The Fine Line In Growth Financing For Your Business
Information how owners/financial managers can obtain the right loans and capital for their business. Financing business growth properly determines your growth success
Financing business growth challenges in Canada requires the right type of loans and capital strategies. Does your firm have what it takes? And talk about the fine line of knowing how much debt to take on, how fast your company can grow ( before imploding ) and whether in fact other strategies that don’t require debt can work for your business. Let’s dig in.
Running out of funds in your business will often lead to difference levels of financial distress. Again, that’s our ‘ fine line again, growing, surviving, or failing – the ultimate business tightrope.
Smaller businesses, including most the SME COMMERCIAL firms in Canada are private and have to forget about raising capital and stock publicly. It’s great for large well known and successful companies, and close to impossible for the rest.
While it’s definitely possible to run your business on negative cash flow for a period of time that strategy ultimately ends when you’re at the point of being unable to meet operating expenses and loan/creditor commitments.
5 basic sources of capital exist for your business – some of them internal. They include:
Canadian chartered banks
Asset based lenders
Equipment finance firms
Commercial finance companies providing receivable financing/inventory loans – Their services include factoring, confidential receivable financing, tax credit financing, sale leasebacks, etc
Thinking/Dreaming of growing your business? Cancel that strategy if the patient (your company!) exhibits the following symptoms:
Slow payments/Delayed payments to your suppliers
Negative business credit report items
Poor operating ratios – dso/inventory turns, etc
Negative industry issues
The challenge of growing your business when it comes to proper financing is hard enough in good times when you’re making money; your industry is thriving, etc. That challenge can often border on the seemingly impossible if your overall financial picture isn’t positive
Your overall balance sheet health will often drive what type of financing you need. It is in fact relatively easy to obtain growth financing if your firm has assets and realistic growth possibilities. That’s because asset based loans totally focus on the collateral in your receivables, inventory and equipment.
Asset based loans and lines of credit typically ‘ replenish automatically as your business grows and turns over its assets.
Looking to walk that ‘ fine line’ tightrope in growing your business…properly? 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 financing business growth.
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
Direct Line = 905 302 4171
Office = 905 829 2653
‘ Canadian Business Financing with the intelligent use of experience ‘
ABOUT THE AUTHOR
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.
7 Park Avenue Financial
Canadian Business Financing