Close the Funding Gap When the Bank Offer Falls Short

You already know what the extra capital would let you do. The question is what it will cost you in control, cash flow, and risk.

Maybe the acquisition is the right move, but the bank will only fund part of the purchase price. Maybe new equipment would raise output, yet paying for it would strip the cash you need for payroll and suppliers. Maybe a property project is ready, but the conventional facility leaves a gap.

You could put in more of your own money, borrow elsewhere, bring in a partner, or scale the plan down. Each choice changes your repayments, your ownership, your flexibility, or the cushion that keeps the business steady.

AltFunds Global starts with that funding gap, not with a product. We help you test whether a credit-linked note financing route solves a real access problem better than simpler alternatives. We coordinate with the asset-management firm and the specialists who handle the transaction. Independent counterparties make the funding decisions. We do not lend, hold client funds, or guarantee a result.

What is a credit-linked note, in plain English?

Think of a CLN as a shipping container built around a business loan.

The container gives eligible capital providers a security they may be able to hold through an accepting broker or custodian. Several buyers can participate through the same structure.

The container does not improve weak cargo. Your business still needs a credible plan to repay.

In the borrower-funding route considered here:

• Eligible buyers purchase newly issued notes.
• A separate issuer lends the settled proceeds to your business, after agreed deductions and closing checks.
• Your business repays its loan under its own agreement.

The notes and the business loan are separate, connected contracts. A loss suffered by noteholders does not automatically cancel what your company owes.

Where do the investors come from?

The notes do not sell themselves. Someone has to reach eligible professional buyers, present the opportunity under the agreed rules, and handle the process through subscription, payment, and settlement.

In the route considered here, that work is done by the authorised distribution parties named in your proposal, not by AltFunds Global. We coordinate the overall financing route with the asset-management firm and the specialists. We do not solicit investors or distribute the notes ourselves.

The distribution plan can use one or more of these channels:

Exchange or market access

Where the chosen route lets eligible buyers see and access the notes through their normal channels.

The arranging bank or an authorised distribution team

Approaches suitable professional capital providers.

Your own eligible capital contacts

Introduced into the approved process with authorised materials so they can review and decide under the same rules.

These channels create the opportunity for buyers to learn about the notes. They do not guarantee that anyone will subscribe, pay, or settle. Interest or indications are not funding. Only completed subscription, payment, and settlement put usable proceeds in position for the business loan.

Choose the financing that fits the business you want to keep.

Borrowing is like renting a delivery truck. It helps you move, but the payments continue when business slows.

Selling ownership is like bringing in a part-owner of the delivery company. They share upside and downside, and they may want a say in direction.

“Investment” can mean buying shares, lending money, or purchasing a note. Always ask what the capital provider receives in exchange.

Private credit and CLNs can overlap. Private credit describes a capital source. A credit-linked note describes a structure through which capital can participate.

Start with what the money needs to do.

A CLN borrower review may be relevant when you need to:

• Acquire a competitor or an established operating business.
• Add equipment, capacity, or production facilities.
• Acquire, complete, or refinance a supported commercial property project.
• Finance infrastructure or energy projects that have documented rights, approvals, and repayment support.
• Fund an established technology or services business with dependable cash generation.
• Acquire or upgrade operating assets in transport and logistics.
• Fund an acquisition, renovation, or supported expansion in hospitality.

These are examples of business needs, not approved sectors or promises of eligibility.

A project that has not started earning income still needs a credible source of cash to carry its obligations until income begins.

Most people in this market either sell a structure or make an introduction. We start one step earlier.

We open with the funding gap itself. How much usable cash is actually required? What must it pay for? What happens to operating cash, existing debt, and the final principal balance if the raise is incomplete or delayed?

Only after that do we test whether a credit-linked note route solves a real access problem better than a direct loan, seller financing, or an equity contribution. If a simpler path works, we say so.

We keep responsibilities explicit. Your proposal should name who handles issuance, buyer access, administration, settlement, and the business loan. We map those parties so you know who is accountable at each stage, including who is responsible for reaching eligible investors.

