Moyses Levy - Business Structured Loan

1. Moyses Levy - Business Structured Loan In many cases, it is observed that conventional loan is either not possible or undesirable. This is when business structured loan comes into play. Business structured loan is a way of making a loan based on strong cash flow performance in the past. Rather than use other assets as collateral, advance funds are offered based on previous history. This provides a record of how the borrower fared while repaying his previous loans, if any. Benefits Business structured loan is an attractive option for those entities which don't possess much material assets, but have a long history of monthly billing and client base, coupled with the customer's consistent pay histories.

2. Investors are often willing to lend money to such corporations, even if they are small, and do so at lower interest rates than the one from financial institutions. For any business which seeks to expand client base and requires quick cash for it, structured finance offers the most cost-efficient way to manage fund raising. Besides less procedural hassles, it also processes faster than standard business loans. Business structured loan is also an excellent way for firms to get the requisite operating capital for growth. Also, any firm shouldered with large debt amount at high rate of interest can use structured loan to eliminate higher interest liabilities, exchanging them for more manageable and lower interest repayments. Structured Finance - Ideal for Growth Structured finance can also be considered as a type of collateralized debt obligation or CDO. Basically, CDO is a form of structured credit product, which happens when there is transfer risk within the firm. Nevertheless, it also has a high growth potential. Structured finance is ideal if the element of risk makes conventional finance sources appeal unattractive, unproductive or impossible. When firms use structured finance, it gives them a new lease of life, which, otherwise, would not have been possible.