Alternative Funding Options (AFO)
Side-by-side comparisons.
19 curated head-to-head comparisons answering the real "should I do X or Y?" question. Each page shows the matrix from the program records themselves plus editorial copy on when each wins, when each loses, and when the answer is to stack both.
5 comparisons
CSBFP and where to layer it
The CSBFP program is usually the cheapest dollar in a small-business funding stack — when it fits. These comparisons answer where CSBFP wins on its own, and where it stacks underneath a conventional senior, equipment, or working-capital facility.
- Head-to-head
CSBFP vs conventional senior — which fits?
Conventional Senior Term Loan or Revolver vs CSBFP
The Canada Small Business Financing Program guarantees up to $1.15M of bank debt for businesses under $10M in revenue. Conventional senior debt starts at $500K and runs into the tens of millions, with stricter underwriting and no government guarantee. Where each is the right answer depends on size, financials, and how the lender's credit committee will read the package.
Read the comparison
- Head-to-head
CSBFP equipment stream vs private equipment finance
CSBFP vs Equipment Finance / Leasing
The CSBFP equipment stream guarantees up to $500K of equipment debt at Prime+3%. Private equipment finance — from manufacturer captive lenders, independent equipment lenders, and bank equipment groups — runs $50K to $10M at 75–90% LTV. The two overlap in the $50K–$500K band where most owner-operator equipment purchases sit.
Read the comparison
- Head-to-head
CSBFP vs ABL revolver — different problems, different answers
ABL Revolver (Asset-Based Lending) vs CSBFP
Owners often look at both because both involve a bank, but the two programs solve different problems. CSBFP is term debt — a fixed amount, fixed amortization, drawn once, secured against equipment, leasehold, or real property. An ABL revolver is a working-capital line — fluctuating balance, secured against receivables and inventory, drawn and repaid repeatedly through the year.
Read the comparison
- Head-to-head
CSBFP loan vs SR&ED refundable credit
CSBFP vs SR&ED
Two government programs, two completely different mechanisms. CSBFP is a government-guaranteed bank loan you pay back at Prime + 3%. SR&ED is a refundable tax credit that pays cash back to the company on eligible R&D expenditures. The right answer is usually "both, for different purposes" — but the situations where one is the wrong fit are clear.
Read the comparison
- Head-to-head
CSBFP loan vs NRC IRAP contribution
CSBFP vs NRC IRAP
Both are federal programs but they sit in completely different conversations. CSBFP is a government-guaranteed bank loan for equipment, leasehold, or real property at Prime + 3%. IRAP is a non-repayable contribution program covering up to ~80% of internal technical salaries on approved R&D projects, paired with an NRC industrial technology advisor. The use case decides; they don't compete.
Read the comparison
2 comparisons
Senior + subordinated debt stack
Almost every leveraged deal — acquisition, MBO, large expansion — layers senior debt with mezzanine or private credit. These comparisons cover how the tiers price, where each tops out, and when bespoke private structures replace catalog products.
- Head-to-head
Senior debt vs mezzanine — when to stack which
Conventional Senior Term Loan or Revolver vs Mezzanine Debt
Almost every leveraged deal — acquisition, MBO, large expansion — uses both. Senior debt is the cheapest layer but covers only the first chunk of leverage. Mezzanine sits above the senior tranche at a higher coupon and unlocks the rest of the capital structure. The right ratio depends on coverage, sponsor profile, and how much equity dilution the deal can absorb.
Read the comparison
- Head-to-head
Private credit / unitranche vs mezzanine
Mezzanine Debt vs Private Credit / Unitranche
Both are non-bank debt structures used above the senior layer. Mezzanine is traditionally a discrete subordinated layer with its own pricing and covenants. Unitranche from a private credit fund collapses senior + mezz into one blended facility — simpler administration, often quicker close, sometimes more expensive on a per-dollar basis but less expensive in total when intercreditor friction is priced in.
Read the comparison
4 comparisons
Working-capital instruments
ABL revolvers, invoice factoring, revenue-based financing, and royalty deals all address the working-capital gap differently. These comparisons show how each instrument prices, who they're for, and when one is structurally wrong.
- Head-to-head
ABL revolver vs invoice factoring
ABL Revolver (Asset-Based Lending) vs Invoice Factoring & AR Finance
Both finance against receivables, but with fundamentally different economics. An ABL revolver is a loan secured by the AR — you keep the customer relationship and only pay interest on the drawn balance. Factoring is a true sale of receivables — the factor pays you upfront and collects from your customer. The right choice depends on customer concentration, margin profile, and who you want answering the collection call.
Read the comparison
- Head-to-head
ABL revolver vs revenue-based financing
ABL Revolver (Asset-Based Lending) vs Revenue-Based Financing (RBF)
Asset-based lending advances against the balance-sheet collateral (AR + inventory). Revenue-based financing advances against future monthly revenue. The two address different working-capital profiles: ABL fits B2B businesses with material receivables; RBF fits recurring-revenue businesses (SaaS, e-commerce, subscription) where the cash gap is more about timing than balance-sheet quality.
Read the comparison
- Head-to-head
Revenue-based financing vs royalty financing
Revenue-Based Financing (RBF) vs Royalty Financing
Both share an economic shape — capital advanced against future revenue, repaid as a percentage of revenue rather than fixed instalments. The difference is in tenor and cap. RBF is short-term (typically 12–24 months) with a fixed multiple cap (1.2–1.5x the advance). Royalty financing is medium-to-long-term (7–10 years or a 2–4x multiple cap) and tied to a specific product or revenue stream rather than overall company sales.
