Commercial Bank Business Loans: Evaluating The Need For Your Type Of Bank Credit Facility In Canada

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CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

The need for a bank credit facility in Canada in Canada arises primarily because business, unfortunately, never goes in a straight line. Commercial business loans and revolving credit facilities satisfy that challenge, but which type (What there are choices?  - Yes, there are! )  of working capital facility works for your firm? When it comes to banks with business loans .. Let's dig in!

 

CASH FLOW IS NEVER A STRAIGHT LINE!

 

As we said, a business doesn't go in a straight line for a couple of reasons - seasonality in some industries, bulges of cash flow needs, and the need to finance current asset accounts such as A/R and inventory.

 

THERE ARE DIFFERENT TYPES OF CREDIT FACILITIES FOR BUSINESS LOAN REQUIREMENTS

 

The business credit line is typically an asset monetization, but it can also be a term loan, cash flow loan, mezzanine facility, etc.

 

WHAT STAGE IS YOUR COMPANY IN?

 

Whether your firm is coming out of start-up mode or in full-fledged growth mode, there is always a need for financing - buying inventory, honouring your fixed payment obligations, and satisfying growth challenges.

 

WHAT ARE THE REQUIREMENTS FOR A BANK CREDIT LINE / BUSINESS BANK LOANS  IN CANADA

 

For a bank credit facility in Canada, several key requirements must fall into place. Key among these is the ability to demonstrate your business is ' cash-flow positive. ‘ Canadian banks take this one step further; they look at historical cash flow, present needs, and future needs. The true beauty of the approved credit line is your company's ability to borrow and repay that line constantly - hence the term ' revolving.'

 

WHY MUST BUSINESSES MATCH FUNDS WITH FUNDING NEEDS PROPERLY?

 

Huge mistakes are sometimes made when business owners use short term credit facilities, i.e. working capital borrowing, to address the need for long term financing - typically equipment, fixed assets, leaseholds, real estate. The bottom line is that that is simply a mistake and can lease to disastrous consequences.

 

  

PROS AND CONS OF BANK CREDIT  

 

No secret that our Canadian banks prefer larger transactions - they come with covenants and tough approval criteria, but the benefits - liquidity, low costs, growth facilitation, and removing the need for more equity are, benefits rarely equalled with other types of financing, many of which are more costly. In the current low interest rate environment business borrowing costs less than ever. Long-term interest rates for term loans and commercial real estate loans and mortgages of course continue to be at all-time lows.

  

BUSINESS LOAN INTEREST RATES CANADA  

 

Real estate needs can also be covered with a variety of commercial mortgage or bridge loan solutions. Variable rate and fixed rate term loan solutions are always available in commercial banking. Business bank terms and conditions require a certain level of due diligence in ensuring you are matching financing needs with the right business credit solution.

 

Online banking covers off many business borrowing needs these days.

 

  

THE CHALLENGE OF THE STARTUP / EARLY STAGE FIRM IN ACCESSING BUSINESS CREDIT  

 

Smaller businesses and startups face a more extensive challenge. Requirements for the business, and owners, include good personal credit histories, no CRA issues, the ability to demonstrate business and personal assets, and quite often a business plan or cash flow forecast.

  

WHY SEPARATE YOUR PERSONAL CREDIT FROM BUSINESS CREDIT NEEDS?  

 

As we explain it to our clients it's often the rising to the challenge of separating your business life from your personal financial life. When things go awry damage can easily be done to the owner's personal credit scores, making it difficult to borrow both from your business or your personal needs - i.e. mortgages, etc.

 

IS THERE AN ALTERNATIVE TO A BANK CREDIT LINE? THE SMALL BUSINESS CHALLENGE

 

Did you know there’s a strong alternative to the bank credit facility? It's the non-bank Asset-based line of credit. Offered by private commercial finance firms, a facility monetizes accounts receivable, inventory, and equipment into one working capital borrowing facility. Depending on the borrower's size and overall profile, it can be equal in pricing to banks, but more often than not is more expensive.

