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Institutional

Libertas’ Institutional Group was formed in March 2023 to provide larger and more customized RBFs to small and medium-sized businesses for funding amounts ranging from $500K- $10mm. With more than 80 years of combined financial and credit experience, our Institutional Team is led by Senior Managing Director Jeff Hudson and Managing Directors Tom Holleb and Karin Kovacic.

 

  • Founded in 2016, Libertas is a high-tech, high-touch commercial finance company with a focus on small and medium-sized businesses (SMBs).
  • Libertas provides qualified businesses with access to fast funding for their growth and acquisition capital needs.
  • Libertas has achieved unprecedented growth and scale since its launch by filling a void in traditional commercial bank lending.
  • Libertas’ Revenue-Based Funding (RBF) is a financing product that is non-dilutive and provides mezzanine-like financing rates without equity kickers or restrictive covenants.
  • Our quick-to-close financing capabilities enable SMBs to rapidly and decisively take advantage of tactical opportunities.
  • Libertas offers (i) a Revenue-Based Funding (RBF) product representing a purchase of future receipts with a maximum expected term commitment of up to 12 months and
    (ii) business loans* with terms ranging from 12-24 months.

*Business term loans issued by WebBank

Flexible Funding Uses

  • Project-Based Financing

  • Bridge/ Gap Financing

  • Partner Buyout

  • Growth Capital

  • Acquisition

  • Purchase Inventory/ Equipment

  • Capitalize on New Business Opportunities

How It Works

Revenue-Based Funding

  • Libertas is industry agnostic but focuses on established businesses with revenues and are experiencing growth.
  • Libertas provides RBFs based on revenues and cash flows. Institutional funding amounts typically range between $500k – $10mm.
  • RBFs are priced using factor rates instead of interest because our fundings are not loans. Factors typically range between 1.17 to 1.25 and are typically repaid over an estimated term of up to 12 months and can be customized to adjust remittance schedules to incorporate seasonality. Customers utilizing the RBF product may be eligible for steep prepayment discounts.
  • $1mm RBF pricing example with 1.2 factor up to 12 months with weekly remittances:
    • $1mm RBF pricing example with 1.2 factor with an estimated term of 12 months with weekly remittances:
      • Libertas provides the company with RBF funds of $1mm. The company has chosen to make remittances on a weekly basis (daily, bi-weekly and monthly remittances schedules are also available). The company makes remittances in the amount of $23,809.52 to Libertas starting one week after funding and every week thereafter until the balance of $1,200,000 is paid off. This example does not reflect any available prepayment discounts.
What To Expect

RBFs With Libertas

  • The Libertas RBF capital solution entails concise underwriting and an expedited funding process. Underwriter due diligence, contracts and the actual funding can generally be completed in 24-48 hours depending on customer needs.
  • To commence the RBF funding process, the following financial and ownership information is required:
    • Application
    • Prior year’s and year-to-date financial statements, as well as any relevant projections
    • Schedule of outstanding indebtedness
    • Last 4 months’ bank statements for operating accounts
    • Most recent tax return
    • Ownership Information

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What you need: prior year's and year-to-date financial statements as well as any relevant projections; outstanding indebtedness; last 4 months' bank statements for operating accounts, tax return, ownership information.

Examples of Previous Transactions

Industry: Technology

Use of Proceeds: Acquisition Financing
Funded Amount: $7.5mm funded by a combination of RBF and Term Loan
Deal Source: Middle Market Private Equity Firm
Deal Summary: PE firm wanted to complete an add-on acquisition for one of it’s portfolio companies. They could not use equity as it would violate their diversification requirements and used Libertas to fund the acquisition.

Industry: Manufacturing

Use of Proceeds: Growth Capital
Funded Amount: $3,250,000 RBF
Deal Source: Merchant Bank
Deal Summary: A company received large long-term contracts from a Fortune 100 company and required working capital to scale capacity at their plant. Libertas provided the initial financing to jumpstart the project, as well as provide additional capital mid-term when additional capital needs arose.

Industry: Food Processing

Use of Proceeds: Acquisition Financing
Funded Amount: $8.5mm RBF
Deal Source: Middle Market Investment Banker
Deal Summary: A large food processing company was waiting on guaranteed (but not yet provided) funding from another source for a fast-approaching closing. Libertas completed due diligence and funded the requested amount within one week. When the delayed capital from the other source was delivered to the company, Libertas’ funding was prepaid at a discount.

Meet the Institutional Team

  • Jeffery Hudson

    Senior Managing Director

  • Karin Kovacic

    Managing Director

  • Tom Holleb

    Managing Director

Get Started

Stop putting your success on hold and access the funding you need at the speed of business