Is it possible to get debt financing for a content business in Canada?

by a searcher from University of Waterloo

1 month ago

I am looking at a few deals which generate revenue from affiliate marketing. I am curious if anybody has been able to secure debt financing from a schedule A lender in Canada for any such deals?

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searcher from Queens University

This would be a straight cash flow deal unless the affiliate relationships are some form of recurring revenue. Even then there's a lot of nuance. Best to chat with a commercial banker with experience in financing deals within the digital space to review this specific business. If there's no reliable way to forecast the cash flows in a way that instills confidence in the stability of the business for several years out, you're facing an uphill battle.

4 weeks ago | like reply | 0 likes

searcher from Bowling Green State University

Only one way to find out - ask
I would say it will depend on the amount of debt (relative to earnings), your personal skin in the game, historical performance of the business, and your ability to run it. During my time as a lender, I wouldn't be falling over myself to do a deal for this type of company. Personally, I view them as precarious.

1 month ago | like reply | 0 likes

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