OVERVIEW – Information on SME FINANCE solutions and commercial financing options in the small to medium enterprise sectors of Canadian business. What loans and asset monetization strategies make sense
Commercial financing options in the SME Finance area are constant challenges to business owners and financial managers. The ‘ SMALL TO MEDIUM ENTERPRISE area of the Canadian business is often touted as driving the economy – why then are loans and asset financing strategies often hard to come by – or are they ? Let’s dig in.
Business owners and financial managers need to adapt to the changing face of business finance in Canada. Success in business comes from many aspects of management. and financing is certainly one of them.
You only need to talk to any one in this sector to realize they often feel they are highly UN – supported by Canadian banks. That’s somewhat ironic of course given the stellar international reputation of our banking system. In fact top experts tell us that the ‘mortality rate ‘ in the SME sector is often higher and places all the challenges of business on a single owner or partnership.
So are those financing options in fact ‘ limited ‘. Not necessarily. One or any number of the following options can help propel a business to growth or profits. They include – but are not limited to:
A/R Financing / Confidential Receivable Financing
Government Small business loans – Guaranteed by Ottawa
Working Capital Term Loans
Sale Leaseback strategies
Non bank asset based lending
Unsecured bank loans
Royalty /Revenue strategies
Asset based non bank lines of business credit
PO / Contract Finance
Tax Credit Financing – (SR&ED / MEDIA tax credits)
SME owners don’t always necessarily have the same goals as larger corporations – many are owner income driven, and issues such as productivity or asset growth aren’t necessarily top of mind.
SME’s typically have a ‘ life cycle ‘ associated with them – i.e. product /service development, early growth , hyper growth, mature, etc. Understanding where your company or business is in that cycle allows the business owner, when he or she has the right expertise, to match financing to challenges.
Choosing the right type of financing is often part of the ‘ risk ‘ decision. The amount of personal control via taking on debt, personal guarantees, or having to provide outside collateral are all key factors that need to be tabled and discussed. While a large corporation might consider growth with significant risk the an SME owner may simply not want to take on that additional worry
If you’re looking to ‘ reshape ‘ your firms financing and need that extra ‘ bench strength’ seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in matching financing , risk , and success to your business goals.
Author: Stan Prokop – founder of 7 Park Avenue Financial
Originating business financing for Canadian companies, specializing in working capital, cash flow, and asset based financing. In business 10 years – has completed in excess of $90 Million of financing for Canadian corporations. Core competencies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details:
7 Park Avenue Financial
Off. 905 829 2653
Cell 905 302 4171
7 Park Avenue Financial
Canadian Business Financing