Loan Types We Offer

SENIOR DEBT

At Blackhorse, we understand the importance of securing the right type of financing for your business. Senior debt is a traditional form of loan that can provide a secure and predictable source of financing for your business. Senior debt can be a secure and predictable form of funding for companies looking to raise capital. However, it is essential to carefully evaluate the benefits and risks associated with senior debt to determine if it is the right financing option for your business. If you are considering senior debt for your business, our team of experienced project finance professionals can help you evaluate your options and determine if senior debt is right for your business. Contact us today to learn more.

WHAT IS SENIOR DEBT?

Senior debt is a type of loan that has a priority claim on a borrower’s assets and cash flows. Senior debt is typically provided by banks or other traditional lending institutions and is secured by collateral such as real estate, equipment, or inventors.

HOW DOES SENIOR DEBT WORK?

Senior debt is typically structured as a term loan with a fixed interest rate and a set repayment schedule. The interest rate on senior debt is typically lower than other debt financing forms, such as mezzanine or equity financing.

In the event of default, senior debt has priority over other forms of debt and equity financing, which means that the lender has a higher chance of recovering their investment. This makes senior debt a less risky form of financing for lenders and a more secure form of financing for borrowers.

BENEFITS OF SENIOR DEBT

Lower Interest Rates

Senior debt typically has lower interest rates than other forms of debt financing, which can save companies money on interest payments over the life of the loan.

Predictable Payments

Senior debt is typically structured with fixed interest rates and set repayment schedules, making it easier for borrowers to plan and budget their loan payments.

Collateralized

Senior debt is secured by collateral, which reduces the lender's risk and allows borrowers to access larger loan amounts than they might otherwise be able to obtain.

Priority of Payment

In the event of default, senior debt has priority over other forms of debt and equity financing, which makes it a less risky form of financing for lenders and a more secure form of financing for borrowers.

Longer Loan Terms

Senior debt can offer longer loan terms than other forms of debt financing, which can benefit companies that require a longer time horizon to repay their loans.

Senior DEBT may be a Good Financing option for your business if you:

  • Need a secure and predictable source of financing.
  • Have collateral to pledge as security for the loan.
  • Have a solid business plan and strong financials.
  • Prefer fixed interest rates and set repayment schedules.
  • Are comfortable with the additional risk associated with using collateral to secure the loan.
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