OVERVIEW – Information on SME commercial finance business financing alternatives in Canada . Are you hearing and understanding proper choices in capital and cash flow choices available?
SME Commercial Finance business financing in Canada comes with its share of challenges. One of those is ‘ Happy Ears ‘. Happy Ears? That’s the name we’re giving to information that business owners/ financial managers gather that portrays certain business finance solutions as having only ‘ pros’, while not hearing the ‘ cons’. What are they looking for? The lowdown! Let’s dig in.
We don’t meet many owners/mgrs that don’t want to grow their business, and the current relatively healthy business cycle has them searching for business loans. That required financing has them facing lending standards and criteria from traditional sources such as ‘ banks ‘, and at the same time often somewhat bewildered by a myriad of new alternatives they read and hear about every day. Which solutions are right? without becoming a victim of happy ears?!
One of the signs of a successful business is the ability to plan financing needs in advance – avoiding the large stress that come with desperation finance needs and cash flow crunches. While assessing some of the newer forms of finance out there we encourage clients to not forget tried and tested stand by solutions that have been around for decades. The reason? They work!
New or upgraded assets are a constant requirement of the majority of businesses, service businesses somewhat of an exception. Equipment financing is all about flexibility and cash flow conservation- and those fixed monthly payments are a great planning tool for future cash outflows as you realize over time the assets you’re acquiring.
Getting paid right away/ to your terms is a constant challenge for almost every business in Canada – large and small. Enter Invoice Financing, allowing you to cash flow your sales as you generate revenues. But talk about a great example of ‘ happy ears ‘! There are so many different types of this method of cash flow finance that owners can easily get locked into a facility that seems great but ultimately doesn’t make sense for their firm. Our recommendation in this area is almost always CONFIDENTIAL RECEIVABLE FINANCING, allowing you to bill and collect your own receivables while achieving all the benefits of invoice finance.
P O / Contract financing is a massively misunderstood solution to sales growth that requires financing that might typically not be available. The simple answer to how it works is that it pays your vendors in advance for products on which you have committed purchase orders.
Business credit lines are the heart of the financing need for most businesses in all industries. Revolving credit is a critical need and both bank or non bank solutions should be assessed properly. Non bank asset based credit lines will often deliver higher levels of financing with easier approval criteria – but come at a higher cost. It’s the ‘ trade off’.
Personal guarantees and outside collateral are always issues that come up in the SME commercial finance sector. Top experts consistently agree that your goal should be to separate your business and personal life when it comes to assets, guarantees, etc. Here the ability to deliver a solid business plan and cash flows will often help de-emphasize the needs for personal guarantees – or at least limit them.
If you’re looking to properly assess business financing alternatives such as:
Business Credit Lines
Refundable Tax Credit Financing
Cash flow loans
with the benefit of assessing all the pros and cons, eliminating those ‘ happy ears ‘… seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you with those needs.
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 BUSINESS FINANCING 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 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