OVERVIEW – Information on accessing business capital successfully in Canada . Whether its loan financing or asset monetization , accessing the right solution is knowing your alternatives and what’s required to move forward
Business capital, It’s almost always time to step outside when it comes to loan financing and other debt and cash flow facilities available to Canadian business. And ‘ step outside ‘We of course referring to ‘ External Financing ‘! Let’s dig in.
While it’s certainly possible to be 100% self financing (many are but not by choice!) the reality is that any business with growth plans or asset needs will at some time require ongoing external financing. In the case of those businesses having ongoing losses some level of capital is needed to replace those funds.
How should the business owner/financial manager look at external financing? It simply a three pronged choice:
We’ve noted in the past that many firms spend just a little too much time chasing down equity given that only the smallest amount of firms even qualify for consideration, let alone approval, for private equity, VC money, etc . Be realistic on your chances and focus on achievable.
Earlier stage firms are often in the most challenging area – needing loan and asset financing the most but being in the ‘ least able to qualify ‘ category. However, many alternative forms of financing can address business capital needs at this stage – they include:
P O / Contract Financing
Equipment Finance – (Lease financing can address all forms of credit quality)
Non bank asset based lending facilities
Tax Credit Refund Financing – Sr&Ed loans
Govt Guaranteed Small Business Loans
Not being able to access the type and amount of business capital the firm needs forces many owners to be in the unfortunate situation of mixing business and personal credit – i.e. credit card debt, collateral home mortgages, collapsing savings.
Top experts tell us that 90% of all business loans made to firms in the SME COMMERCIAL area are made by banks and commercial finance companies. That’s where the business owner should be focusing. The other 10% of loans and financing is provided by credit unions, government programmes, and credit card borrowing.
To best access the right amount of loan / asset financing you need it’s critical to have a clear loan package available. That includes potentially (but not always) a business plan we well as financial statements, cash flow projection. That cash flow by the way is probably most required and least provided by most!
If you’re looking to a good ‘ fast forward ‘ towards successful business capital and loan financing seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success .
At that point you’re in the right place!
Stan Prokop – 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 90 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS CAPITAL & LOAN FINANCING EXPERTISE
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7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
7 Park Avenue Financial
Canadian Business Financing