Frequently Asked Questions

TULA Capital is a European network of independent financial advisors and brokers specializing in complex debt structuring. We operate as independent professionals, not a traditional corporate advisory firm, which allows us to maintain complete objectivity and align our incentives directly with client outcomes. Our team brings deep expertise across asset-based lending, structured credit, private credit, and specialty finance.

We work with corporate borrowers, financial sponsors, and institutional lenders across the EU and Switzerland. Our typical clients include mid-market companies seeking €10M-€500M+ in debt financing, private equity firms structuring acquisition financing, and companies navigating complex refinancing or restructuring situations. We focus on transactions requiring sophisticated structuring, competitive market positioning, or access to specialized lender relationships.

Unlike banks, we have no lending products to sell and no conflicts of interest—our sole objective is securing optimal terms for clients. Unlike traditional corporate advisors, we operate as an independent network of specialists, combining boutique responsiveness with institutional-grade capabilities. We have deep relationships across 100+ lenders in Europe, access to proprietary market data, and the ability to structure creative solutions that traditional advisors may not consider.

We provide comprehensive debt advisory services including market intelligence, lender identification and approach, term sheet negotiation, transaction structuring, and closing coordination. We also offer unbundled advisory packages for companies with internal capabilities who need targeted support—such as pitch deck reviews, financial model audits, data room preparation, or independent term sheet analysis.

Ideally, engage us 3-6 months before you need capital. This allows time for proper preparation, market positioning, and competitive process management. However, we regularly assist companies on shorter timelines or in urgent situations. We're also valuable partners when facing complex structuring challenges, when existing bank relationships aren't meeting needs, or when you want independent validation of financing proposals you've received.

For comprehensive advisory engagements, we work on a success fee basis aligned with transaction outcomes—typically a percentage of funds raised or refinanced. This ensures our incentives match yours: we only succeed when you do. For unbundled advisory packages, we offer transparent fixed-price services starting at €3,500, with bundle discounts for multiple services. We discuss fee structures during initial consultations and provide clear written proposals.

Timeline varies by transaction complexity and market conditions. A straightforward ABL or private credit facility might close in 8-12 weeks. Complex structured credit or multi-tranche financings can take 3-6 months. Urgent refinancings or bridge solutions can move faster when necessary. Our unbundled advisory packages have defined delivery timelines ranging from 3-5 days for term sheet analysis to 10-14 days for data room reviews.

Yes. Our network includes sector specialists with deep experience across technology, healthcare, manufacturing, business services, consumer goods, industrials, and more. While we're sector-agnostic in our capabilities, we're selective about engagements—we focus on situations where our expertise, relationships, and structuring capabilities add meaningful value.

We focus exclusively on the European Union and Switzerland. This geographic focus allows us to maintain deep lender relationships, current market intelligence, and regulatory expertise across our core markets. Our team is based in Berlin and Zurich, with strong networks throughout Western and Central Europe.

You're likely a good fit if: (1) You need €10M+ in debt financing, (2) Your situation requires sophisticated structuring or competitive positioning, (3) You value independent advice without product conflicts, (4) You want access to lenders beyond traditional bank relationships, or (5) You're navigating a complex refinancing, restructuring, or growth financing situation. The best way to find out is a brief initial conversation—we're transparent about whether we can add value.

Our network model is unique: we combine the deep expertise and specialized relationships of individual advisors with collaborative capabilities across our platform. This means you get dedicated attention from senior professionals (not junior analysts), access to our collective 100+ lender network, and the benefit of diverse transaction experience—without corporate overhead or bureaucracy. We're particularly strong in complex, non-standard situations where creativity and relationships matter.

Absolutely. We regularly collaborate with CFOs, internal finance teams, legal counsel, and existing banking relationships. Our role can be lead advisor on debt financing while you manage equity or M&A separately, or we can provide targeted support (market intelligence, term sheet review, specialized lender introductions) complementing your existing team's work.

Completely confidential. We operate under strict NDAs and only share information with potential lenders after explicit client approval. We're experienced in managing sensitive situations—refinancings, distressed scenarios, or competitive processes requiring discretion. Many clients engage us before informing existing lenders or announcing financing plans publicly.

That's exactly why we created our unbundled advisory packages. You can engage us for specific deliverables—pitch deck review (€6,000), financial model audit (€9,000), data room preparation (€8,000-€12,000), market intelligence (€5,000), or term sheet analysis (€4,000). These fixed-price services give you targeted expertise without a full engagement commitment.

The first step is a brief conversation to understand your situation, objectives, and timeline. Contact us through our website or email team@tulacap.com. We typically respond within 24 hours and can schedule an initial call within days. There's no cost or obligation for this initial discussion, and we're direct about whether we're the right partner for your needs.

Asset-based lending is a financing structure where a lender extends credit based on the value of a borrower's assets—typically accounts receivable, inventory, machinery, or real estate. Unlike traditional cash-flow lending, ABL focuses on the liquidation value of collateral rather than earnings or projections. This makes it particularly suitable for companies with substantial assets but variable cash flow, including turnarounds, acquisitions, or seasonal businesses.

Traditional bank lending relies primarily on cash flow analysis, credit ratings, and financial covenants. ABL, by contrast, is collateral-focused and asset-based. ABL facilities typically offer higher advance rates against assets, more flexible covenant packages, and greater availability during periods of operational stress. Traditional lending suits stable, cash-generative businesses; ABL serves companies with strong asset bases but variable earnings, growth businesses, or those undergoing operational changes.

