Canadian folks here, how receptive are big banks to 70%-75% financing?

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November 23, 2023

by a searcher in Kelowna, BC, Canada

Particularly for asset light companies. I know BDC is easier to deal with on high leverage, but at their current rates, many deals become unviable. This is especially true when targeting to keep DSC below <50% SDE.

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Reply by a searcher
in Canada
I have had conversations with a few banks. Yes, BDC may be the easiest for high leverage. And you need to factor the high interest rate into the offer as it applies to everyone else.

Some teams/banks could offer 70% to 75% financing but the risk tolerance seems pretty low. A few deals I presented were rejected.

For, other teams/banks offering around 50%, you could aim for better terms such as lower interest rates and no personal guarantee.
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Reply by a searcher
in Montreal, QC, Canada
I'm based in. Quebec and interestingly it really depends of the bank you're talking to.

Local banks, at least in Quebec, are way more flexible. I've spoken to Caisse, National Bank and BDC and they all offered financing 75% with great terms. Scotia seems on the fence, still waiting. TD and Laurentian were out very quickly.

Can't speak of other provinces, but if you have credit unions or small local banks, I'd say reach out to them.
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