YOUR COMPANY IS LOOKING FOR WORKING CAPITAL FINANCE!
BUSINESS CASH FLOW PROBLEMS - SOLVED!
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the most significant issues facing business today.
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CONTACT US - 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
Canadian business financing empowers entrepreneurs to transform their visions into thriving enterprises, propelling economic growth and innovation across the country.
Unlock your business potential: Discover the key to accessing capital and fueling your company's growth in Canada's dynamic financial landscape.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Canadian Business Financing 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 FINANCING
Cash flow and working capital needs are often ' timeless' in small business. However, when is the best time to assess business financing services and solutions? It's almost... always. Let's dig in.
THE SEARCH FOR CANADIAN BUSINESS FINANCING SOLUTIONS THAT ADDRESS YOUR NEEDS
Financing needs vary by industry and type of business, but if your business requires the means to manage and accelerate cash flow, help is often around the corner when it comes to a business loan. It isn't easy sometimes to find that corner!
Shocking statistic!
According to a Canadian Federation of Independent Business survey, 24% of small business owners reported considering bankruptcy or winding down their business due to challenges in accessing adequate financing during the post-pandemic recovery period.
SALES VERSUS PROFIT? WHAT'S MORE IMPORTANT TO YOUR BUSINESS?
The greatest irony in business, or at least one of those ironies, is sales and profit vs. cash flow performance. Cash flow almost always lags.
But can the owner/manager source the tools to solve the problem? Top experts in Canada tell us that working capital solutions are, in fact, the 2nd highest priority for owners/entrepreneurs. (Sales and Mktg. were first)
ACCOUNTS RECEIVABLE FINANCING SOLUTIONS DELIVER ON WORKING CAPITAL NEEDS
In some circumstances, the gross margin and profit amount relate directly to the financing you can either achieve or handle.
A concrete example of this might be RECEIVABLE FINANCING, i.e., managing the second most liquid asset on your books next to cash.
While A/R finance provides unlimited working capital, your firm must have the gross margins to absorb the additional costs associated with that financing service.
UTILIZE ALTERNATIVE FINANCE OPTIONS WHEN TRADITIONAL FINANCING IS NOT AVAILABLE
Although many businesses operate in seasonal industries, the owner /manager must secure traditional or alternative financing.
Companies must consider those ' alternative ' options when Canadian chartered bank financing is either ' unavailable’... or ' not enough.'
ASSET TURNOVER IS KEY TO BUSINESS SUCCESS
Many business owners and financial managers don't realize that managing current assets better and effectively ' monetizing ' them allows the company to avoid taking on more debt or raising equity via some source.
LOOKING TO BRING SOME POSITIVE CASH FLOW TO THE BALANCE SHEET?
MAKE SURE TO CHECK OUT THESE SOLUTIONS HERE AT 7 PARK AVENUE FINANCIAL
What are those ' ASSET MONETIZATION' tools and business financing services? They include:
Bank lines of credit (low cost/flexible/more difficult to attain)
A/R Finance - cash flowing your receivables as soon as sales are generated to the extent you need cash
Inventory Finance - Particularly suited to retailers, manufacturers and distributors
Tax Credits - Cash flowing Govt SR&ED Credits
Equipment Financing
Government Small Business Loan: These loans fund equipment, real estate, working capital costs, tenant intangible assets / purchasing leasehold improvements. Thousands of businesses borrow and successfully secure funds under the federal Canada Small Business Financing Program. An additional benefit is the requirement of only a limited unsecured personal guarantee and a rate of only 3% over the lender's prime lending rate. A small registration fee is required upon approval.
The maximum loan amount under the program is 1.1 Million dollars
ABL'S - (Non-bank ) Asset-based lines of credit that bundle all your current business Assets into one borrowing facility for a specific loan amount - Asset-based financing is flexible lending, as facilities grow as your sales and assets grow
Purchase Order/Supply Chain Finance - the ability to fund larger orders or contracts where financing otherwise might not be available
Businesses in the SME (small to medium enterprise) commercial area tend to ' struggle' more with business financing challenges. Naturally, that slows down their desires to grow dramatically, take on new products and services, or buy a competitor.
