YOUR COMPANY IS LOOKING FOR FUNDING!
CASH FLOW AND DEBT CAPITAL SOLUTIONS FOR CANADIAN BUSINESS
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?
CONTACT US
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
Business Funding Solutions
Corporate finance financing solutions require expertise and knowledge that are sometimes not fully available internally at the business. Let's explore.
The Hidden Cost of Delayed Business Funding Decisions
Canadian businesses often face critical growth opportunities but lack immediate access to capital.
Every day of delay means missed opportunities, lost contracts, and competitors gaining market share. Let the 7 Park Avenue Financial team show you how Modern business funding solutions offer quick, flexible financing options tailored to your business needs.
Two Uncommon Takes on Business Funding:
- Revenue-based financing is replacing traditional loans for seasonal businesses
- Supply chain financing is becoming a hidden gem for manufacturers
DO YOU HAVE THE RIGHT INFORMATION?
Top experts tell us that having the information and assistance required to get business financing in place allows the owner to:
Manage assets
Decide where and how to raise financing.
WHAT TYPE OF FINANCING DOES A BUSINESS NEED?
The type, amount, rate, and structure of the financing you require have many significant implications for your business.
Consider grant funding and tax credits, which can provide financial support and potential savings. Properly financed businesses maximize the value of the company. Proper funding on existing assets allows those assets to deliver a ‘ return on investment. ‘
DEBT CAPITAL OR EQUITY CAPITAL - WHAT SUITS YOUR COMPANY’S NEEDS?
When financing your business, you have two primary options: debt capital and equity capital.
Debt capital involves borrowing money from a lender, such as a bank or financial institution, and repaying it with interest. Equity capital, on the other hand, consists in selling a portion of your business to investors in exchange for funding.
To determine which option is best for your company, consider the following factors:
-
Your Business’s Financial Situation: If you have a solid credit history and a stable cash flow, debt capital may be a good option. However, if you’re struggling to make ends meet, equity capital may be a better choice.
-
Your Business Goals: Debt capital may be a good option if you want to expand your business or invest in new assets. However, equity capital may be a better choice if you’re looking to fund a new project or product.
-
Your Risk Tolerance: Debt capital can be riskier than equity capital, as you’ll need to repay the loan with interest. However, equity capital can be more dangerous in the long run, as you’ll give up your business ownership and control.
Ultimately, the choice between debt capital and equity capital depends on your business’s unique needs and goals. It’s essential to consult with a financial advisor to determine the best option for your company.
DOES YOUR BUSINESS NEED TO ACQUIRE NEW ASSETS?
If your business needs to acquire new assets, such as equipment, property, or technology, government funding programs may be able to help. These programs provide financial assistance to businesses that need to invest in new assets to grow and expand.
Some examples of government of Canada funding programs that can help with asset acquisition include:
-
The Canada Small Business Financing Program offers loans of up to $1 million to small businesses that need to acquire new assets.
-
The Ontario Government’s Jobs and Prosperity Fund provides financial support to businesses that need to invest in new equipment and technology.
-
The Federal Government’s Strategic Innovation Fund offers financial assistance to businesses investing in new technologies and innovations.
To be eligible for these programs, your business will typically need to meet specific criteria, such as being a small business, having a solid business plan, and demonstrating a need for funding.
It’s essential to research and review each program's eligibility criteria to determine which is best for your business.
HOW TO APPLY FOR BUSINESS GRANTS
DEBT CAPITAL OR EQUITY CAPITAL - WHAT SUITS YOUR COMPANY'S NEEDS
Some companies choose the venture capital, family and friends, or angel investors route to achieve equity financing, which is more expensive than taking on debt or monetizing your assets.
Business grants are another funding option, offering startups and small businesses the opportunity to access funds without the need for repayment.
It’s the age-old small business debt vs. equity conundrum that every business faces. Of course, venture capitalists will eventually seek a strong payback and exit strategy.
In the short term, business owners may resort to a credit card to help fund their daily needs, although numerous other non-business credit card solutions are available for cash flow and working capital needs.
UNDERSTANDING GOVERNMENT FUNDING PROGRAMS
DOES YOUR BUSINESS NEED TO ACQUIRE NEW ASSETS
A good example of long-term financing solutions might be EQUIPMENT FINANCING, allowing Canadian business owners and financial managers to gain the benefit of fixed assets in production and operations while managing cash outflows at the same time and conserving working capital needs.
Economic development activities and initiatives also play a crucial role in acquiring assets and providing programs and funding to support business growth and community prosperity.
Suppose you are not monetizing existing assets to raise cash as a business owner or financing manager. In that case, you are likely exploring taking on new debt, thereby altering your overall capital and debt-to-equity structure. That always has operational and borrowing implications.
HOW TO LEVERAGE TAX CREDITS FOR YOUR BUSINESS
IS ASSET-BASED LENDING THE SOLUTION?
External financing, whether traditional or alternative, brings risk once improper or too costly debt financing is utilized.
Canadian government funding can also be a potential source of financial support for businesses. Many firms that require cash flow and have assets consider asset-based lending as a way to monetize assets without taking on extra debt.
The key to corporate financing decisions in the SME sector (or for all firms, really) is ensuring the right type of financing solutions are in place and that debt solutions can be properly repaid and retired.
