The Basecamp Difference
What Is Capital Stacking — and Why It Matters
Most businesses go to one bank for a large loan. That bank either says yes or no. If they say yes, you get their rate, their terms, their structure. One option.
Capital stacking is different. We build your financing package across multiple lenders and products — each one handling the piece they're best at. A mortgage lender handles the real estate. An equipment lender handles the machinery. A working capital lender bridges the gap. Each lender competes on their piece. You get the best rate on every layer.
Here's what a real capital stack looks like:
| Layer | Product | Lender Type | Amount | Rate |
|---|---|---|---|---|
| 1 | Commercial mortgage | SBA 504 lender | $2,000,000 | 6.5% fixed |
| 2 | Equipment financing | Equipment specialist | $1,500,000 | 8% |
| 3 | Working capital | Revenue-based lender | $500,000 | 14% |
| 4 | Renovation / buildout | Term loan lender | $1,000,000 | 10% |
| Total | Capital stack | 4 lenders, 1 application | $5,000,000 | Blended ~8.5% |
One application through Basecamp. Four lenders. Four optimized rates. One dedicated specialist managing the entire stack. That's what 70+ lenders actually means.
The Bank Problem
Why Business Owners Waste 90 Days at Banks
Here's what happens when you go to one bank for $3M:
The bank reviews your application for 3 weeks. They come back and approve you for $1.2M — their max comfort level. Now you need $1.8M more. You start over at a second bank. New application. New documents. New credit pull. Another 3 weeks. They approve $1M. You still need $800K.
Three banks. Three applications. Three credit pulls. Three timelines running sequentially. Three sets of covenants that might conflict with each other. You've spent 90+ days and you still might not hit your number.
With Basecamp, we structure the entire capital stack upfront. Your specialist identifies which lenders handle which piece BEFORE you apply. Multiple lenders work simultaneously, not sequentially. What takes 90 days at three banks takes us under 30 days.
Funded Transactions
Transactions We've Structured
Manufacturing Acquisition
Chicago, IL$8.2M to acquire a competing manufacturer. 3 production facilities, $12M annual revenue. Capital stack: $4.5M commercial mortgage (SBA 504), $2.2M equipment line, $1.5M working capital for integration. 15% down. Funded in 22 days. Buyer doubled production capacity overnight.
Commercial Real Estate
Dallas, TX$3.2M to buy a 25,000 sq ft warehouse. Wholesale distributor outgrew their space. SBA 504: 10% down ($320K) instead of 25% at a bank ($800K). Monthly payment $480 less than their old lease. Building equity instead of rent.
Fleet Expansion
Memphis, TN$3.1M for 12 new Peterbilt 579s with APUs and telematics. Dedicated contract required fleet expansion. Traditional lender wanted 30% down. Capital stack: equipment financing at 10% down across two lender partners. Funded in 16 days.
Practice Acquisition
Scottsdale, AZ$1.8M to acquire a multi-location dental group. 4 operatories, established patient base. SBA 7(a) with 10% down. Seller was 30 days from accepting a corporate offer. We closed in 26 days.
Construction Company Expansion
Denver, CO$2.5M package: $900K for new shop and yard (SBA 504), $1.2M equipment line for excavators and loaders, $400K working capital for bonding and mobilization. Three products, three lenders, one application.
Section 179 Tax Strategy
Houston, TX$2M heavy equipment purchase for a manufacturer with $5M in annual profit. 10% down ($200K), financed $1.8M. Section 179 write-off: $2M deducted in year one. Business tells the IRS they made $3M instead of $5M. Kept $4.8M in cash, got $2M in equipment, saved ~$800K in taxes.
Get Started
Start Your Commercial Financing (30 Seconds)
Tell us about your project. After submitting, you'll complete a short application — takes about 2 minutes. Your dedicated commercial specialist reviews both and presents a structured capital stack. No obligation. No credit pull.
No obligation. Your information is kept confidential.
Underwriting Framework
The Commercial Lending Pecking Order
When a lender evaluates a $1M+ transaction, they look at four things in this exact order:
Affordability
Can your business service this debt with or without the new opportunity succeeding? This is non-negotiable. Lenders won't approve a transaction where repayment depends on projected growth. Your current cash flow must cover the payment.
Use of Funds
What exactly is the money for? This determines which products and lenders fit. Equipment, real estate, acquisition, and working capital each have different lenders and structures.
Creditworthiness
At this level, personal and business credit both matter. This isn't just a FICO score — it's your full financial picture.
Documentation
The difference between a $500K approval and a $5M approval is documentation. Tax returns, financial statements, P&L, business plan, and the ability to tell your story to underwriters like you're pitching on Shark Tank.
