DBMG utilizes various resources and partnerships to facilitate the funding requirements of our clients. Your current financial position and our assessment of your business model, will be the determining matrix as to which resource or partnership will best help you reach your goal. Our responsibility is to position your company to meet or exceed any funding criteria necessary for the lender or investor.
Banks have the proverbial underwriting guidelines which start with your company’s ratios. A good metric for ratios is 1.25. This is standard in the industry, provided your company is EBITDA (earnings before interest, taxes, depreciation and amortization) positive.
Non-traditional banking still have the proverbial underwriting guidelines which start with your company’s ratios, but they will work with a lower factor. Non-traditional banks will also look at the EBITDA.
These are Private Investors, that in many cases are the “Angel” that sit on your company’s shoulders. Every angel investor has their own set of guidelines. These guidelines are in direct relationship with why this person or group are investing in your company or industry. The process of funding is shorter and less cumbersome.
VCs tend to focus on the business model, projections, marketing, distribution, and company management. They are more interested in the “jockey”, not the horse. They will invest in you and your company if you are positioned correctly and are willing relinquish equity.
This avenue will work well if you are positioned correctly. Investment bankers will handle the merger or acquisition of your company. Or they can place you under the umbrella of a larger more established institution.
Banking Instruments are a very viable solution to fund any project. This funding avenue allows you to deal directly with the investor, establishing terms and conditions that are amenable to both parties. Limited underwriting guidelines with 100% capitalization. A Capital Markets solution positioning you as the beneficiary.