Performance improvement the first step to credit availability for small
TORONTO, Feb. 21, 2012 /CNW/ - Despite Canada's relatively stable
economic landscape, small public companies here are still struggling to
obtain access to credit — a critical cornerstone in their ability to
succeed, according to a study by the Canadian Financial Executives
Research Foundation (CFERF) and sponsored by Ernst & Young.
Credit availability barometer: 2011, published by the research arm of Financial Executives International
(FEI) Canada, shows that credit continues to be much easier to obtain
for companies already flush with cash. That could make this a
challenging year ahead for smaller public companies hoping to grow.
"Access to financing is the key to smaller businesses' ability to foster
innovation, attract the best and brightest talent, create jobs and — in
some cases — to even survive," says Michael Conway, Chief Executive and
National President of FEI Canada. "Companies caught in the wake of
today's tightened credit market must look further afield for financing
opportunities that enable them to grow their company and push our
The report found a majority of these businesses are turning to organic
growth — including growing their customer base and increasing their
sales — rather than focusing on mergers and acquisitions as a source of
"Building a strategic plan that incorporates new sources of funding and
is dedicated to improving company performance is crucial for smaller
companies looking to capitalize on growth opportunities in this tough
environment," says Brian Allard, Partner at Ernst & Young.
Cost-cutting and identifying operational efficiencies, as well as cash
flow and liquidity, are already focus areas for 76% of companies this
With investors' decisions often weighing on profitability, revenue, cash
flow and credit history, companies across the country were also
unanimous that those with access to credit should seize the opportunity
and line up as much financing as possible before market turmoil beyond
our borders drives Canadian lenders to scale back their financing
About the Canadian Financial Executives Research Foundation
CFERF is the non-profit research institute of FEI Canada. The
foundation's mandate is to advance the profession and practices of
financial management through research. CFERF undertakes objective
research projects relevant to the needs of Canada's senior financial
executives in working toward the advancement of corporate efficiency in
About Financial Executives International Canada
FEI Canada is the all-industry professional membership association for
senior financial executives. With 11 chapters across Canada and more
than 2,000 members, it provides professional development, thought
leadership and advocacy services to its members. The association
membership, which consists of chief financial officers, audit committee
directors and senior executives in the finance, controller, treasury
and taxation functions, represents a significant number of Canada's
leading and most influential corporations.
For more information, please visit feicanada.org.
About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and
advisory services. Worldwide, our 152,000 people are united by our
shared values and an unwavering commitment to quality. We make a
difference by helping our people, our clients and our wider communities
achieve their potential.
For more information, please visit ey.com/ca.
Ernst & Young refers to the global organization of member firms of Ernst
& Young Global Limited, each of which is a separate legal entity. Ernst
& Young Global Limited, a UK company limited by guarantee, does not
provide services to clients.
For further information:
For CFERF and FEI Canada please contact:
416-366-3007 ext. 5114
For Ernst & Young please contact:
416 943 2487
604 648 3607
514 874 4308