Canadian Business Financing - Capital Funding And Finance Solutions And Tips

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 Business Finance For Smart People

Canadian business financing solutions. Does it seem that the capital funding you need to finance your business is always ... elusive? Knowing how healthy your company is will allow you to select methods of financing your business.

 

 

MAKING THE RIGHT DECISIONS IN BUSINESS FINANCE 

 

Over the long term that adds value to your business and allows you to make the best decision possible around accessing capital, or even buying a competitor or synergistic partner. So consider us your mentor on one of the biggest challenges to business in the SME sector today - funding!

 

FINANCING NEW ASSETS  

 

Are you effectively financing your assets?   How you do that effectively allows you to manage your cash flow and working capital, budget for next year, and determine if you're as profitable as you can be. In cases where you are not generating profits now the ability to finance assets and growth can turn that around quite nicely.

 

Quick case in point? The other day we met with an established small business that had modest revenues in the 400k range. They had aggressive plans to grow to well over a million dollars this year. Only problem? No financing to get there, or eliminate the current operating losses due to a heavy investment in marketing their product to the ' BIG BOX ' stores.

 

 BUSINESS FUNDING TO ACCELERATE GROWTH  

 

Our recommended solution to the client?  A combination receivable / inventory working capital line of credit, combined with a supply chain/PO financing solution. If implemented the client would have a lot more confidence in reaching that new aggressive sales goal. Hey, maybe they could turn a profit also?!

 

BUSINESS FUNDING FROM THE GOVERNMENT?  YES YOU CAN !

 

The Canada Small Business Financing Program is an excellent capital funding solution for Canadian business financing needs. This small business loan funds leasehold improvements, equipment and even real estate. It is not a ' cash flow/working capital/line of credit  ' loan per se and only funds the three asset categories we have mentioned here. Interest rates are very competitive in this small business financing program. Small business loans for startups are difficult in the best of times - let's not even mention a pandemic !!! , so the ability to fund your company at an interest rate and term that suits your capital needs is a solid benefit to the entrepreneur.

 

Under the program, the government of Canada allows the financial institution, ie a chartered bank or business-oriented credit union to administer the program under the government auspices. While many business owners chase venture capital, angel investors, friends and family funding they eventually find these solutions for the smallest amount of eligible firms.

 

 

UNDERSTANDING YOUR FINANCIAL STATEMENTS IS CRITICAL

 

 

A lot of clients we meet shy away from the financing... or dare we say it ' accounting ' aspects of their business. In some cases, they entrust that role to a bookkeeper or other employee who is the farthest thing from a finance analyst, controller, CFO, etc.  Our point - you don't have to be any of those to have a strong handle on your business. It's simply about understanding some business relationships (others call them ratios) and getting some solid assistance from, let’s say, a Canadian business financing advisor to implement solutions around some of those balance sheet, profit, and cash flow parts of their business.

 

  

CAN YOU ANSWER THE FOLLOWING QUESTIONS?  

 

Investing some time and internal or external expertise allows you to finance the assets you have to their highest use.  Are you 100% comfortable in answering the following questions:

 

- Are we aware of all options to finance inventory and equipment needs

 

- Will it be necessary to put in more owner capital (sometimes it is, but never always!)

 

- What in fact are the basic sources of traditional and alternative capital?

 

- Should I lease business assets, or purchase them outright?

 

-  Can we generate more cash flow out of our accounts receivable?

 

CONCLUSION

 

Business Financing Canada style doesn't have to be the challenge and mystery that it seems to be for many business owners and financial managers, Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your finance and funding needs.

 

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. 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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BUSINESS FUNDING IN CANADA & BUSINESS FINANCING SOURCES

Business financing solutions in Canada clearly demonstrate that the types of loan and cash flow financing you need are clearly not equal in value and accessibility to business owners and financial managers. There are numerous types of business financing. Here's why, so let's dig in!

Any company borrowing for funds for business money will usually encounter some difficulty in taking on debt, and when there is an economic downturn, pandemics included! Whether it's financing startups or mature companies, those challenges to source business capital can be even more overwhelming.

