Growth Capital : Revolutionizing the Way Businesses Are Financed

 

Bridging the Financing Gap: Growth Financing Solutions for Canadian Businesses

 

 

BUSINESS GROWTH FINANCING

 

Financing for Growth: How Canadian Businesses Fund Expansion

 

Growth can strain cash faster than declining sales because payroll, inventory and supplier costs often rise weeks or months before customers pay. Drawing on experience structuring working capital, asset-based lending, receivable financing, equipment finance and acquisition funding, 7 Park Avenue Financial helps Canadian business owners match expansion costs with financing that reflects when the investment will generate cash.

 

What Is Financing for Growth?

Financing for growth is capital used to increase a company’s revenue, capacity or market reach. It may fund inventory, receivables, equipment, hiring, technology, facilities, acquisitions or entry into new markets.

 

 

Funding business turnaround. Whether it’s growth financing or rescuing a company from that terrible spot known as ‘dire straits,’ no business owner or manager wants to ‘crash’.

 

Growth financing can be crucial for business expansion. It helps companies overcome financial challenges and enhance their operational capabilities and market reach.

 

So imagine our surprise when we read and talked to the management of a firm that put out a great article entitled ‘WHY COMPANIES CRASH!’

 

WHY COMPANIES FAIL?

 

But wait a minute. When we read the article and discussed it with the writer, we found it focused on some great issues but not financial issues.

 

One critical reason for business failure is the lack of adequate financial resources, which are essential for seizing growth opportunities and ensuring long-term profitability.

 

Those issues included unworkable salary and compensation models, strange organizational structures, and poor or nonexistent business goals.

 

Great stuff, and we’ll leave those areas to consultants and others. However, that is not our focus. Our focus is failure due to lack of working capital, poor financing, or wrong financing. Let’s dig in!

 

 

How Do You Choose a Growth Lender?

 

Choose a growth lender by matching the financing structure to the assets and cash-flow cycle created by your expansion—not simply by selecting the lowest advertised rate.

 

Evaluate each lender based on:

 

• Financing need: Determine whether the growth requires working capital, equipment financing, receivables funding, inventory finance or a term loan.
• Available collateral: Strong receivables may support an ABL or factoring facility, while machinery purchases may be better financed through equipment leasing.
• Cash-flow timing: Repayment should align with when customers pay and the investment begins generating revenue.
• Scalable availability: Confirm that the facility can increase as receivables, inventory and sales grow.
• Advance rates and eligibility: Compare how lenders treat aged invoices, customer concentrations, inventory and foreign receivables.
• Total financing cost: Review interest, monitoring charges, setup costs, minimum fees and early-termination penalties.
• Speed and certainty: A flexible facility that closes on time may be more valuable than a cheaper loan that cannot support the growth opportunity.
• Reporting requirements: Ensure the company can handle borrowing-base certificates, financial reporting and collateral audits.
• Exit strategy: Decide whether the facility is permanent or a bridge back to conventional bank financing.

 

The right growth lender provides enough liquidity at the correct time without imposing repayments that weaken working capital. A bank may suit profitable companies with strong balance sheets, while an asset-based lender, factoring company or alternative lender may better support rapid growth, customer concentration or an uneven cash-conversion cycle.

 

 

WILL CANADIAN BANKS HELP?

 

As we can imagine, financing when it’s least available to your firm is… difficult!

 

While we might assume (or hope) that Canadian chartered banks are the best or most likely to save a firm, the hardcore reality is that these banks prefer lending to more extensive, established companies with solid cash flow and favourable debt-to-income ratios.

 

Bank loan rates and margins, along with a zero tolerance for excessive risk, quickly become disappointing when growth and turnaround finance are needed most.

 

When Canadian chartered banks feel that your firm reaches ‘CODE 10’ on their risk meters, they move your account to a special loans category and increase your borrowing costs. Not what you had hoped!

 

How Does PPSA Security Registrations  Apply to Growth-Stage Collateral?

 

Ontario’s Personal Property Security Act (PPSA) governs how lenders register and protect security interests in business assets such as accounts receivable, inventory, equipment and other personal property. A PPSA registration alerts other creditors that a lender may have a claim against those assets; it does not, by itself, prove ownership or establish the amount owed.

