About Lender

Dynamic Capital is one of Canada's prominent independent inventory financing companies. Focused on term debt funding, the company is dedicated to deploying its capital effectively within the Canadian economy. With a dynamic team of solution-driven professionals, Dynamic Capital aims to provide tailored financial solutions to individual businesses across various industries.

Specializing in equipment financing, Dynamic Capital offers a comprehensive range of financial products to meet the diverse needs of its clients. From working capital loans to debt refinancing and new company acquisitions, the company's services cater to businesses at different stages of growth and development.

Dynamic Capital operates through various divisions, each tailored to specific client needs. Whether it's direct sales, structured finance, vendor financing, commercial fleet financing, or third-party originations, the company strives to break down banking barriers and provide seamless financial solutions.

Key Features

1. Tailored Financing Solutions. Dynamic Capital excels in providing customized financial solutions tailored to the unique needs of each client. Whether it's working capital loans, debt refinancing, or equipment acquisitions, the company offers personalized services to support businesses across various industries.

2. Transparent and Flexible Funding. As a "funder first" company, Dynamic Capital deploys its own capital, ensuring transparency and flexibility throughout the funding process. This approach allows for clear communication and adaptability, enabling clients to navigate their financial needs effectively.

3. Diverse Industry Expertise. With experience spanning industries such as Oil & Gas, Forestry, Transportation, Construction, Mining, Manufacturing, and Automotive, Dynamic Capital brings diverse industry expertise to the table. This broad knowledge base enables the company to understand the unique challenges and opportunities within different sectors, offering tailored solutions accordingly.

4. Proven Track Record. Dynamic Capital boasts a proven track record of successfully funded deals, showcasing its reliability and effectiveness in facilitating financial transactions. The company's history of handling various types of transactions, from CAPEX investments to refinancing solutions, underscores its expertise and competency in the field.

5. Innovative Approach to Financing. Dynamic Capital adopts an innovative approach to financing, leveraging technology and industry insights to stay ahead of market trends. By breaking down banking barriers and offering seamless financial solutions through its diverse divisions, the company empowers businesses to thrive in a dynamic economic environment.

Pros and Cons

Pros

Cons

Reliability

Dynamic Capital prides itself on its unwavering commitment to reliability and trustworthiness. With a strong track record of providing tailored financial solutions to businesses across various industries, the company has earned a reputation of trustworthy industry veterans. While Dynamic Capital does not have a presence on Trustpilot, where customers often share their experiences, the company maintains a dedicated page showcasing positive testimonials from satisfied clients. These testimonials serve as a testament to Dynamic Capital's reliability and the positive impact its services have had on businesses nationwide.

How to Apply for a Dynamic Capital Financing?

1. Initial Inquiry. Begin by reaching out to Dynamic Capital through their website, phone, or email to express your interest in obtaining financing. You can find contact information and inquiry forms on their website.

2. Consultation. A representative from Dynamic Capital will likely reach out to schedule a consultation to discuss your financing needs in more detail. During this consultation, you'll have the opportunity to provide information about your business, funding requirements, and any specific preferences or constraints you may have.

3. Documentation Submission. Following the initial consultation, Dynamic Capital will request documentation to assess your eligibility for financing. This documentation may include financial statements, business plans, tax returns, and other relevant information about your business's operations and financial health.

4. Underwriting Process. Dynamic Capital will conduct a thorough underwriting process to evaluate your loan application. This process may involve reviewing your financial documents, assessing your creditworthiness, and determining the appropriate financing structure based on your needs and circumstances.

5. Proposal Review. Once the underwriting process is complete, Dynamic Capital will present you with a financing proposal outlining the terms and conditions of the loan. Take the time to review the proposal carefully and ask any questions you may have before proceeding.

6. Acceptance and Funding. If you're satisfied with the terms of the financing proposal, you can proceed to accept the offer. Dynamic Capital will then finalize the loan agreement, and upon completion, disburse the funds to your business according to the agreed-upon terms.

7. Ongoing Relationship. After securing financing from Dynamic Capital, maintain open communication with your account manager or representative. They can provide ongoing support, address any questions or concerns, and help you navigate any changes or challenges that may arise during the term of the loan.