We surface stop costs before you authorise paid work. Interest is not funding. A conditional indication is not cash. You should know the maximum you could still owe if a stage ends without money.

The bank offers US$8 million. The purchase price is US$20 million.

Imagine you own a manufacturing business and want to acquire a competitor.

The bank portion leaves US$12 million of the purchase price still to fund. Legal costs, integration expenses, and operating cash still need their own sources.

You consider a CLN-funded loan for the remaining requirement. Before proceeding, three questions matter.

Will enough cash arrive?

A US$12 million gross raise does not necessarily give you US$12 million to spend.

If US$400,000 were retained for agreed deductions and reserves, usable proceeds would be US$11.6 million. You would still be short of the purchase price.

Net proceeds are like take-home pay. They are what remains after deductions.

The US$400,000 figure is fictional and is not programme pricing.

Can the business afford all its debts?

Suppose the combined business has US$2.4 million a year available for debt payments after operating needs, taxes, and necessary investment.

If scheduled payments across all loans total US$1.8 million, US$600,000 remains.

If available cash falls by 30%, it drops to US$1.68 million. The business would face a US$120,000 payment shortfall.

That is why the review must look beyond the growth forecast.

What repays the final balance?

A loan may leave a large principal balance due at maturity. Regular interest payments do not necessarily reduce that balance.

The final repayment needs a credible source. A hoped-for refinancing is different from a committed replacement facility.

This story is a planning example, not a completed AltFunds Global financing or an offer.

A funding gap opens the conversation. A repayment case supports the review.

Your business may deserve a closer look when you can explain:

• The borrower’s legal identity and authority to enter the transaction.
• The amount and currency of usable cash required.
• What the money will pay for.
• Your contribution and other available funding.
• Existing debts, security, and lender restrictions.
• How regular payments and the final balance would be repaid.
• The desired closing date and a backup plan.
• How authorised transaction costs would be covered.

AltFunds Global’s general financing intake floor is US$1 million. That is a screening floor, not a CLN provider minimum or proof that a credit-linked note is economical at that size.

Another route may be more suitable if you need guaranteed emergency cash, cannot support additional debt, or have an idea without a documented repayment source.

Understand the route before authorising the work.

Bring records that explain the business behind the request.

Depending on the transaction, the review may require:

• Company formation and ownership records.
• Recent financial statements and management accounts.
• A complete funding budget showing sources and uses.
• Existing debt schedules and security details.
• Cash-flow forecasts, including a weaker-business scenario.
• Purchase agreements, customer contracts, or relevant project documents.
• Asset ownership records and current valuations where applicable.
• Evidence of available contributions and other financing.
• Identity and compliance documents through the agreed secure process.

An appraisal is not cash. Revenue is not the amount available to repay debt. A document upload is not authentication.

Know who receives the money and what happens if funding stops.

The asset-management firm handling the CLN receives the programme fees. That firm pays AltFunds Global under its agreed compensation arrangement when funding arrives.

Your written proposal identifies:

• The contracting parties and fee recipients.
• The work covered by each charge.
• Payments due before funding and at closing.
• Whether deductions are taken from proceeds.
• Loan interest and ongoing costs.
• Cancellation terms and any refund rights.
• Costs that may remain payable if the raise does not complete.

AFG’s funding-linked compensation does not mean every other party works only on success.

A target needs a starting point and a defined milestone.

AltFunds Global’s current CLN planning target is 3–4 weeks.

Your written proposal confirms what that period covers, when the clock starts, and the requirements for your transaction. Buyer participation, documentation, and settlement affect the actual release date.

An uncommitted raise cannot guarantee cash by a fixed purchase deadline.

Bring the date that matters to your business so the review can address dependencies and a backup plan early.

Important information: This page explains a borrower-financing route. It is not an offer to purchase securities. Financing depends on the accepted credit case, permitted buyer participation, settlement, and signed agreements. AltFunds Global does not hold client funds or guarantee financing. Illustrative examples are not completed transactions. Your business remains responsible for its loan obligations.