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GROWTH CAPITAL

Invest in your next stage of growth before additional revenue arrives.

Fund larger orders, new equipment, and expanding operations while managing the upfront investment and working capital demands that accompany growth.

DEALS WE SUPPORT

The Right Financing Can Turn Growth Opportunities Into Reality

Growth often requires spending before the resulting revenue is collected. Larger orders, additional inventory, new equipment and expanded operations can place pressure on cash even when business performance is improving.

Growth capital is financing that helps an established company fund that expansion without waiting for the revenue it is expected to produce. It is a type of transaction Great Elm supports rather than a separate product, and the right structure depends on what is being funded and the assets available to support it.

Growth capital typically fits companies that:

  • Are established middle-market operating businesses with annual revenue in the $5MM to $500MM range
  • Hold eligible receivables, inventory, or machinery and equipment that can support borrowing
  • Need to fund expansion, larger orders or investment ahead of the revenue it will generate
Rows of industrial presses on a factory floor

COMMON FINANCING CHALLENGES

Capital Pressures That Accompany Growth

Growth is usually a sign that a business is working, yet it brings costs that arrive ahead of the revenue they are meant to produce. Four pressures come up most often.

Understanding where the gap opens helps determine which financing structure fits.

A new contract or a larger purchase order can require materials, labor and shipping to be paid for weeks or months before the customer pays. The business can look strong on paper while cash is stretched in practice.

FINANCING CONSIDERATIONS

Where Growth Financing Can Be Applied

Recurring working capital needs and larger, defined capital expenditures are financed differently, so where the money goes shapes the structure. Each application is subject to underwriting and to the assets available to support the financing.

Recurring Working Capital

Fund payroll, supplier obligations and day-to-day needs that rise with activity, supported by eligible receivables and inventory.

Production Capacity

Support additional inventory and the operating costs of higher output while sales catch up.

Equipment Investment

Evaluate secured term financing for eligible equipment and other defined capital expenditures.

Expansion

Assess funding for new locations, facilities and other qualified growth initiatives.

RELEVANT FINANCING SOLUTIONS

Financing Options for Growth Capital

Growth capital is a type of transaction, not a separate product. Great Elm funds it with the asset-based structures below, chosen by what is being financed and which assets support it.

Ledgered Line of Credit

Receivables-backed borrowing for ongoing working capital requirements, giving growing businesses funding to support larger orders while customer invoices are outstanding.

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Secured Term Loans

Asset-backed financing for eligible equipment, investment and expansion needs, supported by collateral that can include inventory, machinery and equipment.

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Recent Deals

Financing deals that move businesses forward.

Explore our recent financing transactions and discover how we’re helping businesses access the capital they need to grow and succeed.

See More Deals

FREQUENTLY ASKED QUESTIONS

Growth Capital Financing FAQs

Answers to common questions about financing business growth with asset-based lending.

Yes. Eligible receivables can support borrowing through a structure such as a Ledgered Line of Credit, which provides availability against outstanding customer invoices. Eligibility and advance terms are set through underwriting.

Availability is tied to the eligible invoices and the facility’s borrowing base, so it can change as receivables change, but it does not increase automatically as sales grow. Larger commitments depend on underwriting and on the assets available to support them.

Depending on the structure and underwriting, eligible machinery and equipment can support secured financing, such as a Secured Term Loan. Great Elm evaluates the type, condition and value of the equipment as part of the lending process.

Great Elm looks at the eligible assets that would support the financing, such as receivables, inventory, machinery and equipment, along with the company’s operating history, financial performance, management experience and intended use of funds.

Amounts depend on the individual transaction, including the eligible collateral, the intended use of funds and the company’s financial profile. Great Elm’s typical financing target is $5MM to $30MM, which is a general range for the company and not a limit or a commitment on any specific request.

Discuss Financing for Your Next Stage of Growth

Tell us about your expansion plans, your funding requirements and the assets available to support financing. Great Elm can evaluate financing possibilities for your next stage of growth based on your business, objectives and eligible assets.

Contact Our Financing Team

Tell us about your business and what you’re looking to finance. A member of our team will follow up to discuss your needs and potential next steps.