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Back To Basics In Debt Refinancing
Business refinancing
.. its a fact of business that commercial loans must be reexamined to ensure new or better financing is in the best interests of your current business position. And its a hard fact of reality that certain circumstances for a company to refinance business loans.
Changes will always occur in your business and owners and financial mgrs must evaluate the cash flow and debt position of the company.
So what some of those reasons that loans are refinanced, or new financing structure is brought into the company? In some cases certain gains in the value or assets of the business allow owners to take out equity, or in some cases totally ' cash out '. Current management might be focusing on a management buyout or some form of succession planning might be taking place.
Interest rates play a key factor in business refinancing - in a perfect world rates might have declined and allow your business to refinance under better terms. In other circumstances loans are refinanced to either reflect a more positive cash flow - or more often than not new credit lines are required to reflect the growing need for working capital due to higher sales , larger contracts, etc.
In many cases merger and acquisition opportunities arise . Here loans are combined, and new financing structures might be introduced to reflect positive financial statements for the combined business.
Currently there is a large popularity around short term working capital loans , allowing companies to generate immediate cash needs without taking on the burden of significant long term debt. Lease financing is often restructured to reflect the useful life of assets, which can either depreciate or appreciate based on the nature of the asset.
On occasion the actual business owners may wish to address personal guarantees that are in place around current debt guaranteed by the business owner.
If there is a bottom line on a company's ability to refinance business loans it's simply that each industry and company has different financing needs, and those needs change over time. That covers the gamut from financing distress to high growth.
A detailed analysis of your company's overall financing arrangements will often point to the need to refinance . Those all important loan covenants or guarantees need to be reviewed to ensure proper business refinancing action can be taken . We can therefore say that refinancing in some cases can be viewed as an opportunity, so speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
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 area 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 .
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
