Business Financing Options In Canada : Most Effective And Why

Looking For All easons Financing !

O"E#"IEW $ Infor%ation on &usiness financing options in Canada '
(nderstanding various &usiness loan and asset %oneti)ation solutions is key to your
co%pany*s financial success
Business financing options in Canada tend to be an ' all seasons' challenge. The
Canadian business owner/financial manager constantly seeks different loan options and is
constantly challenged to understand who to deal with, where to go, and what makes up
qualifications for any specific type of financing . Let's dig in.
In a perfect world
by the way, its not! commercial businesses in the "#" sector would choose to be 'all
cash ' businesses. That won't happen as along with the costs of paying supplies, funding
operating e$penses and o%erhead the reality is that some form of debt or asset
moneti&ation is required to carry in%entory, recei%ables, purchase equipment , etc.
Through those ongoing ' seasons' of a business year there are of course bulge
requirements and seasonality, simply adding more ' e$citement' to the mi$.
+Loans* is of course the generic word that business folks associate with financing. Those
fundings come from banks, commercial finance companies, and for many companies in
the '() Commercial *inance need sector e%en the go%t, %ia the CA,A-IA,
.O"E#,ME,/ .(A#A,/EE- LOA, 0#O.#AM' That loan guarantees banks
the ma+ority of their principal on the loan in case of a loss
'o back to our ' all seasons' approach to Canadian business financing. Typical loan needs
in the business financing area include lines of credit fro% &anks or other co%%ercial
finance co%panies1 or equipment loans from those same banks or equipment lessors.
There is currently a healthy competition between banks and other lenders who focus on
%arious ' niches' in business finance. ,s an e$ample one alternati%e to the bank line of
credit is the 2 ABL 2' It's a working capital re%ol%ing line of credit that is based on the
total %alue of your recei%ables, in%entory and equipment. It costs more, but --. of the
time gi%e you more, and is much easier to access if your firm can't meet bank
qualifications.
/ou not only need to be comfortable is assessing your options0 you must ensure you ha%e
a basis sense of some key aspects of any specific type of business financing. Typical
forms of business financing include1
#eceiva&les financing 3 factoring 3 confidential receiva&le funding
Inventory Finance
Working capital ter% loans
E4uip%ent Leasing
/a5 Credit Moneti)ation 6pri%arily 2#7E- 28
Asset &ased non &ank credit lines
0urchase Order 3 Contract Financing
Cash Flo93 Me))anine Financing
2hat are those issues that need to be addressed in any of those options for our ' all season
' approach to business loans/asset moneti&ation3 They include1
/er%3a%orti)ation
Interest rates and fees
Collateral availa&ility34uality
O9ner e4uity issues
0ersonal guarantee e%phasis
If you're focused on capitali&ing on the best form of financing for your business, during
any season4 , consider seeking out and speaking to a trusted, credible and e$perienced
Canadian business financing ad%isor who can assist you with your options assessment.
tan 0rokop 5 : 0ark Avenue Financial :
http:33999':parkavenuefinancial'co%
"usiness financing for Canadian *irms , speciali&ing in working capital, cash flow, asset
based financing , )quipment Leasing , franchise finance and Cdn. Ta$ Credit *inance .
*ounded #667 5 Completed in e$cess of -6 (illion 8 of financing for Canadian
corporations . Info 3Contact :
: 0A#; A"E,(E FI,A,CIAL < CA,A-IA, B(I,E FI,A,CE E=0E#/IE
>ave A ?uestion 3Co%%ent On Our Blog Or Canadian Business Financing
Alternatives !
CO,/AC/:
: 0ark Avenue Financial
'outh 'heridan )$ecuti%e Centre
#-96 'outh 'heridan 2ay
'uite :69
;ak%ille, ;ntario
L<= >=?
-irect Line @ 79< :9- A><-
Office @ -6A ?#- #<A:
E%ail @ sprokopB>parka%enuefinancial.com
2 Canadian Business Financing With /he Intelligent (se Of E5perience 2
tan 0rokop