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Health care is evolving. Despite the fact that we are hearing and reading of new diseases coming up among the population, such as the dreaded SARS (Severe Acute Respiratory Syndrome), the Acquired Immunodeficiency Syndrome (AIDS), and others, health care is also improving. The new trend is that it is getting more patient centered and more close to nature. Here are some of the changes that we will continue to see in the following years.1. The new trend in health care is that it will get more and more patient centered. More and more rooms in the hospitals are now air-conditioned for the convenience of the patient. More and more chemicals have been invented to fight off pain from the patient. Most injections are now administered no longer to the body directly but through the intravenous connection bringing liquid from a plastic container to the patient. The anesthesiologists have become experts in deadening the pain of an operation. The hospital building, rooms and surroundings are now cleaner than ever. Each room, even in the wards, have now a comfort room and bath facilities. In the 1980s there was a large government hospital for a million population which had only one comfort room for all the patients. This is no longer true today. Mercury-based thermometers and sphygmomanometer are now being replaced by digital ones, for the safety of the patients against mercury poisoning or contamination. Headrest in hospital beds can now be raised with a few turns of a handle. More wheel chairs are now available to move patients around with little discomfort for them. Ambulances are available to transfer patients from homes to hospitals and back to their homes or other hospitals. Indeed more and more conveniences are now given to the patients. We will see more of these as the years go by.2. Another new trend in health care is that there will be more and more return to nature, particularly herbs as curative agents. After all people are discovering that these herbs are as effective as the synthetic drugs and there are no or less bad side effects. People are getting more and more conscious of the food they eat. The number of vegetarians is increasing. More and more people are taking food supplements. As a result food supplements have multiplied. In one report we have 639 pages of listing of food supplements, each page containing around 40 names of food supplements. Food supplements, especially, the ones based on herbs will continue to multiply.3. We are going to see more people taking control of their health, especially in the area of preventing diseases. This is clearly now the new trend in health care. Perhaps this is just logical since the cost of consulting a physician is getting higher and higher, to cover up, some say, for the more and more expensive education the medical doctors are going through.4. As a result of people returning to herbs, governments are pressing for cheaper medicines. We will have cheaper medicines. An example is the sale of dextrose which has become cheaper with the use of plastic containers rather than glass. Medicines will continue to be more generic and less expensive. There are more and more drug stores selling only generic drugs.5. In general people will be getting more and more into alternative medicines. These are medicines that do not fall within the category of conventional medicine, the medical practice most of us are accustomed to because of our western culture. These include natural cures, chiropractice, herbs, traditional Chinese medicine, pranic or energy healing, meditation, hypnosis, etc. The new trend in the use of alternative medicine will continue in the years ahead.6. The diversification and specialization of health care personnel will continue to increase. Forty years ago it was the physician himself who put on the fluoroscopy machine, took the x-ray picture of his patient, analyzed it. Now we have medical technicians to do this. They even have a high sounding name now, medical technologists. Besides the ever growing group of medical specialists we now have the physical therapists for exercising the movements of the body, the nutritionists for the food of the patient, the health insurance company and the social worker for the payment of hospital bills, the hospital administrator for the management of the hospital facilities, let alone the chaplain for the anxious and dying patients. More specialized services will continue to appear.7. If there is distance education there is also distance health care. This is the last new trend in health care that I see. We will have more of this in the future. It is very rare now for us to experience being visited by the doctor at our homes, as this was done 50 years ago. This happens now only among very close friends or relatives of the doctors. There was a time when a doctor would go around town treating current and would-be patients. That is gone now. We have now consultation by cell phones. A doctor has a radio program. The audience listens. The doctor gives his cell phone number. By and by he is inundated with text messages about this and about that ailment experienced by his radio listeners. And he gives advice on his cell phone too by text messaging his listeners. Who knows, later on we can have doctors analyzing their patients from a distance with the aid of electronic equipment.Indeed health care has evolved. Now that you know these are the directions health care is going to go, the new trends in health care, be more conscious of your own health. You owe it to yourself to be healthy.But these are just predictions. Be prepared to be surprised with newer developments in health care. But we are very far from the one tablet that cures all diseases.

