YOU ARE LOOKING FOR CANADIAN BUSINESS FINANCING
NON BANK BUSINESS LOANS & SOURCES OF CAPITAL FOR THE SMALL BUSINESS OWNER
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing businesses today
Unaware / Dissatisfied with your financing options?
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Email - sprokop@7parkavenuefinancial.com
FINANCING A BUSINESS IN CANADA / FINANCING OPTIONS
Business funding sources in Canada can come from both traditional lenders and financial institutions, aka ' the bank, 'and non-bank lenders, who often are more equipped and prepared to handle shorter-term needs in funding businesses in a more timely manner.
DO TRADITIONAL BANK LOANS FOR BUSINESSES MEET YOUR FUNDING NEEDS?
In their search for funds, most business owners or their financial managers know that traditional banking organizations in Canada are often unable to meet your business loan and cash flow needs when you are going through a period of financial challenges when it comes to funding for businesses experiencing revenue growth or other challenges.
So in a time when you are in perhaps a growth mode or are experiencing working capital shortages, the traditional bank or business credit union will be unable to meet your needs. A bank loan and other bank offerings such as lines of credit or financing equipment will always come at a low cost, but many firms are often outside of the ' credit box. '
2 KEY ISSUES ON BANK APPROVAL
The harsh reality? Simply that when it comes to financing for business, Canadian banks focus on cash flow and collateral that is more consistent historically and in the present. So high growth and larger build-ups in inventory and receivables often create uncertainty in the minds of Canadian bank lenders as they examine financial statements
Credit history and the personal net worth of owners are also a key emphasis in bank commercial lending - Many firms find both the process in bank programs cumbersome and time-consuming when they are not fully prepared for a funding option.
COMPANIES IN A TEMPORARY DOWNTURN CAN NOT OBTAIN BANK FINANCING
Even more pronounced is their lack of desire for funding the business when it is restructuring or experiencing temporary negative cash flow. And don't even talk about taking on very large new orders or contracts in this period of time! So, unfortunately, sometimes, a bank will focus on reducing your access to funding, let alone increasing it. Keep in mind though that alternative finance solutions such as purchase order financing can readily address those large orders.
HOW CAN SMALL BUSINESSES PREPARE FOR ALTERNATIVE LENDING OPTIONS / BENEFITS OF ALTERNATIVE LENDING
ALTERNATIVE LENDING IN CANADA IS THE SOLUTION YOU ARE LOOKING FOR
What are the types of financing for small businesses? What solutions are available? Thankfully, alternative finance companies specialize in various forms of asset and cash flow financing that will provide a bridge to more normalized financing structures.
In some cases, it's a ' bridge loan ' to get your company to its next stage of growth and profitability or resumption of profit generation. These types of solutions allow you to remove the ' turbulence' that engulfs mgmt in times of cash flow challenges. Again, a good credit score for the business owner helps but isn't always a final requirement when looking at funding from asset-based lenders.
ENDING YOUR CASH FLOW NEEDS
So what do we need to consider when it comes to borrowing for business - It's often simply a case of identifying the best source of capital and not overemphasizing the cost of funding in the short term, which in almost all cases is higher in alternative finance than bank loans. In addition, ensure that you are not taking on too much debt on the balance sheet - and in many cases, alternative finance sources monetize assets and don't generate debt.
CANADIAN GOVERNMENT FUNDING
Numerous government loans and, in some cases, grants can be accessed without entrepreneurs and business owners having to leverage personal assets/ personal guarantees, etc. when it comes to funding for business and the support for business from the government.
The federal Canada Small Business Financing program provides loans up to 1 Million $ in a term loan structure for assets such as equipment for business operations, leasehold improvements, and real estate. Interest payments are very competitive in the program.
The Canadian government's crown corporation business lender also provides term loans and working capital loans to acquire assets, computers, and software/technology and lump sum cash flow loans for any general corporate purpose - allowing companies to grow and increase sales of their products and services.
Talk to the 7 Park Avenue Financial team about the cost of BDC loans and if a BDC small business loan is right for your firm and industry.
Loans are specially tailored to each company's needs with flexible payments and attractive business interest rates, especially for new business funding/startups (such as restaurant loans) and the innovative funding money a new business needs when they are in the early stages of development.
A Business plan is a typical requirement for government loans and traditional bank loans. 7 Park Avenue Financial business plans we prepare for clients meet and exceed bank and commercial lender requirements for small business loans.
