Business Financial Solutions In Canada : Untapping Capital

Is Lack Of Financing Hindering Your Ability o Capitali!e On "ro#t$

Opportunities
O%&'%I&( ) Infor*ation on business financial solutions in Canada + Access to
capital $elps Canadian fir*s gro# t$eir business if proper financing is accessible
Business financial solutions in Canada (or lack thereof!) are the key in allowing
business owners and financial managers to capitalize on growth initiatives. Let's dig in.
The myriad of finance offerings in the !" #ommercial $inance sector can be a double
edged sword. That's because lack of information % knowledge% of clarity around who is
offering these solutions often confuse business people when in fact they are meant to
solve growth problems That % coupled with the fact that many industries vary in the types
of financial solutions that fit them best makes matters even more confusing .
& good e'ample is a type of finance that's often the most sought by small businesses and
even retailers ( In,entory financing+ This type of capital need is driven by the need to
purchase and turn over inventory and is a key part in the ' bridge ' between client order%
delivered product% and the generation of receivables% which in turn still have to be
collected!
)anks and many commercial lenders shy away from inventory as a financeable asset only
because they simply don*t have the e'pertise to manage and fund such an asset class.
+owever% this has created opportunities for other lenders to focus on this niche% and
create an entire market around inventory financing.
The most common method is to make inventories a part of an overall business credit
facility. ,hile that can be a #anadian chartered bank if your company is ' credit worthy '
more often than not the proper solution is an asset based line of credit % known as the -
ABL - which includes inventory as party of your financing margin % together with
receivables and e-uipment .
)ank term loans are low cost and have great term amortizations% but because they are
cash flow and covenant based in our banking system they are more difficult to achieve.
,hile the #anadian govt backed loan program% (.#)$*) provides thousands of
businesses a year with billions in financing it only finances two asset classes ( e-uipment
and leaseholds. /opular misconceptions that this loan can provide working capital or
inventory financing ( the simple answer ( 0t does not.
,e spoke of that bridge from the time your firm takes and order to when you get paid
from clients. 1eceivables are a part of that bridge and this asset can typically be financed
at 23(456 of total &71 value. 1eceivables financing is accomplished through a bank
facility% or% as common these days% via invoice finance. 8ur recommended solutions to
clients is - CO.FI/&.IAL '&C&I%ABL&S FI.A.C& - if only for the reason... you
guessed it... is that it*s #89$0:"9T0&L.
0n #anada e-uipment lessors and commercial mortgage firms can satisfy the bulk of
capital options for e-uipment and real estate. They are typically long term in nature% 3(;5
years respectively.
,hile personal e-uity and outside e-uity capital aren't often the most desirable methods
to attract capital the best solution is simply choosing the right debt or asset monetization
solution that meets your company and industry needs .
0f you want to e'plore business financial solutions in more detail% with a view towards
growth seek out and speak to a trusted0 credible and e1perienced Canadian business
Financing Ad,isor #it$ a track record of success who can assist you in tapping into
second stage financing solutions.
tan /rokop ( 2 /ark &venue $inancial <
http<77www.2parkavenuefinancial.com
)usiness financing for #anadian $irms % specializing in working capital% cash flow% asset
based financing % "-uipment Leasing % franchise finance and #dn. Ta' #redit $inance .
$ounded ;55= ( #ompleted in e'cess of 45 !illion > of financing for #anadian
corporations . Info 2Contact :
3 4A'5 A%&.U& FI.A.CIAL 6 CA.A/IA. BUSI.&SS FI.A.C&
SOLUIO.S &74&'IS&
Ha,e A 8uestion 2Co**ent On Our Blog Or Canadian Business Financing
Alternati,es 9
CO.AC:
3 4ark A,enue Financial
outh heridan "'ecutive #entre
;4?5 outh heridan ,ay
uite @5?
8akville% 8ntario
LAB 2BC
/irect Line D =?A @?4 32A4
Office 6 453 C;4 ;A3@
&*ail D sprokopE2parkavenuefinancial.com
- Canadian Business Financing (it$ $e Intelligent Use Of &1perience -
Stan 4rokop