Financing Your Business : Not A Scientific Mystery
OVERVIEW – Information on business loan funding in Canada. Financing via the right lenders is your Job #1
Business loan funding in Canada shouldn't be some sort of ' scientific mystery ' when it comes to choosing and properly accessing the right financing from commercial lenders, including Cdn chartered banks. We're putting you one step close to the right finance solutions for your business. Let's dig in.
It shouldn't be a secret that successful business financing is in fact a process that requires a solid understanding of your current finance structure as well as knowing which equity, debt and asset financing/monetization strategies work for your firm. We're focusing on debt and cash flowing/financing your assets - the equity challenge is a whole different kettle of fish.
The basic challenge around taking on new debt or loans is that if done improperly the problems that arise from that impact your ability to run and grow your business. In certain cases, in fact most of the time there are conditions, covenants, and personal guarantees that impact the behavior of both owners and their financial mgrs.
When you take on any secured debt it's important to focus on your comfort level around repaying any loan from your cash flow. Naturally assets secured under that financing are the collateral for those loans and are subject to any default scenarios.
That brings us to the solutions provided by unsecured loans. These loans come with no tangible security but are of course more costly and present challenges to both borrower and lender alike. A good example of unsecured loans is the area of ' mezzanine finance ‘, essentially unsecured cash flow loans.
As we've maintained it's no ' scientific mystery ' around securing business financing. Your request comes with some basic requirements, typically a business plan or strong executive summary, financial statements, and a cash flow forecast. The critical requirement in a cash flow forecast? It's showing how the loan will be realistically repaid. Certain loans and types of financing are well suited to buying/merging with another business. Here's it essential to show the combined strengths of the new business.
What in fact will lenders look at when it comes to getting you ' one step closer' to financing approval? They will in fact look at:
Assumptions/forecasts
Operating efficiency of the business
Asset levels/ quality of assets
In certain cases third parties such as appraisers of business valuators might be involved in certain finance transactions, especially if your financing needs are larger.
A final word? Simply that it's critical for owners/mgrs to understand how different loans and asset financing/ cash flow financing work. There are numerous differences in how the following types of solutions can help you run and grow your business -
A/R Financing
Inventory Loans
PO Financing
Short term cash flow loans
Franchise Loans
Equipment Financing
Asset based lending
Non bank asset based business credit lines
SR&ED Financing loans
Unsecured cash flow loans
Bank lines of credit / term loans
Looking to get one step closer to the right type of financing for your company? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business loan funding needs.
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 - 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 :
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
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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