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All Seasons Growth & Expansion Financing Alternatives
OVERVIEW – Information on expansion financing alternatives in Canada. Loans for growth are a key part of business finance success when your firm is looking to grow sales and profits
Expansion financing is successful when your company has access to loans and other finance alternatives on a year round... shall we say ' all seasons basis. Growing your sales revenues and profits requires business finance for the times when your company has the opportunity to expand. Let's dig in.
What type of funding and capital does your business in fact need to expand? That challenges revolves around some basic issues based on exactly what your current needs are, as well as your firm’s ability to handle and manage that new financing. Here's where some solid planning and foresight put you in a win win position - that planning we mention replaces the full time search for capital that we seem to meet many clients on - taking away from their day job - running and growing their business !
Loans and asset financing and cash flow strategies are going to typically come from a bank or, in many cases a commercial finance lender. Here's where loans and the different options that currently reside in the SME COMMERCIAL FINANCE market need to be understood by the owner/financial mgr.
So what's the trick? It's of course identifying the right loans and business finance & expansion financing solutions that make the most sense for your firm - in many cases that's also closely tied to how your industry and competitors are financed. Here it's all about knowing if you qualify for the financing you need.
The typical expansion finance needs your business needs revolve around operating expense due to salaries, etc, as well as the necessity to carry more inventory and receivables and acquired new assets.
Along the way of course there is no ' straight line ' so cash needs fluctuate in the short and intermediate term.
Canadian banks, commercial finance companies, and even the Govt (via the Guaranteed Small Business Loan - max to 1 Million) play key roles in providing those solutions.
Funding solutions for business expansion include:
A/R financing
Inventory Loans
SR&ED Bridge loans
Commercial business credit lines/ term loans
SBL loans (The Govt guarantees and underwrites the majority of your loan)
Equipment financing
Sale Leasebacks
Asset based bridge loans and asset based revolving credit lines
Royalty Finance
P O Financing
Unsecured cash flow loans
Owners and financial mgrs need to differentiate on whether they are looking for cash flow financing, working capital solutions, long term debt, and asset monetization. All of those needs are delivered by different business finance solutions.
Critical issues that must be considered in growth finance include: loan term/length, amount of funds required, collateral, personal guarantees,
For a growing company it will often be the case that a combination of finance solutions is required. That's because growing sales will necessitate financing around credit line needs, fixed asset financing, term finance.
If you're looking for that ' all seasons' finance solution seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your capital needs.
Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
ABOUT THE AUTHOR
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
