A Business Finance Strategy Doesn’t Have To Be A Long List : Growth Strategies For The SME Sector In Canada

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Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.

Thursday, October 17, 2013

A Business Finance Strategy Doesn’t Have To Be A Long List : Growth Strategies For The SME Sector In Canada

How To Design Growth Financing Strategies

OVERVIEW – Information on achieving the right business finance strategy for Canadian business owners/managers. Planning for growth strategies
might not be as complicated as you think

A business finance strategy doesn't necessarily have to be the long list of technicalities when it comes to financing the SME (small to medium enterprise) in Canada. Designing growth strategy can be a simple plan or process around getting the financing you need. Let's dig in.

While a business plan and formal cash flow forecast of needs aren't critical to your planning finance for your business they will go along way to understanding your needs, particularly the cash flow estimates which will dictate how much financing is required, and when.

Remember also that Canadian business financing comes from various sources - that includes Canada's chartered banks, commercial credit unions, insurance companies, and independent commercial finance companies - Canadian and subsidiaries of U.S. firms.

Remember also to consider some sources of financing that never make it to the top of the obvious list when the business owner of financial manager is planning financing. They include suppliers, and even the government, primarily through the BIL/CSBF program, commonly known as the SBL loan.

Don't forget also that if your firm has a research component you can file SR&ED claims, and, more importantly finance them as soon as you have filed, recovering valuable cash flow for ongoing growth and development of your products or services.

Also we are in a never ending discussion with clients on asset turnover and sales when it comes to business finance. Why? Simply because better asset utilization will increase profits and cash flow, and those profits, kept in the business, are... you guessed it... a source of financing!

When thinking about your finance needs it's important to ' bucket' those needs into the category of either debt or equity - two very different kettles o fish! How you arrange you’re financing via debt or equity dramatically affects the returns and risk to owners and other stakeholders, i.e. your lenders.

Top experts in finance always tell us that the proper use of debt in your overall capital structure is a great way to fund your operations and provide better return to owners. At the far end of the spectrum though is the fact that too much debt brings risk and potential bankruptcy when cash flow cannot repay those arrangements.

We're huge fans of asset monetization as an alternative to debt. A growing business will always have receivables, inventories, contracts, etc. Those can be financed via the bank or a non bank lender, providing you with ongoing cash flow but without taking on long term debt with fixed repayments.

Remember also that the stage your business is in actually will in many ways dictate to you what type of financing is achievable and through whom. That financing is going to come from:

Receivable finance
Inventory financing
Lease back of assets
Equipment finance
Bank lines of credit and term loans
Govt SBL loans
Working capital term loans
Mezzanine cash flow financing

The name of the game always in growth financing is to determine the amount of cash/capital you need before the crunch arrives. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with a business finance strategy and provide alternatives that 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 = Growth Financing Expertise

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