through refinancing options, acquisitions or mergers and other flexible options available. Structuring their debt with finance options such as mezzanine financing offers a flexible option for lenders who are able to convert equity interest if the loan repayments aren’t made. Many mid-market businesses choose structured debt as a way to increase working capital reserves within their business, helping to create efficient cash flow whilst making savings on repayments. Structured debt finance options offer most SMEs and mid-market businesses the chance to grow significantly, whether it’s via management buy-out or refinancing existing debt, which makes it a very appealing option for ambitious businesses in the UK. Why would businesses choose structured debt? This type of business finance is used to help inject substantial amounts of capital into larger or more complex businesses, structured debt is often a funding option used by SMEs which are looking to scale their growth plans, develop new product lines, refinance existing debt, acquire other SMEs or restructure shareholding. Structured debt also offers great benefits for businesses such as royalty repayment methods and restructuring plans that accelerate profits and growth. The overarching goal with structured debt is to supply the capital to aid business growth. If you feel as though you or your business could benefit from our services, then contact us today.Structured debt typically refers to a mix of different financial debt products which are designed to sit alongside one another to cover the total amount of funds needed. See How We Can Deliver Competitive, Prompt Structured Finance TodayĪt Pure Structured Finance, we offer a speedy service, a personal approach and levy our years of experience to find you a competitive deal. This raises cash and liquidity by restructuring and combining assets which, when sold, gains interest from investors.Īs processes like this suggest, it is a complicated, complex financial instrument, which is why structured finance is there for times when linear finance pathways won’t work. The major reason for this difference is structured finance’s use of a process called securitisation. While other financial strategies may be better for smaller, simpler problems, structured finance is, by definition, an approach that only really works for big projects. The major difference between structured finance and other financial offerings is its ability to form bespoke deals on large, high value projects. How Does Structured Finance Differ From Other Financial Offerings? Can help to remove specific, undesirable assets.įor most, however, the biggest benefit of structured finance is how it delivers complex solutions in a simple, easy-to-grasp package.Ability to upscale financial solutions. ![]()
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