Business Capital Solutions In Canada: Accessing Proper Cash Flow & Commercial Financing

Business capital requirements in Canada often boil down to some basic truths the business owner/financial mgr/entrepreneur needs to address when it comes to financing for businesses.

One of those truths? Knowing the true state of their financial condition and what financing they do and don’t qualify for when it comes to meeting commercial lending requirements in Canadian business.

Business Loans In Canada

Whether you are smaller or start-up firm looking for information on how to get a business loan or a larger established firm looking for growth financing or acquisition opportunities we’re highlighting 3 mistakes that commercial loan seekers like your company need to avoid making when addressing, sourcing and negotiating your cash flow / working capital and commercial financing needs.

1. Understand the true condition of your company finances – These are almost always successful addressed when you spend time on your financials and understand how your financial statements reflect your access to commercial loans & business credit in general

2. Ensure you have a plan in place for sales growth and financial needs as it relates to commercial financing

3. Understand that actual hard facts about cash flow which is, of course, the lifeblood of your company

Can you honestly answer or feel positive about all those 3 points. If so, pass Go and collect $ 100.00!

A good way to address your company’s finance plans is to ensure you understand growth finance solutions, as well as how to manage in a downturn – i.e. not growing, losing money, etc; It’s never fun to fund yourself in an economic or industry downturn such as the COVID pandemic of 2020!

When we talk to clients of new or established businesses it seems they are almost always talking about sales, so the ability to understand and focus on the differences in their profits and cash fluctuations is key.

How do cash flow and sales plans and projections affect the type of financing you require? For one thing sales growth usually starts out by consuming your cash, not generating it. A poor finance plan will drag your business down and addressing financing simply gets tougher and tougher.

Three basics always emerge when it comes to your search for the right business capital and financing.

1. The amount of financing you need

2. The type of financing (debt/cash flow/asset monetization) The business loan interest rate will be dramatically affected by whether you choose traditional or alternative financing solutions. Private business loans in Canada come from non regulated commercial finance companies most often known as ‘ alternative lenders ‘. These lenders are typically highly specialized in one ‘ niche ‘ of business financing and may be Canadian firms or branches of U.S. banks and non-bank lenders

3. How the financing is structured to be manageable with your day to day operations

What Finance Company In Canada Can Meet Your Borrowing Needs & Why Is Capital Important In Business

Let’s identify and break down key financings your firm should know about and understand if they are applicable and achievable to your business. They include:

A/R Financing / Factoring / Confidential Receivable Finance

Inventory finance / floor planning / retail inventory

Working Capital term loans

Unsecured cash flow loans

Merchant working capital loans/advances – these loans are geared toward short term cash needs and are typically one year in duration. Loan amounts are typically 15-20% of your annual sales revenues.

Royalty finance

Asset based non bank business lines of credit

Tax credit financing (SR&ED bridge loans)

Equipment Leasing / Sale leasebacks – Equipment financing in Canada is used by almost 80% of all companies looking to acquire new, and used, assets.

Govt Guaranteed Small Business Loan program – Government Loans in Canada are sometimes referred to as ‘ SBL’, aka Note: BDC Finance solutions are available from this Canadian non-bricks and morter crown corporation. A small business loan via the government-guaranteed loan program comes with true flexibility around term loan duration, market rates, no pre payment penalties, and of course the low personal guarantee that is required by borrowers. These two ‘ government ‘ loan solutions are often perfect for financing a new business.

If you’re focused on not making mistakes in your business finance needs and want to capitalize on the solutions your competitors are probably already using seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and commercial financing needs.

Stan has had a successful career with some of the world’s largest and most successful corporations.

His employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) In 2004 Stan founded 7 PARK AVENUE FINANCIAL – He is an expert in Canadian Business Financing.

