Financing Solutions

Long Term Financing

Long Term Financing

Successful business owners are often frustrated in their search for long-term financing that does not involve issuing equity. As a business owner or operator, you may be in the situation where:

  1. You have grown large enough to have significant need for capital
  2. You own a thriving business, so dilution has little appeal
  3. You can’t get the capital you want on the terms you want from banks or other traditional lenders.

Access to long-term non-dilutive capital allows business owners to defer repayment to the point that it can be considered to be permanent capital.

Crown’s Long Term Financing products consist of loans, royalty structures and income streaming with terms of five years or greater. Long-term non-dilutive capital can be structured in a number of forms:

  • Fixed rate long-term loan – long-term loan to a business with a defined principal repayment and interest payment
  • Participating loan – long-term loan with principal repayment and interest linked to the performance of a business or project
  • Perpetual debt – secured financing offered to a business with no fixed terms of principal repayment but a defined interest payment
  • Income streaming – secured financing of or direct ownership in assets with either fixed or defined income participation
  • Royalty interest – secured financing offered to a business with no fixed terms of principal repayment but fixed or defined income participation

Long-term financing solutions are structured to achieve a consistent cash payment to Crown and typically do not include the additional return-enhancing bonus features that may be present in Special Situations. Long-term financing transactions include medium to high prepayment penalties with limited or no amortization.

Investment Structure and Terms:

Investment vehicle Royalty interest, perpetual debt, term loans, income streaming
Overall cost of capital 10% – 16%
Bonus feature Nil
Target loan size $10 million to $50 million
Duration 5 years to indefinite
Amortization Flexible
Prepayment cost Medium to high
Company ownership Predominantly private

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Find out about our Special Situations Financing