Asset Based Finance Solutions In Canada: Financing Via Business Loans That Make Sense !

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Asset Based Lending Canada

Asset based lenders have the ability to remove many of the challenges faced by business owners and financial mgrs. in Canada. We're examining the abl loan as a method to fund operations and growth.


Most top experts in Canadian business financing consider asset based lending a different form of funding your company - the other end of the spectrum being traditional chartered bank financing.

How is traditional bank financing different from an ABL Loan ? Simply because the entire focus is pretty well on specific assets that essentially give more borrowing power against 4 asset categories, either one of those or in combination.

Asset Categories

Accounts Receivable

Inventory

Fixed assets/equipment ( Must be assets that your firm owns outright )

Real estate - if applicable

Purchase Order financing can also be considered a subset of solutions offered via an ABL lending company in Canada.


Depending on what business and industry your firm is in you're either top heavy in one or more of those asset categories, or perhaps not at all. Service based companies traditionally utilize a/r and contract financing via the asset finance offering.


What then is the key benefit to asset based finance business loans and financing solutions? To put it simply:


FASTER ACCESS TO CASH!


Traditional financing forces you to address key issues such as what your balance sheet looks like, as well as focusing on historical, present, and future cash flow/projections. Your company may not necessarily have what it takes there, or in some cases, you're newer in business or even a start up. We point out that it always helps if you have a business plan and cash flow readily prepared.


A lot of companies that utilize asset based ' ABL ' lending solutions in Canada have a lot of seasonality or ' bulges' in their business cash flow needs. The ability to therefore rely on your ongoing asset base really helps smooth out those bulges!


While personal guarantees are almost always an issue for the business owner we can say that this type of guarantee, considered ' valuable ' or a ' must ' in banking circles has much smaller or no emphasis on asset based lending. Additionally, true asset based finance deals are pure asset monetization.


1. No debt on the balance sheet

2. There is no equity give up - Growing companies can maximize shareholder return without giving up equity when it is most valuable


We do need to mention though that while some consider ABL cash flow solutions as their ' holy grail ' in business cash flow financing you must be able to properly report on assets or be willing to go thru some form of appraisal process when it comes to adding inventories, fixed assets, or real estate.



ABL lenders, mostly commercial non bank lenders, rely heavily on the true marketability and value of your company asset base in the asset categories we have mentioned

ABL asset finance can also be used as an integral part of the financing to purchase a business when you or your company has targeted an acquisition that requires specific financing outside traditional norms


Seek out and speak to a trusted, credible, and experienced Canadian business financing advisor who can assist you with your cash flow and funding needs.

Click here for more info on 7 Park Avenue Financial Business Financing Success

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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

Business Financing Canada : Step Inside The World Of Business Financing Options

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Information On How To Get A Business Loan in Canada

Business financing opportunities and solutions don't always provide owners & financial mgrs with the capital they are looking for. We're stepping inside the world of company loans and business financing options with the focus on ... getting what you need and want! Let’s dig in.

The most sought after funding solutions for business funding are often traditional Canadian chartered bank solutions. Many 'SME's' ( small and medium enterprise ' firms often require some form of term debt, aka ' loans' to help set up early needs in investment requirements.

But wait! There's a challenge, which should come as no surprise to most entrepreneurs, which is that Canadian banking cannot always fill the bill when it comes to those immediate needs. Help is required! The reason? Bank financing is often best suited for firms that are later in their growth cycle. Companies that have dynamic needs and who are fast growing present more of a risk to the banking sector.


That's, therefore, the ' gap ' we often are talking about with our clients - the ability to find loans and cash flow solutions from a business lender that can fill your growth needs during times where cash flow and profits might be a bit more erratic. In some cases, it's simply the need to seize the ability to take on a large contract or fulfill and order. That's even more pronounced when it comes to firms that are pure start ups, or service and tech type firms that might have services to offer instead of products.


