Super Rare Shouldn’t Be Your Description Of Commercial Financing Loans From Finance Companies & Banks
OVERVIEW – Information on commercial financing in Canada. Loans from finance companies and banks are attainable with this information
Commercial financing in Canada , if you're an owner/manager in the SME Commercial area is often dubbed as ' Super Rare '! Finance companies and banks offer a multitude of traditional and alternative loans depending on various business needs. We're covering off some of the ' new rules ' around successful Canadian business financing. Let's dig in.
As we've noted, lending to businesses in the SME (small to medium enterprise) sector seems to only happen in those TV commercials and print advertisements.
For the most part the owner/manager has to reconcile to the fact that although Canadian chartered banks maintain their willingness to lend to your firm the reality quite often is that your business can't satisfy the criteria needed to achieve proper, low cost, and flexible bank financing .
Let's examine some key factors around bank loans and other commercial financing solutions. One of those is sales,
Revenues are a key driver in your ability to access business credit. Many start ups that are pre revenue or who have little revenues will find it exceedingly difficult to achieve traditional financing. It's those revenues that will create cash flow that’s mandated by banks.
Yet early stage firms can still access numerous loans from commercial finance companies. One ' hybrid' solution is the Canada Govt Small Business Guaranteed Loan Program, providing up to 350k for the purchase of assets or even leasehold improvements to your business. The ' Guaranteed ' terminology revolves around the fact that the Federal government guarantees the majority of the loan to your bank,
Canada's non brick and mortar federal crown corporation bank also provides working capital term loans and asset financing that is often complimentary to a total finance solution you require.
Other solutions that can monetize your assets into valuable cash flow include:
A/R Financing
Inventory Finance
SR&ED Tax Credit Monetization
Purchase Order Finance
Equipment Financing
Asset based business credit lines
The ability to demonstrate loan repayment is best demonstrated via a solid business plan and cash flow forecast - with emphasis on the ' cash flow ' part, not meteoric sales projections that resemble a hockey stick.
While many firms can be self financing to a certain degree at a certain point the right amount of debt , aka ' leverage ' will help grow the business faster .
A good example of ' good debt ' is equipment leasing, where certain assets you need can help you substantially grow revenues or decrease expenses.
If you're looking to ensure you've got the ' New Rules ' down on both traditional or alternative financing solutions , and you want to eliminate ' super rare' from your commercial financing thoughts seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with key needs.
Stan Prokop -
7 Park Avenue Financial :
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