GOVERNMENT FUNDING PROGRAMS
Government funding programs are a vital resource for Canadian businesses looking to grow and innovate.
These programs are designed to support businesses in various stages of development, from startups to established companies, by providing financial assistance that can be used for a wide range of purposes, including research and development, hiring new employees, and expanding into new markets.
CANADIAN BUSINESS FINANCING SOLUTIONS & SOURCES OF FUNDING VIA 7 PARK AVENUE FINANCIAL
What then are the solutions to business finance challenges?
They might include:
A/R Financing
Inventory Loans
Access to Canadian bank credit Bank loans for your day-to-day business operations and long-term growth plans
Non-bank asset-based lines of credit
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
Securitization
Corporate finance solutions financing for your business will always impact your firm, revolving around key issues such as risk, cash flow, return on investment, lender perception, etc.
In many cases, a business plan will help you successfully finalize your funding needs in the search for finance for your business -
7 Park Avenue Financial business plans meet and exceed the requirements of commercial business lenders and banks.
Keep in mind that interest rates for early-stage companies will always be higher than for established businesses for the amount of money you require from business loans.
An interest rate will also depend on the type of financing you focus on, whether it be bank and traditional or alternative finance/asset-based lending.
Ensure your business plan shows your ability to finance debt and maintain liquidity.
CASE STUDY
A Canadian software development company specializing in AI-driven analytics, encountered a pivotal moment when three major enterprise clients sought to implement their solutions simultaneously. While this represented a significant growth opportunity, the company faced a critical challenge: they needed immediate capital to scale their infrastructure and hire additional developers to meet the increased demand.
The Challenge:
- Required $500,000 in immediate capital
- Traditional bank financing would take 4-6 weeks
- Risk of losing client opportunities to competitors
- Limited collateral for conventional loans
- Needed flexible repayment terms aligned with revenue
Strategic Funding Solution: TechGrow partnered with a modern business funding provider to create a hybrid financing solution:
- $300,000 through revenue-based financing
- $200,000 in equipment financing for server infrastructure
- Approval and funding within 72 hours
- Repayment terms structured around monthly revenue
- No personal assets are required as collateral
Implementation Benefits:
- Speed to Market
- Immediate hiring of 4 senior developers
- Infrastructure deployment within one week
- Client projects initiated ahead of schedule
- Competitive advantage maintained
- Financial Flexibility
- Revenue-based repayments adjusted to cash flow
- Lower payments during slower months
- No fixed monthly obligations
- Preserved working capital for operations
- Operational Impact
- Scaled server capacity by 300%
- Reduced project delivery time by 40%
- Improved client satisfaction scores
- Enhanced service reliability
KEY TAKEAWAYS
- Credit fundamentals drive funding decisions, focusing on business history and revenue stability.
- Cash flow patterns determine appropriate funding structures and repayment terms.
- Security requirements vary significantly across different funding solutions.
- Application documentation packages make or break approval success
- Timing considerations impact both approval odds and funding costs
CONCLUSION
Funding a business involves the right amount of risk, and one well-known expert defined financing risk as delivering both ' danger' and ' reward.'
If you want to deliver on ' reward,’ call 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor who can help you solve funding challenges.
FAQ
How does funding a company properly accelerate growth opportunities?
-
Enables rapid expansion initiatives
-
Supports inventory scaling
-
Facilitates equipment purchases
-
Provides working capital flexibility
-
Allows for strategic hiring
What advantages do alternative funding solutions offer?
-
Faster approval processes
-
More flexible qualification criteria
-
Customizable repayment terms
-
Less emphasis on personal credit
-
Industry-specific solutions
How can strategic funding improve cash flow?
-
Smooths seasonal fluctuations
-
Bridges payment gaps
-
Supports accounts receivable
-
Enables bulk purchasing
-
Provides emergency reserves
What makes modern funding solutions different?
-
Technology-driven processes
-
Data-based decisions
-
Reduced paperwork requirements
-
Integrated financial services
-
Real-time monitoring capabilities
How does proper funding impact competitive advantage?
-
Enables quick market response
-
Supports innovation initiatives
-
Allows for bulk discounts
-
Improves supplier relationships
-
Facilitates market expansion
What criteria do lenders evaluate most closely?
-
Revenue history
-
Bank statement patterns
-
Credit profile
-
Industry type
-
Time in business
What documentation should businesses prepare?
-
Financial statements
-
Tax returns
-
Bank statements
-
Business licenses
-
Ownership verification
What are common funding application mistakes?
-
Incomplete documentation
-
Unrealistic projections
-
Poor timing
-
Lack of planning
-
Insufficient research
How can businesses improve approval chances?
-
Organize financials
-
Build business credit
-
Maintain clean banking
-
Document cash flow
-
Prepare business plan
What role does timing play in business finance success?
-
Application timing affects approval odds
-
Seasonal considerations impact terms
-
Market conditions influence rates
-
Preparation reduces delays
-
Early application provides leverage
How do different funding types serve various needs?
-
Term loans suit long-term investments
-
Lines of credit support ongoing operations
-
Equipment financing preserves cash flow
-
Invoice factoring accelerates receivables
-
Bridge loans enable opportunities
What security options exist for financing a business ?
-
Personal guarantees
-
Asset collateral
-
Accounts receivable
-
Purchase orders
-
Real estate
