Junior Term Loans
A form of subordinated debt financing that sits between senior debt and equity in a company's capital structure. These loans are specifically designed for businesses with profitable corporate tax returns and offer one of the most cost-effective junior capital facilities currently available in the United States. Unlike traditional senior secured bank loans, junior term loans require no collateral and are structured to be subordinate to existing senior secured lenders.
- CHECK SIZE
- Up to $500,000 based on profitability
- INTEREST RATE
- Starting at 9.50% annually
- TERM LENGTH
- 4-5 years with monthly payments
- TIME TO CLOSE
- 2-3 weeks from application
- COLLATERAL
- No collateral required
- PREPAYMENT
- No prepayment penalties
When to Use Junior Financing
Maximize your financial potential with our advisors who bring real-world expertise to the table. We're committed to leveraging their extensive knowledge to guide you towards financial success and security.
Working Capital Enhancement
Perfect for businesses that have maxed out their senior credit facilities but need additional working capital. Maintains existing banking relationships while accessing additional capital for seasonal fluctuations and growth initiatives.
Growth & Expansion Financing
Strategic investments for technology upgrades, market expansion, staff augmentation, and inventory buildup. Provides funding for entering new markets and hiring initiatives during growth phases.
Acquisition Support
Bridge financing for business acquisitions where senior debt may not cover full purchase price. Supports integration costs and provides working capital injection during acquisition transition periods.
Debt Restructuring
Capital structure enhancement that preserves senior debt capacity while providing lower-cost capital. Interest rate optimization at 9.50% with 4-5 year terms for stability.
Advantages of Junior Financing
Discover the benefits of junior term loans and how it can transform your business.
- No Collateral Requirements
- Preserves business assets with no need to pledge equipment, inventory, or real estate. Maintains asset flexibility and reduces personal risk without personal guarantees on business assets.
- Competitive Pricing
- 9.50% starting rate is significantly lower than merchant cash advances or short-term loans. Fixed monthly payments with no prepayment penalties for flexibility.
- Ownership Preservation
- No equity dilution - businesses retain 100% ownership and control. No board representation required and less restrictive covenants allow management autonomy and operational flexibility.
- Fast & Flexible Funding
- 2-3 week timeline allows businesses to capitalize on time-sensitive opportunities. Flexible use of funds for various business purposes while building positive credit history.
Ready to accelerate your growth with strategic capital?
At Sereno Capital Group, we specialize in connecting businesses with junior term loan providers that complement your existing capital structure. We partner with lenders who offer flexible financing solutions to help you achieve your growth objectives without compromising your current debt arrangements. With competitive rates, customizable terms, and a deep understanding of lower middle market businesses, we're your strategic partner for growth capital.