Business Capital Solutions In Canada: Accessing Proper Cash Flow & Commercial Financing

Business capital requirements in Canada often boil down to some basic truths the business owner/financial mgr/entrepreneur needs to address when it comes to financing for businesses.

One of those truths? Knowing the true state of their financial condition and what financing they do and don’t qualify for when it comes to meeting commercial lending requirements in Canadian business.

Business Loans In Canada

Whether you are smaller or start-up firm looking for information on how to get a business loan or a larger established firm looking for growth financing or acquisition opportunities we’re highlighting 3 mistakes that commercial loan seekers like your company need to avoid making when addressing, sourcing and negotiating your cash flow / working capital and commercial financing needs.

1. Understand the true condition of your company finances – These are almost always successful addressed when you spend time on your financials and understand how your financial statements reflect your access to commercial loans & business credit in general

2. Ensure you have a plan in place for sales growth and financial needs as it relates to commercial financing

3. Understand that actual hard facts about cash flow which is, of course, the lifeblood of your company

Can you honestly answer or feel positive about all those 3 points. If so, pass Go and collect $ 100.00!

A good way to address your company’s finance plans is to ensure you understand growth finance solutions, as well as how to manage in a downturn – i.e. not growing, losing money, etc; It’s never fun to fund yourself in an economic or industry downturn such as the COVID pandemic of 2020!

When we talk to clients of new or established businesses it seems they are almost always talking about sales, so the ability to understand and focus on the differences in their profits and cash fluctuations is key.

How do cash flow and sales plans and projections affect the type of financing you require? For one thing sales growth usually starts out by consuming your cash, not generating it. A poor finance plan will drag your business down and addressing financing simply gets tougher and tougher.

Three basics always emerge when it comes to your search for the right business capital and financing.

1. The amount of financing you need

2. The type of financing (debt/cash flow/asset monetization) The business loan interest rate will be dramatically affected by whether you choose traditional or alternative financing solutions. Private business loans in Canada come from non regulated commercial finance companies most often known as ‘ alternative lenders ‘. These lenders are typically highly specialized in one ‘ niche ‘ of business financing and may be Canadian firms or branches of U.S. banks and non-bank lenders

3. How the financing is structured to be manageable with your day to day operations

What Finance Company In Canada Can Meet Your Borrowing Needs & Why Is Capital Important In Business

Let’s identify and break down key financings your firm should know about and understand if they are applicable and achievable to your business. They include:

A/R Financing / Factoring / Confidential Receivable Finance

Inventory finance / floor planning / retail inventory

Working Capital term loans

Unsecured cash flow loans

Merchant working capital loans/advances – these loans are geared toward short term cash needs and are typically one year in duration. Loan amounts are typically 15-20% of your annual sales revenues.

Royalty finance

Asset based non bank business lines of credit

Tax credit financing (SR&ED bridge loans)

Equipment Leasing / Sale leasebacks – Equipment financing in Canada is used by almost 80% of all companies looking to acquire new, and used, assets.

Govt Guaranteed Small Business Loan program – Government Loans in Canada are sometimes referred to as ‘ SBL’, aka Note: BDC Finance solutions are available from this Canadian non-bricks and morter crown corporation. A small business loan via the government-guaranteed loan program comes with true flexibility around term loan duration, market rates, no pre payment penalties, and of course the low personal guarantee that is required by borrowers. These two ‘ government ‘ loan solutions are often perfect for financing a new business.

If you’re focused on not making mistakes in your business finance needs and want to capitalize on the solutions your competitors are probably already using seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and commercial financing needs.

Stan has had a successful career with some of the world’s largest and most successful corporations.

His employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) In 2004 Stan founded 7 PARK AVENUE FINANCIAL – He is an expert in Canadian Business Financing.

Business Travel and Time Buffers to Ensure Connecting Flights

Consider if you will all the new challenges that the TSA is presenting to travelers at airports. They are causing time delays, airport congestion, and people to miss their connecting flights. Yes, protecting the American People is paramount, and that’s their job but let’s talk about how this effects us business travelers shall we. Why you ask? Because as a business traveler, you can’t afford to miss an appointment, so what you need to do is to have a buffer between connecting flights, and in case there is a flight delay due to extra screening, or some incident caused by TSA personnel, you will not have your travel plans ruined.Yes, many business travelers have merely had enough of this nonsense, but it’s still something that must be dealt with. Indeed, these issues can also play havoc on trying to get to your Rent-A-Car on time, as if you don’t show up when scheduled they may run out of cars to rent, or if you get to the hotel too late they may have already rented the room out, assuming you are a no-show.Business travelers are having a heck of a time on the airlines, due to all these new rules and regulations to prevent holiday underwear bombers or something? There are ways to expedite through security by getting a special pass, along with a background check. Although it is a hassle because business people don’t have time to go get all that done, it will save time during travel, and it’s perfect for the seasoned business traveler who spends more time on airplanes and they do it their children’s soccer games.Additionally, because global warming is such a big deal, the temperatures have been dropping world-wide, and therefore cold weather and the coming Ice Age are causing even more flight delays. And if an airliner is on the runway or ramp longer than three hours waiting for the weather to clear it has to go back to the terminal, as per new FAA laws. This means the flight might be canceled, and then you’ll be stuck in the airport terminal until you can get on another flight, if one is even available.It is for all these reasons that a time buffer is about the only current solution, rather than buying a corporate jet to shuttle yourself around. Therefore having time buffers to ensure connecting flights to get to your destination and accommodations is serious. Please consider all this and think on it.

The Google Apps Reseller Program

I feel there isn’t enough time in the day to do all the things I would like. Exploring Google and all they have to offer small business is something for which I do not have enough time. Even still, I would love to become well versed in their technology.Google has implemented a Google Apps Reseller, which should be of great interest to IT solution providers and professionals around the world. I have passion for internet technologies and Google has become a vital component of successful online businesses and careers. As an IT consultant, I don’t have the luxury of using time as an excuse. I need to know Google.I may not be a Google Authorized Reseller, but at least I’m taking advantage of Google technologies and services for my business and personal use. Google and their many webmaster tools has become a best friend for small businesses. They contribute to the open source community too, which I respect.If you’re in consulting business or an IT professional and you’re just using Google as a search engine, you’re missing out on some of today’s most important internet technologies. GMail is awesome email software and the convenience of Google Docs puts commercial applications to shame. But, it’s the Google API that truly makes it all so powerful.If you’re already in the IT industry and taking advantage of Google Apps for your business, you now have the opportunity to add Google Apps to your existing VAR business model. The Google Apps Reseller Program is an opportunity to strengthen relationships with existing clients and generate revenue by having Google as your partner.