Our Advantage

Closely-held companies and family businesses may be reluctant to pursue debt financing due to concerns over loss of ownership or control of the business. Euro Credit’s collateralized securities loans can alleviate these concerns. Further, the outside debt specialists that we work with can structure debt financing that has demonstrable over equity financing options, such as taking on an ownership investor for a developing business. These specialists adhere to our partnership philosophy to identify the right partner-lender that can participate in the management of a business to achieve the strongest possible operations and returns, but that will also leave the ownership and control to existing management.

In many cases, we can refer clients to independent debt financing consultants who can also develop debt financing options that allow principal and interest payments on business loans to be recorded as business expenses. (Please understand that Euro Credit does not offer tax, legal, or accounting advice and we make no specific representations regarding the deductibility of any payments. In all instances, we strongly urge clients to consult with their own financial advisors to confirm which of those expenses may be deductible from business income taxes.)

The independent debt financing consultants in our referral network offer other debt financing advantages for a growing business:

Euro Credit offers other debt financing advantages for a growing business:

Simplified budgeting and more definitive planning

Debt financing services can be planned and structured to enable a client to budget and plan for the cost of a loan. The client always knows the exact principal balance, loan payments and due dates, and interest rates. These are typically hard fixed costs that are easily forecasted and recorded.

Reduction of uncertainty

Equity financing can impose several orders of magnitude of uncertainty on a growing business. An experienced debt advisory consultant can help clients to reduce that uncertainty and to achieve stronger and more definitive operating projections.

Higher returns over costs

A business might pay returns of 15% or more through profits and dividend distributions to equity investors. Comparable costs in a well-structured debt financing solution may be less than 10%.

Improved flexibility to achieve growth and expansion

The best third-party debt financing advisors start each engagement by gaining a thorough understanding of the client’s goals. Those goals then inform the debt financing solution such that the correct debt structure is the tool that paves the path to achieve those goals.

Contingency planning with debt financing

Uncertain economic conditions and economic threats can derail even the strongest business that is experiencing a high-growth phase. Euro Credit frequently recommends that a client consider debt financing during these periods of strong financial performance, either directly from Euro Credit with a collateralized securities loan or with one of the independent debt financing specialists that we work with. Periods of strong growth are the best times to build a relationship with the right financial services firm. With an established relationship, the business can then enjoy easy access to debt capital during downward phases in a business cycle.

Creation of business credit

Enterprises that establish a trustworthy record of debt repayment will have greater access to debt and equity capital during future financings. Clients should consult directly with their debt service providers for assistance in the creation and development of business credit through debt financings that are reported and analyzed by the proper ratings services.
Euro Credit is a direct provider of certain specific services. Euro Credit reserves the right to refer inquiries for some services to third parties that are licensed or registered to provide those services where licensing or registration may be required by the laws of the applicable jurisdictions in which those services are offered. Euro Credit provides its services fully in accordance with applicable laws, rules, and regulations of all jurisdictions in which it conducts business or otherwise engages in transactions with contracting counterparts, either directly to the extent that an obligation, exemption, or exclusion for licensure applies, or otherwise through third-party licensees.