Is Start Up & Growth Financing Keeping You Up At Night
Start-up sources of finance in Canada easily keep the business owner/entrepreneur up at night. Let's dig in.
WHAT IS THE CHALLENGE OF EARLY STAGE FINANCING
Is anything more uniquely challenging than the financing needs of a startup? Is it even possible that early-stage financing could turn out to be, as they say, your new BFF? Nothing is truer than the fact that capital acquisition chances are less certain in an early-stage environment. A traditional bank loan from financial institutions such as banks and credit unions is a major challenge in the source of funding solutions.
HOW DO YOU BALANCE DEBT AND EQUITY OPTIONS
The key to understanding the ' capital raise' is ensuring your business has a suitable match of debt and equity. When you are up and running, the good news is that many capital sources to monetize assets and sales are fairly plentiful. They typically include debt and asset monetization vehicles that allow you to generate internal cash.
LET 7 PARK AVENUE FINANCIAL SHOW YOU THESE FINANCING SOLUTIONS
Those typically include:
PO/ Contract financing
Monetization of SR&ED tax credits - these bridge loans are a great way to cash flow refundable tax credits under the govt R&D program for those that file claims
Receivable Financing / Inventory Finance / Confidential Accounts receivable funding
Asset-based credit lines that turn receivables/inventory/hard assets into on single business line of credit
Those 4 methods are ' asset monetization' strategies - also available is debt in the form of a Government small business loan or a working capital term loan from Canada's crown corp. bank.
Many business owners, some of whom are ' newbies,’ are not 100% sure of the amount of financing they require, much less they could get approved for. Potential clients, we meet who state ' as much as we can get ' requires... well... you guessed it... a lot of work.
DO YOU NEED A BUSINESS PLAN FOR STARTUP FUNDING?
A good business plan is almost always a requirement in startups - 7 Park Avenue Financial business plans we prepare for clients meet and exceed bank and commercial lender requirements.
The proven way to calculate the amount of start-up financing you need is to prepare a proper opening balance sheet and cash flow projection. Properly complete, it will give you a strong handle on the inflows/outflows and, most importantly, the timing of the funding you will need - either in term debt for new assets or business credit line needs.
Sales typically drive cash flow needs, so being realistic in your forecast is key. An old mentor of ours once said, ' I NEVER MET A PROJECTION I DIDN'T LIKE.'
WHAT IS THE IMPORTANCE OF MANAGING WORKING CAPITAL AND ASSET TURNOVER
Can a realistic, even conservative projection fail? It can if it doesn't allow for the timing of working capital flows. Businesses in the SME sector can generate a lot of cash, more than they might think, by properly managing receivables, payables and utilizing sources of funds such as equipment leasing. It's then that the owner/manager must consider external capital. And as expensive as debt might seem too small or emerging businesses, it’s always cheaper than diluting ownership equity.
GOING THE BIG BOY ROUTE? FINANCING FOR ENTREPRENEURS
Forget the somewhat painful journey of start up business grants ,venture capital, VC firms, angel investors, venture capitalists' equity demands, and focus on real-world solutions for a new business in Canada. These financing sources are looking for high growth and traction that exists already.
FOCUS ON REAL-WORLD AVAILABLE SOLUTIONS / FUNDS FOR STARTUPS
At the seed stage, it's all bout the right amount and type of debt and your ability to monetize sales via effective cash flow solutions. Over a period of time, the entrepreneur will realize this journey is for the smallest amount of businesses. Make sure you understand the dilution of equity and ownership that comes with those types of finance sources.
CONCLUSION - FINANCING A STARTUP
If you're searching for the right amount of start-up, growth, and early-stage financing for your businesses, seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who might be the bridge to your new BFF - solid start-up sources of finance - someone who will be able to help you fund your business.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
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.
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
