OVERVIEW – Information on short term financing techniques and options in Canada. How specialized bridge loans can help your firm today when business finance solutions demand critical attention
Business Finance needs are often driven by short term financing needs. That kind of ‘ specialized financing ‘ can sometimes best be described as ‘ out of the box ‘ strategies normally not in the realm of traditional bank financing. So how can the owner/financial mgr address the need for bridge loans and other solutions that solve immediate problems? Let’s dig in.
How then do we identify the providers of this type of financing? It’s rarely a ‘ check the Yellow Pages ‘ solution! While traditional financing is driven by Canadian banks, insurance companies, gov’t, etc it’s a challenges for firms seeking SME COMMERCIAL FINANCE needs.
We suppose you might be able to call the government BIL/CSBF program specialized finance, but it is certainly not short term in nature… in effect it’s a term loan with significant government guarantees to the financial institution providing that financing, i.e. the bank.
So while the guarantee is highly prized by the bank this clearly is not a specialized finance program that meets the needs of a short term financing which often revolve around working capital and cash flow needs.
Some situations are severe, and might even require what’s known as ‘ debtor in possession financing ‘, aka ‘ DIP ‘. This allows larger firms who have challenges to operate while in the process of making proposals or arrangements with creditors. This ‘last stand’ type of financing is clearly not where you want to be, but many medium sized and larger companies emerge successfully from this process.
What then are better options when it comes to releasing cash flow and putting the fix into working capital shortages?
The answer? Your assets! Gaining liquidity from assets that are unencumbered is in many cases the final emergency fix. Longer term assets such as equipment, real estate, etc can employ the ‘ sale leaseback ‘ scenario to release cash while still using and ultimately owning again those assets.
That’s asset monetization at its best. Almost any asset can be refinanced, including equipment, tech assets, rolling stock, real estate, etc. Either a bridge loan or a lease or mortgage can usually accommodate the financing paperwork. In certain cases appraisals might be required as they protect both the lender and the company.
Short term financing needs are often required by firms who are in the process of exiting traditional bank financing, perhaps after they have been place in ‘ Special Loans’. In effect the bank relationship is over. Asset based ‘ ABL ‘ loans are the perfect solution if your company finds itself in ‘ Special Loans ‘. Spoiler alert – it won’t make you feel that ‘ special’.
Other short term business finance solutions? They include:
SR&ED bridge loans
Short term financing in Canada is specialized… niche financing. It requires speed, efficiency, expertise in cost and structuring, etc. Speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in matters of bridge loans and specialized financing needs.
Stan Prokop – founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years – Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
7 Park Avenue FinancialSouth Sheridan Executive Centre
2910 South Sheridan Way
Direct Line = 905 302 4171
Office = 905 829 2653
Email = email@example.com
‘ Canadian Business Financing with the intelligent use of experience ‘
ABOUT THE AUTHOR
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.
7 Park Avenue Financial
Canadian Business Financing