Business Finance Options Aren’t Light Years Away Like You Think

OVERVIEW – Information on various alternative and transitional finance options that simply become loans and, asset monetization that gets your company where it needs to be


Business financing options in Canada . Is your firm having a ‘ good year’ when it comes to loans, business borrowing, asset monetization, etc? Unfortunately many firms can’t make that positive statement when it comes to capital solutions for their company. So, are financing options really seeming to be’ light years’ away? It certainly doesn’t have to be the case, so let’s dig in.

Many forms of financing these days carry the word ‘ alternative ‘ with them – in reality a better description for them is temporary, interim or conditional. That is to say they are mechanisms to either give you a good financing start, or in some cases, get you back to where you want to be.

One such method is receivable financing. When your firm has sales revenues but can’t qualify for traditional commercial bank lines of credit then A/R finance steps up to the plate really quickly… Very typical timelines for a firm to have and carry such a facility tend to be one to two years. More often than not the company regains banking status (lower cost) and then continues to grow and thrive in a positive manner.

One often misunderstood point about AR finance is that it includes only companies that sell real products. However if you firm provides a service, or perhaps software , or even has progress billings related to the delivery of your services your business can still be financed in this manner.

Another major misconception is that when you are working with a commercial receivable financing company they tend to take full control of your A/R function, including billing and collections and client notifications. That certainly DOES NOT work for many of our clients, which is why we propose CONFIDENTIAL A/R FINANCING as a solution. The bottom line on that one? You bill and collect your own receivables and maintain full control of the client interaction.

One other form of solid financing solution that’s often ‘ interim’ in nature is the ABL loan. It is a comprehensive business line of credit that combines your asset of receivables , inventory, equipment, and real estate ( the latter if applicable) into one business credit line that revolves on a daily basis as your borrowing needs dictate relative to sales and collections going up and down, as they do in any business.

Companies often need new assets when it comes to growing or maintaining their competitive posture. Enter equipment financing, allowing you to finance assets. Although everything from a new photo copier or a laptop up grade for your employees can be lease financed the solution makes most sense when it comes to larger ticket items. That is a proven fact – using our friends in the U.S. as an example over 85% of larger ticket items in business are in fact acquired through a lease financing solution.

One of the most popular methods in the past of acquiring assets under a lease strategy was using the ‘ operating lease’. This financial ‘ trick’ if we could call it that , allowed you to move asset debt off the balance sheet … the arrangement being that you were ‘ using ‘ the asset, , not ‘ owning ‘ it with the debt that comes with that type of transaction. Over the years bankers, analysts, and investors in companies have more or less figured out that it’s still a debt though, they just have to dig harder in the financials to figure it out!

Although operating leases ‘ seem’ less in vogue today they still make solid sense when it comes to technology solutions for computer hardware, software, telecom equipment, etc.

There a many reasons why you might be looking for a transitional finance solution. They might include:

Meteoric growth (typically not understood by banks)
Cash flow and debt ratios that is temporarily out of whack
Repayment required to investors/partners
CRA issues that need to be resolved ( asap!)


Seek out and speak to a trusted, credible and experienced Canadian business financing advisor, who will show you the financing you need that isn’t in fact ‘ light years ‘ away, it’s here today with interim solutions that make sense.

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
Phone = 905 302 4171
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7 Park Avenue Financial
Canadian Business Financing