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Growth Financing Options In Canada
Growth financing options in Canada are ' top of mind ' for most business owners and financial managers , especially in the small to medium sized segment in Canada ( ' SME COMMERCIAL FINANCING ' ). So what type of funding is available and how does business folks address the timing needs of those challenges.
For a business to grow, let alone survive in Canada typically comes back to three key elements - the ability to generate a profit, throw off cash, and have access to working capital . The inability to over time address all those issues will always come back to business survival . We only need to read the Globe & Mail or the Financial Post to document those companies that eventually disappear based on their inability to address those business financing challenges. There is somewhat of an irony that many firms are in the stages of good growth when their finance options disappear.
So when it comes to growth financing there are some key basics, and one of them is your firms ability to manage inventories and receivables and the use ,and acquisition of fixed assets as you are growing.
In the case of inventory management its all about having the inventory and supplies and assets on hand to service clients, who at the same time are often demanding credit terms.
Not all business owners and their financial managers truly comprehend the fact that as your business grow you are often more eligible for growth finance options. The reality is that your firm pays its obligations, your customer pays your firm so there is some business funding, but generally not enough!
Payables and the management thereof is a key way to manage cash flow, so working with key suppliers on your own extended terms is a great source of cash . The key to that is of course maintaining proper relationships with key suppliers, who might infer you are willing to pay or verging toward slow pay status. The reality is that whether you firm is doing great or experiencing challenges some measure of external 3rd party funding is required by your business.
If your firm is experiencing more severe financing challenges the ability to accelerate cash flow internally is key, so sales and inventory and account receivable relationships must be monitored very carefully.
Most of Canadian business associates Cdn chartered banks as the prime delivery source for business funding. However many companies cannot access some or all of the bank credit they need.
Alternatives To Bank Financing In Canada
What firms can deliver alternatives to bank financing and what solutions are available to new business capital and cash flow?
Those alternative business financing solutions include:
Accounts Receivable Financing
Asset Based Lending - Non bank business credit lines
Sale leaseback / bridge loan strategies
Tax Credit Monetization
Unsecured cash flow loans
Short Term Working Capital Loans
It is safe to say that these solutions are available from a variety of non bank commercial finance firms. True success comes when you determine what you need and when you need it, and from whom!
Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business financing success, who can assist you in determine solutions to growth finance.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
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.
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
