Equity recaps may be the answer for some customers

Description

Abstract: It may be impossible to extend a loan to every customer, but neither is it desirable to turn that client away without a solid suggestion for securing financing. Suggesting a private equity recapitalization is a possible solution. This article explains how an equity recap uses a private equity group (PEG) to provide financing, and what the group expects in return. The article offers a hypothetical example of the recap process.