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Does Your Company Want To Borrow Just Like An American ? You Can’t, and Here’s Why !
OVERVIEW – Information on business financing options in Canada. While U.S. borrowing options might be more plentiful there are a variety of loans available for funding and growth finance for companies in the SME COMMERCIAL FINANCE sector
Business Financing in Canada
can't be compared to U.S. borrowing options. That’s a good and bad thing as we'll soon explain, as it relates to the right loans and funding you need to achieve growth finance goals. Let's dig in.
Surveys tell us that many Canadian business owners and financial mgrs actually feel strongly that lack of financing in Canada is in fact a 'barrier to growth’. We're talking primarily about 'debt financing ' via loans as well as closely related ' asset monetization ' via credit lines, etc.
Many Canadian businesses start with owner equity and the proverbial ' friends and family ' type financing - that's not really debt finance of course. A large part of the equity in Canadian SME firms lies in the shareholder loan category!
In the U.S. there is clearly a lot more ' risk ' financing with a wider variety of lenders , leading of course to the perception or reality that the Canadian lending landscape doesn’t offer as much funding that is priced to risk, and therefore more available !
Given that many Canadian lenders are also ' deposit takers ' they of course are more risk averse - EXAMPLE: Canadian banks and insurance company lenders. While the Canadian lending landscape was in the past very limited to bank financing new alternative lenders are providing more financing choices - similar to the variety of loans and lenders available in the U.S.
The traditional financiers in Canada are:
Banks
Business Oriented Credit Unions
Insurance companies
Leasing Companies
Mortgage Institutions
Traditional financiers in Canada use the same approach for almost all borrowers, which of course has a tendency to restrict financing. In Canada companies seeking SME COMMERCIAL FINANCE (small to medium sized firms) constantly are challenged to finance sales and assets. Access to business credit lines is always a challenge - Asset based lines of credit in Canada have exploded in popularity.
Canada set up its own version of the U.S. ‘SBA ' program. In Canada we call it the 'SBL ' - It's a govt guaranteed loan with the federal govt guaranteeing 85 % of your loan to the bank. In Canada the program only finances equipment, leaseholds and real estate. In the U.S. numerous other options are available under the same program.
What then should Canadian business owners consider when it comes to real world financing options available to their business? The offerings for owner/financial mgr consideration include:
A/R Financing
Non Bank Asset Based lines of credit
Equipment financing
Sale leasebacks
Bridge Loans - asset based
Tax Credit Financing (film and SR&ED)
Franchise Loans
Govt Guaranteed Loans
Working capital term loans
Merchant advances
If you want to borrow with a full understanding of your business finance options 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 loans, funding and growth finance options specifically for your company.
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 :
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
'
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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