Commercial Financing Through BDCs

Business Development Companies (BDCs) are a significant source of financing for middle-market companies across the United States. Unlike traditional banks, BDCs offer flexible capital solutions tailored to companies with unique needs.

How BDC Financing Works

BDCs raise capital from public investors and deploy it as loans and equity investments to private middle-market companies. This structure allows BDCs to provide patient, relationship-oriented capital that traditional lenders often cannot offer.

Types of Financing Available

• Senior Secured Loans — First lien debt secured by company assets. Typically the lowest-cost option with the most favorable terms.
• Mezzanine Debt — Subordinated debt with higher yields, often including warrants or equity participation.
• Unitranche Financing — Combined senior and subordinated debt in a single facility, simplifying the capital structure.
• Equity Co-Investments — Direct equity investments alongside management or financial sponsors.
• Growth Capital — Flexible capital for expansion, acquisitions, or recapitalizations.

Typical Financing Profile

Submit Your Financing Inquiry

If your company is seeking $1M to $50M in financing, complete the form below. We will connect you with appropriate BDC and private credit partners.