Conditions and Requirements

Conditions

1. Previous Credit History. Applicants may be required to meet a minimum credit score threshold to qualify for a loan. A higher credit score typically indicates lower risk to the lender.

2. Business Financials. Dynamic Capital may request financial statements, including balance sheets, income statements, and cash flow statements, to assess the financial health and stability of the business.

3. Collateral. Depending on the type and amount of the loan, collateral may be required to secure the financing. This could include equipment, inventory, real estate, or other assets.

4. Loan Purpose. Applicants must provide details about how the loan proceeds will be used, such as for equipment purchases, working capital, debt refinancing, or acquisitions.

5. Business Plan. Dynamic Capital may request a comprehensive business plan outlining the company's objectives, strategies, market analysis, and financial projections.

6. Legal Documentation. Applicants may need to provide legal documentation, such as articles of incorporation, business licenses, and permits, to verify the legitimacy of the business.

7. Personal Guarantees. In some cases, personal guarantees from the business owners or principals may be required to secure the loan, especially for small businesses or startups.

8. Industry Restrictions. Dynamic Capital may have restrictions on lending to certain industries or sectors based on perceived risk factors or regulatory considerations.

9. Loan Amount and Terms. Applicants must agree to the loan amount and terms outlined in the loan agreement, including interest rates, repayment schedule, and any applicable fees or penalties.

10. Compliance. Applicants must comply with all applicable laws, regulations, and industry standards throughout the loan application and repayment process.

11. Documentation Accuracy. All documentation provided to Dynamic Capital must be accurate, complete, and verifiable. Any discrepancies or inconsistencies may result in delays or rejection of the loan application.

Requirements

1. Business Information. Detailed information about your business, including its legal structure, industry, and years in operation.

2. Financial Statements. Recent financial statements, including balance sheets, income statements, and cash flow statements, to assess your business's financial health and stability.

3. Business Plan. A comprehensive business plan outlining your company's objectives, strategies, market analysis, and financial projections.

4. Credit History. A credit history report for both the business and any principal owners or guarantors, demonstrating a positive creditworthiness.

5. Collateral. Depending on the type of loan, collateral may be required to secure the financing. This could include equipment, inventory, real estate, or other assets.

6. Purpose of Loan. A clear explanation of how the loan proceeds will be used and how it will benefit the business, such as funding expansion, purchasing equipment, or increasing working capital.

7. Legal Documentation. Any relevant legal documentation, such as articles of incorporation, business licenses, and permits.

8. Tax Returns. Personal and business tax returns for the past few years to verify income and financial stability.

9. Personal Guarantees. In some cases, personal guarantees from the business owners or principals may be required to secure the loan.

10. Insurance. Proof of insurance coverage, such as property insurance or liability insurance, depending on the nature of the loan and collateral involved.

11. References. Professional references or letters of recommendation from suppliers, customers, or other business partners may be requested to validate your business's reputation and credibility.

12. Compliance. Compliance with any regulatory requirements or industry standards relevant to your business operations.

Ways to Receive the Money

1. Direct Deposit. The most common method is to have the loan funds directly deposited into your business bank account. This provides immediate access to the funds and allows for easy tracking of the transaction.

2. Wire Transfer. For larger loan amounts or international transactions, Dynamic Capital may offer the option of a wire transfer. This involves electronically transferring the funds from Dynamic Capital's account to your business bank account.

3. ACH Transfer. Automated Clearing House (ACH) transfer is another electronic payment option that allows for the transfer of funds between bank accounts. This method is commonly used for recurring payments but can also be used for one-time transfers of loan funds.

4. Payment Card. In some cases, Dynamic Capital may offer the option of loading the loan funds onto a prepaid debit card or a payment card linked to your business bank account. This provides immediate access to the funds for purchases or withdrawals.

5. Escrow Account. For specific transactions or projects, Dynamic Capital may establish an escrow account to hold the loan funds until certain conditions are met. Once the conditions are satisfied, the funds can be released from the escrow account to your designated account.

