Private Lending for Entrepreneurs Emerging from Bankruptcy or Consumer Proposal
At Assadi Private Capital, we provide real estate-secured loans to business owners who are working to regain control after insolvency. If your client has recently completed a consumer proposal or bankruptcy, or is in the final stages of doing so, we may be able to offer short-term capital to help them relaunch or restructure their business, with proper legal clearance and asset-based security.
These are not personal-use loans. They are business-purpose mortgages designed to unlock equity for entrepreneurial recovery, bridge liquidity gaps, or facilitate new income generation post-insolvency.
We work exclusively through licensed mortgage brokers, Licensed Insolvency Trustees, and legal professionals.
What Are Business-Purpose Insolvency Exit Mortgages?
These are short-term loans secured by real estate, typically the borrower’s residence, a rental property, or a commercial asset, and used for legitimate business or investment purposes. Common uses include:
• Purchasing new inventory or equipment for a business that has survived bankruptcy
• Restarting a sole proprietorship or partnership that was previously closed
• Launching a new business under a different structure, once legal restrictions are lifted
• Satisfying outstanding proposal payments to obtain a certificate of full performance
• Creating liquidity while waiting for a post-discharge bank loan or investment capital
The key requirement: the funds must be for business use, not personal spending.
Who This Serves
• Entrepreneurs who need startup or relaunch capital post-bankruptcy
• Borrowers completing a proposal and needing bridge financing
• Self-employed individuals rejected by banks due to credit history
• Trustees seeking practical ways to support exit plans and economic recovery
• Brokers with complex clients who have equity but no conventional options
Lending Criteria
• Loan Amounts: $50,000 to $250,000 (case-by-case flexibility)
• Security: 1st or 2nd mortgage on real estate in borrower’s name
• Maximum LTV: Typically 65% or lower depending on location and exit
• Term: 6–18 months, interest-only
• Usage: Must be documented and for business purposes only
• Appraisals: Full, “as-is” market value with valid certification
We may also accept co-signers or additional collateral if the file requires creative structuring.
Why Banks Say No , and Why We May Say Yes
Canadian banks and “B” lenders rarely offer financing to borrowers who have been discharged from bankruptcy or proposal within the last two years. Credit score, recent defaults, and business volatility make these files unapproachable under conventional guidelines.
However, if your client has:
• Equity in real estate
• A viable business plan
• A trustee or legal advisor who supports the transaction
• A defined exit strategy, such as refinancing or increased cash flow
…then the deal may be fundable on an asset-based, private basis.
How We Work With Professionals
We do not deal directly with borrowers. All inquiries and submissions must be made through a licensed mortgage broker, LIT, or lawyer.
We work in a collaborative manner with insolvency professionals to ensure:
• Compliance with the Bankruptcy and Insolvency Act
• Trustee awareness and (where necessary) consent
• Clear disbursement of funds for proper business use
• Full disclosure of terms to all parties involved
Our goal is to support, not circumvent, the formal recovery process.
Start a Conversation
If you are handling a file involving a former or current insolvency client who owns real estate and needs business-purpose capital, we are ready to assess it. We fund across Canada, with particular experience in Ontario, Alberta, and Manitoba.
Contact us to discuss the file or submit a summary via our website. We will respond promptly and can typically issue terms within 48 hours of receiving a complete submission.