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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.

You might think that if the economy is so bad, what hope have I got with an internet business or digital business. Well, the first thing to remember is that a digital business has to potential to sell products and services to people from all over the world. So the best online business to start is one that has a wide appeal – although not too wide as the competition might be too strong.To start an internet business you do not need a lot of technical skills nor do you need to spend a lot of money to get started. But what is the best online business to start?Start an online business about something that you are interested inThe best online business to start is one that is about something that interests you. It is going to be very challenging for you to keep your enthusiasm going if you are trying to start a business about, say, computer games, and you have no interest in computer games what so ever. When you start your own online business you are going to have good days when everything goes right and days when everything goes wrong. When things go wrong or when people get stuck, it is normally the time that people give up on their business idea. But, if you enjoy and believe in your product or service you will be more determined to keep going.Make your online business easy to understandWhen people look for information on products or services on the internet they jump from website to website very quickly. You have to make sure that when somebody visits your website that they can instantly see and understand the benefits of the products or services that you are offering. Your products and services should solve problems for your target audience, or make life easier for them. If they do not see how your business will help them, they will move on to another website, never to return.The best online business to start will need some investmentIt is important to remember that your online business is a business and not a hobby. Some people still think that they can somehow have some sort of website that will cost them nothing but earn them millions. These ‘push button, get rich quick’ programs do not work. Whilst the set up costs for a legitimate internet business are a lot less than a traditional bricks and mortar business, it will need investment for such items as a website, hosting, marketing and training and education.Proven success recordIf you have been looking on the internet for the best online business to start, you will have found many different and tempting business proposals. Before you jump in, do check a few things. Make sure you check the quality of the product or service that you are going to promote. Ideally you should buy it to test it yourself to make sure that it is a genuine and viable product. Check the history of the business. Look into their previous and present sales data, their marketing systems and other people’s experiences with them. Remember that your online reputation is very important and if you try and sell rubbish, it will be very difficult to repair a tarnished reputation.Education and trainingThe best online business to start is one that provides you with regular training and updates to ensure that you can provide the best possible value to your customers. It is also important to have a mentor. This person will be able to guide you and help you avoid any mistakes that will have made when they started their business. Your business will find success quicker with proper guidance.Finding the best online business to start does require some work upfront and there is no ‘one size fits’ all solution. However, if you follow the points above you will be well on your way to online business success.

In these tough economic times, many people find themselves short of cash and in need of an immediate loan. Payday loan companies often provide the ideal solution to emergency circumstances. These companies allow customers to take a loan out against their next expected paycheck. The loan has to be paid back with interest once the person is paid. The loans do not generally require a credit check, and often customers can receive cash in one hour or less. The interest demanded upon payment of the loan is often higher than with a traditional loan, so these loan services should only be used in case of emergency.The best payday loan company to use depends upon your needs and circumstances. You should never use a payday loan company as a permanent solution to your financial problems. If you find yourself requiring a payday loan on a regular basis, you should examine your budget to find a better solution, as interest payments will begin to eat up a substantial portion of each paycheck. If you do require cash in an emergency, however, you should try to find a place that promises a wait time of an hour or less. The last thing you need during a financial crisis is the stress of waiting for a long time to see if your loan will go through.Distance is also a factor when choosing a payday loan center to use for your emergency cash needs. Gas is expensive nowadays so you don’t want to be driving across town if it is not necessary to do so. Also, if your loan company is located too far away, you will find yourself reluctant to visit it when it is time to pay back the loan.Many payday advance companies are now doing business online. This method is not recommended because it is too easy for identity thieves or other scammers to create websites that mimic legitimate businesses. These people will steal your money or credit information instead of giving you the loan you have applied for. If you do choose to use an online payday advance company, make sure the website provides a phone number that you can contact to verify that the site is legitimate.Whether you use an online company or visit a physical address, the process for receiving a 1 hour cash advance is generally the same. Upon arrival, you will be asked to fill out a simple application form. The company usually will not run a credit report, although a few do; make sure to ask or check the FAQ online if this is a concern. Along with your application, you have to provide verification of income such as a check stub, and of course you will have to give the loan officer your driver’s license to verify your identity. Once the application and supporting documents have been received, you will be given your money. Online companies usually deposit the money directly into your bank account, while physical locations often give you cash.On your application, you will usually be asked to indicate when you are receiving your next paycheck. Your loan payment will be due on this date. You are required to pay the loan in full, including interest. It is important to pay these loans back on time. Many payday advance companies take a post-dated check for the amount of the loan, and if you do not have funds in the account to cover that check you can be arrested for writing bad checks. Even if companies do not take this step, they can sue you for the amount of the loan. Finally, interest continues to accumulate until the loan is paid back, so you could find yourself owing a far greater total than expected should you make a late payment.Payday loans can result in high interest charges, but in difficult economic times people often find themselves without other recourse. It is important to use payday loans appropriately and to pay them back in a timely manner to avoid extra fees.