Products

1. Capex Financing. Dynamic Capital provides financing solutions specifically designed for capital expenditures (Capex) aimed at both replacement and growth initiatives within businesses.

2. Working Capital Loans/Leases. Businesses can access working capital through loans or leases offered by Dynamic Capital. These funds are tailored to cover day-to-day operating expenses and support ongoing business activities.

3. Debt Refinancing Services. Dynamic Capital offers debt refinancing solutions to businesses seeking to consolidate existing debts, reduce monthly debt obligations, and improve overall financial efficiency.

4. New Company Acquisition Financing. For businesses looking to acquire or merge with other companies, Dynamic Capital provides financing options to facilitate the acquisition process and support strategic growth initiatives.

5. Partner Buyout Financing. In situations where a partner wishes to exit the business or sell their stake, Dynamic Capital can provide financing to facilitate the buyout process and ensure a smooth transition of ownership.

Reasons for Getting Rejected for a Dynamic Capital Financing

1. Poor Credit History. A history of late payments, defaults, or bankruptcies can negatively impact your credit score and decrease your chances of loan approval. Dynamic Capital typically evaluates the creditworthiness of applicants to assess their ability to repay the loan.

2. Insufficient Collateral. If the value of the collateral being offered to secure the loan is deemed insufficient by Dynamic Capital, it may result in a rejection. Lenders often require collateral to mitigate their risk, and inadequate collateral may lead to a higher risk of default.

3. Limited Cash Flow. Dynamic Capital assesses the cash flow of businesses to determine their ability to repay the loan. Insufficient or inconsistent cash flow may indicate financial instability and could lead to a loan rejection.

4. High Debt-to-Income Ratio. If your business already has a significant amount of debt relative to its income, Dynamic Capital may be hesitant to extend additional financing. A high debt-to-income ratio indicates a greater risk of default and may result in a rejection.

5. Incomplete or Inaccurate Documentation. Failing to provide all required documentation or submitting inaccurate information can delay the loan approval process or result in a rejection. Dynamic Capital relies on accurate financial information to assess the viability of loan applications.

6. Unsatisfactory Business Performance. Dynamic Capital evaluates the financial health and performance of businesses to determine their eligibility for financing. A history of losses, declining revenue, or poor profitability may lead to a rejection of the loan application.

7. Failure to Meet Eligibility Criteria. Dynamic Capital may have specific eligibility criteria that applicants must meet to qualify for a loan. Failure to meet these criteria, such as minimum revenue requirements or industry restrictions, could result in a rejection.

8. Regulatory Compliance Issues. Non-compliance with regulatory requirements or industry standards may raise red flags for lenders like Dynamic Capital. Businesses with regulatory issues or legal disputes may face challenges in obtaining financing.

How to Repay a Dynamic Capital Financing?

1. Review Loan Agreement. Start by reviewing the loan agreement provided by Dynamic Capital. This document will outline the terms of the loan, including the repayment schedule, interest rate, and any applicable fees or penalties.

2. Payment Schedule. Dynamic Capital will specify the repayment schedule, which typically includes details such as the amount of each installment, the due date, and the preferred method of payment. It's essential to understand your repayment obligations and adhere to the schedule to avoid late fees or penalties.

3. Choose Payment Method. Dynamic Capital may offer various payment methods, such as electronic funds transfer (EFT), online payments, checks, or wire transfers. Choose the payment method that is most convenient for you and ensure you have the necessary funds available to make timely payments.

4. Set Up Automatic Payments. To streamline the repayment process and avoid missing payments, consider setting up automatic payments with your bank or financial institution. This ensures that payments are made on time each month without the need for manual intervention.

5. Monitor Account. Keep track of your loan account and monitor your payments regularly to ensure they are processed correctly. Review your loan statements and account activity to verify that payments are applied accurately and that there are no discrepancies.

6. Communicate with Dynamic Capital. If you encounter any difficulties or anticipate challenges in making your loan payments, it's essential to communicate with Dynamic Capital promptly. They may be able to offer assistance or explore alternative repayment arrangements to help you manage your obligations effectively.

