What is Unitranche Financing? 

 March 2022

Many people are not familiar with a unitranche loan, especially in the lower middle market area. We are here to provide some insight into this fairly new form of commercial lending and also let you know that we are now offering unitranche loans.

When a lender is offering unitranche financing, they are allowing the borrower to come to just one lender for all of their needs. Typically, a lender who offers unitranche financing is offering more than one or two loan products. In our case, we are now offering cash-flow stretch funding along with our working capital lines of credit and collateralized term loans. With the ability to offer multiple products, Sterling gives the borrower a “one stop shop” where the process of obtaining all of their needed financing is quicker and easier. It is also less costly to deal with only one lender in many cases.

If you would like to learn more give us a call at (810) 229-2601.