In challenging times the ability to source debt capital is very challenging and time-consuming and the ability to work with an external business financing advisor is often recommended unless of course you and your own team are exceptionally qualified and have the management time to source capital.



Capital Funding will usually mean a combination of financing for day to day operations as well as long term finance needs. That final capital structure will be a combination of debt and equity, with lenders expecting a return on their capital and owners hoping to achieve a proper return on investment - ' ROI '.


Funding a business and acquiring assets for your business, whether that be equipment, buildings, rolling stock, and investments in technology - ie computers, software, etc typically should be acquired through proper debt instruments such as loans, leases, mortgages, etc. Matching the useful economic life of these assets to the proper finance solution is the goal! The amount of debt you take on to acquire these assets will force a dilution effect on the owners equity in the business - again pointing out the need for the right amount ... and type... of debt.


Banks and commercial funding companies in Canada are the two foremost sources of business capital and typically provide the basic financing needs you require to run... and grow the business. Financing costs are of course an expense and lower the overall pre-tax profit of your business - no secret there.

Business owners and financial managers should always be testing the cost of their debt in order to allow the company to move forward with the right goals around its costs of borrowing and return to shareholders/owners.

Many industries are very 'capital intensive ' and require a much larger amount of capital as compared to service industries, so depending on your industry, as well as what ' stage of growth ' your company is in will be the key drivers around types of short term and long term finance.

The ability to diversify your finance solutions is often recommended by experts; that might be at the start-up stage or in times of high growth. When business challenges occur that diversification allows you to consider ALTERNATIVE SOURCES OF FINANCING. In recent years many new finance solutions in alternative financing compete aggressively with traditional financing via Canadian chartered banks. It is safe to say that any type of financing, either traditional or alternative has different benefits and disadvantages that must be weighted by owners.

What Are The Best Financing Options For A Business

Many different types of business finance solutions exist - the challenge revolves around your ability to ensure you're pursuing the right type of loan or cash flow financing solution.

At 7 Park Avenue Financial many firms we work with are in the ' startup funding ' stage; new business funding for owners who have committed some of their personal capital and are looking for additional financing to start/bootstrap the business. Entrepreneurs consider every source of capital, even tapping that ' friends and family ' and ' Angel ' investors. Some consider the venture capital route which is very time consuming and expensive and typically not appropriate for the majority of startups. Those ' VC ' type deals seem most common in the technology/software area/biotech area. Often a large amount of equity must be given up by founders to receive substantial financing.

Occasionally government grants and government VC capital might be available. Companies going the VC route will have considerable pressure to quickly get to a hyper-growth stage allowing investors to recoup their investment via some sort of exit strategy.

One other source of business capital for more traditional businesses, including franchises, is the Government of Canada Small Business Loan program, providing up to $ 1,000,000 of debt for three specific categories of assets: Equipment, Leaseholds, and Real Estate.

Many business owners/entrepreneurs aren't familiar with the Canadian govt small business loan program. We can call it the ' bread and butter ' in terms of the phrase ' government loans'. Clarification is required here because it's not the gov't that actually funds the loans, it's Canadian banks with the loan guarantee in place from the federal gov't.


For Canadian business owners, timing is pretty well ... everything! That’s why with careful preparation of your submission a loan can be approved in a matter of days



Getting back to our theme of ' timing is everything ' an even more accessible solution for owners/mgrs is the working capital term loan. Often provided on an ' unsecured ' basis these loans are based primarily on the cash flow within your business bank account. There is a lot less paperwork required and funding can occur within days.



Many businesses, particularly in the SME sector (small to medium enterprise) require purchase order funding solutions when they receive orders and contracts far in excess of their normal financing capabilities. P O Financing allows companies to access new markets and larger customers, enhancing revenue growth.

Most times even international orders of almost any magnitude can be financed if your firm has a qualified buyer and a legitimate supplier. Because of that most firms also require a business credit line, in some cases called an ' ABL ' line. These revolving facilities are provided by traditional financiers such as banks, and, somewhat unknown to most, commercial finance companies often referred to as 'asset-based lenders '.