 

  

5 OTHER BUSINESS CREDIT SOLUTIONS   

 

Remember also that various subsets of asset-based lending provide the same type of cash flow solutions for business - they include:

 

A/R Financing (We recommend CONFIDENTIAL RECEIVABLE FINANCE)

Inventory financing

SR&ED Tax credit monetization

Purchase Order Financing

Working Capital cash flow loans

 

 

CONCLUSION - HOW TO GET A LOAN FOR A SMALL BUSINESS

 

If you need assistance to protect your business and asses growth options in evaluating the type and need for a bank credit facility and if you are looking to remove the mystery and enigma in Canadian business financing seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with loans for small business and commercial business loans that are tailored to your needs.

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 !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas 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.

' 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial







Stan Prokop
7 Park Avenue Financial/Copyright/2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank Credit Facility Commercial Business Loans | 7 Park Avenue Financial

 

Do You Need A Business Plan ? Custom Business Plans At Reasonable Pricing !

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CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

 

 

PROFESSIONAL BUSINESS PLAN WRITING SERVICES AT A REASONABLE COST AND PROMPT CUSTOMER SERVICE

A business plan expert service here at 7 Park Avenue Financial allows you to take your vision and mission and link it to the aim of your business goal. Think of our business plan to utilize the resources available to secure your business future, which in many cases is simply access to Canadian business financing with the help of business plan writers that know what they are doing! 

 

Your final business plan will demonstrate the value that you intend to create. It will demonstrate what initiatives you will take to achieve your objectives, as well as demonstrating the benefits from capital costs and your expenses. A poorly written plan will fail to attract the business funding or investment your company or project requires.

 

ENTREPRENEURSHIP 101!

 

You are looking for a painless way to achieve your business strategy goals and illustrate any appropriate ' what if ' issues that arise in any business around developing market strategies tied to funding needs. Those contingency plans demonstrate your ability to pivot from any events that do not transpire as planned - in essence; it's Murphy's law -..' what can go wrong will..'!

 

We will develop business plans in collaboration with you and ensure that we properly identify the right stakeholders in your business - ie, owners/lenders/suppliers. Your final document will be prepared from the bottom up.

 

 

We're business plan experts at 7 Park Avenue Financial, and we will work closely with you in a defined period of time, ensuring that we properly demonstrate your management skills relative to your target market. If there is a bottom line about utilizing the business plan to secure financing it's our ability to demonstrate to a lender, investor, or buyer that you have paid attention to all the key details of your business.

 

Our executive summary will provide a clear indication of the plan's purpose and identify any business needs around financing or investments to be made. That usually comes about by identifying any challenges the company might face and your attack strategy to fix!

 

Your key objective will be clearly identified and we will demonstrate your ' unique value proposition in a manner that will be key to generating financing and investing. In many cases, your business plan might also demonstrate your business's ability to solve any anticipated problems.

 

 

THE FINANCIAL PORTION OF YOUR BUSINESS PLAN:

 

To say that the financial section of your plan is important is an understatement. Sales / Revenues will be thoroughly tested and the cost structure of your company will line up properly with the sales and financing structure. We will demonstrate that any requests for financing will demonstrate that the company can achieve its objectives, showing the company as ' fully funded'. That, by the way, is the most desirable type of document, as it demonstrates that your company has the financing to achieve its objectives.

For many companies, the current plan is perhaps part of a milestone of several goals of the business - we will demonstrate acceptable progress along the way with respect to your business financial objectives.  That allows your company to go back to lenders or investors and again solicit financing for more future objectives.

 

Our plans will also allow you to deliver information on the appropriate amount of due diligence.

 

In many cases accessing the business capital you need requires a document that is expertly written. The ability for us to deliver a cost-effective plan to your firm allows you to focus on your capital needs.  Understanding the criteria of banks and commercial lenders is what sets us apart from the herd!  Your ability to deliver a cost-effective and lender acceptable plan puts your business just one more step ahead of the competition.  The majority of plans we prepare required some information and cooperation from our clients and we're willing to meet or talk to you anytime, anywhere in order to serve your needs.

