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Knowledge-Based Industries

Frequently Asked Questions

 

Answers to common questions about RBC Royal Bank's Knowledge-Based Industries Group

  1. How do you determine if a company is a KBI?
  2. A number of Canadian banks claim to be specializing in services for KBI companies. What makes RBC Royal Bank unique?
  3. What are some tangible examples of the ways RBC Royal Bank can benefit my company?
  4. My business is cross-border. How can you help with my US banking needs?
  5. My business involves exporting. How can you help?
  6. I need equity. Can RBC Royal Bank help?
  7. Can I tap into the Royal network to sell my product or service?
  8. What types of financing do you provide technology companies?

1. How do you determine if a company is a KBI?

KBI is an umbrella term we use to describe growth companies in emerging market sectors which are:

  • heavily R&D oriented
  • highly innovative
  • export oriented and
  • have high growth potential

At RBC Royal Bank, KBI encompasses companies in the following sectors:

2. A number of Canadian banks claim to be specializing in services for KBI companies. What makes RBC Royal Bank unique?

Experience.

RBC Royal Bank is the leading provider of financial services and support to Canada's Knowledge-Based Industries, and was first to support these key industries. Since that time, we have gained the experience and expertise necessary to provide customized solutions to meet the complex needs of KBIs. Many of our account managers have technical degrees and entrepreneurial experience working in KBI sectors which means they have a head-start in understanding your business.

Our dedicated team of KBI account managers is located in 20 cities across Canada. RBC Royal Bank KBI account managers have developed best practices in helping KBI companies face common issues such as:

  • Valuing intellectual property
  • Managing volatile cash flows
  • Leveraging investment tax credits
  • Taking advantage of government funding programs
  • Managing foreign exchange risks
  • Tapping into KBI networks and associations

3. What are some tangible examples of the ways RBC Royal Bank can benefit my company?

The success of our KBI clients is the reason why our KBI initiative has been so successful. Our KBI team has helped some of the greatest and most successful Canadian KBI companies access venture capital, enter into global markets, manage volatile cash flow, access project financing and bridge loans, facilitate IPOs, network with key industry players, and more.

Some of the recent KBI success stories we've been involved with:

  • Nelvana
  • AnorMED
  • INTELLIgene

4. My business is cross-border. How can you help with my US banking needs?

Our US Business Specialist is a resource to help Canadian companies access a wide variety of services in the United States, including commercial banking services.

Products and services also include:

  • US Dollar Accounts
  • US Dollar Corporate Visa Charge Cards
  • US Merchant Visa
  • Loans Against US Receivables
  • US Dollar Operating Loans
  • Foreign Exchange Services

5. My business involves exporting. How can you help?

Our KBI account managers understand that as an exporter, you must consider the credit risk of your foreign buyer, but it is not always possible to receive cash in advance for your goods. If you are selling products and services outside of Canada, there are several payment options available to help limit your financial risk and improve your cash flow.

  • Export Letter of Credit. Get assurance, prior to manufacturing, that you will be paid for goods upon shipment.
  • Documentary Collections. Obtain payment or acceptance of a draft before your buyer takes delivery.
  • Bid, Performance, Advance Payment Guarantees. Assure clients of your financial integrity with respect to international contracts.

You may also want to check out our recent publication "The Definitive Guide to Exporting for Small Business."

6. I need equity. Can RBC Royal Bank help?

One of the things that makes RBC Royal Bank's KBI approach so unique is our life cycle approach to helping KBI companies, from start-up to global markets.

KBI can provide introductions to groups within RBC that specialize in equity financing. RBC Venture Partners™, a dedicated team of investment professionals investing venture capital and growth equity on behalf of Royal Bank of Canada. RBC Venture Partners is focused on the financial services industry through two funds. Click www.rbc.com/vp for further information.

RBC Dominion Securities' KBI Group has led more financings, raised more capital and advised on more strategic transactions for communications, technology and life sciences companies than any other investment bank in Canada. Recent transactions range from raising private equity for some of Canada's most promising growth companies to leading Canada's largest technology IPO and arranging some of the most significant telecommunications mergers in Canadian history.

7. Can I tap into the Royal network to sell my product or service?

At RBC Royal Bank we recognize the importance of reciprocal business relationships. We've launched innovative programs to help KBI clients with leading edge technologies reach key buyers and decision-makers in our Systems & Technology group one of the largest and most sophisticated IT shops in the country. Our KBI specialists can help you make contact, to tap into a wealth of technology expertise and market feedback.

8. What types of financing do you provide technology companies?

Our KBI specialists are equipped with a variety of financing options to suit your needs. These include:

  • Operating & term loans
  • Cash management
  • Asset-based financing
  • Equipment financing
  • Corporate credit cards
  • Credit lines
  • US operating loans

Furthermore, we have developed innovative ways to accommodate the complexities of managing your business such as:

Contract/sold work-in-process financing.
Knowledge-based enterprises often encounter gaps in cash flow when they're working on long-term contracts (such as applied research contracts). Working with our partners in government, such as the Export Development Corporation and Canadian Commercial Corporation, we can provide financing to bridge these gaps.

Financing foreign sales.
We offer loans against outstanding receivables in the US and other countries including Australia, Belgium, Germany, Hong Kong and the UK. Other methods of pre-export or medium term financing are available in conjunction with our partners such as Northstar Trade Finance and the Canadian Commercial Corporation.

Financing Investment Tax Credits (ITCs).
Knowledge-based enterprises usually make significant investments in research and development. Financing ITCs is regarded as a means of financing R&D, but major changes in government regulations have made ITC financing difficult to get. We can help. We review each case individually and consider all of the factors involved, including your previous track record and who completed or audited the ITC claim.

Other financing services available to you are:

  • Commercial mortgages
  • Automotive financing
  • Equipment financing & leasing

Still have a question about RBC Royal Bank's KBI Group? Click here and send us an e-mail with your questions and comments.

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09/08/2008 14:16:59