 

For a growth-stage company, PPSA issues become especially important when expanding assets require more than one lender. A bank may already hold a general security agreement covering all present and after-acquired property, including collateral generated by future growth. This can prevent a new receivables, inventory, equipment or purchase-order lender from obtaining the priority position it requires.

 

For example, an equipment lender may receive priority over specifically financed machinery, while the bank retains security over other business assets. An accounts receivable lender may instead require a receivables carve-out, control over customer collections and priority over the cash proceeds from those invoices.

 

The critical point is that growth does not automatically create unencumbered collateral. New receivables, inventory and equipment may fall under an existing lender’s security. Reviewing PPSA priority before approaching a growth lender can prevent closing delays, duplicated security claims and unexpected restrictions on available financing.

 

 

 

FIRMS WITH ASSETS AND GROWTH  POTENTIAL CAN BE SAVED

 

Firms with existing assets and growth and survival possibilities want to avoid bankruptcy and face losses to owners, lenders, and investors in your firm.

 

Assets often save a firm and are a great place to start. Of course, assets can be sold off and liquidated. At that time, indeed, the business owner couldn’t have any more bad luck… but wait, and then Revenue Canada shows up also. It couldn’t be worse.

 

 

CREATIVE GROWTH FINANCING STRATEGIES ARE NEEDED

 

 

That’s when creative financing strategies that use asset-based lending can save the day.

 

Innovative financing strategies often involve capital investment from venture capitalists and angel investors, who provide the necessary funds to help startups and small businesses grow. They assess and appraise the ongoing value of assets such as accounts receivable, inventory, unencumbered fixed assets, real estate (if applicable), and tax credits and patents.

 

REFINANCING STRATEGIES THAT WORK

 

Carefully crafting such a facility allows a firm to pay off existing banks or lenders, reach suitable terms with friendly CRA folks, and maintain ongoing capital to meet supplier and customer expectations.

 

Lenders often consider annual and monthly recurring revenue metrics to assess businesses' financial health and loan eligibility, especially those with subscription-based models.

 

When properly negotiated and documented, borrowing structures can be put in place without onerous ratios and covenants that often limit your ability to access growth financing and working capital.

 

BUSINESS FINANCING SOLUTIONS

 

 

Numerous single and combined finance strategies exist to fund business turnaround and growth.

 

Growth financing can provide the resources businesses need to scale operations, hire new employees, and expand into new markets to increase sales.

 

They include:

 

 

A/R Financing  -  financing the company's existing Accounts receivable via  traditional factoring or Confidential receivable finance -

Inventory Loans

Access to Canadian bank credit

Non-bank asset based lines of credit

SR&ED Tax credit financing

Equipment / fixed asset financing

Cash flow loans

Royalty finance solutions

Purchase Order Financing

Short Term Working Capital Loans/ Merchant Advance

Securitization

 

Which Type of Financing Is Best for Business Growth?

 

The best type of financing depends on what is causing the cash requirement and when the investment will produce cash.

 

 

Growth requirement	Potential financing structure	Primary repayment source
Receivables increasing	Bank operating line, ABL or receivable financing	Customer collections
Inventory build	Inventory-backed ABL or revolving credit	Inventory sales
Confirmed customer order	Purchase-order financing	Payment from the end customer
Machinery or vehicles	Equipment loan or lease	Cash flow generated by the asset
Hiring and market expansion	Working capital term loan	Future operating cash flow
Acquisition	Senior debt, ABL, vendor note and buyer equity	Combined post-closing cash flow
Technology investment	Term loan, government-supported financing or equity	Productivity gains and new revenue
Rapid scale-up with limited collateral	Cash-flow loan, subordinated debt or equity	Future enterprise cash flow

 

Case study   

 

From The 7 Park Avenue Financial Client Files

 

Company
ABC Company is a Canadian food-distribution business supplying independent retailers and regional grocery customers.

 

Challenge
ABC Company won several new customer accounts but needed to purchase inventory weeks before collecting payment. Using its existing operating line for all inventory purchases threatened to restrict routine cash flow and left little room for delivery costs and payroll.

 

How We Got There
We helped the business separate its needs into short-term working capital for receivables and inventory turnover, plus longer-term financing for delivery equipment required to handle the increased volume. We tested the funding plan against monthly cash flow, customer payment terms, seasonal demand, and lender security requirements.

