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Growth Credit and its Strategic Appeal for Acquisitions

As the financial landscape adapts, offering new funding solutions for acquisitive growth-stage companies has become a rising trend. Alternative financing solutions like growth credit are gaining traction among expanding businesses.

Growth credit has become a pivotal financing mechanism in the business world, especially in the current high-volatility economic environment. While traditional financing options continue to serve their purposes, growth credit is distinguishing itself as a preferred option for many companies.

Growth credit, to put it simply, provides businesses with the capital they need to execute their growth strategies without diluting ownership or surrendering equity. Firms like Decathlon Capital Partners are leading the charge in this evolving financial landscape by providing bespoke solutions tailored to individual business needs – including funding acquisitions.

So, what’s the allure of growth credit, especially for acquirers? Let’s dive in.

  1. Preserved Equity and Control: This is one of the most compelling reasons companies gravitate towards growth credit. With acquisitions, it’s crucial for acquirers to retain control and ownership, steering the direction of their newly-acquired asset. Growth credit ensures this by offering non-dilutive financing.
  2. Tailored Flexibility: Every acquisition is unique, and the financing behind it should mirror that. Platforms like Decathlon’s allow companies to design a repayment structure that complements their revenue model and growth trajectory.
  3. Cash Flow Sensitive: Traditional debt structures can sometimes be suffocating, especially during unpredictable revenue periods. With growth credit, and particularly Decathlon’s revenue-based structure, the loan repayment is aligned with the company’s long term growth plans.
  4. Accelerated Growth Potential: With immediate access to capital without the constraints or pressure of equity partnerships, businesses can quickly channel funds into immediate growth opportunities, post-acquisition.
  5. Competitive Edge: In the fast-paced world of acquisitions, having quick access to flexible financing can be the difference between securing a lucrative deal or missing out. Growth credit facilities often have quicker turnaround times than traditional routes.

In conclusion, as the business ecosystem evolves, so do the mechanisms that fuel its growth. Growth credit, with its inherent flexibility and alignment with business growth, stands out as an appealing option for acquirers. Whether you’re a business looking to expand through acquisition or an investor scouting the next big opportunity, growth credit lending platforms might just be the tool you’ve been searching for.

About Decathlon Capital Partners
Decathlon Capital Partners provides growth capital for companies that are seeking alternatives to traditional equity investment. Through the use of highly customized royalty-based growth credit solutions, Decathlon provides long-term growth capital without the dilution, loss of control and operational overhead that often comes with equity-based funding. With offices in Palo Alto and Park City, Decathlon is the largest revenue-based funding investor in the U.S. and is active across a wide range of sectors. Learn more at www.decathloncapital.com.

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DECATHLON INVESTMENT CRITERIA

 

    • Operating history of at least two years

    • Annual revenues between $4 million and $100 million

    • Annual growth rate of 10% or more

    • Attractive gross margins

    • Experienced management team

    • North America-based operations

    • Near-term visibility to cashflow-positive status