| A bit more than a month ago, Capitally’s founder Jonathan was walking his dog Bailey after another busy day at the office. He came across his local MPP, who was taking down election signs following his recent victory in the Ontario election. Their chance encounter led to an important conversation about Canada’s economic future – specifically, Jonathan emphasized the urgent need to remove interprovincial trade barriers. |
| As the founder of a specialized funding provider that works closely with businesses across Canada, Jonathan understood something crucial: these internal barriers, combined with the new U.S. tariffs create both challenges and opportunities for Canadian businesses. |
| The impact is more significant than ever: – U.S. now imposes a 25% tariff on non-CUSMA compliant Canadian goods, including steel, aluminum, and automobiles – Energy products face a 10% tariff rate – Canadian-made passenger cars face tariffs on non-U.S. components, even when CUSMA-compliant – Canada has implemented retaliatory measures, including a 25% tariff on non-CUSMA compliant U.S. vehicles |
| But as the (paraphrased!) saying goes, “Don’t waste a good crisis.” While our politicians hopefully work to optimize this opportunity for positive change in how our country operates, the Capitally team is already helping businesses adapt and thrive through our comprehensive funding solutions: Invoice Factoring – Get immediate access to working capital tied up in Canadian and/or U.S. receivables – Maintain cash flow despite longer payment terms from tariff-impacted customers – Fund operations without taking on additional debt Purchase Order Financing – Secure funds to fulfill large orders despite increased purchase costs – Pay suppliers promptly to maintain preferential pricing – Take on new opportunities without cash flow concerns – Bridge the gap between supplier payments and customer receipts Asset Based Lending – Leverage existing inventory and equipment for additional working capital – Fund strategic stockpiling ahead of tariff implementation – Access flexible credit lines that grow with your business – Maintain operational stability during market adjustments Cash Flow Loans – Quick access to capital for unexpected tariff-related expenses – Fund market expansion to reduce dependency on U.S. trade – Support operational changes and supply chain modifications – Maintain growth initiatives despite market pressures Supply Chain Financing – Strengthen relationships with key suppliers – Stock up on product before price increases take effect – Accept longer payment terms while ensuring suppliers still get paid promptly – Optimize working capital across your supply chain – Build more resilient supplier networks The numbers are striking: interprovincial trade barriers currently add between 7.8% and 14.5% to the cost of goods and services, impacting our economy by more than $32 billion annually. Add the new U.S. tariffs, and businesses face unprecedented challenges – but also opportunities for those who act strategically. Just as Jonathan took that moment during his evening walk to advocate for positive change, we invite you to take a moment now to explore how Capitally can help your or your client’s business navigate these changing times. Partner with your Canadian Financial Ally Schedule a consultation with Capitally today |
