What’s The Secret
Around The SME When It Comes To Financing?OVERVIEW – Information on the financing of small and medium enterprises in Canada . Business solutions come from various sources based on needs and qualifications
Financing for small and medium enterprises in Canada is a classic business conundrum.
Many clients we talk to believe it simply doesnt exist, in other cases it’s a case of a business life of disappointment. Let's clarify some winning, and well as some losing strategies in the ' SME ' sector in Canada when it comes to raising capital and financing assets for your business. Let's dig in.Part of the challenge of SME (small medium enterprise) financing is size. Avoiding the obvious ‘is size important’ joke we were reading a column in yesterday’s Canadian business daily. The columnist was touting the benefits of a SMALL CAP (cap = capitalization) company.
Many business owners and financial managers in Canada will be very surprised to know that a small cap stock in Canada is one that has a value of less than several hundred million dollars. Enough said... all of a sudden financing your firm seems even a greater challenge, because it would appear you're not even small cap!
Truth be told though there are thousands, perhaps hundreds of thousands of businesses in Canada in the SME sector with revenues in the 1 - 25 Million dollar range. And guess what? These businesses are growing the Canadian economy, being acquired, and merging with similar firms to get more scale.
Most stats tell us that this is really the backbone of the economy given the big guys don’t seem to be hiring a lot these days, unless you're an outsourcing consultant!
So what are the types of financing that the SME needs, and where can he or she be successful in finding it? Financing needs include term loans, revolving credit facilities, equipment financing, rental solutions, as well as on occasion some equity capital.
The major challenge of SME's in Canada is their ability to access traditional bank financing. Unlike in the U.S. it is extremely difficult for the SME business owner to access the loan products offered to larger established corporations.
The main two traditional financing products offered by banks to the SME sector are the Govt Small Busines Loan which maxes out at 350,000.00$ ( not bad don't you think?) and working capital , term and equipment loans offered by Canada's crown corporation bank.
If there is one bright light in SME Canadian business financing it's the alternatives offered by non bank commercial lenders. Although they are always priced to risk these solutions are varied and include:
Equipment financing
Bridge loans
Sale Leasebacks
Receivables financing
Non bank asset based lines of credit
SR&ED Tax Credit Financing
Franchise finance
The bottom line is that the SME owner doesnt necessarily have to have the external collateral, stellar financial statements, and impeccable personal credit histories that come with traditional financing solutions.
For SME COMMERCIAL FINANCE
solutions that make sense for your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with the SME conundrum.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 = SME Commercial Financing Expertise In Canada
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
Stan Prokop
