OVERVIEW – Information on commercial loans in Canada . The ability to raise capital for investment in business growth depends on a number of key factors.
Commercial loan needs In Canada: Cash and capital are two basic fundamental needs for any Canadian business. Your ability to raise capital and access funding for investment depends on some key factors. Let’s dig in.
Every counted the needs you have around working capital and ongoing cash flow? They include fixed costs such as rent/leases, wages, equipment needs, and even ongoing research and development if that’s applicable to your industry. Business owners also want to ensure they are not overly exposed personally when it comes to personal assets and collateral they are more often than not required to pledge. The hard reality is that the search for cash and capital are never ending and your current situation will almost never mirror your long term needs. All those factors contribute to a feeling of entering the ‘ dark side ‘.
Top experts tell us that in fact a number of different factors determine what type of capital you require and in what amount .Those factors include:
Type of industry
Capital Intensity requirements re needs for fixed assets
Sources of capital can potentially be accessed quicker if you have access to people in the know – they include accountants, lawyers or a Canadian business financing advisor. Their ability to provide you with a road map to financing success increases commensurate with their expertise.
There are also huge differences in capital solutions depending on whether your firm is a start up, in business and growing, or mature and looking for new markets or acquisitions. NOTE: One of the best solutions for start up financing in Canada is the Govt Small Business Loan, aka the ‘ SBL ‘. It finances equipment and even leasehold improvements to rented premises. Having a track record in business or in a particular industry really helps here.
As businesses mature they need to both acquire and finance assets. Financing assets can be achieved through various means:
Traditional bank lines and term loans
Receivable and Inventory Financing
Monetization of SR&ED tax credits for companies that participate in that program
Asset based non bank business credit lines – They are known as ‘ ABL’s
Equipment financing and Sale Leasebacks
Commercial lenders have never been more plentiful and are providing financing in various ‘ niches’ for SME COMMERCIAL FINANCE needs.
We constantly remind clients that angel investors , venture capitalists, and private equity groups offer equity capital for the rare 1-2% of business that qualifies for this method of capital raising – ‘ Equity ‘.
More mature firms may want to divest either divisions or founders may wish to sell their business. Acquisition financing must be matched to proper valuation and asset situations.
If you’re at the crossroads in business financial solutions consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can bring some light to the ‘ dark side’ of business : funding .
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 COMMERCIAL LOANS AND CAPITAL INVESTMENT EXPERTISE
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