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.

Business Loans In Canada: Financing Solutions Via Alternative Finance & Traditional Funding

Business loans and finance for a business just may have gotten good again? The pursuit of credit and funding of cash flow solutions for your business often seems like an eternal challenge, even in the best of times, let alone any industry or economic crisis. Let’s dig in.

Since the 2008 financial crisis there’s been a lot of change in finance options from lenders for corporate loans. Canadian business owners and financial managers have excess from everything from peer-to-peer company loans, varied alternative finance solutions, as well of course as the traditional financing offered by Canadian chartered banks.

Those online business loans referenced above are popular and arose out of the merchant cash advance programs in the United States. Loans are based on a percentage of your annual sales, typically in the 15-20% range. The loans are certainly expensive but are viewed as easy to obtain by many small businesses, including retailers who sell on a cash or credit card basis.

Depending on your firm’s circumstances and your ability to truly understand the different choices available to firms searching for SME COMMERCIAL FINANCE options. Those small to medium sized companies ( the definition of ‘ small business ‘ certainly varies as to what is small – often defined as businesses with less than 500 employees! )

How then do we create our road map for external financing techniques and solutions? A simpler way to look at it is to categorize these different financing options under:

Debt / Loans

Asset Based Financing

Alternative Hybrid type solutions

Many top experts maintain that the alternative financing solutions currently available to your firm, in fact are on par with Canadian chartered bank financing when it comes to a full spectrum of funding. The alternative lender is typically a private commercial finance company with a niche in one of the various asset finance areas

If there is one significant trend that’s ‘ sticking ‘it’s Asset Based Finance. The ability of firms to obtain funding via assets such as accounts receivable, inventory and fixed assets with no major emphasis on balance sheet structure and profits and cash flow ( those three elements drive bank financing approval in no small measure ) is the key to success in ABL ( Asset Based Lending ).

Factoring, aka ‘ Receivable Finance ‘ is the other huge driver in trade finance in Canada. In some cases, it’s the only way for firms to be able to sell and finance clients in other geographies/countries.

The rise of ‘ online finance ‘ also can’t be diminished. Whether it’s accessing ‘ crowdfunding’ or sourcing working capital term loans, the technological pace continues at what seems a feverish pace. One only has to read a business daily such as the Globe & Mail or Financial Post to understand the challenge of small business accessing business capital.

Business owners/financial mgrs often find their company at a ‘ turning point ‘ in their history – that time when financing is needed or opportunities and risks can’t be taken. While putting or getting new equity in the business is often impossible, the reality is that the majority of businesses with SME commercial finance needs aren’t, shall we say, ‘ suited’ to this type of funding and capital raising. Business loan interest rates vary with non-traditional financing but offer more flexibility and ease of access to capital.

We’re also the first to remind clients that they should not forget govt solutions in business capital. Two of the best programs are the GovernmentSmall Business Loan Canada (maximum availability = $ 1,000,000.00) as well as the SR&ED program which allows business owners to recapture R&D capital costs. Sred credits can also be financed once they are filed.

Those latter two finance alternatives are often very well suited to business start up loans. We should not forget that asset finance, often called ‘ ABL ‘ by those Bay Street guys, can even be used as a loan to buy a business.

If you’re looking to get the right balance of liquidity and risk coupled with the flexibility to grow your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist you with your funding needs.

