Business Finance In Canada & Financing Alternatives

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What Is The Best  Business Financing Option For Your Business?
Business financing alternatives in Canada - For many business owners and financial managers it , must seem like they spend a tremendous... aka ' too much' time searching for the credit and banking alternatives and the sources of cash they need to run and grow business. Raising business is even more challenging when the search is for financing for startups!

What then are some of those decision points when your business is looking for business funding of any type? Business sources such as Canada's premier business dailies such as the Globe & Mail and Financial Post constantly reveal the challenges of the SME commercial finance sector in financing a business. Let's dig in!

Easy to say, but fundamentally it's all about finding the right types of funding in the amount that you need that carries an acceptable level of risk and cost relative to means of financing utilized. As we said, easier talked about than done.

More often than not it's about taking on the wrong kind, or too much debt and therefore risking business failure. Working with the right type of banks or finance companies is also important; it's all about knowing the lay of the land!

Business Financing Alternatives

There are several ways in which business finances itself.  Business owners should know that interest rates vary based on what type of traditional or alternative lenders are utilized. Sources of cash for your company include :

Vendor / Supplier credit - That is financing a business without a loan!

Lease Finance / Equipment Financing

Bank Financing

Government of Canada Small Business Loan and Grants for startups - ( Working with government programs and crown corporations often can seem frustrating for business people. It is strongly recommended that you use a business finance expert who has a proven track record in business finance

Asset monetization

New equity

Online Lenders

Many business owners often underestimate the power of supplier finance. The terms and credit needs you're able to negotiate contribute significantly to business cash flow. Supplier credit stems from the outflows of cash. The bad news here is that everybody's in the same boat at the end of the day, as everyone, including your clients attempt to stretch payment terms.

Instead of paying with cash for equipment and technology assets businesses can choose to lease those assets on a lease or rental basis.  Terms of anywhere from 2-7 years, sometimes longer, are available to leases assets such as rolling stock, computers, heavy equipment, production machinery, etc. Bottom line... any asset can be financed.

Canadian commercial banks offer significant financing choices when your firm seeks business credit.  The most desirable bank facility is typically the ' revolver' allowing you to draw daily against the cash you need up to a set limit.  The danger of breaking a bank arrangement often leads many businesses into a death spiral.

While in many cases it's desirable to get new equity into your company the challenge here is that it dilutes ownership at the expense of current owners.
Many owners and finance managers who focus on getting new equity don't fully realize that numerous ' Asset Monetization ' strategies exist as an alternative to equity in many cases.

They include-

Receivable financing
Inventory Financing
Tax Credit Financing
Royalty financing
SR&ED Tax credit monetization
Non bank asset based lines of credit
Sale leaseback
Canada Small Business Loan and BDC Funds
Bridge loans

4 or 5 key issues typically should come up in your overall financing decision. They include:

1. Flexibility of the financial offering
2. Risk
3. Cash flow and profit concerns
4. Control exerted by the lender based on the finance offer  - that refers to issues such as loan covenants, financial ratios that must be maintained, and those ever-dreaded ' personal guarantees'.
5.Timing

At certain times in any company’s history it can't always get the financing it needs. Issues such as your overall leverage and your capital structure need to be addressed carefully. Growth, while always desired by almost all firms requires a proper assessment of your financing needs.


Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with business credit and banking decisions that make sense today and tomorrow.

 

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

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 .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
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

What Are The Best Business Financing Options ?

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Sources of Business Finance In Canada

Financing sources in Canada for Canadian business must seem sometimes as if it's a matter of truth or fiction for Canadian business owners and their financial mgrs. That certainly the feeling we get from clients talking to us at 7 Park Avenue Financial .

So if those sources of business finance exist ( THEY DO !) let's take a look at what is available for the commercial borrower, hopefully eliminating some of the ' turbulence' associated with the search for business funding.

