Equity-Backed Financing
You've built real equity. Put it to work.
Commercial property, owned equipment fleets, even the enterprise value of the business itself — equity you've spent years building can secure large, long-term facilities at near-bank pricing. Without selling anything, and without giving up a point of ownership.
- Amounts
- $250K – $5M+
- Typical rates
- 7% – 10%
- Terms
- 5 – 15 years
- Time to fund
- 2 – 4 weeks
- LTV
- up to 75%
Three forms of equity we lend against
| Equity source | Structure | Typical LTV |
|---|---|---|
| Commercial real estate | Commercial equity loan or cash-out refinance on owned property | 65 – 75% |
| Equipment & fleet | Sale-leaseback or refinance on owned, unencumbered assets | 50 – 70% of appraised value |
| Enterprise value | Cash-flow facilities sized on EBITDA for established businesses | 2 – 3× EBITDA |
The common thread: the lender's security is something you already own, so pricing lands well below unsecured alternatives and terms stretch to match the asset's life.
When this is the right tool
- Acquisitions — buying a competitor or a complementary business, with your property as the anchor collateral.
- Partner buy-outs — funding a clean exit without selling to outsiders.
- Large expansions — second locations, major build-outs, production capacity.
- Debt consolidation — rolling several expensive facilities into one long-term note at a fraction of the blended rate.
- Liquidity without dilution — when the alternative on the table is selling equity to an investor.
Equity financing without the "equity round"
Owners exploring investor capital are often surprised what debt against existing equity can do. A $2M facility at 8.5% costs you interest. A $2M equity round costs you a share of every future dollar the business earns — forever. When the business has assets and cash flow, debt is usually the cheaper money by an order of magnitude. We'll model both honestly, including the scenarios where taking the investor actually is the right call.
What underwriting looks like
Expect an appraisal or desktop valuation on the pledged asset, standard business financials, and a title/lien search. Personal guarantees are standard; pricing improves with lower LTV and stronger debt service coverage. Sale-leasebacks on equipment skip the appraisal wait and can fund in under two weeks.
Equity-backed financing FAQ
Is this the same as a home equity loan?
No — these are commercial facilities secured by business assets: commercial property, equipment, or the business itself. We do not write consumer loans against primary residences.
What's a sale-leaseback, exactly?
You sell owned equipment to the lender at appraised value and lease it back — cash lands now, the equipment never leaves your floor, and at the end of the lease you own it again (typically for $1). It converts trapped asset value into working capital in about two weeks.
My property already has a mortgage. Can I still borrow?
Yes, two ways: a second-position facility behind the existing mortgage, or a full cash-out refinance if today's blended math beats your current note. We run both and show you the side-by-side.
How is the business itself valued?
For cash-flow facilities, lenders size against adjusted EBITDA — typically 2–3× for healthy businesses, with industry, concentration, and growth trend moving the multiple. Three years of financials or tax returns drive the number.
What happens if I sell the business or property mid-term?
The facility is repaid from proceeds at closing, like any secured note. Most of our programs have modest or declining prepayment schedules — we'll flag the exact language before you sign, because exit flexibility is usually why owners chose debt over investors in the first place.