Alternative structure · Debt
Fund the platform with a facility that repays itself from every sale.
An asset-backed facility secured by purchase contracts. All sales pass through a controlled account; a fixed slice is trapped to pay interest and amortize principal. Revenue is the memo's base case.
01 · Simulator
Does the sweep retire the debt inside five years?
Move the sweep between 5% and 10% of sales and watch amortization, balloon risk and lender yield respond. Gap years in revenue are interpolated from the memo.
Split of the sweep between interest and principal shown for the first quarter of the facility. As the balance amortizes, more of each swept dollar goes to principal.
- Total drawn
- $1.80M
- Peak balance
- $1.81M
- Interest paid
- $720k
- Total swept
- $1.93M
- Lender IRR
- 11.3%
- Lender MOIC
- 1.41×
Contracted sales alone (70% of revenue) leave a $1.30M balloon — repayment partly depends on uncontracted spot sales.
In 2027 the sweep ($221k) is 127% of EBITDA. Debt service comes out of working capital during the build-out, so the facility competes with the trading book for cash.
In 2 quarters the sweep doesn't cover interest, so $12k is capitalized onto the balance.
02 · Indicative terms
How the structure is wired.
- Instrument
- Senior secured, asset-backed term facility
- Collateral
- Assigned purchase contracts, receivables and inventory
- Cash control
- 100% of sales paid into a lender-controlled collection account
- Repayment
- Fixed 5–10% of every collection, interest first, then principal
- Pricing
- 10% p.a. on outstanding balance, accrued quarterly
- Tenor
- 5 years; any residual balance due at maturity
Guarantee quality is the whole credit
The facility is only as “guaranteed” as the buyers behind the contracts. Underwrite buyer credit, contract enforceability across jurisdictions, and concentration in the top five offtakers.
Sweep competes with working capital
Trading earns ~8.6% contribution. Sweeping 5–10% of gross sales off the top in 2027–28 can exceed EBITDA, squeezing the cash the trading engine needs to rotate inventory.
Self-adjusting, in both directions
Repayment flexes with sales: a weak harvest slows amortization instead of triggering default — good for HSG — but extends lender risk and can leave a balloon at maturity.
Protect with a floor and a step-up
Consider a minimum quarterly payment covering interest, a sweep step-up if the balance runs behind a target curve, and a cash-sweep holiday cap during peak harvest buying.