Sources of Business Finance

We will focus primarily on sources of capital that essentially are available immediately for borrowers - they include:

Trade Credit From Suppliers

Bank Solutions

Equipment Lessors

Working Capital Providers - A/R Finance / Inventory Finance / Purchase Order Finance / Short and Intermediate Term Working Capital Loans


Businesses should never forget that supplier/vendor financing is one of the best and cheapest forms of capital and cash flow. Why ? Quite frankly it is much easier to obtain, is rarely, if ever ' secured' or ' collateralized ‘and typically carries no interest penalty


You should not forget that delaying payment to suppliers is a ' cash flow positive ' , but, and it's an important but, you never want to have that strategy deteriorate the relationship you have with a key vendor. Furthermore if your firm has the cash the cost of not taking a payment discount also must be measured .


So why is prompt payment to a supplier/vendor such a key cash flow / profit variable ? You can check with your accountant but let’s say you bought 10k of product from a supplier and were able to successfully negotiate a 2% NET 60 payment term. Calculating the discount foregone and the proceeds from the use of the money you might find that’s an 18% savings rate -so if you can borrow for less than that you clearly are ahead of the game. Bottom line - never underestimate the power of supplier financing from a payment and cash flow perspective.


While banks might be consider as a first choice ' go to ' when it comes to financing sources under consideration many firms looking for ' SME ' Commercial Finance solutions will often find they don't qualify for some of all of the funding they need to run and grow the company .

Business lines of credit from banks are low cost and flexible - but they require require appropriate bank collateral and the understanding from yourself that there might be some restrictions on your financials re additional borrowing from others, etc. If your company meets cash flow and ratio and covenant requirements from banks they are certainly the lowest cost and excellent source of intermediate capital for loans on equipment, fixed assets, and a revolving line of credit.

One of the most popular forms of finance , growing constantly in popularity, is A/R financing . Why? Simply because it provides significant capital without additional equity and allows you to avoid long term debt. Essentially you are monetizing your current assets, ie receivables .

Yes a/r finance has a higher cost, and we spend a lot of time in speaking to clients around the fact that the old stigma of A/R factoring disappears more and more every day. The old alternative is fast becoming the new traditional!


The benefit of A/R Finance also includes that fact that your sales in effect become an ATM machine, generating true cash as you sell products/services. This type of business finance also is an effective way to manage seasonal bulges in your business.


Inventory financing is typically done in combination with a bank line of credit, but is even more effective when in conjunction with a non bank asset based line of credit.Good inventory financing strategies are available if your firm has quality products; good inventory turns, and is not of a perishable type - i.e. food.


Equipment financing is a solid use of intermediate financing. It allows you to avoid large cash outlays, replenish assets and technology, is easier to obtain from a financing approval point of view, and allows you to simply pay for assets over their useful economic life. A huge portion of all businesses in North America lease both new and used equipment .

The bottom line in Canadian business financing options ? You can eliminate the turbulence that comes with business finance challenges by understanding what sources are available for what maturity. Simple as that.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success , assisting you with your needs for financing sources in Canada to run and grow your company.



7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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 .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
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

Business Financing Options In Canada Can Be Crafted For Your Funding Needs

Looking For An SME Commercial Finance Playbook?

OVERVIEW – Information on business financing options in Canada. Funding your business needs is all about ensuring you understand all the alternatives







Business financing options in Canada require a ' crafting' of your specific needs to your firm and your industry. While all entrepreneurs can be forgiven for thinking their company is special the reality is that many of the needs of any industry are in fact quite similar as they relate to capital needs, cash flow dynamics, etc. Let's dig in.

How does the Canadian business owner and financial manager ' tap into ' the right finance options? Ultimately it comes down to 3 sources of long term or operating capital - Canadian chartered banks, the government, or independent commercial finance and leasing companies .

In some cases the financing you undertake will be temporary, other times it will be long term in nature. Temporary financing are very valuable in that they are often more accessible, solve urgent needs, but of course come with a higher borrowing cost. The goal of every owner/ finance manager, particularly in the SME sector is to ensure that over a long period of time you have the operating capital you need... to survive.. and grow.

One positive aspect in government’s role in business is the programs they underwrite for some very ' niche ' financings. One of these is the SBL - The Government small business loan program. Providing financing up to 350k for firms with less than 5 Million in actual or projected revenue is what this program is all about. And coupled with very generous rates, terms, and loan structures that satisfy even start ups or franchisee borrowers we can heartily recommend that program to any client.