Know Your Numbers
The Metrics Your Lender Is Calculating
If your business has a CFO — even a fractional one — they already know these numbers. If you don't, this is what lenders are quietly calculating on every commercial transaction over $1M:
DSCR (Debt Service Coverage Ratio)
Your annual net operating income divided by annual debt payments. Lenders require a minimum of 1.25x for most commercial transactions. Meaning: for every $1 in debt payments, your business must generate $1.25 in net income. Hotels and higher-risk assets need 1.40x.
Debt-to-EBITDA Ratio
Total debt divided by earnings before interest, taxes, depreciation, and amortization. Lenders typically approve 2x to 4x EBITDA depending on industry. A manufacturer with $2M in EBITDA might qualify for $6M-$8M in total debt capacity.
Operating Cash Flow (OCF)
Cash generated from core operations. Not revenue. Not profit on paper. Actual cash moving through the business. This tells lenders if you can make payments regardless of accounting adjustments.
You don't need to walk in knowing these numbers perfectly. But having them ready — or having a CFO who can present them — is the difference between a 3-week approval and a 3-month runaround.
| Metric | What It Measures | Lender Minimum | Strong Profile |
|---|---|---|---|
| DSCR | Income vs debt payments | 1.25x | 1.50x+ |
| Debt-to-EBITDA | Total debt capacity | 2x | 3x-4x |
| OCF | Cash from operations | Covers payments | 1.5x payments |
The biggest advantage you can have walking into a $1M+ transaction is knowing your numbers cold. Not your revenue — your DSCR, your EBITDA multiple, your operating cash flow. When a business owner rattles those off in the first meeting, underwriters stop asking skeptical questions and start structuring the financing.
Bobby Friel, Basecamp Funding - Founder
Qualification Guide
Who Gets Approved for $1M+
Strong Candidates
Not Ready Yet
Avoid These Mistakes
What Kills a Commercial Transaction
Secret Stacking
Taking financing from Bank A and Bank B simultaneously without disclosing it to either. Lenders have covenants that will call the entire loan if discovered. We structure stacking properly and transparently.
Affordability Gap
If your business can't service the debt from current operations — without relying on the new opportunity's projected revenue — the transaction won't close.
Poor Presentation
On large transactions, underwriters ask hard follow-up questions. If the borrower sounds like it's the first time they're explaining their business goals, it dies in committee.
Incomplete Documentation
Missing two years of tax returns or a current P&L kills transactions that would otherwise get approved.
Sector Focus
Industries Where Commercial Lending Is Booming
Manufacturing
Hands down the best industry for large-scale financing. Manufacturers can expand product lines, go upstream or downstream, go direct-to-consumer. Every growth path needs capital.
Wholesale & Distribution
Inventory financing, warehouse acquisition, fleet expansion. The cash cycle demands large capital structures.
Technology
Current boom in tech spending. Infrastructure, SaaS platforms, data centers all need significant capital.
Construction
Commercial contractors scaling from $5M to $50M in revenue need equipment, facilities, and bonding capacity.
Healthcare
Practice acquisitions, multi-location buildouts, and expensive equipment make healthcare a top commercial lending sector.
Trucking
Fleet buildouts at scale. 12+ truck acquisitions, terminal purchases, dedicated contract mobilization.
Looking specifically for acquisition financing?
SBA loans, capital stacking, and seller financing structures — all on one dedicated page.
See Business Acquisition Financing →Tax Strategy
The Section 179 Advantage at Scale
If your business made $5M in profit last year and you're about to send a check to the IRS — stop. Purchase $2M in qualifying equipment with 10% down ($200K). Finance the remaining $1.8M. Section 179 lets you write off the full $2M in year one.
Result: You keep $4.8M in cash. You get $2M in equipment. You tell the IRS you made $3M. At a 37% tax rate, that's $740,000 in tax savings. The equipment financing costs you maybe $250K in interest over 5 years. Net savings: $490,000.
| Profit | Equipment | Down (10%) | Financed | 179 Deduction | Tax Savings (37%) | Net Benefit |
|---|---|---|---|---|---|---|
| $5M | $2M | $200K | $1.8M | $2M | $740K | $490K+ |
| $3M | $1.5M | $150K | $1.35M | $1.5M | $555K | $350K+ |
| $10M | $3M | $300K | $2.7M | $3M (up to limit) | $1.1M | $750K+ |
I've seen business owners write a $2M check to the IRS when they could have bought $2M in equipment, deducted all of it, and grown their business at the same time. That's not smart tax planning. That's leaving three quarters of a million dollars on the table.
