WELCOME !

Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.



Thursday, December 6, 2012

Sources Of Business Capital In Canada . Financing Your Company From Startup Capital To Advanced Growth Stages







The Reality Of Business Financing In Canada. Opening the Coffers !




OVERVIEW – Information on sources of business capital in Canada . Financing a startup to advanced growth stages requires these types of expertise and information




There are, of course, limits to the sources of business capital financing that your firm can achieve in the Canadian business environment. And by the way, that pertains to whether you are a startup or a more mature company looking for advance growth.

Those limits are about the amount of equity you might be able to put in, or raise, and of course the debt levels and type of external financing that you can be approved for. Issues such as personal guarantees and the amount of debt your firm can manage become paramount.

In some cases the amount of capital you in fact are eligible for may be directly tied to personal assets and guarantees. There is a goal here of course, and that’s to ensure that personal guarantee and personal asset liquidation never happens. A very simple rule of thumb? .... Just ensure that your assets are rising commensurate with your personal guarantees. And don't forget to ensure some sort of liquidation calculation and cost is included in your analysis.

Lenders in Canada, bank and non bank by the way tend to want a lien on as many assets as can be negotiated. More often than not that comes in terms of a ' GSA ' - The general security agreement that covers all your assets. While your main lender typically will always have this other lenders might jockey for this also.


Rates often become big issues when it comes to all capital. What you expect to pay and what might be charged often becomes a harsh reality.
So what can the Canadian business owner and financial manager expect when it comes to ' rates ' in various sources of business capital. Rather that talk about specific rates we can offer this - you can expect to pay very high rates for investors, merchant banks, venture capital, etc.

Lowest rates are achieved through traditional bank facilities, leasing, asset based lenders, etc. And additionally those rates will be commensurate with the amount of capital you need. Whether business owners know it or not they are generally put into a category - those categories include start up, early stage growth, mid market, and mature larger corporation.

That is one of the reasons we have chose not to get into specific rates for approximately 15 types or sources of business capital. To clarify, while your firm might be eligible for an asset based line of credit your rates will vary depending on what stage of financial progress your company is in. Good example - business lines of credit are available for rates anywhere between 5% per annum to 1.5-2% per month. The qualifier? Simply the amount of capital you need and the overall financial position of your company and its owners.

So if there is a theme or a ' bottom line ' today it’s simply that you need to take a hard look at what stage your company is in. That ' stage ' will control the amount and rate of financing you can achieve.

Oh, yes, we almost forgot! Those sources of business capital. They include:

Friends and Family
Banks
Government SBL Loans
Asset based lenders
Bridge loans
Lessors
Mezzanine/cash flow lenders
Merchant banks


Etc!

Speak to a trusted, credible and experienced Canadian business financing advisor on which coffers are available to your firm, at what rate, and under what terms. That's the reality of business finance in Canada.


7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS FINANCING ACCESS!


Stan Prokop
- founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sources-business-capital-financing-startup.html



7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com

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