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Our Advantage

Closely-held companies and family businesses may be reluctant to pursue debt financing due to concerns over loss of ownership or control of the business. Dreyfus Corporation structures debt financing to alleviate these concerns. Where the circumstances are appropriate, our consultants will demonstrate the advantages of debt financing over equity financing options, such as taking on an ownership investor for a developing business. The right partner-lender will participate in the business management to facilitate the strongest possible operations and returns, but will otherwise leave the ownership and control to existing management.

Our consultants can also develop debt financing options that allow principal and the interest payments on business loans to be recorded as business expenses. We do not offer tax advice and we make no specific representations regarding this deductibility, but in certain instances, those expenses may be fully deductible from business income taxes.

Dreyfus Corporation offers other debt financing advantages for a growing business:

Simplified budgeting and more definitive planning

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Our debt financing services allow our clients to budget and plan for the cost of a loan. The client always knows the exact principal balance, loan payments and due dates, and interest rates. These are typically hard fixed costs that are easily forecasted and recorded.

Reduction of uncertainty

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Equity financing imposes several orders of magnitude of uncertainty on a growing business. Our debt advisory services help clients to reduce that uncertainty and to achieve stronger and more definitive operating projections.

Higher returns over costs

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A business might pay returns of 15% or more through profits and dividend distributions to equity investors. Comparable costs in a debt financing solution created by a Dreyfus Corporation debt financing advisor will often be less than 10%

Improved flexibility to achieve growth and expansion

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Our debt financing advisors start each engagement by gaining a thorough understanding of the client’s goals. Those goals then inform the debt financing solution such that the correct debt structure is the tool that paves the path to achieve those goals.

Contingency planning with debt financing

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Uncertain economic conditions and economic threats can derail even the strongest business that is experiencing a high-growth phase. Dreyfus Corporation frequently recommends that a client consider debt financing during these periods of strong financial performance, which are the best times to build a relationship with the right financial services firm. With an established relationship, the business can then enjoy easy access to debt capital during downward phases in a business cycle.

Creation of business credit

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Enterprises that establish a trustworthy record of debt repayment will have greater access to debt and equity capital during future financings. Dreyfus Corporation assists in the creation and development of business credit through debt financings that are reported and analyzed by the proper ratings services.
Dreyfus Corporation is a direct provider of certain specific services. Dreyfus Corporation reserves the right to refer inquiries for some services to third parties that are licensed or registered to provide those services where licensing or registration may be required by the laws of the applicable jurisdictions in which those services are offered. Dreyfus Corporation provides its services fully in accordance with applicable laws, rules, and regulations of all jurisdictions in which it conducts business or otherwise engages in transactions with contracting counterparts, either directly to the extent that an obligation, exemption, or exclusion for licensure applies, or otherwise through third-party licensees.