Home health care is just what the name suggests – health care services that can be taken care of in your home. There are quite a number of these possible home-based services, and they can be cheaper, as useful, and more convenient than the services you could get in a hospital or other nursing facility.The point of this is to take care of an illness, injury, or other ailment. The idea is to get your independence, confidence, and self-sufficient behavior back on target as quickly as possible in your own environment.Potential home health service options include caring for wounds, physical therapy, occupational therapy, speech-language therapy, patient and care-giver education, intravenous and nutrition therapy, injections, and monitoring serious illness and unstable health status. There is also health aid, to help with things like getting into and out of bed, getting dressed, baths, eating, and bathroom activities. This is also considered things like housekeeping duties, laundry, shopping, and cooking.There are lists of agencies that do home health care work. Check your local phone book, or look up information on the internet to find local places and check what services they actually provide. Some health insurers like Medicare will only cover the costs of this if the home health agency has been certified by them.When present, the staff will check what you’re eating and drinking, check things like blood pressure, temperature, heart rate, and breathing, make sure that you are taking your prescriptions, drugs, and other treatments appropriately, check if you’re in pain, be aware of the safety in your home, teach you to care for yourself over time, and coordinate your care with you, your doctor, and others who treat you.It’s very important that you understand how your plan of care works. An agency member will consult with you and your doctor to make this happen. The plan of care includes what services you need, which care professionals should give those services, how often those services are required, what medical equipment is needed, and what results you expect. All involved will review this plan as often as required to do the job properly.If you are getting home health care, you should ask yourself questions regularly to make sure you’re be treated appropriately. For instance, if the staff is polite, if they explain everything to you in a way you can understand, if they respond quickly to your requests, if they check in with you physically and emotionally with each visit, and if they regularly suggest changes to improve your situation.With all these things in mind, now you know enough to get started researching to determine if home health care is the right decision for you and your family.

It is an exciting time where so many people are engaging in a wide range of fitness programs. The number of programs available today is the greatest that it has ever been and everyone can find a program that suits them. Programs based on speed, strength, endurance and flexibility will improve any area of your fitness level through active and consistent participation. Before signing up for that next fitness class some preliminary thought could help making your choice of a suitable fitness program easier and allow you to select a program with sustainability. Those that have made the right choice of fitness programs have reported ongoing benefits including; more energy, vitality and quality of life. Here are a number of areas to consider before choosing a fitness program.o State of Health
o Lifestyle
o Body Type
o ObjectivesState of HealthWhen choosing the right fitness program at any age should include an evaluation and assessment of any health issue concerns at the time. There are various fitness avenues a person can take and each will place different demands on the mind and body. Health issues should be considered when looking at each discipline and how the individual will be impacted by the demands. It is prudent to involve your primary care physician in making a selection so that any health issues may be addressed and a plan of recommendation can be used to make a wise decision. Because there is such a large selection of fitness programs available most limitations caused by health issues which may impose restrictions on an individual can be accommodated. Exercise is basically moving the body and any type of consistent movement is going to provide benefits as a result.Participants in exercise programs who may have joint limitations can select a program with low impact on the joints and receive a whole host of fitness and health benefits. Programs are available at all levels including beginner, intermediate or advanced and can accommodate many individuals with various health issues. If there is a will, then there is a way to meet your fitness goals but it must be done logically and intelligently.LifestyleVarious fitness routines require different levels of activity and assessing which routine fits best into the lifestyle of the participant is an important selection criteria. Fitness is a change of lifestyle which includes the fitness routine merging into the daily activities of the participant. If your lifestyle is moderately active then a fitness routine which promotes moderate levels of energy will be a choice which is better suited for you and has the best chances of being sustained over the long-term. Another fact is the time you have available to devote to a fitness program. Some regimes require more time then others to achieve results. If you have 2 days a week available for working out then look for programs that can accommodate you and still provide timely benefits which are achievable. A mistake many people make is shooting too high at first and selecting a fitness routine completely off the scale in relation to their lifestyle. What they find is they are unable to sustain the regime, get discouraged and discontinue the program. Assess your lifestyle pace and the venue in which you would like to workout. There’s indoor, outdoor, individual and group programs available and you can find one that requires a pace and environment you will enjoy and be able to sustain as part of a healthy and fit lifestyle.Body TypeThe reason that so many exercise and fitness programs have been developed is simply to accommodate the individuals participating in those programs. One of the criteria for selecting a fitness program is body type. Understand that different fitness programs place different demands on the body and require different energy levels from the participants also. Those of a larger stature have gravitated traditionally toward the strength based programs and those of a smaller stature have moved in the direction of the cardio based programs. All these individuals have made what they would consider programs which best suited them. If you ever considered a football team you don’t see the larger linemen body types doubling as wide receivers. Their body types make them more suitable for the pace and demands which are placed on them as linemen. Fitness programs are the same. If you are choosing a fitness program that will best fit in with your lifestyle then your body type is a factor to consider as well. All body types can find regimes that best suit them and are able to provide ongoing health and fitness benefits derived from the programs. Those with higher energy levels are going to select those programs with high energy demands then those with lower energy levels. Programs exist which require short intense energy expenditures and also routines which require longer durations and less intensity. When selecting a fitness program consider your level of energy and the demands the regime or program will place on your energy level.ObjectivesGaining long-term benefits from a fitness program does require setting objectives you want to accomplish from the effort and consistency you put into the regime. Of course many individuals take a less organized approached to fitness and that is alright as long as they are comfortable with that kind of approach. Of course the power of setting goals and moving toward their accomplishment is proven effective for a long time and is recommended. If losing weight, building strength or gaining flexibility are some of the goals to be attained selecting programs which address these areas is made much simpler. Not all programs can deliver all benefits and meet all goals. Many programs specialize in the benefits attained from participation in them. Cardio programs are great for producing weight loss, energy and endurance but are limited when it comes to developing high levels of strength. Weight training would be more suitable if increasing levels of strength is your goal. Whatever program you decide to choose identifying objectives and setting goals will make your choose of program easier and more effective. And whatever program you choose be certain you are capable, the goals are obtainable and participation is enjoyable.

