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Dear Abby: We’Re Confused About Sources And Types Of Business Loans - Signed: Anxious In Canada

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Dear Anxious In Canada: There's no question that the right financing sources and business loans can deliver on that ' healing power' that the business owner / financial manager needs to propel the company to that 'next level' of sales and profits. In some cases that might even mean a turnaround from less fortunate circumstances. Let's dig in.

Top experts in Canadian business financing constantly stress the ' conservatism' of our banks and major financial companies and institutions. That conservatism is probably justified when it comes to start up and early growth firms and the good news here is that many ' niche' financial solutions are available for those categories of financing.

Even the govt steps in re start ups, franchises, etc and offers the Govt Guaranteed Business Loan, making billions accessible for early stage and smaller firms with revenues less than 5 Million dollars.

What are the key factors that the owner/manager needs to have under his or her hat in order to access a financing source that makes sense? Ask yourselves the following questions, and being honest helps!

Do you know the minimum and maximum amount of financing your business needs?

Can you properly identify the right stage your business is in re growth potential?

Do you feel 100% comfortable in positioning your company for the right type of financing if in fact you were aware of those business loans and asset monetization facilities that make sense?

If you have a lot of time to waste then a recommended strategy is to approach all financial institutions that offer business finance.

Putting our sarcasm aside it's key to know that banks and commercial finance firms are very focused on specific sizes, offerings, and credit quality. So it should be very clear you should be working with someone that knows which commercial lenders are 100% interested in providing your firm financing you require.

While Canadian chartered banks are by far the best bet when it comes to cost and access to capital being established financially is key. Banks will look at your key issues such as your capacity to borrow, how much debt you have already, and what collateral and general business conditions exist in your company and industry.

Numerous financing sources exist outside the bank in Canada - they offer:

A/R Financing

Inventory Finance

Working Capital Term Loans

Tax Credit Monetization Financing

Govt Guaranteed Business Loans

PO/Contract financing

Sales royalty financing

Asset based business credit lines - revolving facilities that allow you to borrow against receivables, inventory and equipment

Equipment Leasing/ Sale Leasebacks

If you're focused on that ' healing power' achieved in proper business financing seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in eliminating confusion around business loan achievability.

Stan Prokop [http://www.7parkavenuefinancial.com/stan-prokop]
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