Health and Nutrition

What are nutrients?Every molecule in the body is created by Nutrients & there are more than 45 nutrients. These nutrients build molecules, cells, and tissues of the body.We get energy from Carbohydrates, proteins, and fats that we eat.These are called macronutrients. These macro nutrients are broken down / metabolized to give energy to the body.Vitamins and minerals (called micronutrients) are not themselves metabolized for energy, but they are important in helping the macronutrients convert to energy.What is a healthy diet?The optimal diet has to be individualized to meet your unique needs. The United States Department of Agriculture (USDA) food pyramid suggests that we use fat “sparingly,” and that our daily diet include 2 – 3 servings of dairy products; 2 – 3 servings of meat, poultry, fish, eggs, beans, or nuts; 3 – 5 servings of vegetables; 2 – 4 servings of fruit; and 6 – 11 servings of bread, cereal, rice, or pasta.These are general guidelines. Healthy diet is dependent upon many factors like: age, gender, body size, pregnancy, and status of health. A clinical nutritionist or nutritionally oriented doctor can help you determine what type of diet is best for you.While you know it is important to eat a healthy diet, it isn’t always easy to sort through all of the information available about nutrition and food choices.Nutrition has a vital importance to human well-being. Nutrition should play a leading role to improve our quality of life. Nutrition is a key for reducing your body fat percentage.Better nutrition means stronger immune systems, less illness and better health. Better nutrition is a prime entry point to ending poverty and a milestone to achieving better quality of life. Safe food and good nutrition are important to all.Basic nutrition knowledge is constantly taking shape every day, producing new diet trends to an ever growing audience of people who want to know the latest and greatest ways to achieve their physical fitness goals.Get nutrition facts and discover how you can use dietary recommendations to improve your health. As you grow older, getting a nutritionally rich diet becomes even more important. The link between nutrition and health is necessary to achieve optimal health.Good nutrition is a clear path to optimize our quality of life. An important starting point for achieving optimum health is to achieve optimum nutrition and get the proper nutrients from the food.Diet and nutrition are the principle preventive measures against diseases.Reading labels and eating a diet rich in vitamins and nutrients is optimal for healthy nutrition. Research confirms that good nutrition in the early years of life is crucial for human growth and mental development.The study of human nutrition dates back to the 18th century, when the French chemist Lavoisier discovered that there was a relationship between our metabolism of food and the process of breathing.The field of clinical nutrition has evolved into a practice that is increasingly incorporated into mainstream medical treatment. The term “nutritional supplement” refers to vitamins, minerals, and other food components that are used to support good health and treat illness.A clinical nutritionist or nutritionally oriented doctor can help you determine what type of diet is best for you.During the initial part of the visit, the clinical nutritionist will ask you questions about your medical history, family history, and personal lifestyle.In hospitals, nutrition is used to improve the overall health of patients with a wide range of conditions. Effects of exercise and nutrition on postural balance and risk of falling in elderly people with decreased bone mineral density: randomized controlled trial pilot study.Healthy LifestyleHealthy people are stronger, are more productive and more able to create opportunities to gradually break the cycles of both poverty and hunger in a sustainable way.Healthy eating is associated with reduced risk for many diseases, including the three leading causes of death: heart disease, cancer, and stroke. Healthy eating is fundamental to good health and is a key element in healthy human development, from the prenatal and early childhood years to later life stages.Healthy eating is equally important in reducing the risk of many chronic diseases. We spend a lot of money on food, but there are ways to cut costs and still serve healthy delicious meals.When you choose healthy foods instead of sugary or high-fat foods you can actually improve your health by adding extra phytochemicals and fiber. Breakfast foods should be healthy but they have a tendency to be high in fats and sugar.We always hear that breakfast is the most important meal of the day, so why ruin a healthy breakfast.Good nutrition is vital to good health, disease prevention, and essential for healthy growth and development of children and adolescents. Fiber is an important part of a healthy diet.Many of us work very hard to eat healthy meals, but struggle with the urge for candy, cookies, cakes, ice cream and anything else full of sugar and sweetness. Most experts