CASH FLOW PROJECTIONS ARE KEY
The ability to understand your cash flow needs, whether monthly, quarterly or annually, will almost always benefit ownership/management.
Current studies by experts suggest that over 60% of businesses prepare cash flow forecast needs.
Your cash flow statement, a key part of your business financial statements, will show you the effects of your business operations when using capital and borrowing capital.
KEY TAKEAWAYS
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Loan types: Understanding various financing options tailored to specific business needs
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Credit requirements: Grasping the importance of credit scores and financial statements
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Collateral considerations: Recognizing the role of assets in securing loans
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Government support: Exploring federal and provincial programs designed to assist businesses
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Alternative lenders: Evaluating non-traditional financing sources for unique situations
CONCLUSION
So kudos to that man or woman who coined the ' CASH IS KING' phrase for small businesses in Canada.
If you are looking to grow your business and access business cash, and if you want to become more ' literate ' to business financing services that can alter your financial success, call 7 Park Avenue Financial , a trusted, credible and experienced Canadian business financing advisor.
Find out ' what’s up ' with working capital finance solutions that can positively affect your company's future success.
FAQ
What are the main advantages of securing Canadian business financing?
Access to capital allows businesses to invest in growth opportunities, fund operations, purchase equipment, and expand into new markets, ultimately increasing profitability and market share.
How can Canadian business financing help improve cash flow?
Financing options like lines of credit and invoice factoring provide working capital to manage cash flow gaps, ensuring smooth operations and the ability to capitalize on time-sensitive opportunities.
In what ways does Canadian business financing support innovation?
Specialized funding programs from a financial institution or government grants often target research and development initiatives, enabling businesses to invest in new technologies, product development, and process improvements at a competitive interest rate and tailored repayment schedule.
How does Canadian business financing contribute to job creation?
By providing the necessary capital for expansion and growth, financing allows businesses to hire more employees, stimulating local economies and contributing to overall employment rates.
What role does Canadian business financing play in supporting exports?
Export Development Canada (EDC) and other programs from financial institutions such as banks offer financing solutions to help businesses enter international markets, mitigate risks, and expand their global footprint based on how much financing the business needs.
How do fintech companies impact Canadian business financing?
Fintech firms are revolutionizing the lending landscape by offering faster approvals, innovative underwriting methods, and more flexible terms, particularly for small businesses and startups.
What are the key differences between debt and equity financing for Canadian businesses?
Debt financing involves borrowing money that must be repaid with interest. In contrast, equity financing involves selling ownership stakes in the company in exchange for capital, each with distinct advantages and considerations.
How does seasonality affect Canadian business financing options?
Seasonal businesses may require specialized financing solutions, such as cyclical lines of credit or revenue-based financing, to manage cash flow fluctuations throughout the year.
What role do credit unions play in Canadian business financing?
Credit unions often offer personalized service and competitive rates for business loans, particularly for small and medium-sized enterprises with strong ties to local communities.
How can Canadian businesses leverage intellectual property for financing?
Intellectual property (IP) can be used as collateral for loans or to attract investors, particularly in knowledge-based industries where patents, trademarks, and copyrights hold significant value.
What factors do lenders consider when evaluating Canadian business financing applications?
Lenders typically assess credit history, financial statements, business plans, cash flow projections, collateral, and industry outlook to determine creditworthiness and loan terms.
How do government-backed loan programs differ from traditional bank loans for Canadian businesses?
Government-backed programs via the federal government often offer more favourable terms, lower interest rates, and higher approval rates for companies that may not qualify for conventional bank loans, particularly for startups and high-risk industries.
What are the typical repayment terms for Canadian business financing options?
Repayment terms vary widely depending on the type of financing, ranging from short-term loans with daily or weekly payments to long-term loans with monthly installments over several years. Businesses can choose options that best align with their cash flow and growth projections.
