Axent-Midwest Capital Fund,
Financing Small Business in America

It seems the pace of business is moving faster every day. And when an opportunity for growth presents itself, or an issue arises that must be handled right away, having fast access to capital is critical to success, and quite possibly avoiding a disaster. Axent-Midwest Capital Fund, LLC helps small to mid-size businesses get the capital they need in as little as 24-hours, solving problems in ways traditional financial institutions usually can’t or won’t.

“We are financing small business in America.” says managing partner, Paul Miller, a 35-year veteran of the merchant banking and finance industry. “We fund growth and opportunity.”

A true example is the story of a high-end Japanese steak house in Washington, D.C., whose hot water heater exploded Christmas night, flooding the entire restaurant. Since there is no way insurance would fund the clean-up immediately, and with having sold-out four seating times on New Year’s Eve, the prospects of a long, and costly, shut down were looming. Being a long-time, repeat client of Axent-Midwest, the restaurant owner called Paul Miller. “Our office took the call Christmas night, and despite the holiday season, our underwriting team recognized the plight of our customer, and funded the deal the morning of December 27th – about 36 hours from the time we received the call. Axent-Midwest got them the cash they needed,” said Mr. Miller. Miller further added, “We then suggested a settlement structure for the restaurant owner with insurance company, a structure that reduced the insurance company’s cost, netted our client more funds, and provided Axent-Midwest with a stellar yield on the funds we advanced.”  The insurance company has since brought Axent-Midwest similar transactions due to its “out-of the box” thinking. The Japanese steak house is also a great referral source to Axent-Midwest as well.

Another example is a contractor that secures a large deal and needs capital to purchase supplies and equipment to begin the job before the first draws are paid. “Most deals are put together in less than a week and since over 42% of our business is renewal, it often happens even quicker,” Miller added.

Axent-Midwest is a leader in the Merchant Cash Advance (MCA) industry, specializing in working with companies with annual revenues between $500,000 and $20,000,000. To be clear, a merchant cash advance is NOT a loan. Rather, an MCA is an advance on the client’s future sales. Unlike a loan, Axent-Midwest receives a portion of the client’s sales, every day; (in some instances the funds are received once or twice a week. As part of the transaction, we obtain security interests in the merchant’s bank accounts, credit card processing accounts, and other easily liquidated assets. The liquid collateral, along with the daily collection velocity, mitigates the default risk associated with other forms of alternative financing instruments.

Through the end of 2019, our portfolio was spread across thousands of transactions, in 49 states, in just about every industry, with no single industry having more than a 9% concentration of the transactions, and less than 6% of the dollars at risk. Axent-Midwest’s team has unparalleled underwriting standards, industry leading technology, and decades of experience in both MCA and traditional banking.

Though the MCA industry started in the late 1990s, with Axent-Midwest first fundings beginning in 2003, the 2008 financial crisis, caused traditional banks to dramatically change their lending requirements. In short, bank financing changed forever. The tightening of funding requirements by banks, led to the MCA industry becoming more mainstream, resulting in increased demand. Between 2015 and 2018, the MCA industry annual volume grew from approximately $8.6 Billion to over $18 Billion. The Merchant Cash Advance product exists as an alternative to conventional financing, which can be cumbersome, involve a lengthy application process, many times with the loan never being approved.

For more information about Axent-Midwest Capital Fund, LLC, please visit www.axent-midwestcapfund.com, or you may call Paul Miller, Managing Director, at 816-304-5951.

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