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We’re Fact Checking Specialty Financing In Canada : Mining The Alternative Finance Landscape
Business Financing Loans In Canada

 

OVERVIEW – Information on finance solutions from specialty non bank lenders. Business Financing Loans From Alternative Lending Sources help Bootstrap Canadian Businesses

Business financing loans from specialty lenders continue to have a strong appeal to business owners and financials mgrs faced with the challenged of growing (and running!) their business. What is the appeal of specialized non bank financing, and why should they be considered as an alternative solution to more traditional funding? We’re doing some ‘ fact checking’ for you, so let’s dig in.

Two fundamental factors which drive your firms need for financing include the size, as well as the ‘life stage ‘ of your company (i.e. start up, growth mode, mature business, etc.) The other key factor related to this is the owner/financial mgr decision to take on more debt or, alternately seek out more owner equity. Remember also that many forms of specialized financing, including:

A/R Financing

Inventory Finance

Sale Leasebacks

SR&ED Tax credit financing

in fact can solve your problem, without bringing on any new debt to the balance sheet. That’s because those solutions we’ve named actually monetize assets you already have.

Many clients we meet are confused around the issue of what documentation and security are required for various types of alternate financing. While many solutions that are non bank in nature differ from bank financing the reality is that much of the documentation around these financings is quite similar. That includes GSA’S (General Security Agreements) which are the backbone of more senior all encompassing facilities, as well as personal guarantees from owners.

The personal guarantee issue for owners tends to be a thorny one, and as a general rule it can be said that less ‘ reliance’ is placed on those ‘ PG’S ‘ that are the bane of the entrepreneur .

We make the case that one other form of alternative finance that can be considered more ‘ traditional’ in nature is often overlooked. That’s the ‘Govt of Canada Guaranteed Small Business Loan’ program. Recent changes to limits are definitely in favor of the start up or emerging firm in the small to medium sized commercial finance arena.

While assets, cash flow and profits, as well as reasonable owner equity are a key requirement for bank financing in Canada the broad appeal of specialty financing is that not every one of these requirements has to be in place for business financing loans from specialized commercial finance firms. These firms include Equipment Lessors, Factoring Companies, Asset Based Lenders, Merchant Advance companies, and Sales Royalty finance companies.

While specialty lenders don’t necessarily focus on firms that are in somewhat of a distressed financial position the hard core reality is that the solutions they offer are in fact often perfectly suited to ‘ righting the ship ‘.

By the way even firms in the process or state of bankruptcy have access to specialized lending which can often save the company

If you’re looking for some serious ‘ fact checking’ on forms of non bank financing that will work for your firm seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your business financing loans and asset monetization needs.

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

Office = 905 829 2653

Fax = 905 829 2653

greg@7parkavenuefinancial.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.

Park Avenue Financial

Canadian Business Financing