Debt financing includes both secured and unsecured loans. For secured loans, the security may either be a charge on a specific asset type or a general ‘floating’ charge. In either case, the lender is in a more secure position than the unsecured creditors and will have specific rights that must be taken account of as the business progresses. Where the business has little in the way of assets, most lenders will require personal guarantees from key stakeholders; possibly supported with security against personal assets.
We not only have access to our own “Catalyst” fund but also access to a number of asset-based lenders and angel investors. The key is in ensuring that the business has access to the right funders who can develop the right relationship with the current stakeholders. The market for turnaround funding is continuing to expand and diversify and our guidance can be crucial in securing the right funding partner.