OVERVIEW – Information on business financing in Canada. Asset finance strategies and the right type of loan are in constant demand for companies seeking to access credit & capital
Business financing challenges in Canada sometimes may have business owners/financial mgrs feeling like they have fallen down the ‘ black hole ‘ with that ‘ no way out ‘ feeling accompanying that.
Whether it be asset finance, a business loan, or revolving credit facility the ability to find a solution you can trust for the immediate/intermediate and long term is what good corporate finance is all about. Let’s dig in.
That ‘ black hole’ we’re talking about often has to do with the stage of growth and success your company is in. No secret that start up, all the way up to SME (small to medium enterprise) firms probably face more challenges.
Their ability to add people, assets, and additional cash flow often comes at a time when traditional bank financing is unavailable, or at least unavailable in the amount they want. For those firms that are ‘ bankable ‘ it’s all about ensuring that you understand the facilities provided and the ramifications and requirements of Canadian chartered bank borrowing.
Loan applications to banks, whether for operating or term facilities should be accompanied by a business plan, your financials, and cash flow forecasts. For firms that are unable to produce a proper plan or exec. summary help is available from people such as your accountant or external business financing advisor.
It’s interesting that when we talk to clients about potential financing solutions their focus (understandably so because they are entrepreneurs) is typically on sales and profits. That coupled with the fact that ‘ profits are an opinion but cash is a fact ‘ often has owners/ mgrs missing the fact that cash is in fact the lifeblood of your business.
Getting back to those sales revenues though, it is in fact important to understand that the rate of growth of those sales will often dictate the amount and type of outside financing you will need. We say ‘ outside financing ‘ only because solid operating mgmt of inventories, receivables and payables can in fact add positive cash flow to your business… big time!
Many firms in mature industries that have slow or moderate growth in fact produce cash, not use it. The euphoria that comes with sales revenues success is often tempered with the fact that all your cash is tied up in working capital needs via inventory and A/R. Bottom line – it’s tough to be a cash cow!
Some firms even consider selling their business too early if only for the reason that they can no longer deal with financing challenges. The ability to estimate how much cash or capital you need for people, plant and sales growth is key. Financial solutions for your business, both traditional, and alternative, include:
SR&ED tax credit financing
Equipment leasing/ asset finance term loans
Bank business credit lines
Non bank asset based full business lines of credit
PO / Contract Finance
Sales / royalty financing
If you feel you’re either in, or capable of falling into the ‘ black hole’ of business financing voids seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can deliver on solutions you can trust to grow.. and survive.
Stan Prokop – founder of 7 Park Avenue Financial –
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 :
7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
‘ 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.