If you already have a bank loan, or are trying to get outside financing to qualify for a bank loan, NextSeed can help.
Once traditional banks understand that a NextSeed offering would be subordinated to their funding, or that a NextSeed revenue sharing note is very similar to a preferred equity instrument, banks generally do not have issues with NextSeed-financed businesses.
In fact, businesses have successfully acquired bank loans with the help of NextSeed financing. This is because banks require a certain loan-to-value ratio, where a business needs to show a certain amount of outside financing before a bank will lend the rest of the funds.
In reality, banks don’t care if you get outside financing from your savings, your rich uncle, equity investors or even Regulation Crowdfunding because they all occupy the same place in line: subordinate to the bank’s loan.
SBA loans may be trickier, as they have more stringent requirements and sometimes do not allow other loans to be paid off before their loan regardless of the situation—in some cases, a long-term SBA loan would reduce the chance of a business securing any other loan.
Depending on what the terms are, NextSeed can still work with your bank to get you your desired funding.