The irony that's not lost on most business folks is that it's the SME sector that in fact drives the economy when it comes to employment and economic growth, so how to finance a business with the right information and resources  becomes an even more critical factor in the Canadian economic landscape

Business Financing Options - Financing A Business In Canada

So, we've discussed the problem. How about the solution? Many forms of innovative funding can be found in numerous alternative financing solutions available to Canadian businesses. These include:


A/R Financing/Factoring/Confidential Receivable Financing

Inventory Loans

Floor Planning Facilities

Working Capital Term Loans

Government Loan For Small Business  -  At 7 Park Avenue Financial we are often asked ' how to get a business loan from the government ' - This is the best option for start ups and small business loans in Canada - This business loan is often called the ' SBL Loan'. This is almost the only financing program that finances leasehold improvements. The ' bdc loan ' is also a quasi-government loan that can provide working capital and cash term loans and equipment financing for your business - This is not a Canadian grant for small business - it is a flexible term loan with competitive interest rates that rival what larger firms are eligible for

Sr&ed Tax Credit Bridge Loans

Equipment Financing/ Sale Leasebacks

Non bank asset based revolving lines of credit



When it comes to small business financing these solutions can be used to grow your business, acquire a business, or change their overall capital structure, often giving you the ability to de-emphasize ' debt ' with more of a focus on cash flow financing. Business loan rates in Canada vary depending on overall credit quality, size of the transaction, type of lender, and industry profile.


If you're ready to step inside the world of Canadian business finance options available to your firm seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business financing success who can help you ' get what you want '!





7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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

Business Financing Companies For Lines Of Credit & Loans

Business Financing Loan Programs That Make Sense

Business financing choices for medium-sized companies and small business credit term loans or a line of credit often seem like huge hurdles when it comes to funding accessibility for owners/financial more. It's all about ' working capital when it comes to funding, and business owners will often lament the lack of choices in funding and capital solutions. Our thoughts? In fact, you probably have more choices today than you ever did for your cash needs! Let's dig in.


Is there ever a time when a company doesn’t need funds. Whether it's acquiring new assets, considering expansion into new markets or products, or simply paying daily operating expenses there’s always a need for financing solutions.


There is always a business loan requirement! At 7 Park Avenue Financial we will often recommend and prepare a business plan for our clients as a key part of any financing strategy.

Your timeframe of reference is critical to assessing and acquiring your financing solutions. Typical timeframes are of course ' short term' for daily needs such as a line of credit, or ' long term ' as it relates to capital assets or investments in R&D. In the long term, you might be considering simply refinancing your current business is funded - that perpetual mix of owner equity and debt - and the right combination of those two.



In the middle, there are often' bridge loan' needs for a variety of circumstances. These solutions can fill the gap that comes from the dynamic changes in your business.



From a small business perspective, many firms are in start-up or early stages, The Govt of Canada has one of the best programs that thousands of firms utilize every year. This loan is now up to $1,000,000.00 in loan cap, provides a govt guarantee to your bank for 90% of your loan, and comes with great rates and flexibility that even some more traditional forms of financing can't deliver on, i.e. any penalty pre-payment, longer terms, etc.



As we've stated, there is a ' new normal ' in Canadian business financing. That new normal includes the rise of numerous alternative finance solutions. Those combined with traditional bank financing offer a large slate of funding solutions.

So How Do Business Loans Work In Canada?

Looking for a simple list of business financing solutions available to your firm? Here they are! The Canadian ' SME ' sector has access to traditional and alternative finance solutions for small business financing as well as larger firms.

What are the best financing options for a business?

A/R Financing/ Invoice Factoring/ Confidential Receivable Financing



Inventory Loans



Bank credit lines



Nonbank asset-based revolving credit lines



Govt Guaranteed Business Loans - This is The Small Business Administration Program Of Canada ( This Program Is excellent for start up funding for small business ) This program is the best example of ' government financing ' and is used by thousands of companies every year. The program is also excellent whereas grants for small businesses may be cumbersome and difficult to obtain from a timing perspective.