If your firm has a focus on innovation via research and development and is using the Government Scientific Research and Experimental Development Program don't forget that SR&ED loans are available to facilitate the need of not having to wait for your refund as you receive funding when you file your claim under the sred loan process. SR&ED is one of the best and most proven government programs in Canada for small business innovation research.
ADDRESSING INTEREST RATES AND THE COST OF CAPITAL IN ALTERNATIVE FINANCE
Business owners must realize that the reward of taking on more business and generating more profits, and funding daily operations will many times outweigh an additional or temporary cost of capital and a lower interest rate that entrepreneurs occasionally over-focus on!
Before you look for funding, make sure to create a solid business plan. Your business proposal must explain not only the nature of your company and its goals but also how much funding is required. 7 Park Avenue Financial prepares business plans and financial projections for our clients that meet and exceed bank and commercial lender requirements. Nonprofit organizations can access the program also!
Finally, understand that in the majority of situations, non-bank lenders who specialize in small business funding fully realize these solutions are temporary in nature. So again, we're talking about that bridge. At 7 Park Avenue Financial, we focus on a plan to exit to more traditional financing solutions in funding for small business.
So why alternative finance solutions for business financing? Simply these firms look at assets and your current cash flow needs - solutions are tailored to your current situation. Start-up loans are also available via alternate funding sources.
START-UP FINANCING SOURCES / FUNDING STARTUP COMPANIES
The difficulty of getting financing for your business can be a major challenge.
As an entrepreneur, it is important to show your commitment and dedication by investing in yourself via some of your own capital. There are two ways you can do this; either with cash or assets as collateral for loans. Bootstrapping means stretching financial resources as far as possible.
CONCLUSION - LOOKING FOR FUNDING?
When you're looking for funding, it can be difficult to determine which source is best. While common ones include the traditional business loan/bank loans or business lines of credit those may not be accessible or work out in your favor for an existing business.
There are also asset based lenders that provide a number of financing solutions
Bottom line? If equity venture capital/crowdfunding and similar finance source solutions seem a long way out, there are several alternative financing solutions for your firm.
Small business owners should focus on their current cash business needs and repayment, not necessarily always 'rates.' Analyze the merits of taking on new business or larger contracts when you're looking at types of business financing.
So whether you are looking for finance for a startup business or looking for funding day to day business needs to run and grow your company, and if you want to eliminate financing risk, speak to 7 Park Avenue Financial, a trusted and experienced Canadian business financing advisor with a track record of success to assist with your company's financing needs for the long term for all the funding you need.
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION
What are Business Incubators?
Incubators are a great way to get your business off the ground. The best ones provide support in various stages of development, helping you grow from ideas into a successful enterprise with room for expansion and job creation.
They often have niches within the business world that focus on different sectors and stages of growth. For example, there's are economic development incubator that helps to create jobs by hosting services for newly founded companies.
Others provide support and allow forms to build relationships throughout various developmental periods such as in high-tech industries where entrepreneurs may be developing new products/services with cutting-edge technology.
What are the criteria for grants?
Grants will often require that you find matching funds and this amount varies greatly depending on the grantor for entrepreneurs looking to raise money.
Grant reviewers will be looking for evidence that can show the financial and time benefits of funding. They want to see how you'll use their money most effectively, so they assess significance (what problem does this solve?), approach (who do we hope to reach?) innovation & expertise in carrying out proposed activities.
Are venture capital funds suitable for my business?
Venture capital funding is an excellent option for businesses that require more than just startup money when borrowing money under equity financing, as well as those looking to expand their market share. VCs are professional investors who work closely with company management and set milestones or targets depending on what's needed by each individual business situation; they also provide advice about how best to go forward
Venture capitalists ( and the angel investor/angel investors ) will work with companies on setting milestones or targets according to needs and high growth potential.
Venture funds can be a great option for businesses looking for a term sheet, and that are beyond the startup period as well as those who need larger amounts of funding to expand and increase market share.
What is a merchant cash advance?
A merchant cash advance is a short-term working capital loan that is an alternative to a traditional business loan. They are structured as short-term installment loans based on formula around your sales, company's cash flow, years in business, and owner credit history. Although a business will pay interest at a higher rate these loans are easily accessible when considering other options.
Click here for the business finance track record of 7 Park Avenue Financial
