SERVICES
What We Do
Foothills Capital Advisory counsels businesses on alternative sources of capital for their needs, obtains offers from proven and reliable capital providers, chooses the right partner and solution, assists in negotiating the terms, and guides businesses through the closing process.
The following are the types of capital and loan structures we commonly work on.
Click any title below to learn more about that service.
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Loans and lines of credit that are secured by the assets of the company, including Accounts Receivable (AR), machinery, equipment, inventory, and owner-occupied commercial real estate.
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A hybrid financing option that is subordinated to the senior secured lender; meaning the lenders will enter into an agreement that defines their respective lien rights over the company's assets. This type of loan typically carries higher risk, and, in turn, higher interest rates.
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Provides a way for borrowers to access more sophisticated financing options while still leveraging their assets as collateral.
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Loans for businesses that are used to purchase, refinance, or improve commercial real estate (CRE) property that they will primarily use and occupy for the business. CRE loans vary in duration and the loan size is limited to a percentage of the property’s appraised value. A common term used to describe the loan size/limit is LTV (Loan to value).
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Receivables financing can either be part of borrowing base of an ABL line/loan, or can be a stand-alone financing in the form of purchased Accounts Receivables (AR) or factoring AR.
Asset-based lenders will typically advance funds from 70 to 90% of eligible accounts receivable. Some types of receivables are considered ineligible to help lenders mitigate risk and ensure the quality of the collateral.
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Equipment loans allow businesses to leverage machinery and equipment as the collateral for their loan. These types of loans are typically term loans over 3-5 years with regular principal and interest payments, typically monthly. For loans based on existing/used equipment, lenders typically require an appraisal from an approved appraisal firm.
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This funding model provides capital to a business in exchange for a percentage of the company's revenues. Lenders typically loan 25%-50% of the company's annual revenue, with repayment based on monthly revenue until repayment (oftentimes 1.3x-2x the original investment).
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Unsecured loans are those that are not secured by assets. These loans are typically taken out when a business does not have assets for an asset-based loan, or as a complement to an asset-based structure. These loans are typically over a fixed-term with fixed payments.
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Lending against inventory can either be part of a broader asset-based borrowing base or stand-alone for companies that sell their products primarily on-line or in their own retail stores. There are specific lenders who specialize in this type of lending.
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A short-term loan intended to be in place until a business can secure permanent financing or pay an existing obligation.
Types of Clients
with Whom We Work Best
Rapidly Growing to Mature Businesses
Loan Sizes of $2-$50MM
Revenue: $10-100MM+
Industries include:
Manufacturing & Distribution
Professional Services
Transportation & Logistics
Information Technology (IT)
Staffing
Healthcare
Construction Services
CPG
Food & Agriculture
and more…
Scenarios for Which
We Can Source Capital
Mid to late-stage startups
Recovery and turnaround
Additional working capital
Bank exits / debt restructure
Recapitalizations / management buyouts
Mergers and Acquisitions