 

Results
ABC Company funded inventory for new accounts while preserving more day-to-day operating capacity. The company also gained a clearer view of the working-capital requirement created by each additional customer contract.

 

KEY TAKEAWAYS

 

• Small Business Loans: Accessible financing options that meet the unique needs of small enterprises, enabling them to expand operations and seize new opportunities.

• Venture Capital Investments: High-risk, high-reward investments made by specialized firms or individuals in promising startups and early-stage companies with significant growth potential.

• Equity financing is the process of raising capital by selling a business's shares to investors. It provides businesses with the funds they need to scale while offering investors a stake in the company’s future success.

• Debt Financing involves obtaining loans or other forms of debt to finance business growth. This allows companies to leverage their assets and cash flow to access the capital they need without diluting ownership.

• SBL Loans: Government-backed loan programs administered by the Government Of Canada provide small businesses with affordable financing options to support their expansion and development.CONCLUSION

 

 

 

CONCLUSION -  FUNDING GROWTH

 

Unlock your business's growth potential with Growth Financing solutions tailored to your needs.

 

When facing the prospect of failing due to financing, call  7 PARK AVENUE FINANCIAL, a trusted, credible, and experienced Canadian business financing advisor who can assist you with your critical needs.

7 PARK AVENUE FINANCIAL ORIGINATES FINANCING FOR GROWTH

 

 

 

FAQ/FREQUENTLY ASKED QUESTIONS -   GROWTH CAPITAL

 

What Is Growth Financing?

Growth financing provides capital to expand operations, purchase equipment, hire employees, enter new markets or develop products and services.

How Does Growth Financing Differ From Traditional Business Loans?

Growth financing is structured around expansion plans and may include flexible debt, equity, mezzanine financing or asset-based facilities. Traditional loans typically rely more heavily on historical cash flow, collateral and fixed repayment requirements.

What Are the Benefits of Growth Financing?

Growth financing can provide scalable capital, flexible repayment structures and access to strategic expertise. It helps businesses pursue opportunities without exhausting operating cash.

Is Growth Financing Right for My Business?

Evaluate your growth objectives, capital requirement, cash flow, collateral and ability to repay. If equity is involved, also consider your willingness to share ownership or control.

What Should I Consider Before Pursuing Growth Financing?

Prepare realistic projections, assess whether cash flow can support expansion and create a detailed business plan. Financing costs, security requirements, reporting obligations and ownership dilution should align with long-term objectives.

Which Businesses Qualify for Growth Financing?

Established small and medium-sized businesses with proven revenue, viable expansion plans and capable management are common candidates. Some startups may qualify through equity financing, government programs or specialized lenders.

How Should I Prepare for Growth Financing?

Define how much capital is required, explain how it will generate growth and prepare financial statements, forecasts and a business plan. Lenders will also assess management experience, collateral, repayment capacity and execution risk.

What Are the Risks of Growth Financing?

Potential risks include excessive debt, restrictive covenants, increased reporting, ownership dilution and loss of decision-making control. Repayment commitments can also strain cash flow if growth develops more slowly than forecast.

How Do I Choose a Growth Financing Strategy?

Match the financing term and repayment structure to the asset or opportunity being funded. Compare total cost, availability, collateral requirements, flexibility, ownership impact and the lender’s ability to support future growth.

What Types of Growth Financing Are Available?

Options include term loans, business lines of credit, equipment financing, asset-based lending, invoice factoring, equity investment, venture capital, mezzanine financing and government-supported small business loans.

How Can Growth Financing Support Expansion?

Growth financing supplies capital for equipment, inventory, payroll, acquisitions, new locations and product development. The right structure aligns funding and repayment with the company’s growth cycle.

How Should I Compare Growth Financing Options?

Compare the capital available, interest and fees, repayment schedule, collateral, covenants, ownership requirements and funding speed. The best growth financing solution should support expansion without creating unsustainable debt or surrendering unnecessary control.

