Waiting For Your Ship To Come In On Business Loans?Business Loans In Canada

OVERVIEW – Information on business loans in Canada. Bank loan or alternative finance solutions must be accessed for the right reason and in the right manner.

Business loans and the value they provide often have business owners/mgrs on a journey of what we’re calling ‘ happy / sad ‘. The ability to successfully navigate a bank loan or an alternative finance loan from a commercial lender will often define how successful and fast your business will grow/profit. So… still waiting for your ‘ ship to come in ‘ on business financing needs? Let’s dig in.

Whether you’re a mature business with growth needs or in startup mode there will always be a certain need for capital. Even cash businesses such as retailers have both inventory and operating capital needs. The question re: financing always becomes: How much, when, and from whom?

In some cases business loans are needed simply for… buying a business! In a vast majority of other cases it’s to acquire specific assets to run the business – those needs might be technology such as computers, or fixed assets for the shop floor, as well as rolling stock transportation needs.

Business loans, i.e. Term loans with fixed terms and rates and amortizations do not really solve the day to day ‘ operating ‘ needs of the business. That’s of course the cash required to pay staff, rent, insurance, taxes, and acquire inventory/services. Those needs are best served by bank credit lines, or, alternatively, an asset based business line of credit – commonly known by professionals as an ‘ ABL ‘.

Business loans come in a variety of manners; we can correctly say that often a ‘ mix and match’ solution is required – as term loans can be for assets, leasehold improvements, etc.

A loan is NOT a lease. In many cases it might make sense for the business owner/financial manager to use EQUIPMENT LEASE FINANCING to acquire assets. There are a variety of reasons to consider the ‘ lease vs. loan’ option and often it’s valuable to sit down with your accountant, or in some cases your banker or business financing advisor to discuss those needs. It’s helpful to perform , formally , or otherwise, what is known as a ‘ lease vs. buy ‘ analysis to determine the best financing.

One type of business loan used by many early stage or smaller firms is the Govt of Canada Guaranteed Small Business Loan. Limits have been raised and the rates, terms and structures are very competitive when benchmarked against traditional financing. The loan only covers financing for three categories – equipment, leasehold improvements, and real estate. This is NOT a cash or working capital loan.

Canada’s crown bank corporation also offers working capital term loans which can be used for cash flow needs and working capital purposes.

Business loans in Canada, when it comes to SME COMMERCIAL FINANCE needs will almost always be secured by assets as well as the guarantee of the owner / owners.

If you’re looking for help in ‘ navigating’ commercial business loans that make sense 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 in your bank loan or alternative finance needs.

Stan Prokop

7 Park Avenue Financial : http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 – Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :


7 Park Avenue Financial

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

Office = 905 829 2653


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