Supportable Borrowing Base: The Balance Sheet Ceiling for the Capital Stack Why Facility-Level Compliance Cannot Govern Aggregate Borrowing Capacity A business passes every covenant on every facility and still runs short of cash at the moment the cycle peaks. Each lender reads its own instrument and finds nothing wrong. None of them reads the combined...
Why Equipment Lenders Fund on Useful Life, Not Enterprise Health The Useful Life Coverage Criterion reads the asset’s value, remaining life, resale market, and financing term—not the borrower’s earnings. A weak enterprise is funded on a strong, long-lived, widely resalable machine. A healthier enterprise is declined on a specialized asset with a short remaining life...
Press release · May 2026 funding activity A look inside where private credit went to work in May 2026: 22 fundings, $3.84 million, and seven economic regions of North America. Chicago, June 12, 2026. Capital Source®, through its Private Credit Division, closed 22 transactions totaling $3.84 million in May 2026, financing operators across 18 states...
Revenue-Based Financing Underwrites Revenue Durability, Not Margin A revenue-based facility is repaid from the stream itself, so the underwriting question is whether revenue is stable, repeatable, and predictable enough to support the payment. A business with thin margins and a steady, repeatable revenue stream can support a revenue-based facility. A higher-margin business with lumpy, unpredictable...
Why Asset-Based Lending Can Fund Companies That Lose Money The Collateral Selection Criterion explains why asset-based lenders underwrite eligible collateral, controls, and the working-capital cycle—not last year’s profit. A lender looks at a company that lost money last year and declines. A second lender looks at the same company and extends an asset-based facility....
