Subordinated debt financing
Subordinated Debt

Complete Capital Solutions for Business Growth

Subordinated debt fills the financing gap when senior debt alone isn't enough. Get the capital you need to reach the next level.

Learn About Sub Debt

What is Subordinated Debt?

Subordinated debt (also known as "sub debt") is a form of financing that ranks below senior debt in terms of claim on assets. It often supplements senior bank financing for businesses that need more capital than traditional lending can provide.

Junior Position

Ranks below senior debt in repayment priority, but offers higher potential returns for investors.

Higher Capital

Access more capital than senior debt alone would allow for significant growth initiatives.

Flexible Terms

Customized terms that work alongside your existing senior debt financing.

Growth Focus

Ideal for acquisitions, major expansions, or scaling operations significantly.

No Equity Lost

Unlike equity financing, sub debt doesn't require giving up ownership in your business.

Fixed Schedule

Predictable repayment schedule with regular interest payments.

When to Consider

Is Subordinated Debt Right for Your Business?

Sub debt is typically used by established businesses that need additional capital beyond what senior bank financing can provide.

  • Business Acquisitions

    Finance buyouts or acquisitions where senior debt alone isn't enough.

  • Major Expansion Projects

    Scale operations significantly with multi-million dollar growth initiatives.

  • Management Buyouts

    Help management teams purchase ownership from existing stakeholders.

  • Recapitalization

    Restructure existing debt while accessing additional growth capital.

Sub Debt Details

Loan Amount $500,000 - $10,000,000
Term Length 3 - 10 Years
Interest Rate Higher than Senior Debt
Approval Time 2 - 6 Weeks
Credit Score Typically 650+
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