 

By the way, 7 Park Avenue Financial is widely recognized as a business financing expert along with our business plans! That means that the banks and commercial lenders we deal with have confidence in our data and market research  - they further understand we are keenly aware of their key requirements for business financing approval - with the right amount of quality emphasis on finance areas such as opening balance sheets, pro format cash flow projections.  Our goal is simple: add maximum credibility to the bank or commercial or alternative lender to maximize access to business capital with carefully crafted repayment. That's job 1 in our business plan writing for your company or project.

 

VALUATION: In many cases, 7 Park Avenue Financial business plans will include if required, valuation date regarding the business based on your industry metrics from both public and private sources of information.  Many of the work we perform for many plans is regarded by many as both an art and a science!  Financial projections, management overviews and your commercial products or services make raising financing much more easier than you thought.

In many cases, our plans are part of an acquisition or management buyout where revenues and expenses must be normalized and forecasted properly.

 

FREQUENTLY ASKED QUESTIONS - F.A.Q.

 

HOW MUCH DOES IT COST TO HAVE YOUR BUSINESS PLAN WRITTEN?/ BUSINESS PLANS CANADA

 

In its role as a business plan consultant, our typical cost for a professionally written plan is between $750.00 - $2000.00 depending on plan complexity, internal and external research requirements. Therefore, lower-end plans for small businesses are very cost-effective - 7 Park Avenue Financial business plans meet and exceed the requirements of banks and commercial lenders.

 

WHAT ARE THE DIFFERENT TYPES OF BUSINESS PLANS THAT 7 PARK AVENUE FINANCIAL PREPARES   

 

Generally speaking, there are a number of types of plans that are required by our clients - that includes:

 

Short plans/ executive summaries

Plans that are part of detailed pitch decks and CIM's ( Customer Information Memorandums)

Financing plans

Each type of plan has a different  amount of work, research and labour attached to it

 

 

 

WHAT ARE THE 5 KEY ELEMENTS OF MOST PLANS?  

 

Generally, each business plan will  have a strong executive summary

A detailed description of the business and how it is structured

Market research on the industry and competitors will be included,

Information on management and key personnel.

Financing Plan/cash flow projections

 

   

WHAT IS A STARTUP BUSINESS PLAN - ARE THEY DIFFERENT FROM OTHER PLANS?  

 

 

Start ups / new business have a unique financing challenge but almost all of the key aspects of small business startup financing are addressed in a similar manner - objective of the business, target markets, competitions analysis, financing and cash flow tables. After 16 years in business and funding over 400 businesses, no one knows more than us that startup funding for small businesses is a challenge for the entrepreneur seeking funding!

 

 

 CONCLUSION 

 

Seek out and speak to a trusted, credible, and experienced Canadian business financing advisor and business plan originator. Our goal is to deliver complete plans that will allow your company to deliver on its marketing objections and help obtain the financing you need to grow your products and services.

 

 

Click here for the business finance track record of 7 Park Avenue Financial / The Consultant Business Plan Expert / Small Business Business Plan / Business Plans For Small Business / Immigration Business Plans/ Expert Business Plans

 

Canadian banks have routinely recommend their clients to us for proper plans for financing purposes. We have numerous success stories for clients who have obtained financing, sold businesses, bought businesses, or merged with another firm. Timing is everything to the 7 Park Avenue FInancial client and typical turnaround times are 7-10 days maximum - that's the type of timing a good business plan writer should deliver on!

Our management team has worked with firms in every industry in Canada, spanning 40+ years of solid business experience - with the ability to access specialized research as well as developing their own unique model of financials, cash flows, etc. - You're working with a business plan writer with experience in delivering pro business plans the market demands.

Timing is everything in business, so utilize our credibility and experience to create a plan customized and tailored to your needs. Creating small business plan solutions on-demand based on your specific needs and writing a business plan to meet your needs is our goal. Let us tie that marketing plan to a professional business plan, written by business planning experts,  as your step toward success.

