News & Press Releases - Spara Capital Partners Inc. -... -
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Published on: 3/1/2005
Last Visited: 12/27/2005
The quid pro quo is an understanding that you'll give them more business, says Frank Hayes, president of Stanley Software Finance Inc., a Toronto-based financial consultancy and merchant bank mainly for software firms.
Another good bet is the Business Development Bank of Canada, a federal agency with the mandate to help small and medium-sized businesses.If you need short-term money beyond what your bank is comfortable lending, the BDC can offer a working capital top-up.
If that doesn't pan out, try an asset-based lender, such as Mississauga, Ont.-based General Electric Capital Canada Funding Co. or Halifax-based Congress Financial Capital Co.ABLs provide working capital secured against your inventory, which they measure far more frequently than banks do-often weekly or even daily.Because they keep such close tabs on you, "they'll lend a greater percentage against those assets than a bank would," says Hayes.
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Hayes says you may qualify for major savings by leasing from a foreign equipment maker.
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One challenge is choosing from all the organizations that love to lend against real estate, because, as Hayes puts it, "it's not going anywhere, and it's in a safe country."