Business Capital Solutions In Canada : Accessing Proper Cash Flow & Commercial Financing

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Cash Flow Solutions - What Are The Types Of Capital For Your Business

Business capital requirements in Canada often boil down to some fundamental truths the business owner/financial mgr/entrepreneur needs to address when it comes to financing for businesses.

One of those truths? Knowing the true state of their financial condition and what financing they do and don't qualify for when it comes to meeting commercial lending requirements in Canadian business.

Business Loans In Canada

Whether you are smaller or start-up firm looking for information on how to get a business loan or a larger established firm looking for growth financing or acquisition opportunities we're highlighting 3 mistakes that commercial loan seekers like your company need to avoid making when addressing, sourcing and negotiating your cash flow / working capital and commercial financing needs.



1. Understand the true condition of your company finances - These are almost always successful addressed when you spend time on your financials and understand how your financial statements reflect your access to commercial loans & business credit in general



2. Ensure you have a plan in place for sales growth and financial needs as it relates to commercial financing



3. Understand that actual hard facts about cash flow which is, of course, the lifeblood of your company



Can you honestly answer or feel optimistic about all those 3 points. If so, pass Go and collect $ 100.00!



An excellent way to address your company's finance plans is to ensure you understand growth finance solutions, as well as how to manage in a downturn - i.e. not growing, losing money, etc ; It's never fun to fund yourself in an economic or industry downturn such as the COVID pandemic of 2020!



When we talk to clients of new or established businesses it seems they are almost always talking about sales, so the ability to understand and focus on the differences in their profits and cash fluctuations is critical.



How do cash flow and sales plans and projections affect the type of financing you require? For one thing sales growth usually starts out by consuming your cash, not generating it. A poor finance plan will drag your business down, and addressing financing simply gets tougher and tougher.



Three basics always emerge when it comes to your search for the right business capital and financing.



1. The amount of financing you need



2. The type of financing (debt/cash flow/asset monetization) The business loan interest rate will be dramatically affected by whether you choose traditional or alternative financing solutions. Private business loans in Canada come from non regulated commercial finance companies most often known as ' alternative lenders '. These lenders are typically highly specialized in one ' niche ' of business financing and may be Canadian firms or branches of U.S. banks and non-bank lenders



3. How the financing is structured to be manageable with your day to day operations

What Finance Company In Canada Can Meet Your Borrowing Needs & Why Is Capital Important In Business 

Let's identify and break down key financings your firm should know about and understand if they are applicable and achievable to your business. They include:



A/R Financing / Factoring / Confidential Receivable Finance



Inventory finance / floor planning / retail inventory



Working Capital term loans



Unsecured cash flow loans



Merchant working capital loans/advances - these loans are geared toward short term cash needs and are typically one year in duration. Loan amounts are typically 15-20% of your annual sales revenues.



Royalty finance



Asset based non bank business lines of credit



Tax credit financing (SR&ED bridge loans)



Equipment Leasing / Sale leasebacks - Equipment financing in Canada is used by almost 80% of all companies looking to acquire new, and used assets.



Govt Guaranteed Small Business Loan program - Government Loans in Canada are sometimes referred to as ' SBL', aka Note: BDC Finance solutions are available from this Canadian non-bricks and morter crown corporation. A small business loan via the government-guaranteed loan program comes with true flexibility around term loan duration, market rates, no pre payment penalties, and of course the low personal guarantee that is required by borrowers. These two ' government ' loan solutions are often perfect for financing a new business.



If you're focused on not making mistakes in your business finance needs and want to capitalize on the solutions your competitors are probably already using seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and commercial financing 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.
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

The New Shape of Business Financing and Commercial Lending Options in Canada

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Current Commercial Lending Options

Business financing and commercial lending needs often can come in a time of industry or economic turmoil. In the language of the people this simply means ' tougher times! If there is any good news it is that a number of new and alternative financing solutions are offered through alternative lenders.

Turmoil in economic times presents all sorts of challenges for Canadian business owners and financial managers. As challenging as business financing has become so called ' tougher times' a new group of financing services and players in Canadian business financing offer new and different types of financing for business needs.

These options are available for every business, from retailer to industrial and of course technology. Additionally your firm can be established, start up, or pre-revenue.

