Access to Capital Markets through Initial Public Offerings (IPO) and Corporate Finance Solutions for small and medium-sized companies (SME).
At Metrocore we have established a range of solutions to solve challenges in the arena of SME aviation sector finance. Tailored to the needs of SMEs, we facilitate the raising of capital and provide access to investors and corporate finance solutions.
The entrepreneurs’ and shareholder dilemma;
While large and established firms find it relatively easy to raise finance, entrepreneurs and owners of small and medium-sized firms find it more difficult to raise funds or finance their activities. Moreover, a major problem with obtaining equity finance can be the inability of the smaller firms to offer an easy exit route for any investor who wishes to sell their stock. In addition; many entrepreneurs worked for many years, often decades, to build their companies and find it difficult or even impossible to extract money from their business, without going for a full trade sale.
When it comes to debt finance; in general, banks and other financial institutions tend to ask for personal guarantees from owners of small businesses and will set interest rates at higher levels than those charged to large companies with long track records and substantial assets.
An entangled position is used to describe a situation where banks are unwilling to increase credit facility without a corresponding increment in security (collateral) from the part of the small business that in turn may be unwilling or unable to make such an increment. Some banks even require that the owners’ equity in the business be increased before further credit line be given.
It is particularly difficult for small companies to obtain medium-term loans due to a mismatching of the maturity of assets and liabilities. Longer term loans are easier to obtain than the medium and short-term loans. The reason is that longer-term loans are secured with mortgages against property. This is known as the Maturity gap.
We have established a range of corporate finance solutions to address these challenges effectively.