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!