Debt & Trade Capital

DEBT & TRADE FINANCE CAPITAL

Principal Equity specialises in Debt Finance Facilitation, connecting African companies with international banks, finance agencies, and lenders to meet diverse needs such as acquisition, growth, and operational requirements.

With expertise in debt structuring and cash flow management, we provide comprehensive asset and liability management consultation services.

Additionally, we play a pivotal role in debt management, ensuring optimal capital structures for sustained growth.

Beyond that, our commitment extends to collaborating with African and international trade finance agencies and companies to furnish essential trade finance, supporting operational requirements for African enterprises.

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Principal Equity Partners

Corporate Advisory & Capital

Raising

SERVICES

Debt Structuring and Restructuring: Designing and modifying debt arrangements to align with financial goals, optimizing terms, and ensuring repayment feasibility.
Credit Risk Assessment: Evaluating the creditworthiness of individuals or businesses to determine the level of risk associated with extending credit, aiding in sound decision-making.
Trade Finance Advisory: Providing guidance on financial instruments and services that facilitate international trade, optimizing payment mechanisms and reducing transaction risks.
Letter of Credit Facilitation: Assisting in the issuance and management of letters of credit, providing financial security in trade transactions by ensuring payment upon fulfillment of specified conditions.
Term Sheet Preparation: Drafting preliminary agreements outlining key terms and conditions for a potential financial transaction, facilitating negotiations and formalizing intentions.
Debt Portfolio Optimization: Strategically managing and adjusting a collection of debts to enhance overall portfolio performance, balancing risk and return.
Debt Sourcing and Placement: Identifying suitable sources of debt financing and negotiating terms for placement, ensuring optimal funding structures for projects or businesses.
Interest Rate Negotiation and Management: Negotiating favorable interest rates on loans and effectively managing interest rate risk to optimize overall financial costs.
Working Capital Optimization: Enhancing the efficiency of a company's working capital, ensuring that current assets and liabilities are managed to maximize operational liquidity.
Cross-Border Financing Solutions: Providing financial strategies and structures that facilitate transactions and investments across international borders, addressing regulatory complexities and currency risks.

TYPES OF FUNDING

Revolving Credit Lines: Flexible credit arrangements that allow borrowers to access funds up to a predetermined limit, repay, and re-borrow as needed, providing ongoing financial flexibility.
Term Loans: Fixed-sum loans with a specified repayment schedule, typically used for long-term investments or capital expenditures, providing stability in interest rates and repayment terms.
Trade Credit: Short-term credit extended by suppliers to buyers, allowing the purchaser to defer payment for goods or services received, enhancing cash flow management.
Factoring: Selling accounts receivable to a third party (factor) at a discount, providing immediate cash flow and transferring the credit risk of delayed payments.
Letters of Credit: Financial instruments issued by banks to guarantee a buyer's payment to a seller, reducing the risk for both parties in international trade transactions.
Syndicated Loans: Loans provided by a group of lenders working together, sharing the risk and financial commitment in financing large-scale projects or acquisitions.
Mezzanine Financing: Hybrid financing combining debt and equity, where lenders receive equity or equity-like instruments as well as interest, offering companies additional capital with higher returns.
Asset-Based Lending: Providing loans secured by a company's assets, such as accounts receivable, inventory, or equipment, offering flexibility based on the value of collateral.
Invoice Financing: Using unpaid invoices as collateral to secure a loan, enabling businesses to access cash tied up in receivables before customers make payments.
Supply Chain Financing: Facilitating the financing of a company's supply chain by providing short-term credit to suppliers or buyers, optimizing cash flow and strengthening relationships within the supply chain.