Advance rates vary by asset class and quality. Typical ranges include: 75-90% of eligible accounts receivable (depending on concentration, aging, and customer credit quality), 50-65% of eligible inventory (lower for raw materials, higher for finished goods), and 70-80% of machinery and equipment appraised values. Rates depend on asset quality, industry dynamics, borrower operational history, and lender risk appetite. Advance rates are subject to regular monitoring and borrowing base certificates.

ABL is typically appropriate when: (1) the company has substantial tangible assets but inconsistent cash flow; (2) traditional lenders won't provide sufficient leverage based on EBITDA multiples; (3) the business is growing rapidly and needs working capital flexibility; (4) the company is undergoing a turnaround or restructuring; (5) seasonal working capital needs exceed what term loans can support; or (6) the business is executing a leveraged buyout or acquisition requiring higher leverage than senior term debt can provide alone.

Structured credit refers to debt instruments created through securitization—pooling cash-flow-generating assets (such as loans, receivables, or bonds) and issuing securities backed by those cash flows. Common structures include CLOs (collateralized loan obligations), securitizations, warehouse facilities, and structured finance vehicles. Structuring involves designing cash flow waterfalls, credit enhancement mechanisms, intercreditor arrangements, and ensuring regulatory compliance. Structured credit allows lenders to manage risk, achieve regulatory capital relief, and provide efficient financing for originators.

Unitranche financing combines senior and subordinated debt into a single facility with a blended interest rate, simplifying the capital structure and reducing documentation complexity. Rather than negotiating separate senior and mezzanine facilities with intercreditor agreements, borrowers deal with one lender (or a club of lenders) providing the full debt stack. This streamlines execution, reduces closing costs, and simplifies ongoing administration. Unitranche is common in sponsor-backed transactions, middle-market LBOs, and growth equity financings where speed and certainty are priorities.

Private credit refers to debt financing provided by non-bank lenders—primarily debt funds, private equity-affiliated credit arms, and specialty finance firms. Unlike regulated banks, private credit funds are not subject to Basel capital requirements, can hold loans to maturity without mark-to-market concerns, and typically have more flexible underwriting parameters. They often provide larger hold sizes, more flexible structures, higher leverage, and fewer covenant restrictions than traditional banks. Private credit has grown significantly as banks have retreated from certain middle-market and leveraged segments due to regulatory capital requirements.

An intercreditor agreement governs the relationship between different classes of lenders in a capital structure—typically senior lenders and mezzanine or second-lien lenders. It establishes priority of claims, payment waterfalls, voting rights, enforcement restrictions, and standstill provisions. Key provisions include lien priorities (who gets paid first from collateral proceeds), payment subordination (timing and conditions for junior lender payments), and control rights (which lender group directs enforcement and restructuring decisions). These agreements are critical in any multi-tranche financing and become particularly important in default or restructuring scenarios.

Venture debt is a specialized form of growth capital provided to venture-backed companies, typically alongside equity financing rounds. It's structured as term debt (usually 3-4 years) with warrants, allowing companies to extend runway and reduce equity dilution. Venture debt is most appropriate when: (1) the company has recently closed an equity round and wants to extend runway without further dilution; (2) growth capital needs exceed what equity investors are willing to provide; (3) the business has predictable revenue but isn't yet cash-flow positive; or (4) the company needs bridge financing to reach the next value inflection point. It's not suitable for pre-revenue startups or companies without clear paths to profitability.

Venture debt is specifically structured for high-growth, often pre-profitable technology and life sciences companies. Unlike traditional corporate debt, venture debt: (1) typically includes warrants (equity kickers) as additional compensation for higher risk; (2) relies more on equity backing and future growth prospects than current cash flow; (3) has lighter covenant packages focused on liquidity and material adverse change rather than leverage or coverage ratios; (4) is usually provided by specialized lenders who understand venture economics; and (5) has shorter tenors (3-4 years) aligned with equity fundraising cycles rather than longer-term amortization.

Venture debt typically includes: (1) Loan amount of 20-40% of the most recent equity round; (2) 3-4 year term with interest-only periods followed by amortization; (3) Interest rates of 8-13% depending on company stage and market conditions; (4) Warrants representing 5-15% warrant coverage (percentage of loan amount); (5) Minimal financial covenants—usually just minimum cash requirements; (6) Material adverse change provisions and equity raise requirements; and (7) Security over all company assets, though typically with senior lien carve-outs for equipment financing. Terms vary significantly based on company maturity, revenue visibility, and competitive dynamics.

Cross-border transactions require specialists across the relevant jurisdictions who coordinate security perfection, regulatory approvals, and documentation. Facilities are structured with parallel debt mechanics, security trustee arrangements, and jurisdiction-appropriate documentation. For multi-jurisdictional ABL facilities, this includes coordinating borrowing base mechanics, local law security perfection, and inter-company lending structures, as well as handling transfer pricing considerations and withholding tax optimization.

Alternative lending implicates various regulatory regimes depending on lender type and structure. Bank lenders face Basel capital requirements, leverage restrictions, and regulatory capital charges that influence structure decisions. Non-bank lenders must consider fund regulations (AIFMD in Europe, registration requirements in the US), licensing requirements for certain activities, and disclosure obligations. Securitization structures involve complex regulatory capital treatment, retention requirements, and disclosure frameworks (Regulation AB in the US, Securitisation Regulation in Europe). We help structure transactions to optimize regulatory capital treatment while ensuring compliance with applicable requirements.