Is Your Business Funding Situation As Clear As The Great Molasses Flood of 1919? Not Any Longer
OVERVIEW – Information on business funding sources in Canada. Which financing source offer the right type of debt or cash flow capital that your company requires
Business funding sources in Canada often has business owners/financial mgrs looking for the right ' connection' they need when looking for capital and financing solutions. Often times the situation seems clear as mud... or molasses? Let's dig in.
Molasses? We're referring to the Great Molasses Flood of 1919 in Boston - where a large molasses tank burst, streets were flooded and 21 folks lost their lives! That of course isn't the same level of anxiety that business people experience around finance choices, but it often sure feels like it.
How then does the owner/mgr, particularly in the SME (small to medium enterprise) space make those right ' connections' - and, as importantly, what can they expect. It's critical of course to know what any source of capital delivers on. That changes with the current financial profile of your company and the perceived risk that lending sources associate with your business... or industry.
When owners/mgrs start the financing process and are looking for the right connection to capital they are often most concerned about the cost of that capital. These days, depending on the risk profile your company generates that rate can be 2.5% per month, or 2.5% per annum. Most clients we meet want the latter!
What then are those key factors that lenders utilize when you're on the hunt for sources of financing? They primarily are:
Size of your company
Stage of Growth - i.e. start up, early stage, growing, mature, etc
Assets on the balance sheet
Cash flow generation potential
Industry and your reputation
Many owners/mgrs we meet are often incorrectly focused on the actual type of financing they need. In fact they don't even understand the wide level of choices they have in cash flow financing and debt financing.
Those sources? You'd be amazed at your choices, including:
Cdn chartered banks
Receivable and Inventory Finance providers
Asset based lenders - financing both assets and credit lines
Leasing companies
Sale leaseback specialists
Mezzanine finance
Royalty finance solutions
PO / Contract finance
Merchant cash flow advances
Naturally some solutions are shorter term focused and provided a temporary fix, while other solutions can bring working capital and cash flow finance in the millions and could be considered long term finance strategies. Safe to say it's important to know whether you're in need of a temporary ' fix ' or a long term capital solutions. That allows you to position your company and negotiate from a level of strength
If you're looking to avoid that ' clear as molasses' feeling we described 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 financing and capital needs.
Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com
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
Stan has had a successful career with some of the world’s largest and most successful corporations.
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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