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Sources Of Finance For Business Growth / Survival/ Expansion
Sources of business finance is all about options and having business owners identify the need and importance of solutions to funding their company in challenging times . Certain times are more challenging than others .
Although it's not necessarily ' easy ' for larger corporations, or public companies to raise capital , SME COMMERCIAL FINANCE solutions are probably even more challenging.
What Are Cash Flow / Debt / Working Capital Options For Your Company ?
Canadian business financing options come with a combination of benefits an risks.
Part of the challenge is your being able to determine whether your company needs operating capital or long term capital in the context of asset financing or permanent working capital.
When it comes to ' operating capital ' a company might still be in somewhat of a ' start up ' mode, so there are the typical expenses for starting a company - these might include product development, marketing, legal and accounting, leasehold improvements, etc.
Two critical areas in that early stage that we have mentioned have some unique financing solutions available. The Canadian Govt' SRED program ' funds a significant portion of r&d capital . As well these claims can be financed, accelerating the cash flow, via a short term SR&ED FINANCING LOAN that has no payments during the term of the loan.
Your SR&ED claim is most successful when it is prepared by a qualified SRED consultant who can maximize the benefits of the program. We cringe when business owners or financial managers tell us that the program is ' just too much paperwork ' because they are clearly forsaking a true capital injection into their business. Many of those consultants will actually prepare your claim at their own time and expense risk, offering you a contingency agreement on those funds. The bottom line: check out this program.
Leasehold improvements are always difficult to finance and Industry Canada helps finance thousands of businesses under the Canadian Govt Small Business Financing Loan program. The features and the benefits of the program , which include a gov't guarantee to your bank are numerous, and the overall rates, terms and structures it provides have even larger companies envious of the Canadian Small Business Financing Loan . By the way, we call them ' SBL'S ' !
Many clients of 7 PARK AVENUE FINANCIAL advise us they have turned to what is known as ' love money ' or ' friends and family ' loans and investments .
We're not big fans of utilizing so called ' love money ‘, and are even less enamored by clients who are actually prepared to collapse personal registered savings or mortgage their homes to start a business. While its important to have some ' skin in the game' as the expression goes its our recommendation that you incorporate your business and strongly seek out traditional and alternative financing to fund your business .
Your business has 2 types of financing available that not all business owners and their financials mgrs recognize. These two types of financing include supplier financing via extended terms, as well as offering cash discounts to client for prompt payment .
Sources Of Canadian Financing For Small & Medium Sized Companies
Receivable Financing is one of the most popular ' alternative finance ' solutions used in Canada. Also called ' factoring ' or ' invoice discounting ' it turns your sales revenues into an automatic cash flow machine . At 7 Park Avenue Financial we recommend our clients utilize ' Confidential Receivable Financing ', allowing your firm to bill, collect, and automatic cash flow your sales/receivables.
Other forms of both traditional and alternative financing include short term working capital loans, more commonly known in the past as MCA'S or merchant cash advances . These loans provide short term ( typically 12 month ) loans geared to your sales levels, and will often be in the range of 10-20 per cent of your annual sales .
Businesses requiring equipment should always consider utilizing lease financing for their new and used equipment needs. We tell clients at 7 Park Avenue Financial that over 80% of North American business utilizes lease finance.
A relatively newer form of financing known as ' royalty finance ' is a hybrid of debt and equity finance.
In Canada venture capital and private equity is generally very difficult to obtain for most start up ventures - we caution clients to not dwell too long on these options unless you're committed to a long haul in effort!
The overall combination of your company size and credit quality will tend to drive the top picks applicable to your firm re numerous sources of financing available, either traditional or alternative.
Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success for the sources of business financing and options available to your company.
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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