CSI Business Financing .
Solving The Great Canadian Capital Mystery
OVERVIEW – Information on business financing solutions when it comes to commercial lending needs in Canada . What game plan must be in place to ensure optimal access to business finance
Business financing in Canada must often seem like a ‘ CSI ‘ like capital mystery to the Canadian business owner and financial manager. If he or she is on the right track they can almost be looked upon as ‘ stalkers ‘ when it comes to searching for the (right) business capital to financing their growing businesses. And it sure feels sometimes that the whole financing process feels like a ‘ crime scene ‘ of sorts . Let’s dig in!
Planning business finance strategies allows your firm to stay ahead of the game. And your ability to put the right strategy in place will always allow you to bargain with strength when it comes to financing your company.
One question business owner/mgr’s face is the issue of getting financing with their own internal resources and expertise, or to seek the in put of an external financial advisor. That role can be filled by your accountant, lawyer, of a business financing advisor with a track record of success and one with whom you are comfortable with.
A suitable amount of planning has to be in place- simple understanding where your firm’s balance sheet is at today, and where it needs to be when it comes to planned growth.
One part of the whole planning process that can more easily be defined is your need to plan for equipment asset needs. Here the cost of these assets, their useful life, and the cash flow implications can all be addressed by EQUIPMENT FINANCE / LEASE solutions. Whether it’s a 5k copier, or a million dollar production asset for the shop floor it’s all about achieving the right lease finance solution.
While a formal business plan and cash flow forecast isn’t needed when it comes to ‘ stalking’ those financing options we can say that it sure helps. A proper plan or cash flow will allow you to clearly understand what funding you will need, and when.
There are probably about 15 quickly identifiable sources of financing for your firm. They boil down to 3 simple categories – debt, equity, or asset monetization. Looking for a ‘ shopping list’ for these financings?
Here they are:
PO / Contract financing
Asset based bridge loans
Commercial bank lines of credit
Royalty finance arrangements
Working capital term loans
Government SBL loans
Subordinated debt/cash flow/mezzanine type financing
And the $ 64,000.00 question?
Which one… or ones are right for your firm? That answer fundamentally comes down to two issues – your capital structure and your overall credit worthiness. If there is any good news in Canadian business financing its that your firm can be a start up, high growth, mature and doing well, or in bankruptcy or receivership proceedings – the bottom line ? .. There’s still a financing option for your firm.
A good way to prepare for that ‘ stalking’ process we’ve talked about is to simple understand what stage of business life your own firm is in – as per above, and ensure you focus in on the financing alternatives that are REALISTICALLY available for your business. It’s simple addressing the cash issue in the context of where your company is in its life cycle.
Is there a perfect financing strategy available for your firm? Sorry Virginia, but the truth is that some work better than others, and some cost less… or more than others. If you want to address what commercial lending options are available for your firm consider seeking and speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you meeting the capital solutions that make sense for your firm, right here and right now.
Author: Stan Prokop – founder of 7 Park Avenue Financial
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years – has completed in excess of $90 Million in financing for Canadian corporations . Core competancies 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 = Canadian Business Financing & Commercial Lending Options
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