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Recently Financed Transactions |
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$1 Million Invoice Discounting and
Inventory Financing Facility
TCE Capital was approached by the principal of a
manufacturer specializing in the design and
customization of residential and commercial
heating and cooling units.
The Bank had grown jaded with the client’s
financially indifferent results over the last
number of years. Notwithstanding the company’s
29 years of experience and a successful history,
its lenders requested a payout after the
economic turmoil of 2009 delayed a number of
customer purchase decisions.
A $1 million facility has been established
placing the company on solid financial footing
for an anticipated return to increased
production and profitability in 2010. The
additional funding has also allowed the client
to ship product to Mexico which would not have
been possible under the previous Bank funding
formula.
The principal noted that TCE Capital provides a
borrowing base increase of more than 20% and the
speed of funding and professionalism of TCE
personnel throughout were a welcome oasis at a
difficult time in the company’s history. Orders
for 2010 are coming in at a quicker pace than
expected and the time spent dealing with
financing issues is now more productively
focused on sales and manufacturing. |
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$2 Million Invoice Discounting and
Inventory Financing Facility
A public company specializing in sophisticated
software design relating to international
security systems had breached financial
covenants relating to its Bank financing due to
short term losses incurred when anticipated
orders were delayed by the economic turmoil in
2008 and 2009. |
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The Bank recommended TCE Capital as a potential
interim funder while the Balance Sheet
recovered.
TCE Capital was requested to bid, with four
other potential funders, for the business and
was successful due to its tailored
$2 million facility which allowed flexibility
and more favourable advance rates. It was a key
condition that funding be on a
non-notification basis and transparent to the
end customer.
It is anticipated that improving operating
results will lead to a relatively short period
with TCE Capital prior to returning to the Bank. |
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New
Definitions for 2010 |
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ADULT: A person who has stopped
growing at both ends and is now growing in the
middle. |
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CHICKENS: The only animals you
eat before they are born and after they are
dead. |
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COMMITTEE: A body that keeps
minutes and wastes hours. |
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GOSSIP: A person who will never
tell a lie if the truth will do more damage. |
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INFLATION: Cutting money in
half without damaging the paper. |
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RAISIN: Grape with a sunburn. |
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SECRET: Something you tell to
one person at a time. |
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TOOTHACHE: The pain that drives
you to extraction. |
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WRINKLES: Something other
people have. You have character lines. |
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YAWN: An honest opinion openly
expressed. |
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WHAT
DOES TCE CAPITAL DO?
TCE CAPITAL’S FINANCING ACTIVITIES FALL INTO ONE
OF THE FOLLOWING FOUR TYPES OF TRANSACTIONS. |
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Invoice Discounting (TCE as primary funder)
•Client does not have Bank financing.
•TCE Capital finances the client’s accounts
receivable in order to provide the day-to-day
working capital required to fund operations.
This is a straight-forward transaction where
TCE Capital is the primary funder. |
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Bulge Financing
•Client has a Bank operating line margined
against accounts receivable and inventory.
•The operating line is not sufficient to meet
the client’s growth.
•The client has surplus receivables beyond those
required for margin.
•TCE Capital finances the surplus receivables to
generate working capital.
•TCE Capital's security is registered behind the
Bank but TCE has first position on the purchased
receivables.
This is an increasingly popular type of
financing and has been utilized successfully
with all major Banks. |
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Bridge Financing
•Client has a Bank line but their facility has
been reduced or eliminated.
•The company requires a period of time to
successfully negotiate replacement Bank
financing.
•TCE Capital provides replacement funding.
•TCE Capital is now the client's primary funder
and will continue until new Bank financing is
negotiated.
This scenario is also an increasingly
popular form of financing. |
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SR&ED Tax Credit Financing
•Available to Canadian-controlled private
corporations (CCPC) for refundable tax credits
from $250,000.
•Advance rates are typically 70% of the
claim. TCE Capital will finance both the federal and
provincial portion of eligible tax credits. |
Contact TCE Capital today at (800)
465-0400 for additional information on working
capital and cash flow funding programs available
through invoice discounting, accounts
receivables factoring, inventory and SR & ED tax credit
financing. |
