What’s right for your business, junior capital or senior debt? Apr 23

Junior capital explained

Having been a senior lender most of my career, I recently joined the First West Capital team because I am passionate about helping businesses achieve the next level of growth – which can include making the leap from senior debt financing to junior capital. It’s not that one is better than the other.  They both play an important role in financing a business, and, when done well, complement each other and facilitate optimal business results. So, how do you know when your business needs to make the jump to junior capital? (And what is subordinated-debt, anyway?)

Here we’ll take a look at the definitions of senior debt and junior capital, and explore how they can work together to help your business thrive. Continue Reading

Capital Insights: How lenders can handle quirky deals in a frothy market Nov 19, 2014

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Heading into 2015, it’s safe to say that Canadian banks are open for business. According to the Bank of Canada’s Q3 2014 business lenders’ survey, bankers have once again confirmed that credit markets are robust and demand for credit among Canadian companies is high.

This is good news for commercial bankers who now have a wide range of lending tools at their disposal and the strong support of their credit rooms. Intense competition has lead to the return of high leverage and covenant light structures, but there is no substitute for good advice and sound structuring when it comes to winning business. This is particularly true in the case of quirky deals. Although required less often in this type of market, sub-debt and mezzanine financing remain useful tools in deals that feature unusual elements. Continue Reading