Business financing in Canada; what business owner / financial mgr doesn’t want to do the right thing when it comes to a finance plan for their company? If there’s any good news these days when it comes to solutions for eliminating finance challenges it’s that there is more choices than you might think. Let’s look at 6 of them. Let’s dig in.

There is of course a broad spectrum of finance services stretching from Canadian chartered banks / credit unions all the way to a whole new breed of alternative financing providers depending on the ‘ risk profile ‘ that your company demonstrates. Suffice to say that rates and terms and structures will vary widely, calling for an added element of expertise and investigation by you or your trusted Canadian business financing provider.

We note also that it’s a bit rare for a business to only utilize one method of financing the company. Various forms of debt based capital and asset monetization are usually required to address operating and growth. In general debt providers look to some form of equity being in place, but man alternative finance providers do not focus on equity – they look towards assets and cash flow, often making their solutions the only ones available when owner equity is stretched… or missing.

Let’s examine those 6 potential solutions.

Business banking – while banks provide the lowest rates and most attractive terms and structures the criteria they require to access capital may often be out of reach. To access proper chartered bank financing you need a very solid mix of profits, collateral, an appropriate amount of time in business, and owner guarantees that can backstop the financing. While the debate around business banking in Canada addressing your finance needs will continue owners who can meet the basic criteria will enjoy business credit lines and term loans in virtually an unlimited amount.

Asset Based Lenders – these are the new breed of lending in Canada, focusing on collateral such as your equipment, receivables, purchase orders , allowing you to gain access to business credit when your balance sheet or income statement don’t ‘ meet mustard’ for the banks

Equipment Leasing – If 80% of North American businesses utilize lease financing to acquire there assets surely they are on to something. The ability to acquire assets and not tie up cash is a key benefit in those lease finance solutions. Even used equipt can be financed.

Govt Small Business Loans – This is a classic recommended solution for many firms – providing bank type rates with non bank lending criteria – including start ups! Loans are guaranteed to the bank by the federal govt and are extremely flexible around repayment, amortization, etc. Recent limit changes are even more exciting! ( They have gone up!)

A/R Financing – Thousands of firms who view their receivables as a key asset employ invoice financing (Our recommended solution in this area is CONFIDENTIAL RECEIVABLE FINANCE) to cash flow their business. It provides unlimited financing possibilities as long as you have growing sales.

Cash Flow Loans – subordinated cash flow loans are a solid form of secondary financing – these loans rank behind your other secured creditors – in effect they are unsecured loans but require a solid demonstration of your ability to generate cash flow repayment .

If you’re looking to ‘ do the right thing ‘ in your Canadian business financing, banking and alternative finance choices seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you avoid disappointment when it comes to capital solutions to run/grow your business.