Cashflow challenges in the time of COVID-19
COVID-19 has created unpredictability across all industries, and the financial implications from this pandemic are widespread and still greatly unknown. Many businesses are focusing on protecting employees, understanding the risks to their business, and managing operational disruptions.
At this point in time, you may not have secured work for the upcoming months, and this uncertainty could dramatically impact your cashflow. Although most companies face challenges at any point of their business cycle, whether going through a period of growth, downsizing, or re-structuring, COVID-19 has certainly exacerbated many issues. Cashflow is always a concern for any company in any situation, but now more than ever, it should be a priority.
Frustration with existing lenders
In addition to facing cashflow issues, you may also be experiencing pain or frustration with your bank or existing lender. When lenders become more restrictive in their policies due to circumstances beyond your control, you can be left without options.
The one-size-fits-all approach that many financial institutions offer will often overlook your company’s specific needs, especially during times like these.
How we can help
There are financing solutions available to get you through challenging times – options you may not even be aware of. Given the importance of cashflow, it is imperative to develop a plan for cashflow management as part of your overall business risk and continuity plans.
This is where Canadian Equipment Finance (CEF) excels. Business owners and key decision makers turn to CEF when they need a strategic partner to help them generate cash, manage cash and replenish cash. We are able to leverage our experience and knowledge to help you avoid delinquencies, layoffs or divestments, and we offer a fresh perspective to help you succeed.
Generate cash
Diversity is key. The inherent risk in using a single lender is often tighter controls and restrictive covenants on your business. Diversity can lessen these barriers and sometimes remove them completely – giving you greater control of your financial future. In addition to this, diversity often allows for better financing structures. For example, higher loan-to-value advances can help you preserve cashflow when purchasing new or used equipment. This allows you to hold on to your cash, freeing it up for other purposes or other areas of your business.
Having worked in banks and other leasing institutions prior to forming CEF, we bring expert insider knowledge to the table and apply it to your company’s specific situation to get you the best deal. What sets us apart is we often deploy our own capital when others won’t. So, when your existing lender says no, we are often able to help.
Manage cash
Because we are familiar with the internal workings of the various funders we deal with, we’re able to advocate for you and find you the best financing structure to meet your needs. We can help you lower payments, consolidate and refinance debt, and simplify the complicated web of existing finances – ultimately putting you in a better cashflow position.
Have you considered downsizing, layoffs or divesting? Refinancing or consolidating existing debt is an effective solution that can save you from these unfortunate circumstances.
Replenish cash
Did you know you can finance equipment that you recently paid for? Replenishing cash into your company can prepare you for the unexpected. Utilizing the equity in your assets frees up cash for other purposes. Think of it as a working capital injection, where money is reinjected into your company from equipment you’ve already purchased.
Why you need a strategic partner
We understand that this is a challenging time, and we want you to know we are here for you, no matter your finance needs. CEF specializes in debt financing solutions that save you time and money. We lend to various industries including transportation, construction, forestry, oil and gas, manufacturing, aircraft, mining and printing, and we support businesses through challenging times, much like COVID-19.
Here are the major products and solutions we offer:
· Capital & operating leases
· Sale & leasebacks
· Term loans & conditional sales contracts
· Pre-approved equipment lines of credit
· Factoring lines
· U.S. dollar funding & repayment
· Equipment-backed revolvers
· Bridge financing
Do you need a smart financing solution tailored to your cashflow needs? We want to hear from you, we’re here to help! CONTACT US today.