Cash Flow Loans - growth financing without giving up control

When your business earnings tell the story, BDC Capital provides term loans from $500,000 to $10 million based on your cash flow and debt service capacity—not just collateral.

company INTRODUCTION

At BDC Capital, we recognize that strong business performance isn't always reflected in hard assets. Our cash flow loans provide flexible financing based on your company's earnings and ability to service debt, making capital accessible for service businesses, asset-light companies, and high-performing operations that traditional lenders undervalue. Since 1953, we've structured cash flow-based term loans that support growth, acquisitions, working capital needs, and debt consolidation for businesses throughout New England with proven operational success and strong management teams.

WHY BDC CAPITAL

More than Just Traditional Lending

Ideal for Family Businesses

Not every successful business owns buildings and equipment. If your value is in people, intellectual property, customer relationships, or technology, our cash flow loans recognize and finance that reality.

Acquisition Financing

When acquiring competitors or complementary businesses, cash flow loans provide the capital based on combined earnings power and synergies—not just the target company's collateral value.

Our process for financing success

Frequently asked questions

What loan amounts does BDC Capital provide for cash flow loans?

We provide cash flow-based term loans ranging from $500,000 to $10 million for qualified businesses throughout New England. Loan size is determined primarily by your cash flow generation, debt service coverage capacity, and overall business performance rather than strict collateral limitations.

How do cash flow loans differ from asset-based lending?

Asset-based lending relies primarily on accounts receivable and inventory as collateral with daily monitoring. Cash flow loans are underwritten based on your business's EBITDA, cash generation, and ability to service debt over time. Cash flow loans are ideal for service businesses and companies where value lies in operations, not hard assets.

What financial metrics does BDC Capital evaluate for cash flow loans?

We analyze historical and projected EBITDA, debt service coverage ratios, revenue trends, profit margins, working capital management, and overall cash generation patterns. We look for consistent performance, strong management, and sustainable business models that support debt repayment.

Can cash flow loans be used for business acquisitions?

Absolutely. Cash flow loans are excellent for acquisition financing when the combined entity's earnings support debt service. We evaluate pro forma cash flows, integration plans, and synergy potential—not just the target company's asset base—making acquisitions more achievable.

What types of businesses are ideal candidates for cash flow loans?

Professional services firms, technology companies, consulting businesses, healthcare practices, marketing agencies, distribution companies, and other service-oriented or asset-light businesses with strong EBITDA and management teams are ideal candidates. Any business with performance exceeding its collateral value benefits from cash flow lending.

Do cash flow loans require personal guarantees?

Personal guarantee requirements depend on business structure, ownership concentration, and overall credit profile. We evaluate each situation individually, balancing business cash flow strength against guarantee requirements. Our goal is structuring sustainable financing, not maximizing guarantees.

Get the financing your business performance deserves

Partner with lenders who understand cash flow, not just collateral

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