Frequently asked questions
You've got questions, and we've got answers! Learn more about junior capital financing solutions at First West Capital.
What does my business need to qualify for First West Capital financing?
Cash flow sufficient to service the proposed facility, a sustainable competitive advantage and an experienced management team.
What is the process for getting financing?
Steps to obtain financing include an initial meeting and qualification, issuing an interest letter, due diligence, approval and funding.
How does First West Capital work with my bank?
We collaborate with you and your bank when your business has financing requirements that exceed traditional financing options. We take a subordinate security position and provide your bank with an inter-creditor agreement
What information should I prepare to maximize my chances of obtaining financing?
After an initial meeting, we’ll need to see historical financial statements, a business plan and financial projections. If we proceed to a due diligence process, we’ll request additional details.
In what provinces does First West Capital provide funding?
We provide financing across Canada, and selectively the US.
What is the difference between sub-debt and mezzanine financing?
They are both term loans that are secured in second position and rely on positive cash flow rather than collateral to repay the loan. However, mezzanine financing structures include an equity or quasi-equity bonus in the return requirements.
What is minority equity?
Minority equity is patient, long term capital that grows with the value of the company. Unlike private equity, it can be bought back by the company using a redemption option.
Does First West Capital offer fixed rates?
Yes, rates can be fixed or variable.
I don’t own 100% of the company – will I still qualify for a loan?
Yes, but the facility would need to be approved by the majority of the shareholders and we require a postponement from all shareholders.
Does First West Capital finance start-up companies?
We selectively consider emerging and expanding companies for financing, however, we generally do not finance brand new companies.
Does First West Capital provide financing for personal mortgages?
No. We provide financing for owner-occupied commercial and industrial real estate only.
Where does First West Capital get its funding?
Does First West Capital do U.S.-based deals?
Can we repay early?
Yes, debt facilities can be repaid at any time upon payment of a penalty. Minority equity and equity sweeteners may be bought out at fair market value once all debts have been repaid.