Canada’s Business Capital Solutions: Accessing proper cash flow and commercial financing

Canada’s business capital requirements often boil down to the basics of what the owner/financial manager/entrepreneur must address when financing businesses.

One of these truths is: It is important to know the truth about their financial situation and which financing options they have available for them when it comes time to meet Canadian commercial lending requirements.

Canada Business Loans

We have three mistakes commercial loan seekers need to avoid when trying to source, negotiate and manage their cash flow/working capital and commercial financing needs.

1. Understanding the real state of your company’s finances is key. Spend time looking at your financial statements and understanding how they reflect your access to business loans & credit.

2. You should have a plan for growth in sales and financial requirements as they relate to commercial financing.

3. Know the hard facts about cash flow, which is, of necessity, the lifeblood for your company

Are you able to honestly answer all three points? If you can answer yes, then pass this and get $ 100.00

It is important to understand your company’s financial plans. This includes understanding growth finance solutions and how to manage in a downturn. Not growing, losing money, etc. It is never fun to fund yourself during an industry or economic downturn like the 2020 COVID pandemic.

Clients of established and new businesses seem to be almost always discussing sales. It is important to understand the differences between their cash flows and profits so that they can focus on them.

How does cash flow, sales projections and cash flow affect the type and amount of financing you need? One thing is certain, sales growth starts with consuming your cash and not creating it. Poor finance plans can bring down your business and it will become more difficult to address financing.

When you are searching for the right financing and capital, there are three things that will always be apparent.

1. How much financing you require

2. The type of financing you choose (debt/cashflow/asset monetization), will have a dramatic impact on the interest rate for your business loan. Private business loans are available from Canadian non-regulated commercial finance companies, also known as “alternative lenders”. These lenders specialize in a specific niche of business financing. They may be Canadian banks or branches of non-bank lenders.

3. How the financing structure is designed to work with your day-to-day operations

What Canada Finance Company Can Help You Meet Your Borrowing Requirements & Why is Capital Important In Business

Let’s discuss the key financings that your company should be aware of and how they can help your business. These include:

A/R Financing / Factoring / Confidential Receivable Finance

Floor planning/Inventory finance/Retail inventory

Working Capital term loans

Unsecured cash flow loans

Merchant working capital loans/advances are loans that are designed to meet short-term cash needs. They are usually one-year in length. The loan amount is typically between 15-20% of your annual sales revenue.