UNLOCKING BUSINESS WEALTH FINANCING SOLUTIONS

UNLOCK THE WEALTH FROM YOUR TRANSITIONING BUSINESS

Maintaining sufficient working capital during a period of transition can be a gamechanger for your business and its stakeholders. Talk to an eCapital expert for fast, flexible financing solutions to help unlock the hidden value in your business.

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THERE’S HIDDEN VALUE IN YOUR
BUSINESS WAITING TO BE REALIZED

Do you want to take some capital out of your business? Sell it entirely? Perhaps it’s time to begin to transition ownership to family or management, or just diversify your personal assets by recouping shareholder investments? Whatever your vision, it is possible to strike the right balance between value in your business, and in personal wealth.

Strategic advisor financing for startups

Succession

Realize the untapped value within your company before handing over authority to another individual or group.

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Strategic advisor financing for mergers and acquisitions.

Selling Your Business

Tailor a transition that makes sense for you. Convert business equity into personal liquidity before you sell.

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Strategic advisor financing meeting for bankruptcy.

Repaying Your Shareholders

Leverage assets to repay shareholder loans. Flexible payment terms to minimize impact on cash flow.

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USE YOUR ASSETS TO FUND THE SUCCESSION OR SALE

In family-owned or closely-held businesses, the successor might not have the necessary cash to buy the business outright.

An asset-based facility, backed by the company’s assets like accounts receivable, inventory, machinery, or real estate, can provide the funds needed to finance the purchase.

TRANSITION WITH EXTRA WORKING CAPITAL

During a transition period, businesses often face a cash crunch due to unforeseen expenses or operational disruptions. Our creative facilities can offer a flexible source of working capital, allowing the business to continue operations smoothly and meet its financial obligations.

As new leadership takes over, they might want to pursue growth initiatives such as expanding product lines, entering new markets, or investing in technology. An asset-based facility can provide the necessary capital for these initiatives without diluting ownership or control, therefore maximizing the value of the business at the point of
transition.

MITIGATE RISK DURING YOUR BUSINESS TRANSITION

In a transition scenario, traditional lenders might consider the business a higher risk and be less willing to extend credit.

eCapital focuses more on the value of the assets being pledged rather than your creditworthiness, making it easier to secure financing.

WE OFFER FINANCIAL SOLUTIONS FOR ALL TYPES OF TRANSITIONING BUSINESSES

We work with a wide array of industries. Our clients are all business-to-business entities, meaning they invoice other companies (not consumers) for products and services provided.

TRANSPORTATION & LOGISTICS

MANUFACTURING

STAFFING

FOOD & BEVERAGE

SERVICE

CONSUMER PACKAGED GOODS

HEALTH AND BEAUTY

CONSULTING

OILFIELD SERVICES

WHOLESALE & DISTRIBUTION

APPAREL

TELCOM/WIRELESS

WHY CHOOSE US AS YOUR FINANCIAL PARTNER?

eCapital is an award-winning, industry-leader in the alternative financing space. Here are a few reasons why businesses choose eCapital as their alternative financing partner:

24/7 Access To Your Cash

Manage your money your way. With eCapital Connect, our proprietary account management software, you are in control of your finances at anytime, day or night.

Fair & Affordable Rates

Our rates are the most competitive in the industry. We know what it takes to maximize your working capital and will customize a solution to meet your needs.

Facilities Up To $50 Million

We’re ready and able to provide the funding your business needs now and into the future. As your business grows, so does the invoice financing available to you.

Seamless Transition

We understand that working capital is critical to your business operations. We’re pros at onboarding new clients and our account management team is here for you every step of the way.

No Hidden Fees

We believe in transparency in all we do. That means no surprises when it comes to our agreements.

Expert Tips & Advice

Tap into our in-depth industry knowledge to better manage your business. Get smart, actionable advice and useful tips from our finance experts.

60

of small and medium-sized businesses owners are aged 50 or older.

41

of entrepreneurs expect to exit their business, within the next five years.

