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 of Love

START-UPS TAP A BIG POTENTIALIF BUSINESS is your first love, the coming time is yours to woo. The hesitant flirting the Indian entrepreneur started with February 14, St. Valentine’s Day, a few years ago has now turned into a fullfledged affair. Varied trades spruce up their offers in the run-up to the Festival of Love, which industry experts say has become the second-biggest business opportunity in the calendar, even surpassing Diwali and New Year. Businesses, so it seems, aren’t falling behind the changing festival mix of Indian youth.For K Vaitheeswaran, who co-founded online retailer Indiaplaza, business around valentine’s Day has been growing by leaps since 2006. “Direct spending on Valentine’s day is nearly 30-40% more than Diwali, making it a rich opportunity for retail entrepreneurs to boost their topline,” he says. From gifts, candies to expensive gadgets, Indiaplaza helps lovers exchange articles through the internet, across boundaries and even away from their parents’ eyes. The first time Indiaplaza tried to cash in on Valentine’s Day was in 2002, but it was a washout then, with not much ‘awareness’ about the day.In 2003, there were protests and agitations over Valentine’s Day celebrations across the country, Mr Vaitheeswaran recalls. But the tough beginning was soon followed by a surge in the day’s appeal and business started to boom. “(The protests) created more excitement about the day’s importance. And because the protests were offline, people switched to the ecommerce website to send their gifts across. Thereafter, the sales started showing a rising trend on this festive day,” he says.According to US National Retail Federation, US consumers alone spent nearly $13.7 billion last year on Valentine’s Day shopping. This was a 22% rise from the past five years. As for the domestic market, an independent study on the consumer markets in India, presented at the 2007 International Marketing Conference, suggests that the Western fancy has started to take roots in Indian markets as well. The study noted that Valentine’s Day sales in 2007 were about 15% higher than that during Diwali at these retail outlets and this is expected to increase by 20-25% in 2008.Only the Christmas season rings in bigger revenues. And it seems entrepreneurs in the country clearly aim to boost the day into first place as more and more start-ups start to capitalise on the opportunity.Despite the pressure to buy gifts, most of the money spent on V-Day this year would keep up the trend set in the previous years. Spending would go to tokens of affection – cards, candies, flowers and nightouts. Floricultural start-up Ferns ‘N’ Petals, for instance, is gearing up for the Cupid’s arrival in a manner unlike any other. Apart from selling flowers, Vikaas Gutgutia’s company is banking on service as a major differentiator for this year. The company has planned to offer midnight delivery service, in addition to selling cakes and chocolates with its flowers on Valentine’s Day. It is also offering its customer the choice of buying gold-plated flowers. Says Pawan Gadia, vice-president at Ferns ‘N’ Petals, who jump started the company’s much-touted franchisee model, “Product innovation for such days is the key to success. You always have to think what different can you do this year which would excite the customer. A mundane run-of-the-mill product line each year does not help when you are working in such a business environment.” F’N'P is hoping to increase its Valentine’s Day sales by 40% this year, adds Mr Gadia.What is a day of gifts without cards? According to Anil Moolchandani, founder & MD of Archies, Valentine’s Day sales account for nearly 12% of the company’s full-year sales, making it the single-biggest occasional sale period for his company. “The trick is to promote and market as much as you can when your business is linked to an occasional sale,” he says. “Essentially, occasional sales help you build a brand presence and to add to this with more and more companies joining the occasional bandwagon for this day, it is becoming easier for any start-up in this space to cash in on the Valentine’s Day sales,” he adds.Archies, founded in 1979, introduced its first Valentine’s Day card in 1984 and it took sustained marketing efforts till 2000 for this occasion to “become critical mass for the company,” recalls Mr Moolchandani. Somebody once wondered cheekily why Valentine’s Day comes exactly nine months before the Children’s Day on November 14? The guys who make it all happen, the matrimonial websites, are also tapping into the business potential of Valentine’s Day.Bharat Matrimony, one of India’s largest matrimony websites, sees the day as a raw material for its business. Says Murugavel Jankiraman, founder and CEO, “We are planning to ramp up the promotional activities around Valentine’s Day period considering that online activity for our website picks up around this period. Unlike other festival days, Valentine’s Day is connected directly to our core business, and it always helps to use such events, which directly relate to your core business as effective marketing tools.”Like Bharat Matrimony, luxury bags maker Baggit too plans to leverage on this opportunity, “More than anything else, it’s an occasion to gift and dress up and clearly a fashion brand would see synergies in that. In fact, we are timing our sale this year on February 12, very close to Valentine’s Day,” says Baggit founder Nina Lekhi. “In case you have a product targeted for the youth, Valentine’s Day would be the point to test response to a particular campaign, which you might want to roll out on a larger scale later,” she adds. In short, what has worked for these entrepreneurs is the packaging of their products. “On days like the Valentine’s Day, there may be little sale in terms of quantity for many business start-ups, but the trick is to fix yourself a niche area and make it high margin business for yourself, as events like Valentine’s Day do not tend to be mass market phenomenon,” says Mr Vaitheeswaran. “With Love’s Light Wings Did I O’erperch These Walls,” said Shakespeare’s Romeo to his sweetheart Juliet.For a start-up with aspirations to make a big mark on the competitive business stage, Valentine’s Day can give wings and plant a kiss of success on the entrepreneur’s cheeks of desire.

