Securing Growth Capital with Edge.
As companies grow, a reliable source of capital is necessary to fund expansion expenses that inevitably accompany growth. Rather than turning to dilutive equity, many companies instead choose revolving lines of credit, allowing businesses the freedom to withdraw funds as needed for important things like payroll, renovations, operating expenses, and product and market expansion.
While lower in cost, lines of credit from regulated institutions often come with a lot of hoops to jump through and conditions to be met before capital can be made available. For example, if a business is launching a new product or service, the lender may be required to turn to their legal team to investigate that new offering and paper the expansion. This may result in valuable time and market share lost during that lender’s review with legal expenses passed along to the borrower. Even if “bankable”, many companies experiencing fast-paced growth recognize these bank-inherent risks and instead decide to pay a little more for the flexibility and financial stability that comes with borrowing from non-bank lenders.
- NEdge Capital gives its borrowers the freedom to make their own business expansion decisions without undue hoops to jump through or time spent waiting for internal approvals.
- NRather than focusing on current cashflows and past company performance, Edge looks holistically at a company – to its projections, the typical billing practices of its specific market and its growth needs to craft bespoke lending solutions that maximize borrower availability.
- NEdge is not wed to using “standard” ABL asset-class advance rates or collateral types. Instead, we have the ability to tie advance rates to specific products and to lend against an abundance of imperfect collateral.
- NWe often include accordians in our lending agreements, so that access to additional growth capital and line increases is a quick and streamlined process.
- NEdge helps our clients to secure inventory, meet purchase orders from time-to-time and hire the people necessary to facilitate growth, all without diluting the company’s equity.