The last decade and a half (really since the Great Financial crisis of 2008) has brought many challenges to businesses worldwide; amongst perhaps the most salient: maturing economies, low growth and, in turn, deflation and negative real rates of return most everywhere. The Covid crisis has unfortunately aggravated and perpetuated this reality. Virtually the only games in town over the past five years or so which offer a decent investment return over and above the rate of inflation: Equities and (perhaps unbelievably), Crypto.
What are the implications of the search for yield amongst the likes of investors, banks, crossover specialty finance companies and lenders? Thankfully this backdrop can benefit you! Any decent positive yield (return on money) has become challenging; in turn, any opportunity to generate a predictable and relatively low risk return on an investment draws significant interest.
Over the past couple of decades, the general trajectory of underwriting standards and financing structures have become substantially more flexible. Evidencing this is that over this period, the pricing of risk has quite notably declined, and the scope, scale and flexibility of financial solutions has increased meaningfully. What does this all mean to you? Well, there are some seriously compelling implications to all this, to be sure. Although bank account returns are, sadly as most everyone knows, near zero, the flexibility and pricing of capital for any formidable company looking to finance growth (both organic and inorganic) are astoundingly attractive in most cases.
If you are looking to take advantage of this powerful opportunity, ScaleHouse can help. Objective advice from our team ensures cost-effective, highly functional solutions. We can help you and your Company identify and source cost-effective and flexible capital. Along the way, we provide sound, creative, unbiased advice and arrange highly curated solutions that work best to address your needs. We have deep relationships with a broad array of capital providers with whom we work to optimize the capital solution that fits the demands of and specific characteristics of your business. We have and can arrange a broad array of capital solutions supported (as applicable) by your asset-base, cash flow, and sometimes conversion-to-equity features offering "win-win" upside in exchange for the likes of limited or no guarantees or security.
Interested in talking more about raising capital in Q4 2021 or the first half of 2022? Reach out to us.