YOUR COMPANY IS LOOKING FOR EXPERT FINANCE AND FUNDING HELP!
SOURCES OF FINANCING FOR BUSINESS OWNERS IN CANADA
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Financing a business in Canada. We recently spoke about a BDC Canada CEO survey that we participated in around how Canadian business owners and financial managers felt these days about their ability to access capital for funding their small business in Canada's SME sector of the economy.
That got us to thinking since the survey posed a lot of questions and not that many answers. So it would seem that your 2 cents in questions plus our 2 cents in answers equals a solid 4 cents of Canadian financing solutions. (That would be about 3.5 cents U.S. with the way foreign exchange is working these days!) So let's dig in.
So let's look at some of those answers and questions posed hopefully add a strong sense of hope and solutions around key issues.
2 KEY ISSUES IN CANADIAN BUSINESS FINANCING
Canadian business owners/managers felt the 2 key issues around new financing typically tend to be :
The amount they are able to obtain
The rates and costs that are attached to that financing
At 7 Park Avenue Financial we point out to clients that in the current environment business finance is accessed through traditional and also alternative capital. Each of those has a different cost. So while alternative financing going to be more expensive 99% of the time it's also safe to say that it can deliver on more financing when amounts sought are not available from our banks, insurance companies, business credit unions, etc.
BUSINESS REVOLVING CREDIT LINES
A good example? It's the business revolving line of credit. Chartered banks offer small businesses credit facilities at rates pretty well in the prime rate area these days. So your cost of capital is low - but approval or approved amounts are more difficult to access. So we encourage clients to weigh access to financing, not just the cost solution. Higher financing costs can be offset by increased growth and profits, as well as operating efficiencies.
COLLATERAL FOR LOANS AND FINANCING
Collateral was also a key issue for Canadian business owners. As it is safe to say that all business financing worth its weight is ' SECURED ' by a bank or commercial finance company your ability to negotiate the right collateral will play a key role in overall finance success. In some cases you may wish to use the services of a Canadian business financing advisor who is familiar with the lay of the land and has a reputation among lenders commensurate with your needs.
DEBT OR EQUITY - WHICH IS BETTER?
We were somewhat floored by the following comment in the BDC survey - ' Generally speaking participants in the survey were open to most of the elements that characterize equity financing except when it comes to dilution'. Is it just us but doesn't any sort of new equity dilute ownership?!! We're strong proponents of debt and asset monetization financing that generates capital and cash flow. Chasing family and friends, angel investors and venture capital can be one of the most time-consuming and frustrating challenges a Canadian entrepreneur can face.
BUSINESS FUNDING SOLUTIONS IN CANADA
Are you using any of the following Canadian business finance solutions to generate funding and working capital without equity dilution?
A/R Financing
Inventory Loans
Access to Canadian bank credit
Non bank asset based lines of credit
SR&ED Tax credit financing
Equipment / fixed asset financing
Cash flow loans
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance
Securitization
The government of Canada offers capital funding via the Canada Small Business FInancing Program, offering capital funding for firms marketing their products and services via a flexible term loan with a 1 Million dollar cap.
CONCLUSION
While no firm would ever use all of the above solutions it's safe to say that any number of these could deliver capital and growth opportunities to your firm.
So when you combine 2 cents of Canadian business concerns with our 2 cents of solutions all of a sudden 4 cents (3.5 U.S.) doesn't seem that bad! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your funding needs.
