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
Suite 301
Oakville, Ontario
L6J 7J8
Business credit in Canada often feels like a ' treasure hunt' of sorts for Canadian business owners/financial managers. The reality in the search for those funding sources that will work for your company is that, like many business aspects, some key basics apply and help guarantee success. Let's dig in.
There's always an interesting debate around whether businesses in the Small to Medium Enterprise (SME) space either require financing or, more importantly, are getting serviced properly by banks and other traditional lenders. While that debate rages on, top experts agree that it is important for owners/managers to understand options and qualifications at the end of the day.
While business credit needs in Canada relate to the business', most owners often are surprised to find that their personal financials play heavily into any borrowing situation. It's probably a bit closer to the truth that while personal credit history won't be the only or the major cause of a decline in funding approval for your business, it clearly carries a vote. Bottom line - ensure you understand your personal financial situation's dynamics as it relates to guaranteeing your loan / getting approved.
A hard fact of life basic for business funding is that ' time in business' counts. Starts ups and early-stage companies know this all too well, and of course, traditional lenders such as Canadian chartered banks place heavy focus on operating history. Hopefully, sales and sales growth also translate into profits and cash flow, and asset acquisition, so ensuring you can demonstrate revenue generation potential is key in any business finance plan.
Do business owners/financial managers really properly assess challenges in the following two areas?
1. The amount of financing they need
2. The type of financing they require
We've never been fully sure of that if only for the fact we've seen many clients telling us they have spent time and money chasing down sources of financing for fixed assets, working capital, or even real estate from lenders that were totally inappropriate for their requirements or financial situation...
The concept of ' collateral' plays heavily into any traditional or alternative lending solution; in many cases, hard assets can even backstop working capital and cash flow solutions.
Many businesses that have written off their chances of getting financing from a bank at bank rates often forget they might be eligible for the Canadian Govt Guaranteed Small Business Loan ( 350k max) offered through banks. We're of the strong opinion it’s important to focus on a good banker, not any specific bank.
As we have hinted, numerous non-bank financial solutions are available to the business owner - they include:
A/R Financing
Inventory Finance
Asset-based business revolving credit lines
Tax credit financing (Primarily SR&ED Refundable tax credits)
Equipment Leasing/ Sale leasebacks
Bridge Loans
Purchase Order Financing
Sales/Royalty finance
Business owners are swift to share reasons they have been declined for financing needs. Those all too common issues are collateral, personal credit history, industry out of favour, lack of proven cash flow, owner equity issues, etc. These issues can often be addressed via numerous financial solutions not always generally known to business people.
If you're focusing on being successful in the treasure hunt for business credit and funding sources in Canada, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who is committed to successful financial solutions to the Canadian SME Commercial marketplace.
Stan Prokop