7. Pay Off Loan Early (if possible). If your financial situation allows, consider paying off the loan early to save on interest payments and reduce the overall cost of borrowing. Check the loan agreement for any prepayment penalties or fees before making early payments.

Alternatives

SharpShooter

SharpShooter Funding is a Canadian company dedicated to offering business financing solutions for small and medium-sized Canadian businesses across various provinces and postal codes. Specializing in alternative funding options, SharpShooter Funding focuses on meeting the specific needs of Canadian SMEs. The company prides itself on its commitment to supporting the Canadian economy and providing the best service through efficient and effective business financing solutions. With a focus on transparency and customer service, SharpShooter Funding aims to simplify the funding process for small businesses, providing fast and streamlined approvals within 72 hours of application. Whether businesses require funds for equipment purchases, inventory, marketing campaigns, hiring staff, or meeting payroll, SharpShooter Funding strives to provide timely and reliable support to help businesses thrive.

RBC

The Canada Small Business Financing Loan, offered by Royal Bank, stands as a pivotal government-supported initiative aimed at nurturing the growth of small businesses across Canada. This program extends loans of up to $1,000,000, with $500,000 allocated for equipment, leasehold improvements, intangible assets, and working capital, with an additional $150,000 specifically earmarked for intangible and working capital. Serving as a vital resource for businesses in need of financial aid, the loan is notably backed by the Federal government, guaranteeing 85% of the loan amount, thus providing reassurance to both lenders and borrowers. Furthermore, businesses can benefit from flexible repayment plans tailored to their needs, including options for floating or fixed-rate interest, along with terms of up to 15 years, accommodating diverse asset classes effectively.

Merchant Growth

Merchant Growth provides a range of financing solutions tailored to suit the needs of both traditional and e-commerce businesses, offering fast funding turnaround times of as little as 24 hours. With minimum eligibility criteria, including $10,000 in monthly sales, at least 6 months in operation, and a credit score of 550 or higher, the company ensures accessibility to financing options for small businesses. Borrowers have the flexibility to secure funding ranging from $5,000 to $800,000, with customizable repayment terms. Although Merchant Growth may entail higher costs compared to conventional banks, it sets itself apart with its more inclusive eligibility requirements. Founded in 2009 by David Gens, the company has garnered recognition and accolades, cementing its credibility within the industry. Committed to providing swift funding and reliable service, Merchant Growth stands as a dependable partner for businesses in need of financial support.

CIBC

CIBC's business loans, backed by the Government of Canada, provide essential support for small businesses nationwide. With access to funds of up to $1 million, businesses can leverage these resources to invest in crucial assets such as land, buildings, vehicles, or equipment vital to their operations. Eligibility is open to small businesses or startups in Canada with gross annual revenues of $10 million or less under the CSBFP. What sets CIBC apart is its efficient application process, guided by dedicated business advisors who offer support at every step. The flexible financing terms and competitive interest rates ensure that businesses receive the financial assistance they need to thrive and expand.

Editorial Opinion

Important

How to Choose a Lender

1. Verify that the lender is registered with the appropriate regulatory authorities in Canada, such as the Financial Consumer Agency of Canada (FCAC), or is licensed to operate in your province.
2. Check if the lender is a member of reputable industry associations in Canada, such as the Canadian Bankers Association (CBA) or the Canadian Lenders Association (CLA).
3. Thoroughly review all terms and conditions outlined in your loan agreement. Understand the repayment schedule, interest rates, fees, and any penalties for late payments or defaults.
4. Ensure that the contract clearly states the annual percentage rate (APR) and the total cost of borrowing, including any administrative fees or additional charges.
5. Familiarize yourself with your rights regarding loan cancellation or early repayment. Canadian consumers have the right to cancel a loan within two business days after signing the agreement, without penalty.
6. Research the lender's reputation by checking customer reviews, complaints, and feedback on reputable online platforms, as well as through resources provided by organizations like the Better Business Bureau (BBB).

Methodology

At Finanso, we've carried out a comprehensive analysis of over 70 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

Additional Resources

Sources

• www.dynamiccapital.ca