 

 

 

 

 

Statistics - Growth Capital

 

• 39% of Canadian small businesses requested external financing in 2025.ised-isde.canada

• 20% requested debt financing in 2025.ised-isde.canada

• 45% of small-business financing demand was intended for working or operating capital in 2025.ised-isde.canada

• 75% of small-business borrowers pledged collateral in 2025, up from 66% in 2024.ised-isde.canada

• The average interest rate reported on small-business debt financing decreased from 7.3% in 2024 to 5.8% in 2025.ised-isde.canada

 

 

 

Citations -  Business Loan Solutions

 

• Canadian Federation of Independent Business. "Financing Canadian Business Growth and Capital Access Trends." CFIB Research. Accessed August 25, 2026. https://www.cfib-fcei.ca

• 7 Park Avenue Financial."Business Financing & Commercial Loans : Is Growth Finance Your Rise Or Fall?".https://www.7parkavenuefinancial.com/business-financing-growth-finance-commercial-loans.html?desktop=true

• Innovation, Science and Economic Development Canada. "Key Small Business Statistics." Government of Canada. Accessed August 25, 2026. https://ised-isde.canada.ca

• Medium/Prokop/7 Park Avenue Financial."Growth Financing Options: Unlock Your Business Expansion Potential Today".https://medium.com/@stanprokop/growth-financing-options-unlock-your-business-expansion-potential-today-f4f02a35ce63

• Bank of Canada. "Senior Loan Officer Survey: Commercial Lending Conditions." Bank of Canada Reports. Accessed August 25, 2026. https://www.bankofcanada.ca

 

 

 

 

On Top of the Latest Trends In Canadian Growth Financing? Working Capital & Purchase Order Finance Alternatives

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Growth Financing: Your Secret Weapon for Business Expansion

You've arrived at the right address!  Welcome to 7 Park Avenue Financial 

        Financing & Cash flow are the biggest issues facing businesses today

               Unaware / Dissatisfied with your financing options?

Call Now! - Direct Line - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

Email - sprokop@7parkavenuefinancial.com 

 

Decoding the Growth  Capital Financing Puzzle for Business Success

 

Staying on top of any aspect of your business is important, including ensuring you understand some of your alternatives when considering growth financing and working capital solutions versus debt financing solutions. We're talking about everything from standard solutions such as working capital term loans out to the end of the spectrum, the new kid on the block: purchase order financing for your business growth and business financing needs.

 

 

INTRODUCTION 

 

Growth financing, a term often thrown around in boardrooms and investor meetings, refers to the capital sourced to fuel the expansion of an organization, either through the launch of new products, market diversification, acquisition of smaller entities, or the enhancement of production capacities. Businesses seek the financial backing when they are ready to spread their wings and soar higher.

 

WHY IS GROWTH FINANCING IMPORTANT?

 

 

The importance of growth financing can't be overstated. But scaling a business isn't a trivial matter; it requires capital - capital for research and development, marketing and sales, acquiring new equipment or personnel, and so on. That's where growth financing steps in, bridging the gap between your aspirations and substantial growth.

 

THE FINANCING CHALLENGE FOR SMALL AND MEDIUM-SIZED BUSINESSES  ( SME'S ) IN CANADA

 

When the SME sector (small and medium-sized businesses in Canada) can't meet the requirements of a Canadian chartered banking solution, then what are some of the alternatives? The last couple of years have been somewhat brutal on manufacturing companies, balance sheets have been hit, and breakeven, let alone profits, have been tough for many.

 

ASSET-BASED LENDING - A VIABLE SOLUTION FOR BUSINESS FINANCING IN CANADA

 

A solution for many firms is to utilize a Canadian asset-based lender to address numerous challenges simultaneously. Let's examine a typical situation many clients have encountered over the last couple of years. They might have secured debt via a bank revolver or term loan, coupled with challenges around CRA arrears and accounts payable, which have ballooned due to an overall working capital shortage.

 

As profiled above, the growth financing comes from an all-encompassing working capital facility to replace the banking solution in this type of case. This type of financing margins receivables to 90%, providing a healthy margining of previously unavailable inventory (anywhere from 30-70%). In rare cases, a straight cash flow loan might be added to the facility to enhance the working capital. further

 

 

THE ASSET-BASED LENDING SOLUTION - A VIABLE FUNDING SOLUTION  

 

The asset-based lending approach empowers businesses to utilize their current assets to access the funding they require. In this context, assets can span a wide spectrum, including accounts receivable, inventory, and even tangible physical assets such as machinery and equipment.

