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Business finance options in Canada. And oh yes, we don't believe in angels! We're not talking about those heavenly ones, just primarily VC's and angel investors. Truth be told we acknowledge and respect them of course, it's just that we cringe when we talk to many clients who focus on these two sources of capital when the reality is that 98% of the funding your firm needs is probably only available from debt financing, and asset monetization for working capital or cash flow. That ' equity capital' search unless for firm simply wastes valuable time – unless you're ready. Many are not! While the sources of funding for the Canadian business owner and financial manager might seem plentiful in the TV commercials or newspaper, the real world tells us that there are a lot of trick obstacles facing the owner /manager looking for financing options. Is there a way to change all that and make ensure that the odds arent so stacked against you. We think there is and it comes down to simply knowing what business finance options are available to you and picking the one ( or ones ) that suits your operational or growth needs, So how do you analyze and choose debt or asset monetization options. Our clients think it has to be a Canadian chartered bank solution. And we're the first to start working on that , provided you have cash flow , collateral, profits, a clean balance sheet, and solid owner personal credit histories. That's tough to achieve these days for many, which still leaves a number of financing solutions on the table. They include: Asset based lending Receivable /Invoice Cash Financing Government guaranteed SBL loans Equipment finance /leasing Non bank asset lines of revolving credit Tax Credit Monetization PO/ Supply chain financing Sale leasebacks Securitization/mezzanine financing P.S. We're e not fans of ' friends and family loans' as they make those warm family gatherings somewhat uncomfortable!! You might not know it but in a lot of cases your borrowing power is already pre-determined if you're already in business and have assets. Receivables can be financed up to 90%, inventory financing ranges from 25-60%, and appraised assets can be financed anywhere from 50- 80% of their true value. Many clients we work with consider refinancing their buildings and assets as a great source of working capital when the rate and structure is suitable.
The goods news about these solutions, again with apologies to all those great angel investors and venture capitalists in Canada, is that you arent required to give up equity ownership when you source any one of these options.
So , yes you can consider those angels and VC's with the searching and managing that comes with that journey, but remember that there are a lot of straightforward financing options readily available for your firm if you have growth prospects and assets . So, cancel that IPO (really, what were you thinking?!) and seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs. Eliminate the complications and the risk, and get the business financing options you need. 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 10 years - has completed in excess of 85 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: http://www.7parkavenuefinancial.com/business-financing-options.html
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