Tax Credit Financing (SR&ED / FILM)



P O / Contract Financing



Equipment Financing



Unsecured cash flow loans/ Mezzanine financing



Franchise Loans



Sale Leasebacks



Royalty Financing



Working Capital Loan / Merchant Cash Advance - These viable short term loans arose out of the use of credit cards by business owners.



Many financing solutions identified here can also be combined with ' BDC Funding '. All of our referenced business finance sources are not ' equity financing ' and don't dilute owner equity. The road to venture capital and private equity financing is a long and arduous one and most companies are not ready for that journey.

Whatever financing program or strategy you employ interest rates will vary depending on whether your loan or asset monetization will cost will vary.

Documentation and your firm's ability to provide the basics such as financial statements, owner background, etc. are keys to a good financing package. Let's not forget a realistic cash flow budget also.

This broad range of financing solutions allows your firm to grow, hire people, and become key players in their industry. Looking at a number of solutions will allow you to identify business loan requirements and which finance solutions might work together.

To implement any financial solution you need to understand where your ' financing gap' is and which solutions will work when it comes to either taking on debt or simply monetizing your assets to the maximum, while still employing prudent leverage.

Are you aware of all your financing choices? If not seek out and speak to a trusted, credible, and experienced Canadian business financing advisor who can assist you with your loan and line of credit 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


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

What Are Alternative Financing Solutions In Challenging Times

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Alternative Financing Options - Work !

Business finance funding sources for many Canadian firms often seems just out of reach for many owners/financial mgrs. Those owners and managers might even feel as if their financial challenges are somewhat impossible especially in times of industry or economic turbulence.

In some cases your business financing prospects may fee somewhat similar to the July 12 Disco Demolition Fiasco? ! (On that day a Chicago DJ organized a ' disco sucks’ protest at Chicago's Comiskey Park. The 5000 invited fans turned into a riot of 70,000 of epic proportion and damage). Unexpected events in business can wreak havoc on any company , large or small, or new !

Most business people feel that bank financing is often critical for the ultimate success of a company. Traditional Canadian chartered bank financing might not always be available though. The good news is that there is access to business finance today in numerous other forms.

These solutions tend to fill the ' growth gap ' that perceived / real credit crunches deliver to the stifling of a firm’s growth.

In some cases it is all about ' the turnaround ' , the ability to turn a business around via strategies that will benefit your company immediately and in the long term.

When you are looking to fix your company's immediate financial position it's all about the ability to both control current cash flow, as well as generate additional cash flows. The ability to control costs, generate sales, and ensure you have the capital to finance those sales is what that immediate turnaround is all about .

While ownership and mgmt might possibly be capable of addressing internal costs and sales and cash flow issues ultimately specialized expertise from a trusted, credible and experienced Canadian business financing advisor will probably generate more success.

When it comes to low cost and low risk our Canadian chartered banks deliver on the many longer-term solutions for business finance needs. Although bank requirements are pretty basic, and common sense, many firms, perhaps yours, are unable to prove or provide stability in cash flow, historical profits, and the collateral and or covenants and personal guarantees required in our Cdn banking system.

Alternative Financing Options

6 sources of business financing you may not have considered are:


Asset based lending / non bank lines of credit - These facilities combine your receivables, inventory, and even equipment and real estate if desired, into one borrowing facility and revolving line of credit


Factoring/ Confidential Receivable Finance


Sale Leaseback On Assets You Own -


Purchase Order Financing


Equipment Financing (Lease finance is often both a traditional and alternative method of acquiring and financing new assets) Almost any new or used equipment asset can be financed these days, even software, to run your business!


Start-up and early stage growth firms should well consider the Canadian govt small business guaranteed loan program, providing a govt guaranteed loan via your bank for 90% of the loan amount, which now is up to $1,000,000.00 as a loan amt cap.

