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What Are The Options For Short Term Financing And Bridge Loans In Canada ? Specialized Financing Can Help

Guest post by: Stan Prokop

Article Overview: Information on short term financing techniques and options in Canada. How specialized bridge loans can help your firm today .

What Are The Options For Short Term Financing And Bridge Loans In Canada ? Specialized Financing Can Help

Many Canadian firms require specialized financingthat might best be described as ' outside the box ' requirements. Short term financing, such as bridge loans, solve immediate problems for Canadian business owners and financial managers.

So who are the firms that provide this type of financing? It clearly is not the government or Canadian chartered banks, so it’s often a challenge for thousands of small and mid market firms to locate specialized financing.

We supposed youmight be able to call the government BIL/CSBF program specialized finance, but it is certainly not short term in nature... in effect its a term loan with significant government guarantees to the financial institution providing that financing. 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.

It seems sometimes ironic, but firms that are significantly challenged from a financial perspective are actually the candidates for specialized finance such as debtor in possession financing (D I P) which allows a firm to operate while in the process of filing a bankruptcy proposal to creditors. Naturally the intent of this financing is to emerge as a new invigorated entity.

Essentially the financing takes a security in excess of the current secured creditors- it goes without saying a strong case must be made at this time for survival and re emergence.

So how can you release cash flow and working capital in a short term emergency type situationwith existing unencumbered assets? The answer is of course a sale leaseback scenario. Under this strategy you essentiallysell and release the assets to your lender. You are basically capitalizing on the investment you have made in fixed assets capital over the years, in effect monetizing that asset.

The good news here is that all types of assets can be refinancing under a short term financing / bridge loans strategy. That includes computing assets,construction equipment, manufacturing assets, printing equipment, and rolling stock.

Company real estate can of course be monetized in the same fashion as above , allowing you to extract anywhere from 30-75% of the value of a proper appraisal of your properly .

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.

A multitude of solutions are available to your firm under bridge loans. This might include a comprehensive based line of credit']);"> asset based line of credit encompassing inventory & equipment and receivables, or subsets of that finance such asreceivable financing,purchase order financing, or the monetization of a government tax credit such as ' SRED '.

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 who can assist you in matters ofbridge loans and specialized financing needs.

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Article Tags: bridge loans, short term financing, specialized



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grants for restaurants - Well friend I don’t have any idea about government grants for restaurants, but I will recommend that you may try on some banks who offer loans for small business where the government will have some guarantee. Beside that Restaurants business is very risky so some of banks who gave some Financing Loans they will look at on it if there is enough solid business plans.
Re: How to finance your independent movie - Hi, The video doesn't come up with its own URL... But it's the very bottom video on the page. Here's the description of it: Financing, Production and Social Impact of Feature Films Host- Carol Atwood - Founder, Spartacus Media Enterprises Panelists: Bill Johnson - Co-Founder and Partner, Inferno Distribution Steven Haft - Producer, Media Consultant Michael Goorjian - Actor, Producer, Writer
re: restaurant start-up - I'm not sure about government grants for restaurants, but my recommendation would be to approach a lender that offers loans under the Canadian Small Business Financing Loan program where the government will guarantee 85% of the loan. You can borrow up to $250,000 to finance equipment and renovations under this program. Restaurants are very risky business, however some of the Chartered Banks will look at restaurants if there is enough of an initial equity investment and you have a solid business plan (experienced management team, good concept and strategic location).
Re: What Franchisors Want From Franchisees - Thanks for the follow up Russell. I found the following tip to be especially helpful: [quote="RussellWebb":2vqd3szf]Financing arrangements will vary - if you can show that you have 20% above all of your start-up costs, this would help. The more assets you own the better.[/quote:2vqd3szf] By the way, is there a way for someone to achieve a close to "1000" credit score? I've always paid off my Visa bill and car payments on time... but I bet my credit score is not even between 800-1000. I wonder what the secret is to 1000?
Re: Kevin's Case Study #8 - How do you attract a finance expert? - I think the best way to find any reputable accountant would be by recommendation. If you cannot get one by recommendation then you should put those you narrow down your search to through an in depth prescreening process. Check the out their firm with BBB and make sure they are licensed & registered. Always check credentials and make sure they graduated from the schools they claim to have attended. Financing should be found in accordance to the type of financing you need and the type of business you are financing. You should always get prequalified before commiting to an application. You should seek out those financial institutions that specialize in the type of financing you are seeking and then check to enure they can finance your type of business.


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