Financing Business Growth In Canada : Loans & Capital Strategies

The Fine Line In Growth Financing For Your Business

Information how owners/financial managers can obtain the right loans and capital for their business. Financing business growth properly determines your growth success

Financing business growth challenges in Canada requires the right type of loans and capital strategies. Does your firm have what it takes? And talk about the fine line of knowing how much debt to take on, how fast your company can grow ( before imploding ) and whether in fact other strategies that don't require debt can work for your business. Let's dig in.

Running out of funds in your business will often lead to difference levels of financial distress. Again, that's our ' fine line again, growing, surviving, or failing - the ultimate business tightrope.

Smaller businesses, including most the SME COMMERCIAL firms in Canada are private and have to forget about raising capital and stock publicly. It's great for large well known and successful companies, and close to impossible for the rest.

While it's definitely possible to run your business on negative cash flow for a period of time that strategy ultimately ends when you're at the point of being unable to meet operating expenses and loan/creditor commitments.

5 basic sources of capital exist for your business - some of them internal. They include:

Suppliers/landlords

Canadian chartered banks

Asset based lenders

Equipment finance firms

Commercial finance companies providing receivable financing/inventory loans - Their services include factoring, confidential receivable financing, tax credit financing, sale leasebacks, etc

Thinking/Dreaming of growing your business? Cancel that strategy if the patient (your company!) exhibits the following symptoms:

Slow payments/Delayed payments to your suppliers
Negative business credit report items
Poor operating ratios - dso/inventory turns, etc
Negative industry issues

The challenge of growing your business when it comes to proper financing is hard enough in good times when you're making money; your industry is thriving, etc. That challenge can often border on the seemingly impossible if your overall financial picture isn’t positive

Your overall balance sheet health will often drive what type of financing you need. It is in fact relatively easy to obtain growth financing if your firm has assets and realistic growth possibilities. That's because asset based loans totally focus on the collateral in your receivables, inventory and equipment.

Asset based loans and lines of credit typically ' replenish automatically as your business grows and turns over its assets.

Looking to walk that ' fine line' tightrope in growing your business...properly? Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in financing business growth.


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 - 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


Direct Line = 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com


' 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.
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

Financing Business Growth In Canada Celebrate Funding Awareness Day Every Day Of The Year

Financing ( GROW OP ) Business Growth And Operations !



OVERVIEW – Information for financing business growth in Canada . Funding Your Company requires appropriate debt and asset monetization knowledge



Financing business growth in Canada. Are you the type of business owner/manager that feels that you're not really celebrating ' Funding Awareness ' Day that often? Here's some information and solutions around that key subject. We suppose you say that we're sharing info on financing a Grow OP... Which of course means Growth and Operations. What did you think we were talking about?! Let's dig in.

Cash and Profits are two key goals for all business, whether you're a start up or a major corporation... But how do you get a sense of what amount and type of funding you need? That question covers our growth situation we're talking about, but is equally applicable for companies are experiencing some sort of level of financial distress or challenge.

But as far as growth is concerned, unless you're in a cash business that has not cost of goods it's a certainty that as your revenues grow you must bulk up, unfortunately, on the current assets part of your balance sheet - A/R, inventories. And don’t forget those fixed assets that either run your business or allow you to maintain competitiveness.

It's an interesting point that is sometimes forgotten that the one good thing about growth financing is that as your sales grow you get automatically more finance from vendors/suppliers

When you're sourcing finance options remember that fixed assets aren't growing. One solid strategy is to consider a sale leaseback of owned assets to enhance business growth cash flow. And here's a new one for most clients we talk to - fixed assets (that are owned) can be used for revolving credit purposes if you are willing to consider a non bank Asset based line of credit.

So what does the business owner do when ‘traditional’ bank financing is either exhausted, or simply not available? Businesses that don't require new assets, i.e. they have extra capacity already are in a better position than firms which require new assets. That’s where lease financing is a solid solution. You minimize capital outlay while obtaining and using assets that will generate future revenues and profits.

Firms that are start up, generally newer, or in the overall category of the SME (Small to Medium Enterprise) always seem to have more challenges. That's when some solid assistance in knowing how you can access non traditional capital when external funding sources are ' bleak ' is key. Some of those include:

Receivable Finance
Working Capital Lines Of Credit
Monetizing tax credits owing your firm (SR&ED, etc)

These strategies maintain your debt to equity ratio constant and help you manage growth.

We hesitate to say that the alternative to growth is to simply stop growing. Here your wont need extra capital but certainly limits profits and competitiveness. Seek out a trusted, credible and experienced Canadian business financing advisor who can assist you in celebrating Funding Awareness Day! for your Grow Op - the growth operation you call your company.



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 Growth Financing
















Stan Prokop