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Start Up Sources Of Finance In Canada : Early Stage Financing Is Your

New BFF
Is Start Up & Growt Financing !eeping You Up "t Nigt
O#E$#IE% & Infor'ation on start up sources of finance for Canadian (usiness
owners and entrepreneurs ) Early stage financing is callenging witout tis
infor'ation
Start up sources of finance in Canada easily keep the business owner/entrepreneur up at
night. Let's dig in.
Is anything more uniquely challenging than financing needs of a startup? Is it even
possible that early stage financing could turn out to be as they say your new !""?
#othing is truer than the fact that capital acquisition chances are less certain in an early
stage environment
$ey to understanding the ' capital raise' is ensuring your business has a suitable match of
debt and equity. %he good news is that when you are up and running many sources of
capital to moneti&e assets and sales are fairly plentiful. %hey typically include debt and
asset moneti&ation vehicles that allow you to generate internal cash. %hose typically
include'
*O + Contract financing
,oneti-ation of S$&E. ta/ credits 0 tese (ridge loans are a great way to cas flow
refunda(le ta/ credits under te go1t $&. progra' for tose tat file clai's
$ecei1a(le Financing + In1entory Finance
"sset (ased credit lines tat turn recei1a(les+in1entory+ard assets into on single
(usiness line of credit
%hose ( methods are ' asset moneti&ation' strategies ) also available is debt in the form of
a Go1t s'all (usiness loan or a wor2ing capital ter' loan from Canada's crown corp.
bank.
*any business owners some of whom are ' newbies+ are not ,--. sure of the amount of
financing they require much less they could get approved for. /otential clients we meet
who state ' as much as we can get ' simply require... well... you guessed it... a lot of work.
%he proven way to calculate the amount of start up financing you need is to prepare a
proper opening balance sheet and cash flow pro0ection. /roperly complete it will give you
a strong handle on the inflows/outflows as well as most importantly the timing of the
funding you will need ) either in term debt for new assets or for business credit line
needs.
1ales typically drive cash flow needs so being realistic in your forecast is key. 2n old
mentor
of ours once said ' I #3435 *3% 2 /5673C%I6# I 8I8#'% LI$3'.
Can a realistic even conservative pro0ection fail? It can if it doesnt allow for the timing
of working capital flows. !usinesses in the 1*3 sector can generate a lot of cash more
than they might think by proper management of receivables payables and utili&ing
sources of funds such as equipment leasing. It's then that the owner/manager must
consider e9ternal capital. 2nd as e9pensive as debt might seem to small or emerging
businesses it+s always cheaper than diluting ownership equity.
If you're in search of the right amount of start up growth and early stage financing for
your businesses seek out and speak to a trusted3 credi(le and e/perienced Canadian
(usiness Financing "d1isor wit a trac2 record of success who 0ust might be the
bridge to your new !"" ) solid start up sources of finance.
Stan *ro2op ) 4 *ar2 "1enue Financial :
ttp:++www)4par2a1enuefinancial)co'
!usiness financing for Canadian "irms speciali&ing in working capital cash flow asset
based financing 3quipment Leasing franchise finance and Cdn. %a9 Credit "inance .
"ounded :--( ) Completed in e9cess of ;- *illion < of financing for Canadian
corporations . Info /Contact '
4 *"$! "#ENUE FIN"NCI"5 6 C"N".I"N S7"$7 U* + E"$5Y S7"GE
FIN"NCING E8*E$7ISE
9a1e " :uestion +Co''ent On Our Blog Or Canadian Business Financing
"lternati1es ;
CON7"C7:
4 *ar2 "1enue Financial
1outh 1heridan 39ecutive Centre
:;,- 1outh 1heridan =ay
1uite >-,
6akville 6ntario
L?7 @7A
8irect Line B (,? >,; C@?;
6ffice B ;-C A:; :?C>
3mail B sprokopD@parkavenuefinancial.com
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Stan *ro2op