Term Loans

Senior or Secondary Debt for Any Reasonable Business Purpose

Rhode Island Capital provides direct term loans to bridge the gap between financial needs and conventional bank financing.  Loans ranging from $500,000 to $10 million may be either senior debt or secondary to a primary financing arrangement.  Our funds our sourced from our member banks.

Each Rhode Island Capital term loan is custom-designed – we have no specific terms, advance rates or formulas that must be met and therefore can offer extremely flexible financing solutions based on the particular needs of a business.  Term loans may be used for working capital, the purchase of machinery, equipment or real estate, business acquisitions, debt restructuring, and more.  For example:

Working Capital:  Working capital often becomes constrained for many reasons, including rapid growth, the loss of a customer, a delinquent receivable, or an over-inventoried position.  Rhode Island Capital can provide funds for ongoing expenses or to create availability under an existing line of credit.  Working capital term loans typically range from five to ten years.

Machinery and Equipment:  When a higher advance rate on the collateral is needed or a longer term is required based on available cash flow, a senior or junior secured term loan is often the solution.  Rhode Island Capital will finance new or used equipment, or refinance existing loans, on terms that are commensurate with the useful life of the asset.

Real Estate:  Rhode Island Capital provides loans for the acquisition of owner-occupied property or the refinance of existing real estate loans.  We offer up to 100% financing, maturities up to 25 years, first mortgages, participations or secondary mortgages in conjunction with a primary lender, and loans with “early out” protection for the bank.

Debt Restructuring:  Rhode Island Capital has an expertise in restructuring short and long-term debt.  Debt restructurings often come into play when availability under a line of credit is constrained, temporary interruptions to cash flow make meeting existing debt service requirements difficult, equipment leasing terms are too short, payables are stretched, or a company is moving its relationship to another bank.

Jarrad Herzog

Senior Vice President