Sources Of Financing In Canada : Sorting Out Working Capital & Cash Flow Finance Options

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Get Hard Wired On Your Best Solutions For Canadian Business Financing Needs

OVERVIEW – Information on sources of financing for Canadian businesses with SME COMMERCIAL FINANCE needs. Getting the most out of working capital and cash flow solutions requires this information

Sources of financing requires business owners & financial mgrs in Canada to get ' hard wired' into real world accessible financing for solutions to their working capital and cash flow challenges. Let's dig in.

Funding for your business typically revolves around growing your sales and staying a step ahead of the competition. Businesses in the SME sector in Canada (small to medium enterprises) represent the largest majority of business in Canada.

Those firms that have been in business awhile, are growing their sales, and have the ability to sell products in other geographies are always strong candidates for new financing.


Tapping into sources of financing must for most business owners and financial managers in Canada seem like finding the holy grail of financing - We're far past the 2008 recession but most businesses still find finance options inaccessible.

Most business folks associate Canadian banks as the sole source of business financing .When we meet with clients who have been denied bank loans we can of course commiserate. Is there a solution?

The bottom line quite frankly is that Canadian business is looking to alternative sources of financing for working capital, cash flow, and asset acquisition. The Canadian government has a full scale bank that is a non bricks and mortar bank, i.e. not branches, and they are committed to providing working capital and equipment financing.

However, the bottom line reality is that if you can access the business financing you need you should consider non bank financing, because it is these firms that seem to be the current bench strength in asset and receivable financing - these firms include:

Leasing companies - (Note that top experts tell us that machinery & equipment are almost always at the top of the list in new financing needs) Right behind that is investments in computers, software and other technologies

Asset based lenders - equipment, receivables and inventory

Purchase Order and Inventory financing firms

Factoring firms - i.e. receivables

Tax credit monetization firms - i.e. sred/Sr&Ed credit financing

When we talk to clients they often use the term 'government grants and loans '- We feel that term is not realistic, in that that the only two real world programs out there are the Canadian SR&ED program, which is the non repayable grant for r&d, and also, the government Small Business Loan .
Working capital financing in our terms means several very clear solutions:

Monetizing your current assets such as receivables and inventory

Cash flowing items such as Sr&Ed credits

Entering into a government working capital term loan

Negotiating a working capital/receivables financing facility - which in larger dollar terms is referred to as an asset based lending (ABL) arrangement. These facilities provide a significant amount of business credit line on terms far more attainable than traditional bank type financing. Asset based lending is leading the charge in the revolution in Canadian business financing.

When looking for sources of financing for working capital and cash flow is sure you understand the meaning behind the jargon. Determine whether you are looking for liquid operating capital, or a longer term working capital solution.

A recent BDC study concluded that 1/3 of all businesses in Canada have difficulty in accessing financing to run and grow their business. Is that you?

Seek out and speak to a trusted, credible, and experienced financing advisor who can guide you through the Canadian working capital maze and determine what the best cash flow and source of financing is for your long term growth and profits.


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. 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

' 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