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Business Loans In Canada – No Alternative Facts Here !
OVERVIEW – Information on working capital & business loan financing sources in Canada . Identifying the right funding sources enhances chances of business and profit growth
The one guarantee we provide clients is telling them that business financing is never a question of why, it's usually ' when ‘!
Working capital and cash flow are of course the heart of every business.
The challenges of obtaining that financing become a question of time. Cash flow is required for your regular ongoing business, as well as your growth strategy. In most cases your company is part of a regular cycle - you buy inventory, your produce things, you sell, bill and collect. In a perfect world your suppliers give you unlimited time to pay, and unlimited credit limits. And of course your customers pay you in exactly 30 days. Guess what? It's not a perfect world!
If you are a traditionally financed firm you have access to bank capital for revolving credit lines based on your business needs. But for a growing number of Canadian firms that access to traditional bank capital is not available. Many firms simply can't meet the numerous basic requirements that our banks demand for those low cost traditional bank financing scenarios.
You therefore probably need help in identifying sources of business financing that work for you. The solutions actually are quite numerous - its becomes a question of:
What funding solution best suits your need
What are the costs involved
Does your business model suit a particular financing solution
Working capital financing comes in several forms - it can include:
Non bank asset based lines of business credit
Inventory loans
A/R Financing
Sale Leasebacks
SR&E tax credit financing
P O Finance
Working Capital Term Loans
Merchant loans
One of the most important things you can do for working capital business financing is to ensure that the type of financing you source matches your needs. What we mean by that is that you should match short term needs with short term financing. Factoring, aka ' A/R Financing ‘might be a good example. If your receivables aren't financed, and you need cash to meet inventory and supplier commitments that type of financing is immediate and addresses your needs. Why would you enter into a five year term loan at fixed payments for a short term capital need or requirement?
Understanding your current asset mix and turnover are key to successful business growth & cash flow turnover. Those assets can quickly be monetized into a working capital facility that comes in a variety of methods. The reality is that your inventory and accounts receivable grow lock step to your sales and your ability to finance them on an ongoing basis will give you access to , in essence, unlimited working capital .
There are some solid technical rules of them around how you can generate positive pricing for working capital facilities. By calculating and analyzing some basic financial ratios (we call them relationships) in your financial statements you can get a strong sense of what’s available in working capital business financing and what pricing might be involved. Those ratios are your current ratio, your inventory turns, your receivables turns or days sales outstanding, a, and your overall debt to worth ratio. Depending on where those final ratio calculations come in will ultimately allow your working capital financier to put your firm in a low risk, medium risk, or high risk band of pricing?
If you're looking for ' facts ' on business financing speak to a credible, experienced and trusted working capital business financing advisor to determine what solutions are the best for your firm.
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 13 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.
http://www.7parkavenuefinancial.com
7 Park Avenue Financial
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
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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