Each loan request is unique simply because companies, their economic circumstances and conditions, are unique. Mass Growth Capital Corp, therefore, does not operate with a one-size-fits-all approach.
Loan Officers at MGCC have the experience to help a prospective borrower identify the most appropriate loan product for its needs and to structure the loan accordingly.
These loan products are the most frequently used loan types. They can be used in combination and, in some cases, are converted from one type to another:
Many of our loans are made in conjunction with bank financing. Typically, the bank will have a senior position on assets and MGCC will be in a subordinated position. These loans are usually written as 5 year Term Loans
Lines of Credit
When a company needs to receive partial advances of loan proceeds to meet working capital needs, such as for a seasonable business, a one year Line of Credit may be appropriate. A Line of Credit may be renewed for a second year or may be converted to a Term Loan.
Working capital requirements are not often easily handled within one year. Cash flow is typically insufficient to repay all but the smallest loan in a year. Five year Term Loans therefore provide a useful time frame – long enough for cash flow to increase and to allow MGCC to be repaid.
Contract and Purchase Order Financing
Winning a contract or a purchase order usually requires a firm to support labor, materials and overhead cost before billing and being paid for the work. Contract and Purchase Order financing can bridge this timing gap. Typically, a percent of the order value will be loaned, and repaid when the firm receives payment.
If a bank cannot extend needed credit because the collateral is inadequate, MGCC can provide a partial and limited Guarantee to enable the bank to make the loan.