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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 CanadaWhether 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 general2. Ensure you have a plan in place for sales growth and financial needs as it relates to commercial financing3. Understand that actual hard facts about cash flow which is, of course, the lifeblood of your companyCan 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 need2. 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 lenders3. How the financing is structured to be manageable with your day to day operationsWhat Finance Company In Canada Can Meet Your Borrowing Needs & Why Is Capital Important In BusinessLet’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 FinanceInventory finance / floor planning / retail inventoryWorking Capital term loansUnsecured cash flow loansMerchant 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 financeAsset based non bank business lines of creditTax 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.

In the not so distant past when you walked into a pharmacy needing to get a prescription filled you would have, in most instances, found that your prescription was actually filled by the on duty pharmacists. However, over the past few years a change has occurred in the pharmacist arena and that change is, “a pharmacist probably no longer filling your prescriptions”. Although pharmacists are on duty wherever medications are dispensed; today in most instances, a pharmacy technician or pharmacy assistant are the ones filling prescriptions.Pharmacy Technicians and assistants have existed for some time but their roles have evolved for a variety of reasons. A big reason is that they help to reduce health care costs because they get paid much less than a certified pharmacist. Another important reason is that it simply makes sense. Pharmacy technicians and assistants are trained to handle routine work (fill prescriptions and customer service), which frees up the pharmacists to focus more of their time on supervisory duties, as well as patient care.Melissa Murer, Executive Director of the Pharmacy Technician Certification Board, put it this way, “Pharmacists are becoming more focused on patient care, so pharmacy technicians are needed to perform more of the distributive functions.”In this brief (but hopefully informative article) I attempt to demonstrate what pharmacy technician and assistants do and where they do it.In general, they assist licensed pharmacists in providing medication and health care to patients by preparing and filling prescriptions and performing clerical tasks. Duties are similar but pharmacy technicians generally have more responsibilities. In addition, technicians and assistants are required to be closely supervised by a licensened pharmacist, although the laws defining what “being supervised” entails, varies by state.In addition to having all of their prescriptions checked by a pharmacist, technicians and assistants must also direct all patient questions regarding drug information, health matters or prescriptions to the pharmacist.Pharmacy Technicians
Technicians follow specific procedures when filling prescriptions. After receiving an initial prescription or refill request, they must verify that the prescription information is accurate and then count, pour, retrieve, weigh, measure and if necessary, mix the required medication for the prescription. The next step is to prepare and affix the labels to the proper container. After filling the prescription the technician will then price and file it. Another important aspect of a technician’s job is to prepare patient insurance forms and establish and maintain patient profiles.In retail pharmacies, technicians will also stock and take inventory of medications (both prescription and over-the-counter) maintain equipment and help manage the till.In many hospitals, technicians have the responsibility to read the doctors orders from a patients’ chart, prepare and then deliver the medication after it’s been checked by a pharmacist. They may also enter information about patients’ medical records (regarding their medications) or put together a supply (normally 24 hours) of medicine for patients, including the labeling and packaging of each dose. But just like technicians working in a retail pharmacy, each package is checked by the supervising pharmacist before being given to a patient and they also maintain inventories of medicine and other supplies.Pharmacy Assistants
Duties are similar to pharmacy technicians and while hospitals and pharmacies employ pharmacy assistants, the number of available positions is generally less than technicians. In retail pharmacies they work as clerks or cashiers, answer phones, handle money and perform clerical duties. In hospitals they also deliver medications and assist in stocking shelves.Pharmacy technicians and assistants work in clean well-organized areas but are required to spend most of their workday on their feet. And because more and more pharmacies are open 24-hours a day work hours can vary with technicians and assistants are often required to work odds hours (nights, evenings and weekends). Therefore, there are many opportunities to work part-time in 24-hour pharmacies. In addition, a percentage of both technicians and assistants work part time because they are studying to become pharmacists.States have traditionally required a one-to-one ratio of pharmacist to technician but that is also expected to change. Mark Boesen, Director of Government and Student Affairs for the American Association of Colleges of Pharmacy, has stated that: “Many of the major employers of technicians are expanding the number of their facilities and boards of pharmacy in some States are allowing the legal ratio of technicians to pharmacists to expand. This is a very promising field to work in.”An increasing demand for technicians with greater responsibility has prompted some States to revise their one-to-one ratio of pharmacist to technician to two or three technicians per pharmacist.As pharmacy technicians take on more and more tasks previously performed by pharmacists, they must also learn and master new technology. A good example is the increased use (by many pharmacies) of robotic machines to dispense medicines. Technicians will be required to oversee the machine, stock bins and label containers.This article may be reproduced only in its entirety.

There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.

In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.

But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.

Different Types of Financing

One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.

Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.

But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.

Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.

Alternative Financing Solutions

But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:

1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.

2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.

3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.

In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:

It’s easy to determine the exact cost of financing and obtain an increase.
Professional collateral management can be included depending on the facility type and the lender.
Real-time, online interactive reporting is often available.
It may provide the business with access to more capital.
It’s flexible – financing ebbs and flows with the business’ needs.
It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.

A Precious Commodity

Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).

Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.

Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?