Creative Business Financing Options In Canada: A Thumbs Up Overview
Creative business financing options are constantly sought by business owners/financial managers and entrepreneurs. Whether they are a start up or established business it's a constant struggle to get a handle on ways to strengthen the business... financially. So how does business get some real ' traction' in financing? Let's dig in.
Access to the right financing sources, either alternative or traditional helps you strengthen your business. It's unfortunately often too easy for the business owner/mgr to feel like the company has ' hit the wall ' which we've found unfortunately prompts some ' undesirable behavior' which might inlcude delaying payments to key vendors relationships, using CRA obligations for your working capital source (not a recommended alternative finance strategy!), and perhaps worst of all for true entrepreneurs - being unable to take on large contracts, new business, experienced employees, etc.
The big guys view the whole process of growth as ' scaling' a business. How then does the owner/entrepreneur ' scale ' their business in the SME COMMERCIAL FINANCE space? The answer revolves around:
Understanding core finance strategies (working capital / term loans / asset monetization, etc)
Being able to address financing for immediate and long term growth
Knowing they key issues that will both inhibit your ability to access cash flow financing is key.
Key to execution of a finance strategy is knowing your options - they are in fact just a few short categories here - monetizing your assets, taking on term debt, or accessing unsecured cash flow financing.
The actual solutions? They are a combo of traditional and alternative financing strategies - In some cases only one is needed, in most cases its a cobbling together of a couple of options to address multiple needs of your business.
Revolving bank lines of Credit - TRADITIONAL
Unsecured Cash Flow Loans - TRADITIONAL
Working capital term loans - TRADITIONAL
Govt Guaranteed SBL Loans - TRADITIONAL
Equipment Financing - TRADITIONAL
Sale Leaseback/ Bridge Loans - ALTERNATIVE
Asset Based ABL Business Lines Of Credit - ALTERNATIVE
A/R Financing / Factoring / Confidential Receivable Financing - ALTERNATIVE
INVENTORY FINANCE - ALTERNATIVE
SR&ED Tax Credit Monetization - ALTERNATIVE
PO / CONTRACT Financing - ALTERNATIVE
Sales Royalty Financing - ALTERNATIVE
Which of those 12 traditional or alternative finance options works for you. Will one or a combination allow you to give the ' thumbs up ' to finance success? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with balancing proper loan needs and solutions.
Stan Prokop
Access to the right financing sources, either alternative or traditional helps you strengthen your business. It's unfortunately often too easy for the business owner/mgr to feel like the company has ' hit the wall ' which we've found unfortunately prompts some ' undesirable behavior' which might inlcude delaying payments to key vendors relationships, using CRA obligations for your working capital source (not a recommended alternative finance strategy!), and perhaps worst of all for true entrepreneurs - being unable to take on large contracts, new business, experienced employees, etc.
The big guys view the whole process of growth as ' scaling' a business. How then does the owner/entrepreneur ' scale ' their business in the SME COMMERCIAL FINANCE space? The answer revolves around:
Understanding core finance strategies (working capital / term loans / asset monetization, etc)
Being able to address financing for immediate and long term growth
Knowing they key issues that will both inhibit your ability to access cash flow financing is key.
Key to execution of a finance strategy is knowing your options - they are in fact just a few short categories here - monetizing your assets, taking on term debt, or accessing unsecured cash flow financing.
The actual solutions? They are a combo of traditional and alternative financing strategies - In some cases only one is needed, in most cases its a cobbling together of a couple of options to address multiple needs of your business.
Revolving bank lines of Credit - TRADITIONAL
Unsecured Cash Flow Loans - TRADITIONAL
Working capital term loans - TRADITIONAL
Govt Guaranteed SBL Loans - TRADITIONAL
Equipment Financing - TRADITIONAL
Sale Leaseback/ Bridge Loans - ALTERNATIVE
Asset Based ABL Business Lines Of Credit - ALTERNATIVE
A/R Financing / Factoring / Confidential Receivable Financing - ALTERNATIVE
INVENTORY FINANCE - ALTERNATIVE
SR&ED Tax Credit Monetization - ALTERNATIVE
PO / CONTRACT Financing - ALTERNATIVE
Sales Royalty Financing - ALTERNATIVE
Which of those 12 traditional or alternative finance options works for you. Will one or a combination allow you to give the ' thumbs up ' to finance success? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with balancing proper loan needs and solutions.
Stan Prokop