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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:
- You have grown large enough to have significant need for capital;
- You own a thriving business, so dilution has little appeal;
- You cannot get the capital needed 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.
Click to view our Long-Term Financing product information sheet
Investment Structure and Terms
|Investment vehicle||Royalty interest, perpetual debt, term loans, income streaming|
|Overall cost of capital||10% – 16%|
|Target loan size||$10 million to $50 million|
|Duration||5 years to indefinite|
|Prepayment cost||Medium to high|
|Company ownership||Predominantly private|