How to Use The Short Term Working Capital Business Loan For Business Capital

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How to Get Ahead in Business Financing with The Short Term Working Capital Loan

Short term business capital loans for Canadian business is all about having to make a choice in your business financing strategy. Business owners and financial managers want choices in their business . Those large Bay street type firms have all the financing it needs it seems, but what about the little guy. Enter working capital lenders !

If your business can't obtain any, or enough cash flow then the working capital loan might be the solution you are looking for . The industry is very popular now and it seemed to rise up out of the popularity of what was known as Merchant Advance type firms who often help finance retail firms, restaurants, etc.

Our clients always ask why then can't get get the same type of funding from their bank. There are several reasons , and it's not that big of a mystery.

The working capital lender is looking mainly on your sales revenues from a size perspective . Typical working capital loan rates are reasonable when you consider they are short term in nature and are not collateralized by the assets of your business. That's a big thing when you differentiate it from bank financing . Our friends at the banks seem a bit obsessed with ratios and covenants and guarantees!

Although bank financing is cheaper it is simply isn't available for all firms looking to borrow capital.

Working capital loan rates are based on short terms , ie 1 to 18 months, and typically are for up to 10 to 20% of your annual sales.

Business capital loans such as 'merchant advances' have been popular for some time now . The time to fund is very quick and is generally one of the more popular forms for alternative financing these days. In effect you are monetizing future sales , and that can be a powerful business finance strategy.

24 Hours to Improving Short Term Working Capital Loan

Funds from business capital loans allow you to take supplier discounts, purchase inventory , increase your a/r and in inventory turns. Overall its a solid return on equity strategy.

Only you as business owner or financial manager can decide if this business funding is right for your firm. But now you've got a choice you might not have been aware of.

Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success to ensure you choose the right method of financing when you're at the crossroads!





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 !





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.
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

Getting Debt Financing Right Doesn’t Have To Involve Crazy Risks: From Short Term Loans To Asset Finance Monetization

The Hunt For Debt Financing In Canada

OVERVIEW – Information on debt financing in Canada . From short term loans to revolving credit facilities Canadian entrepreneurs and business people seek finance solutions that will work for their needs



Debt financing in Canada , whether it's short term loans, asset financing, and other traditional and alternative finance forms requires some solid understanding of who's involved and what's involved. Let's dig in.

Business owners and financial managers feel a lot more comfortable taking on debt ( versus raising equity ) when they understand they have negotiating ability while at the same time recognizing that are terms and other requirements that come with debt.

As we have noted debt is the opposite of your other form of capital - that's equity of course. While no one form of financing is all perfect all the time debt finance via short term loans, etc has significant advantages. The bottom line on that is, of course, that using debt properly allows the owner /manager to grow the company with appropriate leverage.

And that's without giving up the ownership you forsake in considering equity dilution.

When looking at a debt solution one other advantage is that there is always and end in sight via repayment, cash flow assessment, etc - again our bottom line is you can plan on retiring debt a lot more easier than equity takeouts.

One solid way for the business owner/financial manager to look at debt asset finance solutions is to assess them from the point of view of restrictions - i.e. what they can and can't do by utilizing the covenants and ration requirements that come with any single form of debt - for example a senior term loan with a bank.

We're big supporters of hybrid type solutions; one good example is asset based lines of credit that may or may not contain a term loan component. While you do take on ' debt ' at the same time you have corresponding assets such as inventory, equipt. and receivables that offset the entire obligation. Some owners might even agree to a small equity component to a debt deal that makes sense for their business. In corporate terms this is known as a warrant / option, etc.

While debt financing can be secured or unsecured. Whatever the case it's always going to come down to your cash flow - historical, present, and thank god... projected! That cash flow will often be the key component in the bank or commercial finance company's decision to grant business credit. If debt is unsecured we can only say that the ownership/management better be able to prove good credit quality. Unfortunately unsecured debt typically is only being achieved by firms with great combinations of cash flow, clean balance sheets and healthy profits.

Canadian firms who can accurately demonstrate and project sales, asset quality, and turnover of current assets are always in a better position to take on any form of business debt. The lender will of course make their own assumptions on the quality of your overall business credit situation.

If we had to identify one mistake our clients often made it's that they chased the wrong financing sources for the type of debt or asset monetization they really need. Talk about a false start

in business that's both expensive and time consuming.










If you want to isolate the identify the types of debt financing via short term loans or other methods of business finance seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your finance needs.



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 = Canadian Debt Financing Solutions






CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Phone = 905 829 2653


Email = sprokop@7parkavenuefinancial.com

Stan Prokop