Are You In The Lonesome Corner When It Comes To Business Financing
capital sources toronto

 

OVERVIEW – Information on business finance alternatives in Canada. Financing and capital sources


Business finance
challenges and problems often have owners/mgrs feeling like they are in the ‘ lonesome corner ‘ as the need for financing solutions and capital sources seems never ending and seemingly unattainable. So let’s look at our Cdn version of the current ‘ state of the union ‘
capital sources gtain funding your business. Let’s dig in.

We’re going to assume a couple of things – first of all that as an owner/mgr your goal is to ensure the right amount of liquidity in your business. Additionally as cost is always a consideration in business financing it is a case of ensuring you have the most capital funding at the lowest cost – which is of course driven by your overall credit quality.

The right mix of what you have in the company already (i.e. owner equity) versus the maximum amount you can borrow is what is going to give you what the pros call maximum ‘ return on capital’.

We mentioned the business owner as potentially feeling as if they are sitting in that ‘ lonesome corner’ – in fact the way to remove that feeling is simply to be more proactive in understanding what capital sources are out there relative to how you wish to use those funds. ‘ Use of funds’ is important as you need to distinguish between ‘ assets’ you need to run and grow the business versus those short term cash needs such as business credit lines.

We can’t overemphasize that issue of funds ‘ matching’. Big mistakes occur when you use wrong strategies – Example: taking cash on hand or accessing credit lines to acquire a long term fixed asset. (Those types of assets should be acquired via business finance strategies such as equipment financing or term loans. It’s a case of simply focusing on what those asses will cost and what type of cash flow and profits they will generate over the longer term.

We’re always referencing the fact that the owner/mgr has to sit back and get a sense of what stage their company is in. Those stages are actually very defined. They are:

Start up

Growing / emerging

Mid market

Mature and or large publicly traded

The capital sources these firms need vary and include:

A/R financing

Securitization

Bank lines of credit / term loans

Non bank asset based business credit lines

Equipment Finance

Refundable Tax Credit Finance

PO Financing

Unsecured cash flow loans

That’s our ‘ state of the union’ on capital sources in Canada. If you want to exit our ‘ lonesome corner’ analogy and access the financing and capital sources your firms needs, today and tomorrow… seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your 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 – Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com


7 Park Avenue Financial

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

Direct Line = 905 302 4171

Office
= 905 829 2653

greg@7parkavenuefinancial.com

‘ 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

 

7 Park Avenue Financial
Canadian Business Financing