YOUR COMPANY IS LOOKING FOR A BUSINESS LOAN!
CANADA SMALL BUSINESS FINANCING SOLUTIONS
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Bank business loan needs in Canada. Whether it's operating capital or financing loans that are ' term' in nature the ability to access 'OPM' (other people’s money!) remains a constant challenge for the Canadian business owner and financial manager.
DO YOU NEED A BUSINESS PLAN?
You don't necessarily always need a business plan when it comes to sourcing Canadian financing and small business loans, but you do require what we could simply call a clean loan package when it comes to accessing chartered bank capital. (Business plans relate more to start-up financing or equity investments)
THE BANK, OR THE BANKER! TRUST US, IT'S THE LATTER
We spend a lot of time with clients on the subject of choosing the right bank. Invariably we think they have got it wrong. They're focusing on a logo as opposed to choosing the best business banker that suits their needs.
CANADIAN BANKS ARE DIFFERENT THAN U.S. BANKS
Truth be told the Canadian owner/manager has an easier ob than our U.S. counterparts searching for the right business finance solutions. Why is that? Simply because our system has it narrowed down to a handful of chartered banks and occasionally a Credit Union or Non Schedule A bank. In the U.S. the myriad of banks within their system make it challenging - they have to rationalize ' money center banks ', 'Savings and Loans ', 'Regional Banks ', Community Banks,' etc!
There's a tremendous difference in Canada between retail banking and commercial banking. It's important to focus on the services of commercial bankers, as the lines can easily blur in the SME sector around how business financing is collateralized. We constantly stress to clients that it's important to separate their personal and business finances when it comes to operating and growth capital.
BUSINESS CREDIT LINE
We meet many owners who tell us they have a business line of credit. They're quite surprised when we demonstrate to them that the ' business financing ' that they have in place is essentially lending based on their personal assets and personal credit history. It's important to distinguish between short term borrowing and long term needs as types of financing and their cost vary as they relate to your cash flow and working capital needs.
There are some key factors in choosing bank business loans and financing. While convenience regarding geographical location is important it should never be at the expense of losing a strong commercial banking relationship you have in place. You'd be surprised how far we would recommend driving to get the right banker! So bottom line, focus on the relationship, not the fees!
REVOLVING CREDIT LINES
Revolving lines of credit are key to any growing firm’s success. They help balance out the investment you make in A/R, receivables, equipment, etc. One of the truest maxims in business banking is that banks only lend generously when your firm needs the funds the least. So here the concept of putting revolving credit facilities in place when you might not necessarily need them is critical!
DO YOU KNOW THE 4 C'S OF CREDIT AND BORROWING?
The 4 C’s of credit remain a true constant in lending. They are especially true in the SME sector, and they are character, capacity, credit, and collateral.
Bank business loans typically come in two categories:
Debt
Revolving Credit Lines
Bank credit lines, when you qualify, are low cost and cheaper than pretty well all types of financing. Many business owners focus on interest rates, and while the interest rate is important you should also remember that it's all about access to capital as opposed to cost of capital. In Canada business owners in the SME sector access capital via a combination of means. They include:
Personal finances
Business credit cards
Vehicle loans
Equipment leases
LOOKING FOR BANK ALTERNATIVES? WELCOME TO THE WORLD OF ALTERNATIVE FINANCE!
Other alternatives exist for Corporate Canada when bank financing is either not enough of can't be accessed. That includes:
A/R Financing
Inventory Loans
Access to Canadian bank credit/term loans The government of Canada also offers, via banks the Canada Small Business Loan which helps thousands of small businesses and startups every year at a fixed rate or variable rates and a loan amount up to 1 Million dollars with certain conditions - The program also is popular because the personal guarantee is limited and loan terms are flexible for terms for 24 months to 60 months. Terms and conditions are very flexible and any proprietorship or business may apply
Non-bank asset-based lines of credit
SR&ED Tax credit financing
Equipment / fixed asset financing
Cash flow loans
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance / Business Credit Cards Good credit score required
Securitization
CONCLUSION
We highly recommend small businesses work with a trusted, credible and experienced Canadian business financing advisor who can assist you in putting together a loan package that positively reflects your capital needs.
That package would include a business plan, executive summary, current and projected financials, Information on the company and owners, etc.
At 7 Park Avenue Financial we prepare business plans that meet and exceed bank and commercial lender requirements. Seek the business expertise of someone who can fast track you into the mind of the lender in Canada for solutions to your business needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2020/Rights Reserved
