Alternative Financing: Funding Businesses that

Don’t Fit with Traditional Banks

hennesseycap.com

Seed CapitalAngel Investment

early stage equity investment

Financing Spectrum

Preparation Financial Documentation• Historic balance sheet and income statement (3 yrs).• Current period balance sheet and income statement.• Projections including cash flow, balance sheet and income statements. • Accounts receivable and accounts payable agings (summary and detailed).• Contracts or purchase orders.• Customer list.• Personal financial statements and resume(s).• Inventory reports.• 2 years personal and business tax returns.

About Hennessey Capital Hennessey Capital is a division of Hitachi Capital America Corp. and provides working capital funding up to $5 million for B2B companies who are “pre-bankable” but “post-revenue” using receivables, inventory, and equipment as collateral. Financing options include factoring and asset-based lines of credit.

Factoring by invoice• Accounts receivable used as collateral• Example: for every $100, $85 advance is paid at time of invoice with the balance ($15 less interest) paid when customer’s payment is received.

Asset-Based Line of Credit • More traditional revolving line of credit, similar to a bank• Accounts receivable, inventory, and equipment used as collateral• Requires more reporting than factoring

Factoring

Used for business to business companies in manufacturing, service & distribution industries.

Limited track record or rapid growth.

Leverages up to 90% of invoices for immediate cash.

Bridge A/R collection and A/P payment gap.

Can be used in conjunction with current bank facility.

Asset-Based Line of Credit Established business to business sales companies.

Restructure current bank debt, successor financing to factoring or flexible tool for long term needs.

Leverage asset classes to maximize cash-accounts receivable, inventory, machinery and equipment or real estate.

Used as a stepping stone to traditional bank financing.

Cooperative & Complementary Hennessey Capital works closely with banks to help businesses grow.

Complementary• We do not require 3 years of profitability• Past losses are ok; a prior bankruptcy is not a deal-killer• Personal net worth is not a focus• Typical client is non-bankable• Allows the business to establish a profitable history of performance and become “bankable” to transition to a traditional banking relationship

Cooperative• We can work with your bank on the front end in the early stage of your business or later on if you need more than your existing bank line of credit.• We can offer a complement to existing line of credit. • Your bank has your business banking account throughout.

Recent TransactionsFactoring

• Local Chocolate Company: $100K facility to provide working capital • LED Lighting Company: $750K facility to fund new sales growth • Epoxy Manufacturer: $250K facility to support staff payroll and purchase production materials • Staffing Company: $100K factoring facility for working capital to grow

Asset-Based Line of Credit

• Duct Manufacturer: $1M A/R supported line of credit to ramp up sales and achieve profitability • Steel Wholesaler: $500K line of credit to increase working capital• Data Monitoring Company: $1M A/R & inventory supported line of credit to support growth