They called it a purchase of future receivables. We called it a loan. Plus why change needs cash, and why every stakeholder needs price discovery before they will buy into a plan.

This Week

• Distressed companies have one thing in common. What they are doing no longer works, and they resist change. Change requires capital, so availability of capital is king
• Choosing a bridge or DIP lender? Price is not the first question. Is this lender a good fit for the journey? Will the capital be there when the plan needs it? Availability of capital and closing risk are my criteria

Lesson Learned: Bring Them On The Journey

• Management, the board, employees, secured and unsecured creditors, shareholders, landlords. Change touches all of them, and you cannot spring the result on them at the end
• Everybody needs price discovery. A bank will not take a haircut because you explained why. It needs the process and the journey

Struggles: A Merchant Cash Advance Fight, By ATMOG

• The funder calls it a purchase of future receivables. We say it is a loan. They register security and take personal guarantees like a lender, and the cost can run well over 100%
• They froze our client’s bank account and sued. We defended and counter-sued. For them, one more loss mattered less than a lawsuit that tested the structure of their whole industry. For us, moving on beat chasing damages. We are close to a resolution. More when it is signed

The Inner Circle: Deals & Capital

• Tuesday November 3 at 3 p.m. Eastern, now 2 p.m. in Calgary. I am presenting how I have used AI to lift our capacity, plus a pitch and a business update. Members only
• Free but not open. You register once and we review every request

Interim Credit Corp sponsors the November Social for Bay Street Fore a Cause at Taberna Social in Toronto, Thursday November 5, 5 to 7 p.m.

#Turnaround #PrivateCredit #Restructuring #SmallBusiness #MerchantCashAdvance #SinclairRange #WinningMomentum