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 !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas 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.

' 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial






Stan Prokop
7 Park Avenue Financial/Copyright/2021

SR&ED Claims Financing In Canada | Film Tax Credits

SR ED Claims Financing Film Tax Credit Incentives |7 Park Avenue Financial

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Just How Good Is SR&ED Program Claims Financing And Bridge Loans For Movie Tax Credits?

SR&ED Claims financing and the finance of film tax incentives in Canada eliminate the ' victim' part of these two solid government programs.  The        ' victim' part arises when a lot of work and effort and by Canadian business people leads them to ' waiting ' for their claims to be finalized and funded. Let's dig in.

 

CANADA'S 2 MOST POPULAR REFUNDABLE TAX CREDITS FOR FINANCING CONSIDERATION

 

Let's examine some key benefits in financing tax credits under 2 of the most popular programs in Canada -

 

SR&ED (Scientific Research and Experimental Development)

 

Film/Digital/Television Tax Incentives

 

  

CANADA'S SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT PROGRAM - AKA  ' SR&ED"!  

 

Similar to programs in the U.S. the Canadian government funds research via R&D  sr ed tax credits. Here's one case where the ' little guy' often benefits more than larger and sometimes publicly traded companies in Canada. Private ( i.e. not publicly traded ) firms receive billions of dollars of funding in Canada for recovering a large percentage of the monies they spend on salaries, contractor cost and overhead as these relate directly to research.

 

WHY WAIT FOR CASH REFUND UNDER THE SRED PROGRAM - FINANCE YOUR CLAIM

 

While the thousands of firms that receive funding might find their claims a little smaller these days (example: equipment purchases related to R&D no longer qualify) the ' cashback ' benefit of the combined federal/provincial program can't be denied.

  

PREPARING YOUR CLAIM WITH YOUR SR&ED CONSULTANT  

 

Prior to considering SR ED claims financing a tremendous amount of work, and some risk goes into claim preparation for the Canada Revenue Agency. From software firms to mfg companies all across Canada third parties known as ' SRED Consultants ' prepare and file claims. The majority of claims prepared seem to be on a contingency basis, with the SR&ED consultants bearing the risk in time and costs in your claim preparation. In return for that, they typically take a fee of 15-30% of the total claim. Naturally, business owners also have the choice of simply paying for a qualified SR&ED practitioner on a straight fee for service basis.

 

While the government has clearly made things easier for claimants, i.e.

 

  

IT'S EASIER TO FINANCE YOUR SR ED CLAIM  THESE DAYS!  

 

Self-assessment tools to help guarantee approval success

 

Simplified and shortened online application

 

none of that takes the ' waiting' out of your cash refund.

 

FILM TAX CREDITS/ DIGITAL MEDIA TAX CREDITS : KEY ELEMENTS OF FINANCING YOUR PROJECTS

 

Media credits in movies, TV and animation, also under the auspices of federal and provincial programs, take a lot of the risk out of the task of financing projects. Traditional bank type financing is difficult to achieve for smaller independent producers. The complex web of financing a project involves a lot of moving parts:

 

Pre-selling your project

 

Consideration co-producers to complete funding

 

Owner Equity

 

Product placement/sponsors

 

'GAP' financing (a ' bridge' between production and future sales potential)

 

UTILIZE A GOOD FILM TAX CREDIT ACCOUNTANT

 

Have we forgotten anything?  We sure have! It’s the generous film tax credit incentives that monetize a large part of the costs of production of any project. In many cases of 40-50% of a qualified budget can become a tax credit refund to owners. Claims are best prepared by experienced film tax credit accountants - specialized folks who maximize claims.

 

While some might argue there is little in common between producing an animated film versus striving for improvements in software, biotech, mfg, or robotics the one constant is the finance ability of either of these two programs.

