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Business Financing At The Speed Of Light ? You Decide !
OVERVIEW - Information on specialized lending solutions in Canada. Business finance requirements might often include a bridge loan in the firms financing mix . Here's why
Business finance in Canada , according to most business owners and financial mgrs we talk to, doesn’t seem to happen at the speed of light! So when the type of loan and cash flow needs your firm requires isn't happening as quickly as needed are there alternatives. There are. Let's dig in.
In certain situations the concept of a ' bridge loan ‘might just make sense. These loans are a form of specialized lending that will often provide a fix for the small to medium sized company that needs interim financing.
Why? Simply because they close the time gap, while at the same time providing the liquidity you need for survival, growth, etc. Timelines associated with bridge loans tend to be in the 1 year range, with many solutions involving extension options.
The alternative to shorter term bridge loans and specialized financing solutions might sometimes be equity investments, but that type of solution comes with longer timelines and ownership equity dilution.
What then are some of these solutions? They include:
A/R Financing facilities
Inventory Loans
Sale / leaseback loans on unsecured assets
Working Capital loans
SR&ED Tax credit loans
Asset based non bank credit lines
Purchase order financing
Most bridge loans are ' secured' so they must take into account any existing financing your company has in place with any other lenders, which might often include a Canadian chartered bank.
Financing rates for specialized lending solutions will almost always come with higher financing costs. That is usually the case, but not always; larger firms who are more stable can often obtain bridge loans at more normal interest rates.
Typical bridge loans are more often than not provided by commercial finance companies / niche lenders. These firms serve the SME / MIDDLE MARKET of Canadian business financing needs.
Startup companies rarely fit the profile of companies who qualify for bridge financing, which typically is based on assets such as receivables, inventory, equipment, real estate, etc.
If you're focused on an interim ' bridge ' solution to capital and cash flow needs 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 your specialized lending 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
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
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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