About Commerce Capital

Commerce Capital was organized in 1994 to meet a perceived need in the financial marketplace. Licensed to invest in the USA, Commerce Capital will concentrate its investment activities in the Southeast. Commerce Capital finance small qualified growth companies. The General Partner Management of Commerce Capital has significant education and experience in the financial, investment, business, manufacturing, and economic development disciplines. This affords the management team a unique perspective into the needs of the client companies. Commerce Capital does not make venture capital investments.

  General Eligibility Guidelines

SBICs must invest in small businesses as defined by the SBA. A company's net worth cannot exceed $18 million and an average after tax income of up to $6 million in a three year period. Companies should meet the following criteria for successful partnering:

1. Demonstrate a growth rate of 20%
2. Provide adequate collateral coverage
3. Have sophisticated equity shareholders
4. Possess experienced management teams with significant ownership
5. Demonstrate a viable exit strategy
6. Cashflow positive and in business for at least three years.

Investment Preferences

Commerce Capital will invest on its own or with other financial institutions in established businesses that require expansion capital. On occasion, investment in early stage companies will be considered.

Typically companies will be in the following areas of preferences.

  • Healthcare
  • Manufacturing
  • Environmental
  • Communications

Investments will be debt transaction only, with the original client company founders active in the business.

Structure Of Investments

1. As a Small Business Investment Company, Commerce Capital will provide financing that supplements and corresponds with other financial institutions. It is the intention of Commerce Capital to develop and maintain lasting relationships.

2. Commerce Capital will invest in debt instruments. Typically, investments will require conventional lending understanding and documentation as well as an equity interest (in the form of warrants) in the company. A viable exit strategy is required to assure an adequate return on investment.

3. The loan committment period is 5 years. Typically, borrowers will be charged interest only for the term of the loan. Therefore, the cash flow of the borrower will be improved substantially.

4. Commerce Capital does not make investments in certain types of businesses:

a. Real estate development firms*
b. Relending or reinvestment firms
c. Newspapers, radio and TV stations, magazine publishers*
d. A business whose purposes are contrary to the public interest
e. Charitable, religious and other non-profit institutions
f. Loan packagers
g. Multilevel sales distribution plans

*limited investment

 
Web Design by
Icglink, Inc.

Commerce Capital, L.P.
 5115 Maryland Way
Suite 304
Brentwood, TN 37027
615.244.1432
Fax: 615.242.1407
E-mail: info@commercecap.com