Term Debt & Working Capital
Lending terms and conditions, personal and corporate guarantees, fees, renewals, payment flexibility, security, due diligence requirements and many other issues can create challenges in successfully obtaining the funding required. The Sumex team can call on its extensive experience in senior bank management, business, accounting, legal and other areas of expertise which will to ensure that you get the best advice possible for your financing needs.
TERM DEBT
There are two types of term debt financing: long and short term. However term debt is often associated with long term debt, and usually applies to assets your business is purchasing, such as equipment, buildings, land, or machinery. With long term debt financing, the scheduled repayment of the loan and the estimated useful life of the assets extend over more than one year. Term debt can also be arranged for less than one year, however this is often then considered to be working capital financing.
WORKING CAPITAL FINANCING
Working capital financing is also called short term debt financing. It usually applies to money needed for the day-to-day operations of your business, such as purchasing inventory, supplies, or paying the wages of employees. Working capital financing can also be referred to as an operating loan or short term loan because scheduled repayment takes place in less than one year. A line of credit is an example of short term debt financing.
Whether you require long term or short term financing solutions, Sumex can help you. We have more ways to Yes!
