Stuck In Business Financing Traffic? Raising Sources of Funding For Loans In Canada

Business Finance Options For Canadian Business



Information on sources of business financing for Canadian companies . Raising capital for loans and funding monetization of assets requires solid homework by the business owners.



Sources of business financing in Canada. It's no wonder thousands of Canadian firms, pretty well every day; feel they are in an eternal traffic jam with no green light in sight. Let's examine some of the main funding options in Canadian finding for raising capital via loans and other instruments, predominantly monetization of assets.

Running out of funds is no picnic. It's of course the major reason that a company either declines or even disappears. They become another ' tombstone ' in Canadian business. Not generating profits, or cash flow over a period of time ultimately leads to business demise - again... no secret there!

So who are the saviors... in effect those sources of business financing in Canada ?They come from a wide spectrum , including by the way your suppliers, who can play a key role in your success as they extend credit to your firm on terms .

Other key sources are Canadian chartered banks, asset based lenders, (they are kind of the new kid on the block), factoring firms (aka ' receivable finance ') and equipment leasing companies.

Often many sports analogies lend themselves to business - we don't know why, they just do. So keeping those sources of business finances ' on side’ often becomes the goal of every owner and business manager. If your firm’s financial position weakens then you in effect are abandoned by the assistance you need most, often leading to a financial crisis of some sorts.

How businesses get into short term trouble is again seemingly quite obvious. Suppliers react to potential problems by holding shipments or shortening payment terms, even the ultimate short payment term - C.O.D.! Other creditors tend to pile on when word spreads, or credit reports indicate you firm is trending downward. In some cases it’s absolutely not the fault of management - the industry could be in a temporary decline.

Replacing financing is difficult in the best of times; it’s really difficult for a firm that has financial challenges

Many sources of business financing are not afraid to step up to the table if your firm is temporarily challenged - they include factoring firms, asset based lenders, or financiers of tax credits. Equipment lessors and commercial asset loan firms are equally up for generating new cash flow by engineering a sale leaseback of assets, of simply approving your firm for much needed new equipment.

Canadian business should never be afraid source new asset financing in troubled times - however they should expect that transactions will be structured, perhaps at higher rates, shorter terms, or the need for some additional external collateral.

Nirvana in Canadian business, when it comes to funding loans or raising working capital is often Canadian chartered bank financing. That's certainly the perception by many clients, as these types of facilities are quite inexpensive (even more so in today’s low rate environment) are somewhat flexible. The reality though is that most challenged, start up, or struggling businesses cannot expect to achieve that bank credit Nirvana in Canada that they dream about.

Whether your firm is new, struggling, pre-revenue, or facing a temporary financing challenge never forget that sources of capital do exist. As we have mentioned they included asset based lines of credit, tax credit financing, receivable finance, supply chain financing, and equipment leases and leaseback.

Get out of that traffic jam by speaking to a trusted, credible and experienced Canadian business financing advisor on raising funding for your firm today.







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/sources_business_financing_raising_funding_loans.html

Options And Sources Of Canadian Business Financing - Raising Business Finance

Canadian Business Finance Alternatives



Information on sources of business financing for Canadian companies . Raising finance capital can be achieved with a variety of options that are both traditional and alternative in nature.



Let's be honest. What business owner or new entrepreneur doesn't want options and sources of business financing for Canadian companies or new ventures. Raising finance for any firm is a challenge - the larger corporations seem to have it down pat, but what about the small and medium sized business owner.

Let's examine some options on how you can get capital for your business, and at the same time review some of the benefits, and risk, around some of these options.

Looking for capital revolves around your ability to determine whether you need operating capital or long term capital in the context of asset financing or permanent working capital.

Operating capital is required for the combination of start up expenses, as well as ongoing cash flow and working capital financing. These initial funds are used for product development, marketing, legal and accounting fees, as well as leasehold improvements to your facility or store.

Most Canadian businesses involved in any sort of research and development around their product are probably eligible for Canada's SR&ED, aka ' SRED' credit. It’s a non refundable cheque from federal and provincial authorities.

Your SR&ED claim is most successful when it is prepared by a qualified SRED consultant who can maximize the benefits of the program. We cringe when business owners or financial managers tell us that the program is ' just too much paperwork ' because they are clearly forsaking a true capital injection into their business. Many of those consultants will actually prepare your claim at their own time and expense risk, offering you a contingency agreement on those funds. The bottom line: check out this program.

Leasehold improvements are generally very difficult to finance if you are starting a business, and even if you are already established and generating revenue. That's why it's important to investigate Canada's Small Business Loan Program, technically referred to as the BIL/CSBF program. It finances leaseholds to a maximum of $ 350,000.00 and offers rates, terms and structures that even larger corporations would be envious of.

We're not big fans of utilizing so called ' love money ‘, i.e. funds from friends and family. We're even less enamored by clients who are actually prepared to collapse personal registered savings or mortgage their homes to start a business. While its important to have some ' skin in the game' as the expression goes its our recommendation that you incorporate your business and strongly seek out traditional and alternative financing to fund your business .

Some sources these two types of financing include supplier financing via extended terms, sale of receivables which is commonly called invoice discounting , merchant cash advances ( cash flowing future credit card sales ) equipment financing for hard assets, or even more sophisticated royalty arrangements that might be a hybrid of both debt and equity in your business.

In Canada venture capital and private equity is generally very difficult to obtain for most start up ventures - we caution clients to not dwell too long on these options unless you're committed to a long haul in effort!

We also point out that the size and credit quality of any business, start up or established still offers numerous sources of financing, either traditional or alternative. Speak to a trusted, credible and experienced Canadian business financing advisor on sources of business financing and options for raising capital for your venture.



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/sources_business_financing_raising_finance_options.html