YOUR COMPANY IS LOOKING FOR FINANCE ALTERNATIVES!
ALTERNATIVE LOANS AND BUSINESS FINANCING IN CANADA
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?
CONTACT US
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
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer alternative business lending and working capital solutions – Save time, and focus on profits and business opportunities
7 Park Avenue Financial: “Canadian Business Financing with the intelligent use of experience”
Alternative Business Lending Solutions
Finance alternatives in Canada often require the Canadian business owner/financial manager to take the ‘ middle ground.
Unfortunately, traditional finance solutions are not available to everyone. That means business alternative lending, such as an alternative business loan, must often be considered.
These loans, provided by non-bank lenders, have become increasingly popular due to their accessibility, flexible repayment terms, and ability to serve businesses that may not qualify for traditional loans due to credit or collateral issues. Hence the ‘middle ground,’… so let’s dig in.
Breaking Free from Banking Barriers: Your Path to Business Growth
Due to strict criteria, traditional lenders often reject viable businesses, leaving growth opportunities untapped. The frustration of lengthy applications, excessive documentation, and rigid requirements can stall your business momentum.
Let the 7 Park Avenue Financial team show you how Alternative Business Lending bridges this gap, providing swift approvals, flexible terms, and diverse funding solutions tailored to your business's unique needs and growth trajectory.
WHAT IS ALTERNATIVE LENDING?
Alternative lending refers to obtaining small business loans from non-traditional lenders, such as online, private, and microlenders.
Unlike traditional bank loans, which often come with stringent eligibility requirements and lengthy approval processes, alternative lending offers more flexible financing options tailored to the needs of small businesses.
These alternative lenders operate outside the conventional banking system, providing a lifeline to small business owners who may struggle to qualify for traditional bank loans due to limited credit history or lack of collateral.
As a result, alternative lending has gained significant popularity in recent years. It offers a viable solution for small businesses seeking quick and accessible funding.
WHAT DOES YOUR BUSINESS NEED - DEBT SOLUTIONS OR OPERATING CAPITAL?
It really comes down to how you look at the issue—one expert suggests that there is no ‘one size fits all’ scenario when it comes to bringing in debt or operating capital for your business.
Equipment financing is a specific type of financing that can be used to acquire essential machinery and tools. Of course, that’s how a business is financed—bringing new debt to the balance sheet or financing assets you already have, in effect monetizing them for working capital.
UNDERSTANDING BUSINESS FUNDING OPTIONS
So it’s obvious that a better way to look at it is to ensure you have considered all the options under various scenarios, including alternative lending options. It is not a question of simply thinking you are somewhat forced into a particular finance solution when considering funding the business.
DOES A GOVERNMENT LOAN MAKE SENSE
A good example might be considering a Government small business loan, aka an 'SBL loan,' to add assets or leaseholds to your business or even to start a business from scratch, including a franchise operation of some sort.
While a Canadian chartered bank on might refuse to consider such financings in your circumstances, you might be pleasantly surprised that they will finance your project under the auspices of the SBL loan -
This is a term loan, and like other traditional bank loans, rates can be fixed or variable. The Canada Small Business Financing program might bar none, be the best financing for entrepreneurs.
BENEFITS OF ALTERNATIVE LENDING
Alternative lending offers several benefits to small business owners, including:
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Flexible Eligibility Requirements: Unlike traditional lenders, alternative lenders often have more lenient credit score requirements. They may also consider other factors, such as business revenue and cash flow, when evaluating loan applications, making it easier for small businesses to qualify.
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Faster Application Process: Alternative lenders typically offer online applications and quicker approval times. This streamlined process allows small business owners to access the funds they need quickly without the lengthy wait times associated with traditional bank loans.
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More Financing Options: From term loans and lines of credit to merchant cash advances, alternative lenders provide a range of financing options. These can be tailored to meet the specific needs of small businesses, offering greater flexibility in how funds are used.
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Increased Accessibility: Alternative lenders often cater to small businesses that may not qualify for traditional bank loans. This increased accessibility ensures that more small business owners can obtain the capital they need to grow and succeed.
TYPES OF ALTERNATIVE LOANS
Term Loans
Term loans are alternative loans that provide a lump sum of money upfront, repaid over a fixed term with interest.
These loans can be used for various purposes, including business expansion, equipment purchases, and working capital.
Alternative lenders often offer term loans with more flexible repayment terms and competitive interest rates than traditional bank loans, making them attractive options for small businesses seeking substantial funding.
