Turnaround financing? It’s associated with financing solutions and specialist techniques when your company is addressing various situations that may or may not be a crisis situation – although it probably feels like one to the Canadian business owner and financial manager.
A turnaround financing specialist focuses on a number of different areas – it might be management, products, and sales, however we’re focusing on finance.
Clearly we can think of financing solutions as the ‘ doctor’ that will be putting your company back in order. Statistics tell us that over 50% of companies that are in turnaround mode are eventually ‘ savedâEUR(TM)
What then should be the goal of turnaround solutions when it comes to Canadian business financing? Ultimately the focus needs to be on getting your company back to some level of cash flow in order to meet your short term and long term obligations when it comes to debt levels.
ThatâEUR(TM)s âEUR~JOB #1 âEURoe! After that you want to be working with someone that has the long term solution in place, with enough financing that gets you to where your firm needs to be. In some cases you might also need new equipment and assets and production equipment. These can usually be acquired via bridge loans of equipment leasing strategies.
We often hear the term ‘ peeling back the onion ‘ and its a good analogy for our current purposes; because its all about seeing what isnâEUR(TM)t working from a cash flow and profit perspective, and then putting turnaround solutions in place.
These cash flow accelerator finance turnaround solutions might include:
Asset based lines of credit to replace existing ( or absentee) commercial bank lines ( In some cases your firm might in SPECIAL LOAN category already at your bank, and ABL lines of Credit are the perfect solution to take your company out of special loans!)
Purchase Order/Supply Chain Finance