Growth Debt Advisory
Growth debt provides tailored direct lending solutions for companies to speed up growth with minimal equity dilution. Growth debt is a niche strategy within corporate private debt and a complementary financing product to venture (equity) capital.
When should you raise growth debt?
Eligibility requirements for borrowers are:
- The company should be in operation for at least 2 years.
- Existing products/services with established product-market-fit and paying clients.
- Minimum revenue growth of at least 20% p.a. (y-o-y).
- Revenues during the last twelve months should be at least €2m.
- Sound governance structures that allow for fast growth.
- Equity financing from qualified investors (VC funds, family offices, and/or corporate venture arm).
Step 1
Entrepreneurs approach Tradition Meets Future to explore venture growth debt options. In this initial step, TMF Growth quickly assesses the unique aspects of each business, laying the groundwork for a customized financing strategy.
Initial Consultation
Step 2
Our team conducts a thorough review of your financials, business model, and growth plans. This in-depth assessment is particularly vital for startups and scale-ups, given their higher risk profiles.
Assessment and Preparation
Step 3
Utilizing our extensive network, TMF Growth introduces your business model and capital requirements to banks or investors whose profiles match your company's specific needs. This step is key in finding the right financial partners for your venture.
Introduction to Potential Lenders
Step 4
TMF Growth facilitates initial discussions between you and potential lenders. During this phase, you will have the opportunity to present your business and explore potential terms under our guidance.
Preliminary Discussions with Lenders
Step 5
Tradition Meets Future will support and co-ordinate the comprehensive due diligence process conducted by our interested lenders. As an entrepreneur, you will work closely with TMF Growth, providing in-depth insights into your business, market, and strategic plans.
Detailed Due Diligence by Lenders
Step 6
Once a lender decides to proceed, they will issue a term sheet. Tradition Meets Future negotiates the various structures on your behalf, such as interest payments, collateral and equity warrants.
Term Sheets from Lender
Step 7
With the support and guidance of Tradition Meets Future, you will obtain the optimal terms and conditions of your growth debt facility, working towards a mutually beneficial agreement with the lender.
Negotiation and Agreement
Step 8
TMF Growth helps in reviewing the documents that formalize the debt facility, ensuring your interests are well-protected.
Final Documentation and Legal Review
Step 9
After the documents are finalized and signed, the funds are disbursed. The schedule for this disbursement is typically negotiated beforehand and might involve an initial lump sum, followed by additional tranches.
Signing and Funding Disbursement
Step 10
Throughout the loan term, which can range from 12 months to 7 years, Tradition Meets Future may provide ongoing support and assist with monitoring functions.
Ongoing Management and Support
TMF Growth manages a clear and efficient process
Do you require up to €100 million in capital?
Is your sales growth >20% per year?
Have you considered growth debt financing?
Tradition Meets Future finds you the most suitable debt financing partner for your company and helps strengthen the entrepreneurial spirit that drives innovation by offering non-dilutive capital solutions.