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Mid-market businesses are the backbone of the economy, often too large for small-business financing but not yet in the league of major corporations. For these companies, finding the right capital solutions for mid-market companies is critical to sustaining growth, funding acquisitions, and managing risk.
In 2025, mid-market CFOs and business owners face unique challenges: banks remain conservative, capital markets are volatile, and private credit is expanding rapidly. Agile Solutions helps mid-market firms bridge the financing gap with creative, tailored strategies.
Here are seven proven capital solutions for mid-market companies in 2025.
1. Private Credit and Non-Bank Lending
Private credit funds are increasingly serving mid-market businesses that banks underserve. These lenders provide:
- Flexible loan structures
- Higher leverage ratios than traditional banks
- Faster decision-making
For mid-market companies pursuing acquisitions or expansions, private credit offers tailored capital solutions that align with business cycles.
2. Asset-Based Lending (ABL)
Asset-based loans are secured by receivables, inventory, or equipment, unlocking liquidity without requiring unsecured debt. This solution is especially effective for manufacturers, distributors, and logistics firms with valuable working capital assets.
ABL helps companies finance growth, weather downturns, or restructure debt while maintaining operations.
3. Equipment Financing and Leasing
Mid-market companies often require significant investments in machinery, vehicles, or technology. Customized leasing and financing programs allow businesses to:
- Preserve cash flow
- Spread costs over asset lifecycles
- Maintain operational flexibility
This ensures growth without heavy upfront expenditures.
4. Growth Equity and Minority Investments
Mid-market companies seeking expansion may benefit from growth equity investors who provide funding without requiring full control. These investments support:
- Geographic expansion
- Product innovation
- Acquisitions
Unlike full private equity buyouts, minority investments preserve management independence while injecting capital.
5. M&A and Leveraged Buyout (LBO) Financing
Many mid-market firms use acquisitions to scale quickly. M&A and LBO financing solutions, structured through debt and equity blends, provide access to the capital required for strategic deals.
Agile Solutions helps mid-market companies navigate lender networks and structure deals that balance leverage and sustainability.
6. Revenue-Based Financing (RBF)
For companies with variable cash flows, RBF provides flexibility by tying repayment to a percentage of revenues rather than fixed payments. This solution works well for mid-market technology, healthcare, and retail businesses with growth potential but uneven cash patterns.
7. Government Programs and Export Financing
Government agencies in both the U.S. and Canada provide financing support to mid-market companies, particularly those engaged in manufacturing, clean energy, and exports. SBA programs, BDC financing, and export development loans provide cost-effective capital while supporting global competitiveness.
Seasonal Outlook for 2025
With interest rates stabilizing and private capital abundant, capital solutions for mid-market companies are expanding in scope and creativity. Businesses that diversify financing sources—combining private credit, ABL, and equity—will be best positioned to grow and withstand economic headwinds in 2025.
Reference Summary
| Source | Link |
|---|---|
| Investopedia | Investopedia: Asset-Based Lending |
| PwC | PwC: Global M&A Industry Trends – 2025 Outlook |
| BDC | BDC: Financing and Investment Solutions |
| World Economic Forum | WEF: Private Markets Adapt to Higher Rates |
Searching for the right capital solutions for mid-market companies? Agile Solutions helps businesses across the U.S. and Canada secure financing—from private credit and ABL to equity and M&A support—that drives growth and resilience.
👉 Book a consultation today at agilesolutions.global or email us at info@agilesolutions.global
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