You Can’t Handle The Truth ! Or Can You? How Much Debt & Financing Do You Really Need loans and funding options

OVERVIEW – Information on business financing in Canada . The right funding options and loans will determine financial success. Here is why.. and how

Business financing needs in Canada often raises the question “How much debt can my business handle?”. Loans come with fixed payment obligations and other funding options also come with other challenges such as collateral, covenants, personal guarantees, etc. Those outside restrictions alone will often determine the amount of financing you are eligible for. Let’s dig in.

While every business owner/financial mgr appreciates a lender who understands their business and industry access to that quality is never guaranteed. While it’s true an eligible business can ‘ load up ‘ on financing to the point where it’s ‘ unhealthy’ for the business in many cases it’s your bank or commercial finance company that will set a cap .

The issue of ‘ how much ‘ is also an interesting one because different industries have different financial characteristics. For example lenders and financial analysts feel most mfg. companies can carry twice as much debt as their owner equity while finance firms, as an example, can have 2, 3, 4, 5 times and more debt than equity. Knowing a bit about your industry characteristics can help you therefore determine the amount and type of funding options you need.

For companies that are young or growing quickly the issue of personal guarantees is always a careful one to consider. Knowing the true value of the assets on your balance sheet is key, we assure clients that a bank or commercial finance firm will focus in on this area. Asset and liquidation values are a ‘ worst case’ type calculation, but nonetheless important.

Remember also that debt typically comes in the form of fixed obligations such as loan payments or lease payments ; but numerous financing options available to the business owner/mgr also simply monetize or ‘ cash flow ‘ your assets – adding no additional debt to the balance sheet. Cash flow budgets are also important – business rarely travels in a straight line and peaks, valleys, and ‘ bulges’ are common.

It’s important to mention also that quite often, in fact in most cases, that no one single type of financing will solve all your business challenges. The better news though is that numerous types of loans and funding options can solve your borrowing needs. Those solutions include:

A/R Financing

Term Loans

Bank lines of credit

Non bank asset based business lines of credit

Inventory finance

Tax Credit Financing ( sr&ed )

P O Financing

Royalty/ Sales financing

Sale Leasebacks

Equipment financing

Commercial mortgage re-financing

While the solutions available are of course ‘ positive ‘ in nature it’s important to remember also that it’s sometimes a challenge to navigate working with 2 or more lenders.

So, can you handle the truth? If you’re looking for ‘ sensible ‘ business financing seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing your capital 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 – has completed in excess of 80 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 re: Canadian business financing & contact details :

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Office = 905 829 2653

‘ Canadian Business Financing with the intelligent use of experience ‘

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