Canadian Business Financing : How Good Are Your Cash Flow And Debt

Options
We Need To Tal !"" About Canadian Business Finance Options
O#$%#&$W ' &n(or)ation on cash (low and debt (inance options" Canadian
business (inancing co)es with choices and alternati*es " Here+s wh,
Canadian business (inancing , fortunately or unfortunately, comes usually with a
question : What type of cash flow or debt finance solutions are right for my firm - and
more to the point , do I qualify for approval . Oh and one more question - What do the
various traditional and alternati*e options cost and how do they work !he answer
"et#s dig in.
One of the first areas the business owner needs to assess is the whole issue of borrowing
to take on new debt- or simply being able to . cash (low. or /)oneti0e+ business assets"
!he need to acquire longer term fi$ed assets is always going to be financed via long term
debt, term loans, and equipment finance and leasing. !op e$perts tell us that over %&' of
all businesses in (orth )merica utili*e equipment financing to acquire production and
technology type assets.
Is leasing always the # go to # when it comes then to acquiring assets In some cases
current assets can be refinanced via a sale leaseback or temporary bridge loan, bringing in
need working capital.
(ote also that for companies in the Co))ercial 12$ Finance needs sector the
Canadian go*t s)all business loan should be considered. It#s for new or start up
businesses that require leasehold improvements or new assets to a ma$imum of +,&k,
although that ma$ is in the process of being raised - great news for the firm that has under
, -illion dollars of revenue . . , -illion is the program ma$ /
We advise clients strong to consider # matching0 business financing solutions with the
need. ) clear e$ample 1imple. 2on#t use day to day business lines of credit or cash on
hand to acquire long term assets. !hat depletes your cash flow and working capital ratios.
!he strategy might make sense in the moment, but never in the long term.
3usiness financing needs often focus on # liquidity #. !hat is the # moneti*ation# aspect of
what we have been talking about. 4ere you want to focus on financing receivables and
inventory. !hat is accomplished via such strategies that include:
Chartered ban credit re*ol*ing credit lines
&n*entor, Financing
A3% Financing 4that )ight include traditional in*oice (actoring or our
reco))ended solution 5 Con(idential %ecei*able Finance
Ta6 credit )oneti0ation 4Yes #irginia """ ,ou can (inance 1%7$D re(undable ta6
credits
8O 3 1988:Y Chain Financing
Asset based lines o( credit 5 these are non ban in nature and )oneti0e ,our current
assets into one si)ple credit line that ,ou borrow against and re*ol*es
It#s critical to assess whether the financing you need is . traditional. or # alternati*e # in
nature. 5art of that assessment is the cost, as the non traditional sources will often cost 6-
7 times the cost of today0s low bank financing rates, which might typically be in the ;5
<= range. (ote though that its a question of access to capital as opposed to # cost o(
capital. for many business owners who can#t qualify for unlimited amounts of business
credit, which often can be sources via alternative finance vehicles.
1o, do # we need to talk # 8onsider seeking a trusted- credible and e6perienced
Canadian business Financing Ad*isor with a trac record o( success who can ensure
you are on the right path to solid cash flow and debt finance solutions for 8anadian
business.
1tan 8roop - > 8ar A*enue Financial :
http:33www">para*enue(inancial"co)
3usiness financing for 8anadian 9irms , speciali*ing in working capital, cash flow, asset
based financing , :quipment "easing , franchise finance and 8dn. !a$ 8redit 9inance .
9ounded 6&&7 - 8ompleted in e$cess of ;& -illion < of financing for 8anadian
corporations . &n(o 3Contact :
> 8A%? A#$N9$ F&NANC&A: @ CANAD&AN B91&N$11 F&NANC&NG
$A8$%T&1$
4ave ) =uestion >8omment On Our 3log Or 8anadian 3usiness 9inancing
)lternatives
CONTACT:
> 8ar A*enue Financial
1outh 1heridan :$ecutive 8entre
6;?& 1outh 1heridan Way
1uite +&?
Oakville, Ontario
"@A BA%
Direct :ine C 7?@ +?; ,B@;
O((ice C ;&, %6; 6@,+
$)ail @ sprokopDBparkavenuefinancial.com
. Canadian Business Financing with the intelligent use o( e6perience .
1tan 8roop