The demand for capital from ASX listed companies is stronger than ever in 2021. At the same time, there is an adequate supply of capital to the market with many investment banks, funds, family offices and high net worth individuals alike with a keen appetite to invest.
As a result of the ideal market conditions, a great deal of pre-IPO, IPO and equity raisings are being quickly filled. This is likely due to a build-up of capital from investors who were overly cautious in 2020 and ASX listed companies who are ready to execute their growth strategies following an uncertain and challenging year.
Traditional equity issues are often offered at discount to the current market value and dilutionary to existing shareholders. An alternative solution to this problem is through either senior debt or structured finance (e.g. convertible note finance).
However, while there may be a steady supply of capital in some financing sectors, the big four have tightened their lending criteria. In addition to the often rigid requirements of traditional bank loans, companies are now also wary of outside lenders offering convertible note finance under less than amicable terms that may adversely affect the share price and disadvantage existing shareholders. This provides professional service providers and/or their company a challenge in seeking and identifying an amicable funding partner within their networks.
Having a secured lending partner
ORB Alternative is an ASX Only funding partner for professional service providers to ensure they have alternative funding solutions for their clients. As a registered partner with ORB, you create a mutually beneficial partnership – where companies can pursue their goals and you enhance your relationship with them as well as providing you with an additional economic benefit.
ORB provides secured flexible financing solutions for ASX listed companies and the owners of ASX listed stocks, from amounts above A$250k to over A$25M. Unlike other non-bank platforms, as an ORB partner, there is no contractual obligation or set deal flow you are required to present.
ORB Alternative assists professional service providers to overcome financial challenges their clients or businesses may be facing, whatever the catalyst or scope may be.
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