One way to consider the types of financing available on the landscape is to think of either ' traditional ' finance or the new kid on the block - ' Alternative '.


The alternative financing players in the marketplace are often unregulated, simply meaning they are not bound to government restrictions as to types of lending, risk levels, etc.

A good way to thing of business financing in Canada is simply by thinking of the offering as either from a regulated player, or a non-regulated player. Banks are a good example of regulated players, while firms such as equipment finance companies or asset based lenders tend to be unregulated.

Years ago may types of financing easily available today -

Examples :

Purchase Order Financing


Tax Credit Financing


Royalty Financing

... that might have been unimaginable in older times are now viewed as new and extraordinarily relevant to Canadian business financing needs.

The bottom line is that commercial lending and financing is no longer of course just offered by Canadian chartered banks. In Canada for example it is some major insurance companies and pension funds are the ones funding the Canadian equipment financing industry.

Alternative financing for firms is all about niches - the good news for commercial borrowers in Canada is that competition has become fierce and it’s quite often a challenge for the companies seeking Canadian business financing to differentiate from who is offering what. By the way that is where an experienced Canadian business financing advisor with a track record of business finance success can be an invaluable part of your financing search.

Alternative Financing vs. Business Banking Via Chartered Banks

We're the first ones to forgive new clients who think that the only ' go to ' for appropriate business financing solutions are Canadian charter banks. Numerous other lenders have taken up the slack, and are often complementary to client banking scenarios.

Captive finance companies also provide a significant amount of financing in Canada. They play a significant role in many transactions that otherwise might not be able to meet more stringent bank criteria.

Alternative finance solutions can include "

Inventory Financing

Purchase Order/ Supply Chain Finance

Asset Based Business Credit Lines

Equipment Leasing/ Sale Leasebacks


When Canadian business owners and their financial mgrs have a strong knowledge of both the finance offering and the competition for that offering that leads to :

Best rates

Flexible Terms and Structures

By the way, for all the competition that Canadian banks have, and given they are viewed as the strongest and best run in pretty well the whole world , they haven’t necessarily stood around watching their business financing and commercial lending decline . They have expanded into the U.S., purchased independent commercial lease financing and auto financing firms, and rebranded these firms into their own offering.

Many smaller companies in Canada, those ranging under 5 Million dollars in revenue utilize independent commercial receivable financing firms, known as ' factors' to finance their working capital needs. The need for this and other types of creative financing is huge because of the general strict credit criteria of the Canadian chartered banking system.

At 7 Park Avenue Financial our recommended ' Receivable Finance ' solution is Confidential Receivable Financing , allowing your firm to automate your sales into constant cash flow, with your firm doing your own billing and collecting .

Non bank financing firms have different levels of pricing, and those rates are commensurate with the risk level , transaction size, and type of financing provided. Alternative finance companies have proved themselves to be very successful and strong competitors of the Canadian banks.

Canadian non bank finance firms have a number of finance offerings that allow premium pricing, and servicing the SME (small to medium enterprise) sector provides strong growth opportunities .

So how does the ever changing Canadian business financing landscape affect you, the potential borrower? The bottom line is that a variety of finance offerings allow you to maintain an open door to get the maximum amount of financing your firm needs. Smaller firms have the ability to use lease asset financing, receivable financing, tax credit financing, purchase order financing from a variety of competitors.

Take hands-on approach to your finance needs, by speaking to a business finance specialist who can help you manage the relationships you need to have in place to access business financing options that make sense for your firm.



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

Looking For Working Capital And Business Capital In Canada ? Commercial Lending Isn’t What You Think

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Cash Flow Financing Decisions , and Alternatives!

Information on working capital financing in Canada . What type of commercial lending will deliver on business capital you need for growth and cash flow survival

Having a closed mind on achieving working capital and business capital financing via commercial lending just might not be the best thing .

Let's focus in on working capital financing and talk specifically about the type of cash flow solution that might best suit your business - which you haven’t even considered!

No one is disagreeing with you that Canadian business financing solutions aren’t difficult to achieve, yet alone envision. By itself working capital and cash flow financing is more unsecured from a finance firm or lenders position. So exactly how do you go about financing your business and determining what, in today’s challenging environment ( post 2008-2009 ) are the best solutions for business capital?

