OVERVIEW – Information on financing businesses in Canada.
What type and amount of business loan works for your company, and is a loan the real solution to financial success ?
Financing businesses in Canada has owners/mgr’s conjuring up visions of ‘tapping the motherlode ‘ for their operating and growth needs. But what type of business loan works for your business, and when it comes to loans or monetizing your assets you might be surprised as to how much, or little! financing you require. Let’s dig in.
When it comes to growing a company its probably natural instinct that owners/entrepreneurs think of relating to the film ‘ Fast and Furious ‘. That type of mentality though comes with unreasonable expectations of financial success. Larger corporations actually use a formula called ‘ sustainable growth rate ‘ which allows them to calculate, and them manage how much they can grow without taking on more debt.
Whether your firm actually calculates that formula, or simply spends the proper time understanding how you can properly grow your business and take on types of financing that make sense is the measure of good planning.
Other key considerations you need to make revolve around understanding how fast you want to grow and to focus on making a profit as much as hyper -growth. Debt that you take on must relate to reasonable profit expectations. Additionally, many business folks in the SME Commercial finance expectation area simply don’t understand their financing options.
Options such as the Govt business loan or utilizing equipment financing can help you grow a business, when utilized properly. Another good example of prudent business financial thinking might be to utilize PO financing as an alternative to taking on other forms of debt when it comes to taking on large orders/contracts.
Start ups and early stage revenue firms comes with a heavy measure of financial risk and limited options for finance The ability at this time to produce proper financials and cash flow projections is key .
Any term lender or asset monetization lender will always focus on a handful of key issues relating to providing your business with financing. They include a focus and analysis of profits, cash flow, owner credit history, and any additional collateral you can bring to the table. By the way, this is not the time to have any CRA arrears, as that’s a highly recommended way to be declined for many forms of financing.
While Canadian banks play a key role in financing larger businesses and public companies in Canada the consensus, right or wrong, is that they can’t satisfy all the needs of the SME sector in Canada. There is very little risk of new Canadian banks entering the market! That’s where commercial finance solutions from non banks make sense and are worth looking into. They include:
Asset based business credit lines
SR&ED finance (applicable to those firms investing in R&D)
Purchase order financing
If you’re looking to improve your financial chance of borrowing, and borrowing properly seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you tap the motherlode… properly… and for the right amount!
7 Park Avenue Financial :
http://www.7parkavenuefinancial.com Business 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 :
7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS LOAN EXPERTISE
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
‘ 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.