Business Loans Canada : Finance Via Alternative Financing & Traditional Funding

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Financing A Business In Canada

Business loans and finance for a business just may have gotten good again? The pursuit of credit and funding of cash flow solutions for your business often seems like an eternal challenge, even in the best of times, let alone any industry or economic crisis. Let's dig in.



Since the 2008 financial crisis there's been a lot of change in finance options from lenders for corporate loans. Canadian business owners and financial managers have excess from everything from peer-to-peer company loans, varied alternative finance solutions, as well of course as the traditional financing offered by Canadian chartered banks.

Those online business loans referenced above are popular and arose out of the merchant cash advance programs in the United States. Loans are based on a percentage of your annual sales, typically in the 15-20% range. The loans are certainly expensive but are viewed as easy to obtain by many small businesses, including retailers who sell on a cash or credit card basis.



Depending on your firm's circumstances and your ability to truly understand the different choices available to firms searching for SME COMMERCIAL FINANCE options. Those small to medium-sized companies ( the definition of ' small business ' certainly varies as to what is small - often defined as businesses with less than 500 employees ! )

Business Loans Alternative Financing In Canada

How then do we create our road map for external financing techniques and solutions? A simpler way to look at it is to categorize these different financing options under:



Debt / Loans



Asset Based Financing



Alternative Hybrid type solutions



Many top experts maintain that the alternative financing solutions currently available to your firm, in fact are on par with Canadian chartered bank financing when it comes to a full spectrum of funding. The alternative lender is typically a private commercial finance company with a niche in one of the various asset finance areas



If there is one significant trend that's ' sticking ‘it’s Asset Based Finance. The ability of firms to obtain funding via assets such as accounts receivable, inventory and fixed assets with no major emphasis on balance sheet structure and profits and cash flow ( those three elements drive bank financing approval in no small measure ) is the key to success in ABL ( Asset Based Lending ).



Factoring, aka ' Receivable Finance ' is the other huge driver in trade finance in Canada. In some cases, it's the only way for firms to be able to sell and finance clients in other geographies/countries.



The rise of ' online finance ' also can't be diminished. Whether it's accessing ' crowdfunding' or sourcing working capital term loans, the technological pace continues at what seems a feverish pace. One only has to read a business daily such as the Globe & Mail or Financial Post to understand the challenge of small businesses accessing business capital.



Business owners/financial mgrs often find their company at a ' turning point ' in their history - that time when financing is needed or opportunities and risks can't be taken. While putting or getting new equity in the business is often impossible, the reality is that the majority of businesses with SME commercial finance needs aren't, shall we say, ' suited' to this type of funding and capital raising. Business loan interest rates vary with non-traditional financing but offer more flexibility and ease of access to capital.

Business Loan Program Canada

We're also the first to remind clients that they should not forget govt solutions in business capital. Two of the best programs are the GovernmentSmall Business Loan Canada (maximum availability = $ 1,000,000.00) as well as the SR&ED program which allows business owners to recapture R&D capital costs. Sred credits can also be financed once they are filed.



Those latter two finance alternatives are often very well suited to business start up loans. We should not forget that asset finance, often called ' ABL ' by those Bay Street guys, can even be used as a loan to buy a business.



If you're looking to get the right balance of liquidity and risk coupled with the flexibility to grow your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist you with your funding needs.




7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
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 more than 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.
Before 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

Golden Rules For Financing A Business In Canada . Working Capital and Debt Solutions .. That Make Sense !

Debt and Cash Flow Solutions And Tips For Canadian Business

Information on financing a business in Canada . What working capital and debt solutions make sense for your firm, and why .




Financing a business in Canada. A challenge? Let's just say that's an understatement when it comes to working capital, debt, and ongoing management and recognition of finance problems and opportunities.

Are there some ' Golden Rules' we could follow. We think so.

One of the golden rules of business finance is to ensure that you properly match short term debt and long term debt appropriately. Each of these two has its own benefits and potential disadvantages. Is one better than the other? Not really, it’s just that it’s a case of making adjustments and staying ' in tune ' with what needs are appropriate or required at the right time.

It certainly hasn’t escaped us that not only is it difficult when it comes to financing a business in Canada to manage internally, you of course have to stay in tune with what’s happening in the economy, your industry, and dare we say, politics! Talk about a full time job.

A lot of your financing will probably come from external financial solutions. They might include bank debt, working capital term loans, receivable finance, inventory finance, equipment leasing, and monetization of tax credits. However, you also generate cash internally, and you need to know how to measure that.

When you assess working capital or debt needs you need to be in a position to focus on cost, risk, and what that financing does to your balance sheet? All of those must be taken into consideration.

