Here’s The Myth Vs. Reality Of Financing Small & Medium Sized Businesses In CanadaBusiness Finance

OVERVIEW – Information of business finance options in Canada for the SME segment . Commercial lenders and banks offer a variety of solutions – which solutions does your company need and how do you qualify.

Business finance in Canada, when it comes to the SME ( small to medium enterprise) market leaves business owners / managers wondering how much they need to know or are missing when it comes to commercial lenders and the bank lending landscape. Here’s a good shot of myth vs. reality. Let’s dig in.

Confusion reigns supreme when it comes to Canadian business facing the challenges of financing their businesses. The two step process of understanding their options and then clearing the hurdles needed for approval sometimes feels like a full time job.

In fact top experts tell us that a majority of businesses don’t fully understand bank offerings, they also most certainly from our experience don’t understand alternate options, and finally misunderstanding exists around qualification for business finance.

One myth that exists out there is that little or no help is available from the Govt, or when it is the word ‘ cumbersome’ comes to mind. The reality? In fact two very solid govt programs deliver almost 10 Billions dollars of financing every year to the SME sector.

Those programs? They are the Government Guaranteed Small Loan Program, as well as the SR&ED program which refunds a substantial portion of any R&D your company spends. Conservative estimates are that over 11,000 businesses just like yours take advantage of these programs.

Top of mind for any business owner/manager when it comes to financing is the fact that the only solution is ‘ THE BANK ‘. They are clearly one source, providing inexpensive capital for a variety of term loan and working capital needs.

That brings us to the point of alternate financing sources. Frankly there have never been more alternative finance solutions for your business. These solutions either provide new capital, or monetize your current and future assets, providing cash flow and working capital solutions.

They include:

A/R Financing/ Factoring/ Confidential Receivable Financing

Inventory Finance

SR&ED Tax Credit Bridge Loans

Equipment Finance/ Sale Leasebacks

Non bank asset based lines of revolving credit in Canada

Franchise Loans

Purchase Order Financing

Sales/Royalty finance

Alternate finance solutions are often more expensive, but will provide all the capital you need.

It’s also critical to understand whether you’re looking for debt, which must be repaid, or whether you simply need to monetize assets and sales. It’s all about repayment terms, collateral, and the amount of a personal guarantee that might be required.

In summary, it’s important to assess your needs and to understand where you qualify for financing. And as we’ve shown commercial lenders, coupled with Canadian banks offer a variety of options that will make sense for 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 with your financing needs, and help you sift thru that myth vs. reality! You’re now in a position to get educated about your options, understand your needs vs. debt and working capital, and get help in successfully applying. A classic case of knowledge vs. power.

Writer Stan Prokop 7 Park Avenue Financial :

http://www.7parkavenuefinancial.comBusiness Finance
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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCE EXPERTISE

 

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