Capital Formation and Financial Advisory
Chicago Capital Holdings can support your funding needs in the following areas:
Discounted Note Purchases are used by commercial borrowers who have defaulted on their bank loan agreements and / or whose primary lending bank may have fallen in to receivership. Notes are purchased at a fraction of the face value which allows the borrower to improve its balance sheet and its cash flow.
Distressed Real Estate Financing is used by lenders and investors to develop liquidity and to optimize recovery for failed residential and mixed use development properties. We provide a unique solution for the disposition of asset classes ranging from raw land to partially completed communities to ‘delivered / not sold’ buildings. Our financing enables the stakeholders of a property to achieve higher valuations than would otherwise be available to them.
Asset Based Lending is used by companies which have an established track record, but which operate within cyclical industries that are not attractive to most banks. Asset based loans are secured by a borrower’s accounts receivable, inventory, equipment, and/or real estate. The availability of this type of financing increases and declines in proportion with the borrower’s changes in accounts receivable and inventory.
Compared to commercial banks, asset based lenders are more comfortable lending to cyclical businesses because of their expertise in evaluating collateral. Since their loans are backed by collateral, asset based lenders are more likely to continue supporting their borrowers during an economic downturn.
Factoring is a form of financing whereby a business sells its accounts receivable to obtain cash. Proceeds from factoring can be used to fund working capital, purchase new inventory or equipment, acquire a business, pay a dividend, etc.
Factoring is generally a viable alternative when a business sells products or services to an unaffiliated business which is creditworthy. Various trade terms are acceptable however standard terms are net 30 days. Companies with progress payments are generally not accepted
Companies that rely on factoring are generally relatively new and have not established their own bank credit, have bank lines but have temporarily exceeded their borrowing capacity, or are experiencing an earnings decline and need alternatives to their bank financing. Factoring is often a more desirable alternative than raising equity especially if the need is short term.
Chicago Capital’s Financial Advisory services are focused on the following core areas:
1. Metal Fabrication
3. Real Estate