It’s Easy To Go Wrong With Business Financing . Here’s How Not To!
OVERVIEW – Information on the commercial business loan in Canada. Financing loans are available through bank and non bank sources for assets and cash flow.
A commercial business loan in Canada. The ability to successfully achieve the financing the Canadian business owner or manager needs clearly eliminates a lot of the worrying around your business success.
In the case of Canada we're in a lot better shape these days than we were a few years ago. Even start ups seem to be able to get financed again!
In Canada those loans are going to come from Canadian commercial banks or non regulated commercial and alternative lenders. When we say non regulated basically we are saying ' they are not banks!”...simple as that.
Its commercial business loans that solve both survival and growth needs. Those loans cover equipment, real estate, working capital, and even acquisitions. What's important is to start the whole process even a bit before you need the financing - searching for financing in crisis mode is highly NOT recommended. That pretty well goes for line of credit facilities, which in many cases are what the business owner/manager still associates with a ' loan '.
That does though bring us to the point that it's important to understand that there is a huge difference in either term loans as opposed to monetizing current assets for cash flow - it the ' business line of credit'. It's therefore important to think of your business loans in terms of strategically acquiring financing.
So what can in fact term business loans be used for in Canada? A variety of assets can be financed- up to and including the corporate jet.
(Well we can dream can't we?!) . But typical assets financed under loans include computers, telecom assets, software, machinery, equipment, and even leasehold improvements. A great tip we can offer clients is that leaseholds up to 350,000.00 can in fact be financed at great rates, terms and structures under the Govt. SBL Business loan. Check out this loan program if you have revenues under 5 Million dollars per annum, which is the revenue cap of companies allowed to apply under the program.
At the outset of a business loan have a strong sense of the term of the loan. That is going to play into the lenders cash flow analysis, and at the same time you want to be able to match the term of the loan with the useful economic life of the asset. That same tip goes for lease financing those assets also by the way.
Bridge loans are offered by alternative and other lenders as a way of acquiring assets you normally might not be able to finance through a bank. In some cases you might even be exploring a sale leaseback to generate cash flow out of assets already owned. When it makes sense, key word ' makes sense ‘! that's a great way to generate cash flow. Remember also that you will need to have a strong sense of market and liquidation value when it comes to financing pre-owned or used assets. That’s a critical part of the lender equation.
One final tip we always talk to clients about is the concept of ' matching'. Simply speaking it means ensuring that you financing long term assets with long term financing vehicles such as a business loan. To put it more simply, don't finance that corporate jet out of the line of credit
In Canada business loans come from banks, leasing companies and asset based lenders. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with you commercial business loan needs.
CANADIAN COMMERCIAL BUSINESS LOAN EXPERTISE
Stan Prokop - founder of 7 Park Avenue Financial –
http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/commercial-business-loan-loans-canada.html
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
Stan Prokop
