A comprehensive guide to the full landscape of non-bank corporate finance solutions available to operating companies across Asia Pacific.
Published by
Donald Klip | Co-Founder, Global Mortgage Group | Head, GMG Capital Advisory
30 years of institutional finance. Former hedge fund founder. Senior roles at top global investment banks. GMG Capital Advisory arranges private credit and special situations finance of $10M–$100M for operating companies across Asia Pacific.
[email protected] | +65 9773 0273 | Singapore · Hong Kong | Asia-Pacific
When a bank says no, the conversation does not end. The capital market is significantly broader than the banking system, and operating companies across Asia Pacific have access to a wider range of financing solutions than most CFOs and business owners have been told about.
The banking system is one financing channel among many. The CFO who understands all the channels has a significant advantage over the one who only knows one.
Private Credit: The Primary Alternative
Private credit corporate debt arranged through non-bank lenders including private debt funds, family offices, and specialist finance firms is the most comprehensive and flexible alternative to bank lending for mid-market operating companies. It covers the broadest range of transaction types, deal sizes, industries, and structures of any single alternative financing category. It is covered in depth throughout this series.
Asset-Based Lending (ABL)
Receivables financing: Credit advanced against outstanding trade receivables. The facility grows and shrinks with the business's receivables book, making it well-suited to seasonal or growth businesses.
Inventory financing: Credit secured against raw material or finished goods inventory. Common in manufacturing, distribution, and retail businesses with significant inventory positions.
Equipment financing: Loans or leases secured against specific plant, machinery, or equipment assets. Particularly relevant for capital-intensive industries.
Sale and leaseback: The operating company sells an asset typically real property or equipment to a finance provider and leases it back, releasing equity capital while retaining operational use of the asset.
Mezzanine Finance
Mezzanine finance sits in the capital structure between senior debt and equity. It carries a higher yield than senior debt and is typically used to bridge a gap between what senior lenders will provide and what equity investors require. In Asia Pacific mid-market transactions particularly leveraged buyouts and management buyouts mezzanine can enable deals that would otherwise be impossible to capitalise.
Family Office and High-Net-Worth Direct Lending
Singapore, Hong Kong, and increasingly other regional centres host a large and growing population of family offices and HNW investors who allocate directly to private credit and direct lending opportunities. These investors can be highly flexible; they have no regulatory capital constraints and can accommodate structures that institutional lenders cannot.
Government-Backed and Development Finance
Most major Asia Pacific markets operate government-backed lending schemes that provide subsidised or guaranteed credit to qualifying businesses. Enterprise Singapore, the SME Corporation in Malaysia, Indonesia's KUR programme, and Australia's various state and federal business finance schemes are among the better-known examples.
Export Credit and Trade Finance
Operating companies with significant export activity have access to export credit agency (ECA) financing in their home markets. ECAs in Australia, Singapore, Korea, Japan, and Taiwan provide loans, guarantees, and insurance for export transactions that domestic banks may be reluctant to finance.
The Right Solution Depends on the Situation
No single alternative finance solution is right for every operating company or every situation. The appropriate solution depends on the specific capital requirement, the business's asset base, its cash flow profile, its industry, its jurisdictional footprint, and the urgency of the need. GMG Capital Advisory works across the full spectrum of alternative corporate finance solutions. Speak to us first.
About GMG Capital Advisory
Donald Klip | Co-Founder, Global Mortgage Group | Head, GMG Capital Advisory
Donald Klip has 30 years of institutional finance experience spanning hedge fund management and senior roles at the world’s top global investment banks. GMG Capital Advisory specialises in arranging and structuring corporate debt financing of $10M–$100M for operating companies, asset owners, and project sponsors where conventional bank lending is unavailable, insufficient, or too slow. We operate across 23+ jurisdictions in Asia Pacific.
www.gmg.asia | [email protected] | +65 9773 0273 | Singapore · Hong Kong
The Debt Desk
Corporate private credit intelligence for Asia Pacific’s $10M–$100M middle market. Published by GMG Capital Advisory. Part of the Private Credit Asia content series.
www.gmg.asia | Read all 41 articles in the series
