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Business debt financing and funding for Canadian companies. When other forms of financing such as equity or more esoteric arrangements aren't available the Canadian business owner and financial manager turns to debt funding via a number of different short or long term debt finance strategies. There is sometimes a fair amount of pressure to take on new debt to satisfy production, sales and marketing growth. The question very simply becomes - how much debt can your firm handle, are you aware of the different debt options and which one or ones might be best for your firm? There's a great little analogy about why those lenders you might be looking to borrow from are somewhat cautious on occasion .It's apparently rooted in the fact that when the first caveman made a loan of a spear someone it was never returned, and when it was it was broken . The reality in Canadian business financing, we feel is when both the lender and the borrower have created a solution satisfactory to both. And sometime debt is not always the answer. We find clients gravitating to debt solutions when they start to experience serious fluctuations in cash flow. When that cash flow and working capital is properly managed, or assets are properly monetized you might find yourself thinking less of taking on debt. It's a fundamental discussion point in business that leverage, i.e. taking on debt aggressively can either pay off or put your company out of business. Talk about two different sides to the story! The reality also is of course, that when you take on more debt to grow or fix the company you might find in fact that opposite has occurred and you are feeling somewhat restricted in the flexibility you may have once had in growing your business. When that debt is short term in nature any refinancing becomes a bit more of a challenge. So the challenge is very simple then - take on the right debt for the right reason. Bottom line, rethink your financial structure. Naturally with more debt you do in fact increase your Return on Equity, but at the same time your breakeven point increases because of those financing costs. Debt that is of course structured properly, against solid assets can be a good thing. And if those assets are part of revenue generation even better. Historically in Canada companies have relied on traditional sources of capital, i.e. ' The Bank '. What more and more business owners and managers are doing are exploring newer forms of financing that might include asset based lines of credit, tax credit monetization, receivable financing and securitization, sale leaseback scenarios, interim bridge loans, etc. The bottom line today? Speak to a trusted, credible and experienced Canadian business financing advisor about sources of capital available to your company in good... and tough ... times! 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/business_debt_financing_funding_debt_finance.html
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business debt financing, funding, debt finance,
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