These Right Debt Finance Solutions Strengthen Your Business

OVERVIEW – Information on debt financing solutions in Canada. Business loan needs are discussed via proper assessment of borrowing options.

Debt financing choices can help to both strengthen… or hinder your business. Is there some sort of formula for debt and asset financing? Several tools as well as a basic knowledge of your business finance needs come into play. Let’s dig in.

So when in fact does the business owner/financial manager use ‘ debt ‘ to run and grow the business? The answer? Ensure you understand the mechanics of a debt solution, knowing which bank or non bank lenders offer the financing you need… and ensuring you’ve explored all options, up to and including govt loans.

In the majority of cases as it relates to business financing you require assets and or assets/cash flow to support a debt transaction. The assets that you need to support debt financing are varied – equipment, real estate, inventories and receivables.

Most business owners associate a debt finance business loan with fixed payments and term. When it comes to acquiring specific assets they can be secured via either a term loan, or a capital lease – both are forms of debt finance. The essence of those transactions is very clear:

An interest rate
A fixed term
A Monthly payment
Securitizing the collateral in question

Various forms of debt finance current assets such as receivables, inventories, and purchase orders. These include:

A/R Financing / Invoice Discounting/Factoring/ Confidential Receivables Finance

Inventory lines of credit

Refundable Tax Credit Financing (SR&ED Claims)

Bank and non bank business revolving credit lines

3 rather ‘ tricky’ issues will almost always arise and need to be considered when entering into various forms of debt financing. Those issues are ‘ personal guarantees ‘, covenants, and dealing with other secured creditors.

In the SME COMMERCIAL FINANCE sector almost all transactions tend to be supported by some level of personal guarantees from owners. Those business owners that enjoy bank financing or other forms of senior secured lending must be prepared to deal with the priority positions of other creditors when it comes to financing assets. Debt lenders, with the exception of equipment lessors will also typically impose ‘ ratios and covenants ‘around your overall financial performance.

The good news around achieving the right business loan via debt financing is that there have never been more choices and alternatives available. Lenders include of course Canadian banks, but also commercial finance firms, asset based lenders, equipment lessors, bridge loan lenders, and online ‘ niche ‘ providers.

If you’re focused on running / growing your company with the right amount of debt financing for now and the future 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 ensuring you’ve got the right formula down for your borrowing needs.

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 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

Direct Line
= 416 319 5769

= 905 829 2653

Email =

‘ Canadian Business Financing With The Intelligent Use Of Experience ‘

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.

Stan Prokop

7 Park Avenue Financial
Canadian Business Financing