Is there a right way and a wrong way to finance a business in Canada? We definitely think we can show you there is ... as well as pointing out those risks and benefits. And by the way, it is in fact possible to change horses in midstream to adapt to today’s changing times when it comes to business financing and your company.
WHAT TYPE OF FINANCING DO YOU NEED - SHORT TERM OR LONG TERM ?
As we have been prone to say lately the concept of ' term' is critical in both assessing and choosing the right business finance. By terms, we simply mean short, intermediate and long term, as all of those have a number of different implications. And to compound the challenge for the business owner and manager both the type and ' term ' of the financing can impact the amount of funds that flow in and out of your business.
FACTORS TO CONSIDER IN FINANCING
So what in fact are some of the things you need to consider when choosing a financing solution? There are a number of factors, probably all as equally important. They include:
Cost/rates,
Amount of risk you are taking
How your overall business capital structure changes with any one particular sort of financing
What cash flow, working capital and profits that that financing will deliver... or take from your company!
It's easy sometimes to get confused about the timeframe when you're in the middle of searching for a finance decision. We meet and talk to many clients that are looking to solve an immediate problem and somehow miss considering the growth and future of their firm. A simple example might be a banking arrangement - i.e. not considering whether you can live through the tough times based on covenants, guarantees and collaterals that you have either offered up or have been demanded of you.
PLAN YOUR CASH FLOW SHORTAGE !
One of the most proactive things the business owner/manager can do is to focus on planning to be short of cash and what solutions might be available. Why? Because cash flow shortfalls always happen, for pretty well everyone!
The toughest decision many business owners have to face if giving up equity and ownership of some sort in their business because debt levels are too high or the right financing is not available.
4 FINANCING SOLUTIONS YOU CAN ACCESS TODAY
So what are some of the short and intermediate financing solutions available - They include:
Supplier financing
Bank lines of credit
Receivable financing
Equipment leasing
DON'T OVERLOOK SUPPLIER FINANCING AND HOW IT AFFECTS CASH FLOW
Supplier financing is almost always overlooked when it comes to cash flow financing. Just negotiating better payment terms or taking supplier prompt pay discounts can save firms many thousands of dollars.
IS TRADITIONAL BANK FINANCING THE SOLUTION
Bank financing in Canada takes many forms - when you can achieve approval. Those forms include lines of credit, term loans and fixed asset financing for long-term assets.
We caution clients that the crux of the bank relationship should revolve around what you need to provide in the form of collateral, covenants, and reporting. Many Canadian business owners simply don’t know that alternative financing for their businesses can in fact be arranged outside of Canadian chartered banks. While these solutions might be more expensive they solve problems!
CONCLUSION
What financing solution suits your business? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor today.
7 Park Avenue Financial :South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
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 areas 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. He is an experienced
business financing consultant
.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 financing 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.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2020
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