Experiencing That All Talk And No Action Feeling In Business Financing Needs?business finance sources in canada

OVERVIEW – Information on how Canadian business owners can address the need for financial solutions via loan and funding needs. Business finance sources have evolved into two channels, traditional and alternative . Which one makes sense for your firm ?

Business finance sources in Canada , when it comes to various types of loans and funding can easily leave owners/financial managers with that feeling of a ‘ lot of talk and no action’ relative to their particular situation . Rather than view this as a ‘ tragedy’ business finance sources in canadain the making isn’t it good to know that currently choices for financing your business have never been better, and there are some solid reasons why! Let’s dig in.

A recent (U.S.) stat indicated that banks are currently funding 2 in 5 requests for business credit as it pertains to the small and medium size lending space. Suffice to say that many non bank lenders and commercial finance companies and lease companies are approving many more transactions as a percentage of applications than that.

Bank credit of course is the least expensive and most flexible for those firms that qualify. That, coupled with the strength and dominance of the Canadian banking space makes it a great place to borrow for qualified applicants that can demonstrate good balance sheets, profits, and cash flow. There’s no question that the bank ‘ cash flow tap ‘ is on these days to qualified borrowers. Challenges here include finding the right banker and ensuring your firms’ company/industry needs are understood.

Our firm has observed on many an occasion that many borrowers stay with their banks and low rates even at the cost of not having all the capital they need simply because of the higher cost of alternative business credit.

These exists though a large gap in the number of business borrowers to need an ‘ alternative market ‘ when it comes to borrowing needs. That has given rise to a very robust non bank industry that typically provides for higher borrowing costs but provides greater access to capital. Those firms provide financing in areas such as:

Receivable finance

Inventory Financing

Equipment financing/leasebacks/asset based bridge loans

PO/Contract/Royalty type finance

Business credit lines based on business assets – ‘ ABL’

Refundable tax credit financing

Franchise loans

Unsecured cash flow/mezzanine loans

Also, we often meet firms , either start up, or established already that are unaware of the Govt Guaranteed Small business loan, which provides solid financing terms and structures for asset purchases ( new and used ) as well as leasehold improvements .

These solutions are available everyday and provide millions everyday in liquidity access to Canadian borrowers needing capital.

Business owners/financial managers can do a tremendous amt before borrowing heavily from either traditional or alternative lenders. Staying focused on business planning, cash flow mgmt, current asset turnover ( a/r and inventory ), as well as prudently managing payables all can reduce the amount of short term borrowing you need . The latter, i.e. managing vendors is a tricky slope as it requires that key relationships be maintained with suppliers that are critical to your business.

All the finance solutions we have mentioned are typically shorter term in nature – you will notice they match ‘assets ‘ to short term cash and loan solutions. That’s a winning strategy.
If you want to change that ‘ all talk / no action ‘ feeling on Canadian business financing needs seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in ‘ tragedy free’ financing solutions that makes sense for you needs today and in the future .

Author Stan Prokop
7 Park Avenue Financial :
http://www.7parkavenuefinancial.combusiness finance sources in canadaBusiness financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 – Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :


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Oakville, Ontario
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Canadian Business Financing