Business Financing Loan Options In Canada. Corporate Credit Is Not The Secret World You Think

Feeling Handcuffed When It Comes To Commercial Finance Options?


OVERVIEW – Information on business financing loan options in Canada . Different corporate credit needs require different solutions . Here’s why … and who and where!





Business financing loan options in Canada... it's no secret that thousands of Canadian business owners and financial managers feel somewhat ' handcuffed' when it comes to their sense of limited corporate credit options.

It's almost as if they feel they can't penetrate the secret world of business financing that many of their competitors seems to have succeeded in. Why is that the case and what can be done about it when it comes to financing your firm? Let's dig in.

We don't think there is anything more frustrating in business than not being able to take advantage, in an opportunistically positive way of business growth opportunities.

The truth is that there is a whole world of options outside Canadian commercial chartered banks. These financing options are provided by independent commercial finance companies, insurance companies, pension funds, etc. In most, but not all options the finance options tend to be more expensive than the bank, but at the same time they provide you with the growth capital you are looking for. We’ll let you weigh the advantages of business survival against a higher cost of borrowing!

One unique and often unheard method of financing 4 key business assets at the same time is the ABL. Thats the term for ASSET BASED NON BANK LINE OF CREDIT. Using this facility as an example of an alternative financing option your firm is able to borrow, under one line of credit, against inventory, receivables, unencumbered fixed assets, and even company real estate if that asset category finds it way into your mix of operating assets.

While many Canadian businesses find themselves informally looking for business finance alternatives in some cases many companies have been asked to exit their banking relationship. Simply speaking their loans have been called and they have been segregated into the banks book of ' SPECIAL LOANS '. We'll of course hold off on the humor around that term!

If your firm is in fact in jeopardy at the bank and has any chance of survival the asset based credit line can almost more often than not take out the bank and provide you with even more ( yes, even more) borrowing power than you had before .

Other solutions to refinancing the bank include BRIDGE LOANS and SALE LEASEBACK of assets, all of which, in effect, refinance the business.

The often fasted way to gain a positive refinancing is to utilize the talents of a Canadian business financing advisor who is experienced in the area. That can be done with the assistance of your accountant or lawyer, or simply searching ' CANADIAN BUSINESS FINANCING ADVISOR ' via the internet, etc. Working with the right party allows you to save you valuable time and brings credibility to meetings and discussions with the plethora of non bank asset lenders in Canada who really do want your business.

Just feeling comfortable about the different options and pricing of those alternatives gives the Canadian business owner peace of mind. Bottom line, those ' handcuffs' can now come off!



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 = BUSINESS FINANCING LOAN OPTIONS







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 Finance Options Canada – Start Up & Commercial Loan Corporate Credit Facilities

It's not as bad as you think. No really, we're serious. We're talking about business finance options in Canada - all the way thru from start up to corporate credit commercial loan facilities.

It's not uncommon for clients to know what or how much they need for their Canadian business financing needs. What their challenge usually concerns knows what their financing choices are, what the various benefits are, and most importantly, how to go about securing that financing. Let’s review!

When you think about it we are talking essentially about sources of funds - and that comes from either borrowing facilities of personal or corporate equity. We're not going to focus too much today on personal resources - typically those are collateral home mortgages, credit cards, and the proverbial friends and family. We'll let you address those yourselves - instead let’s focus on corporate borrowing, whether you are a start up or an established business.

So what are the key essentials in corporate credit facilities? They are supplier credit (most business owners don’t unfortunately consider that as a source of financing, but it is, working capital financing, and loans form banks and the government. (The Canadian SBL loan program goes to 350k and we firmly believe its one of the best facilities available to small and medium sizes business in Canada).

When you think about it no one financing solution will rarely cover off everything you need. In reality it’s a combination of borrowing structures that will allow you achieve all the working or long term corporate credit and capital you need. For example, the majority of equipment in Canada is finance via equipment leasing and financing - which in the 2011 environment enjoys a very robust popularity.

However, lease equipment financing is long term capital, matched against the useful life of the asset - in many cases you are instead looking for operating capital, the ever required ' cash flow ' that is the life blood of your company . That capital is sourced via a bank operating line of credit, a working capital facility via a non bank lender, or a major asset based lending facility that comprises receivables, inventory and fixed assets.

One of the most popular and growing methods of financing today is termed ' factoring ‘. Other names it goes by are receivable finance, invoice discounting, and our favorite C I D, which stands for confidential invoice discounting. This type of financing gives you all the working capital and cash flow you need, hence its popularity, but is more expensive than traditional corporate credit facilities via a bank. It's a very misunderstood form of finance; essentially it’s the sale of your receivables as you generate revenue.

Our afore mentioned C I D facility is a factoring or invoice discounting facility that doesn’t force you to tell your customers that you are financing your firm thru this type of arrangement .

In summary, the type of capital and the amount of business finance you require depends on which stage or cycle your business is in , either start up or advanced and mature .

You can best understand the type of financing you need by ensuring you have a solid handle of your operating expenses and capital costs requirements. Cash flow projections and a list of potential other collateral are always helpful... allowing you to feel confident that you can appro0ach external financing successful.

Consider speaking to a trusted, credible and experienced Canadian business financing advisor on funding you need today and for the future.




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 .Info re: Canadian business financing & contact details :

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