Bobby Friel, Basecamp Funding - Founder
Financing Strategy
Debt Financing vs Equity — Keep 100% of Your Company
When your financing needs exceed $1M, some business owners consider selling equity to private investors or venture capital instead of borrowing. Here's why most established businesses should choose debt:
| Factor | Debt Financing | Equity (Investors / VC) |
|---|---|---|
| Ownership after | 100% yours | You give up 20-40% |
| Monthly cost | Fixed loan payments | No payments — but you share ALL future profits |
| Control | Full control of decisions | Investors get board seats and veto power |
| Speed | 3-4 weeks to close | 3-6 months to find investors + legal |
| Cost over 10 years on $5M | ~$1.5M in interest | 20-40% of ALL future revenue forever |
| Tax benefit | Interest is deductible | No tax benefit |
| Exit impact | Pay off the loan, keep everything | Investors own their share permanently |
Equity sounds attractive because there are no monthly payments. But you're paying with something more expensive than interest — you're paying with ownership. A $5M loan at 8% costs you $1.5M in interest over 10 years. Giving an investor 25% of a business that grows to $20M costs you $5M. Debt is almost always cheaper than equity for established businesses.
Bobby Friel, Basecamp Funding - Founder
Our Process
How Commercial Financing Works With Basecamp
Tell Us About Your Project (30 Seconds)
Use the form on this page. Amount, purpose, industry, timeline. That's it.
Complete Your Application (2 Minutes)
After submitting, you'll be taken to a short application that tells your story: revenue, goals, use of funds. This is what our commercial team uses to structure your capital stack.
Your Specialist Is Assigned
A dedicated commercial funding specialist reviews your application and begins building your capital stack across the right lenders. They present your best options directly — no runaround.
Your Capital Stack Is Presented
Your specialist presents the full structure: which products, which rates, which terms, total cost across every layer. You review, ask questions, and decide.
Close & Fund
Sign documents digitally. Your specialist manages every lender in the stack through closing. Funds wire to your account. Typical timeline: under 30 days.
Total time investment from you: under 3 minutes. Everything else is handled by your dedicated specialist from start to funded.
The Legal Timeline
What the Commercial Close Actually Looks Like
A commercial close over $1M is not a handshake and a wire transfer. Here's the actual timeline so you know what to expect:
Term Sheet
Non-binding document outlining loan amount, rate, collateral, and covenants. This is your first real offer. Review it with your attorney.
Due Diligence
Lenders verify financial health, existing liens, and environmental risks. You verify operational impact. This runs parallel across all lenders in your stack.
Loan Documentation
Credit agreements, pledges, guarantees drafted. Your attorney reviews. Negotiations happen here.
Negotiations
Lenders push for restrictive covenants. You push for operational flexibility. This is normal and expected. Don't panic.
Closing
Final signatures, often facilitated by escrow. Funds wire.
Post-Closing
Repayment begins. Ongoing covenant compliance monitored by lender. We stay in touch to manage refinancing when rates improve.
Total timeline: 3-4 weeks for well-prepared borrowers. 6-8 weeks for complex multi-property or acquisition transactions. Your specialist manages the entire timeline across all lenders in your stack simultaneously.
From Our Founder
Bobby Friel, Basecamp Funding - Founder
Ready to Start?
You've seen the scenarios. You've seen the math. If your business needs $1M+ in financing, the next step takes 30 seconds.
Start Your Application →Not Ready Yet? Run Your Numbers First.
Estimate monthly payments, total cost, and debt service for SBA, commercial real estate, and equipment packages.
Try the Calculator →FAQs
Commercial Financing FAQs
Look — if you're running a business doing $1M+ in revenue and you haven't looked at how capital stacking can change your growth trajectory, you're leaving money on the table. Most business owners go to one bank, get one answer, and accept it. That's not how commercial financing works. You need a mortgage specialist for the real estate, an equipment lender for the machinery, and a working capital provider to bridge the gap. Each one competes on their piece. That's capital stacking.
And if you're buying equipment this year and haven't talked to your CPA about Section 179, you might be writing a check to the IRS that you don't have to write. A $2M equipment purchase with 10% down can save you $740K in taxes at a 37% bracket. That's not a loophole — it's what the tax code was designed for.
Basecamp Funding works with 70+ lending partners to structure commercial financing packages from $1M to $10M+. One application. Multiple lenders competing. A dedicated commercial specialist managing every step. Whether you're looking at a business acquisition, a fleet expansion, or a full-scale capital stack — the conversation starts with a 30-second form.
Your Business Deserves More Than One Bank's Opinion
Free review. No obligation. Confidential. One application — 70+ lenders competing.
Talk to a Commercial Specialist →