OVERVIEW – Information on business credit in Canada . Numerous sources of working capital, cash flow and asset financing solutions currently dominate the SME COMMERCIAL FINANCE market . Which one is right for your firm
You can't find it if you don't know what you are looking for. What do we mean by that? Simply that cash flow, working capital, business financing can be sometimes ' overworked' ' catch all' terms that mean various things to various people.
When we're talking to clients we discuss the need first, not the solution! Thankfully those needs can be nicely broken down into several categories as follows: day to day operating capital, immediate growth needs for new opportunities, equipment and asset acquisition, hard asset refinancing.
The most common ' go to ' solution in the eyes of ownership/mgmt is to solicit chartered bank financing in Canada. If your firm has a strong balance sheet , profits, established history and additional collateral etc you'll find all the financing you need from our chartered banks who have virtually unlimited financing potential .
That's easy for us to say, but the majority of clients we meet simply can qualify for all business credit and working capital they need to survive and grow. Typically they have some traditional financing but not enough, or, in a more severe case, do not qualify for traditional bank lending in the Canadian landscape. So what's the plan?
When the going gets tough, the tough get going goes the expression, so it is a case of getting somewhat ' creative' in your search for working capital .If your firm has assets and growth prospects we firmly believe you can get most, if not all the financing you need.
This financing can be achieved in a number of ways. Strategies include monetizing your current assets via a working capital facility for receivables and inventory. Properly set up you should congratulate yourself - You just negotiated unlimited working capital! The reason? These facilities allow you to borrow on an ongoing basis relative to the size of your current asset investment in accounts receivable and inventory.
We referred to generalization of terms such as cash flow, working capital, etc - the lending we have just described is best known as asset based lending, and in many cases can cover off purchase orders and new contracts also.
What about acquiring new assets for your business? Equipment financing and sale leaseback financing for either new or owned/unencumbered equipment are great solutions to acquire or refinance capital acquisitions. In Canada lease financing is available for all asset and credit qualities for any amount, from 1000.00 to millions of dollars.
Although the majority of clients we discuss working capital needs with are private firms your firm might be public, as a result you might be in a position to consider an equity line of credit, with the equity questions being your stock.
If your firm has revenues under 5 Million dollars and is privately owned you should consider the best financing available in Canada - it's the government BIL/CSBF loan that is underwritten by our good friends in Ottawa.
Loans up to 500,000.00$ are available for hard assets such as equipment, leaseholds, real estate, etc. You can even be a start up and qualify. The financing rate is incredible attractive, guarantees are limited, and terms and structure flexible. This program is one of the great secrets in Canadian business financing.
It’s always about the bottom line, so what’s our bottom line today? Focus on what type of financing you need, determine if you qualify for traditional financing, and if you don't get creative with a multitude of solutions available.
Confused? Hopefully not. Seek out and speak to a trusted, credible and experienced business financing advisor who will guide you through the maze to what we believe will be the right solution 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. 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
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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