OVERVIEW – Information on bank financing requirements and solutions in Canada. Business loans to properly fund your business can also be achieved via numerous alternative finance funding choices.
Bank financing in Canada is, no question about it, the most commonly thought of source for business loans. Another solution is alternative finance capital – more widely available than ever these days. Let’s dig in.
There is no question that the wide availability of bank funding has the potential to serve all the needs of Canadian business – that’s in the form of business revolving lines of credit, fixed term loans, and a wide variety of other products and services. The challenge for Canadian business owners/ financial mgrs? Trying to understand exactly how ‘ the bank’ thinks!
If there’s any good news on Canadian banking it’s that our banks continue to be #1, world class in capital, profits, mgmt, etc. For the business owner this is a two edged sword, because those bank offerings come with a prerequisite of collateral, personal guarantees, cash flow, and conservative loan to value scenarios.
Companies in Canada that are ‘ start up’ in nature, as well as ‘collateral light)! makes that decision to borrow very difficult on most occasions. Think of it as ‘ lower risk lending’, but oh those great rates and access to capital!
The other common challenge to owners/mgrs are the financial covenants and ratios that might be difficult to satisfy, much less explaining to wives and husbands the whole issue of personal guarantees, notwithstanding the ability of some business people to feel confident they can negotiate some level of guarantee re: personal assets/holdings.
So notwithstanding the important of bank ‘ relationships’ as well as the dangers of being put into ‘ special loans’ it’s important to consider alternatives.
Alternatives? You bet. They include asset based lenders who focus only on the assets of the company, placing full focus on only your assets and their borrowing capacity. Those assets include receivables, inventory, and equipment and real estate if the latter is applicable.
Other solutions include Accounts Receivable financing based solely on your A/R and sales growth. Commonly known as factoring, it’s a solid solution when sales are growing and traditional finance is less available.
Other forms of alternative finance include inventory loans, PO finance, working capital term loans, sale leasebacks, and equipment financing.
If you’re focused on the ‘ best answer’ to your needs in Canadian business financing 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 your bank financing or alternative finance needs in business loans and cash flow finance.
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 BANK FINANCING & ALTERNATIVE FINANCE EXPERTISE
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
Fax = 905 829 2653
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.
7 Park Avenue Financial
Canadian Business Financing