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.

The Rise of Telecommunications Services in the Developing World

Telecommunications services have become a ubiquitous presence in our modern times, with cell phones and computers as our main tools for communication. In the United States, Europe, and other developed nations, we seem to take for granted the access we have to these devices and the ease at which we can acquire them. For third world and developing nations, the availability of these services lags behind, which has a palpable effect on their economies and quality of life. Research, however, has indicated that these nations are catching up.Consider that in 2005, about 2 billion people had a mobile or cellular subscription service. At the end of 2014, 7 billion people had some type of subscription, with 3.6 billion in the Asia/Pacific region alone. In terms of percentages, that is about 96 percent of the world’s population.When viewed through the lens of developed versus developing nations, research indicates that there are 128 subscriptions per 100 people in developed nations, versus 89 per 100 people in developing countries. While there remains room for expansion in developing nations, the rate of subscription growth has reached its lowest levels in a decade, meaning the market is approaching a saturation point.Telecommunications services also include access to the Internet, which has a much smaller reach when juxtaposed with cellular services. Three billion people are online, which represents about 40 percent of the world’s population. For developed nations, 78 per 100 people use the Internet, versus 32 per 100 people in developing nations. This is a much bigger gap than the one seen in cell phone usage, indicating these nations still have a long way to go. Of the 1.1 billion households not connected to the Internet, 90 percent are in developing countries.How can these nations catch up? Luckily, due to the expansion of telecommunications services and companies, broadband prices have dropped significantly over the past decade. In obvious economic terms, the cheaper the product, the wider the accessibility. Africa is notably the farthest behind in terms of broadband connectivity, with the continent accounting for 0.5 percent of the world’s fixed broadband subscriptions.Telecommunications companies are beginning to enter Africa, as many of its nations are emerging economic markets. With investment from the telecommunications industry, it is more than probable that access to the Internet will gradually climb similarly to that of the cellular market. While it is unlikely that these countries will reach the connectivity of the developed world, the level of infrastructure for communications will improve drastically with outside investments pouring in. Consider the case of Nigeria: about a decade ago, there were 100,000 phone lines, mostly landlines operated by the state-run company NITEL. That company folded, and now there are over 100 million mobile phone lines.In a world where quick, easy, and mobile communication is the norm, it is important to these nations to reach modern levels of telecommunications. It is hugely significant for their economies and also for simple access to information. The Internet and cellular phones have condensed the size of the world, allowing us the ability to communicate with anyone at any time.

There is an excessive amount of traffic coming from your Region.

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