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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:

  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 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

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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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