OVERVIEW – Information around financing loan solutions in Canada. Capital finance loans and other forms of working capital and cash flow solutions.
Financing loan solutions in Canada, more commonly in the SME Commercial finance sector, often have business owners/financial mgrs feeling like they are in the middle of a fruitless endeavor. Addressing the financial reality around their capital needs is critical to business success and growth. Let’s dig in.
If there’s any good news around that search for business loan financing it’s that the real solutions you need come in many forms- that includes the actual profits in your business, equipment finances, revolving credit lines, commercial mtges, etc. Some firms also undertake the search for equity capital – even more daunting challenge.
The search for capital finance loans and other forms of financing involves understanding what is determining those needs. Some of those factors include:
The size and growth of your company
Stage of product or service development
Asset turnover in receivables / inventories/ fixed asset needs
The seasonality around your business
Issues particular to your industry
At any event at a certain point the owner/mgr is confronted with the need to obtain external financing. That need is even more exacerbated if financial losses are eroding owner equity.
Many clients we meet are often incorrectly focused on ‘ loans ‘ in the sense of taking on new debt when in fact the real need is for ‘liquidity’ in their business assets. It’s those liquidity solutions that smooth out the day to day needs of your business. Those ‘ cash flow ‘ (not debt) solutions include:
TAX CREDIT FINANCING
BANK OR NON BANK REVOLVING CREDIT LINES (Non bank business credit lines are called ‘ ABL’s)
SALE LEASEBACK STRATEGIES
These above noted solutions take the day to day ‘ scrambling’ out of your constant cash flow needs. Top experts and studies have revealed that almost 50% of ‘ capital needs’ of a business are often solved by utilizing these solutions.
By the way, focusing on debt and not cash flow when your firm is not profitable is precarious at best. Also many business owners /mgr’s are not comfortable with the covenants and restrictions that come with term debt – especially bank requirements that also come with personal guarantees and outside collateral needs.
Another issue adding to the conundrum of finance loan needs is the myriad of new entrants into the business loan market. They are certainly giving banks a run for their money! Many of these solutions no long even require the age old ‘ eye to eye’ contact prevalent in commercial lending.
If you’re focused on financing loan solutions and cash flow requirements for your business and want clarity on capital finance loan needs via banks and other commercial lenders seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can reverse that feeling of fruitless endeavor experienced by many in Canadian business financing .
7 Park Avenue Financial :
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 . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN LOAN FINANCING EXPERTISE
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
7 Park Avenue Financial
Canadian Business Financing