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 - sprokop7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Business finance is partly about sourcing the right financing solutions from banks and commercial lenders. Funding via debt, cash flow or asset monetization comes fraught with risk if wrong choices are made. Can you avoid those mistakes? We sure think so. Let's dig in.
CAN YOUR FIRM AFFORD TO TAKE ON MORE DEBT?
Taking on debt in your business has all sorts of connotations - one of them that debt is NOT good - which absolutely isn't the case if you utilize the right amount of leverage. When debt doesn't assist you in growing sales revenues or profits while at the same time putting your company at risk... well, that's when things become a ' mistake ' quickly.
REASONS FOR TAKING ON NEW FINANCING IN YOUR BUSINESS
So are there some reasons for assessing available forms of financing that make sense? You knew there was, one of them being business expansion via new premises, or perhaps entering new markets for your product or services.
HOW TO PREPARE FOR TAKING ON NEW CANADIAN BUSINESS FINANCING INITIATIVES
But even if your business is generating profits, they often are not enough to fund either of those decisions. At that point, it makes solid sense to spend some time on cash flows or a business plan to ensure revenues will meet expectations. 7 Park Avenue Financial business plans meet and exceed bank and commercial lender requirements.
CAN A GOVERNMENT LOAN VIA THE CANADA SMALL BUSINESS FINANCING PROGRAM HELP YOUR BUSINESS
Businesses in the SME sector can often utilize Federal govt business loans to move into new premises and perform leasehold improvements required to generate sales and profits. Those loans need to be repaid out of cash flow. Leasehold improvements for retail and other commercial concerns are challenging if only because it's tough to assess your real return on investment.
The government-guaranteed business loan is a term loan and not a line of credit - primarily, the loans are used for business equipment, leasehold, and real estate. The alternative to using the SBL loan for commercial real estate is typical commercial mortgage loan financing solutions. The program's interest rate is attractive and competitive given the typical borrower's nature - either a small business, startup or franchise. It is not short term financing - as typical amortization is between 2-5 years. The financial institution that both process and administer the program for the Government of Canada are Canadian banks and business-oriented credit unions.
Ensure you have a proper business plan in place for government loans and other forms of financing. 7 Park Avenue Financial business plans meet and exceed banks' requirements and other traditional and alternative lenders.
HOW CAN A BUSINESS ACQUIRE NEW BUSINESS ASSETS AND TECHNOLOGY
In many instances, new equipment or technology needs to be acquired. Equipment lease financing is as close to the perfect solution, and when these assets help generate sales and profits, the planets are clearly aligned! Lease financing can be structured in various ways, ensuring maximum flexibility re monthly payments, terms, etc.
INVENTORY FINANCING
Inventory is often a key component in the search for growth. It can be financed on its own via your bank or part of an asset-based lending solution that focuses on the real value and turnover of your inventories.
We've talked about debt financing, but often the critical need in your business revolves around the cash flow cap that exists because of the need you have to carry inventory and extend credit to clients.
HOW DOES A BUSINESS ADDRESS WORKING CAPITAL NEEDS - HERE ARE 4 SOLUTIONS
This critical area of business is addressed through:
Working capital term loans
Canadian chartered bank lines of credit
A/R Financing (Factoring / Confidential Receivable Finance)
ABL Asset-based lines of credit (they merge your A/R, inventory and equipment into one business credit line you can borrow against based on those asset levels)
THE COST OF ALTERNATIVE FINANCING AND TRADITIONAL FINANCING
Interest on cash flow loans, A/R facilities and bank credit lines reduce profits but grow sales - They are the perfect matching financing for cash flow needs.
KNOW YOUR CASH FLOW COVERAGE
As a general rule, banks utilize a calculation known as ' cash flow coverage, 'which in their case is usually a requirement that cash flows cover debt payments by a factor of around 1.5.
CONCLUSION
Our bottom line? Debt financing should be viewed as an investment in your business but MUST be done properly. In many cases monetizing assets via cash flow financing is a solid alternative. Other alternative financing vehicles for cash flow include SR&ED tax credit monetization, PO Finance, Sales Royalty financing, Merchant cash advances, business credit cards, etc. All of these alternative financing solutions can help small businesses target certain key areas of your business capital needs.
If you want to ensure you're making the ' best choice ' in funding for business finance via commercial lenders and banks, seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can help you avoid costly mistakes and grow your business with funding solutions tailored to your needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2021/Rights Reserved
