When raising capital, issuers often face a choice between three core structures: convertible debt, straight equity, and straight debt. Each has its own implications for ownership, repayment obligations, investor appetite, and long-term control. Choosing the wrong instrument can either dilute you too early, overburden you with fixed repayments, or fail to attract the right investors.
| Criteria | Convertible Debt | Straight Equity | Straight Debt |
|---|---|---|---|
| Repayment obligation | Repay if not converted; may include interest until conversion | No repayment—investors paid via dividends or capital gains | Full repayment of principal plus interest required |
| Equity dilution | Deferred dilution—occurs upon conversion event | Immediate dilution at the time of issuance | No dilution—ownership remains intact |
| Investor upside | Equity participation on conversion, plus interim yield | Unlimited upside from share price appreciation | Fixed return (interest), no equity upside |
| Risk to issuer | Conversion can be dilutive; repayment still possible if conversion doesn't occur | Loss of control depending on stake size and rights granted | Default risk if unable to service debt |
| Valuation timing | Often delayed until conversion—can be beneficial in early-stage growth | Valuation locked at time of issuance | Not directly impacted by company valuation |
| Common use cases | Bridging to next equity round, strategic financing, project finance with upside | Growth capital, acquisitions, balance sheet strengthening | Asset purchase financing, working capital, predictable cash flow businesses |
| Investor profile | Private credit funds, venture debt providers, crossover investors | Venture capital, private equity, strategic investors | Banks, institutional lenders, private credit funds |
Convertible debt works well when you expect a higher valuation in the near future but need capital now. It’s popular in bridge rounds, pre-IPO financing, and strategic capital raises that attract investors who want both yield and upside.
Straight equity is most suitable when you’re comfortable with immediate dilution and want to avoid fixed repayment obligations. It can be ideal for high-growth companies with no current profitability.
Straight debt makes sense for companies with stable cash flows who want to preserve ownership, but it can limit flexibility due to covenant requirements and repayment schedules.
At Financely Group, we arrange and place all three types of instruments for qualified issuers. Our job is to model outcomes under each scenario, source aligned investors, and execute the raise with clean documentation and efficient closing.
Need to decide between convertible debt, straight equity, and straight debt? We’ll map the trade-offs, model the impact, and bring you the right investors.
Request a Capital Structure ConsultationFinancely Group acts as an arranger and advisor for qualified issuers. We are not a lender, broker-dealer, or investment adviser. All capital raising services are conducted under applicable private placement exemptions and subject to KYC/AML, sanctions screening, legal review, and a signed engagement.
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.
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.
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestAccess non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestSecure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFinancely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce 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.
Financely advises growth-focused businesses on accessing capital by introducing their opportunities to professional investors. Financely is not a securities broker or dealer. Where appropriate, engagements are coordinated with regulated broker-dealers, investment banks, legal counsel, and other specialists.
Financely does not solicit, offer, or accept orders to buy or sell securities and makes no assurance regarding capital-raising outcomes.
Services are strictly business-to-business. Financely does not provide personal finance, consumer credit, or retail advisory services.
Advisory services are reserved for post-revenue companies that recognize the time and resources required for professional underwriting.
All mandates start with an RFQ. We review submissions, issue a brief Go/No-Go memo, and where bankable, release a Term Sheet that leads to funding. We arrange capital across Senior Secured, Unitranche, Second Lien/Mezzanine, Preferred Equity, and Gap Solutions. We do not process deals by email or chat.
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
Funding arranged for trade flows with instruments sized to your cycle and aligned to delivery and settlement.
Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
Limited or non-recourse structures for energy and infrastructure with lender-ready materials.
Funding solutions aligned to project cash flows with credible covenants and conditions to reach notice to proceed.
Advance the file to termable status. Submit the RFQ so we can underwrite and secure funding.
Debt and Preferred solutions anchored on cash flow, Quality of Earnings, and clear closing mechanics.
Funding across senior, unitranche, and preferred to match stable cash flows and acquisition timelines.
Get financed on workable terms for closing. Submit the RFQ to start underwriting.
Acquisition, development, bridge, and refinance with lender-ready packs and third-party reports managed.
Funding calibrated to DSCR, leverage, and tenancy with terms designed to close.
Move to a financeable package. Submit the RFQ to initiate underwriting for funding.
KYC and Source of Funds required. Engagements are best-efforts and subject to underwriting. Preference for operating companies with meaningful revenue. See our FAQ and Procedure.
Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagements may be carried out through Financely Group LLC, a non-deposit-taking, non-banking financial company; Ashford Capital Advisory LLC; or another related entity.
Financely and its affiliates are not registered as securities broker-dealers and do not execute securities transactions or hold client funds or securities. When a mandate involves the purchase or sale of securities and a registered intermediary is required, any orders are introduced to and executed by one or more independent U.S. broker-dealers registered with the SEC and FINRA. Those broker-dealers are solely responsible for trade execution, custody, and related regulatory obligations. Nothing in this material constitutes an offer, solicitation, or recommendation to buy or sell any security or to engage in any specific transaction. Before engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate, you are responsible for confirming that such engagement complies with your own legal, regulatory, tax, and other requirements. In the United States, certain advisory activities may be conducted in reliance on exemptions available under the Investment Advisers Act of 1940, including the “foreign private adviser” exemption where applicable. Our services and regulatory status may vary by jurisdiction and by transaction type.
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