SME Commercial Finance . Beating The Challenges Of A Bank Business Loan In Canada

Is Canadian Business Financing Giving You That Weight Of The World Feeling?


OVERVIEW – .Information on SME commercial finance in Canada . How does the Canadian business owner/manager access a bank business loan and other commercial non bank financing solutions . What works .. when?




SME Commercial Finance. And by the way, what's a SME. As most of us know it’s the Small and Medium sized enterprises in Canada. Various definitions exist about the maximum size of these firms, which is usually related to employee headcount - All we know is that the ' SME' sector drives 50% or more of the entire economy of Canada.

That brings us around to the bank business loan, which is often the ' go to' strategy in the business finance challenge. Are the banks lending to start up, small and medium enterprises in Canada? They are of course, if we are to believe their websites and TV commercials!

No one disputes the strength and flexibility and pricing on Canadian chartered bank finance solutions. They are bar none the best. More often than not we think the consensus is that it’s larger corporations and public, more 'liquid' companies who seem to be benefitting from all the action. A lot of non bank commercial asset and working capital solutions are being delivered by commercial finance companies, leasing companies, etc.

One of our favorite U.S. pundits makes a strong statement on this whole issue; he recently stated that a firm’s ability to continue to generate profits and more profits and improve cash flow in fact should not have the business owner and financial manager focusing on rate.

So how does the business owner approach the whole bank business loan issue? And by the way, in many cases it’s a case of being approved for bank financing, just not enough! which is a common issue.

The actual timing of getting bank financing often is a challenge. When there’s any current economic or ' market conditions ' issues, for example the 2008 world wide collapse the timeline, shall we say... lengthens!

So how does the SME sector approach the whole issue of ensuing that current and future financial needs will be taken care of? You can start by asking yourself some key questions, such as:

Do we really understand our financing requirements? Is it a question of new debt, term loans, or monetizing current assets into cash flow? All of these come without the expense of selling or giving up more equity ownership.

How long will we need these finance requirements?

Do we truly understand the benefits, rates, payout provisions, and credit criteria and covenants related to any specific type of financing?

What bank or non bank finance can we tap to secure the financing we need, and who can help us?

Oh yes... can we reasonably expect to be approved?


In the real world (that’s where we work daily) it's all about what industry you are in, the experience of your management, and the quality of your financials as they relate to balance sheet strength and profits, or lack thereof! Remember also that each type of financing is going to come with different financial covenants and conditions.

Don't forget to consider what also happens when you achieve the wrong type of financing, or are locked into a finance solution you can't get out of. All of a sudden competitors attack and you're vulnerable.

When you are testing the market for a bank business loan, or a non bank financing solution (there are many!) consider seeking and speaking to a trusted, credible and experienced Canadian business financing advisor who can help you with that ' weight of the world ' feeling when it comes to Canadian business financing solutions that you need today .. and tomorrow.



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 :


SME COMMERCIAL FINANCE BUSINESS BANK LOAN










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