Business Loans In Canada: Financing Solutions Via Alternative Finance & Traditional Funding

Business loans and finance for a business just may have gotten good again? The pursuit of credit and funding of cash flow solutions for your business often seems like an eternal challenge, even in the best of times, let alone any industry or economic crisis. Let’s dig in.

Since the 2008 financial crisis there’s been a lot of change in finance options from lenders for corporate loans. Canadian business owners and financial managers have excess from everything from peer-to-peer company loans, varied alternative finance solutions, as well of course as the traditional financing offered by Canadian chartered banks.

Those online business loans referenced above are popular and arose out of the merchant cash advance programs in the United States. Loans are based on a percentage of your annual sales, typically in the 15-20% range. The loans are certainly expensive but are viewed as easy to obtain by many small businesses, including retailers who sell on a cash or credit card basis.

Depending on your firm’s circumstances and your ability to truly understand the different choices available to firms searching for SME COMMERCIAL FINANCE options. Those small to medium sized companies ( the definition of ‘ small business ‘ certainly varies as to what is small – often defined as businesses with less than 500 employees! )

How then do we create our road map for external financing techniques and solutions? A simpler way to look at it is to categorize these different financing options under:

Debt / Loans

Asset Based Financing

Alternative Hybrid type solutions

Many top experts maintain that the alternative financing solutions currently available to your firm, in fact are on par with Canadian chartered bank financing when it comes to a full spectrum of funding. The alternative lender is typically a private commercial finance company with a niche in one of the various asset finance areas

If there is one significant trend that’s ‘ sticking ‘it’s Asset Based Finance. The ability of firms to obtain funding via assets such as accounts receivable, inventory and fixed assets with no major emphasis on balance sheet structure and profits and cash flow ( those three elements drive bank financing approval in no small measure ) is the key to success in ABL ( Asset Based Lending ).

Factoring, aka ‘ Receivable Finance ‘ is the other huge driver in trade finance in Canada. In some cases, it’s the only way for firms to be able to sell and finance clients in other geographies/countries.

The rise of ‘ online finance ‘ also can’t be diminished. Whether it’s accessing ‘ crowdfunding’ or sourcing working capital term loans, the technological pace continues at what seems a feverish pace. One only has to read a business daily such as the Globe & Mail or Financial Post to understand the challenge of small business accessing business capital.

Business owners/financial mgrs often find their company at a ‘ turning point ‘ in their history – that time when financing is needed or opportunities and risks can’t be taken. While putting or getting new equity in the business is often impossible, the reality is that the majority of businesses with SME commercial finance needs aren’t, shall we say, ‘ suited’ to this type of funding and capital raising. Business loan interest rates vary with non-traditional financing but offer more flexibility and ease of access to capital.

We’re also the first to remind clients that they should not forget govt solutions in business capital. Two of the best programs are the GovernmentSmall Business Loan Canada (maximum availability = $ 1,000,000.00) as well as the SR&ED program which allows business owners to recapture R&D capital costs. Sred credits can also be financed once they are filed.

Those latter two finance alternatives are often very well suited to business start up loans. We should not forget that asset finance, often called ‘ ABL ‘ by those Bay Street guys, can even be used as a loan to buy a business.

If you’re looking to get the right balance of liquidity and risk coupled with the flexibility to grow your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist you with your funding needs.

S&P 500 Rallies As U.S. Dollar Pulls Back Towards Weekly Lows

Key Insights
The strong pullback in the U.S. dollar provided significant support to stocks.
Treasury yields have pulled back after touching new highs, which served as an additional positive catalyst for S&P 500.
A move above 3730 will push S&P 500 towards the resistance level at 3760.
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Pfizer Rallies After Announcing A Huge Price Hike For Its COVID-19 Vaccines
S&P 500 is currently trying to settle above 3730 as traders’ appetite for risk is growing. The U.S. dollar has recently gained strong downside momentum as the BoJ intervened to stop the rally in USD/JPY. Weaker U.S. dollar is bullish for stocks as it increases profits of multinational companies and makes U.S. equities cheaper for foreign investors.

The leading oil services company Schlumberger is up by 9% after beating analyst estimates on both earnings and revenue. Schlumberger’s peers Baker Hughes and Halliburton have also enjoyed strong support today.

Vaccine makers Pfizer and Moderna gained strong upside momentum after Pfizer announced that it will raise the price of its coronavirus vaccine to $110 – $130 per shot.

