Collateral Value in LBO Financing: A Guide to Asset-Based Debt (ABL) Series Introduction This is the second chapter in the Small to Middle Market LBO Financing Manual. In Part 1, you learned how leverage increases return on equity and why lenders use debt capacity as the starting point for any acquisition. This article continues the sequence by focusing on collateral value — the first of the two pillars lenders rely on to size secured debt in an LBO. Understanding collateral strength gives buyers a clear picture of what senior lenders may advance before repayment analysis begins. Key Points ABL financing...

Capital Source November 2025 Impact: 19 Private Credit Deals Across Capital-Intensive Industries This November 2025 impact statement summarizes how Capital Source’s Private Credit Division deployed $6.9 million across 19 transactions, supporting capital-intensive businesses in logistics, retail, manufacturing, and other sectors across North America. Key Points 19 transactions closed between November 1–30, 2025, totaling $6.9 million in committed facilities. Funding supported freight logistics, retail trade, beverage manufacturing, consulting, auto dealers, construction, transportation, and several other sectors. Largest single facility: $1.6 million to a Wisconsin-based freight logistics company. Transactions spanned multiple U.S. states and British Columbia, highlighting cross-border execution capability. Cumulative platform...

LBO Basics for Small Business Buyers: How Debt Financing Multiplies Return on Equity Series Introduction This article launches the Small to Middle Market LBO Financing Manual. The concepts here set the foundation for the full series. In the chapters that follow, we break down collateral evaluation, cash-flow analysis, lender expectations, and deal structure — all centered on helping buyers understand how leverage works in real transactions. This first article explains the core LBO idea: how using debt rather than equity increases return on equity in a small or mid-sized business acquisition. Key Points LBO financing applies directly to small and...

How to Build a DSCR Loan Package Lenders Approve This article is the final phase in our DSCR series. Earlier segments explained how lenders review DSCR, how DSCR changes between acquisition and refinancing, how to stress-test DSCR like a lender, and which underwriting ratio limits loan size first. Now we bring everything together and show how to prepare a DSCR loan package that reflects the way lenders actually review risk. Key Points A lender-ready DSCR package highlights ratios, risk analysis, and financial strength in a clear, credible format. Strong submissions present DSCR, Debt Yield, LTV, and ICR up front. Stress-test...

Which Ratio Limits Your Loan First? DSCR vs. Debt Yield vs. LTV vs. ICR This article continues our DSCR series by moving beyond coverage alone. In the earlier phase, we explained how underwriters review DSCR and how the same ratio changes meaning as DSCR shifts between acquisition and refinancing. We then covered how to stress-test DSCR like a lender. Here, we compare DSCR with the other major underwriting ratios lenders use — Debt Yield, LTV, and Interest Coverage — to determine which one caps your loan amount first. Key Points Lenders size commercial loans using multiple ratios, not DSCR alone....