Business Finance In Canada: Stop Struggling With Loan Needs Via These Financing Sources

Business finance in Canada comes with a lot of challenges : While Jeff Cooper in 1989 was definitely not talking about financing sources and loan prospects in the Canadian marketplace he seems to have invented something that could well benefit business owners/financial mgrs.

That ‘ invention’? He’s credited with encouraging the mind set of Code Yellow… allowing you to understand you might be in danger. His suggestion? Move to a ‘Code Orange ‘ mindset – that which you’re prepared to take action! Let’s examine ‘ Code Orange’ in business financing! Let’s dig in.

Knowing how much funding you require, and where to do for that funding is the essence of proper capital needs. Do you realize that those funding sources are in effect boiled down to 3 essential areas, with numerous options within those?

The three areas? Internal cash flow via better asset turnover and profit and margins. 2nd: Supplier/vendor/payable finance strategies. 3rd – banks and commercial finance companies.

Your business is ‘ well run’ when you use the right combo of debt and owner equity. Debt and asset financing depends also on the size and stage of growth your business is in. When we meet with clients it relatively easy to identify what type of financing will work best for their current need. In fact 10 types come to mind. They include:

A/R Financing

Inventory Finance

Sale Leasebacks

Equipment finance

P O Financing

SR&ED Tax credit finance

Bank Credit Lines / Non Bank Asset based credit lines

Sales/Royalty Finance

Cash Flow loans

Govt Guaranteed Small Business Loans

It’s in fact ‘ where your company is now ‘that really will determine which of these finance solutions will solve your current critical need.

Winning in business finance in Canada is really all about successfully planning ahead for your growth and operating needs. It’s that mgmt mindset that moves you from Code Yellow to Code Orange!

The challenge exists because most top experts agree that no perfect financing exists, but some solutions are better than others for the current time. That’s also where a cash flow forecast will always help you determine what your financing path is. It shouldn’t seem a mystery to the business owner/mgr that different banks and commercial finance firms are in fact looking for your business.

In summary? You will move to Code Orange ( take action ) by ensuring you are know why and when you need funding, as well as determining the best cost and optimal use of funds. If you want to better understand what stage your business is in and what sources of funds are available seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you eliminate the struggle for proper business financing.