OVERVIEW – Information on business financing in Canada. The right loans and cash flow funding solutions are critical to business success and profit and sales growth
Does Business Financing & your cash flow funding search resemble that old Polish proverb around the bad ballerina? For those that don’t know it goes as follows – “A bad ballerina blames the hem of her skirt.” The meaning? Simply that a good ballerina can dance in anything. So your business should be able to acquire the right type of loans you need in any circumstance – no excuses! Let’s dig in.
Business financing may, or may not have to come from your bank – it might even come internally through better asset management. We’ll explain later.
Canadian business owners and financial managers are looking for real alternatives when it comes to working capital financing for cash flow, profits and growth. Companies looking for SME COMMERCIAL FINANCE solutions, including start ups are almost always experiencing some level of financial stress – sometimes more extreme than others.
Is it possible to get a working capital, operating credit lines, and other sources of funding from outside Canadian chartered banks? Our answers are a resounding ‘yes ‘!
Canadian chartered banks offer working capital and revolving credit facilities that are based on both the overall assets financed – i.e. receivables and inventory – however there is a significant amount of emphasis placed on balance sheet and income statement ratios, covenants, external collateral, and personal guarantees. Get past those and you’ll have a solid funding plan in place – given that interest rates in Canada are at all time lows .
But, is the bank the only way to fund your business? Absolutely not! Credit lines are available from what typically are called non-traditional sources, but the reality is that in the current environment nontraditional financing is fast becoming ‘traditional ‘.
Working capital and business credit lines can also come from asset based lines of credit, and in some cases where just receivables are involved factoring or receivable discounting becomes a business’s main source of cash flow and working capital.
We recommend you at a minimum at least explore non bank financing by working with a trusted, credible and experienced business financing firm that can deliver on the capital sources you need.
Naturally you can supplement working capital with a variety of long term options which include:
SR&ED Tax Credit Financing
Govt Guaranteed Business Loans (The CSBFL)
The advantages of non bank financing are that on average you will be eligible for much more margining on your working capital requirements. What does this mean – simply that as your inventory and receivables grow you will be able to climb up the liquidity ladder without being capped at a certain limit? The ability of a business owner to know that he has access to working capital as his business grows is key of course.
Non bank working capital financing for business working capital comes usually at a higher cost than traditional bank financing. But we encourage clients to do a careful analysis of what that additional capital can do for their firm in several key areas of business success:
Sales and profit growth
Ability to purchase and pay more effectively
Ultimately as a business owner you want to be able to know that your liquidity can grow as your business grows. In summary, ensure you understand both your capital needs, and even more importantly, your options. Break out of that Polish Ballerina Proverb syndrome and get rid of excuses around putting your business on the right financing path.
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 FinancialSouth Sheridan Executive Centre
2910 South Sheridan Way
Direct Line = 9053024171
Office = 905 829 2653
Email = email@example.com
‘ Canadian Business Financing with the intelligent use of experience ‘
ABOUT THE AUTHORStan 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