How private credit works at Cascade
Private credit is business lending funded by private capital rather than deposits. That lets us move faster than a bank, structure around real collateral and say yes to situations a bank’s policy manual cannot. Here is what borrowers most often ask us.
- Loans from CAD $250,000 to $10 million
- Term sheet within five business days
- Senior secured, first or second position
- Terms from 6 to 36 months
Ready to talk numbers
Send us the basics on the business, the amount and the collateral. A principal will review it personally and come back with questions or a term sheet request list within two business days.
Before you apply
What does Cascade lend against?
We lend against real assets: commercial and industrial real estate, equipment, accounts receivable and inventory. Most facilities are first-position senior secured; second-position loans are considered where the first lender is a bank and the equity cushion supports it.
Personal guarantees from principals are standard. We do not lend unsecured and we do not lend to consumers.
How fast can we close?
Initial feedback within one to two business days of receiving the basics. A term sheet typically follows within three to five business days. Funding depends on third-party items such as appraisals, title and legal, and usually lands two to four weeks after the term sheet is signed.
If timing is the whole point of the deal, say so up front and we will tell you honestly whether we can hit it.
What size of loan do you consider?
Our core range is CAD $250,000 to $10 million. Larger requests are reviewed with co-lending partners. Below $250,000 we will usually refer you to a lender better suited to that size.
Do you lend to businesses the bank has declined?
Yes, often. A bank decline is usually about policy, not the quality of the business: too much growth, a short operating history, a one-time loss, a sector the bank is avoiding this year. We underwrite the collateral, the cash flow and the plan, and we price for the actual risk.
What does a private credit loan cost?
Rates are higher than a bank line and lower than equity. Pricing depends on the collateral, loan-to-value, term and the strength of the exit. Every term sheet states the annual rate, the lender fee, legal and third-party costs and the prepayment terms in plain language, so there are no surprises at closing.
Terms, fees and structure
Who does Cascade lend to?
Established, owner-operated businesses in Western Canada with real collateral and a credible plan. Typical borrowers have been operating for at least two years, generate revenue above CAD $2 million and own or control hard assets. We lend to corporations, partnerships and holding companies, not to individuals for personal purposes.
What information do you need to issue a term sheet?
Last two years of financial statements, year-to-date internals, a current aged receivables and payables listing, details of the collateral (appraisals or purchase agreements where available), a summary of existing debt and a short description of the purpose and the exit. The more complete the package, the faster the term sheet.
Can Cascade sit behind my bank?
Yes, in the right situation. Second-position loans behind a bank work when the equity cushion is strong and the bank is willing to sign a standstill or priority agreement. We will tell you early whether the structure is realistic so you are not spending legal fees on a deal that cannot close.
What are the typical terms?
Terms run from 6 to 36 months. Bridge loans are usually interest-only with a balloon at maturity. Asset-based lines revolve monthly against a borrowing base. Real estate loans can be interest-only or amortizing depending on the exit. Prepayment is permitted on every facility with a short notice period and a minimum interest period that is set out in the term sheet.
How do fees and rates work?
You will see three numbers on every term sheet: the interest rate, the lender fee and an estimate of third-party costs such as appraisal, legal and registration. Rates are quoted as annual rates in Canadian dollars and are set per deal based on collateral quality, loan-to-value, term and the strength of the exit. There are no hidden renewal fees and no fee for a conversation.