When you think about it, its really all about your cash cycle, how funds flow through your business and historically how your business has operated with this ' cash cycle ' in mind . Every business, or rather industry, seems to have a little bit of its own nuances.

And if you are a service focused business then the receivables you generated pose an even more of a required focus as we need to determine how you will use working capital financing to finance business operations. That is not to say that service type businesses cant be financed, it just becomes a question of securing financing that meets your specific needs - as the financial folks would say , you business is not capital or asset intensive - yet you still require cash flow financing - as your sales grow your receivables and operational needs grow also.

So let’s get to the nub of our discussion, what are the solutions available for working capital in the current Canadian commercial lending environment?

If you are more of a service business ( i.e. not capital intensive - example = mfg ) and can demonstrate on going recurring sales and receivables you are a prime candidate for a receivable financing facility . Our favorite and in fact recommending is a confidential invoice discounting/financing facility. This type of commercial lending facility is generally available through what we call non banks - i.e. private independent finance companies. It allows you to generate cash flow and working capital as you generate sales, and you can then focus on meeting your obligations of staffing and operations prior to collecting from clients. You also do this on a confidential basis, i.e. there is no notification to your client basis, as is the case with more traditional receivable financing.

Firms that are more asset intensive need to consider ABL facilities ( asset based lending ) that provide a combo of inventory, a/r and equipment financing that is margined ( on a daily basis !) to give you all the cash flow and business capital you need . Canadian businesses know only too well that lengthy collection periods can become the death of their business.

Also in many cases the amount of receivable financing you need simply isn’t always available from Canadian chartered banks - we meet many clients who have some commercial lending from banks, but it never seems to be enough when you are in growth mode or experiencing some sort of other business challenge. This then forces the Canadian business owner and financial manager to assess options that you don’t necessarily have to consider, i.e. getting in additional equity and diluting your ownership.

In summary , yes we agree its complicated - term loans, asset based loans, invoice discounting facilities, unsecured cash flow financing ... a lot of considerations . And which one is truly best for your firm. As we've said it might not be as complicated as you think .Speak to a trusted credible and experienced Canadian business financing advisor to understand the best solution and the cost and ramifications of commercial lending that makes sense for your firm.

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

<a href=" http://www.7parkavenuefinancial.com "> Click here for 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 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

Commercial Lending In Canada : Pristoractional Business Finance Solutions

Solving The Mystery Of Business Financing Without The World’s Greatest Minds

OVERVIEW – Information on commercial lending options in Canada . Business finance solutions require a specific focus on need and repayment of asset monetization



Business finance , we maintain, doesn't have to be a mystery to the thousands of businesses in Canada that are constantly searching for commercial lending solutions that meets their requirements. And as for the word ' PRISTORACTIONAL ' - we made it up - it doesn’t exist, but the word ' SOLUTIONS ' does, and they can be found without any help from the worlds greatest minds! Let’s dig in.

Taking on debt or ' monetizing ' existing assets must always have repayment taken into consideration - from the bank or commercial lenders perspective that's the focus.

Business owners/managers need to be able to demonstrate clear repayment - that demonstration comes from assets being monetized - (inventory / receivables), past historical cash flow, or current ongoing profit generation. Repayment of asset monetization financing (lines of credit, etc) must be demonstrated through asset turnover. We're constantly amazed at how many owners/managers don’t understand how asset turnover plays into overall return on equity.

More amazement? Business plans that focus mostly on sales and ' hockey stick' type projections without realistic assumptions on cash flow, collection turnover, etc.

If your business does in fact have profits you are significantly more eligible for financing such as term loans. Start up or early stage revenue firms who can demonstrate reasonable cash flow and profit projections are advised to check out the federal Govt Guaranteed Small Business Loan program. By the way it can be used to purchase an existing business also.

If your business has 1. historical, 2. present and 3. future (realistic) projected cash flows you are eligible for ' UNSECURED ' loans based solely on those cash flows, but we caution clients that holy trinity above must be proven.

Your ability to articulate your businesses ' OPERATING CYCLE ' allows you to access significant capital when it comes to financing current assets. Those financing options include:

Bank operating lines

Asset based non bank lines of credit

Receivable Financing

A/R financing

Refundable Tax Credit Financing (Most commonly the SR&ED program

PO Finance

Revenue based loans

Many businesses require the purchasing of assets that will allow that to either operate more efficiently or stay competitive. Here solutions abound in Equipment financing and leasing solutions. Any asset or technology from 2k to the millions can be financed based on asset equality and proof of repayment ability.

