Unfriended By Your Bank ? Here’s Turnaround Business Financing To The Rescue

OVERVIEW – Information on financial alternatives to special loan situations . If your bank loan has been called in and your firm is in special loans there are asset based lending financing alternatives available immediately

Bank Loan called? Special loans situation? Trust us; we have heard the joke a hundred times – namely ‘ being in special loans is not really making your firm feel ‘ special ‘! That’s why asset based lending is your solution for alternative financing of almost any type. Let’s dig in.

Are you a Canadian firm that has had your bank loan called in – that’s of course the terminology used by Canadian banks when they terminate a banking relationship due to your firms covenant breaches. In some cases you might just be struggling with that relationship.

Typically ‘ breaches ‘ of that relationship revolve around a couple key areas : ratios out of whack , financial losses, cash flow generation challenges, your industry is out of favor ( think General Motors in 2008 – 2009 ) etc . Debt to equity seems to be the most common ‘ breach ‘ our clients face when they apprise us of being in a ‘ special loan’ scenario.

What we won’t be sharing with you is of course why the bank has acted as they have, that’s between you and them. But here’s the good news, that there are immediate solutions to the special loan scenario, and they are available to your firm today!

The alternative of course to exiting special loans with a new operating facility is staying in special loans. Not recommended. It might work sometimes – over time the relationship is mended and you go back to your traditional bank financing facility.

However we’re assuming your company doesn’t want to stay in a special loan scenario, and you agree that your bank loan called is a reasonable reason to seek turnaround financing.

Clients in, or being told they are going into special loans are always in a minor state of shell shock – A typical reaction is simply ‘ If my bank has called my loan who else would even consider refinancing us? Again, asset based lending to the rescue.

The reality – replacement financing is available, it may come at the same cost, it may comes at a lower cost, but more likely it’s going to be a higher priced facility until your turnaround strategy is in place .

Two key alternatives are available to your firm, and they come in the form of an asset based lending facility. That typically is a non bank entity, and the specialization is totally focused on their ability to understand that you have viable assets – they typically include receivables, inventory, and fixed assets/equipment.

We say ‘ two alternatives ‘ because the size of your operating facility request will determine if you are ready for a true asset based line of credit, or if a working capital facility with a smaller firm is in fact the turnaround financing you need .

Many firms want to exit special loans simply because of the stigma. We don’t want to dwell with clients on how you got there; we want to ensure you have a clean exit out with a new cash flow facility that works. That allows you to rebuild your firm and focus on growing and generating profits again.

Several other alternative financing strategies can be implemented to generate cash and working capital in challenging times – they include:

Sale leasebacks

Tax Credit Financing

A/R factoring

PO / Supply Chain Financing

Speak to a trusted, credible, and experienced Canadian business financing advisor who can assist you in your special loans exit strategy via a true asset based lending solution.


7 Park Avenue Financial :

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 – Completed in excess of 100 Million $ of financing for Canadian corporations .

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8

Office = 905 829 2653

Email =

Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop

7 Park Avenue Financial
Canadian Business Financing