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Traditional or Alternative Finance ? What’s Your Poison?!
Information on accessing the right alternative finance when it comes to loans and asset based financing choices in Canada . Financing alternatives don’t have to be traditional in nature to work for your company
We don’t think we can find too many business folks that admit that there is a whole new landscape in Canadian business, especially since the 2008 Apocalypse... aka the the global meltdown in corporate and bank finance.
That change has literally forced business / financial people to search out new alternatives and choices in financing their business. So while traditional financing became more restrictive... alternative financing became... you guessed it... more popular.
That is not to say that Canadian traditional sources, i.e. our banks, arent out there looking for new business ... they are... it's interesting for us to watch it from the outside because invariably they are simply competing with each other to take business away from each other that is already in place . That’s little consolation for start ups and high growth companies, as you can imagine.
One common criticism of Canadian traditional financing, aka banks, insurance companies, etc is that it takes time. Nothing happens quickly in these highly regulated institutions. That is where non traditional finance is viewed is simply viewed as more ' nimble '.
For the business owner and finance manager that needs quick term loans, equipment loans and business credit lines there are a number of alternative finance vehicles. If we had to summarize them we could say they were:
NON- BANK ASSET BASED LENDERS
LEASING COMPANIES
CAPTIVE FINANCE FIRMS
MEZZANINE FUNDERS
TAX CREDIT FUNDERS
RECEIVABLE AND INVENTORY FINANCIERS
SUPPLY CHAIN P.O. FINANCE FIRMS
On balance it sometimes seems to us that there are less and less people in traditional institutional financing that can make credit decisions. Or is it just that we don’t seem to have access to them on a direct basis?
Maybe that is just us. Alternative finance lenders have to understand assets and being nimble almost 100% of the time.
Financing alternatives and loans from non traditional lenders typically revolve around the balance sheet. If you have assets that can be valued and generate cash, simply speaking... they can be financed! Naturally not every asst on the balance sheet can be properly financed - good will is a good example of that. And it's also to match the right amount of alternative financing with your asset category whether it be current assets that are monetized daily for cash flow, or longer term fixed assets that require specific lease financing or bridge loan strategies.
Our bottom line today - simply that you just might be surprised as to how much real ' glitter ' is shining in alternative financing vehicles. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor to identify sources of alternative or traditional capital.
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .
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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