SME Finance Commercial Financing Options In Canada : Reshaping Business Loans And Finance Solutions

Looking For Extra Strength Canadian Business Financing in The SME COMMERCIAL FINANCE sector ?

OVERVIEW – Information on SME FINANCE solutions and commercial financing options in the small to medium enterprise sectors of Canadian business. What loans and asset monetization strategies make sense




Commercial financing options in the SME Finance area are constant challenges to business owners and financial managers. The ' SMALL TO MEDIUM ENTERPRISE area of the Canadian business is often touted as driving the economy - why then are loans and asset financing strategies often hard to come by - or are they ? Let's dig in.

Business owners and financial managers need to adapt to the changing face of business finance in Canada. Success in business comes from many aspects of management. and financing is certainly one of them.

You only need to talk to any one in this sector to realize they often feel they are highly UN - supported by Canadian banks. That's somewhat ironic of course given the stellar international reputation of our banking system. In fact top experts tell us that the ‘mortality rate ' in the SME sector is often higher and places all the challenges of business on a single owner or partnership.



So are those financing options in fact ' limited ‘. Not necessarily. One or any number of the following options can help propel a business to growth or profits. They include - but are not limited to:

A/R Financing / Confidential Receivable Financing

Government Small business loans - Guaranteed by Ottawa

Working Capital Term Loans

Equipment Financing

Sale Leaseback strategies

Franchise financing

Non bank asset based lending

Unsecured bank loans

Mezzanine financing

Royalty /Revenue strategies

Asset based non bank lines of business credit

Inventory Financing

PO / Contract Finance

Tax Credit Financing - (SR&ED / MEDIA tax credits)

SME owners don't always necessarily have the same goals as larger corporations - many are owner income driven, and issues such as productivity or asset growth aren't necessarily top of mind.

SME's typically have a ' life cycle ' associated with them - i.e. product /service development, early growth , hyper growth, mature, etc. Understanding where your company or business is in that cycle allows the business owner, when he or she has the right expertise, to match financing to challenges.

Choosing the right type of financing is often part of the ' risk ' decision. The amount of personal control via taking on debt, personal guarantees, or having to provide outside collateral are all key factors that need to be tabled and discussed. While a large corporation might consider growth with significant risk the an SME owner may simply not want to take on that additional worry

If you're looking to ' reshape ' your firms financing and need that extra ' bench strength'

seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in matching financing , risk , and success to your business goals.







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 SME COMMERCIAL FINANCING 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

Commercial Finance Options Are One Step Further When You Understand Business Finance Reality

Solving The Great Canadian Business Capital Mystery


OVERVIEW – Information on commercial financing options in Canada . Business finance solutions make sense when you understand the Canadian finance landscape




Commercial financing options in Canada surely must seem like the Great Canadian capital mystery to many business owners and financial managers. Solving business finance solutions is all about understanding the ' access ' to capital and having an understanding of the commercial lending landscape in Canada when it comes to SME (Small to Medium Enterprises) working capital and asset financing. Let's dig in.

Business owners and financial managers know there are a lot of reasons why businesses fail, or why they can’t attract money. We acknowledge poor mgmt, poor execution, failed strategies, etc... but our focus is on ' FUNDING'!

While Canadian banks almost always are the ' go to ' in commercial finance it is clear to all (at least us anyway) that their concentrated power in Canadian financing occasionally works against the SME borrower!

Canadian banks do address certain needs for solid commercial financing options. If your business is established, has cash flow, profits, reasonable financials... you're in! Alternately the banks are the operating partner in the Govt SBL program - with the government guaranteeing loans up to 350k for equipment, leaseholds, computers, software, and real estate. It's a recommendation we make for many clients.

Because venture capital and private equity funds have hundreds of millions of dollars in them these days this forces transactions to be done that are on a large scale. That eliminates most of the SME sector unless you’re in an exciting technology area - but many firms are not. Therefore they waste days, weeks, months, years chasing capital that it never meant for them. Bottom line - a failed strategy.

Another key issue in Canadian business finance is ' GROWTH ‘. Many clients we meet wrestle constantly with achieving growth financing.

Our preferred solutions and recommendations include:

A/R & PO/Contract Financing
Asset Based Credit Lines
Cash flow loans
Tax Credit Finance
Sale Leaseback strategies
Equipment Finance

Here's a surprise. Many businesses that would qualify for growth / operating commercial financing options don't get approved. Why? Because they can’t provide simple basics such as clean financials, or an executive summary or business plan that outlines where the business is going. By the way, that includes a cash flow forecast.










Another key issue is focusing on the difference between debt and asset monetization. Both strategies work, but you need to understand your current balance sheet and cash flow to determine which one of those two solutions will get you to the goal line.

If you or your company is looking to acquire a company there are some solid ways to finance a merger or acquisition scenario. In general a company with assets and cash flow prospects can fairly easily be financed either thru a bank term loan and revolver, or alternatively a non bank asset based lender.

Understanding what’s really viable, and what the qualifiers are, when it comes to a commercial finance solution only makes sense. That allows you to now say ' We've solved the Great Canadian Capital Mystery '! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of helping Canadian business find the capital they require.



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 Finance And Commercial Financing 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