YOUR COMPANY IS LOOKING FOR FINANCING ALTERNATIVES!
SOURCES OF FUNDS FOR 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?
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
Suite 301
Oakville, Ontario
L6J 7J8
Creative small business financing sources are often the ' secret sauce' when it comes to the Canadian business owner and manager beating the competition when it comes down to the ability to grow a business and prosper... with profits.
It's no secret to our clients when top experts still maintain we are still somewhat ' reeling ' from the 2008 global meltdown - and let us not even talk about the COVID 19 Pandemic of 2020. That's when even the big guys, banks included, couldn’t write some of the cheques they wanted, much less the little guy in the SME (Small Commercial Enterprise) sectors of Canadian business.
THE EFFECT OF INACCESSIBLE FINANCING
Being ' cut off' from accessing capital has a major effect on any business, with the worst case of course is having to shut the doors. Traditional bank loans seem out of reach for the majority of businesses we talk to here at 7 Park Avenue Financial.
WHAT IS AN ' SME '
Is there any good news in all of this? If there is one bright spot it’s the ability of Canadian business owners in SME (sales under 25 Million dollars? is a good definition) to adapt to and respond to creative financing mechanisms. Some of these are versions of traditional financing, others are simply brand new.
The challenge about using a new financing option is to ensure it’s not overly complex, and that it will provide the right financing that matches your needs. It should be no secret to the Canadian business person that creative and alternative financing structures often come at a higher cost - that cost should be warranted when it comes to matching benefits.
WHAT IS THE MOST COMMON SOURCE OF SMALL BUSINESS FINANCING
One example is the tremendous growth of RECEIVABLE FINANCING in Canada in the last number of years. While it has a higher carrying cost than commercial bank lines of credit it allows any small company to take on larger sales opportunities, mend relationships with suppliers, and forget the daily strain of managing cash flow. ' Factoring ' is one of the most popular methods of a source of funding for many businesses.
The key to using that type of financing is to understand that it alleviates the pressure of having to get a commercial bank line of credit and that your business must be stable or growing - as any type of creative financing solutions is less likely to succeed if you don’t have growing or stable sales revenues. Bottom line ' death spirals' not welcome!
INVESTIGATE OTHER ASSET FINANCING STRATEGIES SUCH AS LEASE FINANCING
Receivable finance is a creative asset monetization strategy. When you are not monetizing assets you must consider debt options. Using asset financing strategies via equipment financing/leasing allows almost any firm to acquire the assets they need to move their business forward.
While general cash flow, asset quality are important, almost any asset can be financed via the lease company's ability to structure a deal that meets your asset acquisition needs. Lease finance is a great way to allow you to meet changing technology needs also, as a properly structured lease allows you to match cash flows with future benefits.
CHASING THE WRONG FUNDING OPTIONS FOR YOUR FINANCE NEEDS?
Many business owners in the SME sector spend a lot of time chasing equity via peer lending, family and friends, angel investors, and the infamous ' venture capitalists' we are pretty sure that only about 1% of them if at all acquire the capital they need at a cost that often means giving up large ownership percentage. Giving up ownership equity in your early years is one of the most costly mistakes that any business owner can make and looking for venture capital for funding is out of reach for 99.9% of Canadian businesses.
It's important for certain types of financing to ensure you have a good business plan in place, as well as cash flow projections. 7 Park Avenue Financial business plans meet and exceed the requirements of banks and commercial lenders.
THE COST OF ALTERNATIVE FINANCING
By the way, the cost of many of the small business creative financing solutions in business funding we talk about with clients is often (not always) between 1-2 % per month. Expensive? Not really if you consider the high cost of giving up equity ownership in the early years when your company valuation is small. You may want to check any finance textbook on that one... or better still speak to a business owner who cashed out (for cash) way too early. At an early stage personal credit history is often tied to the ability to get business finance.
TYPES OF BUSINESS FINANCING
WHAT ARE THE SOURCES OF FINANCING FOR SMALL BUSINESS? THEY INCLUDE :
A/R Financing
Inventory Loans
Access to Canadian bank credit/business loan/term loans
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/Business credit cards
Securitization
CONCLUSION
When you want the inside scoop on what method of business financing creativity works for your company seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success, allowing you to take your business to the next level of growth and profit with alternative financing and non-traditional unconventional financing sources.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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