YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE 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
Direct Line = 416 319 5769
Email = sprokop@7parkavenuefinancial.com
Unlock your business's true potential: Discover how smart financing can turn your struggles into success stories.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Business Loans 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”
CANADIAN BUSINESS LOAN FINANCING SOLUTIONS
Business capital. It’s almost always time to step outside to loan financing and other debt and cash flow facilities available to Canadian businesses.
And ‘ step outside ‘We, of course, refer to ‘ External Financing ‘! Let’s dig in.
Understanding the amortization period is crucial when considering loan terms and repayment schedules.
While it’s certainly possible to be 100% self-financing (many are, but not by choice!), the reality is that any business with growth plans or asset needs will sometimes require ongoing external financing. When those businesses have ongoing losses, some capital level is needed to replace those funds.
Understanding Business Financing Options
Navigating the business financing options landscape is crucial for Ontario's entrepreneurs and small business owners. Whether launching a startup or expanding an existing venture, understanding the various financing avenues can significantly impact your financial strategy.
Business financing options generally fall into two categories: debt financing and equity financing.
Debt financing involves borrowing funds from a financial institution or private lender, which must be repaid with interest. On the other hand, equity financing entails selling ownership shares to investors in exchange for capital.
Each financing type has its own advantages and disadvantages, making it essential for businesses to thoroughly evaluate their options to find the best fit for their specific needs.
UNDERSTANDING EXTERNAL FINANCING
How should the business owner/financial manager look at external financing? It simply a three-pronged choice:
Equity Capital
Debt
Asset Monetization
We’ve noted that many firms spend just a little too much time chasing down equity, given that only the smallest amount of firms even qualify for consideration, let alone approval, for private equity, VC money, etc.
Be realistic about your chances and focus on the achievable.
ALTERNATIVE FINANCING SOLUTIONS
Alternative Forms of Business Financing
In addition to traditional business loans, businesses have access to several alternative forms of financing.
Some owners might consider equity financing, which involves selling some business ownership. This can be particularly beneficial for companies needing substantial funding for growth or expansion.
Additionally, alternative funding methods include:
Invoice financing
Asset-based lending
Earlier-stage firms are often in the most challenging area - needing loan and asset financing the most but being in the least able to qualify ‘ category.
However, many alternative forms of financing can address business capital needs at this stage - they include:
P O / Contract Financing
Receivable Financing
Equipment Finance - (Lease financing can address all forms of credit quality)
Non-bank asset-based lending facilities
Short Term Working Capital Loans
Sale Leasebacks
Tax Credit Refund Financing - Sr&Ed loans
Government Guaranteed Small Business Loans - amortization schedule up to ten years, competitive rates for variable or fixed interest rate , ability to fund leasehold improvements, limited personal guarantee - Maximum loan amount is 1.1Million dollars with repayment schedule tailored to your needs
Cash flow loans - for more mature businesses
Not being able to access the type and amount of business capital the firm needs forces many owners to mix business and personal credit—i.e., credit card debt, collateral home mortgages, and collapsing savings.
Top experts tell us that banks and commercial finance companies make 90% of all business loans to firms in the SME COMMERCIAL area. The business owner should focus on this area. Credit unions, government programmes, and credit card borrowing provide the other 10% of loans and financing.
To best access the right amount of loan/asset financing you need, it’s critical to have a clear loan package available. That includes potentially (but not always) a business plan and financial statements, cash flow projection. That cash flow, by the way, is probably most required and least provided by most!
Selecting the Right Business Financing Option
Choosing the right business financing option is a critical decision for small businesses. Businesses must carefully assess their financial needs and goals to determine the most suitable financing option for their unique situation.
Key factors to consider include:
Interest rates - fixed or variable interest rate?
Repayment terms
Collateral requirements
Additionally, businesses should evaluate their cash flow, working capital, and the feasibility of making lump sum payments. Talk to the 7 Park Avenue Financial team for valuable insights and support, helping businesses make informed decisions about their financial futures and ensuring they select the best financing solution for their needs.
KEY TAKEAWAYS
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Understanding credit requirements help secure favourable loan terms.
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Proper cash flow management ensures timely repayments and builds lender trust.
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Collateral evaluation impacts loan approval and interest rates significantly.
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Detailed business plans demonstrate credibility to potential lenders.
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Knowledge of various loan types allows for strategic financing decisions.
CONCLUSION
Looking for a good ‘ fast forward ‘ towards successful business capital and loan financing?
Call 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor. You’re in the right place to fund your specific financial needs!
FAQ
How can business loan financing help my company expand?
It provides the capital needed to invest in new equipment, hire additional staff, or open new locations, allowing your company to seize growth opportunities and increase market share.
What advantages does business loan financing offer over using personal savings?
Business loan financing preserves your savings, offers potential tax benefits, and allows you to leverage borrowed funds for higher returns while maintaining a clear separation between personal and business finances.
Can business loan financing improve my company’s cash flow?
Yes, it can provide a cash injection to manage seasonal fluctuations, bridge gaps in accounts receivable, or take advantage of bulk purchase discounts, ultimately improving overall cash flow management.
How does business loan financing impact my company’s credit profile?
Responsibly managing a business loan can help build a strong credit profile for your company, potentially leading to better terms on future financing and increased credibility with suppliers and partners.
What role does business loan financing play in managing business risk?
Business loan financing can act as a safety net during unexpected challenges, providing funds to weather economic downturns, adapt to market changes, or invest in risk mitigation strategies, ensuring long-term stability.
What types of business loan financing are available to Canadian companies?
Canadian companies can access various types of business loan financing, including term loans, lines of credit, equipment financing, invoice factoring, and government-backed loans through institutions like the Business Development Bank of Canada (BDC).
How long does the business loan financing process typically take to raise capital required?
Depending on the loan type and amount, it can vary widely, from a few days for some online lenders to several weeks or months for traditional bank loans or more complex financing arrangements.
What documents are usually required for business loan financing applications?
Common documents required by financial institutions and commercial lenders include business and personal tax returns, personal guarantee availability around the home and investment properties, financial statements, bank statements, info on intangible assets, detailed business plans, profit and loss projections, and collateral documentation.
Are specific industries facing challenges in obtaining business loan financing to secure funds?
Some industries, such as startups, restaurants, and seasonal businesses, may face more challenges due to perceived higher risk. However, specialized lenders and alternative financing options often cater to these sectors.
How does my credit score affect my company’s ability to finance business loans?
For small businesses and startups, personal credit scores often play a significant role in loan approval and terms. A solid personal credit score can increase your chances of approval and potentially lead to better interest rates and terms.
What factors do lenders consider when evaluating a business loan application?
Lenders typically evaluate credit scores, cash flow, time in business, industry outlook, collateral availability, and the purpose of the loan. They also assess the business’s financial statements and projections to determine its ability to repay the loan.
How can I determine the right amount of business loan financing for my company?
To determine the right amount, analyze your business needs, cash flow projections, and repayment capacity. Consider the specific purpose of the loan, the potential return on investment, and your company’s ability to manage debt responsibly without overextending its financial resources.
What are the key differences between secured and unsecured business loans?
Secured loans require collateral, often resulting in lower interest rates and higher borrowing limits, but put assets at risk. Unsecured loans don’t require collateral, offering faster approval and less risk to business assets, but typically come with higher interest rates and stricter qualification criteria.