The banks of course are the govt ' operating partner' in the SBL loan program. If we have to state one thing we personally have never liked its how each bank has it’s over version of how they administer the program - trust us that some banks are better than others in this regard.

We're the last to be fond of heavy govt involvement in business - but we're the first to have a strong respect for

SR&ED credits for research, as well as the film/TV and animation credits that populate the Transmedia industries in Canada. And the better news is that both of these tax credits can be financed either when filed or in some cases before. Your ability to ' cash flow' the government promise to pay you is... quite frankly... a good thing.

Credit unions in Canada have never been major lenders to Canadian business - that is changing a bit... some seem more interested than others, but their localized approach and limited funding has some challenges for Canadian business borrowers.

What then are some of the other alternatives that can be crafted into providing your firm with all your business financing needs? They include cash advance programs for retailers, asset based non bank lines of credit for revolving credit facilities, and equipment finance firms. All of these tend to be the domain on non bank commercial finance firms.

While non bank solutions are always available, they tend to be more expensive, so the business owner/manager must be prudent around cost and benefits of non bank capital.

We're talking mostly about debt financing and asset monetization, not equity business funding. So it’s all about ensuring you're able to match the benefits of any funding with the cost of that capital. While capital might be high because of your firms particular circumstances it can still help you grow revenues and turn profits.

We're reminded about Warren Buffett’s

great line ‘PRICE IS WHAT YOU PAY, VALUE IS WHAT YOU GET '. His bottom line was simple... business financing options might be considered expensive but never let them overtake ultimate value when it comes to choosing business funding, particularly non bank in nature.

If you’re looking for the right ‘ playbook’ or script on proper business funding seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business funding needs.



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 Business Funding Options






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Phone = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

Stan Prokop

Business Financing Options Are Worth More To Your Business Than You Thought. Finance Sources 101

Heres A Backdoor Entry To Business Finance Options In Canada


OVERVIEW – Information on business financing options in Canada. Knowing Your Finance Sources And Their Value .. Counts!




How much are Business Financing Options worth to the Canadian business owner/ financial manager. Top experts agree it’s quite a bit, so let’s provide the owner / manager with some privileged ' backdoor entry' into some key information and source for financing your business in Canada. Let's dig in.


The issue of knowing where your capital is coming from (term debt or operating cash flow) is pretty well top of mind for most business owners, whether they are in start up, or growth mode. The reality is that depending upon the type of business and industry you is in there are different levels of capital need. It goes all the way from one extreme to the other, capital intensive businesses, or high cash flow / working capital needs based on investments in receivables, inventory, technology, etc.

There is no discussion on Canadian business financing in Canada that happens without talking about the pros and cons of chartered bank financing for commercial loans and operating lines of credit. While large credit worth corporate borrowers have really unlimited access to bank capital the challenge for business in the SME / START UP sectors is much greater. There the focus is on personal credit history of the owners, collateral, length of time in business, etc.

Very few transactions in SME banking are done around inventory financing, equipment finance, and equipment lease needs. In fact, while some of the banks have their own independent leasing divisions the great rates and structure they require necessitate you moving your entire banking relationship over to them, which often is undesired or impractical.

Business owners in start up or SME (Small to medium enterprise) sectors should always also be cognizant of their personal credit history status. Banks and other lenders often immediately disqualify a borrower who has unsatisfactory personal credit history. TIP: Credit bureau scores of 650+ are typically desired.

One of the great mistakes business people make is to not have a plan for growth. Often that revolves around having a solid business plan and cash flow forecast, the latter being more important in some ways. Knowing when you will need more financing is a valuable commodity in business.

Because many business owners don’t understand their alternative financing options they spend a lot of time chasing ' equity or venture captial'. If the business owner takes some time to understand how private equity groups and VC's work they will save themselves a ton of time and understand very quickly that only 1% of all transactions submitted in this sector get financed
. Do we even need to mention that giving up equity in early stages of your business dilutes ownership and future returns on your work and investment?
Hopefully not.

