In 2013, when Points North needed capital but couldn’t turn to a traditional lender, owner and CEO John Foucault knew where to go. Points North is a software-based company serving the construction, manufacturing and nonprofit sectors with workflow and operations product solutions – from certified payroll reporting to benefits administration. So in 2013, when a stockholder with a large number of preferred stocks wanted to cash out, he knew just what to do.
How can a business secure the capital necessary to carry out a substantial stock buyback?
With creative financing from the Entrepreneur Fund, Points North was able to:
- Execute a substantial stock redemption
- Regain an equity position in the business
- Improve its overall financial position by eliminating dividends and expenses associated with that stock
Points North continues to recognize the benefits of the stock buyback. The company expects to derive value from the deal for years to come.
We can issue loans up to $250k (and partner on higher amounts), with more flexible lending requirements and usage terms than those offered by a traditional bank.