OVERVIEW – Information on business financing in Canada. Whether it’s term loans or a revolving line of credit the choices for owners and financial managers are numerous
Business financing choices for term loans or a line of credit often seem like huge hurdles when it comes to funding accessibility for owners/financial mgrs. They will often lament the lack of choices in cash flow and capital solutions. Our thoughts? In fact you probably have more choices today than you ever did for your cash needs! Let’s dig in.
Is there ever a time when a company doesn’t need funds. Whether it’s acquiring new assets, considering expansion into new markets or products, or simply paying daily operating expenses there’s always a need for financing solutions.
Your timeframe of reference is critical to assessing and acquiring your financing solutions. Typical timeframes are of course ‘ short term’ for daily needs such as a line of credit, or ‘ long term ‘ as it relates to capital assets or investments in R&D. In the long term you might be considering simply refinancing your current business is funded – that perpetual mix of owner equity and debt – and the right combination of those two.
In the middle there are often’ bridge loan’ needs for a variety of circumstances. These solutions can fill the gap that comes from the dynamic changes in your business.
From small business perspective, many firms are in start up or early stages, The Govt of Canada has one of the best programs that thousands of firms utilize every year. This loan is now up to $1,000,000.00 in loan cap, provides a govt guarantee to your bank for 90% of your loan , and comes with great rates and flexibility that even some more traditional forms of financing can’t deliver on , i.e. no penalty pre-payment, longer terms, etc.
As we’ve stated, there is a ‘ new normal ‘ in Canadian business financing. That new normal includes the rise of numerous alternative finance solutions. Those combined with traditional bank financing offer a large slate of funding solutions.
Looking for a simple list of business financing solutions available to your firm? Here they are!
A/R Financing/ Invoice Factoring/ Confidential Receivable Financing
Bank credit lines
Non bank asset based revolving credit lines
Govt Guaranteed Business Loans
Tax Credit Financing (SR&ED / FILM)
P O / Contract Financing
Unsecured cash flow loans/ Mezzanine financing
This broad range of financing solutions allows your firm to grow, hire people, and become key players in their industry.
To implement any financial solution you need to understand where your ‘ financing gaps’ are and which solutions will work when it comes to either taking on debt or simply monetizing your assets to the maximum , while still employing prudent leverage.
Are you aware of all your financing choices? If not seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your loan and line of credit needs.
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 ‘