Business Loans In Canada: Financing Solutions Via Alternative Finance & Traditional Funding

Business loans and finance for a business just may have gotten good again? The pursuit of credit and funding of cash flow solutions for your business often seems like an eternal challenge, even in the best of times, let alone any industry or economic crisis. Let’s dig in.

Since the 2008 financial crisis there’s been a lot of change in finance options from lenders for corporate loans. Canadian business owners and financial managers have excess from everything from peer-to-peer company loans, varied alternative finance solutions, as well of course as the traditional financing offered by Canadian chartered banks.

Those online business loans referenced above are popular and arose out of the merchant cash advance programs in the United States. Loans are based on a percentage of your annual sales, typically in the 15-20% range. The loans are certainly expensive but are viewed as easy to obtain by many small businesses, including retailers who sell on a cash or credit card basis.

Depending on your firm’s circumstances and your ability to truly understand the different choices available to firms searching for SME COMMERCIAL FINANCE options. Those small to medium sized companies ( the definition of ‘ small business ‘ certainly varies as to what is small – often defined as businesses with less than 500 employees! )

How then do we create our road map for external financing techniques and solutions? A simpler way to look at it is to categorize these different financing options under:

Debt / Loans

Asset Based Financing

Alternative Hybrid type solutions

Many top experts maintain that the alternative financing solutions currently available to your firm, in fact are on par with Canadian chartered bank financing when it comes to a full spectrum of funding. The alternative lender is typically a private commercial finance company with a niche in one of the various asset finance areas

If there is one significant trend that’s ‘ sticking ‘it’s Asset Based Finance. The ability of firms to obtain funding via assets such as accounts receivable, inventory and fixed assets with no major emphasis on balance sheet structure and profits and cash flow ( those three elements drive bank financing approval in no small measure ) is the key to success in ABL ( Asset Based Lending ).

Factoring, aka ‘ Receivable Finance ‘ is the other huge driver in trade finance in Canada. In some cases, it’s the only way for firms to be able to sell and finance clients in other geographies/countries.

The rise of ‘ online finance ‘ also can’t be diminished. Whether it’s accessing ‘ crowdfunding’ or sourcing working capital term loans, the technological pace continues at what seems a feverish pace. One only has to read a business daily such as the Globe & Mail or Financial Post to understand the challenge of small business accessing business capital.

Business owners/financial mgrs often find their company at a ‘ turning point ‘ in their history – that time when financing is needed or opportunities and risks can’t be taken. While putting or getting new equity in the business is often impossible, the reality is that the majority of businesses with SME commercial finance needs aren’t, shall we say, ‘ suited’ to this type of funding and capital raising. Business loan interest rates vary with non-traditional financing but offer more flexibility and ease of access to capital.

We’re also the first to remind clients that they should not forget govt solutions in business capital. Two of the best programs are the GovernmentSmall Business Loan Canada (maximum availability = $ 1,000,000.00) as well as the SR&ED program which allows business owners to recapture R&D capital costs. Sred credits can also be financed once they are filed.

Those latter two finance alternatives are often very well suited to business start up loans. We should not forget that asset finance, often called ‘ ABL ‘ by those Bay Street guys, can even be used as a loan to buy a business.

If you’re looking to get the right balance of liquidity and risk coupled with the flexibility to grow your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist you with your funding needs.

Opt For Preventive Care To Reduce The Cost of Healthcare

People often do not prioritize their health and visit the hospital or their doctors while detecting some disease-causing symptoms in their bodies. However, preventive care is the best possible way everyone can undertake and cease the risk factors before the symptoms become dangerous and life-threatening. The following article will focus completely on preventive health care and how it helps reduce further costs involved with healthcare.

Suggested article: Preventive Dental Care In California

What is Preventive Care?

Preventive health care or prophylaxis involves the measures that people consider for preventing any diseases. The form of healthcare includes utilizing medical services or precautions that fight against the potential health crisis. It is the most important step that people can adopt in better management of their health.

Several factors such as genetic predisposition, lifestyle, environmental factors, and disease agents affect people’s health. Hence, everyone must undergo periodic health check-ups and screening tests from the doctors.