Financing business assets offers a powerful tool for businesses to unlock the necessary financial resources to initiate or maintain rapid growth.

 

HOW DOES ASSET-BASED LENDING WORK?

 

But how does this function in a practical scenario? Let's delve into the mechanics of asset-based lending to understand better.

 

In asset-based lending, the business assets serve as collateral for the loan. The process begins with the lender thoroughly evaluating the company's assets. These can include accounts receivable, which are the unpaid invoices or money owed by customers to the business; inventory, which constitutes the raw materials, work-in-progress, or finished goods; and tangible assets, such as machinery and equipment owned by the company.

 

Once the lender has determined the value of these assets, a  business line of credit or, in some cases a term loan is extended to the business, typically a percentage of the appraised value. The loan terms are generally flexible, with the credit line's size fluctuating based on the value of the collateral and the company's financial needs.

 

This method of financing is especially beneficial to businesses that have significant assets tied up but are facing cash flow issues. By leveraging their existing assets, they can unlock liquidity without resorting to equity financing or incurring substantial debt.

 

Asset-based financing, therefore, serves a dual role - it allows companies to leverage their assets while providing them with the financial fuel to navigate the growth path. This method of growth financing is an effective way for businesses to capitalize on their existing assets and convert the potential value into real, tangible growth.

 

The bottom line is that the asset-based growth financing solution solves several problems around collateral, the size of the facility, and the general health of your firm.  Most importantly, it addresses your company's ability to grow again and fund that growth simultaneously. In effect, we've achieved a hybrid-type solution that many small and medium-sized firms sorely require.

 

THE PURCHASE ORDER FINANCING SOLUTION

 

And what about that purchase order financing concept? It’s not a concept; it’s a viable solution that gains more daily traction.

 

The P.O. finance solutions bridge the gap between fulfilling your contract or purchase orders from the time you receive them to your ability to get the final payment from your end-user customer. In some cases, purchase order financing involves a foreign supplier in the U.S., Europe or Asia.

 

Your P.O. financier pays your vendors on your behalf, taking the products, inventory and receivables from that transaction as security. It is a more expensive form of financing but provides a valuable bridge to sales growth success.

 

Small businesses also can access the Canada Small Business Financing program for working capital and lines of credit, given that amendment to the  federal loan program in 2022 added increased financing capability under the program

 

BENEFITS OF GROWTH FINANCING

 

The advantages of leveraging growth financing for business expansion are manifold:

1. Capital Infusion: Growth financing endows businesses with the necessary funds to allocate towards critical sectors such as research and development, marketing, recruitment, and infrastructure enhancement. This capital injection allows businesses to magnify their operations, penetrate fresh markets, and boost their competitive edge.

2. Talent Acquisition: Growth financing aids businesses in drawing in exceptional talent. With healthy financial backing, companies can propose competitive remuneration and benefits, luring and retaining top-tier employees. This amplifies the business's overall competence and cultivates a positive workspace promoting innovation and growth.

3. Credibility and Validation: Growth financing can also bestow businesses with recognition and confirmation of their potential. By securing funding from respected investors or financial entities, companies emit a strong message to the market - that they hold promise and are a worthy investment. This can pave the way for beneficial partnerships, collaborations, and other growth prospects that might not have been accessible previously.

 

  

CONCLUSION  

 

Business expansion calls for balancing daily operations and strategic investments for long-term profitability.

 

Growth financing is instrumental in maintaining this balance and avoiding cash flow issues that could hamper crucial investments. It serves as an essential resource for businesses aiming to grow, enabling them to unlock new growth avenues, add value for stakeholders, and enhance their industry presence.

 

With careful planning and strategic foresight, businesses can successfully leverage growth financing to drive their expansion journey despite its complexity and potential challenges. 

 

The 7 Park Avenue Financial team is committed to offering tailored growth financing solutions to aid businesses in reaching their goals.

 

So, is staying on top worth it? We think so. Therefore, you will want to investigate all solutions available for growth financing in Canada thoroughly. Speak to 7 Park Avenue Financial,  a trusted, credible and experienced working capital financing advisor who can assist you in identifying solutions and financing options that make sense... for your business!

 

 

 FAQ: FREQUENTLY ASKED QUESTIONS PEOPLE ALSO ASK MORE INFORMATION  

 

 What is growth financing?