Losing Large Amounts Of Weight Through A Nutritional And Healthy Diet Plan

Are you one of the thousands upon thousands of people who are 60, 80, or 100 pounds overweight, and have tried diet after diet only to discover they didn’t work?Have you stuck to a diet and lost 10 or 20 pounds only to find that once the diet ended, you gained all your weight back and more?If so, you are definitely not alone. In fact, if you are one of the people who medical experts refer to as obese, chances are that a traditional diet isn’t going to work for you, and certainly the latest ‘fad’ diet isn’t going to work.By focusing on changing your eating habits to include more nutritional and healthy foods, rather than on weight loss and calorie counting, will help you to lose much more weight that any so called “Diet”The Problem With DietsThe main problem with diets is that they are designed for quick short term weight loss. This means that by their very nature they radically cut calories, and in doing so cut many of the vitamins and nutrients your body needs to maintain good health.While this may have little effect on those looking to only lose 5 or 10 pounds, for anyone who tries dieting long-term, they experience unrelenting hunger pangs, food cravings, and even begin to feel weak and more unhealthy than ever before. In addition, many of these diets end up robbing you of energy and make you feel depressed.And all of this leads to quitting the diet, possibly gaining even more weight back, while feeling that you have failed once again.Don’t Focus On Weight Loss Focus On Eating HealthyRather than focusing on weight loss, start focusing on eating more nutritional and healthy foods. By shifting your focus you are improving your overall health, while ‘shedding’ those pounds for good. Eating more nutritionally isn’t a diet, it is a lifestyle change that not only helps you lose weight, but makes you feel and look better from the inside out.Start By Learning All You Can About NutritionMost of us think that we know all about good nutrition, but in fact we really know little at all. For example, most people believe that low fat food is better for you than their fattier counterparts. Why? Because this is what we have been told.However, low fat food is often worse for you than the full fat versions. Take a look at the label on whole milk, or cheese, and then compare the low fat versions of these products.The low fat version may contain less fat, but they are extremely high in sodium that not only adds water weight, but causes a variety of health problems as well – and the processed low fat food products are notorious for replacing some of the fat with high fructose corn syrup so they can be called ‘low fat’ and ‘sugar free’.Additionally, you also need to learn how to prepare foods so they keep more of their nutritional value. Fresh raw fruits and vegetables are more healthy than cooked, and micro-waving robs almost all foods of their nutrients. Once you have learned more about nutrition, you can then also look for foods that are considered to be fat burning or anti-inflammatory, as well as nutritional.Why You Lose Weight With Nutritionally Sound FoodsOne of the reasons you lose weight when eating nutritionally sound foods is because many of these foods are naturally lower in calories. This means that you can actually eat more actual food and still consume less calories.And this is especially the case when comparing to foods like pasta, bread, cereal, and other high calorie processed foods that are often full of sugar – none of these are nutrient rich and healthy, and you can’t lose weight with ‘nutritionally empty’ foods.When you eat nutrient dense foods, you are also giving your body what it needs to function properly. This results in feeling more sated, so you are less hungry and have fewer cravings for your problem foods. And all of this results in eating less.Eating foods that are high in vitamins, minerals and other nutrients can help you feel better overall. When you feel healthier you have more natural energy – which makes it easy for you to increase your activity levels, which helps to burn off even more calories that results in more weight loss. And the beat goes on!Best of all you,can begin making small changes in your diet to include more nutritional foods, and then add more and more of these foods as you go along. This will give your body time to adjust to your new way of eating, while allowing you to change your diet in a manner that doesn’t send your body into shock and starvation mode.And whatever you do, don’t try to lose weight by fasting or eating ridiculously low amounts of calories. Each small healthy change you make, will result in more weight loss, and you can consistently meet your weight loss goals in a way that is healthy and will enable you to keep the weight off.

Business Loans In Canada: Financing Solutions Via Alternative Finance & Traditional Funding

Business loans and finance for a business just may have gotten good again? The pursuit of credit and funding of cash flow solutions for your business often seems like an eternal challenge, even in the best of times, let alone any industry or economic crisis. Let’s dig in.

Since the 2008 financial crisis there’s been a lot of change in finance options from lenders for corporate loans. Canadian business owners and financial managers have excess from everything from peer-to-peer company loans, varied alternative finance solutions, as well of course as the traditional financing offered by Canadian chartered banks.

Those online business loans referenced above are popular and arose out of the merchant cash advance programs in the United States. Loans are based on a percentage of your annual sales, typically in the 15-20% range. The loans are certainly expensive but are viewed as easy to obtain by many small businesses, including retailers who sell on a cash or credit card basis.

Depending on your firm’s circumstances and your ability to truly understand the different choices available to firms searching for SME COMMERCIAL FINANCE options. Those small to medium sized companies ( the definition of ‘ small business ‘ certainly varies as to what is small – often defined as businesses with less than 500 employees! )

How then do we create our road map for external financing techniques and solutions? A simpler way to look at it is to categorize these different financing options under:

Debt / Loans

Asset Based Financing

Alternative Hybrid type solutions

Many top experts maintain that the alternative financing solutions currently available to your firm, in fact are on par with Canadian chartered bank financing when it comes to a full spectrum of funding. The alternative lender is typically a private commercial finance company with a niche in one of the various asset finance areas

If there is one significant trend that’s ‘ sticking ‘it’s Asset Based Finance. The ability of firms to obtain funding via assets such as accounts receivable, inventory and fixed assets with no major emphasis on balance sheet structure and profits and cash flow ( those three elements drive bank financing approval in no small measure ) is the key to success in ABL ( Asset Based Lending ).

Factoring, aka ‘ Receivable Finance ‘ is the other huge driver in trade finance in Canada. In some cases, it’s the only way for firms to be able to sell and finance clients in other geographies/countries.

The rise of ‘ online finance ‘ also can’t be diminished. Whether it’s accessing ‘ crowdfunding’ or sourcing working capital term loans, the technological pace continues at what seems a feverish pace. One only has to read a business daily such as the Globe & Mail or Financial Post to understand the challenge of small business accessing business capital.

Business owners/financial mgrs often find their company at a ‘ turning point ‘ in their history – that time when financing is needed or opportunities and risks can’t be taken. While putting or getting new equity in the business is often impossible, the reality is that the majority of businesses with SME commercial finance needs aren’t, shall we say, ‘ suited’ to this type of funding and capital raising. Business loan interest rates vary with non-traditional financing but offer more flexibility and ease of access to capital.

We’re also the first to remind clients that they should not forget govt solutions in business capital. Two of the best programs are the GovernmentSmall Business Loan Canada (maximum availability = $ 1,000,000.00) as well as the SR&ED program which allows business owners to recapture R&D capital costs. Sred credits can also be financed once they are filed.

Those latter two finance alternatives are often very well suited to business start up loans. We should not forget that asset finance, often called ‘ ABL ‘ by those Bay Street guys, can even be used as a loan to buy a business.

If you’re looking to get the right balance of liquidity and risk coupled with the flexibility to grow your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist you with your funding needs.