Major Business Events
Launching a Business
Purchasing a Business
Selling a Business
Financing & Banking
Leasing & Real Estate
TORONTO FINANCING &
Given the reality that inadequate or ill-timed
financing is a highly common impetus for business failure, it is
essential that you understand the challenges associated with financing
and banking, in addition to retaining the services of the appropriate
professional advisors. Whether you are starting a business or expanding
one, sufficient ready capital is essential. But it is not enough to
simply have sufficient financing; knowledge and planning are required to
manage it well. These qualities ensure that business entrepreneurs avoid
common mistakes like securing the wrong type of financing,
miscalculating the amount required, or underestimating the cost of
Before inquiring about financing, you should ask
yourself the following questions:
Do you need more capital or can you manage
existing cash flow more effectively?
How do you define your need? Do you need money to
expand or as a cushion against risk?
How urgent is your need? You can obtain the best
terms when you anticipate your needs rather than looking for money
How great are your risks? All businesses carry
risks, and the degree of risk will affect cost and available
In what state of development is the business?
Needs are most critical during transitional stages.
For what purposes will the capital be used? Any
lender will require that capital be requested for very specific
What is the state of your industry? Depressed,
stable, or growth conditions require different approaches to money
needs and sources. Businesses that prosper while others are in
decline will often receive better funding terms.
Is your business seasonal or cyclical? Seasonal
needs for financing generally are short term. Loans advanced for
cyclical industries such as construction are designed to support a
business through depressed periods.
How strong is your management team? Management is
the most important element assessed by money sources.
How does your need for financing integrate with
your business plan? If you don't have a business plan, make writing
one your first priority. All capital sources will want to see your
business plan for the start-up and growth of your business.
To retain the legal services of Toronto
business lawyer Christopher Neufeld, contact Neufeld Legal
Professional Corporation at 416-887-9702 or
Toronto business lawyer
Neufeld is a corporate
commercial lawyer with
the law firm of Neufeld Legal P.C. and is admitted
to practice law in Ontario and Alberta (Canada) and New York (U.S.A.).
Christopher's legal practice focuses primarily on business law, in particular
corporate commercial transactions (mergers, acquisitions, divestitures,
business purchases and sales, etc.) and business contract work.