Biggest losers today include Verizon and Twitter. Verizon is down by 5% despite beating analyst estimates on both earnings and revenue. Subscriber numbers missed estimates, and traders pushed the stock to multi-year lows.

Twitter stock moved towards the $50 level as the U.S. may conduct a security review of Musk’s purchase of the company.

From a big picture point of view, today’s rebound is broad, and most market segments are moving higher. Treasury yields have started to move lower after testing new highs, providing additional support to S&P 500. It looks that some traders are ready to bet that Fed will be less hawkish than previously expected.

S&P 500 Tests Resistance At 3730

S&P 500 has recently managed to get above the 20 EMA and is trying to settle above the resistance at 3730. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If S&P 500 manages to settle above 3730, it will head towards the next resistance level at 3760. A successful test of this level will push S&P 500 towards the next resistance at October highs at 3805. The 50 EMA is located in the nearby, so S&P 500 will likely face strong resistance above the 3800 level.

On the support side, the previous resistance at 3700 will likely serve as the first support level for S&P 500. In case S&P 500 declines below this level, it will move towards the next support level at 3675. A move below 3675 will push S&P 500 towards the support at 3640.

Online Business Ideas – The 7 Fundamental Ideas For Online Business

If you spend even a small amount of time surfing the Internet then you are going to find many different online business ideas and before long it can become quite overwhelming. Just like anything new, there is going to be so much information available but the problem is always knowing which information to listen to and which to ignore; this article covers the 7 fundamental online business ideas which you will come across online.The thing to keep in mind is that each of these ideas will manifest itself in many different forms but no matter what type of online business you are looking to set up you will find that it fits into one or more of these online business ideas. They are the fundamental building blocks of any online business and a good understanding of them will give you the start that most people never have.The 7 Fundamental Online Business IdeasEach of the following online business ideas are based around the 7 different ways of actually making money online. Whatever business you decide to start online it will fit into one of more of the following categories:AdvertisingThe first of the online business ideas is advertising and with this idea you will look to setup a website in some kind of niche. You can then put advertisements on this site that are related to the niche content you have based it around. The key to this idea is making sure you get your targeting right otherwise you are simply going to annoy people who come to your site by trying to advertise them something totally unrelated to their needs; this is a fundamental error and something you should be very cautious of before you even start.ServicesWith this idea you will setup a website that offers some kind of service to people who visit. Now this can be varied from an online gambling site that offers the gambling service to people right through to an online presence for your offline business.The main difference with the latter is that you can either simply use it as an online marketing tool for your offline business or you can totally automate it so that you use your offline brand name to create an entirely separate online business.SubscriptionsThis is my favourite of the online business ideas because it is extremely scalable and in essence fairly easy to setup. There are however a few things to consider before starting this type of model. You need to make sure that whatever you are offering a subscription to has very good content otherwise you can get yourself a bad reputation before you’ve even started. Secondly you need to monitor the subscriptions in detail and offer technical support for anyone that may have problems getting access.ProductsThis idea is fairly self explanatory, you setup a website where you sell products online. These products can be your own products or ones you buy in from a supplier, the only real difference will be the margin you make on each one. Also, it will take longer to get traction with your own products whereas others will probably already have brand awareness.CommissionsThe commissions model is similar to the products model but in this case you simply promote other peoples products and direct them to their website. You have your own affiliate code so that when anyone buys their product you get paid a commission. Effectively you are acting in the same way as a normal offline salesman on commission.LicensingOut of all the online business ideas, this one is probably the most confusing and I have certainly seen it explained in a variety of different ways and unfortunately most of them are incorrect. This idea can come in two different forms, you can either be a licensee or a licensor. In the former case you will take someone else’s brand and use it to promote your own products which you will then sell for a premium online. In the latter case you are the one with the brand that other people license off you and you get paid a fee based on this.This is quite an in depth concept and we have really just touched the surface with this article.Being a BankWhen you look at the different online business ideas you will probably struggle to come up with this one. What I mean by being a bank is that you effectively offer people lines of credit through various mediums online. Once again, this idea can be hard to understand at the beginning but becomes clear when you research in depth.You will have most likely seen companies offering checkout facilities online where you can pay for goods and services through some kind of online transaction. When you look into what actually goes on in this process then you will start to see how this model works but essentially you are being paid interest on money you allow people to borrow for varying periods of time.