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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.

The Magic of Oils For Skin Care

One of the key differences between conventional skin care and natural or organic skin care is not the “active” ingredients such as green tea or vitamin c, which excluding water may make up to about 5% of any product, rather it lies with the base ingredients. In natural skin care, the base ingredients are often a mix of vegetable oils and butters or waxes in contrast to the synthetic ingredients often found in conventional skin care. The use of base oils has enormous benefit for the skin. Instead of being an inert (non-active) synthetic carrier for the active ingredients, base oils contain nutrients such as vitamins, minerals and essential fatty acids that support and nourish the skin. I would go so far as to count base oils as active ingredients in skin care. So, in fact, in natural products up to 95% of any product has a supportive “active” effect on the skin. In comparison, the synthetic base ingredients in conventional skin care by enlarge, lack significant therapeutic benefit.There are many factors that affect the absorption of topical ingredients into the skin and in reality, many topical creams just sit on the surface of the skin, effectively plumping the superficial skin cells but rarely having any effect on deeper layers. The skin is designed to be selectively absorbent, being relatively permeable to fat soluble substances and relatively impermeable to water and water soluble substances. Fat soluble ingredients such as oils are absorbed more effectively and have greater effect on the cell membrane and skin matrix, supporting skin nourishment. As carriers, oils can also transport essential oils, phytonutrients, vitamins and minerals into the skin where they are most effective, rather than just having a “surface” effect. In addition, oils also help prevent skin dehydration by providing an effective water loss barrier which in turn leads to plumper, more hydrated skin.Oil absorption is influenced by the viscosity or thickness of the individual carrier oil with thicker oils tending to be absorbed more slowly through the skin. Generally fine light oils are preferable for use on the face as they absorb quickly, easily penetrating the surface layer of skin without leaving a greasy feel. Heavier oils are suitable for dry facial skin, skin on the body, as bath oils and massage oils. The degree of unsaturation will also impact on oil absorption. In general, the more polyunsaturated fat content of the oil, the better the absorption. For example Rose Hip oil is high in polyunsaturates and has quite low viscosity, making it ideal for use in face serums and creams as it absorbs quickly into the skin.It is worth noting that cold-pressed oils tend to have a greater degree of unsaturates than heat-extracted oils and for this reason are preferable. The process of cold-pressing involves the nut or seed being placed in an “expeller” which squeezes the oil out. There is some heat created by friction however, it causes little damage to the oil or its constituents. Heat-extraction uses temperatures up to 200 degrees Celsius which dramatically increases the yield of oil, making it far more cost effective but at the same time damaging the nutrient content of the oil. Unsaturated fatty acids are easily damaged by high temperatures and so heat-extracted oils will have significantly lower levels. While these oils are commonly used as cooking oils, they should be avoided for use in skin care and aromatherapy as they lack the therapeutic benefits of the cold-pressed versions.A common misconception when it comes to the use of oils is that applying them to the skin will only worsen oily skin and further create congestion. Heavier oils may sit on the surface of the skin longer before absorption, which is not ideal for already oily skin. However, the lighter, less viscous oils will be absorbed quite quickly and in many cases help to balance skin oiliness rather than contribute to it.Oils are effectively absorbed into the skin rather than sitting on the surface layer and therefore they are unlikely to cause or worsen congestion. However, many natural skin care products rely on waxes and butters as base ingredients. While enormously beneficial for the skin, they are more likely to sit on the surface and therefore have a greater likelihood of contributing if congestion is already an issue. They are unlikely to cause congestion that wasn’t previously present and the skin response really does depend on individual skin type. The percentage of waxes to butters to oils will vary in different products for different skin types. If you are unsure about what product to use for your skin type, it is worth asking the manufacturer or supplier which of their particular products will be most beneficial for your skin type.There a quite a number of nourishing carrier oils used in both skin moisturizers and serums and the range of natural products available that using nutritional base oils is ever increasing. Different oils are suitable for different skin types so knowing some basic facts about base oils will help you find the most suitable product for your skin.Sweet Almond Oil – A common used oil in skin care, it is rich in nutrition including vitamin E, unsaturated fats and essential fatty acids. It has a softening action on the skin and is useful for lubrication in massage because while not a heavy oil, it is not absorbed rapidly.Olive Oil – A heavier oil, rich in monounsaturates including oleic acid. Extra virgin olive oil come