 

  

 HOW TO CASH FLOW YOUR REFUNDABLE SR&ED PROGRAM  AND FILM TAX CREDIT CLAIM  

 

While owners can choose to wait for months, perhaps up to a year for recouping funds under either program they also have the option to ' cash flow' their tax credits. 

 

Tax credit loans for SRED R&D TAX CREDIT CANADA  and Media credits are financed very similarly. Bridge loans will advance typically 70% of the combined value of the federal and provincial claim. No payments are made during the loan period. When the government approves and funds your credit you receive the balance of the claim, less financing costs that are typically priced at ' mezzanine ' type rates.

  

CONCLUSION  

 

If you feel you can benefit from the immediate financing of film tax credit incentives and SR ED projects seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in claim finance under the tax incentive program.

 

P.S. Yes, it's true;   claims can also be financed prior to formal submission to government of Canada bodies.

 

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 !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas 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.

' 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial







Stan Prokop
7 Park Avenue Financial/Copyright/2021

Business Cash Flow Solutions: The Other Side Of Cash Flow Financing And Working Capital Problem

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Business Cash Flow Problem Working Capital | 7 Park Avenue Financial

How To Recover From Cash Flow Shortage Shock

Your business cash flow problem seeks a solution. The age-old situation of a working capital/cash flow shortage often is a ' shock ' situation to many Canadian business owners and financial managers.

 

CASH MANAGEMENT AND ASSET TURNOVER HELP CREATE PROFITS

 

Every business goal pretty well revolves around creating profits.  As that process works itself through your business you should be constantly trying to both manage cash and improve asset turnover.

 

The business owner's ability to manage, and finance working capital allows it to generate equity, pay taxes and employees, keep supplier short term relations positive, etc.

 

Calculations around working capital cash flow typically revolve around the relationship of current assets and current liabilities on your balance sheet.

 

WHAT IS THE OPERATING CYCLE

 

A great way to look at your business is to constantly be focusing on what we call the ' operating cycle '. It's essentially the ' journey ' that a dollar takes as it travels through your business.

 

Two drivers in understanding your cash and working capital are your:

 

1. Revenue recognition

 

2. Accounts payable management

 

Business owners should also check out their cash flow statement which is a key part of business financial statements allowing you to see cash from a ' where got /where gone ' perspective.

 

DON'T FORGET PAYABLES MANAGEMENT

 

While not often directly understood, most business owners /managers understand that managing payables is a key part of the cash cycle. You increase your cash from operations by delaying payables to the extent that you can, given you don’t want to damage supplier relations. Delaying payables, your major ' current liabilities ' asset is working capital management to the extent you can given vendor payment terms, etc.

 

FINANCING YOUR INVESTMENT IN  A/R AND INVENTORY

 

If your business isn’t a retail or online business you have an investment in accounts receivable. Numerous financing solutions exist to allow you to better access real cash, as opposed to the A/R and inventory build-up on your balance sheet that is not liquid.

 

Those solutions include:

 

A/R Financing

Inventory Loans

Access to Canadian bank credit

Non bank asset based lines of credit

SR&ED Tax credit financing

Equipment / fixed asset financing

Cash flow loans

Royalty finance solutions

 

Purchase Order Financing

 

Short Term Working Capital Loans/ Merchant Advance

 

Securitization

 

WHAT THOSE TEMPORARY CASH FLOW CRUNCHES!

 

If our businesses were a straight line with totally repeating ongoing transactions a lot of cash flow shortage shock would go away. Unfortunately, that is rarely the case, so seasonal and bulge situations often occur, often along the lines of the ' cash flow shock' we talk about.

 

The owner /manager's ability to forecast seasonality and bulges in business will always alleviate working capital shock .

 

WHAT TYPE OF BORROWING FACILITY DO YOU NEED?

 

At the end of the day, the most common solution to the business cash flow problem is the ability to ensure you have a borrowing facility in place that allows your company to address future cash flow uncertainty.

 

If your firm has profits, historical cash flow and acceptable financials chartered banks and business credit unions are the solutions for the long term.

