YOU ARE LOOKING FOR CANADIAN BUSINESS FINANCING OPTIONS!
FUNDING SMALL AND MEDIUMS SIZED BUSINESSES IN CANADA
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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
Canadian business financing, fortunately or unfortunately, comes usually with a question: What type of cash flow or debt finance solutions are right for my firm - and more to the point, do I qualify for approval.
Oh, and one more question - What do the various traditional and alternative options cost in small business loans and how do they work? And you don't have to tap into friends and family and angel investors and venture capitalists! The answer? Let's dig in.
SHOULD YOUR BUSINESS TAKE ON DEBT, ACQUIRE EQUITY, OR MONETIZE CURRENT ASSETS FOR CASH FLOW
One of the first areas the business owner needs to assess is the whole issue of borrowing to take on new debt or simply being able to ' cash flow' or ‘monetize’ business assets. The need to acquire long-term fixed assets will always be financed via long-term debt, long term loans, and equipment finance and leasing. Top experts tell us that over 80% of all North American businesses utilize equipment financing to acquire production and technology type assets.
THE EQUIPMENT FINANCING SOLUTION FOR ACQUIRING ASSETS
Is leasing always the ' go-to ' when it comes then to acquiring assets? In some cases, current assets can be refinanced via a sale-leaseback or temporary bridge loan, bringing in working capital. It's a great way of financing the balance sheet around your capital acquisitions - allowing you to not have to use a line of credit which is more needed for day to day funding of business operations.
SHOULD YOU CONSIDER THE GOVERNMENT OF CANADA SMALL BUSINESS FINANCING PROGRAM
Note also that for companies in the Commercial SME Finance needs sector, the Canadian govt small business loan should be considered. It's for new or start-up businesses that require leasehold improvements or new assets to a maximum of 350k. However, that maximum is in the process of being raised - great news for the firm that has under 10 Million dollars of revenue. ( 1 Million is the program maximum borrowing loan amount ) - Banks and some credit unions administer the program for the government but a business bank is usually the best option. The government business loan rate of interset is very attractive, and the program comes with other benefits such as a limited personal guarantee!
MATCHING BUSINESS FUNDING WITH YOUR NEEDS
We advise clients strongly to consider ' matching’ business financing solutions with the need. A clear example? Simple. Don't use day to day business lines of credit or cash on hand to acquire long term assets. That depletes your cash flow and working capital ratios. The strategy might make sense in the moment, but never in the long term.
HERE IS A LIST OF CANADIAN BUSINESS FINANCE OPTIONS VIA CANADIAN FINANCING COMPANIES
Business financing needs often focus on ' liquidity. ' That is the ' monetization' aspect of what we have been talking about. Here you want to focus on financing receivables and inventory. That is accomplished via such strategies for different types of funding that include:
A/R Financing / Factoring
Inventory Loans
Access to Canadian bank credit/Small business bank loans
Non-bank asset-based lines of credit / Asset financing
SR&ED Tax credit financing
Equipment / fixed asset financing
Cash flow loans
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance/Micro Loans /Business Credit Cards - a higher interest rate but quickly accessible solution - good personal credit score required!
Securitization
Small business owners should be prepared with their application for any type of funding - A solid business plan and cash flow projection will often help and many times is required. 7 Park Avenue Financial business plans meet and exceed bank and commercial lender requirements. Make sure financial statements are up to date and available when you apply for a loan or line of credit. Also we recommend you try and separate business and personal finances when looking at business needs of different types.
COMPARING THE COST OF FINANCING FROM TRADITIONAL AND ALTERNATIVE FINANCING OPTIONS & SOURCES
It's critical to assess whether the financing you need is ' traditional' or ' alternative ' in nature. Part of that assessment is the cost, as the non-traditional sources will often cost 2-4 times the cost of today’s low bank financing rates, which might typically be in the 4-5% range. Note though that it's a question of access to capital instead of ' cost of capital' for many business owners who can't qualify for unlimited amounts of business credit, which can often be sourced via alternative finance vehicles. Interest rates will always vary based on the type and amount of funding your firm is looking for.
CONCLUSION
So, do ' we need to talk ' about business loans for your company and financing for small businesses? Consider seeking a trusted, credible and experienced Canadian business financing advisor who can ensure you are on the right path to solid cash flow and debt finance solutions for Canadian business. How do you get a small business loan in Canada for your specific needs? Now you know!
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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