subject: Business Turnaround Financing In Canada ? Loans And Finance Strategies That Make Sense [print this page] Business turnaround financing in Canada comes in a lot of different flavors. Loans and other financing and refinancing vehicles are necessitated either by a crisis type situation or sometimes just a realization by the Canadian business owner and financial manager that a drastic change is needed.
Can a finance turnaround save every company that needs it? Probably not, but the reality is that a company that can be saved does have access to viable solutions. There are all sorts of stats out that about recovery in business - we saw one report that said only about 20% of distressed firms can in fact recover.
What is the goal of the turnaround? There are probably 3 key areas that need to be addressed - return to positive cash flows, new financing, and it goes without saying some solid management savvy, new or otherwise!
While not all business turnaround financing has immediate effects just getting the company to breakeven on the road to profit and cash flow is a solid goal.
Who then are the lenders to in a financing turnaround in Canada? There are capital resources available that generally come down to two categories - traditional and alternative. What either of these two lenders look for in a business plan at this point is a recognition of the problem, a focus on new solutions... finance and otherwise.
Is there one thing that helps ensure access to financing if your firm has some serious challenges? There is, and in a word, it's ' ASSETS '! These assets allow you to address temporary solutions, with a focus on the long term goal.
Other keys areas of focus are a change in continuing negative cash flows and of course sales growth. However, at the end of the day a solution is needed to ensure that you don't run out of funds or funding.
That brings to our key subject matter, sources of creditor financing. We can summarize these sources into pretty well 5 key areas. They include:
It's probably most difficult to get Canadian chartered banks to assist in business turnaround financing - certainly more so if you are in the SME sector in Canada.
So the reality is that those other 4 key sources of financing we referred to above in fact often replace Canadian bank loans in the turnaround process.
If you're searching for business turnaround financing in Canada speak to a trusted , credible and experienced Canadian business financing advisor who you help you regain the role of ' engineer ' of your... turnaround!
