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Looking To Figure Out Startup New Business Financing In Canada?
OVERVIEW – Information on startup business finance solutions in Canada. New business financing requires expert knowledge of solutions available and how they work
New business financing in Canada requires the owner/owners to understand the risk and opportunities in startup challenges. Business finance is all about the risk in balancing starting and growing a company .Let's dig in.
A major consideration in financing a new company is the delicate balance between debt borrowed as well as ownership equity in the business. Your ability to leverage the company properly is the true goal - not missing opportunities as well as not risking default.
The bad news is there is no perfect answer relative the right combo of external financing and owner investment. Early stage companies need to realize that only certain forms of capital financing are available to the business. Safe to say that larger and more established companies have a variety of additional business finance solutions available.
What are the funding sources available for earlier stage businesses? The life cycle of a new business has different cash needs - it's all about determining the minimum amount of capital you need and what alterative structures might be available as opposed to traditional bank financing.
Let's recap typical sources of new business financing in Canada. They include:
A/R Financing/factoring
Inventory loans
Equipment finance
Short Term Working Capital loans
Non bank business lines of revolving credit
Govt Guaranteed Small Business Loans
Tax Credit Financing
As you may have figured out it's really all about determining what stage you company is in, as well as having a good handle on industry characteristics.
Naturally business owners are focused on less expensive capital, notwithstanding the fact that many forms of capital will always be more costly than traditional bank financing or equity finance alternatives. Your ability to demonstrate some good growth, profit margins and an experienced ownership/mgmt team will go a long way to reducing certain startup new business financing costs and rates.
Planning in advance never hurts, issues such as a good business plan, cash flow forecast and mgmt overview are key getting the right financing before you may necessarily need it.
Also, separating long term asset and finance needs from short term working capital and cash flow solutions will demonstrate a proper ' matching ' of sources and uses of funds. The best example of a poor financing strategy is to use short term funds to finance long term assets - example: using a line of credit to fund a capital / equipment purchase.
Proper mgmt of business and personal collateral is key to also managing future financings. Quite often a combination of different funding and capital financings are the best solution for a new business. Proper use of guarantees and asset lines is key in the early stages of a company.
If you're focused on the best type of financing for a new or early stage business 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 start up and growth 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
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
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
