Finance news November 2020: see below new types of finance arranged by Mercurio Capital.

It is my pleasure to introduce our new finance solutions to all our partners.

All our finance is unsecured and available – where possible - without Personal Guarantees (“PG”) or company Debentures. Most of our solutions can be added next to existing banking relationships, bank charges and Debentures, in the UK, Europe, USA and Beyond.

MBI Acquisition Finance:

1. Dedicated MBI finance – senior debt solution.

2. UK only.

3. Term loans from £1 to £8m.

4. Maximum 3 X EBITDA.

5. 25% Deferred Consideration and/or Cash deposit from the Buyer.

SAAS, Contractual Finance – Acquisition Finance solutions.

1. Loans with terms up to 5 years.

2. Typically no PG’s required.

3. MBOs, MBIs and Corporate acquisitions eligible.

4. No early repayment fees.

Acquisition Finance “War Chest” facility:

1. UK Fund will earmark a minimum of £1m for acquisitions, with pre-approved criteria.

2. Corporate can then launch an acquisition program, knowing there will be finance available whenever a target is found.

3. No more uncertainty about being able to finance an acquisition.

4. Available to existing corporates only, not individuals.

5. UK & Ireland only.

UK equity sponsorship:

1. Equity sponsorship for acquisitions and MBO’s.

2. Can be used together with Leveraged Finance.

3. Requires retainers from £750 to £5k.

1. UK Acquisition Finance:

   1. Debt lending.

   2. Focus on the target being acquired rather than the Acquiror.

   3. Up to £500.000 maximum facility.

   4. Requires UK-homeownership.

1. UK, Europe & North America, Singapore:

   1. Stock & Inventory finance.

   2. Revolving Credit Facility with rates from 1%/month, 12%/year.

   3. No monthly charges.

   4. Link to a Receivables Finance solution.

1. Private equity finance in the UK and Europe:

   1. Are you looking for strategic finance partners in the UK and Europe? Our Private Equity partners can help you grow as well as release the equity locked in your business.

   2. Minimum 5million Ebitda.

   3. UK and European cases are considered, regardless of business sector or level or financial performance.

1. Government contracts and large corporates Purchase Order Finance:

   1. If supplying a government agency or a large corporate, we can arrange the Purchase Order Finance to pay suppliers.

   2. Unsecured, no PG, no Debenture.

   3. UK and international.

1. Exporting Goods? Lease instead of selling:

   1. Equipment purchases may be converted into leases up to 5 years.

   2. Non-recourse to the seller; no PG, no Debenture on the buyer.

   3. Requires OECD government export finance guarantee.

1. UK import finance lease conversion:

   1. UK companies importing Capital Goods can have the transaction financed with a lease up to 5 years, instead of a straightforward purchase.

1. E-commerce finance UK:

   1. E-commerce finance solution based on historical monthly sales revenue, Run Rate and growth trend.

   2. Can include Ebay and Amazon channels.

   3. Unsecured, no PG required.

1. Stock finance UK and international:

   1. For UK companies with turnover over £5m - can be done a stock facility or a trade finance facility, and it can include existing stock. Can only be done on an invoice finance anchor, as a Add-on.

   2. For any company with turnover less than £5m - can only be done as a trade finance facility and it cannot include existing stock. Can be done on its own.

1. Venture Debt Finance UK:

   1. If you’re looking for a solution which values your ability to generate growth more than your ability to generate profit, this may be a solution.

   2. Non-dilutive.

1. Europe, unsecured Supplier Finance up to €3m:

   1. Cost of finance as low as 0,2%/month.

   2. Solution consists of Purchase Order Finance to pay suppliers early and claim discounts - ideally higher than the cost of finance.

   3. Revolving Credit Facility, maximum 150 days repayment cycle.

   4. Unsecured, can be placed next to existing banking relationships and banking charges.

1. Europe, Venture Debt up to £1m:

   1. E-commerce, SAAS, B2C, Information Technology (IT) sectors.

   2. Revenue share agreement with borrower.

   3. Any European geography company/platform can be considered.

1. USA & Canada: Unsecured Lending solutions:

   1. Integrated Asset-Backed, Fixed Assets and Stock financing solutions.

   2. Unsecured, no PG or Debenture.

   3. Wide scope, from a few $ hundred thousand to $ hundred million lending.

   4. Established revenue-generating companies only, no startups.

1. USA & Canada: integrated Factoring and Supplier Finance facility:

   1. For contracts and Purchase Orders from credit-worthy clients.

   2. Solution consists of Purchase Order Finance to pay suppliers, with the main source of security being the Purchase Order from the client.

1. International Receivables Finance:

   1. If your invoices are paid at 30 days and longer, we can arrange an immediate advance and increase your working capital.

   2. Potentially applicable to any jurisdiction in the world.

1. International energy and infrastructure finance:

   1. Mercurio Capital can arrange the finance for energy and infrastructure projects internationally (telecoms, electrical distribution, water projects).

   2. We can offer a conversion into a finance lease, rather than a straightforward purchase.

   3. Emerging Markets as well as developed markets are considered.

1. International Foreign Exchange (Forex) services:

   1. Foreign exchange transactions can be a big contribution to Net Profit.

   2. Hedging services for Spot and Forwards, in all Currencies, “major” and “exotic”.

   3. Savings up to 5% on costs and rates/year are possible, particularly with Chinese Renminbi.

1. International sports transfer finance:

   1. We can arrange sport finance transfers in any professional sport - football, motorsports, rugby, etc.

   2. Specialist contractual finance.

1. International Performance Guarantee Insurance for infrastructure projects:

   1. If dealing with infrastructure projects, we can arrange an insurance guarantee on the value of the credit or loan.

   2. Risk transfer up to 80% value of project.

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Previous financing solutions from August 2020:

1. Government, large corporates Purchase Order Finance:

   1. Government and large corporates Purchase Orders can be finance up to 100% of its value, including the Supplier Finance and Receivables facilities to pay suppliers. Unsecured finance, no PG.

1. ABL Europe, UK & US from €11m:

   1. European, UK and US Corporate ABL solutions for invoice finance, fixed asset leasing, stock and inventory finance, real estate finance from €11m to €150m.

1. Reverse factoring solutions:

   1. Reverse Factoring pays your suppliers early through an unsecured facility, enabling you to negotiate discounts with existing suppliers and gain access to new suppliers. A Reverse Factoring facility can be issued next to existing banking relationships or Debentures.

1. Forex hedging services used as Acquisition Finance solutions:

   1. Companies exposed to FX fluctuations could have added value FX solutions through an M&A package which de-risk the exposure to FX fluctuations. The JTF Wholesale https://www.jtf.com/ case study shows how, post-acquisition, potential COS savings of £500k could be achieved using FX hedging.

1. Corporate Bond indemnity insurance:

   1. If you have a corporate bond issued on the basis of a personal assets portfolio, we can set up an insurance which will take away the risk of the personal assets being called as security for the bond, should the bond ever default on its payments.

1. Secured property loans in UK, Ireland, France, Germany, Holland, Belgium, Spain and Switzerland:

   1. Specialist investment equity release from existing real estate assets for property development, corporate expansion or personal project investment.

1. Forfaiting trading facilities for Emerging Markets:

   1. If selling to Emerging Markets – or Frontier Markets – a Forfaiting facility could advance your Receivables and take the risk away from the transaction, non-recourse.

   2. Up to 5 years repayment.

1. New geographical areas being covered soon for Trade Finance:

   1. USA, Dubai, Brazil.