Rainstar Capital Group looks to grow Production Financing Lending Platform in 2020!
Rainstar Capital Group, a Grand Rapids, Michigan based national debt advisory firm announced today it was focused heavily on providing growth capital to clients in the lower and middle market spaces through its production financing product line.
Rainstar Capital Group led by CEO- Kurt Nederveld made the following statement, “Production Financing is an incredible solution for clients seeking growth capital that do not want to sell off equity in their firm. When a client is tapped out on liquidity from their existing revolving line of credit or need capital above and beyond their current asset based lending solution, production financing becomes a viable solution.”
Production financing is a financing solution that is neither debt nor equity, which bankers and clients love as it does not interfere with their existing conventional debt products. How it works is when a client has a growth opportunity and is lacking inventory to fulfill that order the hedge funds that back the strategy come in and purchase up to 100% of the requisite inventory, finished goods or raw materials that the client needs to fulfill the growth opportunity. The hedge funds mark up the inventory, resells it to the client, who then sells it to their client. The hedge fund becomes an accounts payable on the balance sheet and stretches our the terms of repayment up to 150 days allowing the revenue from the new growth opportunity to kick in. The program works for most industries and inventory types.
“We are receiving a lot of referrals for this product line from our middle market and C/I banker partners,” noted Rainstar Capital Group’s Nederveld, “Bankers benefit as they grow their depository relationships with their existing clients as when we are able to help the client lock in potentially millions in new revenue that flows through the client’s depository relationship!”
The qualifications for the production financing program are primarily available to B2B clients but can be used by B2C businesses as well. Clients that best fit the program are doing a minimum of $3 Million in annual revenue and have a minimum production financing request size of $250k in deal size request. They are experiencing a growth curve and need additional capital above and beyond their existing debt solutions but do not want to sell off equity.
“2019 was a great year for this program,” noted Nederveld, “We look forward to continuing to assist our clients with this innovative solution here in 2020!
Rainstar Capital Group provides term loans, equipment financing, unsecured lines of credit, senior debt facilities for commercial real estate and working capital solutions through its lending platform of 250 registered lenders, while investing in distressed debt portfolios, commercial and residential real estate. The firm operates a national platform with representation in multiple cities and states.
Rainstar Capital Group noted that it was providing growth capital to clients seeking commercial real estate, corporate finance, equipment and working capital solutions. The firm noted that they continue to grow their internal team of Managing Directors with a focus on hiring commercial bankers and capital market professionals. Interested finance professionals can apply here: rainstarcapitalgroup.com/careers
For more information on Rainstar Capital Group visit rainstarcapitalgroup.com or email [email protected].