Question 1

What exactly is a term loan?

Accepted Answer

A term loan delivers a one-time lump sum of capital that you repay on a fixed schedule — weekly or monthly — over an agreed-upon period. It's structured financing designed for significant business investments.

Question 2

What are the key features of a term loan?

Accepted Answer

Term loans offer lump-sum funding, a predictable repayment schedule, fixed loan terms, no equity dilution, potential early payoff savings, and the ability to build your business credit profile.

Question 3

Is a term loan the right fit for my business?

Accepted Answer

Term loans are ideal for growth-oriented investments such as large equipment purchases, infrastructure upgrades, expanding operations, hiring staff, or increasing production capacity — particularly when you need predictable monthly payments for budgeting.

Question 4

How does a term loan differ from a line of credit?

Accepted Answer

A term loan provides a single lump sum with a structured repayment schedule, while a line of credit offers revolving access to capital that you can draw from as needed — similar to a business credit card. Term loans are best for defined projects; lines of credit suit ongoing or unpredictable needs.

Question 5

Can I repay my term loan early?

Accepted Answer

Yes — many of our lending partners offer early repayment options that can reduce your overall cost. If early payoff is a priority, discuss it with your capital advisor after applying.

Question 6

What is a business line of credit?

Accepted Answer

A business line of credit provides flexible, on-demand access to capital. Unlike a traditional loan, it's a revolving facility — you draw funds as needed, pay interest only on what you use, and your available balance replenishes as you repay.

Question 7

How does a business line of credit work?

Accepted Answer

Once approved, you receive a total credit limit. You can transfer any amount up to that limit into your business account whenever you need it. As you repay, your available credit is restored — giving you continuous access without reapplying.

Question 8

How do I apply for a business line of credit?

Accepted Answer

Gather your business formation documents, six months of bank statements, tax returns, and financial statements. Submit a single application through Tzortzis Capital and our team will match you with the most competitive options from our lending-partner network.

Question 9

Is it difficult to qualify for a business line of credit?

Accepted Answer

Not with the right lending partner. While traditional banks have rigid criteria, private credit lenders evaluate your business performance, revenue trajectory, and cash flow — making qualification faster and more accessible.

Question 10

Can an LLC get a business line of credit?

Accepted Answer

Absolutely. LLCs, corporations, partnerships, and other business entities can all qualify for a business line of credit.

Question 11

When should I consider a business line of credit?

Accepted Answer

A line of credit is ideal when you need quick access to capital for unexpected opportunities, are scaling operations and want flexibility without long-term debt commitments, or experience seasonal revenue cycles that require a financial cushion.

Question 12

What is the difference between a secured and an unsecured line of credit?

Accepted Answer

An unsecured line requires no collateral — eligibility and the credit limit are based on revenue and cash flow, approval is faster, and rates are higher. A secured line is backed by assets such as receivables, inventory, equipment, or property; the limit reflects the value of what's pledged, approval takes longer because assets must be verified, and pricing is typically lower.

Question 13

How fast can I get a business line of credit?

Accepted Answer

An unsecured, cash-flow-based line can reach a term sheet in 24 to 48 hours once we have current bank statements and financials. A secured, borrowing-base facility runs 3 to 6 weeks because receivables, inventory, and liens must be verified.

Question 14

How can a line of credit benefit my industry?

Accepted Answer

Construction firms use it to cover upfront project costs between receivables. Wholesale and distribution companies stock inventory before peak demand. Transportation businesses fund fuel, maintenance, and fleet expansion. Manufacturers invest in equipment upgrades and raw materials without straining cash reserves.

Question 15

What is a business equipment loan?

Accepted Answer

A business equipment loan helps you finance essential equipment without large upfront payments. Instead, you break the cost into structured, manageable installments — preserving working capital for operations and growth. Common examples include construction machinery, medical equipment, commercial vehicles, and office technology.

Question 16

How does equipment financing work?

Accepted Answer

Once approved, a lender provides financing for your equipment purchase. You then make structured payments to repay the loan over a defined period — anywhere from short-term arrangements to multi-year terms depending on the equipment and your business needs.

Question 17

What are the benefits of equipment financing?

Accepted Answer

Key advantages include flexible payment options tailored to your revenue cycle, preserved cash flow for other business priorities like marketing and payroll, and gradual asset ownership as you reduce the loan balance over time.

