Neufeld Legal P.C.
Starting a Business
Partnership / Joint Venture
Purchasing a Business
Financing & Banking
Leasing & Real Estate
Selling Your Business
FINANCING & BANKING
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 borrowing money.
Before inquiring about financing, you should ask yourself the following
Do you need more capital or can you manage existing cash flow more
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 under pressure.
How great are your risks? All businesses carry risks, and the degree
of risk will affect cost and available financing alternatives.
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 needs.
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
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 business
lawyer Christopher Neufeld, contact Neufeld Legal P.C. at
Chris@NeufeldLegal.com or 403-400-4092 / 416-887-9702.
Neufeld Legal Professional
Corporation. Our mailing addresses are 144 4th Avenue SW, Suite 1600, Calgary, Alberta
and 1 Yonge Street, Suite 1801, Toronto, Ontario. Principal lawyer
Christopher Neufeld is admitted
to practice law in Alberta and Ontario (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.), business development, contract
drafting and negotiation, tax and succession planning, financing and
commercial real estate.