Financing options

Most employee ownership transitions are primarily debt-financed, in the form of loans to the business. Ensuring that the business can take on the debt servicing is essential. Because of this, one of the most important first steps in assessing the fit of an employee ownership transition is a feasibility assessment that incorporates a debt capacity analysis.

The following is just one example of how a worker coop transition could be financed

Senior lenders $3,600,000
Seller (subordinate) $1,500,000
Inventory loan $500,000
TOTAL SOURCES $5,600,000
Purchase of business $4,250,000
Inventory $930,000
Working capital and technical assistance $290,000
Closing costs $130,000
TOTAL USES $5,600,000

Take a look at our financing case studies that share a few examples of what’s possible.

Explore funding options

Businesses that work with Project Equity to transition to employee ownership can apply for flexible and affordable financing through the Employee Ownership Catalyst Fund.

 You don’t have to go it alone when
exploring financing options

Book a consultation today to learn more about how Project Equity can help determine if employee ownership is right for you.