 Growth financing is a strategy that involves raising capital for a small business or medium-sized firm via various financial tools to fund the growth and expansion of a business. This might include launching new products, entering new markets, hiring more staff, or making acquisitions. Sometimes, it can fund strategic acquisitions a company may wish to make to increase sales and profits.

 

 

 Why might relying solely on equity for growth financing be a disadvantage?

 While equity financing can provide significant funds for growth, it can come at a high cost, as it often means giving up a portion of ownership in the company. This dilution of ownership can reduce control over business decisions. It can also drain necessary working capital, the necessary funds for day-to-day operations and short-term obligations. Mezzanine financing is a hybrid debt that ranks lower than senior debt in repayment if there is a default..

 

 How does asset-based financing work?

Asset-based financing is a method where a business uses its existing assets like receivables, inventory, machinery, and equipment as collateral to secure loans or lines of credit. This strategy allows companies to access capital based on the value of their assets, providing a flexible source of funds to drive or sustain rapid growth.

 

How can growth financing contribute to a competitive advantage?

Growth financing can provide a competitive advantage by enabling businesses to seize opportunities more swiftly and effectively. For example, with the right funding, a company can invest in new technology, hire skilled employees, expand its product range, or enter new markets, thereby gaining an edge over competitors.

 

What role does working capital play in growth financing?

 Working capital, which is essentially the funds available for the day-to-day running of a business, is crucial in growth financing. A well-managed working capital structure allows companies to seize growth opportunities while ensuring smooth operations. Growth financing methods like asset-based financing help to preserve and optimize working capital, thus ensuring the business is well-positioned for sustainable growth.

 

What are some Tips for preparing a strong growth financing proposal?

 

To increase the chances of securing growth financing, businesses should consider the following tips when preparing their financing proposal:

 

1. Thoroughly research potential investors or lenders**: Understand the investment criteria, preferences, and track record of potential investors or lenders. Tailor your proposal to align with their interests and showcase how your business fits their investment thesis.

2. Demonstrate a compelling value proposition**: Clearly articulate your business's unique value to the market. Highlight your competitive advantage, market opportunity, and growth potential to capture the attention of potential investors or lenders.

3. Provide a comprehensive business plan**: Develop a detailed business plan that outlines your growth strategy, financial projections, and key milestones. Show how the growth financing will achieve your expansion goals and generate returns for investors or lenders.

4. Prepare a solid financial forecast**: Present a realistic and well-supported financial forecast demonstrating your business's revenue and profitability potential. Use market research, industry benchmarks, and historical data to validate your projections.

5. Build a strong management team**: Investors and lenders often emphasize the management team. Showcase your team member's skills, experience, and track record to instill confidence in potential investors or lenders.

 

 

Click here for the business finance track record of 7 Park Avenue Financial

Funding Business Turnaround - Growth Financing Secrets And Tips For Canadian Business

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(The Other Reason) Why Companies Fail (And How To Prevent It!)

Funding business turnaround. Whether it's growth financing or rescuing a company from that terrible spot known as ' dire straits’ no business owner/manager wants to ' crash '. So imagine our surprise when we read and talked to the management of a firm that put out a great article entitled ' WHY COMPANIES CRASH!  

 

WHY COMPANIES FAIL?

 

But wait a minute, when we read the article and discussed it with the writer we found it focused on some great, but not financial issues. Those issues included salary and compensation models that didn’t work, strange organization structures, and poor or non-existent business goals. Great stuff, and we'll leave those areas to consultants and others, but that is not our focus, which is failure due to lack of working capital, no financing, poor financing, or wrong financing. Let's dig in!

 

WILL CANADIAN BANKS HELP?

 

As we can imagine financing at a time when it's least available to your firm is.... difficult!  While we might assume ( or hope ) that Canadian chartered banks are the best or most likely to save a firm the hardcore reality is that bank loan rates and margins and a non-tolerance for excessive risk quickly rise to disappoint when growth and turnaround finance is needed the most.

 

In fact when Canadian chartered banks feel that your firm reaches  ' CODE 10' on their risk meters they actually move your account to a special loans category and increase your borrowing costs. Not what you had hoped!

 

FIRMS WITH ASSETS AND GROWTH  POTENTIAL CAN BE SAVED

 

Firms that have assets and growth and survival possibilities of course want to avoid bankruptcy and face the burden of losses owners, lenders and investors in your firm.

