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Looking for The Best Rates & Financing To Run and Grow Your Business ?
Business funding and the costs and ' rates ' around financing a company are always top of mind for business owners and their financial managers in Canada. It is safe to say that stability around financing options and solutions that are reliable play as much a key factor as the cost of that financing.
When it comes to financing a company it's a combination of current needs as well as the sometimes overlooked intermediate and long term needs of the firm. That becomes even more important if a firm has ambitious growth and expansion plans.
What Are The Finance Needs Of A Company ?
There are numerous ways to ensure your firm can access those shorter term needs to avoid the proverbial ' cash crunch '. And, as we noted cost always plays a key role.
Although it might not be immediately obvious to all business folks, suppliers are in fact a form of short term financing . There are benefits, risks, and costs associated with vendor/supplier finance.
Let's use the example of a supplier who offers your firm payment terms of 2/20 net 60. That of course means that you can pay them in 60 days, or takes a 2% discount if you pay in 20 days. If you use a sample $ 10,000.00 invoice the arithmetic around that transaction will tell you the opportunity cost of not taking that discount is almost 19%!
Opportunity cost is a solid way of looking at financing costs - It's very simply the cost associated with passing up an opportunity when making a financial decision.
The lowest costs of business financing in Canada is financing via our Canadian chartered banks . Interest rates for borrowers, consumers and businesses alike are the lowest they have every been . So what is the challenge ? Simply that bank facilities are often a challenge for a firm to get approved , so whether it's
Unsecured Cash flow loans
Business credit lines
Installment loans
Term loans
our Canadian banks offer up a plethora of financing options! For those companies that can't access some or all of the bank credit they need it is critical owners / financial mgr's understand that numerous alternative business finance solutions are available . Even firms that have had their loans called are eligible for alternative finance solutions that can save their business and put it back on the right financial footing. Special loan designation is not fun !
As stated a number of non bank commercial finance firms provide business funding solutions, albeit at a higher rate than the banks. With this group of lenders more emphasis is placed on business assets and sales versus the bank requirements of profits, clean balance sheets, and personal guarantees and outside collateral.
Alternative finance companies simply have a different way of looking at business credit, and of course they are not funded with customer deposits, as are our banks.
Receivable financing in Canada is more common place everyday. Many misconceptions exist around financing costs associated with ' factoring ‘. It's also important to remember that A/R finance allows you avoid long term debt and giving up equity - those are important considerations. If you understand the miscellaneous charges, the advance rate, and the discount rate on Receivable Finance in Canada you may well embrace the benefits, which are:
Immediate cash flow
Bulge financing
Growth potential
Strengthened balance sheet
Our recommended form of receivable financing for clients of 7 Park Avenue Financial is Confidential Receivable Financing, allowing firms to bill and collect their own receivables as well as achieving all the benefits of non bank a/r finance. This solution is also commonly bundled into a non bank business line of credit which combines the borrowing power of your a/r, inventory, and even equipment you own.
Short term working capital loans are also very popular in recent years - Typical terms are 1-2 years maximum, and many firms can qualify for a loan amount based on 10-20 per cent of your annual sales .
Leasing/equipment financing in Canada offers competitive rates for all asset classes commensurate with your asset class and overall credit quality. The industry has a solution for every asset, and rates from 4-24% cover the spectrum of asset financing in Canada. While you will probably pay more for leasing than a bank term loan the appeal is staggered cash outlays, obsolescence protection and fewer financial covenants /restrictions.
So our bottom line today? Simply that each category of financing required comes with a different measure of cost, risk, liquidity and in many cases, restrictions. Speak to a trusted, credible and experienced Canadian business financing advisor who has a track record of business finance success , who can assist you with the cost of finance for your business.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
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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