OVERVIEW – Information on financing sales revenue challenges for Canadian companies. Business loans and asset finance strategies allow you to ‘ do more’.
Financing sales growth is ‘ time sensitive ‘ if only for the reason that the majority of business owners/mgrs want to do that now – not at some point down the road. What type of business loans and asset monetizing strategies work best when your focus is ‘ growth – faster the better!’ Right or wrong very slow or nonexistent growth often has companies stagnating. The fix? Let’s dig in.
The ability to finance revenue growth is in truth a two edged sword. That’s also where business financing challenges come in. And the options you have basically come down to three choices –
New owner equity – usually difficult, costly, and undesirable
Taking on Debt – has to be the right debt
Monetizing your assets – a preferred strategy if done properly
Larger more sophisticated companies have already figured out the magic formula. They call that ‘ sustainable growth models ‘ and are constantly looking for the right amount of leverage they can take on. Those formulas measure profits, how assets are turned over, and what amount of business debt won’t topple the firm. Those larger companies also want to take out cash regularly in the form of paying out to owners or shareholders.
Those same tools are also available of course to businesses seeking SME COMMERCIAL FINANCE options. These smaller firms toil daily in the real world to grow sales, stay in business, and pay bills. They are more often than not also looking for outside financing to manage those 3 challenges.
Clients we meet searching for sales financing strategies come down basically into two categories – ‘ bankable’… or ‘ unbankable’.Which one is your firm? If your firm is bankable it’s critical you can demonstrate profits, acceptable debt rations, outside collateral and ‘reasonable’ high growth.
Thousands of firms in the small/ medium sector of Canada’s economy find themselves ‘ unbankable’ to the extent they have no bank financing, or limited. Many owners/managers feel that the big corporations seem to be favorited. Top experts in one study said that 1/3 of all SME businesses don’t have the financing they need – 65% of owners/mgrs saying financing new sales is ‘ difficult’.
The solution? More often than not its ‘ alternative lending’ – a broad category of the new Canadian business financing landscape that covers many niche players offering unique forms of financing.
Those financing solutions? They include:
A/R financing credit lines
Asset based non bank full credit lines (sales growth generates receivables and inventories which can be easily financed)
SR&ED tax credit financing
Leaseback loans on existing owned assets
Purchase Order Financing
Govt guaranteed loan program
The challenge becomes knowing how these solutions work and identifying which one is for your firm.
Because many owners/mgrs in the Canadian business financing marketplace aren’t familiar with all these options it’s often best to seek the services of a trusted, credible and experienced Canadian business financing advisor who can assist you with ‘ engineering ‘ the right solution to finance your firms growth .
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 = CANADIAN SALES FINANCING BUSINESS LOAN EXPERTISE
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 ‘
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