It's not always Happy Talk! When it comes to Canadian business financing and commercial credit in Canada we can learn a lot about the mistakes we and others have made in the past, right. We're full of sayings today, but our other favorite is that there is a lot of tuition to be paid in the school of business experience.
In many cases when it comes to business finance a mistake can be corrected - the worst case is of course business failure, bankruptcy,etc Those experiences make business owners and managers shall we say... ' resilient '.
Securing financing improperly is one of the worst mistakes your business can make. And that doesn't necessarily mean rate, it means structure and purpose of the financing. And when you don't know how and when to raise capital or monetize assets that just compounds the problem.
From your lenders perspective itâEUR(TM)s all about risk and the amount they are willing to take with your business. So you become a winner when you obtain the financing you want and your bank or commercial finance firm feels they have not taken excessive risk. That's a great point to remember.
To make their loans and financing ' less risky âEUR~banks and other finance firms make ask for personal assets as collateral. While in many cases that can't be avoided the business owner should take great caution to over collateralize their lender. That mistake becomes very costly in the even of a business failure.
Matching the right term to your financing is critical. Remember that a bank or finance company, Lease Company, etc always feels less certain about a longer term. Why? Simply of course because the long term future is uncertain for any business.
Zev Wolmark : is a knowledgeable and adviser in the field of finance. He has worked with several massive names and respected personality within the domain for his resolution providing talents, in toughest of matters. For more information visit us @ twitter.com.
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