OVERVIEW – Information on business financing solutions in Canada. Whether its traditional bank loans or alternative finance funding here’s how to consider capital options for your business
Business financing needs in Canada often leaves owners/ financial mgrs with that ‘ not happy ‘ feeling when it comes to loans or alternative finance solutions. And by the way, in today’s competitive environment there are some pretty smart people out there when it comes to running and growing their firms- yet even they are searching for ‘ the fix ‘. Let’s dig in.
When it comes to raising finance needs for your business today’s environment calls for looking far beyond the traditional solutions of the past. More often than not that has meant ‘ the bank ‘ as the sole solution provider of business capital.
But by addressing proper cost of capital versus growth opportunity as well as the ‘ risk ‘ element associated with any form of traditional or nontraditional finance a whole new world of capital providers is out there.
What then is the best way to look at some of those alternatives, and, as importantly, what are they?! It starts by assessing your need, which is usually in one of three categories:
That other can cover various scenarios, one of which might mean a forced exit from your bank relationship – i.e. the dreaded ‘ special loans’ category.
As we have said, understanding how things work, cost, and risk are the key elements of a new financing strategy. That kind of thinking will often determine what’s best for your business.
Looking for some key tips around new sources of business financing and capital? We’ve narrowed it down for you as follows:
Keep an open mind to new solutions available
Consider both traditional and alternative financing solutions
Understand what you need – i.e. new assets, working capital, investment
Focus on potentially a combined solution of different methods of business finance
Ensure you are in a position to present your company properly – i.e. current financial statements, a strong exec summary or business plan, etc
Be prepared to consider ‘ Plan B ‘!
Let’s recap business financing solutions most typically available to your firm – they include:
Bank credit lines/term loans
SR&ED Tax credit bridge loans
Sale leasebacks of owner assets
Non bank business lines of credit
Unsecured cash flow loans
If your firm needs finance ‘ fix ‘ seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you with your loan and cash flow needs
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
‘ Canadian Business Financing with the intelligent use of experience ‘