OVERVIEW – Information on business credit options in Canada . Funding sources for firms in the SME sector are available if you utilize this information properly.
Business credit in Canada often feels like a ‘ treasure hunt’ of sorts for Canadian business owners/financial managers. The reality in the search for those funding sources that will work for your company is that, like many aspects of business, some key basics apply and help to guarantee success. Let’s dig in.
There’s always an interesting debate around whether businesses in the Small to Medium Enterprise (SME) space either require financing, or, more importantly, are getting serviced properly by banks and other traditional lenders. While that debate rages on top experts agree that at the end of the day is important for owners/managers to understand options and qualifications.
While business credit needs in Canada relate to ‘ the business’ most owners often are surprised to find that their personal financials play heavily into any borrowing situation. It’s probably a bit closer to the truth that while personal credit history won’t be the only or the major cause of a decline in funding approval for your business it clearly carries a vote. Bottom line – ensure you understand the dynamics of your personal financial situation as it relates to guaranteeing your loan / getting approved.
A hard fact of life basic for business funding is that ‘ time in business’ counts. Starts ups and early stage companies know this all too well and of course traditional lenders such as Canadian chartered banks place heavy focus on operating history. Sales and sales growth hopefully translate also into profits and cash flow and asset acquisition so ensuring you can demonstrate revenue generation potential is key in any business finance plan.
Do business owners/financial managers really properly assess challenges in the following two areas?
1. The amount of financing they need
2. The type of financing they require
We’ve never been fully sure of that, if only for the fact we’ve seen many clients telling us they have spent time and money chasing down sources of financing for fixed assets, working capital, or even real estate from lenders that were totally inappropriate for their requirements or financial situation…
The concept of ‘ collateral’ plays heavily into any traditional or alternative lending solution; in many cases hard assets can even backstop working capital and cash flow solutions.
Many businesses that have ‘ written off’ their chances of getting financing from a bank , at bank rates often forget they might be eligible for the Canadian Govt Guaranteed Small Business Loan ( 350k max) which is offered through banks . We’re of the strong opinion it’s important to focus on a good banker, not any specific bank.
As we have hinted, numerous non bank financial solutions are available to the business owner – they include:
Asset based business revolving credit lines
Tax credit financing (Primarily SR&ED Refundable tax credits)
Equipment Leasing/ Sale leasebacks
Purchase Order Financing
Business owners are very quick to share reasons they have been declined for financing needs – Those all too common issues are collateral, personal credit history, industry out of favor, lack of proven cash flow , owner equity issues, etc. All of these issues can often be addressed via numerous financial solutions not always generally known to business people.
If you’re focusing on being successful in the treasure hunt for business credit and funding sources in Canada seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who is committed to successful financial solutions to the Canadian SME Commercial marketplace.
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
7 Park Avenue Financial
http://www.7parkavenuefinancial.comBusiness 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 BUSINES CREDIT AND FUNDING EXPERTISE
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 With The Intelligent Use Of Experience ‘
7 Park Avenue Financial
Canadian Business Financing