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.

10 Steps to Starting a Small Business

IntroductionIf you are looking for the most effective way of starting a small business without spending a lot of wasted money and time, this article is a great place to start. The advice you get from this article may be a totally new way of approaching your new small business. As I provide each of the following steps, I will give you very good reasons for why this method is the best. I provide business planning services for many new small businesses. In so doing, a business plan is often an essential aspect of getting funding.The Secret To Starting A Successful Small BusinessLet me tell you the one single factor that will assist you in obtaining funding – Customers! If you already have customers before you go to banks, friends, colleagues or relatives for money, I assure you that your efforts in raising money will be greatly reduced. I cannot tell you how many times that I have been really excited about new business ideas that my customers have brought to me. I can tell you this though, that the banks see dozens of new business ideas every day. Dozens… Their excitement level is measure a little differently.How To Get Small Business FundingYou know what the only thing banks get excited about?… Money and only money. The closer your are to making profitable sales when you ask for funding is the only way that you are going to get heads nodding behind walnut desks. Imagine yourself going to a bank dressed in your best business outfit for a loan. Think about how truly confident you would be in asking for this money, when you know that you already have the names of customers that would purchase your product now if you just had funding.How To Get Customers Before You Have A BusinessesSo you may be wondering how will you have customers before you have a business. The answer is that nearly any business that you can conceive of now has informational products that can be purchased on the internet. Whether it is a farm, auto shop, hair salon, or home improvement. These businesses all have audio or video or e-book products that can be sold on the internet that complement these businesses. How about a video product that you sell to women entitled “How to Maintain Your Hair Between Hair Appointments,” or audio podcast program series for farmers to listen to on “Advanced Crop Yield Methods” while they are busy on the tractor. All of these can be created and sold easily on the internet with a simple website. So the idea is to move into the info business first, then formalize the business into its fuller implementation after proof of concept.So let me me summarize the 10 steps to starting a small business:10 Steps To Starting A Small Business1. Market ResearchWhat is market research? Simply stated, market research is knowing that the number of customers you think are out there for your product really exist. To translate your product into customers, it is only essential that you identify the keywords that characterize your customers’ Google searches. You can easily get these numbers free through the use of the internet. Google’s AdWords Keyword Tool (adwords.google.com/select/KeywordToolExternal?defaultView=2) is easy to use and after you get a free account, it is awesome in getting quantitative data to know 1) how many people are looking for what you want to sell 2) how many competitors already are out there. Once you have a website done in the next step, you can use the brand new Google Search Based Keyword Tool (google.com/sktool/#) to refine your market research. If you have a website type in your url and your keywords.2. Build WebsiteYou website initially needs to do only two things – 1) let others know that you exist and who you are 2) communicate to them that you know their needs in terms of what are their pains and desires and how you product is absolutely the best solution for them in the world. Your website does not need to cost more than $1,000 and can be put together in a matter of days (not weeks or months). If you want to do it yourself, you can use Word Press or call us.3.Traffic and PromotionUse Google Analytics to track the number of visitors to your website to ensure that you are getting the attention to your message that they deserve. Before you get people to your site, you will need to do some promotion to ensure that this happens. There are a lot of ways to do this, but having the website 1) optimized for on-page manageable factors (meta tags, title, attractive web address (url)) and 2) getting a large number of back links to your website are the most controllable factors.4. Build List of Customers – Email opt-inWhen customers get to your website, this is where you want to get the big prize – the customer list. In order to get a list of customers, you offer them a free written, audio or video product that provides some truly valuable information to them in exchange for the their e-mail address and name. It is important to note that you will only get a sustainable business if you provide something of significant value as a “give away” at this point. I have seen many – free PDF reports, “how to” audios or videos that are really useful. Make sure that your is too. You can use Aweber or Constant Contact as auto-responder services to obtain the e-mail addresses. These are services that provide the website scripts, capture e-mail lists, provide confirmation e-mail and provide information product.5. Sell Affiliate ProductsAfter you create your website, you will go and find products that are already available that you can sell as an affiliate. What is an affiliate? An affiliate is someone (you) that is selling into a niche market that understands the needs of the customers and can sell products created by someone else. Who is the someone else? Many – Amazon, Commission Junction, Clickbank. Nearly every big internet retailer has an affiliate program. Look at the bottom of their home page for the words “affiliate” or “associate.” They provide the whole shopping experience and you get a small commission for doing so. They will give you the tools to list these products attractively on your website with html scripts that are easily implemented.6. Create information productsNow that you have a good idea of who your customers are and what they want, you can easily create your own information products in writing (e-books), audio or video. All it takes is the ability to write, record, film and edit this information in a near professional manner. The content of these products is what is really important. This process sounds very complex, but can be made very simple by someone that does this on a day-to-day basis.7. Sell own informational products and through affiliatesNow that you have your own information products, you can sell your products on your website and also through affiliate programs such as Clickbank and Commission Junction. You will need to augment your website to allow products to be listed, purchased and to accept payment. Since you are now the vendor of these products you will also need to create a purchase, return and shipping policies (if either of these applies). Most customers will want to know about these things before they purchase from you and often will not purchase until they know that you are reliable and that their money is well spent with you.8. Create business planNow that you have proven your business concept on an informational level (and at an affordable level of investment I might add), you are in a much better position to judge for yourself whether this business is investment grade. What is investment grade in this case? The answer to this comes in the form of another self-question: Would you bet that you will get a good return on the money that you are asking others to invest? There are many good business plan templates available for free. All it requires is to get basic questions answered in each section and to formalize into an attractive and readable document.9. Get fundingGet dressed up as appropriate for the money people. If they are bankers, dress in a suit. If they are family or friends, dress as friends or family. If they are colleagues, dress as a colleague. Be professional and honor their time. Make sure that you keep their interest by asking yourself what is in it for them. That is all that matters to them. For family matters, the issue is a little bit different. They will be concerned with family solidarity. In other words, what would happen if you could not pay them back? Would this permanently disrupt your relationship with them? Think about this before you go to them. When you get money there are two questions you will always need to answer for them up front 1) what will you use the money for? 2) from what source will you pay the money back? Know these answers.10. Formalize business organizationThis is the part that most people think about when they think about starting a business. Do you find it strange that this would be the 10th step in this process? Don’t worry, most other people would too. However, doesn’t it make more sense to formalize the business after it is making money first and then to formalize it? When I speak about formalizing the business, I am talking about 1) creating an appropriate legal entity (corporation, limited liability corporation or other) within your state or country 2) create tax status with the tax authorities 3) publicly announce the business formation through public recording or periodical announcements or both 4) get a checking or bank account. Note that I am not advocating subverting tax or legal guidelines…as a matter of fact I am suggesting that you follow the rules, through making your business profitable first.In SummaryThat is all there is to it. What else is there left to business than that? A business is nothing more than delivering answers to problems (pains or desires) of customers and doing so while making profitable sales. Creating new products is just using lateral thinking to create other related products that meet the needs of customers. And what a great life that is….help other people while you make money.Follow me on Twitter – http://twitter.com/frank_dobner© Copyright – 2008 Frank Dobner