What then are the alternate sources of capital for business -?

They include:

A/R Financing
Inventory finance
Asset based non bank lines of credit
Sale leasebacks
Tax Credit Financing
Unsecured Cash flow Loans
Bridge loans
Royalty finance schemes
Govt SBL loans - Hint - They are not offered by the govt itself!

So whether you are going in the front door of a Canadian bank or the back door via alternate finance strategies seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your finance sources that make busines financing options make sense.



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 Business Financing Options Expertise





Have A Question Or Comment On Our Blog Or Canadian Business Financing Alternatives ?


CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com































Stan Prokop

Business Financing Options . Ready For A Really Good Year When It Comes To Loans And Borrowing?

Business Finance Options Aren’t The Light Years Away You Think

OVERVIEW – Information on various alternative and transitional finance options that simply become loans and asset monetization that gets your company where it needs to be



Business financing options in Canada . Is your firm having a ' good year' when it comes to loans, business borrowing, asset monetization, etc? Unfortunately many firms can’t make that positive statement when it comes to capital solutions for their company. So are financing options really seeming ' light years' away? It certainly doesn't have to be the case, so let's dig in.


Many forms of financing these days carry the word ' alternative ' with them - in reality a better description for them is temporary, interim or conditional. That is to say they are mechanisms to either give you a good financing start, or in some cases, get you back to where you want to be.

One such method is receivable financing. When your firm has sales revenues but can't qualify for traditional commercial bank lines of credit then A/R finance steps up to the plate really quickly... Very typical timelines for a firm to have and carry such a facility tend to be 1 to two years. More often than not the company regains banking status (lower cost) and then continues to grow and thrive in a positive manner.

One often misunderstood point about AR finance is that it includes only companies that sell real products. However if you firm provides a service, or perhaps software , or even has progress billings related to the delivery of your services your business can still be financed in this manner.

Another major misconception is that when you are working with a commercial receivable financing company they tend to take full control of your A/R function, including billing and collections and client notifications. That certainly DOES NOT work for many of our clients, which is why we propose CONFIDENTIAL A/R FINANCING as a solution. The bottom line on that one? You bill and collect your own receivables and maintain full control of the client interaction.

One other form of solid financing solution that’s often ' interim' in nature is the ABL loan. It is a comprehensive business line of credit that combines your asset of receivables , inventory, equipment, and real estate ( the latter if applicable) into one business credit line that revolves on a daily basis as your borrowing needs dictate relative to sales and collections going up and down, as they do in any business.

Companies often need new assets when it comes to growing or maintaining their competitive posture. Enter equipment financing, allowing you to finance assets. Although everything from a new photo copier or a laptop up grade for your employees can be lease financed the solution makes most sense when it comes to larger ticket items. That is a proven fact - using our friends in the U.S. as an example over 85% of larger ticket items in business are in fact acquired through a lease financing solution.

One of the most popular methods in the past of acquiring assets under a lease strategy was using the ' operating lease'. This financial ' trick' if we could call it that , allowed you to move asset debt off the balance sheet ... the arrangement being that you were ' using ' the asset, , not ' owning ' it with the debt that comes with that type of transaction. Over the years bankers, analysts, and investors in companies have more or less figured out that it's still a debt though, they just have to dig harder in the financials to figure it out!

Although operating leases ' seem' less in vogue today they still make solid sense when it comes to technology solutions for computer hardware, software, telecom equipment, etc.

There a many reasons why you might be looking for a transitional finance solution. They might include:

Meteoric growth (typically not understood by banks)
Cash flow and debt ratios that is temporarily out of whack
Repayment required to investors/partners
CRA issues that need to be resolved ( asap!)

Etc


Seek out and speak to a trusted, credible and experienced Canadian business financing advisor , who will show you the financing you need isn’t in fact ' light years ' away, its here today with interim solutions that make sense.


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 :


http://www.7parkavenuefinancial.com/business-financing-loans-options.html




CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com














Stan Prokop

Business Financing Options . Difficulties In Learning To Love Financing Funding Alternatives In Canada ?