 

FINANCING THE BALANCE SHEET

 

As long as you have business assets (receivables, inventories, equipment, orders/contracts) numerous non-bank solutions exist to allow you to feel that you have cash flow availability. Funding current assets is a key part of addressing a cash flow crunch.

 

CONCLUSION

 

If you're looking to avoid small business cash flow problems shock and ensure you have access to financing solutions that address the right stage your company is in ( start-up, mature, high growth, turnaround, etc ) to grow products and services, so seek out and speak to a trusted, credible and experienced Canadian  Business Financing Advisor who can assist you with your financing needs. It's all about the amount of cash you need to satisfy enough cash for funding your company.

 

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 !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas 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.

' 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial







Stan Prokop
7 Park Avenue Financial/Copyright/2020

Canadian Business Loans: On Your To Do List For Accessing Financing Options

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Feeling Lost Out On Loan And Finance Options In Canada?

Canadian business loans and financing options are often very near the top of the business owner/financial manager’s ' to do '  list when it comes to running and growing the business.  It can be also said that it’s often common for the owner/manager in the SME sector to feel  ' lost ' when it comes to achieving those financial goals and accessing the right business loan. Has to be the case? Not really... let's dig in.

 

WHAT IS THE SME BUSINESS SECTOR?

 

By now pretty well everyone seems to recognize that the SME (small to medium enterprise) sector in Canada is one of the constant powerhouses of the economy. Everyone seems to have a different definition of what this sector is; some maintain its, for example, companies with under several hundred employees and sales of 20 Million as an example. That's not that SME to us! but less focus on the solutions available to finance those firms.

 

SMALLER BUSINESSES HAVE A LARGER FINANCING CHALLENGE

 

The one thing everyone does seem to agree on though is that 'size counts' in business financing and the small to medium guy has a lot more of a challenge in accessing. More often than not it feels like an obstacle course, as the owner /manager finds it very difficult to obtain long term financing options that will help secure business growth.

 

 

THE CHALLENGES OF BANKS TO FINANCE SMALL BUSINESS

On occasion, it might help to put yourself in the shoes of the bank or the many commercial lenders that offer financing solutions for working capital business needs  to Canadian companies.  Lenders focus on key items such as tangible equity, assets, and in many instances outside collateral.

 

CANADIAN BANK SOLUTIONS FOR THE SME

 

Canadian chartered banks in Canada are often the 'point person' when business financing discussions come up around the needs of small businesses. While often criticized for providing the financing business needs they do participate positively in a number of ways, including the best interest rate.

 

Banks typically provide:

 

Govt Guaranteed Business Loans - The Canada Small Business Financing Program

Term loans

Small overdrafts

Mortgages

 

 

They are successful because they are on every corner, have very clear rules and borrowing applications, and can be a source of constant contact with the owner/manager.

 

ALTERNATIVE FINANCE TO THE RESCUE?

 

While bank solutions are low cost and accessible it's in fact commercial finance firms that provide a lot of the other financing options that will get small businesses to the goal line. Commercial finance firms generally aren't regulated, take more risk, and are profit-motivated. Additionally, they provide small business loan options simply not available from the banks. It is often important to have a good business plan and cash flow projections - 7 Park Avenue Financial prepares business plans that meet and exceed bank and commercial lender requirements.

 

LIST OF ALTERNATIVE FINANCING OPTIONS IN CANADA

Those options:

 

A/R Financing

Inventory Loans

Access to Canadian bank credit

Non bank asset based lines of credit

SR&ED Tax credit financing

Equipment / fixed asset financing

Cash flow loans

Royalty finance solutions

 

Purchase Order Financing

 

Short Term Working Capital Loans/ Merchant Cash Advance/Business Credit Cards - Good  personal credit score required - these facilities have higher interest rates but are very easily accessible

Securitization

 

CONCLUSION

 

Whether it's bank financing or non-bank commercial finance options the SME business owner doesn't have to feel lost when it comes to financing options for a small business loan that suits their needs at acceptable interest rates. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your operational and growth goals when it comes to loans in Canada that suit your funding and growth needs.

