Cash Flow Loans - Reliable Debt Capital for Financial Sponsors and Lower Middle Market Companies

BDC Capital’s cash flow and leveraged finance solutions are structured around a company’s cash flow generating capacity rather than its assets, making them well suited for event-driven transactions including acquisitions, leveraged buyouts, refinancings, recapitalizations, and growth initiatives. With loans from $750,000 to $10 million, we offer longer repayment terms and higher loan-to-enterprise value capacity than traditional lenders.

company INTRODUCTION

Since 1953, we have successfully navigated multiple economic cycles, partnering with private equity firms, family offices, independent sponsors, and management teams to support acquisitions, growth initiatives, recapitalizations, management buyouts, shareholder repurchases, and dividend recapitalizations. We take a partnership driven approach and understand the fast-paced nature of M&A, delivering speed, certainty, and structuring flexibility.

WHY BDC CAPITAL

More than Just Traditional Lending

Products & Services

Senior, Stretch Senior, and Unitranche term loans, including Term Loan B structures designed to provide flexibility in bank-led club transactions. Structures may include split-collateral, split-lien, second-lien, and last-out tranches to support extended blended repayment profiles. We also offer delayed-draw term loans to fund add-on acquisitions, as well as revolving credit facilities to support working capital and equipment needs.

Transaction Types

Acquisition and growth financings, management buyouts, shareholder repurchases, dividend recapitalizations, balance sheet recapitalizations, and growth capital investments.

Our process for financing success

Frequently asked questions

What loan sizes are available for cash flow loans, and are personal guarantees required?

BDC Capital offers cash flow–based term loans up to $10 million. Loan sizing is determined by enterprise value, cash flow strength, and debt service capacity. Personal guarantee requirements depend on the borrower’s ownership structure and overall credit profile and are assessed individually.

What types of businesses are a good fit for cash flow loans?

We partner with investors and businesses that demonstrate proven fundamentals, consistent cash flow generation, and sustainable EBITDA margins above 10%. BDC Capital is industry agnostic and supports transactions across a wide range of sectors.

What differentiates ABC Capital in leveraged finance?

Deep experience, flexible structuring, and reliable execution. We partner closely with investors and deliver customized solutions in fast-moving M&A environments, supported by over 70 years of lending experience.

Can cash flow loans be used for business acquisitions?

Absolutely. Cash flow loans are excellent for acquisition financing when the combined entity's earnings support debt service. We evaluate pro forma cash flows, integration plans, and synergy potential—not just the target company's asset base—making acquisitions more achievable.

What types of businesses are ideal candidates for cash flow loans?

Professional services firms, technology companies, consulting businesses, healthcare practices, marketing agencies, distribution companies, and other service-oriented or asset-light businesses with strong EBITDA and management teams are ideal candidates. Any business with performance exceeding its collateral value benefits from cash flow lending.

Do cash flow loans require personal guarantees?

Personal guarantee requirements depend on business structure, ownership concentration, and overall credit profile. We evaluate each situation individually, balancing business cash flow strength against guarantee requirements. Our goal is structuring sustainable financing, not maximizing guarantees.

Get the financing your business performance deserves

Partner with lenders who understand cash flow, not just collateral

Get Financing