Properly Forecasting Your Business Finance Needs ?
OVERVIEW – Information on business finance solutions in Canada . Financing and funding a business is about time horizon, current and future needs , and risk.
Is there a right way and a mistaken way to finance a business in Canada? We definitely think we can show you there is ... as well as pointing out those risks and benefits. And by the way, it is in fact possible to change horses in midstream
to adapt to today’s changing times when it comes to financing your company.
As we have been prone to say lately the concept of ' term' is critical in both assessing and choosing the right business finance. By terms we simply mean short, intermediate and long term, as all of those have a number of different implications. And to compound the challenge for the business owner and manager both the type and ' term ' of the financing can impact the amount of funds that flow in and out of your business.
So what in fact are some of the things you need to consider when choosing a financing solution? There are a number of factors, probably all as equally important. They include cost/rates, the amount of risk you are taking with any particular form of finance, how your overall structure changes with any one particular sort of financing, and the amount of cash flow, working capital and profits that that financing will deliver... or take from your company!
It's easy sometimes to get confused on the time frame when you're in the middle of searching for a finance decision. We meet and talk to many clients that are looking to solve an immediate problem and somehow miss considering the growth and future of their firm. A simple example might be a banking arrangement - i.e. not considering whether you can live through the tough times based on covenants, guarantees and collateral that you have either offered up or have been demanded of you.
One of the most proactive things the business owner/manager can do is to focus on planning to be short of cash and what solutions might be available. Why? Because cash flow shortfalls always happen, for pretty well everyone!
The toughest decision many business owners have to face if giving up equity and ownership of some sort in their business because debt levels are too high or the right financing is not available.
So what are some of the short and intermediate financing solutions available - They include:
Supplier financing
Bank lines of credit
Receivable financing
Equipment leasing
Supplier financing is almost always overlooked when it comes to cash flow financing. Just negotiating better payment terms or taking supplier prompt pay discounts can save firms many thousands of dollars.
Bank financing in Canada takes many forms - when you can achieve approval. Those forms include lines of credit, term loans and fixed asset financing for long term assets.
We caution clients that the crux of the bank relationship should revolve around what you need to provide in the form of collateral, covenants, and reporting. Many Canadian business owners simply don’t know that alternative financing for their businesses can in fact be arranged outside of Canadian chartered banks. While these solutions might be more expensive they solve problems!
What financing solution suits your business? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor today.
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/business-finance-financing-funding.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
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