Tweet

A Simple Proposal – Canadian Working Capital & Commercial Business Finance Loans Info - No Strings Attached

Guest post by: Stan Prokop

Article Overview: Information on working capital and commercial business finance loans in Canada . Utilize this expert advice.

A Simple Proposal – Canadian Working Capital & Commercial Business Finance Loans Info - No Strings Attached

Recently we came across the thought that knowledge without wisdom is dangerous. Wow! That seemed to us totally applicable to thousands of Canadian business owners and financial managers who struggle to manage or find working capital and commercial business finance loans and solutions for their companies.



But what about combining knowledge with the wisdom of experience? Now that’s a concept! Yes it might take some time to investigate a solution but boy in the long run wouldn’t it be worth it.



It's never easy when Canadian business owners and financial managers are out there looking for solutions. Although rates interest rates in Canada are generally perceived as ' quite low ' the ability to access cash flow solutions is still a challenge.



If you company has a solid asset base , good cash flows from a historical perspective , then you of course have a stronger chance of being more success in business financing .



On the other hand if you find yourself experiencing hyper growth, or coming out of a period of financial losses or turnaround scenarios then you need some help in both identifying and , even more importantly , accessing commercial business finance loans and solutions .



At the end of the day your solutions boil down to traditional or alternative... it’s as simple as that. Many new solutions that we focus on with clients are viewed as alternative in nature, but the reality is that these types of financings are gaining traction every day.



That’s where the assistance of expert advice, coupled with wisdom and experienced can really pay off we think. Doesn’t it make sense that if you haven’t even heard of some of these cash flow solutions then you probably also doesn’t have the knowledge and expertise to comfortably access them?



Commercial bank facilities from Canadian chartered banks are the obvious solution. If your firm can withstand financial statement due diligence around historical profitability, ratios, covenants, personal collateral of owners then you're clearly eligible for the lowest cost form of business financing in Canada.



Thousands of firms aren’t of course eligible for this type of financing - so that’s where our alternatives come in. They include ABL facilities which are a solid alternative to commercial bank lines of credit. Smaller and start up firms can access basic working capital facilities that simply margin A/R and inventory in a combo type arrangement. A fabulous, (yes fabulous!) form of business financing around receivables is C I D. That’s the name we've given to Confidential Invoice Discounting or financing - it has you in charge of your receivable financing, not a third party intrusive factoring firm.



Other solutions you can consider are securitizing receivables, leases, or contracts, and don't forget purchase order financing and tax credit financing.



So, a bottom line? How this. Experience and wisdom is a powerful combo. So consider talking to an experienced Canadian business financing advisor who can assist you in maximizing working capital wisdom with... you guessed it... experience!

Related Articles
  SBL Loans In Canada. Degree In Rocket Science Not Required For The Canadian Small Business Loan
  Canadian Franchisee Funding & Business Loans – In Over Your Head In Lenders & Finance ?
  Understanding Canadian Working Capital Finance – Cash Flow and Institutional Loans & Private Lenders
  How Asset Based Lending Loans Competes With A Bank Business Line Of Credit Loan – Do You Understand ABL Finance?
  Damn You SBL Canadian Government Loans ! Secrets To Unlock Federal CSBF Loan Success
  Business Line Of Credit & Commercial Loan Called ? Important Info On Special Loans Financing In Canada
  Surviving A Working Capital Financing and Funding Challenge
  Working Capital Financing Canada – For Sales and Growth
  Canadian Do It Yourself Equipment Lease And Loan Advice – Commercial Business Financing
  Why Your Competition Is Stampeding To Business Equipment Leasing Financing – Canadian Commercial Finance Advice
  Finding Information on Small Business Loans
  Where’s the Cash Working Capital and Cash Flow Loans and Finance For Canadian Business
  The Secret Of Matching The Right Financing To Your Loan For A Franchise – Business Loans For Franchises .. Done Right
  Rest Assured You Still Have Canadian Working Capital and Commercial Finance Business Lending Options
  Capital For Your Business ? What You Need To Know About Business Loan Financing In Canada
  The SR&ED Bridge Loan – The ‘ Hushed Truth ‘ On ( SR ED )SRED Tax Credit Financing Loans In Canada
  What Types Of Loans Are Available For A Canadian Franchisee When Financing A Franchise ?
  Commercial Bank Financing In Canada – Solutions and Maybe An Alternative Via Business Banking Competitors!
  Unique Canadian Cash Flow Financing & Working Capital Loans - Finance Options
  Franchise Funding and Financing Options for Franchisees In Canada

