Debt to Equity

Our debt for equities program allows public companies to satisfy trade payables, debts, and other liabilities in exchange for unregistered or registered common stock. LendingHub NYC is the industry leader in this innovative financing structure, which can substantially reduce the transactional costs and time necessary to complete financing.

We will pay a company’s creditors in cash in exchange for an assignment of their accounts, and then agree with the company to satisfy its payables for common stock.

Issuers can use a debt-to-equity exchange to clean up and strengthen their balance sheet by converting short and long-term debt to equity. This allows companies to reallocate their resources away from paying existing obligations and toward funding the future growth of their business. Interest will no longer be payable, or accrued, on the debt. By contrast, there is no ongoing cost of equity for the company.

By converting existing debt to equity, the company may free itself up to take on more borrowing, on different (and maybe more beneficial) terms. This will increase the cash available to the company. If a company is cash-constrained and has difficulty managing cash flow, the debt-to-equity program can renew, reinvigorate, and strengthen current vendor relationships.

LendingHub NYC works with the owners of the company for guidance on payment terms and priority, which creditors to approach first, and which are best suited for the program.