Working in collaboration with your financial institution, we can consider lending against foreign assets in many markets to support your expansion plans, including investments in equipment and facilities, as well as the acquisition of an international company.
- Build capacity. We can work with your bank to help you secure financing
- Increase your competitiveness. By helping you expand your operations, we can help your company compete in the global marketplace.
Get the financing you need
We offer innovative financing solutions for strong, mid-sized Canadian companies looking to grow their business internationally. Working in collaboration with your financial institution, we can consider lending against foreign assets in many markets to support your expansion plans, including investments in equipment and facilities, as well as the acquisition of a foreign company. This type of financing requires the support of your bank, because they must be comfortable with your company's overall debt burden, and the collateral sharing arrangements.
Structuring your loan
Financing is typically by way of a secured term loan, structured in one of two ways:
- A loan is made directly to the Canadian company in support of its foreign investment; in this case, the foreign affiliate would be required to provide a secured guarantee for the loan; or
- A loan is made directly to your foreign affiliate, secured by the foreign assets; in this case, the Canadian parent would be required to provide a guarantee, normally secured by a second lien on the Canadian assets.
Our support is contingent upon an acceptable review of risks, and is also subject to acceptable export mandate, credit assessment, and risk mitigation.
Mid-market financing solutions require:
- a strong core domestic business that will provide a solid foundation to support its international growth strategy;
- the company's commitment to the foreign operations, demonstrated by investing its own equity;
- market-based pricing, reflecting overall credit risk;
- first security position on foreign assets to be financed;
- a clear definition of financing need (sources and use of funds);
- a business description outlining its international growth strategy;
- three years of audited financial statements and interim statements;
- forecast/projections for next three years; and
- other information relevant to the specific financing request.
*Please note: In our experience, the transactional costs of doing small international loans (less than $1 million) typically outweigh the benefits. For these smaller transactions, solutions other than direct loans can be explored, such as our export guarantee, bonding, or insurance programs.
Our support will depend on the need and we will aim to fund a solution that is best for all parties including you and your bank.