When traditional sources of financing are not accessible due to formal requirements, we can explore alternative options such as:
Traditional means of financing may not be available or suitable for your business, which is quite common. Navigating through the complex system of alternative financing solutions and selecting the best option can be difficult and challenging. We combine our experience with an innovative and open approach to ensure your business secures the best possible solution.
Subordinated Debt and Mezzanine Financing
Rapidly growing companies often face financing needs beyond what can be secured by their assets or secured in a senior position on the balance sheet. This is when mezzanine financing or subordinated debt is explored as a possible solution. Even though the cost for this type of financing is typically higher, it may be the preferred option when compared to other options.
Asset Based Lending
Many businesses do not have and do not actually need substantial fixed assets to pledge as collateral. Alternatively, a business may have already pledged its fixed asset for financing but robust growth may demand additional financing. Examples include technology, consulting, transportation and manufacturing companies. Asset-based lending secured by inventories or receivables may be the optimal solution in obtaining financing under these circumstances.
SR&ED is a program offered by the Canadian government to support and facilitate investment in R&D. It can take up to half a year to receive the funds after filing a SR&ED claim, which can significantly affect the liquidity position of a business. However, SR&ED tax credits can be used to secure additional financing and improve the cash position of a business. Financing options usually involves a loan facility carrying interest payments only, while principal repayment is given respite until the full receipt of the tax credit. As with most alternative financing options, the outcome of SR&ED financing is determined by numerous factors that requires in depth expertise.