YOUR COMPANY IS LOOKING FOR BUSINESS CREDIT!
HOW TO ACCESS BUSINESS LINES OF CREDIT 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?
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
Business credit lines in Canada are often a solution to one of the biggest challenges business owners and financial managers face: ' cash flow shortfalls' and the ability to access an unsecured business line of credit.
CASH FLOW CHALLENGE IN SMB COMPANIES IN CANADA
Canada's leading bank recently advised that over 51% of business has those cash flow challenges. So your company wants to be in that other 49%, and a commercial line of credit can be the answer, so let’s dig in.
MANAGING THE CASH FLOW CRUNCH
There's no more significant lesson in small business working capital financing than managing your way through finance shortfalls. As simple as the solution is, the business owner/manager will surely agree with one of our mentors who once said ' tuition is very high in the school of experience.'
DO BANKS SERVE THE NEEDS OF SMALL BUSINESS IN CANADA
While the Canadian banks tout the support of the SME COMMERCIAL finance sector and small businesses in general, the reality is that bank credit lines are tough to get, and not everyone understands there are alternatives to the elusive credit limit based on your current assets such as accounts receivable and inventory. When it comes to banks for business loan funding ensure you are properly prepared with good financials, etc to secure the operating line of credit you need.
HOW CAN THE SMALL BUSINESS OWNER ADDRESS CASH FLOW INTERNALLY - ANSWER = ASSET TURNOVER!
We always; point out that the need for any external financing can be eliminated through some sound internal mgmt (PHYSICIAN HEAL THYSELF?!) - that includes improving a/r and inventory turns, watching who you extend credit to, and matching finance options to finance needs. For example, utilize equipment financing to finance long-term fixed asset needs.
SHORT TERM OR SEASONAL CASH BULGE NEEDS
Often the issue of ' seasonality' or what we could call short term temporary bulges in financing needs is the root of the problem. Enter the business credit line, allowing you to draw on business assets via a revolving facility.
THE STARTUP CHALLENGE
Companies in the early-stage have a major challenge in accessing credit lines, the main reason being they don't have the proven profits, debt structure, and cash flow ratios required. They then insist on outside personal assets, which owners may be unwilling or unable to provide - as well of course as a good credit score and personal credit history.
WHAT ARE SOME SOLUTIONS IN CANADIAN BUSINESS FINANCING TO ADDRESS CASH FLOWS IN A BUSINESS
ALTERNATIVES: They include proven financing solutions such as -
Factoring / Confidential Receivable Finance
Secured inventory financing
Monetizing SR ED tax credits via a cash flow loan
Non-bank ABL asset-based lines of credit
P O / Contract Financing
Royalty Financing
Business Credit Cards
On all revolving facilities, you only pay interest on the interest rate in your transaction based solely on the amount of funds you are using/have drawn down. Also, ensure you understand working capital loan vs line of credit implications - they are different solutions to the same problem.
LET 7 PARK AVENUE FINANCIAL BE YOUR BUSINESS FUNDING ADVISOR
Critical to achieving business line of credit success is your ability to present your case properly. This may be done by the owner, financial manager, or an experienced business financing advisor.
CONCLUSION
If you are unable to present your year-end financials, an interim balance sheet and income statement, as well as a cash flow forecast, you are already behind the 8 ball. If you want to really impress the bank or commercial finance company, be armed with aged payable, receivables, and possibly a list of fixed assets.
We've provided everyday solutions to business credit needs. If your business is one of the 51% that needs some form of traditional or alternative cash flow financing via business credit, seek out and speak to a trusted, credible, and experienced Canadian business financing advisor who can help you ' think big' on fixing the financing conundrum around the small business loan and credit line loans you need to grow your business.
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Stan Prokop
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