Many great businesses never really get started or are doomed to failure because banks do not like lending to organisations that have a significant risk of failing. How many products and services never reach the market to benefit consumers? How many people are never employed and how much wealth is never created because banks are reluctant to lend?
Long-term finance is a critical tool that need to maximize liquidity and flexibility. Making corporate lending work for you requires an ICONIC partner who understands your industry and can structure a program that helps you achieve your goals. ICONIC partners with mid-sized and large businesses, as well as multinationals and private equity sponsors in many markets, combining its unique industry expertise with financing solutions.
An entity wishing to raise funds will issue or sell these to interested investors. The entity agrees to pay a fixed rate of interest each year for the life of the long-term finance, which can be up to 25 years. The buyers may resell to other investors if they do not wish to wait until maturity before getting their original investment back.
Long-term finance is usually not ‘secured’ on a particular asset, otherwise they come in the form mortgage debentures. This can be a very important source of finance – in BT’s 2007 accounts, for example, the total value of issued loan stock amounted to £3000 million.
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