OVERVIEW – Information on capital financing solutions in Canada. Successful strategies in business finance & corporate loans.
Business finance in Canada often has entrepreneur owners/mgrs feeling like they are being thrown into a ‘ black hole ‘ – that unique place where things go and aren’t retrieved. Not a good feeling. In that case it just might be time for some business therapy. Let’s dig in.
From the owners perspective it should be all about being able to as clearly define as possible the amount of funding that is required and how those funds will be used for either short or longer term purposes. Loans and other forms of capital financing come from various sources – knowing where those sources are and what they do will lead to proper business finance success.
The overall relationship between the amounts of debt you carry as well as the amount of owner equity in the business is really the silent driver in biz capital. Talk about a balancing act – where the ultimate goal is to avoid total business failure while at the same time stretching equity and borrowing ability to the maximum reasonable amount.
The interesting challenge in capital financing is that a company gets more return when it has more debt than equity. So we are back to that balancing act again! But don’t forget also that while many owners/mgrs have the mindset that debt is undesirable they can also at the same time monetize assets on the balance sheet that will fund a considerable amount of operations and growth.
What are those asset monetization strategies? They include:
A/R / Receivable Financing – (Our recommended solutions is Confidential AR Finance
Non bank asset based lines of credit (For those firms that can’t access any or enough bank financing)
Sales Leaseback of owned assets
Tax Credit Financing
Unsecured cash flow loans
While alternative finance strategies are becoming more popular every day, as well as more abundant it’s also important to note they typically cost more – however it’s always a cheaper route than considering new equity/ownership dilution. Quite frankly it might come as a surprise to some but earlier stage and smaller growing companies in the SME Marketplace can probably obtain debt and asset monetization financing easier than new equity!
If you’re focused on emerging from that BLACK HOLE
of business financing the right strategy might well be to seek some business financing ‘ therapy’ by talking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you with that curative process of acquiring the right amount and timing around capital financing and loan needs.
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
South Sheridan Executive Centre
2910 South Sheridan Way
Direct Line = 416 319 5769
Office = 905 829 2653
Email = email@example.com
‘ 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.
7 Park Avenue Financial
Canadian Business Financing