YOU ARE LOOKING FOR A COMMERCIAL BUSINESS FINANCING SOLUTION!
BUSINESS LOANS AND BUSINESS FINANCING IN CANADA
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?
Call Now ! - Direct Line - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
Email - sprokop@7parkavenuefinancial.com
FINANCING WHEN YOUR COMPANY NEEDS IT
Don't go on wondering if you feel that as a business owner or financial manager don’t understand your options around Canadian lending around a commercial business financing loan.
Let's cover some key groundwork around possibilities and the players.
WHAT IS THE RIGHT SOLUTION FOR YOUR BUSINESS NEEDS
In many cases, certain types of business financing in Canada should be viewed as a specialty or a niche. The financial borrowings you entertain for credit approval might be subsets of a certain type of financing.
Some specialty areas that you might consider are of course bank debt, typically viewed as the most senior and least expensive method of borrowing if your firm qualifies.
Term loans and unsecured operating lines of credit are typical bank funding solutions in Canada with excellent business rates benchmarked to Canadian prime rates.
EXPLORING ALTERNATIVE FINANCING FOR BUSINESS LOANS & COMMERCIAL MORTGAGES
Other more esoteric areas, but still viable, popular, and in fact growing in popularity are areas such as purchase order financing, confidential invoice discounting, asset based lending, bridge financing and mezzanine and sub-debt financing.
We would venture to say that in some cases many small business owners may have not even heard of some of these financing possibilities, let alone, of course, understand the benefits of and requirements around successfully completing such financing.
BUSINESS LOAN RATES CANADA
The majority of Canadian business owners think in terms of our Chartered Banks when it comes to revolving lines of credit and term loans for equipment and working capital. However, the reality is that you should be also assessing the merits of an asset-based lender, a very unique and often independent commercial business financing firm that relies almost totally on your asset base of receivables, inventory and equipment and real estate (or combinations thereof) to provide you with a commercial business financing loan structured as a line of credit.
Their expertise and industry and asset knowledge quite often exceed that of many commercial bankers in Canada, if only for the fact this is their sole focus.
Term loans in Canada for either equipment or cash flow tend to be three to five years in term duration. On occasion, a firm needs what is termed a ' bulge ' or a ' bridge loan ' type of lending that satisfied a unique need at a certain point in time for your firm. Typically these loans are then taken out or refinanced under better rates, terms and structures once the initial need around the bridge loan is satisfied - for example, a temporary working capital bulge.
CASH FLOW LENDING
The use of cash-flow-based lending has proven to be as effective as traditional asset-based loans. The process allows companies without significant assets to access to money they need for their business ventures.
For cash-flow-based loans, the loan amount is based on the revenues and cash flows of small and medium-sized companies with a focus on their historical, present and future ability to repay loans without the need to pledge additional collateral. Companies need reliabile financial statements prepared by their accountants to properly reflect business health.
WHAT IS MEZZANINE CAPITAL
Many firms entertain cash flow, or what is known as ' mezzanine ' type financing to satisfy a lending need that can’t be arranged via your senior lender, i.e. the bank for example. Commercial mortgages are also often viewed as a financing vehicle, often in the context of a refinancing of real estate for working capital purposes.
Hundreds of equipment leasing and financing companies in Canada also can solve your lending conundrum - acquiring special assets that have value and revenue generation for your firm.
OTHER THINGS TO CONSIDER
Private equity in Canada has tended to be somewhat under the radar but continues to grow as a commercial lending option. In return for giving up a portion of your ownership, the use of private equity allows you to focus on a variety of options, including, but not limited to: growing our business, refinancing your capital base, going private if you’re a public firm, and in many cases allowing you to work out a distressed or challenging period. Naturally, a majority or minority controlling interest comes with that equity scenario.
The process involved in any significant commercial business financing loan is rarely different - you want to be in a position to highlight management capability, have a reasonable financial target and goal, and be willing to go through the proper level of due diligence relative to the size and type of financing you are entertaining.
CONCLUSION - BUSINESS FINANCING SOLUTIONS
Looking for a complete solution ? Speak to 7 Park Avenue Financial, a credible trusted and experienced Canadian business financing advisor with the credentials to assist you in determining the right commercial business financing loan in the context of Canadian lending for business capital needs.
The skills and expertise in business financing that an advisor brings will help position your firm for business financing success around your growing business needs when the goal is to stay competitive!
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK/ MORE INFORMATION
What is The Canada Small Business Financing Loan - Government backed loans for the growth of your business
Small businesses in Canada that are looking to purchase a business or buy assets for expansion purposes can utilize the Canada Small Business financing program - This is a government-sponsored small business loan used to buy used or new assets, finance leasehold improvement, or purchase commercial real estate. Monthly payment terms are under a term loan structure under attractive interest rates.
Many start up firms and new businesses utilize the program although established firms can also qualify for the same funding. The loan cap amount is 1M dollars for real estate and 350k for equipment and funds for leasehold improvements.
The loan is sponsored by Industry Canada - Other quasi-government loan solutions come from BDC and borrowers should investigate bdc small business loan requirements which come at an attractive interest rate - The government of Canada also offers financing via EDC/Export Development Canada for loans that offer suitable payment terms for economic export financing. In the U.S. this program is offered under ' SBA LOANS '
Do commercial finance companies make loans to businesses?
Commerical financing firms are typically non-bank asset-based or cash flow-based lenders offering funding solutions and loans to business borrowers in Canada.
