Why business owners choose Flatboat

  • Cash Preservation

    Low monthly payments via minimal amortization and non-cash interest (“PIK”). For business acquisitions, we will lend up to 100% LTV, subject to a maximum of 4.0x leverage (with an Equity Support Agreement from a Buyer’s 401k).

  • Flexible Terms

    Counterparties choose Flatboat loans for a variety of uses, both permanent and temporary. With no prepayment penalties and +10 year terms, we provide borrowers the flexibility required to fully optimize their businesses.

  • Aligned Interests

    We invest alongside our LPs and collectively share a deep conviction in the importance of financing the continued success of small businesses in the United States.

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A differentiated part of your capital structure

Flatboat loans provide short or long-term, flexible capital that maximizes your total return on equity— freeing your company to reinvest in growth rather than service debt. By combining institutional underwriting with adaptive structures, our financing fills the gap between traditional bank loans and equity, strengthening your company’s overall capital structure

Illustrative Example: $1 Million Loan Comparison

Metric SBA 7(a) Loan Flatboat Loan
Loan Amount$1,000,000$1,000,000
Term10 years10 years
Interest Rate10% (cash)10% (5% cash + 5% PIK)
AmortizationFully amortizing1% per year
Annual Cash Debt Service (Yr 1)≈ $162,745≈ $60,000
3-Year Cumulative Cash Debt Service≈ $488,000≈ $182,000
Cumulative Free Cash Flow (FCF) Retained—≈ $306,000 more liquidity
Down Payment Required (for M&A)10 – 15 %0 % (with 401(k) Equity Support Agreement)
Prepayment PenaltyVariesNone