Looking For A SME Commercial Finance Playbook?

OVERVIEW – Information on business financing options in Canada. Funding your business needs is all about ensuring you understand all the alternatives

Business financing options
in Canada require a ‘ crafting’ of your specific needs to your firm and your industry. While all entrepreneurs can be forgiven for thinking their company is special the reality is that many of the needs of any industry are in fact quite similar as they relate to capital needs, cash flow dynamics, etc. Let’s dig in.

How does the Canadian business owner and financial manager ‘ tap into ‘ the right finance options? Ultimately it comes down to 3 sources of long term or operating capitalCanadian chartered banks, the government, or independent commercial finance and leasing companies .

In some cases the financing you undertake will be temporary, other times it will be long term in nature. Temporary financing are very valuable in that they are often more accessible, solve urgent needs, but of course come with a higher borrowing cost. The goal of every owner/ finance manager, particularly in the SME sector is to ensure that over a long period of time you have the operating capital you need… to survive.. and grow.

One positive aspect in government’s role in business is the programs they underwrite for some very ‘ niche ‘ financings. One of these is the SBL – The Government small business loan program. Providing financing up to 350k for firms with less than 5 Million in actual or projected revenue is what this program is all about. And coupled with very generous rates, terms, and loan structures that satisfy even start ups or franchisee borrowers we can heartily recommend that program to any client.

The banks of course are the govt ‘ operating partner’ in the SBL loan program. If we have to state one thing we personally have never liked its how each bank has it’s over version of how they administer the program – trust us that some banks are better than others in this regard.

We’re the last to be fond of heavy govt involvement in business – but we’re the first to have a strong respect for

SR&ED credits for research, as well as the film/TV and animation credits that populate the Transmedia industries in Canada. And the better news is that both of these tax credits can be financed either when filed or in some cases before. Your ability to ‘ cash flow’ the government promise to pay you is… quite frankly… a good thing.

Credit unions in Canada have never been major lenders to Canadian business – that is changing a bit… some seem more interested than others, but their localized approach and limited funding has some challenges for Canadian business borrowers.

What then are some of the other alternatives that can be crafted into providing your firm with all your business financing needs? They include cash advance programs for retailers, asset based non bank lines of credit for revolving credit facilities, and equipment finance firms. All of these tend to be the domain on non bank commercial finance firms.

While non bank solutions are always available, they tend to be more expensive, so the business owner/manager must be prudent around cost and benefits of non bank capital.

We’re talking mostly about debt financing and asset monetization, not equity business funding. So it’s all about ensuring you’re able to match the benefits of any funding with the cost of that capital. While capital might be high because of your firms particular circumstances it can still help you grow revenues and turn profits.

We’re reminded about Warren Buffett’s

great line ‘PRICE IS WHAT YOU PAY, VALUE IS WHAT YOU GET ‘. His bottom line was simple… business financing options might be considered expensive but never let them overtake ultimate value when it comes to choosing business funding, particularly non bank in nature.

If you’re looking for the right ‘ playbook’ or script on proper business funding seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business funding needs.

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