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 !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas 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.

' 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial



Stan Prokop
7 Park Avenue Financial/Copyright/2020

Your Business Growth Financing And Funding Strategies Search Just Might Be Over

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Looking For The Phoenix Effect When It Comes To Growing Your Business?

Proven Information On Business Growth Strategies Financing Funding In Canada

Business growth financing strategies financing and business funding in Canada, no secret here, present cash flow and capital funding challenges. The Canadian small business owner and financial manager dreams of his or her firm being able to achieve the Phoenix effect.  That’s the Egyptian fable that has the Phoenix Bird rising from the ashes and signifying resurrection and hope.

 

SALES AND CASH FLOW -  THEY ARE DIFFERENT!!

 

Let’s dig in.  We're never surprised these days, in talking to our clients, that many owners/managers sometimes don't associate growth with a cash flow drain. Their logic is:  ' Sales are great, we've just got those new contracts and PO's, and we’re introducing a new product ‘...etc...Etc.  In their minds, and rightfully so, those expanded revenues will generate more profits. It's a perfect world, right?

 

Not so fast!  The owner/manager has forgotten in those growth scenarios we noted that cash goes out quicker than it goes in. It's a fundamental cornerstone of business finance- Growth eats cash!

 

WHEN SALES GROW YOUR CURRENT ASSETS BUILD UP!

 

The reason is of course is that you must invest more in inventories, receivables,  equipment, as well as ' beefing up ' other areas of fixed costs - i.e. people, etc.

 

RECOGNIZING A FINANCIAL CRISIS

So even if the business owner/manager recognizes the problem what then is the solution to avoiding a financial crisis of some sort? Frankly, we see things go awry quickly because when you firm is in cash crisis mode that is not viewed by commercial lenders and banks as a lending opportunity to your firm!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!   You don't want to be caught in your lenders board room explaining that you didn’t see it coming.

 

BUSINESS LINES OF CREDIT CAN PROVIDE THE SOLUTION

The most common solution for these sort of growth stories is the business line of credit. That type of financing can be achieved via a Chartered bank credit facility, or a newer solution these days, the Asset Based Line Of Credit, offered by non-bank commercial lenders. These facilities of course monetize your 'current assets ' and allow you to borrow on a revolving basis.

 

WHY IS ASSET TURNOVER KEY TO GOOD CASH FLOW

A word to the wise, don’t let accessing either of these two facilities lull you into a false sense of security. Your focus should still be on strong asset turnover to the best of your ability, so inventory turns and collecting A/R in high growth situations should be a top priority.

HOW TO PLAN FOR CASH FLOW NEEDS

Many business owners still don’t realize that they can plan effectively for cash flow needs. A simple spreadsheet tracking your sales, collections will identify the amount of your cash needs. That allows you to be proactive in planning for business growth financing. By the way, that sort of simple analysis will always be viewed positively by your cash flow lender.

 

WHAT STAGE OF GROWTH IS YOUR FIRM IN?

 

Naturally, there are different stages of ' GROWTH' when it comes to business funding solutions that can be all the way from start-up to explosive growth scenarios. All stages of business growth come with different financing solutions - some short term, others long term.

 

Small businesses aren't exactly the candidate for those Bay street venture capital folks. We've referred to bank credit lines, as well as non-bank ABL lines of credit. Other cash flow growth solutions include:

 

A/R Financing

Inventory Loans

Access to Canadian bank credit

Non-bank asset-based lines of credit

SR&ED Tax credit financing

Equipment / fixed asset financing

Cash flow loans

Royalty finance solutions

 

Purchase Order Financing

 

Short Term Working Capital Loans/ Merchant Advance

 

Securitization

 

 

CONCLUSION

 

Which type of financing will make your growth successful? Let your firm experience the PHOENIX EFFECT... seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with growth funding.

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 !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas 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.

' 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial





Stan Prokop
7 Park Avenue Financial/Copyright/2020