Get up to $10M in direct business capital—backed by your cash-flow and potential, not your assets.
Sub Debt Loans
Flexible, non-dilutive capital to fund growth, close acquisitions, and strengthen your balance sheet without disrupting senior debt.
Key Highlights
Fast and flexible funding
$ Funding Amount
$100K to $10M
Non-Disruptive
Complements senior lending
Time to Fund
24 to 48 hours
Grow beyond credit limits
Subordinated debt (sub debt) gives you access to additional capital without refinancing or disrupting senior loans. It sits behind senior debt in repayment priority, making it a flexible tool for funding growth, acquisitions, or restructuring.
Who uses sub debt?
Funding at your pace
Business moves fast. Your financing should, too.
Keep full ownership
Access capital without giving up equity or control.
Predictable payments
Fixed payments make budgeting and cash flow planning simple.
Borrow based on performance
Qualify for higher amounts based on revenue—not assets.
Fuel long-term growth
Invest in expansion, equipment, or operations with structured funding.
Senior debt vs Sub debt
What’s the difference?
FEATURE | Senior Debt | Subordinated Debt |
|---|---|---|
Repayment | Repaid first in default | Repaid after senior obligations |
Collateral | Usually required | Often unsecured |
Cost | Lower | Higher |
Use Case | Primary working/growth capital | Fill funding gaps after senior is maxed |
Our sub debt helps bridge capital shortfalls in acquisitions, leveraged buyouts, and recapitalizations, ensuring you have the funds to close deals successfully. We specialize in:
- Capital gaps – Filling capital gaps in buyouts, expansions, and balance sheet moves.
- Growth capital – Providing complementary capital alongside senior lending facilities.
- Turnarounds – Bolstering declining companies with working capital to support growth
Asset-based lenders and factoring companies can use our Sub Debt to manage their balance sheets.
Here are a few examples of when these lenders would call upon National Business Capital:
- You’re trying to take on a new facility, but there’s a capital gap between the new facility amount and what’s owed to the senior lender. Using a subordinated loan, your client can cover the capital gap, and you can take on the facility by gaining the first lien position.
- A client needs capital in excess of their current facility, but the senior lender is unwilling to provide the client with additional capital. The client can leverage subordinated loans to obtain their requested over advance, while the senior lender retains the right to first lien position.
- You have a client who is no longer in the formula. You notify the client of the change, but they don’t have the capital to cover their existing facility. Instead of taking a loss or unwanted risk, debt subordination can bridge the gap to move the client off your books and satisfy all parties.
- If a prospective client applies for financing but has a first position lien against their assets, you can secure a subordinated loan to repay the senior lender and move their facility onto your balance sheet.
Fueling transactions, funding growth
We help you close complex deals by filling capital gaps others can’t.
Funds as you need them,
when you need them
What do I need to PROVIDE?
Required documents
Have this information on hand and you’re all set.
Funding Under 250K
Funding Over 250K
LET'S TALK FUNDING
Get the capital you need to grow your business
Ready to take the next step? Let’s get you funded.