Lending Solutions

CORFinancial Corp. understands the cash-flow pressures that small to mid-sized businesses face every day.

Business Advisory & Restructuring

With our depth of resources, we provide all our clients with quality funding solutions and a hands-on approach through the entire process. These solutions are offered through both our Business Advisory & Restructuring divisions.
We take time to get to know our clients, understand their borrowing needs and what their short-term/long-term objectives are. We provide practical, flexible, and creative solutions to each client based on assets, enterprise value, borrowing needs & situation.
We offer various funding solutions/services to suit the needs for businesses across North America, with resources on both sides of the border.

Working Capital Financing

Working Capital Financing is a business loan that is used to finance a company's everyday operations.
These loans are typically used to provide the capital required to cover a company's short-term operational needs.
The loan is usually secured with collateral assets such as real estate, inventory or accounts receivables.

Benefits of Working Capital Financing

Loan to take care of short-term debts (including overdue CRA balances)

Covers day-to-day operational expenses.

Can assist with office improvements and purchasing new office equipment.

Can be critical in keeping a business operating smoothly

Bridge Loans

A Bridge Loan is a short-term loan used until a person or company secures permanent financing.
It allows the borrower to meet current obligations by providing immediate cash flow.
Bridge loans are short term, up to one year, usually with high interest rates, and are secured with collateral assets such as real estate, inventory or accounts receivables.

Benefits of Bridge Loans

Purchasing and closing on a new property while selling an existing property

Purchasing additional assets for a business and covering all costs until permanent financing is approved.

Covering daily expenses while waiting on new permanent financing to be a approved and advanced from a bank or lender

Bridging financial obligation for a business

Accounts Receivable Financing

Accounts Receivable (AR) Financing is a type of financing agreement where a company receives capital related to a portion of its accounts receivables owing.
Accounts Receivables are assets equal to the outstanding balances of invoices billed to customers but not yet paid.
AR is reported on a company’s balance sheet as an asset, usually with invoice payment required within one year. The process of AR financing is often known as factoring.

Benefits of Accounts Receivables Financing

Turning customer invoices into cash once purchase orders are delivered to those customers.

Using customer invoices as collateral to get approval for an AR financing line.

Providing customers with terms and time to pay for the orders while benefiting from the value of each invoice immediately.

Using the funds to cover operational expenses for a business.

Lenders take ownership of invoices funded, thus taking the responsibility of collecting on invoices away from the borrowing company.

Purchase Order Financing

Purchase Order (PO) Financing is a short-term commercial loan that provides a business with the capital to pay suppliers upfront to produce purchase orders for customers.
PO financing is designed for new and growing businesses such as manufacturers, distributors, wholesaler/resellers and exporters/importers that need to produce and deliver large orders.
The loan is usually secured by the customer purchase order as the collateral asset. Typically, once an order is delivered the PO financing then gets turned into AR financing and the loan is paid down when the customer pays their invoice.

Benefits of Purchase Order Financing

Using firm customer purchase orders as collateral to secure the PO Financing.

Being able to provide suppliers and manufacturers with up-front deposits to start production on firm purchase orders.

Producing and delivering firm customer purchase orders on time.

Always being current with your suppliers and manufacturers.

Equipment Financing

Equipment Financing is a loan provided to a company for the purpose of acquiring new equipment to operate their business.
This type of financing can also be used to refinance a business using the existing equipment as the collateral asset to secure the loan.
The financing is secured using the new or existing equipment as the collateral asset along with corporate and personal guarantees from the company and all owners.

Benefits of Equipment

Using existing equipment as collateral to free up cashflow for the business

Acquire new up-to-date technology/equipment for a business.

Purchase new costly equipment and pay for it over a period of time instead of having to make a large up-front payment, which could create cashflow challenges.

Take advantage of potential tax benefits with monthly interest payments on the equipment loan.

Mezzanine Financing

Mezzanine Financing is a form of funding that is positioned partway between the equity and debt financings used by a business.
It is designed to provide cash to an existing business that requires the funds to grow, or for a leveraged buyout, or a corporate restructuring.
Also known as Mezz Debt, this financing can be converted to equity if the debt is not repaid by the borrowers and business within the terms of the loan.

Benefits of Mezzanine Financing

This funding is brought in between a senior lender and ownership, also known as the mezzanine level, to assist a company with additional cashflow.

Cover business operational and expenditure needs during a restructuring/turn-a-around period.

The funding is treated as equity on the balance sheet.

Bring in the funding without giving ownership initially, however, the option to convert the debt to equity can be established with the lender at a later date.

Debtor-In-Possession (DIP) Financing

Debtor-In-Possession (DIP) Financing is a special form of financing provided for companies in financial trouble, typically during restructuring under corporate bankruptcy law.
Usually, this debt is considered senior to all other debt, equity, and any other securities issued by a company.
DIP financing may be used to keep a business operating until it can be sold as a going concern, if this is likely to provide a greater return to creditors than liquidating the company’s assets and closing down. It may also give businesses in financial trouble a new start.

Benefits of DIP Financing

Continue with the day-to-day operation of a business, keeping the business going.

Funding all costs associated with payroll, operations, and overhead requirements.

Covering all legal and consulting services required during restructuring/bankruptcy proceedings.

Provides a business with resources and time to restructure for the future.

Avoid bankrupting the company if the business owners can get restructured and funded with a new clear future business plan.

Commercial Real Estate Financing

Commercial real estate financing is a loan approved for the purpose of purchasing or refinancing a commercial property.
These properties are most often income producing properties with multiple tenants. The buyers or owners of these properties are corporations; and will be approved based on the company’s financial strength, ability to service the debt and income produced on an annual basis.
Typically, lenders like to see the Loan-To-Vale (LTV) not exceeding 70% of the property value or purchase value. The financing is secured using the property as the collateral asset, assignment of tenant rents, along with corporate and personal guarantees from the company and owners.
Owners of commercial properties generally own multiple properties and are experienced property owners. They are required to have a management team operating each property and be able to manage all maintenance and cover annual expenses to operate each property.

Property Types Include

Offices
Industrial buildings
Investment properties
Mixed-Use properties
Retail Plazas
Multi-Family rentals
Hotels/Motels

Land Development & Construction Financing

Construction Financing is usually obtained by a builder/developer or property owner to complete the construction for a development project.
Construction financing is approved and put in place once all permits and approvals from the city/municipality are issued, such as Site Plan Approval (SPA), zoning permits, and building permits.
This financing is secured using the property as the collateral asset along with corporate and personal guarantees from the company and all owners.

Property Types Include

Residential Developments
Mixed use Developments
Commercial Developments
Office Buildings
Retail Plazas
Industrial Buildings

Benefits of Construction Financing

Receive up to 95% of the Cost-To-Complete for a project.

Developers having sufficient funding to complete majority of the construction.

Complete projects in a timely manner with a trusted lending partner capable of funding all phases of the construction