What information is required in order to assess your firm’s qualifications under most types of financing? It's not as complex as it might seem. Traditional applications often include just financial statements, but can also be augmented by a business plan or cash flow forecast. Canadian banks are typically the first ' go to ' for many business owners, and a lot of time can be spent on finding a bank, and banker, that can meet your specific needs.

Borrowers find out very quickly that banks are looking for well-performing firms that have sales, assets, clean balance sheets, and profits. Those attributes, combined with a solid BUSINESS PLAN and cash flow projection will typically lead to financing success with a bank. Canada's crown corporation non-bricks and mortar bank for entrepreneurs will also provide solid financing solutions.

In certain cases your firm might be a solid candidate for cash flow loans, often called 'mezzanine finance; with the loan secured solely by those predictable cash flows you must be able to demonstrate. These loans are often viewed as the interim bridge between debt and equity.

Both working capital term loans, as well as short term cash flow loans, are very popular in current times. Any company showing good growth is a candidate for a cash flow loan either traditional in nature, or of the type offered by a multitude of short term working capital lenders. The latter type of loan is typically a one year loan and is based on a simple formula of 15-20% of your annual sales. With these loans rates are higher as lenders are looking for higher rates of return given the loans are not collateralized.



In all cases you should be prepared to demonstrate the type of collateral that requires financing (which might include just your sales), mgmt experience, and a solid understanding of how business loans or cash flow facilities will be repaid or revolve.

We have demonstrated there are numerous sources of funding for businesses. Careful time and consideration must be given to the type of financing your business needs - different costs and risks are associated with every type of financing.


So yes, it’s true, not all business financing solutions are equal when it comes to benefits or qualifications. Seek out speak to a trusted, credible and experienced Canadian business financing advisor to determine your exact needs and potential solutions.


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. 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

Business Financing Capital Funding Solutions In Canada

Reality Check ! Business Loans in Canada And asset Based Capital Funding

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What works when traditional Canadian business financing doesn’t?

Information on asset based business loans in Canada. 'A B L ' financing provide working capital and cash flow to Canadian businesses who are unable to obtain ' traditional ' financing for operations and growth

You're forgiven. For what? Surely Canadian business owners and financial managers can be forgiven for thinking that there is few, (if any?) capital funding asset based business loans for Canadian business.


Between the global credit crunch, a Canadian recession, and the traditional bank retreating on business credit in every owner or CFO must surely dwell on the potential inability to take advantage of growth and sales opportunities via access to the right amount of working capital and cash flow to satisfy both day to day needs, and of course, that growth.


Asset based lending in essence goes ' under the covers' of your balance sheet - and whats under those covers, assets, not rations or covenants!


By financing those assets in a creative manner that leverages there true value your business is on the road to working capital solutions that you never imagined.


When clients talk to us about asset based business s loans their situations vary dramatically. Industries fall in and our of favor - so firms are experiencing a variety of what we can only term unique situations. What are some of those situations - well they might include stratospheric growth via new purchase orders or contracts, restructuring for a variety of reasons , buyouts or acquisitions , and that old catch all ' the turnaround '.


So is there one solution for all of these major business situations and challenges. We are always hesitant to say that ' one size fits all' but in reality the asset based lending available in Canada is quite frankly the new kid on the block that gains more acceptance everyday .


Why does this solution work better than a traditional one? One of the things we explain to clients is that in effect is a customized solution that takes a hard look at all your assets - those include inventory, A/R, equipment, and in some cases you can actually margin real estate.


So who qualifies and who doesn’t is a typical question asked by business owners. The reality is that larger firms are very closely suited to an asset based line of credit, but a whole second tier of offerings are available for firms who need 250k and up on a monthly basis .


Pricing often becomes a discussion point for this type of working capital and cash flow facility. We quickly point out to clients that although asset based business loans in Canada are more expensive than bank facilities; the reality is that they are custom tailored to your firms ongoing daily cash flow needs. They don’t require ratios and covenants to get the loan facility approved, and guess what, no debt goes on the balance sheet, you are simply monetizing those assets.


