Business Loans To Repay Investors

Investor Buyout Loans — Shareholder Redemption and Recapitalization

Investor Buyout Loans

Replace investor capital with debt and clean up the cap table. This is also called a shareholder redemption loan, investor buyout financing, or a recapitalization. We underwrite, structure, and place facilities to repay early angels, redeem minority holders, refinance convertibles or SAFEs, and consolidate ownership without stalling growth.

Snapshot: Senior or unitranche for profitable companies, mezzanine or holdco PIK for stretched cases. 12–60 month tenors. Interest-only periods with cash-pay or PIK toggles. Security over shares and assets. Use of proceeds limited to lawful redemptions and debt refis. Typical execution 5–9 weeks once documents and payment clear.

When a redemption loan makes sense

Buying out early investors
Angels or seed funds want liquidity. Company has stable EBITDA and clear debt capacity.
Replacing expensive notes
Convertibles, SAFEs, or mezzanine with high coupons refinanced into cheaper term debt.
Cleaning the cap table
Remove inactive shareholders or settle disputes via a structured redemption.
Preparing for a sale
Simplify ownership and improve control before a strategic sale or larger refinancing.

What you get

Underwriting
Credit memo, sources and uses, covenant model, DSCR sensitivities, legal feasibility of redemption.
Legal support
Term sheet comments, intercreditor, corporate approvals, solvency reps, and closing checklist.
Lender distribution
Targeted private credit funds and lenders that actively finance redemptions and recapitalizations.
Negotiation
Support through LOI, term sheet, and final docs so the deal closes on time.
Closing management
Workstreams with lender counsel, company counsel, and shareholder counsel to funds release.
Reporting
Portal with lender list, status, feedback, covenant tracker, and next actions.

Capital options we arrange

Senior term loan Best for strong cash flow and asset coverage. 24–60 months, amortizing after interest-only period.
Unitranche Single tranche replacing senior + mezzanine. Cleaner docs and faster execution for $5–$50M use of proceeds.
Mezzanine Subordinated with warrants or OID when leverage is tight. 36–60 months, light amortization.
Holdco PIK Payment-in-kind at holding company to avoid cash strain at opco during transition.

Core terms lenders expect

Tenor 12–60 months depending on leverage and collateral
Repayment Interest-only period, then amortization or bullet; PIK at holdco if needed
Security Share pledge, all-assets lien, IP where material, guarantees as required
Perfection UCC-1 or local charge filings, share charge, control agreements, insurance endorsements
Covenants Min liquidity, leverage and interest coverage, monthly reporting, no leakage without consent
Use of proceeds Lawful shareholder redemptions, investor note repayments, and transaction fees
Conditions precedent Board and shareholder approvals, legal opinions, solvency certificate, lien searches, escrow

How it works

  1. Intake: Submit your form with cap table, redemption plan, structure, security, and timeline.
  2. KYC: Sponsor and borrower screening. Invoice issued after preliminary clearance.
  3. Underwriting: First-pass memo in 7–10 business days after full docs and cleared payment.
  4. Distribution: Targeted send to lenders that fund redemptions at your size and jurisdiction.
  5. Closing: Term sheet to funds release with legal workstreams and escrow management.

Documentation checklist

Item Details
Cap table and approvals Current cap table, board minutes, shareholder consents, redemption agreements
Financials and QoE 3 years historical, TTM, QoE or reviewed statements, 24-month projections
Model and S&U Integrated model, sources and uses, fees, cash buffers, covenant headroom
Legal and liens Lien searches, pending litigation, IP schedule, major contracts
Security package Assets, IP, guarantees, insurance binders, intercreditor if any
KYC Sponsor identity, source of funds, sanctions screens

Service tiers

Starter
Deal size Up to $5,000,000
Included Analyst and legal counsel, underwriting, lender distribution, closing checklist
Onboarding fee $22,500
Closing fee 2.0% of funded amount
Growth Most selected
Deal size $5,000,001 to $20,000,000
Included Priority distribution, advanced structuring, lender calls, term sheet negotiation support
Onboarding fee $45,000
Closing fee 2.5% of funded amount
Enterprise
Deal size $20,000,001 to $100,000,000+
Included Senior partner oversight, full-time analyst, dedicated legal counsel, PR on request
Onboarding fee $90,000
Closing fee 3.0% of funded amount

Scope and limits

Item Details
Underwriting SLA First pass in 7–10 business days after full documents and cleared payment
Legal support Up to 10 hours per deal to term sheet. Extra hours at $350 per hour
Distribution Targeted lenders matched by sector, jurisdiction, and size
Eligibility Post-revenue preferred, positive unit economics, clear debt service and lawful redemption authority
Refunds Fees are non-refundable once underwriting begins
Not a fit No cash flow for DSCR, unresolved shareholder disputes, missing approvals, or unlawful distributions

Example structures

Angel redemption
$4.0M senior term loan, 48 months. 6 months interest-only then 20-year style amortization. Use of proceeds: redeem seed investors and refinance notes.
Minority buyout
$12.5M unitranche, 36 months, cash-pay coupon with PIK toggle. Share pledge and all-assets lien. Board and shareholder consents at close.
Holdco recap
$22M holdco PIK note, 48 months. No cash drain at opco during integration. Take-out via larger refinance after next phase growth.

Start your onboarding

Submit your intake form. After KYC, your invoice will be issued. Underwriting starts when payment clears.

Submit Intake Form

Financely is not a lender and does not guarantee funding or bank instruments. All mandates are best efforts and subject to underwriting and compliance. Payments must only be made to bank details shown on your official invoice. Beware of unsolicited offers through unofficial channels.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.


All submissions are promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.

Express Application Submit Your Deal
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Request a Proposal / Submit a Deal

Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.

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Once we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.

Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.

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If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.