Business Loan - Financing A Company - Putting Your Best Foot Forward

YOUR COMPANY IS LOOKING FOR A BUSINESS LOAN!

FINANCING A COMPANY IN CANADA

SMALL BUSINESS LOANS - CANADA

You've arrived at the right address! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the biggest issues facing small 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

A business loan when you're financing a company... your company can be a heck of a challenge in Canada. Let's focus in on some proven 'secrets' to Canadian business financing success, as well as exploring a business loan for startups.

UNDERSTAND THE TYPE OF FINANCING YOUR BUSINESS REQUIRES FOR A COMMERCIAL FINANCE COMPANY LOAN

Loans for small business are for different purposes, and that’s actually our first point, the ability to focus in on the differences in the type of financing you believe you need. That comes down to the differences between equity and debt.

We often talk to clients who have spent a lot of time putting together a package or business plan for business loans that feels like it is focused on equity or some sort of venture capital, when in fact it's a debt financing or 'loan' that they are really attempting to close.

THE FOCUS SHOULD BE ON CASH FLOW AND COLLATERAL

Bankers and other commercial debt lenders in Canada focus on collateral and cash flow when it comes to a small business company loan. The private equity and angel type investors focus in on things like product sales, customer acquisition, and exit strategies... What a difference! Ultimately business loan rates for commercial loans in Canada will always focus on these 2 issues, as well as of course perception of management.

UNDERSTANDING THOSE FINANCIALS

So when it comes to small business financing focus on your plan of attack, when it comes to a business loan, emphasize collateral (internal and external), some basic 'ratio' analysis, and historical financial statements or projections.

When we look at plans and packages that customers have shared with us they seem to focus on product and market... what they really should be focusing on is management, profitability, and repayment of loans via cash flow generation. Management needs to understand cash flow!

7 PARK AVENUE FINANCIAL TIPS ON APPROACHING ' THE BANKER ' / Business Lender

When approaching Canadian banks for small business financing, either by you or with an advisor focus not on the bank, but the banker. Our experience is that good business bankers are in many ways a part of your team in the long run. Remember also that unlike 20 years ago, your banker probably does not have the authority to approve a loan, so you need their support and the ability to piggyback on their credibility with the underwriters.

Are there a couple of tried and tested rules for business loan submissions?

4 KEY STRATEGIES FOR LOAN APPROVAL

Here's a couple:

It's actually impossible to give a bank or another commercial lender too much info

Consider Canadian financing strategies when you don't need the capital or a loan, not when you’re in dire straits

Be prepared to answer all the gaps in your package - loan approvals flow towards zero risk

Loan packages should identify the number of funds you need, the term, use of funds, and repayment ability. 99% of the time your repayment will come from internally generated cash flow and profits.

THE CANADIAN SMALL BUSINESS LOAN

Entrepreneurs should not overlook the benefits of small business lending via the Government Of Canada Small Business Loan program, ( the ' csbf ' loan )as well as ensuring they understand how a BDC loan could help their business. At 7 Park Avenue Financial, we're always recommending and executing on these loan programs for our clients. Government business loans have interest rates and flexibility that can't be matched for companies needed SME COMMERCIAL FINANCE.

LOOK INTERNALLY AT YOUR BUSINESS!

Canadian business owners and financial managers deserve business credit. The challenge is ensuring you know how it looks on the 'inside' when it comes to dealing with your bank or any other commercial lender for cash or working capital or asset acquisition needs. Knowing your company's strengths will assist you in getting a business loan interest rate that is commensurate with your credit quality .

CONCLUSION - Small Business Loans & Financing Your Business

Financing a small business in today's environment, pandemics included, requires expertise.

Extra assistance needed? Speak to a trusted, credible and experienced Canadian business financing advisor for a business loan when financing a company in Canada. A little expertise in finance goes a long way.