YOUR COMPANY IS LOOKING FOR BUSINESS FINANCING OPTIONS!
SOLUTIONS TO COMMON PROBLEMS FOR FINANCING SMALL 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
Oakville, Ontario
L6J 7J8
BUSINESS FUNDING empowers businesses to transform their assets into valuable capital, fueling growth and operational stability.
Unlock the hidden value of your business assets and secure the funding you need today!
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer BUSINESS FUNDING & solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
"Canadian Business Financing with the intelligent use of experience"
INTRODUCTION - BUSINESS LOANS AND BUSINESS FINANCING
Business finance options in Canada often depend on the overall health of your company. Many questions can be answered by simply looking at some elementary and fundamental numbers and relationships in your financials. The doctor is in. Let's dig in!
Securing the correct type and amount of funding is critical for businesses aiming to finance and grow their operations. Solutions, such as Asset-Based Lending (ABL), are innovative financing options that leverage a company's assets to provide essential capital.
This funding method allows businesses to unlock the value of their sales and assets, such as inventory, accounts receivable, and equipment, to secure loans. Understanding the intricacies of BUSINESS FUNDING can help businesses overcome financial hurdles and achieve growth objectives.
HOW SOLVENT IS YOUR COMPANY
Key to any business financing or survival for that matter is the whole issue of solvency. Here owners and managers want to assess the level of assets and debt. Lenders will always want to focus on owner equity, with a more refined focus of this number being ' tangible net worth when looking at financing small businesses.
ALTERNATIVE FINANCING?
Finance options will also depend on your ability and need to meet current financing commitments. Here, we will point out that even a company that has had its loan called can still get high levels of alternative financing based solely on the business's assets. This type of financing typically is called ' ASSET BASED LENDING ' and can come in many forms, both term debt and operating debt. It provides a path back to what many term ' traditional financing options '.
Regarding operating financing, the asset lending we've mentioned will almost always revolve around receivables and inventory. The size, quality, and management of these two assets will dictate what type of financing you need and, as importantly, are eligible for.
KNOW YOUR DSO !
You can adequately measure, and help manage these two assets in some basic simple ways. In the case of accounts receivable, it's simply calculating your ' day’s sales outstanding ' in receivables turnover. Since the sale of inventory translates into a sale and then a receivable, the management and tracking of A/R and inventory are great ways to track business health.
P.S. The big companies do it all the time, all day, every day, and more often than not, senior management is compensated for the management and performance of these two assets.
In the past, and we suppose we're doing it, we've suggested that business owners track a simple chart that shows sales growth and then measure that same growth against the growth of A/R and inventories.
CANADIAN BUSINESS FINANCING SOLUTIONS YOU CAN ACCESS TODAY
When looking at finance options for business loans via a bank or finance company it's important to assess whether you are looking for small business funding to operate, start, or expand. Startup business loans are always challenging - at 7 Park Avenue Financial, we've got some great solutions, including Government Guaranteed Business Loans. In addition to traditional finance solutions offered by Canadian chartered banks, numerous other solutions are available.
They include:
A/R Financing
Inventory Loans
Access to Canadian bank credit / Working capital
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
The credit history/ credit score of small businesses and their owners is often important in achieving approvals and reasonable interest rates. Consider a proper business plan to achieve optimal working capital and bank loan or commercial lender success. 7 Park Avenue Financial business plans meet and exceed bank loan and alternative lender requirements. Business plans are also a great long-term planning tool that can be revisited.
KEY TAKEAWAYS
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Business Funding Process: Understanding the detailed steps involved helps grasp the overall framework of asset-based lending.
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Benefits of Business Funding: Knowing the advantages highlights why this financing method benefits businesses.
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Eligibility Criteria: Recognizing the requirements ensures businesses can determine if they qualify for asset-based lending.
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Types of Assets: Identifying which assets can be used as collateral is crucial for leveraging this funding method.
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Rates and Terms: Awareness of interest rates and terms provides insight into the financial commitment.
CONCLUSION
Friends and family, a business credit card, the angel investor, venture capital .. the right way to go in achieving debt and equity ..? Most probably not .. Achieving a small business loan or funding for your company needs expert assistance and will help identify the right type of financing you require -
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can help you assess business health and finance options that suit your operating or growth requirements, focusing on supporting business growth.
FAQ
What is ABL business financing?
Business financing, or Asset-Based Lending (ABL), is a financing method that uses a company's assets, such as inventory, accounts receivable, and equipment, as collateral to secure loans.
How does BUSINESS FUNDING benefit my business?
BUSINESS FUNDING provides quick access to capital, improves cash flow, and allows for greater financial flexibility. It's especially beneficial for businesses with substantial assets but limited credit history.
What types of assets can be used for BUSINESS FUNDING?
Common assets used for business financing include accounts receivable, inventory, machinery, equipment, and real estate. Their value is evaluated to determine loan eligibility.
How is the value of assets determined for BUSINESS FUNDING?
The lender typically assesses the value of assets through appraisals, audits, and evaluations to ensure they provide sufficient collateral for the loan.
What are the typical terms and rates for BUSINESS FUNDING?
Terms and rates for BUSINESS FUNDING vary based on the lender, asset value, and business creditworthiness. Generally, interest rates are competitive, and terms can be flexible to meet business needs.
How do I apply for BUSINESS FUNDING?
To apply for business financing, you must provide the lender with detailed information about your business, assets, and financials.
The process involves asset evaluations, credit checks, and loan agreement negotiations. Government grant funding and government loans are also available. Certain grant funding for Canadian companies can help fund new and existing employees. The SR&ED Program offers funding and allows businesses to fund R&D-eligible costs and access valuable tax credits.
These types of government programs and government grants help small businesses access funding that otherwise might not be available from traditional financial institutions. Government programs focus on job creation funding and help support businesses in general economic development activities.
Can start-ups qualify for BUSINESS FUNDING?
Start-ups with valuable assets may qualify for BUSINESS FUNDING. However, eligibility often depends on the type and value of assets and the start-up's overall business plan and potential.
What is the difference between BUSINESS FUNDING and traditional loans?
BUSINESS FUNDING uses assets as collateral, making securing loans easier for businesses with limited credit history. Traditional loans rely more heavily on creditworthiness and may not offer the same flexibility.
What are the risks associated with BUSINESS FUNDING?
Risks include the potential loss of assets if the loan is not repaid, higher interest rates compared to traditional loans, and the need for regular asset evaluations and audits.
How can I improve my chances of getting approved for BUSINESS FUNDING?
To improve your chances, ensure your financial records are accurate, maintain valuable assets, and work on building a solid business credit profile. Engaging with a financial advisor can also help streamline the process.
How does BUSINESS FUNDING impact my business's cash flow?
BUSINESS FUNDING can significantly improve cash flow by providing immediate access to capital. It allows you to reinvest in your business, manage expenses, and seize growth opportunities without waiting for revenue cycles. Specific financing solutions, such as purchase order financing and export credit insurance, allow companies to enter domestic and international markets or expand into regional economic growth.
What industries benefit the most from BUSINESS FUNDING?
Industries with high-value assets, such as manufacturing, retail, and logistics, benefit significantly from BUSINESS FUNDING. These businesses often have substantial inventories and receivables that can be leveraged for loans.
How do lenders assess risk in BUSINESS FUNDING?
Lenders assess risk by evaluating the value and liquidity of the assets used as collateral, the business’s financial health, and the industry’s stability. Regular audits and asset appraisals are sometimes conducted to manage risk.
