Actionable Business Financing & Business Lending Tips
Business financing ! You've heard the rumour , namely that business lending is more available than ever. Whether it's small business funding or medium to larger corporations we hear capital is almost unlimited.
But for those firms that for a variety of reasons can't qualify for all, or even some of the financing they need from traditional sources such as Canadian chartered banks there is hope - in the name of asset based financing options.
Let's backtrack a bit and understand that a company, from a lenders perspective will always be identified relative to what stage of the company ' life cycle ' it is in. That might come in several stages , going all the way back to pre-sales revenue r&d to initial start up . It's a long journey to that ' high growth' stage . And it's not hard for the entrepreneur to dream about that final stage of business maturity where traditional financing sources are unlimited.
Have we forgotten anyone. Yes, we have , and it's prudent to mention that many companies, for a variety of reasons, are financially challenged and have poor financial performance and some serious cash flow or debt problems . Suffice to say the good news here is that even these firms can be financed or re-financed , as numerous alternative financing solutions are available .
Many firms often find themselves in the position of taking on larger orders or contracts that typical small business funding solutions can't deliver on .
3 OPTIONS FOR Alternative Financing
Purchase Order Financing - This is an increasingly popular method for a company to support purchase orders or contracts from new or larger clients. Without having to raise new equity or debt your order is financed by the lender based on who your client is and also ensuring you have a legitimate supplier .This financing can be achieved very quickly and makes sense when traditional finance doesn't work.
Accounts Receivable Factoring - This type of finance allows you to cash flow invoices immediately after you make a sale or deliver your services . The general credit worthiness of your clients allow you to get advances on your sales typically in the 80-90% of invoice value. Naturally this eliminates waiting to get paid, which these days seems to take anywhere from 30 to ..d are we say it.. 90days!
Simply speaking A/R financing is a cash flow accelerator!
Non Bank Business Credit Lines - Alternative financiers offer credit lines based on your inventory, receivables and equipment as a lump sump collateral . In our experience these credit line almost always exceed the amount you would receive under typical bank margining of these assets.
SUMMARY - If your business is growing , or even experiencing challenges investigate non bank solutions that will allow your firm to be in a constant position to access capital based on specific needs.
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 success in business lending.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Click Here For 7 PARK AVENUE FINANCIAL website !
7 Park Avenue Financial provides value added financing consultation for small and medium sized businesses in the area of cash flow , working capital , and debt financing .
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.