What your VAR CFO wished they knew about (International) Debt finance
Getting the right finance deal is crucial for VAR companies needing to raise funds to fuel growth or acquire companies.
But often VAR companies are hampered because they lack the security required by lenders when taking on traditional debt products.
But did you know that in addition to raising funds against traditional tangible assets, VAR companies can also leverage their intangible assets to get them to where they want to be?
Of course, most conventional lenders, do not take or really understand the value of VARs commercial assets or take them into consideration, when underwriting deals.
As a result, you waste time and money looking in the wrong places and talking to the wrong lenders.
Let me show you how to ensure you can find the right debt product and make the right decisions when taking debt.
Understanding the VAR business model
Traditional debt funds such as banks rely on company financial reports as a basis of their lending criteria. However, these do not give an accurate representation of a VAR company.
Consequently deals either fall-through, wasting time, or the company doesn’t get the best value from the debt they do take, wasting money.
What VAR companies need is a finance facility that takes into account assets such as reoccurring revenue streams and patented products.
In 2018 we funded very successful VARs who were launching their own IP on SaaS models, growing and setting up operations in new territories either organically, via acquisition or moving their commercial model to pure annuity/subscription revenue model.
Understanding VAR assets
Every technology company has a speciality which is unique and specific to their business.
What VAR companies need is a lender that understands these intangible assets such as IP, and is capable of using them to leverage finance.
Finding the right business partner
Knowing there is the right debt finance solution in the market for VAR companies is one thing. Getting access to it is quite another.
Thankfully there is a solution.
A specialist debt finance broker makes it his business to build relationships with debt funds. And can scan the market quickly to find the best debt fund partner for your business.
To sum up
To fuel your business growth or to raise the funds you need to acquire another business, you need to find a debt finance partner that understands
- Your business model
- Your assets (tangible and intangible)
- Has strong relationships with alternative debt funds
To get the debt finance you need for your VAR business, it pays dividends to have conversations early.
So get in touch with a debt finance broker such as Fuse 3.
Trust me, you’ll be glad you did.