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.

Is Online Education the Right Choice for You?

Online education has gained a lot of popularity in the world in recent years and has been known to provide enhancements to face-to-face learning systems.Online learning programmes can help you find multiple advantages that you cannot get even through on campus learning. A web based education course is sometimes less expensive and much more flexible than an on campus course. It can enable students to get a degree right from their home with the same quality of education you get from traditional on campus colleges.Take a look at a few things to see whether an online education is right for you or not.· A student’s job opportunity increases as they go for higher education. This means better salaries, more job offers from big companies and more opportunities for organizational growth. A student will have to research to see what kind of degree he would like to pursue and whether it is available through online course or not before deciding on online learning programmes.· The quality of a traditional brick and mortar classroom and a virtual classroom is the same. You follow the same course subjects and finish it in the same time length, so don’t believe people who think online learning is a waste of time.· Most students prefer online education because they do not have to travel miles to reach the academic venue; rather you can access the virtual classroom through your computer. The time not spent in travelling can be utilized in learning.· Before selecting an online college from a myriad of virtual platforms on the internet, check the credibility and experience of your online institute. Enroll in those online education programmes that are accredited and can increase your resume’s value.· Before making the decision to join a college, make sure that the university meets all of your requirements, be it the budget, location, courses and subjects, and even accreditation. Make sure that the university you sign up in provides the best option for you and can help you get training to advance in your chosen line of career.· Before starting your online classes, take out the time to familiarize yourselves with your university’s learning management system (LMS) and exactly how it works. Also brush up on your basic computer skills like spreadsheets and presentation slide creation. Since you will be spending most of the time on the internet when taking your class, ensure that you have a fast and reliable internet connection.

Obama’s Custom Social Network

The recent years have seen a lot of entrepreneurs moving to online platforms to grow their business. Specifically, by using social media websites to establish a profile and brand for their company online. The importance of using social networking sites has become apparent to business owners, but unfortunately a lot of bad advice is out there on how to grow a custom social network.I’ve spent five years studying and participating in social networking websites, and can tell you that most of the “new” advice out there on social media marketing is wrong! In fact, “experts” are having you chase around things that can have little growth affect on your business. So what’s the key to social media success? To use social networking websites to build and foster a community!One of the most important justifications I’ve ever seen behind this was with Barack Obama’s 2008 political campaign. The election was the first to massively use social networking sites to connect with people. No matter what your political views are, his case is a case worth studying when trying to figure out how to launch your social networking campaign.His campaign leaders recognized the importance of social networking (which later polls would show was one of the key reasons he won) early on in the election. They went out and actually hired one of Facebook’s co-founders, Chris Hughes, to run the online portion of their campaign. Now remember, we are dealing with a people who had millions of advertising dollars at hand, and almost unlimited resources and technology to reach out to people. Hughes, however, knew what Facebook (and all social networking sites) was designed for and launched a different campaign idea.His main focus was to build a strong social community around Obama. He set up the main website for Obama as its own custom social network, allowing people to register and design profiles based around the candidate, and to invite their friends to participate. Hughes knew the importance of viral marketing, and the importance of giving people the controlled power to promote their thoughts and ideas (centered on the candidate’s ideas). Hughes made sure that all of Obama’s Facebook, Twitter, pod casts, and other social media forums reflected the same goal, to build an online community for the offline election.Now, Hughes did use paid advertising on Facebook, but only after the initial community had been set up. The secret to Barack Obama’s online success was through building an online community around his ideas and campaigns. Hughes knew that social networking websites were designed for people to interact in online communities, and structured Obama’s presence accordingly. When you build a community around your business, you’re giving people the power to do all the work for you, like in Obama’s case.As Obama’s campaign ended, Chris Hughes came forward with the numbers he generated for the campaign. The users on his website had created more than 2 million profiles, partook in the planning of over 200,000 offline events, formed 35,000 separate groups, posted nearly 400,000 blogs, and raised $30 million on 70,000 personal fund raising pages.Instead of trying to sell to the community that is already online looking for your product or service, you need to become a part of that community, as the expert (or a expert) in your niche. Once you have established a community around your business, you will be able to grow (and sell) your business in ways that people only imagined before.-Jerry Nihen