Commercial Bank Financing in Canada : Is Your Access To Business Credit Working Hard Or Hardly Working ?!
OVERVIEW – Information on the commercial bank financing offerings in Canada. Business loans and other non bank offerings are profiled regarding benefits and alternatives.
Business loans via commercial bank financing in Canada can often leave business owners / financial mgrs with the sense that something isn’t right. We’re looking at the access to capital via bank solutions, ensuring that business credit ‘ works’ for your firm. Let’s dig in.
Bank finance solutions are of course not the only way for you to fund your business. Other solutions may well achieve the goal – they include:
Asset based loans – Asset based business credit lines
Factoring /AR Financing
Purchase Order/Contract financing
SR&ED Tax Credit Finance
Why does business tend to gravitate towards ‘ the bank ‘ for its financing needs? Two most common answers to that question are cost and flexibility.
When does bank financing not work for your firm? The answer typically is that your firm can’t demonstrate ‘ cash flow ‘ and ‘ collateral’ that are the two main components of the bank credit decision. Your ability to properly demonstrate consistent cash flow is always the focus of the banker.
Because are banks in Canada are both highly regulated, as well as being ‘ public companies ‘ they are scrutinized by both the govt and shareholders on a constant basis. Many business owners/financial mgrs are therefore mistaken when they adopt the mindset that there is a major difference between different banks.
Key point – While there isn’t significant differences in the bank lending mindset there are huge differences in individual bankers relative to their expertise and capability and reputation within the bank. Our point? It’s the banker, not the bank!
One of the greatest challenges a company can face is when the business becomes ‘ off side ‘ on the bank relationship. That ‘ special loan’ or’ problem loan’ status can be a difficult one to overcome if you don’t have the proper advisor in place.
At that point your ‘ collateral’ and ‘ capacity ‘ are not working , and you need to get it working – quickly . While in some cases the bank relationship can be saved that unfortunately is not always the case. That’s the time to consider a ‘ specialty lender.
An interesting aspect of Canadian business finance is that many of the ‘ non bank’ solutions offered by commercial finance firms have been targeted by banks. A majority of the banks now offer some or all of the specialty offerings offered by commercial finance companies. So once again it’s incumbent on the business owner/ financial manager to evaluate the cost, quality of the relationship and expertise, and your ‘ capacity’ to meet bank requirements. The caveat – beware the intense conservatism of the bank as it relates to financial covenants, reliance on back up personal guarantees, etc.
If you feel your business credit needs are ‘ hardly working’ and you want to elevate status to code ‘ working hard ‘ seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can ensure you are making the right financing decisions.
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 :
Info re: Canadian business financing & contact details :
7 PARK AVENUE FINANCIAL = CANADIAN COMMERCIAL BANK FINANCING AND BUSINESS LOAN EXPERTISE
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
Fax = 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