We always point out to clients that various forms of equity finance could be considered; these include bonds, private capital pools, private equity, angel investors, crowdfunding, etc. However these solutions are a road less traveled and take so much time with only the smallest percentage of firms ready or succeeding in these areas. No secret also that these aforementioned ' equity ' type solutions dilute business ownership percentages, often undesirable in early-stage or growing companies.


If you're looking to feel better about business finance alternatives available to your firm seek out and speak to business finance expert with a track record of business finance success who can assist you with identifying the right mix of solution and funding/capital amount your business needs.. to grow!)



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


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

Types Of Business Credit Lines In Canada

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What Is A Business Credit Line ? What Type Is Best For My Company

Business Loans and Lines Of Credit - Revolving Line Of Credit

Business credit lines in Canada can come from different sources, 2 major sources in fact . Both of these sources are different on how they deliver your cash flow needs, their cost, and how they work on a day to day basis as you run and grow your company in good times, and less than good times!

Understanding those issues helps the business owner his/her financial manager to plot a ' key to success' strategy that helps ensure business growth and survival.

How To Get A Business Line Of Credit In Canada

A true business line of credit is offered by our Canadian chartered banks as well as what are known as 'nonbank' commercial lenders. These non bank lenders, often called asset-based lenders ( A B L ) operate outside banking regulations and are privately owned . Both solutions offer revolving facilities, except that the asset-based lines of credit are more focused on the actual assets in your business.

It is important to understand that typically your revolving line of credit is ultimately tied to your sales. As you sell your products and services you generate collectible receivables ( hopefully ), as well as turning inventory if your company sells a product vs. a service. Typical bank facilities focus on account receivable and sometimes have an inventory component tied to the borrowing formula. ( That formula by the way is known as a ' borrowing base ', which is an important concept to understand in business credit lines . Out of this borrowing base is what you will draw down on an ongoing basis your firms cash flow needs.

Asset based lenders focus and lend more against your assets, and in turn they tend to monitor your a/r and inventories more closely - as those two assets are typically the prime collateral for your asset-based loan.



KEY POINT - Asset based lines of credit, the nonbank type of facility, also can easily put your owned fixed assets into the borrowing formula. This total focus on ' assets ' great increases your borrowing power when combined with a/r and inventories.

Bank Line Of Credit Vs. Asset Based Credit Lines

While banks do require some ongoing reporting on your assets, typically monthly, sometimes only annually, they instead focus substantially on your operating characteristics of profit, cash flow, debt load, and character and personal collateral of owners.

Banks do finance inventories but are often challenged by the ability to both understand and monitor inventories - while asset lenders have developed experience in numerous industries and inventory types. Borrowing conditions for inventories depend heavily on the type of inventory and it's overall liquidation ability - as an example perishable foods are often hard to finance.

Business Credit Line Rates & Cost

What's my rate? That's the ongoing battle cry of business owners and financial mgrs when they consider line of credit needs and benchmark the offerings of their bank or asset-based lender. While your borrowing capacity can often double or triple in asset-based revolving facilities they do come at a higher cost.

Conventional bank financing is cheaper, but more challenging when it comes to the amount of approval, or whether your firm is bank financeable at all ! An interesting note is that in recent times, due in part to general competitiveness and the low rate environment asset loans have in fact dropped in overall cost.


Startup, fast-growing, as well as financially challenged companies are prime candidates for asset based lines of credit. They have limited or challenged cash flow generation performance, but require rapid access to cash flow and working capital. The conservative financial position as demanded by banks focuses on ratios, cash flow, debt to equity relationships, and owner guarantees.


It's important to note that many, shall we call them ' subsets’, of asset based loans can help deliver liquidity to your business.

Other Working Capital / Cash Flow Alternatives

Factoring/Confidential A/R financing

Inventory loans

Bridge loans

Sale-leaseback strategies

Purchase Order Financing

SR&ED Cash flow loans

Short Term Working Capital Loans ( Note - while these short term working capital loans are popular and positioned as business revolving credit lines they are in fact just short term loans based on 15-20% of your sales volume and are tied to personal credit history of the owner/owners


If you're focused on ' keys to success ' in your working capital and cash flow needs seek out a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success , who can assist you with your business finance needs.

