OVERVIEW – Information on business finance solutions in Canada . Commercial loan financing comes with some prerequisites . Understanding various loan and asset monetization options for the Canadian business owners
Commercial loan financing in Canada is all about the right solution as well as timing for business finance needs. Top experts tell us (and business owners know it intuitively) that access to capital is a major issue for firms in the SME (small to medium enterprise sector). Are their some ‘ secrets’ to improving success in your business finance needs? We think there are. It’s all about knowing some of the basic rules. Let’s dig in.
1. Personal credit history – Commercial lenders and banks place a fair bit of emphasis on the owner’s personal financial profile. The essence of this revolves around the perception that you will run your business finances in a similar manner to how you run your personal finances. While personal credit scores will never be the only reason you are declined for financing it’s certainly a factor and gets part of the vote
2. Collateral – Many forms of financing involve collateral, both within the business and outside the business. Knowing and being able to negotiate the true value of your collateral is a key component of business financing. In certain cases it either makes sense, or will be required, to have collateral properly valued and appraised. That important for both the borrower and the lender
3. Cash flow generation – Banks in particular, but in fact all lenders place a certain amount of emphasis on cash flow if only for the reason is that it’s what pays back loans! Successful businesses can properly demonstrate their past, present and future cash flows as they relate to growth, debt repayment, etc.
4. Understanding your Options – Many business owners feel somewhat ‘ doomed’ when raising funds for their business if only for the reason they don’t understand their options. Here it’s important to get a handle on whether you’re able to take on debt on your balance sheet or if the focus is on monetizing assets you already own. In other cases you’re looking for working capital solutions such as business lines of credit that monetize A/R and inventory.
5. Sourcing the right lenders – Confusion can reign supreme for business owners/managers if only for the reason that there seems to be a multitude of financing sources. These include large institutions such as banks and insurance companies, as well as commercial finance firms that are either Canadian or U.S. owned. In some cases it makes sense to source local financing if the needs of your business demand a closer relationship with the lender.
6. Identifying the need – Debt / Cash Flow / Asset Monetization – The search for business capital involves understanding the true need of your business. Those needs typically revolve around survival, growth, turnaround, merger and acquisitions, or management buy outs.
7. Government sources of funding – While some business owners write off the govt in their minds as a source of financing two great programs exist. They are the Govt Guaranteed Small Business Loan and Canada’s SR&ED program. It makes great sense to check out the benefits of these two programs as they relate to your financing needs.
8. Alternative vs. Traditional Financing – In recent times a number of alternative non banks sources have risen to the top of the pile in business finance solutions. While they (not always) more often than not have a higher cost they can provide all the capital your business might need.
While the word ‘ No’ will crop up often in your business finance search your chances of success increase greatly in understanding our 8 tips on your quest for business finance success. 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 your commercial loan financing needs.
7 Park Avenue Financial :
http://www.7parkavenuefinancial.comBusiness 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
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
‘ Canadian Business Financing With The Intelligent Use Of Experience ‘
7 PARK AVENUE FINANCIAL = CANADIAN COMMERCIAL LOAN FINANCING AND BUSINESS FINANCE EXPERTISE
7 Park Avenue Financial
Canadian Business Financing