Question : What Are My Company’s Options For When Traditional Financing can’t be accessed ?
OVERVIEW – Information on alternative financing business loans in Canada. Working capital and cash flow solutions work best when you’ve considered all your options and picked the right ones!
Business Loans in Canada come from ‘ traditional ‘ or alternative financing sources. Key point? You’ve got cash flow solutions from a variety of funding sources, and as in the case of our ‘ Jeopardy ‘ type question, working capital and cash flow loans exist in more abundance than ever. Let’s dig in.
Historically business owners and financial managers with SME COMMERCIAL FINANCE needs worked through traditional channels, almost always being ‘ the bank ‘. Competition and efficiency in the Canadian lending markets have brought a number of new capital solutions to your business – the challenge knows which one is right for your company, and how does one access capital in this manner.
The golden solution in the past has been ‘unsecured bank lines of credit ‘ with a focus on companies that have proven cash flow, great balance sheets, and good history for company and owners. The problem – thousands of firms, maybe yours????? can’t meet all those requirements, as logical as they might seem (if you’re a banker).
Numerous alternative cash flow sources have grown steadily in Canada – one of the fastest growing is in the area of receivables finance, the ability to use your sales as collateral, via your business A/R is the appeal. Some great solutions are derived from this method of financing – as an example historically your clients had to be notified of this whole process and financing. Not so fast though! Utilizing Confidential Receivable Finance allows you to generate immediate cash flow from sales revenues, while giving you the option to bill and collect with no notification to other parties.
When it comes to acquiring assets for your company (equipment, technology, vehicles, software, etc) Equipment leasing is a bit unique in that it embraces both traditional and alternative finance needs. Almost any asset can be financing with a considerable amount of flexibility when it comes to monthly payments, amortizations, pre payment, down payment, etc.
We’re often asked by clients why we are so bullish on alternative financing solutions. For a starter don’t get us wrong – Bank financing in Canada is low cost, has a lot of flexibility, and provides virtually unlimited access to capital. But reality sets in when many business folks come to the realization that banks prefer ‘ upstream ‘ – namely larger deals with high quality credit companies. Top experts tell us that one recent survey indicated over 40% of firms in the small to medium enterprise sector in Canada don’t fully qualify for bank financing.
Solutions in alternative financing exist for:
P O financing
Tax Credit Financing (sr&Ed / film and TV)
Leasehold Improvements Financing
Condominium Corp Finance Loans
Management buy outs / acquisitions
Non bank Asset based business lines of credit
Bridge loans against real estate and equipment
Working capital short term loans
In summary, our jeopardy contestant seems to gotten it right – you have finance alternatives. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with business loans and working capital solutions that make sense for your company and industry.
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 =905 302 4171
Office = 905 829 2653
Email = email@example.com
‘ 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