DON’T JUST TAKE OUR WORD FOR IT

For over 25 years eCapital a freight factoring company has helped more than 30,000 businesses grow. We want to do the same for you. Take a look at the latest reviews from our customers on TrustPilot!

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FREQUENTLY ASKED QUESTIONS

What's the role of asset-based lending in succession planning?

Asset-based lending can play a significant role in succession planning by providing financing options to facilitate a smooth transition of ownership within a business. Here’s how asset-based lending can support succession planning:

  1. Access to Capital: Asset-based lending allows the successor or acquiring party to leverage the existing assets of the business, such as accounts receivable, inventory, equipment, or real estate, as collateral to secure financing. This can provide the necessary capital for the successor to purchase the business or for the current owner to extract their equity.
  2. Flexible Financing: Asset-based lending offers greater flexibility compared to traditional bank loans, as the loan amount is based on the value of the underlying assets rather than the company’s creditworthiness. This can be particularly beneficial if the business undergoing succession planning has limited financial history or if the successor lacks sufficient personal resources for a cash purchase.
  3. Smooth Transition of Ownership: By providing the necessary funds, asset-based lending enables a seamless transition of ownership. The successor can use the borrowed capital to acquire the business and continue its operations without disruption, ensuring continuity and preserving customer relationships.
  4. Tailored Solutions: Asset-based lending can be customized to meet the specific needs of the succession plan. Lenders can structure financing arrangements based on the value of different assets, allowing for a more tailored approach to meet the unique requirements of the succession process.
  5. Support Growth and Expansion: Asset-based lending can also support the successor’s growth and expansion plans after the transition. By unlocking the value of assets, the successor can access capital for investment in new equipment, technology upgrades, marketing initiatives, or geographic expansion.

It’s important for businesses engaged in succession planning to work closely with financial advisors and lenders experienced in asset-based lending to explore the available options and ensure a successful transition of ownership.

What is Partner Buyout Financing?

Partner buyout financing refers to the process of securing funding to facilitate the buyout of a business partner’s ownership stake in a company. It typically occurs when one partner wishes to exit the business, retire, or pursue other opportunities, while the remaining partner(s) want to continue operating the business.

How fast can I get financing from eCapital to help with my transitioning business?

The entire process of applying for funding moves quickly. With a viable strategy, eCapital will work with you to quickly structure and fund your unexpected financing needs, and we can do so in as little as a few weeks.

What are businesses in transition?

Businesses in transition refer to companies undergoing significant changes or transformations. These changes can include various scenarios, such as:

  1. Ownership Changes: Businesses in transition may experience changes in ownership, such as mergers, acquisitions, or management buyouts. These transitions often involve shifts in leadership, decision-making processes, and strategic direction.
  2. Structural Reorganization: A business in transition may undergo structural reorganization, such as a change in legal entity type, consolidation of divisions or departments, or a shift in the organizational hierarchy. These changes aim to optimize operations, improve efficiency, or adapt to evolving market conditions.
  3. Industry Adaptation: Businesses in transition may be adapting to changes in their industry or market landscape. This can involve embracing new technologies, adjusting business models, or diversifying product/service offerings to stay competitive.
  4. Financial Restructuring: Companies facing financial distress or insolvency may undergo a transition to restructure their debts, negotiate with creditors, or implement turnaround strategies. These transitions aim to improve financial health, restore profitability, and ensure long-term viability.
  5. Market Expansion: Businesses in transition may be expanding into new markets, territories, or customer segments. This often involves market research, strategic planning, and operational adjustments to capture new opportunities and drive growth.
  6. Technology Integration: Companies may undergo transitions related to technology integration, such as implementing new software systems, upgrading infrastructure, or digitizing business processes. These transitions aim to enhance efficiency, productivity, and competitiveness.

Businesses in transition face unique challenges and opportunities as they navigate these changes. They require careful planning, strategic decision-making, and effective execution to ensure a successful transition and drive positive outcomes.

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