OVERVIEW – Information on business finance funding and refinancing in Canada . Business rescue solutions are available for owners/managers who take the time to understand the reality around possible options
Business finance funding in Canada, unfortunately for many owners/ financial managers (especially those in the COMMERCIAL SME sector) is, to paraphrase our friend Shakespeare … MUCH ADO ABOUT SOMETHING. That something is the challenges faced by companies who require, among other things refinancing and monetization of assets. Let’s dig in.
If there is any good news it’s that the options available simply require some patience and expertise. By that time typically the business has started to grow into revenue. They have passed the ‘ friends and family’ phase, including popular options today such as ‘ crowdfunding’.
Business financing is all about sales, assets, and cash flow. Without all of those in some measure options such as additional equity capital must be explored.
In Canada those firms that are involved in R&D in some manner have the unique benefit of being able to utilize the SR&ED refundable tax credit program ; they are now able under that fed./prov. program to recover a large majority of their r & d spend . Even more good news is that program is 100% financeable, allowing firms to monetize / cash flow those credits and eliminate the waiting period for the refund.
What then must the owner/manager do to access the right funding at the right time? The answer is the business equivalent of ‘ going back to school ‘ – You need to educate yourself on the different methods of financing available , how they work, and what they can do, or not do, for your firm.
A quick recap of the basic funding options is as follows:
Bank credit lines / term loans
Inventory & A/R financing
Asset based non bank business credit lines – “ABL’S”
Working Capital Term Loans
Govt Guaranteed Small Business Loans
SR&ED tax credit monetization
Purchase Order Financing
Bridge Loans/ Equipment Financing/ Sale Leasebacks
Royalty / Sales Financing
After you understand the basics of each of those offerings it’s important to ensure you can supply the information needed to ensure you qualify for one or a number of those offerings. That might include a business plan, cash flow forecast, and asset schedules around receivables, inventory and fixed assets.
With respect to being prepared it’s very safe bet that that if you can demonstrate control and knowledge of your business finances you’re in a much better place when it comes to finance funding approval.
If you want to address the problem of refinancing or funding your business and want some help in the time it takes to source the right solution seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can shorten that timeline.
Author: Stan Prokop – 7 Park Avenue Financial :
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 90 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING EXPERTISE
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South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
Email = sprokop
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