Need A Checklist For Business Financing Success?


OVERVIEW – .Information on business financing options in Canada . External Financing Issues and recommendations



Business financing options in Canada . Boy is it difficult to learn to love something that always seems so elusive. Is there though, a checklist we can employ to ensure finance funding strategies can properly be put in place? We think there is, so let's dig in.

Having a strong sense of your current overall capital/ financing structure is important as a starter. That will of course determine the amount of debt your firm can or can’t take on.

Any sort of intermediate or long term debt affects how the banks or other commercial lenders view your firm in the context of additional credit extension. In some cases a more positive solution might be to monetize current assets such as receivables and inventory - these don't add debt to the balance sheet and simply enhance working capital and cash flow.


A good example of asset monetization. It might inlcude, but not be limited to:

A/R Financing
Commercial bank lines
Non Bank asset based lines of credit
Sale leasebacks
Monetizing tax credits

If you’re firm has access to what we can call traditional capital you need to be in a position to understand current interest rate trends in the context of Canadian commercial borrowing.

Another key checklist point is to understand and have a handle on your overall corporate objectives. Are they focused on cash flow and working capital, or building assets and infrastructure to enhance long term growth?

Remember also that depending on the type of financing you undertake that there are always some tax ramifications which should be both understood in the context of talking to your accountants re pros/cons, future liabilities, etc.

Your company's overall profitability will also affect the type of financing you can undertake. If you don't have current on ongoing profitability in some cases you have access to business credit - however it will be at a cost. A typical situation might be a firm that is in turnaround mode.

If your firm is in growth mode you need to look out at the intermediate term and determine the amount of working capital levels you need. All companies are in different stages - which ranges from start up to mature and working capital levels, and access to them... differ.

A key factor that many clients we talk to seems to be forgotten on occasion is the fact that you need to plan for future cash fall shortages. Here the old adage of getting financing in place when you don't need it is important. In some cases it might, but not always, make sense to consider more equity financing from owners. Dangers of additional equity financing include though certain restrictions that will affect how you can operate the company in the future.

If a lot of your financing needs are affected by what we could call ' external' forces you need to really focus hard on stability and reliable financing.

In some cases firms with challenges can ' refinance the company - i.e. lengthen the term of financing in place, etc.

So, are business financing options and finance funding your ' elusive butterfly’? Proper planning helps eliminate the problems your firm encounters for financing success. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your needs.



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 Business Funding And Financing Options









7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com














Stan Prokop

Business Financing Options In Canada . Don’t Make These Mistakes!

Don’t get us wrong, but we don’t believe in Angels !

OVERVIEW – Information on business financing options in Canada . Sources of financing and alternatives just might be more plentiful than the business owner or manager might think!




Business finance options in Canada. And oh yes, we don’t believe in angels! We’re not talking about those heavenly ones, just primarily VC’s and angel investors.

Truth be told we acknowledge and respect them of course, it’s just that we cringe when we talk to many clients who focus on these two sources of capital when the reality is that 98% of the funding your firm needs is probably only available from debt financing, and asset monetization for working capital or cash flow. That ' equity capital' search unless for firm simply wastes valuable time – unless you’re ready. Many are not!

While the sources of funding for the Canadian business owner and financial manager might seem plentiful in the TV commercials or newspaper, the real world tells us that there are a lot of trick obstacles facing the owner /manager looking for financing options.

Is there a way to change all that and make ensure that the odds aren' so stacked against you. We think there is and it comes down to simply knowing what business finance options are available to you and picking the one ( or ones ) that suits your operational or growth needs,

So how do you analyze and choose debt or asset monetization options. Our clients think it has to be a Canadian chartered bank solution. And we're the first to start working on that , provided you have cash flow , collateral, profits, a clean balance sheet, and solid owner personal credit histories. That's tough to achieve these days for many, which still leaves a number of financing solutions on the table.

