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.
Sunday, January 18, 2015
Business Loan And Capital Needs In Canada : First Hand Tips On Loans
From Scared Amateur To Successful Business Loan Recipient – Here’s How
OVERVIEW – Information on successful capital raising in Canada . Getting a business loan boil down to these issues . Secrets and common sense on loans for Canadian businesses
Business loan chances of success in Canada can be significantly improved, both in variety of options and success when the business owner/financial manager has some basics down. That changes the ' amateur ' to the ' pro ' when it comes to financing your business in the Canadian marketplace. Let's dig in.
Although larger corporations, both private and public don’t often require personal guarantees of owners that certainly isn’t the case in the SME COMMERCIAL FINANCE area. In fact both the actual issue of the guarantee and the personal credit history of the business owner/owners will affect both rate and overall approval potential in the majority of ' traditional ' ( aka ' the bank ' ) financing .
Business owners are encouraged to ensure they can convey their personal financial issues in a manner that both protects themselves to a degree as well as helps in getting financing approval at good rates. It common for owners to try and avoid pledging personal assets - in effect separating their business and personal finances - and that's a good thing!
The concept of ' Collateral ‘is critical to business loan success. In many cases it’s either a key ' requirement ' or in some cases a ' driver ' of successful capital resolution.
It's important to differentiate between different types of assets - in certain cases its fixed assets/equipment; in other cases your collateral is your working capital accounts. These are receivables, inventory, and any tax credits that might be financeable. (The most common tax credit financed is the SR&ED refundable tax credit). Don't forget also that purchase orders and contracts are financeable under the right circumstances.
What type of ' business loan' finances new or existing assets? It could be a bank term loan; a Govt guaranteed Small business loan, or even a bridge loan that is supported by hard assets. An equipment lease is not a ' loan ' per se but is always financing hard assets, including technology. The Government Small business loan provides up to 350k in asset and leasehold financing to thousands of businesses in Canada every year.
And those ' Current Assets' on your balance sheet. Financing of those should be done via:
Bank revolving credit lines
Asset based non bank business lines of credit
SR&ED Tax credit financing
If there is one ' tip ' around loans its understanding the concept of cash flow. Proving you have positive cash flow allows you to be eligible for unsecured cash flow loans. Business plans you might prepare to show the merits of loan financing to your business must include an emphasis on cash flow generation, and repayment ability.
The ability to recognize and identify the type of financing your firm is eligible for is key to capital funding success. It also saves a lot of wasted time. Identifying the right ' traditional' or in some cases ' alternative ' lender in a timely and credible fashion is key. A good analogy is that you wouldn’t go to a fast food restaurant expecting ' haute cuisine ' food and service
If you're looking to change ' amateur' to ' pro ' status in business loan and asset finance seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with capital needs.
Stan Prokop - 7 Park Avenue Financial :
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :
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