People opt for preventive health care for maintaining better health, and eliminating the disease becomes serious. Preventive care in conjunction with medicines will save a patient from health breakdown and save money from future expenses, especially if the patient is suffering from a chronic disease.

What are the Preventative Care Services?

Here are some of the examples of preventive health care services, along with their frequencies. ·

Annual Check-up (1 per calendar year): During the annual check-up, the doctor or Primary Care Provider (PCP) checks all areas of a person’s health, including physical and psychological. Examining the patients in detail helps in detecting any health care concerns in the early stages.

· Flu Shot (1 per year): Most health plans include flu shots and protect the patients from all strains of flu viruses.

· Mammogram (1 calendar year, after the patient attains the age of 40 years): Patients over the age of 40 must undergo routine x-rays of breast tissues and check for signs of cancer and other abnormalities. Some health plans might cover the costs of 3D imaging. ·

Colonoscopy (usually once in every decade after the age of 50) for detecting colon cancer.

· Vaccinations, including boosters for such as measles, rubella, polio, etc. administered during childhood.

Preventive health care helps keep people productive and active, enabling them to earn well during their senior years. Studies show that approximately 35% of people have to consider early retirement, even before they are financially ready. Opting for affordable, preventive care helps in reducing the numbers.

Why Should Patients Opt for Preventive Care?

Access to preventive health care helped reduce healthcare costs among Americans, as the physicians can prevent or treat the disease before the patient needs emergency room (ER) care. Almost one-third of costs in America include hospital care, which is undoubtedly very expensive. In 2010, 21.4% of adults paid at least a visit to the emergency room, which reduced to 18.6% in 2017. Adults not having affordable access to preventive care are more likely to pay a couple of visits to the emergency room.

Statistics show that 7% of the adults in the age group of 18-64 paid visits to the ER in 2014, as they had no other option, regardless of their health insurance status. About 77% of Americans went to the emergency rooms due to complications in their health, including those whose doctors advised them for emergency room care. Approximately 15.4% of uninsured adults in 2014 are more likely to use the emergency room, as they lacked other providers.

Undoubtedly, the cost of ER care for uninsured patients was extremely high. Hospitals provide care, even if the patient fails to provide fees for their services. As hospitals must recover the cost, they shift to Medicaid and health insurance premiums, which increases the healthcare cost for everyone.

Impact of Preventive Care Cost on Health Care Costs

Chronic diseases are the major leading cause of death among people, either preventable or manageable with regular visits to health care. These include:

· Heart diseases

· Cancer

· Stroke and

· Chronic lower respiratory diseases

Poor nutrition and obesity are the leading cause of heart disease and stroke. Genetics and smoking lead to lung cancer, which is the most common type of cancer. Obesity also risks several other forms of cancer.

Treating these chronic diseases is expensive, even before they reach emergency room status. Approximately 90% of the 3.5 trillion USD includes health care expenditures for people suffering psychological problems and chronic diseases. Patients who never went for preventative care or did not have any prescription coverage failed to afford the treatments, screenings, regular check-ups, and medications that would manage the underlying conditions of the disease. Instead, they head up to the emergency rooms with cases of strokes, heart attacks, and other complications.

However, with regular access to affordable, preventive care, the patients were more likely to discover and manage their chronic conditions. Doing so lowers the chances of visiting the emergency rooms and investing more into expensive treatments for those diseases, which passed regular management. With the decrease in the expenditure for treatments, the overall healthcare cost also decreases for everyone, as the hospitals no longer try to cover the treatment cost of the uninsured patients.

When and What Preventive Health Care is the Most Suitable?

A patient’s primary health care provider will help him or her coordinate the most suitable shots and tests. While analyzing the beneficial shots, the health care provider will consider certain aspects such as family history, age, sex, current health status, and several other factors.

Conclusion

Preventive health care often covers 100% of health plans and offers the patients several benefits both in cost and health. However, if the patient experiences doubts or are in dilemmas about the things covered and tests conducted, he or she must communicate with the physician at the earliest.

Everyone knows, “health is wealth.” If a patient is healthy, he or she will perform the best. However, it is also important to adopt a healthy lifestyle, reducing the risk factors and saving the patients from spending money on medicines.

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.

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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.