Question 18

What types of equipment can I finance?

Accepted Answer

Virtually any business-critical equipment qualifies — from construction machinery, medical devices, and manufacturing tools to commercial vehicles, office technology, and specialized industry equipment.

Question 19

Can I finance used equipment?

Accepted Answer

Yes. Many lending partners finance pre-owned equipment. Having a clear understanding of the asset's current market value before applying streamlines the process.

Question 20

How long can equipment be financed?

Accepted Answer

Equipment financing terms typically extend up to five years, though unique situations may qualify for longer periods. Some programs also offer prepayment discounts if you want to pay off the balance early.

Question 21

Is it hard to get an equipment loan?

Accepted Answer

Equipment loans are among the more accessible forms of business financing. Because the equipment itself serves as collateral, lenders face less risk — meaning businesses with decent credit and moderate revenue can often qualify without difficulty.

Question 22

Is there a funding limit on equipment loans?

Accepted Answer

Financing amounts generally correlate to the cost of the equipment. Some lenders specialize in high-value assets while others focus on smaller purchases. Our network covers equipment financing from $50K to $10M+.

Question 23

What is asset-based lending?

Accepted Answer

Asset-based lending (ABL) is a financing structure secured by specific business assets — typically accounts receivable, inventory, real estate, equipment, or contracts. Instead of underwriting purely on EBITDA or credit history, lenders advance against the liquidation value of your asset base, which often unlocks more capital than a traditional cash-flow loan.

Question 24

What types of collateral qualify?

Accepted Answer

The most common are accounts receivable (advanced at 70–90% of eligible invoices), inventory (typically 30–70% depending on type and turnover), commercial real estate, and equipment. Government and enterprise contracts can also be used as collateral in structured facilities.

Question 25

How are advance rates determined?

Accepted Answer

Advance rates depend on collateral quality, concentration, turnover, and aging. Investment-grade receivables and fast-moving inventory get the highest advance rates; concentrated AR or slow-moving inventory gets discounted. We structure the borrowing base around the actual liquidity of your assets.

Question 26

How fast can an ABL facility close?

Accepted Answer

Most ABL facilities close in 3–6 weeks. The diligence work — field exam, AR aging review, inventory appraisal — drives the timeline. We can often issue an indicative term sheet within days of receiving a borrowing base summary.

Question 27

Is asset-based lending only for distressed companies?

Accepted Answer

No. ABL is used by healthy, growing businesses that simply have asset-rich balance sheets — distributors, manufacturers, contractors, staffing firms. It's particularly valuable when growth has outpaced what a cash-flow lender will underwrite, because the borrowing base scales with the business automatically.

Question 28

What is a bridge loan?

Accepted Answer

A bridge loan is short-term financing — typically 3–18 months — designed to fund a specific event while a permanent capital source is arranged. Common uses include acquisitions ahead of permanent debt, financing gaps when a bank loan matures before a new facility is in place, and value-add real estate projects awaiting stabilization.

Question 29

When does a bridge loan make sense?

Accepted Answer

When timing matters more than cost. If a deal closes in two weeks and a bank facility takes three months, a bridge captures the opportunity and transitions into cheaper permanent capital later. The math works whenever the cost of waiting (lost deal, missed acquisition, late payoff) exceeds the bridge's interest carry.

Question 30

How is the exit strategy underwritten?

Accepted Answer

We focus on the takeout — the specific path from bridge to permanent capital. That can be a permanent takeout loan from a bank or agency lender, an asset sale, a recapitalization, or completion of a value-add business plan. The clearer the exit, the faster and cheaper the bridge.

Question 31

How quickly can a bridge loan close?

Accepted Answer

Most bridge engagements close in 1–3 weeks of signed term sheet. Smaller, cleaner deals can close inside a week when title, financials, and collateral diligence are already in motion.

Question 32

How does bridge pricing compare to a bank loan?

Accepted Answer

Bridge financing prices above bank rates and below merchant cash advance or hard-money product. The right comparison is rarely against an unavailable bank facility — it's against the cost of missing the deal, losing the opportunity, or paying penalties on a maturity that's already due.

Question 33

Who should consider working capital financing?

Accepted Answer

Businesses with steady revenue streams that need fast access to capital are ideal candidates. It's particularly well-suited for companies that want to invest in growth without traditional debt structures, experience seasonal revenue cycles or delayed payments, or need capital without pledging equity or collateral.

