Are All Business Financing Solutions For New & Growth Businesses Equal ? We Think Not !
OVERVIEW – Information on business financing solutions in Canada. Funding options vary according to the type of capital you need and whether traditional or alternative financial options are available
Business financing solutions in Canada clearly demonstrate that the types of loan and cash flow financing you need are clearly not equal in value and accessibility to business owners and financial mgrs. Here’s why. Let’s dig in.
Many different types of business finance solutions exist – the challenge revolves around your ability to ensure you’re pursuing the right type of loan or cash flow financing solution.
Many business owners/entrepreneurs aren’t familiar with the Canadian govt small business loan program. We can call it the ‘ bread and butter ‘ in terms of the phrase ‘ government loans’. Clarification is required here because it’s not the gov’t that actually funds the loans, it’s Canadian banks with the loan guarantee in place from the federal gov’t.
For Canadian business owners timing is pretty well … everything! That’s why with careful preparation of your submission a loan can be approved in a matter of days
Getting back to our theme of ‘ timing is everything ‘ an even more accessible solution for owners/mgrs is the working capital term loan. Often provided on an ‘ unsecured ‘ basis these loans are based primarily on the cash flow within your business bank account. There is a lot less paperwork required and funding can occur within days.
Many businesses, particularly in the SME sector (small to medium enterprise) require purchase order funding solutions when they receive orders and contracts far in excess of their normal financing capabilities. P O Financing allows companies to access new markets and larger customers, enhancing revenue growth. Most times even international orders of almost any magnitude can be financed if your firm has a qualified buyer and a legitimate supplier.
Those govt loans we referred to, specifically what most folks call the ‘ SBL ‘ program only finance two asset categories – equipment and leaseholds. Because of that most firms also require a business credit line, in some cases called an ‘ ABL ‘ line. These revolving facilities are provided by traditional financiers such as banks, and, somewhat unknown to most, commercial finance companies often referred to as ‘asset based lenders ‘.
What information is required in order to assess your firm’s qualifications under most types of financing? It’s not as complex as it might see. Traditional applications often include just financial statements, but can also be augmented by a business plan or cash flow forecast.
In all cases you should be prepared to demonstrate the type of collateral that requires financing (which might include just your sales), mgmt experience, and a solid understanding of how loans or cash flow facilities will be repaid or revolve
So yes, it’s true, not all business financing solutions are equal when it comes to benefits or qualifications. Seek out speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
to determine your exact needs and potential solutions.
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
Office = 905 829 2653
‘ Canadian Business Financing with the intelligent use of experience ‘
7 Park Avenue Financial
Canadian Business Financing