Is Bank Spanking Really The Way To Achieve Business Financing Success ( EDITOR NOTE - GRAPHIC OF BANK SPANKING REMOVED RE:
OVERVIEW – Information on alternative financing mechanisms in Canada. What bank alternatives are available to the Canadian business owner /financial manager
Alternative financing in Canada is, in many ways, the new normal. Canadian business owners and financial managers are constantly seeking bank alternatives as they start and grow their businesses.
While large corporations have access to all sorts of capital, in some ways unlimited, businesses in the SME COMMERCIAL sector struggle to find options that make sense and are balanced against what is usually a higher cost. Let's dig in.
One author in the U.S. recently offered up that business owners must ' spank their banks ' when it comes to access to business capital. While we suppose there's a hundred reasons to ‘spank’ U.S. banks (anyone remember 2008), those reasons don't really exist in Canada, as we're known to have probably the strongest banking system in the world.
So our banks tend not to go bankrupt, they don't go to jail, they do provide safe investment vehicles... and they have all the capital in the world - IT'S JUST DIFFICULT TO ACCESS BUSINESS CAPITAL AND QUALIFY FOR FINANCING .
So what's our point? Simply that the owner/manager in SME start to look outside the box at non bank alternatives.
Those alternatives include:
Accounts Receivable Financing
Inventory Finance
Working Capital Term Loans
Equipment Financing
Sale/Leaseback / Bridge Loans
Franchise Loans
Tax Credit Financing - ( SR&ED & MEDIA Tax Credits
Asset Based Lines Of Credit
It's interesting to note that all of the above finance mechanisms are in fact available from Canadian chartered banks. But it will always come back to the criteria in place as to your ability to access the above solutions at low bank rates. The traditional prerequisites for accessing bank credit are length of time in business, balance sheets that reference positive equity, profit history, cash flow coverage, and owner personal credit history and collateral.
Absence of any one of those bank criteria can quickly derail
Bank alternatives in Canada are offered by commercial finance firms. They might be small, large, Canadian, U.S. owned, and in some cases geographically focused. They provide all the solutions offered by banks, and typically have a much higher risk appetite as they are motivated by profit and growth also. Almost all firms only specialize in certain loan/finance segments, so it’s important to seek out an advisor who can help you navigate the waters and speak the lingo!
So, bottom line. The Canadian business owner / financial manager can spend all their time blaming (spanking) their bank or they can choose to seek out real world solutions that exist for the financing they need.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in evaluation alternative financing that will allow you to grow or start a business.
Stan Prokop - founder of 7 Park Avenue Financial –
http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :
7 Park Avenue Financial = Canadian Financing Alternatives
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Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
Stan Prokop
