Who this is built for
Profitable (EBITDA-positive) businesses needing capital beyond what the senior lender provides.
A transaction of this shape
Illustrative example, not a past transaction. An EBITDA-positive logistics company needed $2.5M to acquire a competitor, but the senior lender capped out at $4M — a million short. We arranged $1.5M of subordinated debt behind the senior facility, closing the gap without the owner giving up any equity. The combined business is now about 60% larger and the sub-debt is being retired on schedule.
Qualification considerations
What the capital sources behind this structure look at. These are their published parameters, not an offer of credit, and a file that misses one is not automatically declined — it is a conversation about which source fits.
- Positive EBITDA / cash flow
- Existing or concurrent senior debt
- Clear use of proceeds and exit
What usually rules a file out
- Pre-revenue / no cash flow
- No senior-lender / intercreditor path
What to have ready
You do not need all of this to start a conversation — submit first, and we will tell you what the specific file needs. This is what a transaction of this kind normally opens with.
- Recent business bank statements
- The two most recent business tax returns, where the business has filed them
- A current profit & loss and balance sheet
- An accounts receivable and accounts payable aging
- An entity document for the borrowing entity, and a personal financial statement
How the process runs
Submit
You tell us about the transaction. Six questions, about sixty seconds.
Underwrite
We size it against the capital sources' documented parameters and tell you where it stands.
Execute
We manage the process through term sheet, diligence, and closing.
Close
You get results, and we stay involved for the next transaction.
Worth reading beside this
Have a transaction that looks like this?
Tell us what you are working on — six questions, about sixty seconds. We review it and come back with next steps, and if this is not the right structure for it, we will say which one is.
Submit an Opportunity →Business-purpose financing only. Canady Investments is not a bank and does not lend its own funds. This page describes a financing structure and the criteria the capital sources behind it publish; it is not an offer of credit, a commitment to lend, or a guarantee of financing, and nothing here is a quoted rate or term. All terms are subject to underwriting, documentation, and third-party capital source approval.