A Different Approach to Financing SMEs
Acorn Partners finances Small and Medium-Sized Enterprises (SMEs)in the business-to-business sector of the market when other avenues are either not possible or not desirable.

We are able to do this for two reasons. First, our financial products are based upon principles that are successful in other sectors of the economy. Second, our products are available according to different criteria than deposit-taking institutions and venture capitalists.

Our financing is based on the same successful concepts underlying the use of a credit card. This innovation in the business-to-consumer sector of the economy benefited retailers both large and small. It decreased the burden of assessing and granting credit and freed the retailer from tying up cash to support sales. Further, not only did it stimulate the growth of firms with real potential, it reduced the barriers to growth for all.

The process is simple but highly effective. When a consumer makes a purchase on their credit card, the retailer is paid by a financial organization that is in turn later paid by the consumer, or buyer. The retailer pays a small fee for the service and the consumer, provided they make their payment on time, is not charged.

We exist to provide similar services for entrepreneurs in the business-to-business sector. Each year Acorn Partners purchases millions of dollars of invoices and SR & ED refund claims, at a discount, from small and medium-sized firms primarily located in Ottawa, Montreal, Toronto and Eastern Ontario.

The key to our willingness to do this is that the invoices are to be later paid in full by organizations that are larger and have a stronger credit rating than the one selling the invoice(s). Using the credit worthiness of customers as part of our financing criteria allows us to support entrepreneurs who would otherwise not be.

For one, we can meet the financial needs of founders and owners prior to their having demonstrated a track record. Of course, we do so thereafter as well.

What is Unique about Acorn Partners?
While our financial services are based on the successful concepts underlying the use of a credit card, the needs of entrepreneurs in the business-to-business sector of the market go beyond those of retailers in the business-to-consumer sector.

Accordingly, we have developed a specialized family of financial products collectively referred to as Sales Driven Financing©. Each product is designed to meet an entrepreneur's needs when banks and venture capital do not.

This sets us apart from banks, most angel investors, venture capitalists and even others who provide invoice discounting services.

We are unique because we:

1. Obtain funds from private investors who are willing to take greater risks than deposit takers but who seek greater security than is offered by venture capital.
2. Use a unique legal structure to apply funds.
3. Use world-wide credit insurance to eliminate the client's risk of bad debt losses when we purchase invoices from domestic and foreign firms.
4. Can work profitably with a high volume of very small individual transactions sizes.
5. Understand that timely completion of low value transactions is critical to the survival and progress of early stage firms.
6. Can start and complete those transactions in less than a week.
7. Provide a sustained and intimate working relationship with clients as frequently as demanded by their needs and the business situation.

Operational Practices
Acorn Partners is able to provide funds quickly and reliably and we can handle both high volume low value invoices as well as low volume high value invoices.

We make disbursements within five to seven working days of our initial contact with a new client and within two to three working days for existing and repeat clients. If the client's invoice is being bought from a new customer, our credit check may increase the lag time depending on our credit insurer's response to us.

The key to our performance, including reporting, is our proprietary workflow system, FOSS. Designed by Darrel Kent, it tracks each and every invoice and SR & ED claim from purchase to payment to us. It allows us to handle a large volume of small invoices and supports high volume low individual invoice value clients. Our clients get reports the day the cheque is paid to us and weekly or monthly reports as requested.