Also consider your current capital and debt structure and how your balance sheet will look after financing is completed. As an example, something to think about is that working capital and cash flow can be generated through monetization of assets - this doesnt really bring debt to the balance sheet, so you've achieved your goal without increasing debt.

On occasion it’s important to discuss any taxation impact on your financials with your accountant, as there are both positive and negative aspects to debt and tax.

If your firm is mature and operating efficiently you’re in a position to access all sorts of traditional financing. The other side of that is alternative finance, which works just as well but might be more costly on occasion - not always, but sometimes.

It's hard enough to access financing but choosing the right partner is a struggle in itself sometimes, ensuring that the funding source will be with you in tight markets and good times. Apparently those two fluctuate over time. The 2008 worldwide debacle caused many finance firms to disappear or implode, causing havoc among thousands of businesses in Canada, whether you were a start up or large corporation!

One solid GOLDEN RULE of business finance is to be proactive when it comes to access debt solutions and working capital. You might even have to make the tough decision around diluting equity when there it too much debt on your balance sheet. That’s a costly one.

A great GOLDEN RULE is to have a solid sense or understanding of how outside forces can affect your company's financial viability. If market conditions are continually volatile you clearly need to focus on longer term stable financial solutions.

Constantly stay on top of your cash flow planning , and if you want to understand what solutions are available for financing a business in Canada speak to a trusted, credible and experienced Canadian business financing advisor ,

7 PARK AVENUE FINANCIAL IS AN EXPERT IN CANADIAN BUSINESS FINANCING





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 . 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 :

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

Financing A Business In Canada ? What Finance Company Or Solution Works Best?

Change Your Company’s Destiny With Solid Financing Strategies & Solutions


Information on financing a business in Canada. What solutions are available via a bank or finance company to solve the needs of Canadian firms in search of capital.



Financing a business in Canada. One of our favorite writers recently reviewed a U.S. report focusing on the ability of a company to finance its business in the U.S. . . . The report was portrayed as a current ' pulse ' of the market, including input from business owners and entrepreneurs.

That got us to thinking ... hey... this is Canada. Would that current ' pulse ' of the market be similar? Let's take a look and hopefully provide some insights into Canadian business financing.

A recurring theme in the U.S. report was actually the concept of ' vanishing finances. The average business owner, certainly in the SME (small to medium enterprise) market, like its U.S. counterpart in many ways still isn’t fully recovered from the 2008- 2009 world debacle. Canada, like the U.S. saw sources of financing change considerably. Unbelievably, even many rational sources of financing simply ... disappeared.

So how did U.S. business owners address the disappearance of funding sources for their business, and in Canada what changed also? Here's where it gets a big ugly ... as the majority of respondents indicated that they had to inject additional personal equity in their business, and even resort to business and personal credit cards to fund their firm.

We still meet many busines owners who rely to some degree, sometimes significant, on credit cards to finance their business. This sometimes is a hugely double edged sword, as they do get some additional capital, but it’s sometimes at the expense of their good personal credit rating. Bottom line, if you can, it’s important to separate your business and personal life when it comes to finances.

Business lines of credit are the life blood of most firms, whether you're a small, medium or large when it comes to revenues. In the U.S. on 30% of businesses in the SME sector reported they had access or could qualify for a line of credit from a bank or finance company. One alternative that was stated as solution was the use of home equity lines of credit for busines finance. Again, it works, but not a preferred strategy!

When times are tough who can we look to from help? ' I'M FROM THE GOVERNMENT AND I AM HERE TO HELP ' As skeptical as we are of that statement the reality is that thousands of firms in Canada, ( and probably hundreds of thousands in the U.S. ) utilize the government loan program , In Canada we call it the ' SBL ' , in the U.S. its the SBA .

In Canada the cap for revenues on your firm vis a vis its ability to access the SBL is 5 Million dollars. That covers a lot of ground in Canada, and you can borrow up to 350,000$ for much needed financing for equipment, leasehold improvements, computers, software, etc. We encourage every SME business to check out the program.

So, is the situation all that bleak? We suppose it’s the glass half empty/half full saying... we'll let you decide. But you clearly can empower your company by checking out great solutions when it comes to financing a business in Canada. They include bank credit lines, receivables finance, equipment leasing, asset based lending, tax credit monetization, securitization of receivables, and cash flow working capital loans .

Whether from a bank or commercial finance company you just might find that behind those doors are some solid solutions you perhaps didn’t even know existed.

Speak to a trusted, credible and experienced Canadian business financing advisor on sources of finance for your firm.






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 . 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 :

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