Cross-Border Private Credit: Financing Global Deals when Local Banks Can’t
Companies expanding internationally often hit a funding ceiling when local banks impose jurisdictional limits or conservative risk measures. Cross-border private credit
bridges this gap by tapping a global lender network and structured asset-based lending facilities that move beyond domestic balance sheet constraints. This guide explains how structured private credit solutions streamline capital access for multinational acquisitions, project roll-outs, and strategic investments.
Why Local Banks Fall Short
Local commercial banks typically restrict exposures to clients domiciled in their own country or region, citing regulatory capital requirements and limited correspondent arrangements. When a U.S. firm acquires an asset in Europe, for example, its domestic bank may refuse to extend new credit unless it secures pledges in euro from domestic collateral. These constraints slow cross-border M&A, delay project finance drawdowns, and leave working capital stranded in one jurisdiction while obligations mount in another.
How Cross-Border Private Credit Works
Proprietary Underwriting and Due Diligence
At Financely, our proprietary underwriting integrates local market intelligence, multi-currency stress testing, and legal opinions in each target jurisdiction. Credit teams analyze sponsor track record, offtake agreements, cash-flow waterfalls and collateral enforceability from London to Singapore. We deliver an independent, bespoke credit memo in 10–14 days, reducing uncertainty for both borrower and private credit investors.
Flexible Structuring and Collateral Packages
Whether it’s asset-based lending
against receivables, pledge of project accounts or security over real estate and corporate shares, our structures adapt to cross-border legal regimes. Typical facilities include senior secured term loans, unitranche bridges and mezzanine tranches. Collateral is perfected via local notarization and UCC-style filings or equivalent security deeds, granting foreign lenders first-priority rights across multiple jurisdictions.
Distribution through a Global Lender Network
Once underwriting is complete, Financely syndicates the facility to over 180 private credit funds, family offices and non-bank institutions across North America, Europe, Middle East and Asia. Our digital platform matches borrower requirements—currency, tenor, covenant flexibility—with investor mandates, closing transactions in as little as 3–6 weeks from mandate.
Key Benefits and Use Cases
- Rapid Deployment:
Turnkey solutions deploy capital often in under 45 days, far faster than syndicated bank facilities.
- Currency Agnostic:
Borrow in USD, EUR, GBP or local currency; hedges can be embedded or unbundled to match corporate treasury policies.
- Broad Collateral Scope:
Leverage inventory, receivables, contract rights or real estate—maximizing borrowing base.
- Jurisdictional Reach:
Finance deals in emerging markets or developed economies where local credit is scarce or costly.
Steps to Secure Cross-Border Private Credit
- Initial Assessment:
Submit executive summary and financials; receive term sheet within 5 business days.
- Underwriting & Legal:
Deliver detailed due diligence; negotiate structure and security package.
- Investor Pitch:
Financely markets the structured facility to our syndicate; investor indications come in 7–10 days.
- Documentation & Draw:
Finalize loan documents, perfect cross-border security, and draw funds on schedule.
Financely’s full-scope underwriting and distribution platform delivers cross-border private credit from $5 million to $250 million, leveraging specialty asset-based lending, bespoke mezzanine structures and global investor mandates. Submit your transaction now to access curated capital solutions with transparent fees and rapid execution.
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