Question 34

What are the types of working capital financing?

Accepted Answer

Two primary structures exist: term-based financing, where you receive a lump sum and repay on a fixed schedule tied to your cash flow outlook, and revolving credit access, a flexible credit line you draw from as needed with repayments based on usage and available cash flow.

Question 35

What are some real-world examples?

Accepted Answer

A construction company wins a new contract but hasn't been paid for the last one — working capital bridges the gap for materials and payroll. A wholesale distributor needs to place a bulk order before peak season but prior shipments aren't collected yet. A manufacturer lands a big order but needs to fund production before prior receivables arrive.

Question 36

How can working capital financing help my industry?

Accepted Answer

Construction firms cover upfront costs while waiting on contract payments. Wholesale and distribution companies manage large bulk purchases and supplier payments. Transportation and logistics businesses maintain stable cash flow for fuel, maintenance, and route expansion. Manufacturers support equipment needs and large production runs.

Question 37

How quickly can I receive working capital?

Accepted Answer

Many of our working capital programs fund within 24-48 hours of approval. Timeline depends on the program structure and documentation readiness, but speed is a hallmark of this solution.

Question 38

What is subordinated debt?

Accepted Answer

Subordinated debt is a loan that ranks below other debts in repayment priority. If a company defaults or liquidates, senior debt holders are paid first, and subordinated debt holders are repaid only after higher-ranking obligations are satisfied. Because of this added risk, sub debt typically carries higher interest rates.

Question 39

What are some examples of subordinated debt in action?

Accepted Answer

A logistics firm expands operations after maxing out its senior credit line. A distributor requests additional capital beyond their existing facility but is denied for lack of collateral coverage. A commercial contractor transitions to a new senior lender and needs working capital to bridge operations during the transition.

Question 40

Can subordinated debt be considered equity?

Accepted Answer

No. Unlike mezzanine financing, subordinated debt carries no equity or ownership component. It is purely a debt instrument — you retain full control of your business.

Question 41

What's the difference between senior and subordinated debt?

Accepted Answer

Senior debt is typically secured, lower-risk, and repaid first in the event of default. Subordinated debt sits behind it in repayment priority — it's higher-risk for lenders, often unsecured, and repaid only after senior obligations are met.

Question 42

How does subordinated debt appear on the balance sheet?

Accepted Answer

It's listed under liabilities, positioned below senior debt and above equity. Importantly, it does not dilute ownership or affect your equity structure.

Question 43

What are the types of subordinated debt?

Accepted Answer

Common forms include high-yield bonds (unsecured with higher returns), mezzanine debt (a hybrid of debt and equity that may include warrants), PIK notes (deferred interest, paid at a later date), and vendor notes (used in M&A transactions from sellers).

Question 44

Is mezzanine debt the same as subordinated debt?

Accepted Answer

Mezzanine is a subset of subordinated debt that includes equity components such as warrants or conversion rights. Standard subordinated debt is debt-only — no dilution, no loss of control.

Question 45

What is inventory financing?

Accepted Answer

Inventory financing is debt capital secured by the inventory itself — raw materials, work-in-process, or finished goods. It lets businesses buy stock ahead of demand, take supplier discounts on bulk purchases, or prepare for seasonal peaks without tying up working capital.

Question 46

What advance rates can I expect?

Accepted Answer

Typical advance rates run 50–70% of eligible inventory value, with finished goods getting higher advances than raw materials or specialty stock. The lender uses an independent appraisal to set borrowing base and adjusts as inventory turnover patterns change.

Question 47

Which industries use inventory financing most?

Accepted Answer

Wholesale distributors, importers, manufacturers, e-commerce operators with significant stock positions, and seasonal retailers. Any business whose growth is constrained by capital tied up in inventory is a fit.

Question 48

Is inventory financing the same as a line of credit?

Accepted Answer

Inventory financing is often structured as a revolving line, but the borrowing base is calculated specifically against inventory value rather than aggregate cash flow. That structure unlocks more capital when inventory is a major asset, and the advance rate scales as you grow.

Question 49

Can I finance both new orders and existing inventory?

Accepted Answer

Yes. Some programs fund purchase orders directly (paying the supplier on your behalf), others advance against existing on-hand inventory, and many facilities do both. We structure around how your business actually buys and sells.

