Financing for Publishing Projects
Financing for Publishing Companies, Businesses and Corporations
Many publishers have trouble getting financing. Recently, a publisher came to us for a $10 million loan to release a new book. The publisher, who had a streak of successes in books and couldn't obtain financing through their normal financing sources. We found a bank that gave them the financing they were looking for.
Most publishers have trouble obtaining working capital financing. The banks have issues with evaluations of publisher's inventories and back lists. A publisher with $30 million in revenues (down from $35 million) needed to renew his bank line of $10 million and the bank wanted to get rid of the credit and asked him to leave. We were able to find another bank (one that turned him down previously) to make the loan.
Secret to Our Success
What is the secret to our success in arranging financings where the client hasn't been successful on its own? And sometimes with a source who has previously passed on doing the financing! The answer is twofold - telling the story in a better and professional manner and telling the story to the right people.
AMG Financial Capital knows how to present companies to each financing source and get results. Our process and payment timeline is depicted below before and after we stepped in. There are only 3 reasons for financing: ACQUISITION, EXPANSION, TROUBLED COMPANY REFINANCING.
Advantages of Debt Financing
The biggest advantage of debt financing is that the lending party does not gain any part of ownership of your business and your only obligation to lending party is to repay the debt. Also, repayment of the loan is typically a fixed expense, according the terms of the loan.
Obtaining Financing
First we must determine whether the prospective client qualifies for the financing they seek and there is a critical mass of interest in a financing. This involves a process that matches the prospective client with the right institutions that will provide the financing they seek. For starters, this entails answering 4 questions at no cost to the company:
- What business are you in?
- What are your revenues? (Must have $10 million or more in revenues)
- How much financing do you need?
- For what purpose do you need it?
When you contact us and answer these questions, we take you through the process of obtaining financing step by step.
At each step in the qualification process if there is not enough interest from financing sources the process stops before any money is expended.
This engagement process results in higher advance rates, lower interest costs, and better terms and conditions for our clients.
Our process from start to finish takes an average of 57 days.
Once we receive your answers, we will match you with 5 to 10 institutional sources based on the size of the financing needed and the industry. If we get a critical mass of interest — usually 3-6 or more — we proceed to the next step: a due diligence visit. This visit ensures that you and your facilities are of the quality required by the financing sources. If the client is in the Los Angeles area there will be no travel expense.
Corporate Debt Financing
Debt financing allows you to have control of your own destiny regarding your business. You do not have investors or partners to answer to and you can make all the decisions. You own all the profit you make. AMG Financing Capital helps private and public companies in the middle market having over $10 million in annual revenues obtain debt financing for Expansion, Acquisitions, Bank work out department out placements, Bankruptcies and reorganizations, and Certain real estate projects. These financings have ranged from $1 million to $50 million and can include equity and senior debt, purchase order, and cash flow financing. For more than 40 years, AMG Financing Capital has found over $4 billion in financing for over 1000 companies. OUR PROCESS HAS PRODUCED A 100% SUCCESS RATE.
Business Debt Financing
If you finance your business using debt, the interest you repay on your loan is tax-deductible. This means that it shields part of your business income from taxes and lowers your tax liability every year. Your interest is usually based on the prime interest rate. Presuming our due diligence is successful, we present our findings to the financing sources that have expressed preliminary interest. These sources are screened to ensure that they are coming to visit your company with a view towards making an offer within the parameters of your needs. At this point, we are ready to be engaged. You, our client, has had no outlay of funds until now. The engagement entails AMG producing a written presentation to the financing sources which takes about a week, and scheduling the visits of the interested sources. Usually there are 3-6 visits. Again, On average it takes 57 days for a debt financing to take place. Almost 30% of our financings are done with institutions that have turned down the company's financing opportunity before our involvement.
Our engagement fee is deducted from the success fee. The success fee is a percentage of the financing. These fees are agreed to in writing before the financing process takes place.
Our careful adherence to this process guarantees the maximum results possible for our client's financing needs, and why our success rate is so high.
Call us today at 1-800-869-8789 or 1-310-454-1114 or contact us here for a no-obligation assessment.