What Are The Greatest Changes In Shopping In Your Lifetime

What are the greatest changes in shopping in your lifetime? So asked my 9 year old grandson.

As I thought of the question the local Green Grocer came to mind. Because that is what the greatest change in shopping in my lifetime is.

That was the first place to start with the question of what are the greatest changes in shopping in your lifetime.

Our local green grocer was the most important change in shopping in my lifetime. Beside him was our butcher, a hairdresser and a chemist.

Looking back, we were well catered for as we had quite a few in our suburb. And yes, the greatest changes in shopping in my lifetime were with the small family owned businesses.

Entertainment While Shopping Has Changed
Buying butter was an entertainment in itself.
My sister and I often had to go to a favourite family grocer close by. We were always polite as we asked for a pound or two of butter and other small items.

Out came a big block of wet butter wrapped in grease-proof paper. Brought from the back of the shop, placed on a huge counter top and included two grooved pates.

That was a big change in our shopping in my lifetime… you don’t come across butter bashing nowadays.

Our old friendly Mr. Mahon with the moustache, would cut a square of butter. Lift it to another piece of greaseproof paper with his pates. On it went to the weighing scales, a bit sliced off or added here and there.

Our old grocer would then bash it with gusto, turning it over and over. Upside down and sideways it went, so that it had grooves from the pates, splashes going everywhere, including our faces.

My sister and I thought this was great fun and it always cracked us up. We loved it, as we loved Mahon’s, on the corner, our very favourite grocery shop.

Grocery Shopping
Further afield, we often had to go to another of my mother’s favourite, not so local, green grocer’s. Mr. McKessie, ( spelt phonetically) would take our list, gather the groceries and put them all in a big cardboard box.

And because we were good customers he always delivered them to our house free of charge. But he wasn’t nearly as much fun as old Mr. Mahon. Even so, he was a nice man.

All Things Fresh
So there were very many common services such as home deliveries like:

• Farm eggs

• Fresh vegetables

• Cow’s milk

• Freshly baked bread

• Coal for our open fires

Delivery Services
A man used to come to our house a couple of times a week with farm fresh eggs.

Another used to come every day with fresh vegetables, although my father loved growing his own.

Our milk, topped with beautiful cream, was delivered to our doorstep every single morning.

Unbelievably, come think of it now, our bread came to us in a huge van driven by our “bread-man” named Jerry who became a family friend.

My parents always invited Jerry and his wife to their parties, and there were many during the summer months. Kids and adults all thoroughly enjoyed these times. Alcohol was never included, my parents were teetotallers. Lemonade was a treat, with home made sandwiches and cakes.

The coal-man was another who delivered bags of coal for our open fires. I can still see his sooty face under his tweed cap but I can’t remember his name. We knew them all by name but most of them escape me now.

Mr. Higgins, a service man from the Hoover Company always came to our house to replace our old vacuum cleaner with an updated model.

Our insurance company even sent a man to collect the weekly premium.

People then only paid for their shopping with cash. This in itself has been a huge change in shopping in my lifetime.

In some department stores there was a system whereby the money from the cash registers was transported in a small cylinder on a moving wire track to the central office.

Some Of The Bigger Changes
Some of the bigger changes in shopping were the opening of supermarkets.

• Supermarkets replaced many individual smaller grocery shops. Cash and bank cheques have given way to credit and key cards.

• Internet shopping… the latest trend, but in many minds, doing more harm, to book shops.

• Not many written shopping lists, because mobile phones have taken over.

On a more optimistic note, I hear that book shops are popular again after a decline.

Personal Service Has Most Definitely Changed
So, no one really has to leave home, to purchase almost anything, technology makes it so easy to do online.
And we have a much bigger range of products now, to choose from, and credit cards have given us the greatest ease of payment.

We have longer shopping hours, and weekend shopping. But we have lost the personal service that we oldies had taken for granted and also appreciated.

Because of their frenetic lifestyles, I have heard people say they find shopping very stressful, that is grocery shopping. I’m sure it is when you have to dash home and cook dinner after a days work. I often think there has to be a better, less stressful way.

My mother had the best of both worlds, in the services she had at her disposal. With a full time job looking after 9 people, 7 children plus her and my dad, she was very lucky. Lucky too that she did not have 2 jobs.