Summary
SPDN is not the largest or oldest way to short the S&P 500, but it’s a solid choice.
This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.
SPDN’s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.
Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.
We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.
Put a gear stick into R position, (Reverse).
Birdlkportfolio

By Rob Isbitts

Summary
The S&P 500 is in a bear market, and we don’t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or “just hang in there” while the bear takes their retirement nest egg.

The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.

SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.

Strategy
SPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.

Proprietary ETF Grades
Offense/Defense: Defense

Segment: Inverse Equity

Sub-Segment: Inverse S&P 500

Correlation (vs. S&P 500): Very High (inverse)

Expected Volatility (vs. S&P 500): Similar (but opposite)

Holding Analysis
SPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.

Strengths
SPDN is a fairly “no-frills” way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the “market” goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.

Weaknesses
The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.

Opportunities
While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.

Threats
SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.

Proprietary Technical Ratings
Short-Term Rating (next 3 months): Strong Buy

Long-Term Rating (next 12 months): Buy

Conclusions
ETF Quality Opinion
SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.

ETF Investment Opinion

SPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.

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.

US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 1.14%. While S&P 500 was trading at 3,701.66, up by 0.98% and Nasdaq Composite 10,690.60 was also up by 0.71 per cent

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US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%
Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. Source: Reuters
US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 345.25 points or1.14 per cent. While S&P 500 was trading at 3,701.66, up by 35.88 points or 0.98 per cent and Nasdaq Composite 10,690.60 was also up 75.75 points or 0.71 per cent. A Reuters report said that today’s strength was on the back of a report which said the Federal Reserve will likely debate on signaling plans for a smaller interest rate hike in December, reversing declines set off by social media firms after Snap Inc’s ad warning.

Source: Comex

Nasdaq Top Gainers and Losers

Source: Nasdaq

Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. The BSE Sensex ended at 59,307.15, up by 104.25 points or 0.18 per cent from the Thursday closing level. Meanwhile, the Nifty50 index closed at 17,590.00, higher by 26.05 points or 0.15 per cent. In the 30-share Sensex, 13 stocks gained while the remaining 17 ended on the losing side. In the 50-stock Nifty50, 21 stocks advanced while 29 declined.

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?

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.