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Sources of business financing in Canada. It's no wonder thousands of Canadian firms, pretty well every day; feel they are in an eternal traffic jam with no green light in sight. Let's examine some of the main funding options in Canadian finance for raising capital via loans and other instruments, predominantly monetization of assets. Running out of funds is no picnic. It's of course the major reason that a company either declines or even disappears. They become another ' tombstone ' in Canadian business. Not generating profits, or cash flow over a period of time ultimately leads to business demise - again... no secret there! So who are the saviors... in effect those sources of business financing in Canada ?They come from a wide spectrum , including by the way your suppliers, who can play a key role in your success as they extend credit to your firm on terms . Other key sources are Canadian chartered banks, asset based lenders, (they are kind of the new kid on the block), factoring firms (aka ' receivable finance ') and equipment leasing companies. Often many sports analogies lend themselves to business - we don't know why, they just do. So keeping those sources of business finances ' on side' often becomes the goal of every owner and business manager. If your firm's financial position weakens then you in effect are abandoned by the assistance you need most, often leading to a financial crisis of some sorts. How businesses get into short term trouble is again seemingly quite obvious. Suppliers react to potential problems by holding shipments or shortening payment terms, even the ultimate short payment term - C.O.D.! Other creditors tend to pile on when word spreads, or credit reports indicate you firm is trending downward. In some cases it's absolutely not the fault of management - the industry could be in a temporary decline. Replacing financing is difficult in the best of times; it's really difficult for a firm that has financial challenges Many sources of business financing are not afraid to step up to the table if your firm is temporarily challenged - they include factoring firms, asset based lenders, or financiers of tax credits. Equipment lessors and commercial asset loan firms are equally up for generating new cash flow by engineering a sale leaseback of assets, of simply approving your firm for much needed new equipment. Canadian business should never be afraid source new asset financing in troubled times - however they should expect that transactions will be structured, perhaps at higher rates, shorter terms, or the need for some additional external collateral. Nirvana in Canadian business, when it comes to funding loans or raising working capital is often Canadian chartered bank financing. That's certainly the perception by many clients, as these types of facilities are quite inexpensive (even more so in today's low rate environment) are somewhat flexible. The reality though is that most challenged, start up, or struggling businesses cannot expect to achieve that bank credit Nirvana in Canada that they dream about. Whether your firm is new, struggling, pre-revenue, or facing a temporary financing challenge never forget that sources of capital do exist. As we have mentioned they included asset based lines of credit, tax credit financing, receivable finance, supply chain financing, and equipment leases and leaseback. Get out of that traffic jam by speaking to a trusted, credible and experienced Canadian business financing advisor on raising funding for your firm today. Stan Prokop - founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of 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 : http://www.7parkavenuefinancial.com/sources_business_financing_raising_funding_loans.html
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