Business Financing . Avoiding What Can Go Wrong When Funding Canadian Businesses

By: stan prokop


Business financing. When it comes to funding Canadian businesses there are a tremendous amount of ... mistakes you can make! Almost anything can go wrong, so lets looks at how you can ' bullet proof ' some of that financing. Let's dig in.!br>
Why do many clients we meet, talk to and help advise us that they have in essence failed at getting the financing they need? That failure can come from a variety of different reasons - however at the end of the day it all really comes down to problems caused by management of the company, the peculiarities of the lending landscape in Canada , and third part events that range from cataclysmic to simply annoying and time wasting from a management view point .
How then can the business owner and manager focus on successfully completing any form of Canadian business financing? That might include, for a starter the willingness to see the view point of the lender in negotiations re terms, rate, and structure.
Many owners / managers see failure in financing more often than success because they are unable to appreciate the time and work that goes into a proper financing process. On the other hand we also see clients that have taken on improper or too costly financing at almost any price and terms. That of course, if you're e properly prepared, doesnt have to also be the case.
Realism. In Canada, whether you're a start up, SME sector, mid market or large corporation you eventually have to face the fact that you're more of a candidate for either traditional or alternative financing. While many forms of alternative finance are becoming more ' traditional' and time worn every day the business owner/mgr we meet often is barking up the wrong tree relative to what can be realistically achieved.
Your ability to present positively and properly your current financial status and need is key to successful finance. At a simple level it means being able to provide year end financials, interim statements, and the ability to address any issues that arise out of the analysis of those documents.
While many larger financings absolutely require your lawyer or your accountant business owners can often complete a large if not all of the process themselves, saving significant time and expense, delay, etc.
Businesses that are self financing have a larger challenge in obtaining traditional bank and term type financing. Many alternative finance methods such as:
A/R FINANCING
SALE LEASEBACKS
TAX CREDIT FINANCING
ASSET BASED LINES OF CREDIT
Can readily supply working capital and cash flow needs.
Unrealistic expectations are a large part of business financing. If you have assets they can be monetized, if you have orders and contracts they can be funded via PO / SUPPLY chain financing. If there is a bottom line it's simply that you require assistance in educating yourself on financial solutions that are available and applicable to your particular situation.
Seek out and speak to a trusted, credible and experienced advisor with a track record of assisting funding Canadian businesses. You'll be more bullet proof when it comes to making capital decisions that work for your company.

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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 : www.7parkavenuefinancial.com/business-financing-funding-canadian-businesses.html

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