 

Assets are what often saves a firm that is a great place to start.  While assets can of course be sold off and liquidated. At that time surely the business owner couldn't have any more bad luck... but wait, and then Revenue Canada shows up also. It couldn’t be worse.

 

CREATIVE FINANCING STRATEGIES ARE NEEDED

 

But that’s when creative financing strategies employing the concept of asset-based lending can save the day. By carefully assessing and appraising the ongoing value of assets such as accounts receivable , inventory,  unencumbered fixed assets,, real estate ( if applicable ), and tax credits and patents. 

 

REFINANCING STRATEGIES THAT WORK

 

Careful crafting of such a facility allows a firm to pay off existing banks or lenders, come to suitable terms with those friendly CRA folks, and have ongoing capital for maintaining supplier and customer expectations.

 

When properly negotiated and documented proper borrowing structures can be put in place without onerous ratios and covenants that often control your ability to address growth financing and working capital.

 

  

BUSINESS FINANCING SOLUTIONS  

 

Numerous single and combination of finance strategies exist for funding business turnaround and growth. They include:

 

A/R Financing Accounts receivable financing solutions such as factoring and confidential receivable funding

Inventory Loans

Access to Canadian bank credit

Non bank asset based lines of credit

SR&ED Tax credit financing

Equipment / fixed asset financing

Cash flow loans

Royalty finance solutions

 

Purchase Order Financing

 

Short Term Working Capital Loans/ Merchant Advance

 

Securitization

 

CONCLUSION

 

When you're faced with the prospect failing due to financing seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your critical needs.

 

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.

' 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. 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







Stan Prokop
7 Park Avenue Financial/Copyright/2020

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Let’s play the Match Game Of Asset Finance In Canada 

 

Growth financing in Canada.   As if keeping your business alive as a Canadian business owner or financial manager wasn't enough, what about all the growth financing challenges you have to face?!

 

There probably are thousands of businesses in Canada who are either content to stay roughly the same size, or, at the opposite end of the spectrum, want their business financial assets to grow, but just don't know how,  or where to turn to.  Businesses in the SME sector in Canada are sometimes quite happy to put those earned profits regularly back in the bank accounts of their owners. That’s ok, for course, just not complementary to a growth strategy.

 

As we said though, many firms wish to capitalize on asset finance solutions in Canada to add assets to their business open a new location, buy a competitor, even in some cases franchise their business model.

FINANCING IS THE LUBRICANT FOR BUSINESS GROWTH

So if it is true that financing is the key ' lubricant ' in that growth financing depends on, and if the business owners don't have the ability to fund their firm personally, what are in fact the options? In reality, there are more than you think!

 

Naturally, early-stage start-up firms in Canada though do in fact rely on initial owner equity. But sooner or later you need growth financing of financial assets for key investments in office space, software, computers, and other infrastructure and business model assets.

 

We never fail, or at least try not to fail at pointing out to business owners/managers that internal cash flow generated from asset turnover is a key to growth finance.  It's just that they are never enough!  And if you're not big enough to go public yet, or engineer a reverse takeover then financing financial assets is in fact going to be a key driver in your revenue and profit growth.

MATCHING ASSET TO THE RIGHT BUSINESS FINANCING SOLUTION IS KEY TO FINANCIAL SUCCESS

Here though we are at a key point in the juncture of your firm. Because here's where mistakes are made, we’re referring to the sometimes inability of the business owner/manager to match the right assets with the right type of financing.  So a very key point is in fact that you should be financing receivables, inventories, and tax credits with short term financing vehicles in Canada.

 

Those solutions include : 

 

Bank lines of credit

Receivable finance

Inventory finance

Asset-based non-bank lines of credit 

Purchase order/supply chain financing

 

 Longer-term assets should be financed with : 

 

Term loans

Equipment leases

Secured or unsecured cash flow loans (unsecured is best!), etc.

CONCLUSION

If you wish to match the right assets you have, or need, with the right type of financing seek out and speak to a trusted, credible and experienced Canadian business financing expert today.

 

P.S. That is of course only if you want to grow your business!

 

 

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

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.

' 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. 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







Stan Prokop
7 Park Avenue Financial/Copyright/2020