CLEVER CAPITAL FOR GROWING COMPANIES

LIMITED PRESSURE ON CASH FLOWS * UNLOCKING ENTERPRISE VALUE * TIMELY CAPITAL * ENABLING TRANSFORMATION * STRATEGIC PARTNERSHIP

FirePower’s Private Capital division is a specialist Gap DebtTM lender to fast-growing companies that have limited tangible assets on their balance sheets. We directly invest in and partner with them, by structuring creative debt solutions to help them achieve their growth objectives.

WHAT IS GAP DEBT?

Gap DebtTM characterizes loans of $0.5-5m to growing companies that have strong operating cash flows, or have exceptional short-term visibility into those cash flows, but with limited tangible assets. In other words, they are promising, healthy companies that falls outside the parameters of traditional lenders.

EXAMPLES OF COMPANIES THAT CAN BENEFIT FROM GAP DEBT

  • A developer of e-commerce enterprise software for small to medium-sized merchants.
  • Demonstrated significant revenue traction since launch; required $1.0m to grow internationally and develop new software modules.
  • Revenues of c. $3.0m (all recurring), with breakeven EBITDA.
  • A multi-location, premium childcare services business.
  • Had proven the premium business model at 4 locations; required $0.8m to build 3 new locations.
  • Revenue of $10.0m, with EBITDA of $0.7m.
  • A mobile advertising marketplace, linking brands and their agency partners to optimize the delivery of advertising.
  • Had reached critical mass on its marketplace, and required $2.0m to continue product development.
  • Revenue of $8.5m, with EBITDA of $2.5m.
  • A specialized equipment manufacturer.
  • Doubled in size for a few years in a row; required $2.0m to fulfill customer orders and meet working capital requirements.
  • Revenue of $6.0m, with breakeven EBITDA.

WHY ARE GAP DEBT PROVIDERS SCARCE?

Conventional thinking is that it is not economically feasible to dedicate the top-notch lending expertise that is necessary to assess smaller transactions that are complex and need a tailored approach to meet a borrower’s requirements. In Canada, furthermore, that expertise is generally not available.

We did away with this thinking. We invest heavily in our technology and our processes, such that we are solving the scalability issues that have plagued Gap Debt lending. In doing so, we have attracted deep, specialist knowledge and experience—an unmatched team in Canada. Lastly, our corporate culture celebrates data-driven and scalable entrepreneurship, which makes us a solid long-term partner to help our borrowers grow.