OVERVIEW – Information on growth financing solutions in Canada. Business finance options to grow your company work best in a well mapped out and planned strategy
Business finance options , when it comes to growth financing are more successful when they are mapped out properly. We’re examining the perks and pitfalls of growth finance. If you have no growth plans you have no worries at all! Let’s dig in.
The ability to determine or calculate how fast you want to grow depends on several factors, one of which is financing. In some cases you might want to grow ‘ non organically ‘ – that is to say buying/acquiring another firm. Given that debt and equity are essentially the only two considerations you have which one works for you. More importantly what types of debt financing are available?
At certain points in time your business is well past that start up stage- it’s time for take off! The majority of businesses in the SME COMMERCIAL area have limited equity options, so it’s all down to either debt… of monetizing assets they already have. If you don’t have some record of success at this point financing will almost always be a challenge.
If you buy into the fact that growth should be carefully mapped out it’s critical to have a business plan that demonstrates both your operating as well as growth requirements. The ability to assess collateral will often point to commercial finance companies, as opposed to banks, for the financing you need. When outside collateral and personal guarantees don’t cut it with the bank commercial finance firms have numerous options to run / grow your business.
PO / Contract financing
Asset based non bank business lines of credit
Equipment financing/Sale Leasebacks
Working capital term loans
Unsecured cash flow loans
Govt Guaranteed ‘SBL’ Loans
While financing costs are higher but give you finance alternatives, and the ‘ perk’ here is of course that equity funding can be avoided with ownership being fully maintained. Remember also that your own operating cash flow can be a large component in your growth plans. Profits and asset turnover in receivables, inventories and payables mgmt will produce cash flow that can grow your company.
Bottom line, it’s ‘ back to basics’ mgmt! – A combination of internal liquidity and proper use of outside business credit.
Management of those items will also decrease the amount of operating credit line you require. And if your business requires larger capital investments Equipment financing via capital and operating leases is a choice preferred by most financial officers/owners.
As a business owner/financial mgr growth financing means utilizing your ‘ financial toolkit’ of internal and external tools as they relate to outside financing , selling or refinancing your assets, and taking on the right amount of debt to grow your business.
If you want to have a solid grasp on the’ perks and pitfalls’ of growth financing , as well as having access to business options that make sense for your firm/industry seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in mapping out growth finance options.
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
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.
Canadian Business Financing