Article Tags: commercial business finance, loans, working capital



Related Forum Posts
New Small Business Topic - Hello everyone, I'm on the lookout for new topics to add to my site. We just launched a Franchising section and are planning Human Resources section. Do you have any thoughts for a new section? Here's a list of what we currently have: Angel Investors Branding Bank Loans Business Coaching Business Plan Franchises (New) Insurance Legal Marketing Public Relations Sales Small Biz Loans Venture Capital
Del Castienne - International Business and Project Brokers - In addition to the above, Del Castienne is an international brokerage firm specializing in various entrepreneural services. Del Castienne is more than just a brokerage, as we facilitate Private International Venture Capital for Business and Projects from Commodity Speculation Transactions, MBO, MBI, M&A, Bridging Finance, Patents, Branding, JV, Corporate Advisory Services, Business Plan Development, etc.. Del Castienne is linked to 1200 private international Venture Capital consortiums and Funding Syndicates with a funding capacity of $ 115 billion and 5000 international Investment Bankers and Business & Project Brokers. This in itself should provide you with a gateway to the best source of funding in the world. Through Del Castienne any entrepreneur can have up to a potential success rate of 25% (conditions apply) with absolutely no up front costs. Del Castienne charges a maximum of 5% commission which is far below the international standard of 10% - 12% on project value. If you are tired of running back and forth with countless dissappointments, please give us an opportunity to assist you. Our minimum Venture Capital amount is $1 million and we a Commitment Letter can be provided with in 30 days after formalities are in place and your information was received.
Re: Finance is the primary requirement of business - [quote="rauljoseph":36x8dadn]Finance is very important in a business. It is all about managing the business' money and other assets. Finance includes the study and analysis of processes, financial institutions, markets and instruments that are involved in the transfer of money or anything that has a monetary value among consumers, businesses and government.[/quote:36x8dadn] Good point. I'll just add that if I was going into business for myself and could only have one skill it would be Sales & Marketing. You need to be able to create customers first and foremost. Finance is more of a support function for entrepreneurs.
Different Types of Funding - Finance for business can be obtained through a number of different sources. Let's review some of those channels to help you decide what's right for your business needs: Grants There are over 930 different EU and UK grants and loans available from over 100 issuing bodies. This is the cheapest form of finance and an important part of the funding package that companies and individuals need. We can help you find your way through this maze. Technology Micro Projects: 50% of eligible costs up to £20,000 Research project: For a technical and feasibility study of an innovative idea for new technology 60% of costs up to a grant of £75,000. Development project: For development up to pre production 35% of costs up to a grant of £200,000 Developing an innovative idea: valuable for small companies and individuals at the start of a technical project: 75% of costs of hiring a mentor and consultants. Export To start exporting or moving into new markets grants of 50% of costs up to £20,000 each. Training and Education Knowledge Transfer Partnerships, Achieving Best Practice in Your Business, Investors in People Modern Apprenticeships New Deal for various grants. Environment BOC Foundation for the Environment: 25% to 50% of Project cost, typically £20,000 to £100,000 Clean up Fund: Emission reducing equipment up to 75% of cost Community Chest Fund: Up to £25,000 for projects near active SITA sites High Impact Fund: £150,000+ for larger projects near SITA sites Assisted Areas Regional assistance grants of between 10 and 35% for capital expenditure in less favoured areas of the UK. Loans Loans are an excellent source of finance if you have suitable security to borrow against or a reliable earnings stream. This needs to be planned and presented well to obtain funds. Credit cards Provides up to 56 days free credit if you play the game! Overdraft Banks are surprisingly supportive when presented with a well thought through plan and competent management. Bank Loans Lenders tend to look for a good business plan and security. Typically the loan is approved by a centralised back office function rather than the person you meet. Terms and rates depend upon the risk. Repayments can be very flexible to meet your specific needs. Mortgages These can include flexible repayment terms to meet your business needs. This can even be incorporated into your overdraft finance so that you have one flexible account for both personal/ business mortgages and overdraft Small Firms Loan Guarantee Scheme Up to two years trading: Up to £100,000 Over two years trading: Up to £250,000 However these are difficult to obtain and are a loan of last resort. Export Guarantee Scheme This is government backed insurance against appropriate export documentation. Mezzanine This is a halfway house between loan and equity. It can be an innovative way of raising funds for the more established business. Mostly for expansion capital. Equity This is not as easy as the papers would have you know. Only 1% of business plans received by Venture Capital Funds are successful. However, a good business proposition consisting of a strong demand for the product or service, management track record and a sound financial plan will enhance the chance of success. Business Angels These are high net worth individuals who are successful businessmen looking for investment opportunities. They can provide both time expertise and money. Typical investment size is £25,000 to £250,000 but can go as high as £2m for the right opportunity. Exit within 3-5 years. Venture Capital These are investment funds seeking high rates of return. However typically investments are over a million pounds. Some funds are targeted at lower amounts depending upon the sector and region. These funds are looking for exponential capital growth over 3-5 years. Asset backed finance This can cover machinery, sales invoices even sales orders. It can be a very flexible source of finance to the growing business Leasing This will cover your capital expenditure and spread the cost over a three to five year period. It is particularly useful if you do not have taxable profits to maximise your capital allowances. Sale and leaseback of a property you own is another good source of funds. Factoring Factoring offers a sales ledger administration and debt collection service. Up to 95% of an approved sales invoice is paid within 48 hours, quicker if required. Credit protection is also available to protect against a bad debt. The Factor will own and place a first charge over the book debts and they might also take other charges, depending upon the strength of the financial information. Invoice discounting Invoice Discounting can be Confidential or Disclosed; it depends upon the strength of the financial information. The service is the same as Factoring, except that the sales ledger administration and the debt collection is the responsibility of the client and not the Factor. Pre payment of the approved sales invoice is still up to 95% and the factor will still have a first charge on the book debt and therefore own the debt. This service can also have credit protection cover. All sales invoices need to be for a business to business debt, and some proof of delivery is generally required. Trade Finance This is funding provided against stock purchases, signed contracts and orders whereby the funder will prepay a certain percentage of the value Pension fund It may be possible to use your pension funds for a loan back to the business What do u think about it?
Finance is the primary requirement of business - Finance is very important in a business. It is all about managing the business' money and other assets. Finance includes the study and analysis of processes, financial institutions, markets and instruments that are involved in the transfer of money or anything that has a monetary value among consumers, businesses and government.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Igniting Your Unstoppable Business Destiny

The Right Job - Part Five 'Compensation'

How To Be A Management Legend

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.