We’ve been growing with our customers for a long time. A number of years ago, the National Post ran an article on Jonathan. This article remains a good summary of the alternative financing solutions Jonathan and his team offers, who now operate under the name Capitally Finance Corp.:
“The goal was to create an entity that would provide small- and medium-sized businesses with the financial resources they needed to tide them over before their receivables were paid. ‘It’s an attractive business because factoring suits so many companies,’ said Brindley, a chartered accountant turned entrepreneur, at the time.
“[The company] now defines itself as “a full-service working capital and trade finance company,” that also provides “asset-based lending, purchase order financing, inventory financing and equipment leasing.”
Brindley, who… opened an office in Calgary, puts the firm’s expanded focus down to ‘growing with our customers. We have to provide multiple financing options for entrepreneurs. One size does not fit all.’
Customer Impact
“In some cases the numbers are large. Consider Mayhew, a Toronto-based company that’s been around since 1934 and which designs work spaces. In the spring of 2015, things were desperate: lagging revenue and problems with its major supplier led to a restructuring. And it needed capital. [The company] stepped in and provided a $5.5 million asset-based facility that allowed the company to repay the bank and provide working capital. Over the next two years, [they] provided bi-monthly fundings and more than $40 million of revolving credit.
“’We would not be here today, were it not for Jonathan and the team…. They were so responsive and it was very easy to see how he was going to restructure the loan,’ said Marcia Mayhew, the chief executive. Now Mayhew doesn’t have any bank debt.
“In other cases, Brindley’s customers have outgrown the need for factoring — even though half his business is still coming from factoring. But to stay in the factoring business, Brindley has to find new customers each year.
“One of his factoring successes was with Dig it Apparel, which appeared on Dragon’s Den a few years back and secured a $50,000 investment from Kevin O’Leary. (That investment has since been acquired.)
But it was short of cash when it received a $400,000 order from Home Depot. So Brindley provided a $300,000 factoring and purchase order credit facility. Nine months later the facility was repaid. Claudia Harvey, chief executive, said the financing ‘allowed the company to go from a start-up to a going concern,’ and to be eligible for a bank credit facility. “It was a great experience,” she said.
With offices in Ontario for 13 years and Alberta for many years as well, Capitally works in provinces across Canada (excluding Saskatchewan and Quebec).
