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.

Finding Business Loans Online – Financing As Close As Your Fingertips

The Internet is the best place for the consumer to find extensive availability of loans, make an informed decision and apply without leaving their home or office. In the past, a prospective business owner had to physically go to a financial institution in person to apply for loans. At the bank or lending institution, they were given a sheaf of papers to complete and often wasted valuable time waiting around bank approval. This process was boring, time inefficient and daunting. Enter the better way: loans online. Courtesy of the Internet, the business entrepreneur can sit at home and go through the entire loan application process online, at any time of day or night. The consumer is offered choices and given the ability to check and compare multiple loan offers.There are various options to financing a small business, which is the purpose of this article, to assist in researching and securing loans conveniently. Depending on the development stage of your small-business idea, you will have different financing requirements than other small businesses.Can you create and customize a loan to suit your needs? One of the answers can be found at a website representing a company called simply Business Finance. This site can help you determine what specific sources of financing are needed, and how the requirements are related to the state of your small business both financially and growth-wise. Business Finance does give a variety of descriptions on the different classes of financing available for small businesses. This enables the loan applicant to better categorize the sort of options for which to apply. Serving as an intermediary for roughly 400 lenders, this website also provides a tool to assist in determining the amount of money you might need to borrow. Lenders will vary as far as loan requirements, but this website offers a description of lending requirements. Not your only source, but one of the best, this website has been focused upon creating opportunities in this relatively new market.The second company that is also greatly beneficial in helping to shop and create financing packages is supported by America One Unsecured Loans. This company specializes in start-up and fast-track loans. A small business entrepreneur seeking money in the form of an unsecured loan can find this an indispensable source to assist with financing needs. At America One, they seem to understand just how frustrating it is to find financing and complete a loan in today’s economic environment. Their specialty product is a signature loan that can be used for any purpose, with no collateral required. Approval is based upon current credit standing.This online resource does offer a very fast turnaround time in regard to approval or denial so that if your need is time-sensitive, an answer is fairly immediate. The turnaround time as listed on the website is one to three days. Once approved, this America One Unsecured Loan can be in the form of unsecured debt, and collateral such as equity in a home may not be needed.Remember that when shopping for small-business loans online, make sure that the financing fits your business requirements and plans for future development.

US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%

US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 1.14%. While S&P 500 was trading at 3,701.66, up by 0.98% and Nasdaq Composite 10,690.60 was also up by 0.71 per cent

Twitter Facebook Linkedin
US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%
Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. Source: Reuters
US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 345.25 points or1.14 per cent. While S&P 500 was trading at 3,701.66, up by 35.88 points or 0.98 per cent and Nasdaq Composite 10,690.60 was also up 75.75 points or 0.71 per cent. A Reuters report said that today’s strength was on the back of a report which said the Federal Reserve will likely debate on signaling plans for a smaller interest rate hike in December, reversing declines set off by social media firms after Snap Inc’s ad warning.

Source: Comex

Nasdaq Top Gainers and Losers

Source: Nasdaq

Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. The BSE Sensex ended at 59,307.15, up by 104.25 points or 0.18 per cent from the Thursday closing level. Meanwhile, the Nifty50 index closed at 17,590.00, higher by 26.05 points or 0.15 per cent. In the 30-share Sensex, 13 stocks gained while the remaining 17 ended on the losing side. In the 50-stock Nifty50, 21 stocks advanced while 29 declined.