Rebooting Your Working Capital Finance And Cash Flow Capital Choices In Canada

Working capital finance solutions often make the Canadian business owner and financial manager feel that only a miracle will solve the challenges they face in financing their business. When they understand the timing it takes to successfully achieve proper business financing, as well as being armed with the right info they will have a better idea of how to ' reboot ' financing issues in their company. Let's dig in.

When it comes to the issue of ' time' around a flexible finance solution the standard ' go to ' in Canada is our chartered banks. Here you have the lowest cost of borrowing capital in Canada, with numerous solutions available for term and revolving business credit.

For smaller firms it's even possible to get an unsecured business line of credit. But even if your banking facilities are in fact secured they are always ' low cost' and flexible relative to the number of services offered

So what is the big problem? In many cases it’s both the time it takes to get such financing in place, compounded by the criteria your company needs to meet to get approved. So low cost, and not so easy to get. That is the conundrum.

By the way, those criteria items for working capital finance approval? They include (but are not limited to!) clean balance sheets with tangible equity, income statements that demonstrate profits and key ratios that must be satisfied such as debt to equity and positive cash flow.

What then are the options? The gap it cash flow capital in Canada is filled by numerous non bank solutions. While these solutions almost always CANNOT match the cost of bank financing they do fill the gap nicely.

Typically these solutions include:

A/R Financing



Inventory Financing



PO Financing



Non bank ABL revolving lines of credit



Tax credit monetization



Mezzanine financing



Sale Leasebacks



Royalty/Revenue financing schemes - (relatively new)

These solutions tend to be specifically structured to your needs and are secured by the assets they finance. So at the end of the day the question that is faced by the business owner/financial manager is really the issue of the access to the financing needed, not the cost.

If you're looking to ' reboot ' your business with working capital finance solutions consider seeking out and speaking to a trusted, credible and experienced Canadian business financing advisor who can help you address issues of:

Alternatives



Cost



Time involved



That 'miracle' your business is looking for might just be around the corner.

Author:.

Stan Prokop is the founder of 7 Park Avenue Financial . The firm specializes in business financing for Canadian companies     in the areas of working capital , asset based lending, SR & ED tax credit financing, equipment financing,  franchise financing and banking .

 

See 7 Park Avenue Financial

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