Coupling Inbound Marketing With Your Online Reputation Management

Unlike how it was in the past, marketing has changed dramatically over the years. Although traditional marketing still exists and is very important to the overall process, inbound marketing is essential at this point and pairing it with your increased reputation is a natural choice.Having a fresh, novel approach to marketingWith traditional marketing, you have to go after your customers. You have to educate them about what they want and need and you have to convince them that you have what they cannot live without. That often involves a lot of interrupting and it often leaves the customer (or potential customer) feeling irritated and put upon. On the other hand, more modern marketing (inbound marketing) takes the opposite approach in many ways. First of all, with inbound marketing, you don’t go after your customers and potential customers. You get your customers to come to you. Because of that approach, those customers and potential customers are prescreened and prequalified. You don’t have any need to twist their arms. They come to you willingly and happily.Another positive feature of inbound marketing is that you will not have to eat up most of your budget to accomplish your goals. Inbound marketing costs very little. With traditional marketing, in all likelihood, you would have been forced to spend a great deal of money in order to accomplish what you set out to do. Because of that, if you owned a small or even medium-size company, you would have had a difficult time competing with larger companies from a marketing perspective. Of course, what follows that is your professional reputation. The more successful you are at causing a stir and getting people to know you and to eventually buy your offerings (after they have believed in your credibility, trustworthiness, and expertise), the better your professional reputation will become.Marketing to the appropriate peopleWhen it comes to your marketing efforts for your business, it is important to choose the most appropriate target audience possible. Your target audience must be interested in what you have to say and in what you can do for them. They must also want to be in the market to buy what you are selling and to feel that you are the best person from whom to buy that particular product and/or service. Additionally, the usual traditional (outbound) marketing approach may no longer work for you. Another thing to keep in mind is the fact that when it comes to outbound marketing efforts, the target audience has gotten very clever about thwarting your efforts. They can block your advertisements, they can put themselves on a “Do Not Call” list, etc. In other words, they have ways of avoiding you entirely.On the other hand, inbound marketing can be extremely effective and, if you do it correctly, your target audience members may not even be aware that you are trying to sell them anything at all (not even at some point in the future). When it comes to inbound marketing, the approach that the technique takes is concentrating on drawing people, converting prospects to eventual customers, closing the sale, and satisfying those customers on a long-term (or permanent) basis. Inbound marketing creates solid, enduring relationships that last for very long time and are mutually beneficial. Those relationships create a very positive feeling between the other people and you. Again, along with successfully marketing your brand, your reputation will also get a boost and it will become stronger and stronger. Inbound marketing will general more online traffic, it will create new leads, and it will allow you to ultimately increase your revenue.How do you ensure that your inbound marketing campaign is successful?The best way to ensure that your inbound marketing campaign is successful is by writing and posting top-notch content. You want to share content that is well written, innovative, insightful, and amazing to the point where other people feel compelled to share it with people they know and trust. If your content was done correctly, it will answer all of your target audience’s questions (even the ones that they haven’t asked yet). In fact, you want them to seek the answers automatically from you. If you can get them to that point, you will be good to go.Making loyal customers from target audience membersWhen it comes to the nature and approach of inbound marketing, it is important to understand that the relationship and interactions between human beings is at the heart of it. Your target audience members are critical to your professional success; however, on some level, it is even more critical that you create loyal customers who will stick with you for a very long time to come. If you can create brand champions, you won’t have anything to worry about.ConclusionUsing inbound marketing to help boost your professional reputation is a brilliant thing to do. Inbound marketing is a proven, successful, intelligent approach to marketing your brand. It is very easy to learn how to use it and it is extremely effective. You will start to see positive results within a relatively short amount of time. Outbound marketing is an approach that interrupts the target audience members to get your point across. It is a hard approach and, although it works well when paired with inbound marketing, it often doesn’t work so well by itself. On the other hand, inbound marketing has tremendous benefits for everyone involved (on both sides of the fence).