Lines of Credit
A business line of credit is an alternative loan that provides access to a revolving line of credit, which can be drawn upon as needed.
This flexibility makes business lines of credit ideal for managing working capital, purchasing inventory, and addressing other short-term financing needs.
Alternative lenders may offer business lines of credit with more accommodating repayment terms and lower interest rates than traditional bank loans, providing small business owners with a versatile and cost-effective financing solution.
ALTERNATIVE LENDING SOLUTIONS ARE MORE FLEXIBLE AND TAKE LESS TIME! BUSINESS LOANS FOR STARTUPS
Many clients we talk to are often happy to consider business alternative lending if only to save time and management focus, given that traditional bank loan-type solutions might take many weeks or months to finalize.
Trust us, ‘ it’s a process’! Choosing an alternative lending option has its advantages and disadvantages compared to traditional bank loans;. At the same time, it may offer easier approval for small business funding, potential borrowers should be cautious and thoroughly review the terms of their loan agreements.
Financing for startups is a major challenge for entrepreneurs - Alternative lender solutions provide numerous solutions for financing startups.
CAN YOUR FIRM MEET BANK LENDING REQUIREMENTS?
Of course, you should consider all financing options, including bank financing. Just be forewarned that your business's financial history, length of time in business, cash flows, and profits will be scrutinized. All of those must align.
THE COST OF ALTERNATIVE FINANCING -
While business alternative lending sources might have a lower threshold level of criteria, they typically have higher rates due to the cost of paying interest - not all the time, but 99% of the time when it comes to comparing traditional and alternative lenders
We feel that the best way to approach that situation is to ensure that you view alternative finance as a short-term solution, typically a year or so.
This allows your business to get all the capital it needs but not lock it into a situation it cannot get out of. Any type of line of credit, traditional or alternative, is valuable to any business for its day-to-day funding needs.
CANADIAN BUSINESS FINANCING SOLUTIONS / SMALL BUSINESS FINANCING SOLUTIONS FROM ALTERNATIVE LENDERS
And what are those alternate finance sources? You’d be surprised at the number of choices - They include:
A/R Financing / Invoice financing / Invoice factoring
Inventory Loans
WORKING CAPITAL TERM LOANS / SHORT-TERM LOANS
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 / Peer Lending / Merchant Cash Advances / Business credit card - Good personal credit score required - higher interest rates but very fast and flexible financing tailored to your business needs and are based primarily on annual revenue.
Securitization
The type of financing you acquire will be a combination of the amount of money your firm needs and overall credit quality commensurate with funding options available -
Sometimes, having a business plan available is extremely valuable, if not required. 7 Park Avenue Financial business plans meet and exceed bank and commercial lender requirements.
Case Study:
Toronto-based manufacturer facing seasonal cash flow challenges secured $150,000 through alternative business lending. Flexible repayment terms aligned with revenue patterns resulted in 25% growth within six months. The business expanded while maintaining healthy cash flow through peak and off-peak seasons.
KEY TAKEAWAYS
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Revenue-based financing structures provide flexible repayment aligned with business performance.
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Digital lending platforms via alternative lending companies accelerate approval processes through automated underwriting.
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Alternative credit scoring models evaluate business health beyond traditional metrics.
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Cash flow lending focuses on business performance rather than collateral required in a traditional business loan
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Direct lender relationships eliminate intermediary costs and complications
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Borrowers only pay interest on the capital they utilize in specific business financing options
CONCLUSION
Alternative small business loans and financing options for small businesses and small business owners are a potential key to long-term business viability in today's turbulent times, including pandemics!
Alternative lending also strengthens traditional banking relationships by building an interim credit history.
Do you want to be able to assess the ‘ middle ground ‘ in Canadian business financing?
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you in ensuring you’re not left behind in finance solutions for your company.
FAQ
What makes alternative business lending faster than traditional loans?
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Digital application processes from some lenders - ie Merchant Advances
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Streamlined documentation requirements
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Automated underwriting systems
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Same-day funding capabilities
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Dedicated approval teams
How can alternative lending improve my business cash flow?
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Flexible repayment schedules
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Revenue-based options
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Seasonal payment adjustments
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Quick access to working capital
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No fixed monthly payments
What advantages do alternative lenders offer over traditional banks?
What security requirements exist?
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Personal guarantee options
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Flexible collateral requirements
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Cash flow-based security
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Revenue-sharing arrangements
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Asset-light solutions
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What documentation do I need to apply?
