business short on cash?
You've worked hard. You've built a great company. Right now you have this great business opportunity in front of you, but you're short on cash. Without help, you just can't get it done. That's where we come into your life. We'll work together on a plan that includes a short term investment to help get the results you desire. We'll provide the partnership and capital you need to succeed. Together, we'll help you accomplish your goals and avoid failure. In the end, you'll be running a better company for it.
Do you need working capital in less than a week? Get the cash you need and stop worrying.
We're your business line of credit when you're too small for your bank.
Working capital is the lifeblood of your company. Without it your business is dead.
Too often businesses can face a cash crunch.
Rapid growth, new projects, a big sale, seasonality, late A/R - many things can cause a shortage of cash.
We can help.
A revenue based investor makes a short term cash infusion into your business. Think of it as something between a bank loan and private equity.
If a cash crunch happens, companies need money fast. Banks are often too conservative, and equity investors are going to take too long. Plus, banks come with strict payback terms and covenants, and equity investment is dilutive.
Revenue based financing is designed to be flexible, easy, fast, and pain-free.
Use it when you can't get or don't want a bank loan, and when you don't want an equity investment to dilute your cap table or take a board seat.
How does it work?
As an example, say a company lands a big sale and needs to purchase materials and hire some temporary subcontractors. It just does not have the extra cash and A/R in the next six months to deliver on the sale. It works with the investor and they determine the company needs $125,000 for 8 months and their average monthly sales is ~$279,000. The investor agrees to advance $125,000 next week, and every month the company agrees to pay back 6% of its average monthly sales amount (or ~$16,750/month) until the investment is paid back to the investor.
We'll provide working capital to help your business get through tough cash times. We can usually provide cash within a week.
What kind of company are we looking for? Our investment criteria includes:
We'll work with you to understand your unique situation and look at things like monthly opex, margins and profit, average bank balances, monthly/annual revenue, outstanding and available debt, cap table, financial management, governance, and processes and procedures. It sounds like a lot, but we know what we're looking for and the process is fast.
There are many benefits to the investment we make, beyond the success you seek to find with the cash. This is not a loan, there are is not a payback term or set monthly amount, no covenants, and no interest. This is not equity, there is no control, no governance or Board seat, and it is non-dilutive. There are no warrants, no personal guarantees.
In addition, there is flexibility. Monthly payments can vary based on revenue, and you can scale payments as sales ebb and flow. You can take multiple draws, stacking as needed with us. And you can prepay at a reduced cost.
All in all, we've got a pretty elegant solution for your working capital needs.
We love seeing companies succeed.
We're passionate about investing and operations, and we're great at both. When we put money in, we look to take an active consultative and advisory role alongside you. This reduces our risk (and your cost) and gives you some expertise that you may not have on your team. We're not looking for any control or governance, we're just looking to make you a superstar when it comes to managing working capital.
Once we've worked together, you'll run a better company, and always have a person to ask for advice.
Our philosophy is to help you build a stronger company so you don't need us in the future.
But if you do, we're always here to help.
The founders started seeing the need for working capital financing while they were in private equity. Private equity invests in things like long term operations, and change in ownership. Often, we saw companies that didn't need $5MM for 5 years, they needed $500k for 5 months - short term operational capital, or working capital.
That's how Candler McLendon came about. To provide short term bridges to profitable operating companies that were short on cash they needed to grow, expand, or surge. To invest short term in healthy companies that had a vision and were doing things right.