Question 50

What is corporate bond financing?

Accepted Answer

Corporate bonds are debt securities issued to institutional investors that obligate the issuer to repay principal plus interest over a defined term. They access deeper capital pools than bank or private credit markets and are typically used for transformative growth, major acquisitions, or funding large projects.

Question 51

What is the minimum size for a bond issuance?

Accepted Answer

Practical minimums for publicly placed or rated issuances start around $100M, since issuance costs (underwriting, legal, rating agency fees) need to be spread across a meaningful capital raise. Private placements can be smaller but follow similar economics.

Question 52

How long does a bond issuance take?

Accepted Answer

Typical timelines run 6–24 months depending on structure. Established issuers with existing public debt move faster; first-time issuers requiring a rating, registration, or institutional roadshow take longer. We help clients sequence the process to hit specific funding windows.

Question 53

What's the difference between corporate, municipal, and green bonds?

Accepted Answer

Corporate bonds fund private-sector businesses. Municipal bonds fund state, local, or public authority projects and offer tax advantages to U.S. investors. Green bonds finance environmentally qualifying projects and tap a dedicated ESG investor base, often at favorable pricing.

Question 54

What credit profile is required?

Accepted Answer

Investment-grade issuances need stable cash flow, conservative leverage, and a rating from a recognized agency. High-yield issuances are available to lower-rated issuers at higher coupons. We evaluate readiness during initial structuring and recommend the right market for each client.

Question 55

What does Tzortzis Capital's investment banking practice cover?

Accepted Answer

Capital advisory and placement for mid-market transactions: debt placement, recapitalizations, growth capital raises, acquisition financing, and structured M&A debt. We work alongside legal and accounting advisors to package, market, and close institutional capital.

Question 56

What is the typical transaction size?

Accepted Answer

Engagements start at $20M and scale to several hundred million for syndicated structures. Below $20M, a direct private credit facility is usually a better economic fit than a formal investment banking engagement.

Question 57

How is this different from a single-provider private credit placement?

Accepted Answer

Both are capital placement processes using independent providers. A single-provider placement seeks a suitable facility from one capital source; an investment banking engagement coordinates a broader institutional process for more complex transactions. Tzortzis Capital evaluates and arranges the placement; capital providers make credit decisions and supply funds.

Question 58

How long does an investment banking engagement take?

Accepted Answer

Most engagements run 4–26 weeks from kickoff to funded. Timing depends on transaction complexity, diligence readiness, and market conditions. We give clients a realistic timeline at intake and update it as milestones are hit.

Question 59

What sectors do you focus on?

Accepted Answer

We're sector-agnostic for mid-market debt and structured capital, with particular depth in healthcare, industrials, business services, real estate, hospitality, and asset-rich operators. We pass on transactions where we cannot add real value or sourcing depth.

Question 60

Can I finance a semi truck as an owner-operator?

Accepted Answer

Yes. Owner-operator financing is one of the most common deals we structure. You'll typically need a valid CDL, active MC/DOT authority, and 3+ months of settlements or bank statements.

Question 61

Can I finance a used semi truck?

Accepted Answer

Absolutely. Most of our lending partners finance used tractors up to roughly 10 years old, and many will go further on well-maintained equipment with documented service history. Advance rates depend on age, mileage, brand, and condition.

Question 62

How much down payment is required?

Accepted Answer

Down payments range from 0% for established fleets with strong credit up to 20% for higher-risk deals or newer authorities. Most owner-operator deals land in the 5–10% range.

Question 63

How long does semi truck financing take to close?

Accepted Answer

Most deals close in 5–10 business days from complete application to funded. Approvals typically come back within 24-48 hours.

Question 64

Can I finance multiple trucks at once?

Accepted Answer

Yes — we structure single-unit deals for owner-operators through 40+ unit fleet builds. Larger fleets are often structured as a master line so you can add trucks over time without reapplying for each one.

Frequently Asked Questions

Term Loans

Lines of Credit

Equipment Financing

Asset-Based Lending

Bridge Loans

Working Capital

Subordinated Debt

Inventory Financing

Bonds

Investment Banking

Semi Truck Financing

Mezzanine Financing

Revenue-Based Financing

Medical Equipment Financing

Franchise Financing

Invoice Factoring

Purchase Order Financing