Aside from bank financing these financing facilities are very much based on your actual sales and ability to collect and turnover assets.

So whets the bottom line? Simply that with the right assistance and focus you can leverage your balance sheet, access cash flow through existing assets, or utilize current and future sales potential to monetize your business properly . Consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in... solving the mystery!




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 FINANCE 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

Stalking Business Financing Options In Canada : Commercial Lending Options For Canadian Firms

CSI Business Financing .

Solving The Great Canadian Capital Mystery

OVERVIEW – Information on business financing solutions when it comes to commercial lending needs in Canada . What game plan must be in place to ensure optimal access to business finance





Business financing in Canada must often seem like a ' CSI ' like capital mystery to the Canadian business owner and financial manager. If he or she is on the right track they can almost be looked upon as ' stalkers ' when it comes to searching for the (right) business capital to financing their growing businesses. And it sure feels sometimes that the whole financing process feels like a ‘ crime scene ‘ of sorts . Let's dig in!

Planning business finance strategies allows your firm to stay ahead of the game. And your ability to put the right strategy in place will always allow you to bargain with strength when it comes to financing your company.

One question business owner/mgr's face is the issue of getting financing with their own internal resources and expertise, or to seek the in put of an external financial advisor. That role can be filled by your accountant, lawyer, of a business financing advisor with a track record of success and one with whom you are comfortable with.

A suitable amount of planning has to be in place- simple understanding where your firm’s balance sheet is at today, and where it needs to be when it comes to planned growth.

One part of the whole planning process that can more easily be defined is your need to plan for equipment asset needs. Here the cost of these assets, their useful life, and the cash flow implications can all be addressed by EQUIPMENT FINANCE / LEASE solutions. Whether it’s a 5k copier, or a million dollar production asset for the shop floor it's all about achieving the right lease finance solution.

While a formal business plan and cash flow forecast isn’t needed when it comes to ' stalking' those financing options we can say that it sure helps. A proper plan or cash flow will allow you to clearly understand what funding you will need, and when.

There are probably about 15 quickly identifiable sources of financing for your firm. They are boil down to 3 simple categories - debt, equity, or asset monetization. Looking for a ' shopping list' for these financings?

Here they are:

Receivable Finance
Inventory financing
Sale leasebacks
Equipment leases
PO / Contract financing
Asset based bridge loans
Commercial bank lines of credit
Royalty finance arrangements
Working capital term loans
Government SBL loans
Subordinated debt/cash flow/mezzanine type financing
Private equity


And the $ 64,000.00 question?

Which one... or ones are right for your firm. That comes down fundamentally to two issues - your capital structure and your overall credit worthiness. If there is any good news in Canadian business financing its that your firm can be a start up, high growth, mature and doing well, or in bankruptcy or receivership proceedings - the bottom line ? .. There's still a financing option for your firm.

A good way to prepare for that ' stalking' process we've talked about is to simple understand what stage of business life your own firm is in - as per above, and ensure you focus in on the financing alternatives that are REALISTICALLY available for your business. It’s simple addressing the cash issue in the context of where your company is in its life cycle.

Is there a perfect financing strategy available for your firm? Sorry Virginia, but the truth is that some work better than others, and some cost less... or more than others. If you want to address what commercial lending options are available for your firm consider seeking and speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you meeting the capital solutions that make sense for your firm, right here and right now.




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 & Commercial Lending 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

Commercial Lending In Canada . How To Address Secured Loan Covenants

The Yay And The Nay Of Securing Or Breaking Loan Covenants In Canada

OVERVIEW – Information on secured loan and commercial lending covenants in Canada . They both protect and destroy your business if not properly understood





Commercial lending in Canada, when it comes to a secured loan typically always involves ' COVENANTS '. What are they and how do you address the pitfalls and dangers of this method that lenders use to protect themselves (and you by the way) from business default and failure. Let's dig in.

When it comes to the agreements you make with any secured lender in Canada it basically comes down to the ' yay' and ' nay'. What we are talking about is known as ' affirmative' and ' negative’ scenarios. Affirmative actions are those you can take or do, sometimes with permission required. Negative ones are those which you are unable to take in the normal course of running your business.

