Business Financing Options Are Worth More To Your Business Than You Thought. Finance Sources 101

Heres A Backdoor Entry To Business Finance Options In Canada


OVERVIEW – Information on business financing options in Canada. Knowing Your Finance Sources And Their Value .. Counts!




How much are Business Financing Options worth to the Canadian business owner/ financial manager. Top experts agree it’s quite a bit, so let’s provide the owner / manager with some privileged ' backdoor entry' into some key information and source for financing your business in Canada. Let's dig in.


The issue of knowing where your capital is coming from (term debt or operating cash flow) is pretty well top of mind for most business owners, whether they are in start up, or growth mode. The reality is that depending upon the type of business and industry you is in there are different levels of capital need. It goes all the way from one extreme to the other, capital intensive businesses, or high cash flow / working capital needs based on investments in receivables, inventory, technology, etc.

There is no discussion on Canadian business financing in Canada that happens without talking about the pros and cons of chartered bank financing for commercial loans and operating lines of credit. While large credit worth corporate borrowers have really unlimited access to bank capital the challenge for business in the SME / START UP sectors is much greater. There the focus is on personal credit history of the owners, collateral, length of time in business, etc.

Very few transactions in SME banking are done around inventory financing, equipment finance, and equipment lease needs. In fact, while some of the banks have their own independent leasing divisions the great rates and structure they require necessitate you moving your entire banking relationship over to them, which often is undesired or impractical.

Business owners in start up or SME (Small to medium enterprise) sectors should always also be cognizant of their personal credit history status. Banks and other lenders often immediately disqualify a borrower who has unsatisfactory personal credit history. TIP: Credit bureau scores of 650+ are typically desired.

One of the great mistakes business people make is to not have a plan for growth. Often that revolves around having a solid business plan and cash flow forecast, the latter being more important in some ways. Knowing when you will need more financing is a valuable commodity in business.

Because many business owners don’t understand their alternative financing options they spend a lot of time chasing ' equity or venture captial'. If the business owner takes some time to understand how private equity groups and VC's work they will save themselves a ton of time and understand very quickly that only 1% of all transactions submitted in this sector get financed
. Do we even need to mention that giving up equity in early stages of your business dilutes ownership and future returns on your work and investment?
Hopefully not.

What then are the alternate sources of capital for business -?

They include:

A/R Financing
Inventory finance
Asset based non bank lines of credit
Sale leasebacks
Tax Credit Financing
Unsecured Cash flow Loans
Bridge loans
Royalty finance schemes
Govt SBL loans - Hint - They are not offered by the govt itself!

So whether you are going in the front door of a Canadian bank or the back door via alternate finance strategies seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your finance sources that make busines financing options make sense.



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 – Canadian Business Financing Options Expertise





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CONTACT:
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