Multi-layered capital structures can often be outstripped when a portfolio company is presented with large sales opportunities.
Equity firms can add tremendous value to their investment if they are able to source funding for clients to execute and deliver new orders.
– Better still, source funding without diluting any further equity or pledging further security outside of current holdings.
Here the common scenario:
- Portfolio company’s growth is outpacing working capital
- Funds are required to support sales opportunities
- A temporary infusion of capital is needed
- Borrowing base exceeds the bank’s credit allowances
- Diluting further equity is not desirable
Consider Stak’s trade financing program – an alternative to injecting more equity.
We offer unique financial strategies and cash flow tools to private equity firms, venture capitalists as well as bankers representing companies looking to raise debt or equity.
Stak’s structured funding programs bridge cash gaps others simply can’t:
- Finance up to 100% of inventory cost including 3PL warehoused stock
- Fulfil international and domestic contract opportunities
- Expand open credit terms from suppliers that may not yet be available
- Extend credit terms to foreign or domestic buyers up to 120 days
- Production financing as needed to support incremental sales opportunities
- Receivables financing domestic or internationally is not an obstacle
Here’s a typical client we fund in tandem with equity firms:
- Has experience in industry/business
- Importing/exporting knowledge is desired
- Fast growing or seasonal business
- Undercapitalised relative to customer demand
- Gross margins of 20%+ or fast transaction cash cycle
- Has creditworthy buyers that provide purchase orders or contracts
- Scalable Inventory and/or receivables financing needed
If you’ve reached your desired investment level, founders don’t wish to sell down more equity or existing funding facilities have hit their ceiling, Stak’s entrepreneurial approach can help.
See if Stak can help your portfolio companies
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We regularly share our thoughts on trade finance, lending, company culture, product strategy and design.
Stak works with clients that sell to some of the largest buyers in Australia & overseas.
