Debt financing
Business debt financing & advisory
Whether you’re expanding, buying equipment, strengthening working capital, refinancing or making an acquisition, we help you put the right financing in place. We prepare the application, take it to suitable lenders and work it through to approval.
- Who it’s for
- Established private businesses, and buyers acquiring one
- What we do
- Financing packages, lender outreach and support through credit approval
- What we don’t do
- Lend money ourselves or guarantee approval
What we help businesses finance
Acquisition debt is one part of our financing work. Most requests come from established businesses that need capital to grow or to put their balance sheet on a better footing.
Growth and expansion
GrowthNew locations, larger premises, new product lines or a major contract that needs funding before it pays.
Working capital
Cash flowOperating lines and term facilities to carry receivables and inventory as sales grow or seasons change.
Equipment and capital expenditures
AssetsMachinery, vehicles, technology and facility improvements, financed over a term that matches their useful life.
Commercial financing
GeneralTerm loans and credit facilities for established businesses with a clear purpose and the cash flow to support repayment.
Refinancing
RestructureReplacing or consolidating existing debt to improve terms, extend amortization or free up cash flow.
Acquisition financing
TransactionsSenior debt, seller financing and buyer equity combined so a purchase can close and the business can carry the payments.
How we work
We don’t simply pass on an introduction. We prepare your request properly and stay with it until a lender has made its decision.
Kingston is an advisor, not a lender. Each lender makes its own credit decision on its own terms.
Understand the need
What the money is for, how much is needed, the right type and term of financing, and what the business can comfortably repay.
Review the numbers
We go through recent financial statements, cash flow and existing debt, and adjust the figures so a lender sees a clear, accurate picture.
Prepare a lender-ready package
Financial summaries, projections, a business plan where it’s needed, and a plain explanation of the request and how it will be repaid.
Find suitable lenders
We identify lenders whose criteria fit the business and the request, and approach them on your behalf.
Manage the application
We coordinate the applications, answer lenders’ questions, provide follow-up information and keep the process moving through credit review.
Work through the conditions
We help you compare offers and term sheets, understand covenants and conditions, and get to funding.
Can the business carry the loan?
Whatever the loan is for, lenders compare the cash a business generates with the payments it has to make. Change the hypothetical figures to see how loan size, rate and term affect the picture.
Hypothetical figures. Replace them with your own.
Principal and interest on a fully amortizing loan with monthly payments.
For illustration only. This doesn’t assess creditworthiness or show whether any lender would provide financing. Lenders apply their own criteria and credit review.
What lenders look for
A good financing request answers these questions before a lender has to ask.
- Steady cash flow over several years that can be checked
- Financial statements that match the tax filings
- A credible plan for who runs the business after closing
- A meaningful investment from the buyer
- What the loan is secured against
- Customer concentration and other industry risks
- Room to keep paying in a weaker year
- A clear summary of where the money comes from and where it goes
Acquisition financing
How a business purchase is usually financed
Select each layer to see what it is and what to watch for. The proportions are illustrative only, not typical or recommended levels.
Lower layers are repaid first. Upper layers carry more risk and absorb losses first.
Layer one
Senior debt
Term debt from a bank or other commercial lender, repaid over a set amortization period and usually secured by the business’s assets and a general security agreement.
- Sized to the cash flow the business can reliably generate
- Ranks first for repayment and security
- Comes with covenants, reporting and often personal guarantees
Layer two
Vendor take-back
Part of the purchase price lent back to the buyer by the seller, repaid with interest after closing. It can bridge the gap between price, buyer equity and bank financing.
- Usually subordinated to the senior lender
- Signals the seller’s confidence in the business
- Leaves the seller exposed to the business’s future performance
Layer three
Earnout
Additional purchase price paid only if the business reaches agreed targets after closing. It can resolve a disagreement over value without increasing the financing needed at closing.
- Depends on clear definitions and measurement
- Can create friction if the seller no longer controls results
- Lenders review how it interacts with debt payments
Layer four
Buyer equity
The buyer’s own capital, alone or with investors. It absorbs losses first and benefits most from growth.
- Lenders expect a meaningful equity contribution
- Demonstrates the buyer’s commitment
- May be supplemented by private investors
From a client
More testimonialsFrom signing the LOI through closing, Khaled demonstrated professionalism, patience and a strong commitment to the transaction. His team guided us at each stage, including connecting us with an appraiser, banker and lawyer, and helped us complete the acquisition efficiently and without unnecessary complications.
Questions about financing
All FAQsDo you lend money or invest in businesses?
No. Kingston is an advisory firm, not a lender. When a business needs financing, whether for growth, working capital, equipment, refinancing or an acquisition, we prepare the financing package, approach suitable lenders and manage the application through credit review. Each lender makes its own decision. Through our private capital work, we introduce investors to acquisitions that we source and manage.
What is seller financing, and should I offer it?
Seller financing, usually called a vendor take-back (VTB), means you lend part of the purchase price to the buyer and are repaid over time. It can bridge the gap between the price, the buyer’s own money and what a bank will lend.
It isn’t required in every deal. Whether it makes sense depends on the strength of the buyer, how the financing is structured, how much you would have at risk and the rest of the offer. Used well, it can widen the pool of buyers, support the price and help a deal close. We help you weigh the benefits and the risks before you agree to anything.
What is an earnout?
An earnout is part of the price that is paid only if the business hits agreed targets after closing, such as a level of revenue or earnings. It can help when buyer and seller disagree about the future, but it depends heavily on clear definitions and on how the business is run after the sale, so it needs careful negotiation.
Other ways we can help
Confidential conversation
Need financing for your business?
Tell us what the financing is for. We’ll look at what the business can support, how to present it and which lenders are likely to be a good fit.