They include:

Asset based lending

Receivable /Invoice Cash Financing

Government guaranteed SBL loans

Equipment finance /leasing

Non bank asset lines of revolving credit

Tax Credit Monetization

PO/ Supply chain financing

Sale leasebacks

Securitization/mezzanine financing

P.S. We’re e not fans of ' friends and family loans' as they make those warm family gatherings somewhat uncomfortable!!

You might not know it but in a lot of cases your borrowing power is already pre-determined if you're already in business and have assets. Receivables can be financed up to 90%, inventory financing ranges from 25-60%, and appraised assets can be financed anywhere from 50- 80% of their true value. Many clients we work with consider refinancing their buildings and assets as a great source of working capital when the rate and structure is suitable.


The goods news about these solutions, again with apologies to all those great angel investors and venture capitalists in Canada, is that you aren't required to give up equity ownership when you source any one of these options.



So , yes you can consider those angels and VC's with the searching and managing that comes with that journey, but remember that there are a lot of straightforward financing options readily available for your firm if you have growth prospects and assets .

So, cancel that IPO (really, what were you thinking?!) and seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs. Eliminate the complications and the risk, and get the business financing options you need.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS FINANCING OPTIONS EXPERTISE




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
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com













Stan Prokop

Canadian Business Financing Options . Don’t Make These Credit Finance Mistakes

Information on Canadian business financing options . It’s all about timing and the right finance and credit choices.


Here’s How To Not Lose Control On Business Finance Options And Solutions






Canadian business financing options. Here's a question for business owners and financial managers. Do you really think you have made the right business credit and finance choices for your firm?

When we talk to clients it's often clear they are not sure they have the right finance mix for both survival and growth of their business.

Contrary to what many businesses think they actually do have a lot more choices than they think. Often times the owner/manager is focused solely on a final approval for ' any ' type of financing that seems to fix that days problem.

What the owner/manager doesn't realize is that as your business grows and matures different financing options are both required, and available. That of course covers us all the way from start up to mature!

So what are some of those mistakes that are being made... and more importantly how can you avoid them? Let’s cover off some basics.

The first point is that at certain stages of your business growth it’s all about ' collateral ' when it comes to business lending. Our point here is that different forms for finance require different forms of collateral, and in fact you quite often aren't required to put up as much collateral as you think.

One area is the personal guarantee, which in many forms of business financing is sometime very much required, and in other instances has little emphasis put on it. Quick example - in a start up environment there is going to be significant emphasizing of personal credit and net worth of the owners. However down the road your firm might be eligible for millions of dollars of asset based lending finance, and that type of financing does NOT place a large amount of emphasis on personal guarantees.

So it’s all about ensuring you don’t over pledge on collateral when you don’t need to, while at the same time recognizing that the type of financing you require is going to focus on the collateral aspect. But it might not be all of your collateral - its all about the negotiation process.

Receivable financing, which is a subset of asset, based lending in Canada and if you have solid A/R clients external collateral shouldn’t really be on the table for discussion.

A lot of business owners misunderstand how their personal finance and credit history can affect their ability to get business credit. At the same time larger firms with established collateral does not really overly focus on personal credit of owners. But we do caution the start up firm that banks and other commercial lenders view your personal credit as a signal as to how you might run your business finances. Enough said!

A third area of potential mistakes revolves around the fact that business owners are sometime poor at matching the financing they have access to with what they really need. Here it’s critical to understand how your cash flow and collateral fits into each different type of business financing, and what rates make sense for the type of financing you're trying to achieve. Quick example - for revenue generating assets solutions such as long term equipment leases make sense. Don't use cash or credit lines which typically give your working capital.

It's all about two simple choices - are you looking for debt in the form of long term loans, or are you wanting to monetize assets for cash flow and working capital . Once you understand your options its all about deciding which of these options works for you best:

Receivables finance
Bank operating lines
Equipment leasing
Working capital term loans
Non bank Asset based lending
Securitization


Our bottom line - it’s about access to knowledge and execution of the proper business finance strategy. Speak to a trusted, credible and experienced Canadian business financing advisor on your business finance needs.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS FINANCING EXPERTISE





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 7 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 :

http://www.7parkavenuefinancial.com/business_financing_options_finance_credit.html