OVERVIEW – Information on financing business expansion for Canadian business owners/mgrs. Growth finance comes with numerous options and it is important to understand benefits and implications.
Financing business expansion in Canada doesn’t necessarily have to seem a remote reality when it comes to growth finance options available to the Canadian business owner/financial mgr. In fact, having worked with hundreds of clients over the years we’re quite sure that journey for proper business finance solutions may well seek like a trip to ‘Dismaland’.
Dismaland? Check it out. For those not familiar it’s somewhat of a perverse real world play on Disney’s famous theme park, only with a sinister note. But we digress, so let’s dig in.
When your firm is at the stage where you wish to expand, especially when it comes to SME COMMERCIAL FINANCE options (small to medium sized enterprises in Canada) it might seem not that obvious where capital will come from.
Business owners/financial managers have, right or wrong, focused on ‘ banks’ and ‘venture capital/angel investors’ in many cases. Suffice to say that there are numerous options, (including some ‘ internal ‘ ones) that will allow you to handle new orders, acquire a competitor, or get your business quickly out of the gate if you’re a start up. Some may be willing to give up ownership equity via a partner or silent partner arrangement.
Bank credit lines are a good example of financing your expansion plans. If your company qualifies (established, profitable, collateral worthy, etc) it’s a solid option. In fact we just saw a TV commercial saying banks want your business.
The alternative to a bank credit line facility is the ‘ABL’. It’s an ‘ asset based’ line of credit that combines your receivables, inventory and equipment into one borrowing base you draw from daily… only as needed ‘
Those other financing options? It boils down to assessing internally when and why you need the funding. Those options, when it isn’t from Canadian chartered banks are satisfied by commercial lenders who offer a variety of growth options.
For those firms that have built an asset based business the SALE LEASEBACK option is a solid growth capital tool. You still keep and use the assets, and acquire them back over a lease to own strategy – thereby freeing up cash through that process. Typically an appraisal will be required.
The bottom line? Focus on whether you’re prepared to take on ‘debt’… or give up ‘ equity ‘. And by the way, growth can also be generated internally simply by pricing your product and services properly with good margins, and ensuring asset turnover in A/R and inventories is optimal.
A trip to ‘ DISMALAND’ is not a requirement when you want to grow your business. 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 ensuring chances for financing business expansion are available.
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 EXPANSION FINANCING 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 AUTHORStan 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.
7 Park Avenue Financial
Canadian Business Financing