Our blog highlights Canadian Business Financing solutions via receivable finance , equipment finance, working capital financing, asset based lending, business acquisition financing,franchise finance, and tax credit monetization via SRED and Film Tax Credits. Our goal is to educate and assist Canadian businesses with their financing needs. You Are Looking For Canadian Business Financing! Welcome to 7 Park Avenue Financial Call Now ! - Direct Line - 416 319 5769
Wednesday, September 18, 2013
Business Finance Options Harder To Find Than Atlantis? Alternative Financing Solutions Are The Answer
Solving The Fundamental Problem Of Business Financing Options . Hint .. It’s Alternative Finance Solutions
OVERVIEW – Information on business finance options in Canada. How alternative financing solutions via asset monetization and debt allow the business owner to avoid equity dilution
Business finance options seem harder to find these days than the lost continent of Atlantis. So when clients say that traditional solutions are no long working or accessible by them our answer is simple - consider alternative financing scenarios. Let's dig in.
Part of the problem faced by many business owners is simply time... they know they need new or better... or even ' some' business financing... they just don't know where to look for it .
In a lot of cases the entrepreneur spends a lot of time searching for equity capital and are disheartened to find out that they were so not ready for that option. By the way, equity capital dilutes ownership of course, so giving away a large piece of the pie early in your business success reduces the chances of long term return on your investment.
Many top experts feel that the equity route though is in fact better than debt or asset monetization. We respectfully disagree, as no matter how costly these solutions are... properly structured they can still allow you to achieve sales growth and profits without giving up ownership. That's our story and we're sticking to it!
No discussion on Canadian business financing can take place without talking about ' WHEN THE BANK SAYS NO ‘. We don’t think it's that complex really. As one expert puts it the business owner or financial manager fails to understand that the bank has a deal with its depositors... the money is safe and unavailable to risk start ups, early stage companies, or firms experiencing financial difficulties .
We're the first to point out that if your firm has profits, cash flow, and collateral, clean financials, etc you're 100% eligible for bank term loans and commercial revolving credit facilities.
So what are some of those alternative financing solutions that can still generate capital and cash flow for your business? They include:
SR&ED TAX CREDIT FINANCING - This financing funds your research and development
GOVERNMENT SBL LOANS
ASSET BASED NON BANK LINES OF CREDIT - (They finance inventory, receivables and equipt all in one borrowing facility
CONFIDENTIAL RECEIVABLE FINANCING
SALE LEASE BACK
What then is required to access these alternative financing solutions? In almost all cases just you’re current financials and a sales or cash flow forecast is a great start. You will not, we repeat NOT be successful if you, or your advisor can't articulate sales growth, receivable collections, gross margins, etc. That's just common sense by the way.
Asset monetization strategies will focus on your balance sheet. Hard assets can be refinanced through bridge loans or sale leaseback strategies.
Receivables of any type can easily be financed in Canada. This even includes contract monetization scenarios. And by the way, service companies can easily cash flow their A/R... your firm doesn't necessarily have to sell a hard asset product.
Yes, its true that we’ve spend hundreds of years searching for the continent of ATLANTIS. Our point - Alternative financing solutions can be found today, they are here, or just around the corner via the assistance of a trusted, credible and experienced Canadian business financing advisor.
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 :
7 Park Avenue Financial – Business Finance Options Expertise
Stan Prokop
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