OVERVIEW – Information on finance sources in Canada. Business Financing and loan needs come with a requirement to understand needs and sources of capital that match requirements
Business financing in Canada , executed improperly, has the possibility to go really wrong! So when it comes to finance sources and loan needs it’s critical to have a solid ‘ lay of the land’ to ensure your company is going in the right direction for survival and growth. Let’s dig in.
In Canada there is somewhat of a line down the middle when it comes to the types of capital available – it really comes down to ‘ traditional’, or ‘ alternative. Those seeking alternative solutions demand more flexibility to the alternative of Canadian banks, and credit unions. Those banks of course have low rates, unlimited capital for your business, but tougher qualifying criteria – all for the right reasons of course.
The irony of the business landscape is that those firms needing financing the most are in fact the majority of the economy these days!
While business owners / financial mgrs associate government with our category of ‘ traditional’ finance they often overlook two solid sources of funding in this area – Govt guaranteed business loans , and Canada’s ‘ SR&ED program . Recent limit changes in the Gov’t SBL program make the program very desirable for start ups and earlier stage companies. Additionally SR&ED credits allow firms to recoup in the area of 40% of their R&D activity, and these credits are financeable!
When we talk about things ‘ going wrong ‘ it’s important to note that any early stage companies work the Angel investor/VC angle. The reality is that only the smallest % of firms really qualify for this type of financing, and the majority of those are in the tech/pharma area.
Some stats indicate that over 40% of all firms applying for the financing they need from ‘ traditional’ sources are in fact declined. So then, given the need for capital for that ‘ running/growing’ of the business what then are some alternative options.
The key alternatives include:
A/R non bank financing
Purchase Order/Contract Finance
Cash flow loans – Secured/unsecured
Working Capital Term Loans – 2nd position loans that provide cash for long term working needs
ABL’s – These are non bank business lines of credit that bundle a/r, inventory and equipt into one daily accessible revolving credit facility
To make the right financing decision it’s important to distinguish between debt financing and cash flow finance. When assets are being acquired owners/mgrs need to consider equipment financing or term loans. Funds for this category should typically not come from operating cash flow.
If you’re focused on doing things right and proactively closing on your finance needs seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can help you address our key question ‘ What Could Possibly Go Wrong’!
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 = 416 319 5769
Office = 905 829 2653
Fax = 905 829 2653
Email = email@example.com
‘ 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