Subordinated Debt
Access non-dilutive capital from market leaders in $100K to $1OMM transactions without real estate or collateral.
What Do You Need to Qualify for Subordinated Debt Financing?
1+ Year in Business
$1M+ in Annual Revenue
Terms that allow you or your clients to Grow to Greatness.
Loan Size
$100K to $10MM
Terms
Up to 24 months
Rates
Starting at 15%
Subordinate debt is second-tier debt. The subordinate lender has a second lien position, whereas the senior lender retains the right to the first lien position. The first position has the right to remain whole, meaning that they're entitled to repayment before the second-tier lender. Senior lenders are typically asset-based, while subordinated Ienders can be any type of financial institution. Whether you're a business owner, a private equity group, or a senior lender, subordinated debt financing is a powerful tool for accessing the capital necessary to complete transactions alongside a senior lender or to grow without having to pay off your senior lender.
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Have questions or want to learn more about our loans? We're here to help! Contact us today to discuss your business financing needs and discover how Small Biz Loans can support your growth. We look forward to hearing from you!