Credit & Capital

  • What happens to vested RSUs when ‘issuance’ or ‘release’ of shares is deferred?

    If a restricted stock unit (RSU) has vested, but the employee wants to defer the “issuance” or “release” of the shares, my two questions are: These RSUs would no longer be considered outstanding, correct? Would these vested but non-released, non-issued shares be cons…

  • What are the success fee's broker-dealers charge? 2020

    Hello! Could someone please tell me. What are typical success fee's broker-dealers charge when raising capital for a fund? ex: equity, real estate, private placement, etc. Appreciate your help! Thanks, Paula

  • Are pledged shares an example of floating charge?

    Are pledged shares an example of floating charge?

  • Valuation of Preferred Stock

    What is the impact on the market price of preferred stock if the dividend payment is due and when it is paid? Suppose a company pays $5 as dividend every year 1- What is the market price now when the next dividend payment is due in one year? 2- What will impact on the market price of sto…

  • Preferred Stock Authorized

    What would be the incentive for a company to authorize "Preferred Stock" when the company already has common stock? Is Preferred Stock seen by management as another access to capital, similar to a line of credit or loan? Lastly if possible to answer, what are some of the reasons a company would aut…

  • Business Payment terms

    We purchased products off of a company for well over 30 years. Our business terms were 2% net 20 days. Now all of a sudden they want to switch the terms to Net 30 days. We were never consulted nor notified in any way. They just changed the terms on an invoice. Is that legal?

  • Debt Matching

    Hello All, I would like to ask a question about debt matching. Finance theory would say match long term debt with long term assets (building, plant etc) and short term debt with short term assets such as working capital. But what if a business is young or just doesn't have the funds to grow a…

  • Debt and Equity

    Dear All, I know it is common knowledge that a company should have some debt. Is it because of only the tax benefit? What about if a company has no debt but abundant cash reserves and healthy cash flow? There is a family company that I do work for. They only have 3 shareholders and don't…

  • Line of Credit Pricing

    We are renewing our line with our bank. We have a great relationship but I want to make sure that our pricing is good relative to current market conditions. We are a middle market company with excellent credit and only use the line for seasonal working capital needs. Our pricing is L+115. Any feedb…

  • How do I negotiate a covenant cure clause?

    I would like my bank to add a clause that if I violate a covenant, I have 10-20-30 days to cure the violation, which has obvious advantages. Have any of you been able to get such a clause in your bank or other financing agreements?

  • Pricing Asset Backed Hard Money Loans

    I am in investor in a small business that makes asset backed hard money loans (typically 2-month to 24-month). We are looking for a line of credit against the current collateral to make additional loans. We are seeing a lot of opportunity. Loans include a mix of residential and commercial real est…

  • Need factoring or asset-based lender suggestions for Mass SaaS private company

    Hello all, We are a very small (less than 20 people) SaaS company in Massachusetts looking for recommendations for a company that does a Factoring of Receivables or an Asset-Based lending. We are not venture-backed. If anyone has any suggestions, that would be greatly appreciated.

  • Difference between Regulatory Reporting & External Reporting.

    I am getting mailers for job openings in Regulatory Reporting and External Reporting. Can anyone pls help me in understanding the same. And, which area among these are more beneficial in terms of career growth.

  • Stock Split - Issuer Side

    Can anyone clarify if there is a formal restriction for Issuer to chose a ratio without remainder for a stock-split ? For example, is the issuer allowed to do perform the following exercise: Starting point: 100 shares at 10 USD each giving 1000 USD in total , Stock split at a ratio of 1:3. Res…

  • How do you account for a SAFE Agreement on a Cap Table

    We just raised $525K using a SAFE agreement and I am wondering how it should show on the Cap Table since we cannot calc the number of shares. For the momemt I just put the amount under Investment. The current Cap Table is the following: Type …