© All Rights Reserved. 5th Line Capital, LLC 2024
Experts in Lower-Middle-Market Finance & Tailored Credit Solutions
We are committed to delivering credit solutions for operating businesses in the lower middle market.
Our expertise includes Acquisition Financing, Growth Capital and Working Capital, allowing us to cater to a wide range of business needs while fostering long-term partnerships with our clients.
Our expertise includes Acquisition Financing, Growth Capital and Working Capital, allowing us to cater to a wide range of business needs while fostering long-term partnerships with our clients.
We combine a process-driven approach with industry-specific expertise, delivered by client-focused professionals. By leveraging our extensive network of both private credit and traditional banks, we source optimal credit solutions that align with your strategic objectives.
$5MM +
Starting Capital Ask
$1MM +
EBITDA
21
Industries & Sectors Served
Experts in Lower-Middle-Market Finance & Tailored Credit Solutions
We are committed to delivering credit solutions for operating businesses in the lower middle market.
Our expertise includes Acquisition Financing, Growth Capital and Working Capital, allowing us to cater to a wide range of business needs while fostering long-term partnerships with our clients.
Our expertise includes Acquisition Financing, Growth Capital and Working Capital, allowing us to cater to a wide range of business needs while fostering long-term partnerships with our clients.
We combine a process-driven approach with industry-specific expertise, delivered by client-focused professionals. By leveraging our extensive network of both private credit and traditional banks, we source optimal credit solutions that align with your strategic objectives.
Identifying Lenders
One of the advantages of working with 5th Line is gaining access to our extensive network of lenders. We’ve worked with private credit firms spanning multiple asset classes, which gives us access to a range of financing options that can meet your company’s debt needs.
Whether your company is pre-revenue, backed by investors, bootstrapped, or preparing for an IPO, the experienced 5th Line team can connect you with lenders who are familiar with your industry and ready to support your company’s growth.
We understand that growing companies need a true partner and approach the process with expectations beyond a simple transaction. We’ll identify and connect you with lenders who are right for your team and ready to work toward a shared vision.
Whether your company is pre-revenue, backed by investors, bootstrapped, or preparing for an IPO, the experienced 5th Line team can connect you with lenders who are familiar with your industry and ready to support your company’s growth.
We understand that growing companies need a true partner and approach the process with expectations beyond a simple transaction. We’ll identify and connect you with lenders who are right for your team and ready to work toward a shared vision.
Process Managenent
5th Line is your strategic partner as you navigate the process of pursuing venture debt, and we’ll make sure you know what to anticipate at every stage.
For example:
By managing day-to-day lender communications, we aim to alleviate the burden on your team. You can stay focused on running the business, and we’ll handle the finer details of the financing process.
For example:
- We’ll consult with you to discuss lender meetings
- We frequently offer feedback and recommend next steps
- As needed, we participate in key lender calls to help steer the conversation in the right direction and communicate important points
By managing day-to-day lender communications, we aim to alleviate the burden on your team. You can stay focused on running the business, and we’ll handle the finer details of the financing process.
Term Sheet Negotiations
At this stage, it’s important to preserve a delicate balance. You’ll need tactical skill and relationship management to push for better terms while working towards a mutually beneficial partnership.
5th Line has experience negotiating with lenders, and we have a thorough understanding of the dynamics between lenders and growth-stage companies. We’ll work to secure favorable terms and keep the door open for future deals with your chosen lender.
We also strive to minimize any friction that may arise during the negotiation process. By avoiding drawn-out discussions that lead to deal fatigue and strained relationships, we’ll help you move forward efficiently.
Ready to enter term sheet negotiations with confidence? 5th Line’s strategic guidance and advocacy will help you secure better terms and uphold lender rapport.
5th Line has experience negotiating with lenders, and we have a thorough understanding of the dynamics between lenders and growth-stage companies. We’ll work to secure favorable terms and keep the door open for future deals with your chosen lender.
We also strive to minimize any friction that may arise during the negotiation process. By avoiding drawn-out discussions that lead to deal fatigue and strained relationships, we’ll help you move forward efficiently.
Ready to enter term sheet negotiations with confidence? 5th Line’s strategic guidance and advocacy will help you secure better terms and uphold lender rapport.
Where We Focus
Growth Capital
Growth capital enables businesses to fund strategic expansion efforts such as entering new markets, hiring key talent, and enhancing operations without sacrificing ownership. Financing options might include projection-based loans that align with future revenue growth or delayed draw term loans that provide funds incrementally as expansion progresses. This ensures businesses can deploy capital efficiently and sustainably.
Refinancings
Refinancing replaces existing debt with more favorable terms, improving cash flow and lowering repayment burdens. This could involve securing lower interest rates, extending amortization to reduce monthly payments, or restructuring loans with a mix of current cash pay and PIK (Payment in Kind) structures, where part of the interest accrues instead of requiring immediate payment.
Acquisition Finance
Helping owner-operators and sponsors, including independent sponsors, secure capital with flexible debt structures uniquely tailored to the business being acquired. These structures may include customized amortization schedules, interest-only periods to ease transitions, potential waivers of personal guarantees, and compatibility with diverse deal elements like seller rollover equity, seller carryback notes, and cash equity contributions.
Working Capital
Working capital financing provides liquidity to manage day-to-day operations and address cash flow needs. Loan structures like asset-based loans leverage the business’s balance sheet, turning accounts receivable, inventory, equipment, or purchase orders into immediate funds. Commercial real estate equity can also be tapped in some cases, offering additional liquidity options.
CapEx Financing
CapEx financing provides businesses with the means to invest in essential equipment and long-term upgrades. Traditional equipment financing, such as loans or leases, allows companies to acquire or upgrade assets by spreading the cost over time. These structures align repayment with cash flow and operational budgets, enabling businesses to access the equipment they need without large upfront expenditures.
Bridge Financing
Debt restructuring realigns a company’s liabilities to better match its financial goals. An in-depth financial review often identifies mismatches, such as using short-term working capital to fund long-term investments like equipment. Reworking the debt structure involves pairing the right financing tools, such as long-term asset-backed loans or other tailored solutions, to fix cash flow timing issues and ensure sustainable financial performance.
Teresa Wyman
Managing Director, Lower Middle Market
With over 20 years of experience in finance—including commercial banking, underwriting, and special assets—Teresa brings deep expertise in helping lower middle market companies secure growth capital, working capital, and acquisition financing.
Credit Solutions to Support Business Goals
Strengthen your balance sheet to extend runway to break even or the next equity round, fuel sales, and grow overall business development.
Replacing an existing higher-rate lender or older bank facility with friendlier terms and greater capital availability.
Capital utilized for the acquisition and ongoing operations of another business or businesses' assets that won't dilute like equity.
Freeing up capital tied up in accounts receivables, inventory, or funding tied to contract fulfillment.
Financing for capital expenditures including machinery, FF&E, computer & other technology-related hardware.
Short-term bridge to your next inflection point, whether an acquisition or contract execution
Structured Process for Success
Our process is transparent, efficient, and results-driven, offering complete confidence at every stage of the financing process.
Evaluation
Together with your management team, we assess your strategic goals and financing objectives. Pre-engagement analyses with lenders ensure a clear understanding of market fit.
Targeted Outreach
We identify and prioritize lending partners whose criteria align with your needs while crafting a financial narrative that captures your business potential.
Negotiation Advocacy
With a clear grasp of lender dynamics, we lead negotiations, balancing advocacy for favorable terms with maintaining professional relationships
Execution
From diligence to closing, we ensure all aspects of the transaction are executed seamlessly, keeping timelines on track and eliminating obstacles.
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