YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE!
SMALL BUSINESS FINANCE 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
With the right financing strategy, unlock your business's full potential and discover the capital you need to thrive in today's competitive market.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Sources Of Financing For Business 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”
SOURCES OF BUSINESS FINANCE
Dear Anxious In Canada: There's no question that the right financing sources and business loans can deliver on that 'healing power' that the business owner / financial manager needs to propel the company to that 'next level' of sales profits.
In some cases, that might even mean a turnaround from less fortunate circumstances. Let's examine financing a business in Canada.
Exploring the Source of Financing for Business
ARE THERE ALTERNATIVES TO TRADITIONAL BANK FINANCING IN CANADA
Where can you get small business loans in Canada? We get that one a lot, and the reality is that top experts in Canadian business financing constantly stress the ‘conservatism’ of our banks and major financial companies and institutions.
Conservatism is probably justified when it comes to start-up and early-growth firms. The good news is that many ‘niche’ financial solutions, such as debt capital, are available for financing categories.
Additionally, government grants can be viable for start-ups and businesses in specific industries, particularly those expanding in desired sectors or locations.
THE CHALLENGE OF EQUITY FINANCING EARLY-STAGE FIRMS AND STARTUPS / FRANCHISES, ETC
Funding for business startup projects is an ‘ evergreen’ need for entrepreneurs.
Even the government steps in re startups, franchises, etc. It offers the Government Guaranteed Business Loan, making billions accessible for early-stage and smaller firms with less than 10 Million dollars in sales revenues.
Your ability to access government loans comes with various criteria and eligibility requirements - let the 7 Park Avenue Financial team work with you on these funding sources.
Whether you are a small business or a medium-sized firm, accessing government loans could be a valuable source of business capital.
In addition to government loans, leveraging your own money and personal savings can be crucial. While utilizing personal investment, it's also important to consider government incentives and programs that provide financial assistance for business development.
What key factors must the owner/manager have under their hat to access a financing source that makes sense for funding business? Ask yourselves the following questions, and being honest helps!
ASK YOURSELF THESE 3 KEY QUESTIONS IN ADDRESSING BUSINESS FUNDING NEEDS
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Do you know the minimum and maximum amount of financing your business needs?
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Can you correctly identify if your business is in the right stage for growth potential?
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If you were aware of those business loans and asset monetization facilities that make sense, would you feel 100% comfortable positioning your company for the right type of financing?
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Additionally, are you familiar with various fundraising methods, such as seeking funding from personal networks, utilizing equity financing options, or attracting investments from venture capitalists, angel investors, and government assistance?
If you have a lot of time to waste, then a recommended strategy is to approach all financial institutions that offer business finance - Good luck!
ASK YOURSELF THESE 3 KEY QUESTIONS IN ADDRESSING BUSINESS FUNDING NEEDS, INCLUDING GOVERNMENT GRANTS
LET 7 PARK AVENUE FINANCIAL BE YOUR TRUSTED FINANCING PARTNER
Putting our sarcasm aside, it’s key to know that banks and commercial finance firms focus on specific sizes, offerings, and credit quality.
The Government of Canada offers programs, grants, and loan guarantees from participating financial institutions essential for new entrepreneurs seeking financial assistance and training.
So, it should be obvious that you should work with someone who knows which commercial lenders are 100% interested in providing your firm with the financing it requires.
WHAT IS KEY BANK CRITERIA FOR DEBT FINANCING
While Canadian chartered banks are the best bet for cost and access to capital, being established financially is critical.
Banks will examine your key issues, such as your capacity to borrow, your debt, and what collateral and general business conditions exist in your company and industry.
Tax credits provided by federal and provincial governments can significantly alleviate costs associated with business development, ensuring that entrepreneurs have more resources to grow their ventures.
Most financial institutions will focus on a personal guarantee from the borrower - in alternative lending, much less focus is placed on that guarantee, credit score, etc.;- Any ‘new business‘ always has a higher bar to achieve the funding you need,
LET 7 PARK AVENUE FINANCIAL DEMONSTRATE HOW THESE ALTERNATIVE FINANCING SOURCES CAN HELP YOUR COMPANY
Traditional banks versus alternative lending - what works for your business? Numerous financing sources exist outside the bank in Canada - they offer:
A/R Financing - day-to-day funds for business via monetizing accounts receivable
Inventory Finance
Working Capital Term Loans
Tax Credit Monetization Financing1)
Government Guaranteed Business Loans / Business Development Bank Of Canada ( BDC ) - Government loans for new business under Industry Canada or Canada’s bank for entrepreneurs - Government funding for small businesses and growing companies
PO/Contract financing
Sales royalty financing
Asset-based business credit lines - revolving facilities that allow you to borrow against receivables, inventory and equipment
Equipment Leasing/ Sale Leasebacks
Venture capital firms provide significant investments in young, privately held businesses in exchange for ownership shares - which reduces your ownership stake! These firms prefer established companies with proven management and seek high investment returns. They often take a hands-on approach to influencing company direction.
