Feb. 5, 2020
FTQ Fund Invests in Briva Finance
Original article from La Presse.
Montreal-based company Briva Finance, which specializes in urgent and short-term financing for SMEs, has just secured $20 million from the FTQ Fund. The Fund is acquiring an equity stake in the Montreal company.
Briva Finance focuses on secured loans ranging from 3 to 12 months, while the FTQ Fund specializes in long-term, higher-risk investments.
There is a gap in the market when it comes to short-term financing, said Patrick McQuilken, Senior Communications Advisor at the FTQ Fund, during a telephone interview. “Part of the Fund’s mission is economic development, and the financial services sector is one of our strategic priorities.
Briva Finance was founded in 2018 by Jacques Marchand, a specialist in corporate financing and business development with experience at National Bank and private funds. Over the course of his 25-year career, he observed that while financing options have diversified and expanded through traditional banks, public companies and public funds, short-term financing—and the speed at which it can be obtained—remains lacking. By delivering loans in under 10 days, the Montreal-based company offers a service that is still relatively rare in today’s market.
It’s not that financial institutions aren’t interested in our clients’ transactions, Jacques Marchand explained in a telephone interview. Our clients are all eligible for financing. However, financial institutions simply can’t complete financing in such a short timeframe, despite their willingness to move quickly.
Jacques Marchand cites the example of a business that needs liquidity to fulfill a specific contract, buy out a shareholder, or acquire a competitor—and must act quickly to ensure the seller does not change their mind.
SMEs don’t always have access to pre-approved credit facilities that allow them to move quickly on acquisitions,
he noted.
Strong growth
Well positioned within its niche, Briva Finance is experiencing strong growth. Its founder reports that the company received close to 300 financing inquiries in 2019 for highly specific needs. Based on the company’s selection criteria, between 5% and 10% of these inquiries resulted in a completed transaction.
The SMEs seeking financing come from all sectors of the economy and typically generate revenues exceeding $10 million. The investment from the FTQ Fund will enable Briva Finance to further scale and expand this financing solution on a broader level.
