Recently Funded•Brampton
Brampton Grocery Store Business Purchase Approved by Bank Using DSCR and Cash-Flow Analysis
A Brampton client was purchasing a grocery store. This was a business purchase only, and no real estate was involved. In this kind of transaction, the financing is based on the strength of the business. Lenders assess the cash-generating capacity of the business, identify operating expenses, and determine whether the business can service the proposed debt. Common expenses include rent, utilities, inventory purchases, salaries, subcontractors, repairs, maintenance and insurance. Many lenders like to see a DSCR around 1.25, although the required ratio varies by lender and industry. In this case, the client put down 25%, the inventory and equipment were appraised, a business plan with projections was prepared, and we obtained approval from a bank.
- Solution
- Bank business loan
- Purpose
- Bank business loan for grocery store purchase based on cash flow, DSCR, appraised inventory, appraised equipment and business projections
Brampton Ontariobusiness loangrocery store purchase
Read the case study →Recently Funded•Mississauga
Mississauga Delivery Service Partner Approved for Working Capital with Fleet Leasing Strategy
A Mississauga client operated a delivery service business under contract with a major online retail platform. She approached us for working capital financing. We reviewed her cash-flow analysis, business strength, contract quality, personal net worth and overall repayment capacity. The strong point in the file was her contract with the major online platform. While preparing the file, we also realized that her business maintained a fleet of more than 30 cargo vans. She had been financing these vans through dealer loans, which added cost. Since she usually kept each vehicle for about a year and then replaced it, we recommended that she explore a fleet leasing line from the same bank because it could better match her business model and reduce financing cost.
- Solution
- Bank business loan and fleet leasing review
- Purpose
- Bank working capital financing with fleet leasing line recommendation for cargo van fleet
Mississauga Ontariobusiness loanworking capital
Read the case study →Recently Funded•Maple
Maple B-Lender Second-Position HELOC for Business Investment
Clients in Maple wanted to take equity out of their home to invest in their business. The husband was self-employed, and the wife was a homemaker. Their bank could not offer a HELOC because the husband’s T1 income was not enough to support the application. We reviewed the business and found that the nature of the business involved a lot of customer payments through e-transfers. After reviewing 12 months of bank statements, we identified strong cash flow. Instead of recommending a private mortgage, we recommended a second-position HELOC from a B lender. It was cheaper than a private mortgage, had no annual renewal fee in this structure, could be repaid anytime without penalty, and gave the clients the option to use the credit again if needed.
- Solution
- B-lender second-position HELOC
- Purpose
- Equity take-out for business investment
Maple OntarioB-lender HELOCsecond-position HELOC
Read the case study →Recently Funded•Mississauga
Mississauga Private Mortgage for Foreign Self-Employed Income and Business Investment
A client in Mississauga owned a business in Nigeria and wanted to access approximately $400,000 of home equity to invest back into that business. The file was difficult because the income was foreign self-employed income. Conventional lenders may be more comfortable with foreign salaried income where employment can be verified, but foreign self-employed income is much harder to use. The file also had a use-of-funds challenge because the mortgage proceeds were intended to leave Canada. The property had a very low loan-to-value, so we arranged a private mortgage supported by the collateral strength.
- Solution
- Private mortgage
- Purpose
- Equity take-out for foreign business investment
Mississauga Ontarioforeign self-employed incomeNigeria business
Read the case study →Recently Funded•Ottawa
Ottawa Second-Position Private Secured Line of Credit for New Business Owner
A client in Ottawa had recently left employment to start a new business. With no current job income, conventional financing was not the right fit, but the client owned real estate and wanted access to funds to support personal expenses and business cash flow during the early stage of the business. Instead of arranging a regular second mortgage, we recommended a private secured line of credit in second position. This gave the client access to funds when needed while charging interest only on the amount actually used.
- Solution
- Private secured line of credit
- Purpose
- Personal and business liquidity support
Ottawa Ontariosecond mortgagesecured line of credit
Read the case study →Recently Funded•Richmond Hill
Richmond Hill Private Mortgage on Rented Office Building for Business Investment and Debt Consolidation
A Richmond Hill client owned a rented office building that already had a small private mortgage on it. She urgently needed money to invest in her business. A-lender and B-lender financing were not available because her credit score was low. We arranged a private mortgage that was sufficient to cover the business investment need and also provided extra proceeds to consolidate debts. We deliberately structured the loan this way because the exit strategy was to refinance from the A side once her credit score improved. For that future refinance to become realistic, debt consolidation was necessary.
- Solution
- Private commercial mortgage
- Purpose
- Business investment, debt consolidation, and future A-lender refinance planning
Richmond Hill Ontarioprivate commercial mortgageoffice building
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