from the first pressing of the olives and is dark green in color indicating the presence of antioxidant polyphenol. It is suitable for use with dry skin as it helps stabilize the cell membrane increasing the skins ability to hold onto moisture. Olive oil also contains squalene, a hydrating and anti-inflammatory agent, ideal for skin conditions such as psoriasis and eczema.Tamanu Oil – Tamanu oil has powerful healing properties in its unique ability to promote the formation of new skin tissue. Traditionally used by the Polynesians as first aid for the skin and mucous membranes, the oil can assist with scars, burns, skin cracks, cuts, dry skin and wounds. Used cosmetically, Tamanu has healing, mild antibiotic and anti-inflammatory activity 2. For these reasons it is used in both protective and regenerative products aimed at restoring skin appearance.Evening Primrose Oil – Evening Primrose Oil (EPO) is a valuable source of gamma linoleic acid, an essential fatty acid with potent anti-inflammatory effects. Useful for dry, damaged, sensitive skin EPO helps to maintain the skin’s normal barrier functions. It is also useful topically for eczema and psoriasis.Rosehip Oil – With up to 80% essential fatty acid content, Rosehip oil is very fine and quite easily absorbed by the skin. Rosehip encourages regeneration and repair of the skin and is renowned for its skin benefits, particularly in the treatment of scars and burns. It is also known for its rehydrating effect as well as improving dry, aged and wrinkled skin.Jojoba Oil – Actually a fine wax rather than an oil, Jojoba oil is very fine in consistency and readily absorbed by the skin. It is light and non-greasy and for this reason it is ideal in face serums and creams. Jojoba closely resembles the sebum of the skin and so is beneficial for skin and scalp problems such as psoriasis and eczema. With excellent emollient properties it is moisturizing, healing and suitable for all skin types.Coconut Oil – One of the heaviest and most stable oils, coconut is ideal for hair and body application. With moisturizing and softening properties it is ideal for dry and rough skin. Coconut oil also has cooling properties and so is useful for after sun care products 1.Avocado Oil – Strong in color and dour, avocado oil is not to everyone’s liking for skin care. However, in its unrefined form it is rich in lecithin, vitamin D, E and A which offer useful sun protection and skin nutrition. Avocado oil is beneficial to drier skins.Sea Buckthorn Oil – Bright orange in color, Sea Buckthorn oil is rich in beta carotene and second only to Rose Hip in vitamin C content. It is also very rich in essential fatty acids. This rich combination of nutrients mean it is extremely beneficial as a base oil in skin care. With moisturizing, anti-inflammatory and restorative properties, it is easily absorbed and useful for all skin types.Author: Ananda Mahony ND. Ananda is a naturopath and skin specialist. She owns Vitale Natural, an organic skin care store and beauty salon in Paddington, Brisbane. www.vitalenatural.com.au

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S&P 500 Biotech Giant Vertex Leads 5 Stocks Showing Strength

Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).

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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.

Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.

Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.

Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.

Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.

Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.

Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.

Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.

The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.

In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.

In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.

Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.

Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.

The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.

Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.

The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).

In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.

S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.

CRISPR Stocks: Will Concerns Over Risk Inhibit Gene-Editing Cures?

Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.

Cardinal Health stock’s relative strength line has also been trending up for months.

The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.

Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.

S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.

Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.

Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.

Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.

Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.

Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.

The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.

How Millett Grew Steel Dynamics From A Three Employee Business

STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.

Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.

GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.

The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.

On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.

Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.

During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.

Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.

IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.