Explained : Commercial Loans In Canada : Basic Business Loan

Knowledge
Afraid To Ask How These 5 Tpes !f Business Loans "ork#
!$E%$IE" & Informa'ion on commercial loans in Canada ( "ha' does 'he 'pe
and )argon around *usiness loan a+aila*ili' mean 'o 'he owner,manager
Commercial loans availability for Canadian business owners/financial managers often
comes with terminology that confuses the benefits of a business loan with its actual
availability. Well demystify some of that jargon. Lets dig in.
Hopefully every business manager has some basics under his or her belt around areas
such as rate, collateral, personal guarantees, secured vs. unsecured, etc. hese are the
essence of the majority of Canadian business financing. !ot "nowing how to finance
your firm and where will often have the business being viewed as # unstable #
We can say that $ types of common business loans dominate the commercial lending
landscape in Canada. hey are%
Business Term Loans
Lines of Credi'
A,% -inancing
In+en'or -inance
E.uipmen' Leasing, commercial mor'gages
!aturally depending on your overall financing needs one or all these might actually be
applicable.
Business Term Loans & these are suited for longer term financing needs, and while
interest rates might be variable more often than not they are fi'ed rates and (&) year
terms while optimal for long term financing this method of financing your business is
more difficult to access.
*an"s probably provide the majority of term loans in Canada and insist, rightfully so, on
clean balance sheets, profits, and cash flows. + healthy dose of outside collateral on other
parts of the business or the owners personal assets might also be re,uired.
he one term loan that is a lot more accessible to entrepreneurs is the Canadian -mall
business loan & it.s a govt guaranteed loan that finances up to ($/" of e,uipment and
leasehold needs.
Lines of Credi' & Corporate credit lines revolve daily around the current assets of your
business, typically receivables and inventory. he strong alternative to ban" credit
revolving facilities is the +*L +sset based credit line & it is easier to obtain, provides
more li,uidity almost 001 of the time, and allows you to include all the assets of your
business as borrowing power.
A,% -inancing , In+en'or -inance & hese two . current assets are often the most
critical parts of your capital structure. 2utside the ban" environment these assets are
financing under wor"ing capital credit facilities. 3our ability to turn receivables as they
become due and manage inventory turns is "ey to the financeability of these two assets.
When it comes to receivables financing our recommended solution is C2!4567!5+L
87C759+*L7 45!+!C5!:, allowing you to bill and collect your own receivables and
borrow up to 0/1 of outstanding +/8 at any given time. 5t.s a solid alternative when ban"
financing isn.t available... or isnt enough.
E.uip' Loans /, 0or'gages & *illions of dollars of capital assets are financed in Canada
through e,uipment lease finance. ;sing independent commercial lease firms allow you to
access capital outside the ban" are strong sources of additional credit for any business
.here is really no upper or lower limit for asset financing via the e,uipment lease.
echnology needs are well suited to lease financing and provide business owners with a
fair amount of fle'ibility in asset ac,uisition and replacement.
5n business its critical to pic" the right debt or asset moneti<ation strategy, carefully
assessing how long you need the financing. Considerations should include your firms
overall credit ,uality, the amount of li,uidity you have, as well as restrictions demanded
by lenders under different loan scenarios.
-ee" out and spea" to a 'rus'ed1 credi*le and experienced Canadian *usiness
-inancing Ad+isor wi'h a 'rack record of success
to achieve the . survive and thrive . commercial loans your business re,uires. =nowing
the basics of our $ focus areas allows the owner/manager to access the right amount of
capital at the right time and to not feel vulnerable in both tough and good times.
2'an 3rokop & 4 3ark A+enue -inancial :
h''p:,,www(4parka+enuefinancial(com
*usiness financing for Canadian 4irms , speciali<ing in wor"ing capital, cash flow, asset
based financing , 7,uipment Leasing , franchise finance and Cdn. a' Credit 4inance .
4ounded >//? & Completed in e'cess of 0/ @illion A of financing for Canadian
corporations . Info ,Con'ac' :
4 3A%K A$E56E -I5A5CIAL 7 CA5A8IA5 B62I5E22 L!A5 E93E%TI2E
Ha+e A :ues'ion ,Commen' !n !ur Blog !r Canadian Business -inancing
Al'erna'i+es #
C!5TACT:
4 3ark A+enue -inancial
-outh -heridan 7'ecutive Centre
>0B/ -outh -heridan Way
-uite (/B
2a"ville, 2ntario
LCD )DE
8irec' Line F ?BC (B0 $)C0
!ffice 7 0/$ E>0 >C$(
Email F spro"opG)par"avenuefinancial.com
; Canadian Business -inancing "i'h The In'elligen' 6se !f Experience ;
2'an 3rokop