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How To Obtain Business Financing In Canada

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Could You Put Some New Business Financing To Good Use?

Business financing in Canada has never been as important as in recent times - A company can fail in the best of times, whether it's poor finance practices around your existing financing strategy or simply the inability or lack of knowledge around business capital , cash flow, and working capital solutions . At 7 Park Avenue Financial we believe any firm can benefit from a better overall financing strategy.

And boy have things changed ! Long gone are the days when funding a company simply revolved around low interest long term bank loans, when approval seemed cumbersome but ultimately successful.



7 Park Avenue Financial's vision was founded specifically on that landscape that changed. No secret that these days not all business borrowers fit the mold of traditional financiers such as the Canadian chartered banks.

Many businesses try online lenders - yet while the applications and loan process is viewed as online there is a distinct lack of personalization that your company and industry might need. Even worse is that the multitude of on line lenders simply confuses the business owner, if not downright deception in a few circumstances.

In the case of the short term working capital industry, which evolved out of the U.S. Merchant advance loans many Canadian borrowers have found they can approach and get approved by several lenders.. in effect they ' stack ' new loans on top of each other

When investigating on line solutions we encourage clients to ensure they are dealing with a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success to eliminate any disastrous financing.

A proven solution towards the path of solid business financing is simply to analyze short and long term cash flow needs ( a cash flow plan ) that allows your company to understand where liquidity is needed.

An ' informed ' business borrower armed with proper knowledge around the types of financing and cost of their financing needs is the best scenario to strive for. In many cases your industry will typically benefit from a type of financing used by many of your competitors and that can assist your own firms funding journey.


While many owners/ mgrs and entrepreneurs in general focus on sales revenue growth as the key metric to success that motivation has to be complemented with good cash flow management & financing solutions geared to your cash flow and asset monetization needs .


Sales will drive a lot of your financing choices and will in many cases dictate or suggest what type of debt finance or asset monetization you will utilize. While it's important to be optimistic about sales growth that same revenue issue can be a source of stress when it comes to cash flow.


One reason why ? Simply because building inventories and receivables and investing in new assets are cash uses, not sources, as our good friends accountants would say.


While cash flow and sales budgets are important and reflect good mgmt the real world dictates that Murphy’s law will often kick in , which might mean:

Large New Sales or Contract Opportunities

Seasonal cash flow needs

Loss of a major customer

What Is The Best Solution To Finance Sales Growth ?

ANSWER : A traditional or alternative business line of credit ( tradional = non bank )


1. Canadian Chartered banks


2. Non bank commercial finance asset based credit lines



It often also takes new/used assets to build and grow a business, i.e. equipment, machinery, rolling stock, technology a la computers, software, etc. In that case equipment lease financing is your best bet as it conserves cash flow and matches the benefits of the asset in question to cash outflows. From start up to mega corporations 80% of businesses of all size utilize lease based asset financing.

Business Financing For Smaller Companies / New Companies

Newer businesses, mostly start ups should consider the Canadian Govt Small Business Loan - aka the ' SBL ' loan. That loan is guaranteed by the govt and only requires a 10% personal guarantee against the loan which can be anywhere up to 1 Million dollars depending on the asset you wish to finance.


Cash flow concerns boil down to liquidity. The 2nd most liquid asset you have on your balance sheet is receivables. Collecting them promptly and financing them properly is key to business success.


For those firms that can't access or get approval for the amount of business credit line they need numerous solutions are available, the most popular often being A/R financing via a ' factoring' or 'Confidential Receivable Financing ' program. This solution monetizes sales as you generate revenues - instant cash. Key advantages include: instant liquidity and no additional debt on your balance sheet.


Businesses in the SME sector in Canada (small to medium enterprise) will never have too much cash. Increasing sales, buying assets, hiring people drains cash- sometime slowly, other time not so slow!


