Alternative financing options are the complicated concepts and structures some clients we meet think they are. In fact over recent years when it comes to business loans many finance solutions formally thought of as ' alternative' have in fact become... as we maintain .. the new traditional. Let's dig in.!br>
No secret that Canadian business owners and financial managers are looking for straightforward options and advise when they look to obtain debt solutions or asset monetizing strategies.
The good news here of course is that the majority of companies looking for financing are doing that because they have both great promise for larger revenues, as well as the need for the working capital, cash flow and term loans that will satisfy that growth.
The optimal solution is no nonsense financing that matches the right rates, terms and structure to your company's specific need. Yes of course it would be great to go to the Yellow Pages (does anyone still do that?), look up business financing alternatives and call the right #.
In fact you probably could do that if you were totally, and we mean totally prepared, but the reality is that a lot of clients we meet spend a lot of time searching for solutions that are totally inappropriate for their specific need based on their current financial ' profile '.
The best example of this is when the ' go to ' financing solution is, in the mind of the business owner ' the bank'. If they were to better understand why Canadian chartered banks won't lend them money they would be saving a lot of time and probably a few dollars.
At the core of bank financing in Canada is the concept that business loans made in the Canadian business financing landscape are made 'safely' There is a full expectation there is little, or no risk, simply because as Canadian consumer account holders we have a full expectation with the bank that our funds are safe.
So yes, if your firm is established, has demonstrable historical, present and future cash flow and collateral assets to further back up our financing need its ALL SYSTEMS GO.
So if your firm is ' bleeding edge' when it comes to new products or services, or if you are ' pre revenue ' , or if your contracts are out of the country , or you require further R&D to complete products and services .. Well we think you know where we're going with that one.
In some cases we can consider government assistance as alternative funding to some degree. Programs such as the Canadian BIL/SBL program or the SR&ED program can provide a significant amount of capital to SME sector firms
So what in fact are those alternative financing options? They might include:
Confidential Receivable Financing
PO/Supply Chain Finance
SR&ED Tax Credit Financing
Short Term Operating Leases
Non Bank asset based commercial business lines of credit
Sale leaseback strategies
Contract financing - Example SAS (Software as a Service)
For business loans and alternative financing solutions that make sense (for your firm) seek out and speak to a trusted, credible, and experienced Canadian business financing advisor with a track record of success.
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Stan Prokop - founder of 7 Park Avenue Financial – 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 80 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 details :
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