Canadian Business Credit - Asset-Based Lending
Asset based financing and lending is relatively new to the Canadian market and rapidly gaining acceptance. Unique to the Canadian marketplace, CIT Business Credit Canada is a strategic partnership between CIBC and CIT Group Inc. It combines CIBC's full range of Commercial Banking solutions with CIT's proven asset based lending capability customized to the Canadian marketplace.
Asset based financing may offer greater credit availability and flexibility for your business through customized loan arrangements secured by accounts receivable financing, inventory financing and fixed assets. CIT Business Credit Canada is committed to providing your company with the best overall asset based financing solution, including limited or no financial covenants and the ability to commit to, fully underwrite and syndicate large transactions.
Asset-based financing could be right for your company if:
- you are a medium to large sized business.
- you are involved in a cyclical industry or typically have lower operating margins.
- you require capital to finance sales growth, acquisition financing, debt financing or restructuring, or turnaround financing.
- you are looking to raise capital in a less costly way than bringing in an equity partner, to take advantage of growth opportunities.
Key benefits of asset based lending include
- greater flexibility than a cash flow credit model for collateral rich companies.
- fewer and in some circumstances, no financial covenants.
- greater financing flexibility on how your company can use the proceeds.
- ability to smooth out cash gaps during business cycles/seasons.
- ability to fund asset-rich growth opportunities and acquisition."