Some other solid real world solutions to cash flow and loan needs include:


SR&ED Tax Credit Financing


Sales Leasebacks


Unsecured cash flow loans


Short Term Working capital loans

Mezzanine Financing ( Unsecured cash flow term loans )


Financing a business in Canada, in ordinary, or extra-ordinary times takes some time, knowledge and access to funding solutions that are in your firms best interest . Stay educated and ensure you are working with someone who is on your side when it comes to maintaining finance solutions tailored to your business health. At 7 Park Avenue Financial we call that ' Financing With The Intelligent Use Of Experience '.

What Are Short & Long Term Financing Options For My Business

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The Best Canadian Financing Options For Your Business

Short and long term financing options are not always comparable to the U.S. borrowing options we read and hear about in the business news. That is a double-edged sword when it comes to financing your company with the right loans, debt and cash flow options that allow the business owner and financial mgr to fund the company.

At 7 Park Avenue Financial new clients tell us they feel strongly that there is a lack of proper business funding options for small and medium enterprise firms in the Canadian business landscape.

For those companies that are clearly a ' barrier to growth', let alone survival in economic turbulence! Primarily we're talking about debt financing as well as ' asset monetization' to grow cash flow and working capital without taking on debt. Solutions such as business credit lines, either via the bank or a non bank lender, are critical to operating any business.

Businesses are funded in different manners, whether they are new and ' out of the gate ', often funded by owner personal investment and the proverbial ' friends and family '. Debt financing for the SME sector in Canada has historically been difficult to achieve.

Many new businesses, franchises included, are funded by the Canadian Govt Small Business Loan progra,m which offers significant capital to new and growing businesses. A combination of generous limits, low rates, and government guarantees and low personal guarantee makes this program very appealing to thousands of businesses every year.

We spoke of the business finance options in the U.S. It is important to note that there is probably a lot wider variety of options and lenders in the United States.

EXAMPLE : Canada set up its own version of the U.S. ‘SBA ' program. In Canada we call it the ' SBL ' - It's a govt guaranteed loan with the federal govt guaranteeing 85 % of your loan to the bank. In Canada, the program only finances equipment, leaseholds and real estate. In the U.S., numerous other options are available under the same program.


A different banking and financial system create the perception that there are more banks and lenders in the U.S., offering a larger variety of funding. But Canadian businesses should realize that a combination of traditional, as well as Alternative Financing solutions, do exist for borrowing needs.

Our Canadian chartered banks are significant ' deposit takers', as a result they are understandably risk averse, leading of course to a stronger banking and financial system ( that's a good thing ), but on the other hand limited business lending options to a certain degree.

The good news is that Alternative Lenders are providing more choices every day to thousands of Canadian firms, due somewhat in part to U.S. business financing models becoming more popular in Canada. Short term working capital loans, asset based lending ( ' ABL ' ), and numerous A/R and Sales financing solutions are now readily available to the Canadian business borrower.


The traditional financiers in Canada are:


Banks

Business Oriented Credit Unions

Insurance companies

Leasing Companies

Mortgage Institutions


Traditional financiers in Canada use the same approach for almost all borrowers, which of course has a tendency to restrict financing. In Canada companies seeking SME COMMERCIAL FINANCE (small to medium sized firms) constantly are challenged to finance sales and assets. Access to business lines of credit is always a challenge; Our previously mentioned Asset based lines of credit in Canada have exploded in popularity.


WHAT FINANCING OPTIONS ARE AVAILABLE TO ENTREPRENEURS & BUSINESS OWNERS?


Offerings Business owners should consider include:


A/R Financing

Non Bank Asset Based lines of credit

Equipment financing

Sale leasebacks

Bridge Loans - asset based

Tax Credit Financing (film and SR&ED)

Franchise Loans

Govt Guaranteed Loans

Working capital term loans

Merchant advances


To borrow with a full understanding of your business finance options seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist you with loans, funding and growth finance and survival options specifically suited to your business 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


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