What are the typical scenarios that the Canadian business owner or manager takes that might affect your loan agreement? They might include:

Raising more equity capital

Selling certain assets of the business

Taking on debt (that’s a big one with lenders!)

Draining cash flow in some manner


Remember always that the proactive thing to do is to discuss actions you wish to take that affect the lending agreement. When they are common sense business actions they will almost always be allowed by an (reasonable) lender. A good example might be taking on more debt by acquiring new production equip or technology that makes your business more profitable.

The thing about loan covenants that is often missed by the borrower are that while the loan covenants generate a lot of discussion and negotiation ( yes they can be negotiated!) at the start of loans they must in fact be maintained during the duration of the secured loan / commercial lending arrangement.

So what happens when you are those covenants is breached? The harsh reality is that you are in default of your commercial loan and typically all monies are due.

We point out to clients that many types of loans in Canada have no or very few loan covenants. Examples typically include asset based lines of credit, receivable financing, equipment finance, tax credit monetization. If there are any covenants in those type of arrangements it's typically because your overall balance sheet and income statement dictate that.

Remember also that all arrangements defined in your loan agreements are not necessarily negative. For example if you can negotiate pre payment arrangements in your favor that’s a good thing. Also, certain actions you take might make sense for you and the lender to pay down loans - for example new equity or sale leaseback scenarios with another lender.

The huge issue around commercial lending agreements with lenders in Canada is ' RATIOS '. Lenders have a lot of guys in the back room

constantly running liquidity, leverage and Operating ratios on your business. You can proactively manage these ratios in a positive manner by understanding what they are and calculating them yourself - Trust us it's not that hard .

When it comes to commercial lending and secured loans that make sense to you (and the bank or commercial lender) seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your secured loan 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 Commercial Lending And Secured Loan 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

Commercial Lending In Canada. Discomfort With Bank Financing. The Asset Lender Is Your Alternative

Non Bank Financing Is Not Near Mythical ! Here’s Why


OVERVIEW – Information on commercial lending alternatives in Canada. What role does the asset lender play in Canadian business financing






Commercial lending by banks in Canada is not the only way in which Canadian business finances itself. When we talk to clients about non bank solutions there sometimes exists a certain level of ' discomfort'.

Where it comes from we don't know, as thousands of firms in Canada are financing by non bank methods. That’s the role of what we call the ' Asset lender ' - who comes in all shapes and sizes! Let's dig in.

Generally speaking asset based lending is simply a broad term for non bank commercial finance firms that provide a variety of business lending solutions to the Canadian business owner/manager. These companies have carved out their own ' niche' when it comes to specialty lending in areas of equipment, current assets, tax credits, etc.

Why then are commercial asset lenders successful in Canada, and growing in size and scope of solution? The reality is that they aren't regulated like the Canadian banking system requires of our banks. So like your teenagers they (try to) do what they want! And pretty well all of them do that well.


Commercial lending solutions for the asset lender come in a variety of solutions - they include term loans, leases, and asset monetization for working capital and cash flow. The loans are almost always focused on... you guessed it... assets! Asset based financing often has less of a regard for the overall credit quality of your company or its past or current situation - however don't think that because your company is in a death spiral you will still qualify . The patient must show signs of life!

Certain types of asset finance focus on particular industries. Non bank asset based lines of credit offer revolving credit facilities for al most every type of company in Canada that can offer up some for of collateral in inventory, receivables, fixed assets, tax credits, etc.

Many solutions offered by the ' ABL' (ASSET BASED LENDING) lender can be of a ' hybrid ' nature- financing different assets of your firm in a similar manner, all under the same credit facility.

Many Canadian business owners and financial managers in Canada seek asset finance solutions because they are an alternative to equity financing. In certain larger transactions an asset or mezzanine lender might in fact though ask for a small equity ownership or option in your firm - but this is generally very rare. The appeal of asset lenders is that as your business and assets grow so does your financing capability with your chosen lender.

We mentioned previously here that if your firm is in a death spiral your hopes should not be high for asset financing success. But if you are in legitimate turnaround mode you are absolutely a candidate for this financing which otherwise could not be achieved through a bank.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in structuring an asset lender solutions that meets your needs when it come to commercial lending in Canada.




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 = Asset Financing Solutions





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