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How Does Venture Debt Work?

A Comprehensive Guide

What's Inside?

Financing a startup can be a stressful task. Many traditional forms of financing can be expensive and difficult to acquire, leaving startups feeling like there is nowhere to go.

Venture debt provides a solution to the challenges startups and small businesses face when acquiring investors. This type of financing helps businesses that are just getting started to avoid having to give up precious equity in the company and instead provides a debt-based loan.

In this guide, we'll cover:

  • What venture debt is and how it works
  • The pros and cons of venture debt
  • Finding the best partner for venture debt

Learn more about your business's options. Download the free guide today.

Download your Free Guide

Experts in Raising
Venture Debt

We are experts in raising Non-Dilutive capital for growth-stage companies looking to avoid equity dilution.

We streamline the debt raising process by leveraging our relationships with over 200 banks & credit funds to secure optimal credit terms for our clients. Our expertise is in taking credit profiles of all types and structuring them for the right lenders to provide attractive terms.

The end result is our clients secure funding and are able to continue driving toward their next phase of growth.

Meet Some of Our Clients

With 34 industries & sectors served and over 250 transactions advised, 5th Line can help address the challenges your business is facing.

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Areas of Expertise

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Growth Capital

Adding cash to the balance sheet to extend runway to break even or the next equity round, fuel sales, and grow overall business development.

  • Term Loans
  • Lines of Credit
  • Acquisition Financing
  • Refinancing

Working Capital

Freeing up capital tied up in accounts receivables, inventory, or funding tied to contract fulfillment.

  • Revolving AR Lines of Credit
  • Inventory Lines of Credit
  • Purchase Order Financing
  • Project & Contract Financing
business documents on office table with smart phone and laptop computer and graph financial with social network diagram and three colleagues discussing data in the background
business documents on office table with smart phone and laptop computer and graph financial with social network diagram and three colleagues discussing data in the background

Working Capital

Freeing up capital tied up in accounts receivables, inventory, or funding tied to contract fulfillment.

  • Revolving AR Lines of Credit
  • Inventory Lines of Credit
  • Purchase Order Financing
  • Project & Contract Financing
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CAPEX Financing

Financing for capital expenditures including machinery, FF&E, computer & other technology-related hardware, etc. for the purposes of funding company growth.

  • 100% Financed
  • Soft Costs Included
  • Non-Warrant
  • Equipment-Specific Lien

Testimonials

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Gautam Kumar
Lower.com

5th Line helped us identify lenders, get into the conversation, and complete a debt raise in a historically difficult market. The access to capital helps us play offense and continue to invest in growth while many competitors cannot. James was a pleasure to work with and provided great advice and counsel throughout the process.

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Patrick Brooker
BrightOrder

5th Line, under the leadership of James Turner, has developed an extensive portfolio of “Potential Investors “ to meet the needs of most borrowers. By having 5th Line prequalify investors, based on their intensive deep dive into our operations to ensure there was a strategic alignment between all parties, my job was significantly simplified allowing me to focus more on deal structure. Time is Money, my time was spent where I add the most value, and 5th Line made that happen!

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Rob Costanzo
Extole

We needed to refinance a term loan with a hefty bullet coming due on our balance sheet. With capital markets being more constricted, we engaged 5th Line to manage a process of reviewing with different lenders and structuring a debt refinancing solution, tailored to what we needed. The process was quick and efficient and now that it’s closed we can return to focusing on growing the business.

Ready to Get Started?

Download your free guide today!