How We See Borrowers
No two the same
At Mercatus, our purpose is to offer loans that fit borrowers’ varied needs so they can execute successfully on their plans.
At Mercatus, our purpose is to offer loans that fit borrowers’ varied needs so they can execute successfully on their plans.
Because Mercatus doesn’t face the constraints of a traditional financial institution, and because we maintain a nimble, responsive process, essentially anything can be customized in a time-efficient manner.
We do not expect business owners or management teams to know all the possible ways a loan could fit them best. That is our job as lending professionals, and it’s why we put in the work to understand borrowers’ challenges and recognize their potential.
Because Mercatus doesn’t face the constraints of a traditional financial institution, and because we maintain a nimble, responsive process, essentially anything can be customized in a time-efficient manner.
We do not expect business owners or management teams to know all the possible ways a loan could fit them best. That is our job as lending professionals, and it’s why we put in the work to understand borrowers’ challenges and recognize their potential.
Wrinkles are opportunities
Our unscientific way of describing the borrowers we serve is “businesses where there is a wrinkle.” That “wrinkle” could be, for example, a dip in earnings that is likely temporary, significant customer concentration (which scares off most typical lenders), or a contract opportunity requiring more working capital. It could be operational, marketing, regulatory, control-related, or financial.
Most lenders hate wrinkles. We welcome them because we are very good at funding intrinsically strong companies that have good plans to deal with those wrinkles.
We do what it takes to understand your business, your challenge, and your intentions. Then we work to come up with a lending proposal that is compelling for your priorities—whether creativity on terms, speed, timing, size of facility, or other—a proposal that delivers a “win-win” for borrower and lender.
Customization does not stop at the onset of a loan. Over the course of a loan, Mercatus is ready to respond dynamically to the changing needs and goals of the borrower.
In our view, only a lender committed to such thoughtful analysis and underwriting can recognize the real value of a borrower’s business and maximize that borrower’s flexibility and potential for funding.
That is how we see our borrowers.
Wrinkles are opportunities
Our unscientific way of describing the borrowers we serve is “businesses where there is a wrinkle.” That “wrinkle” could be, for example, a dip in earnings that is likely temporary, significant customer concentration (that scares off most typical lenders), or a contract opportunity requiring more working capital. It could be operational, marketing, regulatory, control-related, or financial.
Most lenders hate wrinkles. We welcome them because we are very good at funding intrinsically strong companies that have good plans to deal with them.
We do what it takes to understand your business, your challenge, and your intentions. Then we work to come up with a lending proposal that is compelling for your priorities-whether creativity on terms, speed, timing, size of facility, or other-a proposal that delivers a “win-win” for borrower and lender.
Customization does not stop at the onset of a loan. Over the course of a loan, Mercatus is ready to respond dynamically to the changing needs and goals of the borrower.
In our view, only a lender committed to such thoughtful analysis and underwriting can recognize the real value of a borrower’s business and maximize that borrower’s flexibility and potential for funding.
That is how we see our borrowers.
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“Because we work closely with our borrowers to understand their businesses, we are able to craft loan structures and terms that go beyond the typical risk/return frontier that most lenders are not able to achieve. We provide greater flexibility than most other lenders.”
Robert Kiesel
CEO, Mercatus Finance
Mercatus loans: One and done?
After an initial loan from Mercatus, it is not unusual for a borrower to draw on the relationship developed and the deep understanding of their business by Mercatus and return for an additional need. At that point, the process efficiencies for both parties can be even greater.
At the same time, we consider it a success when we lend only once or twice to a particular business and then never again, because that means they have achieved what they set out to do: accomplish a transition…add needed capacity or capabilities…grow significantly…increase customer diversification…or work through a period of stress to emerge stronger. At that point, many Mercatus borrowers needing additional capital can go to the market for less-customized, lower-cost funding—the kind of funding often provided by more-typical institutions.
In all our dealings, Mercatus values authenticity and forthrightness. For middle-market companies, there are times when funding from a bank or similar institution is the wiser choice for the borrower.
Our commitment to Mercatus clients: Until your business reaches the point where it has a choice of traditional lenders, we will underwrite with great thoughtfulness and tailor loans for you that let you take full advantage of the strengths and potential that your business has right now.
Mercatus loans: One and done?
After an initial loan from Mercatus, it is not unusual for a borrower to draw on the relationship developed and the deep understanding of their business by Mercatus and return for an additional need. At that point, the process efficiencies for both parties can be even greater.
At the same time, we consider it a success when we lend only once or twice to a particular business and then never again, because that means they have achieved what they set out to do: accomplish a transition…add needed capacity or capabilities…grow significantly…increase customer diversification…or work through a period of stress to emerge stronger. At that point, many Mercatus borrowers needing additional capital can go to the market for less-customized, lower-cost funding-the kind of funding often provided by more typical institutions.
In all our dealings, Mercatus values authenticity and forthrightness. For middle-market companies, there are times when funding from a bank or similar institution is the wiser choice for the borrower.
Our commitment to Mercatus customers: Until your business reaches the point where it has that choice, we will underwrite with great thoughtfulness and tailor loans for you that let you take full advantage of the strengths and potential that your business has right now.
Read more
“When a previous Mercatus customer can subsequently get lower-cost capital, that’s success. That means that they were able to execute. They did what they said they were going to do. That’s a good outcome.”
Daniel Wise
Director, Mercatus Finance