Its all about access to capital funding - if the old ways don’t work then clearly you should explore the significant benefits of an asset based line of credit. Speak to a trusted, credible, and experienced business financing advisor who can assist you in navigating the Canadian market.







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.

Loan Finance And Successful Capital Funding In Canada Shouldn’t Be Weird Science

First And Goal In Business Financing Loans In Canada

OVERVIEW – Information on capital funding in Canada . Loan finance and asset monetization strategies come in a variety of traditional and alternative solutions

Capital funding in Canada, successfully, doesn't have to feel like ' Weird Science ‘. Loan finance solutions , including loans, working capital and cash flow often have the business owner manager feeling like its a ' first and goal ' scenario . Let's examine one thing... doing it right when it comes to financing your business. Let's dig in.

The ability to ' raise money' is one of the key areas of starting, running and growing a business. How though can the owner/manager, who is so focused on daily issues and long term planning get a real leg up in an area they might sometimes not feel 100% uncomfortable in.

If there's any good news in Canadian Business financing its that numerous newer innovations in loan finance and asset monetization is allowing business owners to get ' unstuck ' in this area. They can be forgiven for feeling that cash flow solutions are the ' Bigfoot'

of business - rumored to exist but only experienced by a few!

Canadian chartered banks are among the strongest / best run in the world. Yet thousands of business people spend a lot of time applying for ' bank loans' only to find they cant meet bank criteria for some or all of their capital needs. Those criteria by the way are pretty basic - established business, profitable, clean balance sheet, reasonable debt, profits, and positive cash flow.

In the SME COMMERCIAL FINANCE area the personal credit of the owner is often critical in accessing capital, as the bank or commercial finance firm views that area as critical in repayment or collateral

We're not quite sure that business owners/managers always understand that any level of growth will always bring cash flow challenges. Monetizing assets is a solid way to run/grow business. Accounts receivable are the second most liquid asset on your balance sheet, and numerous A/R financing solutions exist to turn this asset into cash. While the cost is higher than bank credit lines the ability to turn sales into same day cash is persuasive. Solutions such as Confidential Receivable Financing allow your business to bill and collect its own accounts - no notice to clients /suppliers is involved.

Other working capital solutions include:

P O / CONTRACT FINANCING

ASSET BASED LINES OF CREDIT

SR&ED TAX CREDIT FINANCING (if applicable)

INVENTORY FINANCE

SALES/ROYALTY FINANCING

SALE LEASEBACKS

Retailers can access Merchant Advances for cash flow as they typically carry no receivables.

The benefit of cash flow capital funding solutions is that once established, they are predictable when it comes to growing your business and accessing working capital as you need it.

While new of smaller businesses don't really qualify for ' debt financing ' the one solution in this area that is very feasible is the Govt Guaranteed Small Business loan, allowing access for up to 350k of financing for equipment or leasehold improvements.

If you're looking to eliminate that ' weird science' feeling in accessing loan finance solutions that make sense and are truly achievable consider seeking and speaking to a trusted , credible and experienced Canadian business financing advisor who can assist you with your capital funding needs . For the first time ' first and goal' actually seems attainable!



Stan Prokop - 7 Park Avenue Financial :

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 90 Million $ of financing for Canadian corporations . Info /Contact :



7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS LOAN FINANCE SOLUTIONS EXPERTISE








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

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Canadian Business Financing . Capital Funding And Finance Solutions And Tips

Business Finance For Smart People !


OVERVIEW – .Information on Canadian business financing solutions . Capital funding for your business is crucial to long term growth and operations .




Canadian business financing solutions. Does it seem that the capital funding you need to finance your business is always ... elusive? Knowing how healthy your company is allows you to select methods of financing your business.

Over the long term that adds value to your business and allows you to make the best decision possible around accessing capital, or even buying a competitor or synergistic partner. So consider us your mentor on one of the biggest challenges to business in the SME sector today - funding!

