Neptune Partners writes in Affärsvärlden about debt financing opportunities

Increased opportunities for debt financing in a complex market

More and more debt providers want to lend money to Swedish companies. With the help of an experienced debt advisor, companies can get the best possible loan terms.

Greatly increased range of debt options
When capital becomes more expensive, the commercial banks reduce their exposures and the bond market is passive, companies need to find new ways to finance their capital needs.

– In recent years, we have seen more and more new lenders and debt options that fill previous gaps in the debt market, says Jonas Olsson, Partner at Neptune Partners. We see how the debt market in the Nordics continues to mature and resemble the ones that has long existed in, for example, Germany and Great Britain, where lenders can offer more tailored debt.

We also see a trend where foreign lenders, both European and American, are showing an increasing interest in companies in the Nordics.

These hundreds of new lenders are above all so-called niche banks (also known as challenger banks) and debt funds. The players are now gaining ground partly in the former commercial banks’ market, but also in relation to the bond market and with companies that have traditionally been directed to equity capital.

Loans for most purposes
Today, there are specialized lenders for most types of debt such as venture loans, revenue-based loans, acquisition loans, bridge loans and more traditional credit facilities. Loan terms vary significantly depending on lender and borrower. The loans are tailored according to conditions and preferences; for example low interest, long maturity, minimal or no amortization or flexibility regarding financial covenants and collateral.

– The increased number of lenders means better opportunities for companies to obtain attractive financing, says Viktor Olsson, Partner at Neptune Partners. At the same time, more thorough work is required than before, as previous discussions could have been limited to the house bank.

An experienced debt advisor adds great value in these situations and is in many cases decisive in getting the debt financing in place, which Neptune Partners has repeatedly experienced since its inception in the fall of 2021.

Neptune Partners and Debt Advisory
Neptune Partners is an independent debt advisor with good relations with the absolute majority of the Nordic lenders, as well as a large number of debt funds in Europe and the USA. With legal and financial expertise, we specialize in structuring and negotiating loan terms and associated documentation to achieve best possible debt financing for our customers.

Neptune Partners works with all types of debt financing and thoroughly analyzes the customer’s options for various loans and which lenders are relevant for the specific company and its needs. We always represent the borrower and are independent in relation to the lenders. We drive the transaction from the initial discussion with the borrower to a signed loan agreement with the lender and we also support in subsequent discussions.

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