March 30, 2023

Steps To Commercial Business Financing Options

In Canada, a number of non-bank, specialized finance companies offer options for business financing. They offer a variety of corporate solutions, each of which helps you meet your cash flow and working capital goals. In fact, they are the solution to the problem of “no bank financing.”

The challenge for business owners and financial managers is figuring out who these sources are, what they can do for your company, and how to get in touch with them. In fact, there are specific requirements in many industries and businesses.

Senior and junior considerations should be taken into consideration when selecting the appropriate form of business financing for your company! What do we mean when we say that? Simply put, a senior lender will require all of your company’s security, which is typically handled by a document known as the G S A – General Security Agreement. After that, finding other non-monetizable cash flow and debt solutions becomes difficult.

Canadian chartered banks are an excellent illustration of a senior lender. Asset-based lenders, on the other hand, provide businesses with greater flexibility while allowing them to draw on a variety of their company’s assets when that source of capital is unavailable.

Your company may require a “bridge loan” in some circumstances to address temporary capital shortages and serve as a “bridge” to future refinancing.

One of the specialized asset lenders that can finance new and used equipment, as well as software, are leasing companies. Despite the fact that many businesses believe they are eligible for VC or private equity financing, they are not good candidates. After investing a lot of time and money in venture capital and equity, many business owners and financial managers discover that they are not prepared for this type of capital solution.

Is there a conclusion? We think so. All we’re saying is that alternative non-bank lenders are a great option if you need debt and cash flow solutions from a commercial finance company.

What kinds of financing are possible with the help of alternative lenders? In fact, there are a lot of them, and business solutions like receivable financing, asset-based business lines of credit, tax credit financing, sale leaseback strategies, franchise loans, and receivable financing—also known as “factoring”—are all available. When looking for a non-bank commercial finance company in Canada, you should talk to a reputable, experienced, and successful Canadian business financing advisor.

Stan has worked for some of the largest and most successful businesses in the world over the course of his career.

Stan has worked as a finance and business executive for more than 40 years. As a credit/financial executive for three of the world’s largest technology companies, he has received recognition for his work; Digital Equipment, Hewlett-Packard, and Cable & Wireless He has been crucial in assisting numerous businesses at every stage, including financing, sales and marketing, mergers and acquisitions, and human resources. Stan has worked with public and private companies.

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