Are you effectively financing your assets? How you do that effectively allows you to manage your cash flow and working capital, budget for next year, and determine if you're as profitable as you can be. In cases where you are not generating profits now the ability to finance assets and growth can turn that around quite nicely.

Quick case in point? The other day we met with an established small business that had modest revenues in the 400k range. They had aggressive plans to grow to well over a million dollars this year. Only problem? No financing to get there, or eliminate the current operating losses due to a heavy investment in marketing their product to the ' BIG BOX ' stores.

Our recommended solution to the client? A combination receivable / inventory working capital line of credit, combined with a supply chain/PO financing solution. If implemented the client would have a lot more confidence in reaching that new aggressive sales goal. Hey, maybe they could turn a profit also?!

A lot of clients we meet shy away from the financing... or dare we say it ' accounting ' aspects of their business. In some cases they entrust that role to a book keeper or other employee who is the farthest thing from a finance analyst, controller, CFO, etc. Our point - you don't have to be any of those to have a strong handle on your business. It's simply about understanding some business relationships (others call them ratios) and getting some solid assistance from, let’s say, a Canadian business financing advisor to implement solutions around some of those balance sheet, profit, and cash flow parts of their business.

Investing some time and internal or external expertise allows you to finance the assets you have to their highest use. Are you 100% comfortable in answering the following questions:

- Are we aware of all options to finance inventory and equipment needs

- Will it be necessary to put in more owner capital (sometimes it is, but never always!)

- What in fact are the basis sources of traditional and alternative capital?

- Should I lease business assets, or purchase them outright?

- Can we generate more cash flow out of our accounts receivable?


Business Financing Canada style doesnt have to be the challenge and mystery that it seems to be for many business owners and financial managers, Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your finance and 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 :

CANADIAN BUSINESS FINANCING CAPITAL FUNDING





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

A Reality Check On Business Loans in Canada And asset Based Capital Funding

You're forgiven. For what? Surely Canadian business owners and financial managers can be forgiven for thinking that there is few, (if any?) capital funding asset based business loans for Canadian business.

Between the global credit crunch, a Canadian recession, and the traditional bank retreating on business credit in every owner or CFO must surely dwell on the potential inability to take advantage of growth and sales opportunities via access to the right amount of working capital and cash flow to satisfy both day to day needs, and of course, that growth.

Asset based lending in essence goes ' under the covers' of your balance sheet - and whats under those covers, assets, not rations or covenants!

By financing those assets in a creative manner that leverages there true value your business is on the road to working capital solutions that you never imagined.

When clients talk to us about asset based business s loans their situations vary dramatically. Industries fall in and our of favor - so firms are experiencing a variety of what we can only term unique situations. What are some of those situations - well they might include stratospheric growth via new purchase orders or contracts, restructuring for a variety of reasons , buyouts or acquisitions , and that old catch all ' the turnaround '.

So is there one solution for all of these major business situations and challenges. We are always hesitant to say that ' one size fits all' but in reality the asset based lending available in Canada is quite frankly the new kid on the block that gains more acceptance everyday .

Why does this solution work better than a traditional one? One of the things we explain to clients is that in effect is a customized solution that takes a hard look at all your assets - those include inventory, A/R, equipment, and in some cases you can actually margin real estate.

So who qualifies and who doesn’t is a typical question asked by business owners. The reality is that larger firms are very closely suited to an asset based line of credit, but a whole second tier of offerings are available for firms who need 250k and up on a monthly basis .

Pricing often becomes a discussion point for this type of working capital and cash flow facility. We quickly point out to clients that although asset based business loans in Canada are more expensive than bank facilities; the reality is that they are custom tailored to your firms ongoing daily cash flow needs. They don’t require ratios and covenants to get the loan facility approved, and guess what, no debt goes on the balance sheet, you are simply monetizing those assets.

Its all about access to capital funding - if the old ways don’t work then clearly you should explore the significant benefits of an asset based line of credit. Speak to a trusted, credible, and experienced business financing advisor who can assist you in navigating the Canadian market.
---

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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/asset_based_business_loans_canada_capital_funding.html