The Venture Finance Group of NXT Capital gave a USD subordinated venture loan to support MyBuys. The USD 4.5 million proceeds would be used by MyBuys to fuel its quest for expansion. According to Investopedia, a subordinated loan ranks lower than other loans in terms of a creditor's claim to a company's assets or earnings. In the event of a default, the other senior debt holders would need to be paid first before the creditors with unsubordinated debts would receive payout.
MyBuys provides marketing solutions to retail firms, e-commerce websites, brands and other agencies. Through the company's cloud computing and big data services, organizations gain an edge over the competition. As a result, customers of MyBuys had improved on their financial results by up to 10 times.
Chief Executive Officer of MyBuys Robert Cell said NXT Capital worked with them and structured a loan facility that satisfied their needs. He added, "The team at NXT demonstrated great care in learning about our solutions and competitive differentiation."
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