Alternative financing is becoming increasingly popular as more traditional capital sources dry up. The scope of alternative financing options grows exponentially each year and we have a number of ways in which we can assist you move your business forward by engaging with the right channels.
OAKRG works with strategic partners to offer the following:
Factoring Accounts Receivable: In the absence of traditional means of borrowing, our partners step in, purchasing your receivables, providing near instant access to the capital you need. Offering either full or spot factoring, notification or non-notification, full or non-recourse, they can also finance foreign receivables, which typically most banks shy away from.
Financing Tax Credits, Tax Losses, Gov’t Grants: We can facilitate the financing of tax credits including R&D (SREDs), Film and Media. No track record is necessary – we finance first-year SRED claims. We even finance SREDs as you spend the money. Tax loss carry backs and Government Grants (including IRAP) can also be financed.
Credit Insurance: Offered in conjunction with the factoring of receivables or the Supply Chain Finance Program described below, this protects you from the credit risk inherent in your receivables. Because of their experience and professional approach, their credit insurance rates are unassailable and would not be available to you on a stand-alone basis.
Supply Chain Finance (“SCFP”): A flexible, fast and simple way to fund purchases needed for a growing business, where existing credit lines will not suffice. Purchases can be raw materials, goods for resale, supplies, capital assets or services. The program helps clients take advantage of supplier discounts, limited time offers and bulk purchasing opportunities. The only requirement is that the business be in good financial health and be credit insurable (arranged by our strategic partner). This strategy avoids the complexity and cost of P.O. Financing.
Purchase Order Financing: Where suppliers, be they domestic or foreign, require a Letter of Credit we can help. This is offered in conjunction with the factoring of your receivables. If you have purchase orders from creditworthy customers we can supply you with all the working capital you need to purchase the product from your supplier and finance the receivable from your customer.
Cash Advance: Cash advances range up to $500,000 and are provided based on expected future revenues. The rate of repayment is tied to revenues giving the borrower flexibility if revenues are not as expected. The advance is unsecured and is typically repayable over a three to eighteen month period.
Asset Based Lending (“ABL”): ABL is a specialized loan product which monetizes assets on the client’s balance sheet. Qualifying assets include A/R, inventory and in some cases equipment and real estate. The assets are pledged as collateral for a working capital loan facility providing the client with a flexible source of funding.
Revenue Based Loans: Revenue based loans are similar to Cash Advances except that the term is generally longer, the amounts are typically larger and the cost of money is less. Funding offered by our strategic partner ranges from $200,000 to $2 Million and is available to companies with annual revenues greater than $500,000. Unlike equity there is no dilution and no loss of control. The rate of repayment is tied to revenues giving the borrower flexibility if revenues are not as expected.
Leasing: We offer competitive quotes from the best funders in the country. Most of all, they make the process fast, easy and efficient for the client. On a regular basis they provide financing from $10,000 to $10,000,000 and beyond.
Bankers are in business to lend money. A bank’s primary role in the lending arena is funding growth—for example, financing the expansion of a small business that has a track record. Most banks can offer a wide variety of creative loan packages designed to help finance existing businesses. Financing from a bank is the cheapest form of borrowing. Most banks don’t make start-up loans to small-business owners unless an owner’s collateral covers 100% of the loan. Examples of such collateral include real estate, savings accounts and stocks and bonds. If the bank will lend you all the money you need to grow your business, then stay with them. We can help you manage this relationship and maximize your benefits.
Debt & Equity
WHAT IS DEBT?
Non bank debt financing comes in many forms and from many different sources, both private and institutional. We have strategic relationships with a variety of non-bank lenders and can match your requirements with the appropriate lender.
WHAT IS EQUITY?
Equity is the money that is put into your business in exchange for shares. Unlike other forms of financing it is permanent and tends to be the most expensive form of financing. If a third party acquires a 25% equity interest in your business they will be entitled to 25% of the future earnings and growth in your business for as long as it is in existence. [see more]
WHERE CAN I FIND EQUITY?
Equity can be obtained from a variety of sources. The following is just a sample:
Each one of these sources of equity has its own complexities and it is important that you engage a lawyer with experience in securities and in some cases an investment banker. We can connect you with the strategic partners who can help.
The amount of Government Assistance available to small and medium enterprises through various levels of government runs into the billions of dollars. Governments may be criticized for many things they do and don’t do, but they know that small and medium enterprises are the engine that drives growth in the economy and prosperity in our country.
WHAT IS AVAILABLE?
Government assistance can take many forms:
As you can see, the list of the different types of Government Assistance is extensive and within each category there are a myriad of different programs that may or may not be applicable to your business. Engaging a professional advisor is in our view essential to maximizing the benefit of Government Assistance. Our strategic partners have extensive knowledge in this area and a long track record of success. Their fees are often success based so that if they are not successful in securing Government Assistance for your business you don’t pay any fees whatsoever.