OVERVIEW – Information on Canadian business financing . Do you have the right game plan for SME Commercial finance needs to grow and operate your company ?
Canadian business financing comes with a game plan requirement. If there’s any good news on that it’s that there’s no discrimination when it comes to being a start up, small business, or large corporate.
Consider it as tough a solution as the ‘ Dilithium ‘ story line on Star Trek (rare Dilithium crystals were rare and needed to be replicated properly and the search was lengthy). The right steps and strategy in finding the right solution is your version of that saga. Let’s dig in.
Larger corporate borrowers do not have the emphasis on personal guarantees and outside collateral that are required of the start up entrepreneur and SME. It’s therefore necessary for the latter to ensure their personal credit situations are in order. The good news here is that while many non traditional financings require proper disclosure in this area less emphasis is placed on this aspect of business credit application, offset by either asset strength or the proven ability to generate cash flow.
Canadian banks focus on term loans and revolving lines of credit. Low cost, plentiful, they come with the requirements one would associate with bank funding – profits, cash flow, clean financials, secondary sources of collateral. ‘Unsecured debt ‘ is available, but comes with requirements of high net worth and demonstrable cash flow. It’s a fabulous area to waste your time in if you can’t meet those requirements!
Business plans are not always required for many types of business lending
While being critical for start ups, government loans, etc they can be easily replaced with a solid cash flow and revenue forecast – one that accurately reflects timings and inflow and outflow of cash from daily operations. The ultimate irony in one aspect of Canadian business finance is that growing too fast is actually a turn off to many conservative lenders as cash needs can’t be accurately identified.
But growing fast and large is in fact desirable when it comes to such finance solutions as Asset Based Lending which focuses on financing all your receivable and inventory requirements generated by hyper growth.
Being turned down by a bank or traditional commercial lender still offers many other alternatives to commercial financing in the SME sector. Those solutions include:
Factoring / Confidential Receivable Financing
Government guaranteed SBL loans
Equipment Leasing/ Sale leaseback/ asset based bridge loans
PO / Contract financing
Asset based revolving lines of credit (the ‘ ABL ‘ solutions)
Revenue/ Royalty Financing
Monetization of SR&ED tax credits (if applicable to firms spending on R&D
In any form of Canadian business finance allow enough time to source and achieve the financing you need, and consider the services of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success to deliver on your Dilithium dilemma!
Author: Stan Prokop – 7 Park Avenue Financial :
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 90 Million $ of financing for Canadian corporations . Info /Contact :
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
Email = firstname.lastname@example.org
7 Park Avenue Financial
Canadian Business Financing