Eliminating The Word Painstaking From Business Financing Success
OVERVIEW – Information on business loan requirements in traditional and alternative finance in Canada . Bank loans and other non bank financing strategies come with some basic requirements which are discussed
Business loan success, whether its bank loans or alternative finance often has owners/mgrs wondering if they've got what it takes. We're going to try and eliminate the word ' painstaking' from your challenges around funding your company in the SME COMMERCIAL FINANCE
marketplace. Let's dig in.
Business funding needs arise out of a number of requirements for any owner/mgr who is focused on growing the company's sales. Typically those needs come from the desire to expand, introduce new products or take on new contracts, even acquire a competitor.
Financing your business can come from traditional (typically ' bank ') or nontraditional finance sources. Suffice to say alternative finance has been very much on the rise since the great recession of 2008-9. Each category of loan has different requirements that will help guarantee financing success- therefore our question - Have you got what it takes!
Small and medium size firms, whether you like it or not has both traditional and alternative lenders looking at owner finances and credit history. While many newer forms of alternate finance ( asset based business credit lines, a/r financing, tax credit financing , etc) place much less emphasis , and in some case almost no emphasis on personal credit of owners suffice to say a higher personal credit score is better!
The absolute fundamentals of any business loan revolve around your ability to provide, or at least ' talk to ' a business plan and cash flow and revenue forecast. These are very basic requirements - they are not rocket science. Also, this is not a good time to be a dreamer - realistic projections win.
In some cases all the financing you might need will be ' collateral ' based. Hopefully that’s business collateral and not personal assets! As an example the GOVERNMENT GUARANTEED SMALL BUSINESS LOAN requires no personal assets be pledged,, and actually finances leasehold improvements as well as fixed asset/equipment needs.
Also, many EQUIPMENT LEASING firms are able to finance your asset and equipt. needs without outside collateral or a focus on personal owner credit.
Finding a great commercial business banker (notice we said banker, not bank) is worth its weight in gold. Given Canadian banks are the closest thing to an oligopoly (think monopoly) loan requirements rarely differ at banks. Your banking success will deliver loan rates and unlimited access to capital if... ands it a clear if... you have:
Owner personal credit
Business commercial credit history
Assets
Cash Flow
Mgmt Depth
As we have said each business financing category has some absolute basic requirements. Some of the basics in each category? They include:
A/R Financing - requirement to show aged receivables of a reasonable credit quality
Inventory Finance - A marketable inventory of goods that can readily be priced and sold as the fundamental collateral of an inventory loan
Non Bank Asset Based Lines Of Credit - receivables, inventory and fixed assets that can be well documented on an ongoing basis
Tax Credit Financing - the ability to produce a credible SR&ED claim with appropriate documentation
Bridge Loans/Sale Leasebacks - equipment or real estate assets that have been appraised or valued to mutual agreement between yourself and the lender
Still not feeling like going it alone? In many cases your firm has the ability to improve both improve or make more attractive your loan success by working with a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your business loan, banking needs, and alternative solutions.
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 100 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS LOAN AND ALTERNATIVE FINANCE EXPERTISE
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
ABOUT THE AUTHOR
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.
Stan Prokop
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