Jeffrey Sweeney’s Article “Why Is Asset-Based Lending So Expensive” Published in ABF Journal

Jeffrey Sweeney’s Article “Why Is Asset-Based Lending So Expensive”
Published in ABF Journal
Chairman and CEO of USCapital Partners compares cost structures for asset-based loans and
commercial bank loans, and explains how specialty finance companies may be able to greatly
reduce their cost of capital.
San Francisco, CA, USA., November 24, 2017 -- ABF Journal, a leading trade journal for the
asset-based lending (ABL) community, has published an article by Jeffrey Sweeney, Chairman and
CEO at US Capital Partners Inc., in its November/December 2017 issue.
Entitled “Why Is Asset-Based Lending So Expensive? Comparing Cost Structures for ABL and C&I
Loans,” Sweeney’s article explains why ABL loans are more expensive than commercial and
industrial loans. Sweeney also highlights how specialty lenders can secure the greatest reduction in
their costs, while tapping new sources of private capital.
“There is a common belief, especially among business borrowers, private equity funds and M&A
sponsors, that inefficiencies leading to predatory pricing exist in the small-cap and lower middle
market business lending space,” Sweeney explains. “That assumption may be incorrect because the
ABL cost structure is very different in comparison to inexpensive bank lending. By utilizing a new,
more optimized funding structure, ABL firms may be able to greatly reduce their cost of capital in
order to compete with highly levered, low-cost financing provided by commercial and industrial
loans.”
Sweeney is an investment banker and fund manager with years of experience in direct lending and
corporate finance for small to lower middle market businesses. Headquartered in San Francisco, his
firm US Capital Partners Inc. is a full-service private financial group that specializes in making
traditional middle market banking products and services available to the lower middle market.
After setting out strategies to reduce ABL costs, Sweeney concludes, “Specialty finance companies
may find it helpful to evaluate new, optimized fund structures to reshape their own balance sheet
capital structures. Making use of a private investment fund structure and innovative capital raise
solutions allows specialty finance companies to give a greater number of investors access to their
asset class, potentially driving down the costs of capital.”
About US Capital Partners:
Since 1998, US Capital Partners Inc. has been committed to providing small and lower middle
market businesses and investors with sophisticated debt, equity, and investment opportunities
usually available only to larger middle market companies and institutional investors. The firm
manages direct investment funds and provides wealth management and capital raise services.
Operating with its registered investment bank affiliate, US Capital Global Securities, LLC, the firm
acts as a licensed placement agent for companies, funds, and projects, and collaborates closely with
its peers in professional banking and investment advisory.
To learn more, email Jeffrey Sweeney, Chairman and CEO, at jsweeney@uscapitalpartners.net or
call (415) 889-1010.
Contact:
Vanessa Guajardo
US Capital Partners
555 Montgomery Street, Suite 1501
San Francisco, CA 94111

415-889-1010
media@uscapitalpartners.net
http://www.uscapitalpartners.net