Business Finance

Travelers Financial Corporation offers a complete range of financial services to meet the needs of our business clients

• Equipment Leasing
• Equity Financing
• Factoring
• Vendor Financing
• Revolving Line of Credit
• Senior Term Debt
• Subordinated Mezzanine Debt
  
  

Equipment Leasing

If your company cannot use its cash flow or secure a business loan to fund its equipment capital expenditures, you may want to lease the equipment. Leasing reduces the financial burden of capital expenditures and allows a company to pay for the equipment as that equipment helps produce income. There are various methods of equipment leasing that facilitate a company’s capital expenditure program.

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Equity Financing

Equity financing incurs the greatest risk of all capital on the part of the investor. Equity investors demand high returns, commensurate with that risk. There are hundreds of sources of equity financing, so many in fact, that lenders have specialized in providing different types of financing and targeting different industries or stages of development.

This section is meant to cover equity financing that is available for management buyouts, growth financings, acquisition financing, employee buyouts, ESOP financing and recapitalizations.

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Factoring

Companies that cannot afford to have their cash flow tied up in receivables for longer than 30 days may opt to factor their receivables.

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Vendor Financing

Travelers will tailor a vendor leasing or rental facility that can be used as a catalyst to increase overall sales penetration, providing valuable financing alternatives to your customer base.

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Revolving Line Of Credit

Revolving lines of credit are the most common and least expensive form of business loan for small- and mid-sized companies. Companies typically enter into revolving facilities to fund their working capital, which is the amount of current assets (cash, inventory and receivables) in excess of current liabilities (items such as payables).

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Senior Term Debt

Senior term debt is the second most common form of financing for small and mid-sized companies. Senior term debt is typically lent against the collateral value of property, plant and equipment.  Senior term debt comes in many varieties and there are many sources of this type of financing. It is typically the second most expensive form of financing.

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Subordinated Mezzanine Debt

Subordinated debt financing typically includes both debt and equity. There are dramatically fewer sources of subordinated debt than there are of senior debt or equity, so it is often considered to be specialty financing.

 Subordinated debt is substantially riskier than senior debt since the lender generally has less right over collateral and cash flow than the senior lender. As a result, subordinated debt is rather expensive financing. Lenders usually require equity, generally in the form of warrants, to augment what they earn in interest income.

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