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.

SPDN: An Inexpensive Way To Profit When The S&P 500 Falls

Summary
SPDN is not the largest or oldest way to short the S&P 500, but it’s a solid choice.
This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.
SPDN’s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.
Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.
We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.
Put a gear stick into R position, (Reverse).
Birdlkportfolio

By Rob Isbitts

Summary
The S&P 500 is in a bear market, and we don’t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or “just hang in there” while the bear takes their retirement nest egg.

The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.

SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.

Strategy
SPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.

Proprietary ETF Grades
Offense/Defense: Defense

Segment: Inverse Equity

Sub-Segment: Inverse S&P 500

Correlation (vs. S&P 500): Very High (inverse)

Expected Volatility (vs. S&P 500): Similar (but opposite)

Holding Analysis
SPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.

Strengths
SPDN is a fairly “no-frills” way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the “market” goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.

Weaknesses
The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.

Opportunities
While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.

Threats
SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.

Proprietary Technical Ratings
Short-Term Rating (next 3 months): Strong Buy

Long-Term Rating (next 12 months): Buy

Conclusions
ETF Quality Opinion
SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.

ETF Investment Opinion

SPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.

Exploit Internet’s Amazing Marketing Powers: 4 Most Important Tips

We are living in the age of Internet Marketing, also known as Content Marketing. Here, online visibility is a must, to stay on top and relevant, and make more money.
If you don’t have a good web presence, and aren’t busy promoting and expanding your business, via effective Internet Marketing, you won’t survive for long.What’s Internet Marketing?It’s the new age marketing of a business or brand and its products and services over the Internet, through different tools, employing content, e-mails, search and paid media strategies, to help drive traffic, leads and sales.
Internet Marketing techniques are mostly organic by nature, but these (the techniques) could be paid as well.
Organic internet marketing may not lead to great results instantly, but it would help businesses grow and expand eventually, if done the right way.Content Marketing is the FutureAs per a study, 91% of businesses, across the globe, believe that Internet Marketing is an indispensable and exciting marketing tactic.
Content Marketing involves offering valuable, readable and steady content. It’s the marketing of the present and future.
It stimulates, educates, and guides prospects, and builds trust, authority and connections. When it happens, and when you offer help and value to your customers and prospects, they reward you by becoming your customers and utilizing your products & services.Content Marketing vs. Traditional MarketingContent Marketing is Inbound Marketing and not Outbound Marketing, also called Traditional Marketing. By and large, the latter is interruptive, obstructive, and invasive, besides being costly.
A research shows that, presently, 615+ million devices in the world have adblockers.
What does it mean?
It means traditional marketing may not be very effective.
As per another study, Content Marketing or Internet Marketing is 62% less costly, vis-à-vis the traditional marketing though it pulls over 3 times more business and profits.Visuals & Videos RuleVisuals–in the form of exciting videos and infographics–are comparatively more powerful in attracting new customers and others. Brain processes visuals 60,0000 times faster than texts.
As per another report, people are consuming over 500 million hours of video content daily across the globe.
In an age where majority of us suffer from attention-span problem, it certainly pays to make videos and visuals–that informs, empowers and entertains–a crucial element of our content creating & promotion strategies.
Online videos swiftly increase awareness, stays top of mind with new customers, and also leads to conversions from high-intent viewers.
These also give any brand the power to reach, engage, and convert its most prized audiences in the right moments – whether they’re exposed to a completely new brand for the first time, or are just a few minutes away from striking a deal, and making a purchase.
When brands are present and useful in those moments, the chances of results following are high.4 Exciting Tips for Successful Content MarketingTo harness the amazing powers of Internet Marketing, in the most fruitful way, make Search Engine Optimization (SEO), grammar & spelling, storytelling, and videos an important part of your overall content marketing strategy.1. SEO: Optimize your content for better visibility and improved performance on the Search Engine Result Pages (SERPs). If your content fails to find a place on the first page, it won’t lead to the results you could be keen in.2. Grammar & Spelling: Ensure that your blogs and articles are grammatically correct, and have the right spellings. A piece of content–with glaring grammatical errors and misspellings–won’t’ impress your readers and prospects even as your brand’s value will diminish.3. Stories: Master the art of storytelling for higher traction. Most of us love stories. If there’s a beautiful and inspiring story woven cleverly in your piece, it will pull the ‘emotional trigger’, and lead to better ‘connections’ with your readers and prospects.4. Videos: As per a report, in India, online video is behind over 70% of the nation’s total data usage. As the nation’s online population continues to increase, so will the figure of the video-famished consumers, browsing the web. So, use videos and attractive designs to create persuasive visual content!Summing-up, make Internet Marketing a vital cog in your business establishment and expansion wheel. Follow the marketing strategy tips shared to make more money, and get the best possible business results.