OVERVIEW – Information on business financing in Canada. Numerous debt and cash flow solutions are available for your company finance strategy
Business financing in Canada probably can deliver on more options that most owners/financial mgrs might be aware of. The truth is some of these options are ‘ external ‘ and some might be surprisingly ‘ internal ‘. Let’s dig in.
Taking on some business debt, or monetizing/cash flowing assets you already have (receivables/ inventory/ equipment) is the alternative to bringing more equity into your company. Yes, you don’t have to repay equity but to the current ownership is simply a devaluation of what is currently a growing asset – your business! So while equity and new share capital is not selling all of your business, you’re certainly selling a part of it.
That brings us back to external business financing solutions, which of course have a cost and risk to some degree. A preferred solution for many companies is the business revolving line of credit. That comes from one of two sources – A Canadian chartered bank, or alternatively a commercial finance company that is independent and unregulated as the banks are.
Those two types of credit line both give you liquidity and don’t add additional debt to your balance sheet. If managed and accessed properly those credit facilities grow as does your sales and asset base.
How can the owner/financial mgr increase cash flow ‘ internally ‘? The most obvious manner should be to accelerate your receivable collections. By the way, either the bank or commercial finance company will always be more impressed if your A/R is in good shape!
Don’t forget also that you can bring in cash by postponing cash… outflows! How do you do that? Simply by managing payables more effectively, using long term asset acquisition strategies such as equipment leasing to acquire new assets, technology, software, etc.
Inventory is often a large component of many a firms overall asset base – certainly in the case of retailers. They can almost always be included in business credit lines as part of your overall financing strategy, but inventories can also be financed via inventory loans, and also as part of a purchase order financing solution.
Types of term debt and cash flow solutions available to your firm might include:
Revolving credit lines
Govt Small Business Guaranteed Loans
Unsecured cash flow loans
SR ED tax credit financing
To ensure you’re harnessing the true power of business financing seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and long term asset financing needs.
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 FinancialSouth 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.