OVERVIEW – Information on business finance solutions in Canada . Working capital and cash flow financing needs will almost always require a backup plan in order to perfect the financing you need to grow your business. Here is why and what solutions are available
Business finance solutions for your company often require a ‘ backup plan’. Why? Simply because when it comes to working capital and cash flow financing needs there is almost never enough. How then does the owner/mgr/entrepreneur perfect those requirements? Let’s dig in.
Similar to consumer debt it should be no secret that there’s good ‘debt’ and ‘ bad ‘ debt. In your company there is only so much equity in the business, and in many cases it’s either impractical or impossible to acquire more debt given that the financing interest can’t be supported. That’s the whole concept of successfully understanding ‘ leverage ‘ – i.e. knowing how much borrowing your company can take on… before failing.
The good news about the ‘ right’ financing solutions for your business is that they allow you to grow sales and profits outside of your current capital base. It’s safe to say that companies that can both grow, and control their growth are the perfect target for all sorts of business finance solutions that make sense.
What are some of those financial solutions? They include:
Bank revolving credit facilities
Non bank asset based lines of credit
Unsecured cash flow loans
Equipment Financing/sale leasebacks
Many different companies require financing that’s most suited to their industry. Capital intensive firms that require large amounts of asset financing are different than service companies who have a small or no asset base.
That whole issue of debt versus equity is also a key part of the whole business banking equation in Canada. Companies that can’t meet the typical debt to equity ratios that banks insist on are forced to consider alternative forms of financing – the good news being that those are more abundant and creative every day.
While our Canadian banks are reluctant to let your debt to equity ratios go the wrong way alternative lenders focus on assets and asset monetization. A good example? That would be the Asset based line of credit, commonly called ‘ ABL’ in the industry. That credit facility takes your inventory, receivables, as well as fixed assets and combines those three asset categories together into one ‘ borrowing base ‘, based on their real values . Almost 99% of the time this type of facility can easily double your current bank credit lines, or provide full cash flow financing when you have no operating loan .
Does your business have a backup plan and clear line of sight on business finance and working capital and cash flow financing solutions? If not consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can help you perfect those arrangements.
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