Debt Financing Services in Toronto For Small to Medium-Sized Businesses
Beacon is your source for professional M&A advisory and Debt Financing services in Toronto. The M&A financial advisors at Beacon work diligently to help you maximize shareholder value while minimizing business disruption.
Your Debt Financing Solution
Businesses use capital over their lifecycle to accelerate growth. Whether you want to refinance your Corporate Debt, are looking for Mezzanine Financing to further the expansion of your business, or are considering Cash Flow financing, we can help you determine the most efficient capital structure for your business.
We boast expertise in the lower mid-market, and our experienced and well-connected team of m&a financial advisors have a history of success in providing financing and transaction advisory services.
We have deep relationships with a diverse network of capital providers that allow us to select and negotiate the best possible financing transaction for our clients. At Beacon, we arrange financing terms to position your company for continued growth.
Our Proprietary Relationships
Our years of experience and growing network have allowed us to build proprietary relationships with investors, lenders, and funds to help you with your debt investment needs.
Private Credit Funds
Commercial Banks
Finance Companies
Asset-Based Lenders
Mezzanine Funds
Family Offices
Private Equity Funds
Strategic Investors
Let Us Know How We Can Help
Our Debt Financing Services & Solutions
Beacon offers a full suite of debt financing services in Toronto to meet the varying financial needs of small to medium businesses seeking debt investment solutions. We have experience providing financing solutions for companies in all industries.
Senior debt refers to debt or financial obligations that are a higher priority for repayment.
This debt has the lowest risk because it is secured by collateral and is the highest-ranking in the capital structure.
Compared to other debts, senior debt has lower interest rates.
2ND Lien Debt is a type of debt security, also known as junior or subordinated debt.
This loan occurs after a business borrows from a first lien.
The title of this financial solution indicates the priority of repayment in the case of bankruptcy. The 2ND Lien Debt is always repaid after the first-lien debt.
Unitranche is a debt financing solution that consolidates senior debt with 2nd Lien Debt.
The interest rate for this type of financing is often the middle point between the rates associated with senior debt and 2nd Lien Debt.
This hybrid loan structure provides banks with the ability to better compete against private debt funds.
We provide Mezzanine Financing to help you further the expansion of your business.
Mezzanine debt is a debt solution that offers lower repayment priority than another debt owed by the same business.
In terms of where this loan ranks in terms of repayment priority, this loan’s priority sits below senior debt but above common equity.
Convertible debt is a financing solution where a business borrows money from investors and intends to convert the debt into equity later.
We help facilitate convertible debt solutions to help you put a plan in place for turning your debt into equity in the future.
Venture debt can be either a long three-year loan or a collection of shorter-term loans.
This type of debt compliments equity financing as it is, more often than not, senior debt secured by a business’s assets or collateral.
With structured equity, businesses can obtain the funds they need without relishing control of their company. This flexible financing solution is the halfway point between senior debt and equity financing.
Businesses often use this financing alternative when they have complex financial needs that cannot be satisfied by conventional debt solutions conventional debt solutions.
Cash flow financing is a debt solution that occurs when your business’s projected cash flow can back the obtained funds.
Cash flow refers to the volume of cash that is earned and spent by a business.
Expansion financing, also known as a business expansion loan, is a loan provided for businesses that are already established and looking to obtain funding for business expansion and accelerated growth.
Businesses require working capital for their day-to-day operational needs (rent, labour costs, materials, etc.)
Working capital loans are a debt financing solution for small businesses with unpredictable revenue looking to regulate their operations.
This is where working capital loans come in. These loans allow businesses to maintain a more predictable cash flow to regulate their earnings and production.
It is not uncommon for businesses to apply for different loans and have time between these loans when they require financing.
Bridge loans, quite literally, are funds that bridge the gap between two loans when financing is not available.
Get financing to obtain the equipment you need to maintain or elevate your daily operations and production efforts.
Beacon can help you facilitate the equipment purchase financing you need, whether you need to replace equipment, upgrade equipment, or kick start production efforts from scratch.
- Accounts Receivable Financing
- Inventory Financing
- Preferred Stock & Common Stock
- Royalty Financing
- Junior Capital
- Purchase Order Financing
Debt Financing Client Profile
Small and Medium Enterprise (SME’s) businesses
SME businesses looking for financing between $2,000,000 to $50,000,000.
Private Corporations
Private corporations in Canada and the United States.
Growing & Established Businesses
Businesses with steady funds and expanding scope.
Distressed Businesses
Businesses in need of distressed investing and/or debt financing solutions to make ends meet.
Types of Scenarios for Debt Financing
Acquisitions
Recapitalization
Syndicated Loan Advisory
Liquidity Event for Owners
Sector and Geographic Expansion
Sale of Business
Sale of Majority / Controlling Stake
Employee or management buyouts
Frequently Asked Questions About Debt Financing
Debt financing refers to any business loan or finances obtained by a business to expand and accelerate company growth. Debt financing solutions can be long term or short term.
Equity financing requires that business owners relinquish some control by selling stocks in their company. On the other hand, debt financing is financing provided to a business owner to independently obtain the funds needed to maintain or accelerate their business.
Business owners use debt financing to fund, maintain, or expand their business. Debt financing solutions can help absolve a company of debt or help them obtain the finances they need for accelerated growth.
Businesses require capital for different needs and have different capital structures and balance sheets. Some management teams are more flexible around covenants than others, depending on their future performance expectations and appetite for risk.
At Beacon, we closely work with business owners and management teams to determine what capital structure best suits our clients’ needs. Our extensive industry network of commercial and private lenders allows us to approach multiple lenders in a secure environment to ensure that our clients get the best terms possible.
The costs and timelines associated with debt financing will depend on the volume of your business’s financing needs and timeline expectations.
Contact us for an initial consultation, and we will walk you through your financing options and help you choose the one best suited to your business’s financial needs and growth expectations.
