Don’t Be ‘ Out Of Control ‘ When It Comes To Canadian Business Financing

OVERVIEW – Information on the timing and access of commercial loans in Canada. Loan financing and asset monetization depending on knowledge of sources of capital and understanding and being able to assess your company’s present and future financial health

Commercial loans and loan financing
/ asset monetization sometimes seems like an imaginary concept for Canadian business owners and financial managers.

Feeling ‘ out of control ‘ in the area of understanding what finance is required for your business is a dangerous risk. While it is a challenge to understand where your company is going financially the challenge increases exponentially when it comes to assessing the following:

What will your company look like from a financial perspective?

What types of debt can your firm take on and how will it be paid back – certain businesses need more assets than others, and its that ‘ CAPEX’ requirement re owned or financed equipment that is crucial in asset intensive industries. A high amount of debt in any company enhances financial risk and financial distress.

Assets you need in the long term are typically financed through term loans and lease financing- while day to day cash flow/working capital comes out of daily operational performance, Short term financing comes from:

Canadian chartered bank facilities
Non bank asset based lines of credit
Inventory/ AR financing programs (we consistently recommend Confidential Receivable Financing)

Is cash flow sufficient to handle your growth plans
, and is future growth going to be similar to historical growth ( Knowing your sales profit and cash flow potential, as well as your ability to manage working capital and assets gives the owner/manager a strong handle on managing future financial performance)

What is your business really worth?

Naturally proper financial statements and projections go a long way towards being successful in accessing commercial financing. You are also in a position to avoid surprises such as cash crunches and bulges in sales and cash flow needs. Owner/manager financial ability often comes down to managing current assets such as inventory and receivables.

The worst case scenario often occurs when commercial loans and financing are required on an ‘ urgent ‘ basis – at that point it’s knowing your sources of capital, what they cost, how they work, and how they are structured. At this point your ability have a strong handle on your financial health is key.

Many clients we meet often underestimate the time it takes to get proper loan financing in place. That easily leads to that ‘ out of control ‘ feeling we have mentioned. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can take you from ‘ imaginary’ to ‘ reality’ when it comes to loan financing and asset monetization in Canada .

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:


Greg LaBella
7 Park Avenue Financial
Off.   905 829 2653

Cell   905 302 4171


7 Park Avenue Financial
Canadian Business Financing