Banking on intangible assets to build your business
It’s commonly accepted that banks can’t finance small to medium-sized enterprises (SMEs) these days. Many SMEs lack the traditional collateral grade assets and/or reliable cash flow that banks need to write a commercial loan or extend a working line of credit.
Regrettably, lack of bank financing forces many emerging companies to turn to alternative capital sources like hard-to-access venture capital or angel investor networks for the resources they need to grow.
The results of these capital market inadequacies are tragic. We’re losing once-in-a-lifetime opportunities to develop a new economy in Alberta. And were inadvertently selling off our family silver at pennies on the dollar to the United States or other more technology-savvy nations.
But there’s a solution. It starts with identifying and properly handling a company’s intangible assets. Let me give you an example of how capitalizing intangibles helped an SME successfully gain banking financing for its new product line.