Is A Spanner Screwing Up Your Corporate Financing Needs? Alternatives And Business Loans In Canad

A ‘ Spanner ‘ in your business loans and corporate financing strategy. What a great term. It comes from a British saying which indicates a ‘ source or impediment ‘, The popular use of the term is a ‘ Spanner in the works ‘… oh and by the way, Rod Stewart had an album by the same name… but we digress.

Companies of all size run into spanners along the way. Some are controllable, some are external, and not. What are some of those?

They might include how you manage your cash flow, your overall working capital policy, taking on debt, managing the balance between debt and equity, consideration of buying a competitor, and what amount of capital you need for new assets. Talk about the potential for a lot of spanners!

In a lot of cases you’re corporate financing and access to business loans is also influenced by the industry you are in… Fortunately or unfortunately. A good example might be finding yourself exactly in the middle of the auto industry in the 2008 and 2009 timeframe. Not your favorite place to be in hindsight.

Factors that affect your ability to access business loans of course include profits, sales and cash flow. The actual amount of receivables you hold and their relationship to your sales and borrowing decisions is key in corporate financing.

Companies in Canada have a lot of different methods under which to finance their business – we’re e often surprised at clients who don’t know all their options, which include:

Receivable Financing/ Securitization
Inventory Finance
Equipment Leasing
Supply Chain/PO finance
Bridge Loans
Canadian Chartered Bank Facilities
ABL Asset Based Lending
Royalty Financing
Tax Credit Monetization
Cash flow loans
Subordinated Debt

and on it goes, there are even more!

The business owner and financial manager needs to know which tools work, when, and what they cost. It’s important to ensure you are using the right corporate financing tool for your stated goals.

To ensure you can eliminate those ‘ Spanners’ its critical to have a good handle on what stage of business your company is in , how you will use the funds, and how your company is leveraged, i.e. the debt and equity relationship .

What’s interesting is that we hear everyday there is a huge amount of capital available for Canadian business, but doesnt it seem that the challenges to access that financing are larger than ever . To our clients it sure seems that way.

Don’t let a spanner get in the way of your business financing needs, or the knowledge of access to those financing alternatives.

If you are looking for tools or help in corporate financing, business loans and asset monetization consider speaking to a trusted, credible and experienced Canadian business financing advisor who can help you knock out those ‘ Spanners ‘.