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Alternative Financing Options From Non Bank Business Lenders In Canada
Alternative financing isn't something that most business owners and their financial mgrs equate with ' shopping ' , but the reality in today's environment is that it's a requirement for your company to know what traditional, and non traditional business financing solutions are available to your company . More and more companies everyday are looking at ' non bank ' solutions from credible lenders who can assist their business with cash flow, debt and working capital financing .
In some cases it's somewhat of a ' forced ' situation as some companies find themselves in what the banks term as ' special loan ' situations due to any number of events that have triggered a default in bank covenants, loan payments, etc. There is one immediate bottom line :
Turnaround Financing Is Required !
We'll take a look at different aspects of alternative finance solutions in Canada, as well as a re-focus on key issues within that damaged bank relationship that sometimes happens in the world of banks and traditional financing.
It's no real secret that interest rates for commercial business financing are at all time lows . Even bank fees associated with business lines of credits are not all that unreasonable. Nevertheless damaged relationships with your bank can exist, in certain scenarios that might even be about ' personalities ‘, i.e. the human side of business.
Clients sometimes feel that Canadian banks or their own banker specifically does not ' understand ' their business. In fairness to Canadian bankers they are sometimes just challenging a client and should often be viewed as a ' sounding board ‘for challenges your business might face
The limited amount of choice that owners/financial mgrs have when it comes to banks in Canada is of course a limited number of banks in a highly regulated environment . That's a good thing for banks and the health of Canada as a whole, but not so good when it comes to your business or your industry being able to achieve it's financial and sales goals with the right amount of financing.
That is of course unlike the U.S. which has different tiers of commercial and business banking, with hundreds if not thousands of individual bank lenders.
In certain cases your industry might be ' out of favor ' and traditional lenders are looking for ways to end relationships in certain economic sectors. With all due fairness to there being two sides of the story, we at 7 Park Avenue Financial can commiserate with the Canadian firms who suddenly find their total future and destiny in the hands of a third party.
As a short aside, probably the best advice we can give a client is to choose a banker that is relationship oriented and had internal credibility within her or his bank. Our belief - all banks are the same; all bankers are not the same.
What Then Are The Alternatives For Canadian Business Finance Solutions From Alternative Finance Lenders ?
Using our ' shopping analogy ' there's some solid choices when it comes to business funding .
Alternative Financing For SME'S In Canada:
Solutions include:
Asset Based Finance Firms
Equipment Lessors - Sale Leaseback Specialists
Accounts Receivable Financing
Inventory Financing
Purchase Order Financing / Alternative Sales Financing For Procurement
Royalty Financing
Tax Credit Loans ( Primarily SR&ED )
Key Point: Any of these alternative finance solutions can be combined in a variety of manners to allow for full scale financing of your sales revenues.
Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business financing success, who can assist you with achieve refinancing needs.
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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