- People think that there are only two types of financing: Traditional and Equity.
- In fact, companies also have access to:
• Asset Based Financing;
• Cash Flow Financing;
• Financing based on Operations.
- We fill in the inefficiency gap in funding. We use, among others, the various types of financing available to businesses, bringing:
• Maximization of the amount of funding and/or;
• Reduction of the cost of funding and/or;
• Improvement of financial flexibility.
Our client developed a technology and was in the early days of commercialization of their product. The lack of history and capital prevented our client from having access to banking facilities, and an investor was perceived as the best solution to grow.
We found a credit facility based on account receivables. It allowed our client to achieve outstanding sales level, which quickly transformed the company profile. The company was sold successfully in less than a year!
Our client subcontracted manufacturing with a firm oversea. He was dependent on the price that was offered to him, which was linked to the level of occupancy of the supplier. Our client decided to manufacture his own products, creating a short-term pressure on its working capital.
The ability to finance its purchase orders has improved working capital and allows him to bid on deals more competitively, contributing even more to the increase in revenues.
Our client wanted to buy the building needed for its operations while retaining the financial flexibility to make acquisitions.
The search for financial partners providing this flexibility has resulted in offers fully funding the purchase of the building and an amortization period of 20 to 25 years.
Our client, a service company, increased their sales from $5M to $50M over five years. The growth resulted in higher AR and AP, and their leverage was outside standard banking range. Therefore, their credit facilities had not increased in the last two years.
By using non-conventional financing, which was not limited by the leverage ratio, the company was able to more than double the size of their credit facility.
Our client, a service company, wanted to complete the acquisition of its main competitor.
Although the size of the competitor was twice as important as that of our client, Cash-Flow Financing allowed 100% financing of the acquisition, therefore avoiding dilution to shareholders.
Our client proceeded to the implementation of a transactional website, accompanied by an ERP system and wanted to preserve its financial resources to support the growth of the company. In addition, the non-funding of these capital expenditures brought a deterioration of the fixed charge coverage ratio, which was not desired by our client.
Financing was obtained at a competitive rate, in the form of leasing, covering 100% of the cost of implementation of the systems and was repayable over 6 years, meeting the objectives of our client.
Our client suffered a disaster resulting in the destruction of its inventory at on one of his production sites. Sales and profitability were negatively impacted by the event and our client had to invest to rebuild its inventory.
Flexible financing adapted to the needs of the business was required. We got several offers meeting the company’s needs and allowing it to rebuild its inventory.
Our client, a company marketing a product in technological components, was currently finalizing an important investment from new investors.
The financing of tax credits realized in a short time, has enabled them to adequately finalize its discussions and negotiations with new investors, resulting in a significant investment.
Our client, a firm developing software, was at the commercialization stage and rapidly increasing its market share.
The use of financing, based on recurring revenues, enabled it to maximize available financing to support its growth and reduce the need for investment from shareholders.
Our client, an exclusive distributor of a new product for the Canadian market, incurred registration fees with major retailers, resulting in accounting loss for the current year. The presence of a loss has made financing less accessible and caused pressure on the company’s working capital.
Using a account receivables financing has allowed the company to continue its sales growth, and capitalize on its recent investments.
Our client was looking to achieve a second major acquisition in less than 3 years.
We compared financing offers from traditional financing, asset-based financing, cash flow financing and financing based on operations. This approach provides the best terms and conditions based on the objectives and features of our client.
Our client has obtained financing representing 100% of the amount of the acquisition AND a reduction in the company’s financing costs AND an increased of financial flexibility.