Spotting The Rare ‘ Best Business Bank’ In Canada

OVERVIEW – Information on commercial business banking in Canada. Can the business owner/manager select the best business bank for his or her needs?

The best business bank in Canada . When it comes to commercial banking in Canada how often do we spot the elusive ‘ best one’. Unfortunately when we talk to many of our clients in the SME sector they seem to let us know that the Canadian banking industry does a great job of ‘living DOWN to their expectations’! Does that have to be the case? We don’t think so , let’s dig in.

The other day we read an article that was not Canadian based, but had the theme that all banks are, or are not the same. That got us to thinking, eh?
Consider this, if you were ‘ the same’ as all your competitors in your industry isn’t that somewhat of a losing business strategy?

When it comes to larger corporations and public companies a certain case can be made that it’s mostly about ‘ pricing’ and ‘ rates’ when it comes to the large amounts of capital that Canadian banks can bring to the table. Naturally the banks won’t agree with that and will say that they bring differentiated value to the table as they do battle in that hyper competitive market of the big guys.

However, clients tell us that when they have found a great banker or banking facility in Canada it’s all about the relationship as much as the services. So what are we saying then… simply that ‘ It’s the banker, not the bank’!

A common concern among business owners is not that they don’t get all the services that come with our large concentrated bricks and mortar banking system in Canada – it’s that they don’t have access to business credit.
Think about the fact that most bank advertisements in Canada focus on ‘ services’… not business lending. Is it just us that notices that?

If the commercial bank you are with has a solid banker that has a good grasp of ‘ risk’ and ‘ business growth’ you clearly are with a winner.

What services are important to the business owner and financial manager in the SME sector? They include business credit lines, business credit cards, foreign exchange services, and term loans. When it comes to those term loans not all businesses understand that every chartered bank in Canada can facilitate government guaranteed business loans under the SBL/CSBF program. So they can facilitate those loans (maximum 350k) for you, but do they?

Our experience tells us that every bank runs the program differently, which is a cause of great confusion for our clients. Knowing which bank and banker can complete such a loan successfully is worth a million in our mind. Do you agree? We can summarize the traits of a great banker and bank as the following:

Access to business credit

By the way, one of the problems with Canadian business financing is that a large number of business owners and financial managers don’t understand that they have financial alternatives via commercial financing non bank firms.

Those solutions typically are more generous, not available at banks, cost more, but at the same time bring tremendous access to capital.

Those solutions?

Receivable financing
Inventory Financing
Non bank asset based lines of credit
Equipment Leasing
Tax credit monetization – ( SR&ED)
PO/Supply chain financing

Firms offering this type of finance are not as regulated as our banks, are more open to risk based on their financing rates, and often move more nimbly.

So have our banks done a great job of all seeming ‘ the same’. We’ll let our clients decide whether they fit inside the ‘ credit box’ that’s been drawn up by banks in Canada. If they do fit capital is unlimited and low cost. If they don’t fit… there are alternatives!

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your finance and capital and credit 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:

7 Park Avenue Financial = Sale Leaseback Financing


7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 302 4171
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