Your Attention Please ! These Tools & Business Finance Solutions Will Help You With Your Business
OVERVIEW – Information on alternative finance loans in Canada . An asset based loan funding as well as other Canadian business financing options can make or break sales and profit success
Alternative finance loans in Canada come in a variety of different solutions. The ability to use an asset based loan to generate sales and profits is a key part of the benefits that come from funding your business with nontraditional offerings, which are clearly gaining traction everyday in Canada. Let’s dig in.
Asset based loans tend to focus of course on your existing business assets – Two of those assets, receivables and inventory are a constantly moving target. Also coming into play are fixed assets/equipt and occasionally real estate.
What is the main challenge around business growth? We can safely say that a quite correct answer to that question is how you both finance, as well as manage business assets. The most obvious way to generate cash flow and working capital from your business is to directly monetize accounts receivable via a cash flow factoring facility.
Canadian chartered banks of course offer traditional and very desirable operating facilities. But in many cases companies looking for SME COMMERCIAL FINANCE solutions – i.e. not the big boys, simply can’t access some or all of the bank credit they need. The most common ‘ liquid ‘ solution for many firms is receivable financing, aka ‘ factoring ‘. Be forewarned there a number of different types of factoring, some much better than others from various perspectives.
Although asset based financing in its many derivatives ( bridge loans, factoring, financing against equipment equity, inventory advances, etc) may be a more costly method of financing your business we can categorically say, and the text books will back us upon this one, that equity financing is much more expensive! A business either borrows funds, or injects owner equity into the business, and equity capital can be expensive when considering its dilutive nature relative to total ownership.
The reality is that the right amount of debt is in fact a great way to optimize leverage and increase return on investment and return on equity – a great way to measure owner and manager performance .
The key benefit of asset based lending is its ability to generate cash flow for you when you need it. Cash flow and working capital needs ebb and flow daily, weekly, monthly, annually, seasonally… you name it, it is always changing. When you send invoices, build up inventory, buy equipment, or pay suppliers, that is all part of the cash flow conversion cycle in any business.
Your ability to focus in on assets that can generate cash when you need it is a true working capital success scenario. The best thing you can do in preparing to consider a true asset based loan or asset based lending facility is to ensure you can properly demonstrate the ongoing sources and uses of your funds, and in particular the turnover of those funds .
We mentioned A/R financing, known as ‘ factoring ‘ as probably the most popular and most used alternative finance vehicle. But a word of advice – choose the right factoring partner and firm – which is best done via the seeking out of a trusted, credible and experienced asset based lender in Canadian business financing .
In many other forms of business financing receivable advances are limited to formulas and tied to financing performance of your company – that is not the cash with cash flow factoring.
Don’t forget to also check out a number of other often used alternative finance funding solutions – They include:
Equipment Finance (new and used)
Sr&ed tax credit financing
Investigate the benefits of alternative finance loans, which may come in a format that works for your business financing success.
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 = 9053024171
Office = 905 829 2653
Email = firstname.lastname@example.org
‘ 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