agree that snacking is a part of a balanced and healthy diet, as long as the snacks don’t pile on empty calories.When your best efforts go awry, and you order pizza or serve another meal that doesn’t exactly fit into a healthy diet, you still have many options for making it healthier. Just about everyone knows that fruits and vegetables are a very important part of a healthy diet.Having a well-stocked pantry and refrigerator can be a busy cook’s best weapon in the war against resorting to fast-food, high-fat, unhealthy meals. Fresh oil is a source of essential fatty acids, which help keep the skin healthy and the hair shiny.We believe eating sensibly, combined with appropriate exercise, is the best solution for a healthy lifestyle.FoodsWhen you choose healthy foods instead of sugary or high-fat foods you can actually improve your health by adding extra phytochemicals and fiber. The goal is to balance negative foods with positive foods so that the combined rating for all foods eaten in a single day is positive.If you want to restrict your caloric intake without feeling hungry, find foods highest in any vitamin or mineral or lowest in carbs, saturated fats, or sugars. Our general state of health is partially driven by the types of foods we consume.To make vegetable oils suitable for deep frying, the oils are hydrogenated, so trans fats are commonly found in deep-fried foods such as French fries and doughnuts. Trans fats, beyond a limit, are not good for our health.Hydrogenation solidifies liquid oils and increases the shelf life and the flavor stability of oils and foods that contain them. Other sources of trans fats are vegetable shortenings, some margarines, crackers, cookies, snack foods, and other foods.Since trans fats increase a products shelf life, many pre-prepared foods and mixes (for example, some pancake mixes and pizza dough) contain trans fats.The solution: Whenever possible, eat whole, fresh, and unprocessed foods. When buying packaged foods, put in at least as much time into reading labels and selecting products as you do when choosing a shower gel or shampoo.A good diet is central to overall good health, but which are the best foods to include in your meals, and which ones are best avoided.Fast food has become much more popular of late and all over the world the outcry regarding harms of fast foods is on increase.Be aware that there is little scientific information about the effect of so-called functional foods –foods to which vitamins, minerals, herbs, or other dietary substances are added — despite their growing popularity in the market place and claims of beneficial effects.Some common foods, including nuts, wheat gluten, dairy products, fish, shrimp, soy, bananas and eggs may trigger allergic reactions.FatFats add taste to meals and give one a feeling of fullness when eaten. When you choose healthy foods instead of sugary or high-fat foods you can actually improve your health by adding extra phytochemicals and fiber.Breakfast foods should be healthy but they have a tendency to be high in fats and sugar. The human brain is almost entirely composed of unsaturated fatty acids.You deprive yourself of more than fats when you go for the fat-free or low-fat salad dressing. We need fats to absorb all the beneficial elements of salads and other fruits and vegetables. Learn which are the right types of fats, to create beautiful, supple skin, and a healthy body.Eating more whole foods is a good way to replace many of the processed snacks and foods that have a lot of extra sugar, fat (including trans fat), salt, and other things added to them and a lot of good things taken out, like fiber.In addition to food labeled fat-free and low fat, healthy low fat foods include most fruits and vegetables.Carbohydrates, proteins, and fats (called macronutrients) are broken down (metabolized) to give the body energy.For example, lowering fat and cholesterol intake and adding whole grains to the diet can prevent atherosclerosis (plaque buildup in the arteries), which can lead to heart disease or stroke.Fish is high in omega-3 fatty acids, which are essential components of cells and can protect the heart from, for example, fatal arrhythmias (abnormal heart rhythm). Omega-3 fatty acids found in cold water fish (such as herring, tuna, and salmon) have been reported to reduce inflammation and help prevent certain chronic diseases, such as heart disease, cancer, and arthritis.Safe food and good nutrition are important to all. Basic nutrition knowledge is constantly taking shape every day, producing new diet trends to an ever growing audience of people who want to know the latest and greatest ways to achieve their physical fitness goals.Did you know that you can drastically decrease your chance of heart disease and cancer by eating a healthy diet and following the recommended nutrition guidelines?Proper nutrition is a powerful good: people who are well nourished are more likely to be healthy, productive and able to learn.Good nutrition benefits families, their communities and the world as a whole. Malnutrition is, by the same logic, devastating.