Capitalize on Opportunity Offered by Changed Lending Landscape
You need only grab a beer with fellow business leaders or get a haircut at the local barber to find yourself amid buzz on how the lending environment is becoming more challenging to navigate…tightening credit requirements, cautious bankers, and continued upward pressure on interest rates. This felt shift is impacting deals across our region – sometimes even midstream – as businesses face new and mounting hurdles to assemble the capital necessary to fuel their expansion projects.
You are also not alone if you are feeling greater internal scrutiny of your capital expenditure plan. Some are responding by choosing to not tie up resources in real estate, seeking to lease instead. Developers, however, are seeing the credit spigot from banks slow too as the spread between project cap rates and borrowing rates are tighter than they have ever been.
Washington County businesses and developers are uniquely positioned, however, with a practical solution to overcome these obstacles and seize growth opportunity. By leveraging the Washington County Impact Revolving Loan Fund (RLF), companies can tap into a financial resource that serves as equity in the deal, reduces the burden on the company’s existing capital and allows for optimized capital stack structuring in the project.
Flexible Financing Options at Below Market Rates
The Impact Fund accommodates a wide range of funding needs with amounts ranging from $100,000 to $1,000,000. Incentive interest rates unlock funds at lower cost, thereby reducing the financial burden and internal scrutiny associated with today’s growth investments. Additionally, there are often no pre-payment penalties so businesses can repay ahead of schedule and save even further on interest. All this flexibility enables businesses of various sizes and industries to pursue their expansion plans confidently knowing necessary capital is within reach.
Extended Terms and Amortization
Recognizing the long-term nature of many expansion projects, the Impact Fund offers generous terms and amortization periods of up to 25 years. This extended timeline eases the financial strain on businesses who can spread out their repayment obligations over a more extended period, reducing the immediate impact on cash flow.
Creative Collateral Options
No doubt your lender requires the pole position on collateral. With the Impact Fund, businesses gain the advantage of flexible collateral options in subordinate positions behind the lead lender and the Small Business Administration (SBA) if involved. This arrangement provides additional security to lenders, thus increasing the likelihood of closing the deal on the level of financing your project truly requires.
Combined…Grab Market Share When Others Aren’t
By leveraging these benefits of the Impact Fund, businesses can strategically allocate capital towards initiatives that directly contribute to gaining market share. Whether through marketing and advertising, expanding product offerings, enhancing customer experience, upgrading infrastructure, investing in R&D, or upgrading worker skills, businesses can position themselves for growth and achieve a larger share of the market.
Another opportune approach to gain market share is through mergers, acquisitions, or succession. The resources provided by the Impact Fund can be utilized to help finance such ventures. Acquiring competitors or forming strategic partnerships with complementary businesses can help expand the customer base, leverage synergies, and penetrate new markets. These strategic moves can thus often lead to a significant increase in market share and establish the business as a dominant player.
Past recessions have proven to EDWC something special about our corporate community…that’s when many Washington County businesses choose to make their move. Don’t let tightening credit requirements, risk-averse lenders, and rising interest rates hinder your expansion ambitions. Take advantage of this unique incentive to propel your business forward while your competition waits for clearer skies.
Share Your Experience with Us
We’d love to hear how your business is experiencing this current credit environment. Perhaps you have some added navigation tips we can share in the future. Or, maybe, you’d simply like to discuss your specific situation and are looking for insights on how we can tailor a financing solution that aligns with your goals. Click the button below towhere you can share your story with us.