Read the comparison
- Head-to-head
ABL revolver vs conventional senior revolver
ABL Revolver (Asset-Based Lending) vs Conventional Senior Term Loan or Revolver
Both are working-capital lines from a chartered bank or non-bank lender, but they're underwritten on fundamentally different bases. The conventional senior revolver underwrites on cash-flow coverage — the business needs 1.2–1.5x EBITDA coverage on total debt service. The ABL revolver underwrites on the borrowing base — the AR and inventory secure the line, with much less weight on cash-flow coverage. The right answer depends on the balance sheet, not the income statement.
Read the comparison
4 comparisons
R&D and innovation grants
SR&ED, IRAP, the Strategic Innovation Fund, and Regional Development Agency programs all fund Canadian R&D — but they work very differently. These comparisons cover refundable tax credit vs grant, post-hoc vs pre-approved, and how they stack on the same project.
- Head-to-head
SR&ED vs NRC IRAP — which R&D program?
NRC IRAP vs SR&ED
Both are Canadian federal R&D programs but they work very differently. SR&ED is a refundable tax credit filed with the corporate tax return, claimed after the work is done. IRAP is a contribution program with up-front approval — you submit a project plan, get approved, then draw down funding as the work progresses. Most R&D-heavy businesses use both, sequenced carefully.
Read the comparison
- Head-to-head
Regional Development Agencies vs Strategic Innovation Fund
Regional Development Agency Programs vs Strategic Innovation Fund (SIF)
Both are federal industrial programs but they target very different project sizes and outcomes. The Regional Development Agencies (ACOA, FedDev Ontario, PrairiesCan, PacifiCan, CED-Q, CanNor) fund regional economic development with $25K–$10M contributions. The Strategic Innovation Fund underwrites larger industrial projects starting at $10M total project cost.
Read the comparison
- Head-to-head
NRC IRAP vs Strategic Innovation Fund (SIF)
NRC IRAP vs Strategic Innovation Fund (SIF)
Both fund Canadian industrial innovation but at very different scales and on very different terms. IRAP is mid-sized ($50K–$10M) advisory-plus-funding for R&D projects, with the NRC industrial technology advisor as a key part of the value. SIF starts at $10M total project cost and runs five distinct strategic streams — R&D, expansion, investment attraction, ecosystem, and collaboration — with a heavier application process and larger contribution sizes.
Read the comparison
- Head-to-head
SDTC clean-tech grant vs SR&ED tax credit
Sustainable Development Technology Canada (SDTC) vs SR&ED
Both fund clean-tech R&D, but SDTC is a project-grant program with up-front approval and matching-capital rules, while SR&ED is a refundable tax credit claimed in arrears against the corporate return. On a clean-tech R&D project, the CPA almost always runs both — but the eligible expenditure pools and the timing rules are different, and double-claiming the same dollar is a compliance error.
Read the comparison
1 comparison
Equipment financing
Equipment is usually the cleanest debt to underwrite — the asset itself secures the facility. These comparisons cover when CSBFP wins on cost, when private equipment finance wins on size or speed, and where conventional senior takes over.
- Head-to-head
Conventional senior debt vs equipment finance
Conventional Senior Term Loan or Revolver vs Equipment Finance / Leasing
Both can fund a large equipment purchase, but they're underwritten on different things. Conventional senior debt is underwritten on the business's overall cash flow — the bank wants to see EBITDA coverage on the proposed total debt service. Equipment finance is underwritten primarily on the equipment itself — the asset secures the facility and the LTV (typically 75–90%) reflects what the lender expects to recover at resale.
Read the comparison
3 comparisons
Pre-institutional equity
Angel introductions and equity crowdfunding both serve the gap below institutional venture capital. These comparisons cover when each route fits the business and the founder.
- Head-to-head
Angel introductions vs equity crowdfunding
Angel & Strategic Equity Introductions vs Equity Crowdfunding
Both raise early-stage equity, but the investor profile and the post-raise obligations look nothing alike. Angel introductions bring 1–5 accredited investors per round writing $100K–$500K cheques each — fewer voices, sophisticated diligence, often domain-aligned. Equity crowdfunding raises from a large pool of retail investors through a securities-regulated platform — many small cheques, simpler post-raise governance, but ongoing disclosure obligations the founder may not have signed up for.
Read the comparison
- Head-to-head
Angel equity vs mezzanine debt
Angel & Strategic Equity Introductions vs Mezzanine Debt
Two ways to fund the same leverage gap, with very different consequences. Mezzanine is debt — 12–18% all-in with a warrant — that the company repays over five to seven years; the founder keeps control. Angel equity dilutes the cap table but never has to be repaid; the angels become long-term shareholders with voting rights. The trade-off between cash cost and ownership cost is the structuring conversation.
Read the comparison
- Head-to-head
Angel equity vs revenue-based financing
Angel & Strategic Equity Introductions vs Revenue-Based Financing (RBF)
Both are alternatives to traditional debt for recurring-revenue businesses, but the trade-offs run in opposite directions. RBF takes a fixed multiple (1.2–1.5x) on the advance and gets repaid as a percentage of revenue — no dilution, no board seat, no personal guarantee. Angel investment buys equity — long-term dilution, possible board involvement, but no repayment obligation and no fixed payment that pressures cash flow.
Read the comparison
Don’t see your question?
Comparisons are curated, not exhaustive — most n×n combinations have no real search intent. If you have a specific “X vs Y” question that isn’t here, book a consultation and we’ll walk through it; common questions get added to the catalog over time.