Alternative Financing Could Be the Key to Long-Term Profitability

Gaining access to financing can be challenging in the best of times, so you’d be forgiven for thinking it’s not in the cards during a global pandemic. However, this assumption couldn’t be further from the truth. Glenn Bowman explains why and provide examples of organizations that have obtained the financing they need, despite the pandemic.


In today’s climate, there is actually a surplus of liquidity—thanks, in large part, to a variety of alternative lenders in the market. Consequently, depending on your industry or specific financing need, chances are high there’s at least one lender out there that specializes in just that—and they can help you realize your goals for business growth or profitability. 

AUTHOR
Glenn Bowman
Senior Managing Director

Glenn is a Senior Managing Director and leader of the Corporate Finance practice of Farber. His practice focuses on advising clients on acquisitions and divestitures—covering a broad array of industries from owner-managed businesses to multinational corporations—private debt and equity financings, financial restructurings, business and securities valuations, and fairness opinions.

If you’re wondering if today’s lending environment is conducive to your needs, consider these examples of businesses that acquired funding over the last few months: 

  • a manufacturing client, who ran into supply chain issues after the pandemic hit, was able to close an onshoring transaction—allowing it to expand its North American manufacturing capacity and domestically produce the regulated product it needed. 
  • after getting turned down by its bank and mortgage lender, an automotive metal stamping company accessed the $2.5 million it needed to re-tool for a new contract—thanks to a loan from an asset-based lender that specialized specifically in financing equipment and real estate.   
  • to pay off a legal dispute, a not-for-profit academic institution found a non-traditional lender willing to provide bridge financing for one of its real estate assets. The arrangement allowed the institution to resolve its court case and ultimately pursue a conventional mortgage afterwards.  

While your needs may not resemble the examples listed here, it’s still likely that an alternative lender can help. Today’s alternative lenders have extensive knowledge in their fields of expertise and can react quickly to provide creative financing. The pandemic has also made them more amenable to different lending opportunities and more willing to offer unconventional forms of working capital financing.  

Relationships matter 

If you’re having a difficult time finding financing for your business, you’re not alone. In fact, most business owners don’t know where to start once they’ve been turned down by their primary bank. As mentioned, an alternative lender may be your best bet. However, where do you find one that knows your business? 

As business owners, there’s a lot on your plate and looking for financing options is a full-time job on its own. The right financing partner not only has the time, but strong relationships with many debt and equity lending partners throughout Canada and the US. They can assist you in sourcing and structuring the financing that will fit your business requirements in the current environment.  

The financing you need is right around the corner—you just need someone who knows where to find it. 

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Our Contributors

Glenn Bowman is a Senior Managing Director and leader of the Corporate Finance practice of Farber. His practice focuses on advising clients on acquisitions and divestitures—covering a broad array of industries from owner-managed businesses to multinational corporations—private debt and equity financings, financial restructurings, business and securities valuations, and fairness opinions. Glenn can be reached at gbowman@farbergroup.com or at 416.496.3192