KEY TAKEAWAYS
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Debt vs. equity financing: Understanding the fundamental difference between borrowing money and selling ownership stakes
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Risk assessment: Evaluating the potential risks associated with various funding sources and their impact on business operations
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Collateral requirements: Recognizing the role of assets in securing certain types of loans or investments
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Cost of capital: Analyzing the true expense of different financing options, including interest rates and equity dilution
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Funding stages: Identifying appropriate financing sources based on your company’s growth phase and needs
CONCLUSION - SECURE YOUR BUSINESS FUTURE
If you're focused on that ' healing power' achieved in proper business financing and accessing working capital and cash flow and are fatigued by talking to ' angel investors,' ' venture capitalists,' economic development sources, business grants, etc.!
Call 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor who can help eliminate confusion around business loan achievability and grow revenues from your products or services.
Whether it's a small business government loan, traditional bank solutions, or several newer alternative lending solutions, funding the business never seemed more possible with the Best financing options for small business startups
FAQ
What are the main advantages of securing external financing for my business?
External financing can provide the capital to fund growth initiatives, expand operations, invest in new technologies, and seize market opportunities that may otherwise be out of reach with limited internal resources.
How can different financing options impact my business's cash flow?
Various financing options offer different repayment structures, which can significantly impact your cash flow. For example, lines of credit provide flexibility in borrowing and repayment, while term loans offer predictable monthly payments, allowing for better financial planning.
How can securing the right financing help my business gain a competitive edge?
Appropriate financing can enable your business to invest in research and development, upgrade equipment, expand into new markets, or acquire competitors, strengthening your competitive position and accelerating growth.
How does financing contribute to the long-term sustainability of a business?
Strategic financing can buffer against economic downturns, seasonal fluctuations, or unexpected challenges, ensuring your business has the resources to weather difficult periods and maintain operations during lean times.
What role does financing play in attracting and retaining top talent?
Access to sufficient capital allows businesses to offer competitive salaries, benefits, and growth opportunities, making it easier to attract and retain skilled employees who can contribute to the company's success and innovation.
How do international financing options differ from domestic sources?
International financing can offer unique opportunities, such as export financing, foreign direct investment, and access to global markets. However, it also involves additional complexities, such as currency exchange risks, international regulations, and cross-border tax implications.
What are the potential drawbacks of relying too heavily on external financing?
Overreliance on external financing can lead to high debt burdens, reduced operational flexibility, and potential loss of control if equity financing is used extensively. Maintaining a balanced approach to financing is crucial to align with your business's risk tolerance and long-term objectives.
How can businesses improve their chances of securing financing?
Businesses can enhance their financing prospects by maintaining accurate financial records and up to date financial statements, developing a solid business plan, building strong credit scores, cultivating relationships with potential lenders or investors, and demonstrating a clear path to profitability and growth.
What role does financial technology (fintech) play in modern business financing?
Fintech has revolutionized business financing by introducing innovative lending platforms, AI-driven credit assessment, blockchain-based solutions, and peer-to-peer lending networks. These advancements have made financing more accessible, efficient, and tailored to specific business needs.
How should seasonal businesses approach financing differently?
Seasonal businesses should focus on flexible financing options, such as lines of credit or revenue-based financing. They may also benefit from strategies like invoice factoring during peak seasons and careful cash flow management during off-seasons to ensure year-round stability.
What factors should I consider when choosing between debt and equity financing?
When deciding between debt and equity financing, consider factors such as your business's current financial health, growth projections, risk tolerance, and desire for control. Debt financing allows you to maintain ownership but requires regular repayments, while equity financing provides capital without immediate repayment obligations but dilutes ownership.
How do different stages of business growth align with various financing options?
Different financing options are often more suitable for specific business stages. For example, startups may rely on angel investors ( generally wealthy individuals ) or seed funding, while established businesses might opt for bank loans or venture capital equity interest. As companies mature, they may explore public offerings or mezzanine financing or traditional bank loans for larger capital needs.
What role do credit scores play in accessing different sources of business financing?
Credit scores significantly impact a business's ability to secure financing, particularly from traditional lenders like banks. A higher credit score often leads to more favourable terms, lower interest rates, and increased borrowing capacity. Alternative lenders may place less emphasis on credit scores but charge higher rates to offset perceived risk.
