YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE!
TRADITIONAL FINANCING OR ALTERNATIVE LENDERS? FINANCING OPTIONS FOR BUSINESS
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
Suite 301
Oakville, Ontario
L6J 7J8
Bank lending needs often come when the Canadian business owner and financial managers are not necessarily 100% in control of all the forces that might affect their business - external and otherwise. A business finance alternative might also be a solution for almost any business in any industry for any financing need. Let's dig in.
FINANCING NEEDS HAPPEN AT DIFFERENT TIMES IN YOUR BUSINESS
As we've explained in the past, those same financing needs come in different timelines, short, intermediate and long term. One of those external sources that many business owners forget is their vendors and suppliers.
DON'T FORGET SUPPLIER CREDIT/VENDOR FINANCE
Here collateral is not required, trade credit is MUCH easier to obtain, and in many cases, discounts for prompt payment may be offered and taken. Naturally, stretching payables is a dangerous game, as you need suppliers and vendors on board when times are challenging - so while a/p mgmt is a key part of ' cash flow, 'it must be handled properly.
DOES YOUR FIRM QUALIFY FOR BANK FINANCING?
Bank lending comes in various forms - not all of which are understood by owners/financial mgrs in the SME commercial area. While it's true that Canadian banks do, in fact, offer ' unsecured' loans, these are totally focused on... you guessed it... provable cash flow. Typically these loans might be at a higher rate are and more long-term in nature. The bottom line - ensure your balance sheet, profits, and historical and projected cash flows are up to mustard! For many small business, a bank term loan is a solid permanent working capital solution.
Bottom line - traditional bank loans, whether it's a short term loan or a small business loan structured as a line of credit, have higher credit requirements and may come with personal guarantee requirements as well as outside collateral. Financial institutions such as banks emphasize credit scores for a business and the owners themselves.
Many types of bank financing require a business plan and well-thought-out and presented cash flow projections - 7 Park Avenue Financial business plans meet and exceed bank and commercial lender requirements.
BUSINESS LINES OF CREDIT ARE KEY TO LONG TERM FINANCIAL SUCCESS
Bank lines of credit provide revolving facilities up to a maximum amount based on current asset holdings such as receivables and inventory. Typically these bank credit lines come with restrictions known as covenants and ratio maintenance - it's not just about the assets.
EXPLORE THE WORLD OF ASSET FINANCING & ALTERNATIVE LENDING
Commercial finance companies provide alternatives to the ' traditional ' bank loan sector. These tend to be asset-based, easier to obtain, but come with higher borrowing costs.
LET 7 PARK AVENUE FINANCIAL SHOW YOU WHY ALTERNATIVE FUNDING SOLUTIONS ARE AVAILABLE FOR YOUR BUSINESS
Typical alternative financing business funding solutions include:
Accounts Receivable Financing / Invoice factoring - receivables represent your next closest asset class to cash and solutions such as Confidential Receivable Invoice Financing - these solutions are the most popular method of generating cash from outstanding invoices.
Inventory Finance - These loans are typically for larger retailers and more -
ABL Business Credit Lines / Non-bank Line of Credit - These are non-bank business credit lines that combine the best of receivables and inventory financing into one revolving facility
Equipment Leasing / Sale-Leaseback strategies / Financing Equipment
Tax Credit Monetization (SR&ED refundable tax credits, film tax credits)
Bridge Loans
Short Term Working Capital Loans - short term loans that are highly accessible, easily obtained, but come with higher interest rates- owner personal credit score must be satisfactory.
Government Guaranteed Small Business Loans
Purchase Order Financing
Merchant Cash Advances - cash advances for small business based solely on sales revenues - The merchant cash advance loan, as opposed to a bank loan, typically advances 10-20% of annual revenue or future credit card sales as a loan amount cap. These loans come with rates that will vary greatly - The interest rate on an alternative business loan often becomes a question of access to capital versus cost of capital. The whole issue of bad credit ' must be thoroughly understood when applying for any financing and how that issue is positioned with the lender - whether it is alternative loans or dealing with Canadian traditional banks and bankers. This quick access to business funding and business lending has snowballed into a major industry in online type finance solutions.
CONCLUSION
So, crowdfunding platforms and equity crowdfunding not working ?! If small businesses are not sure what financing solutions work best for your firm today. In the future, that type of consideration can more easily be addressed by seeking the services and expertise of 7 Park Avenue Financial; a trusted, credible and experienced Canadian business financing advisor with a track record of success who can show you the types of alternative or traditional finance that works for your business needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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