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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
"Stop watching sales opportunities vanish because of cash constraints."
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Sales growth financing strategies and working capital solutions – Save time and focus on profits and business opportunities
7 Park Avenue Financial: “Canadian Business Financing with the intelligent use of experience”
Financing Sales Growth Strategies: A Complete Guide
Introduction
Financing sales growth is ‘time-sensitive,’ if only because most business owners/managers want to do it now, not at some point down the road.
What type of business loans and asset monetizing strategies work best when your focus is ‘growth - faster, the better!’ Right or wrong, very slow or nonexistent growth often causes companies to stagnate. The fix?
Managing account receivables is crucial to avoid cash flow issues during rapid growth, as failing to collect receivables fast enough can necessitate halting production. Let’s dig in.
BREAKING FREE FROM THE SALES GROWTH CEILING!
Do financial constraints and limited financial resources constantly hold back your sales ambitions? Many Canadian businesses watch promising opportunities slip away due to insufficient capital, creating a frustrating cycle of missed potential.
Let 7 Park Avenue Financial show you how funding sales growth can transform these limitations into launching pads for success in new clients strong relationships, and long term success
Did You Know?
67% of Canadian SMEs seek external financing for growth in new markets and existing customer base
Sales-focused financing can increase growth rates by 30%
82% of businesses using revenue-based financing report improved cash flow
Alternative financing methods grew 48% in 2023
The Three Core Financing Options
The ability to finance revenue growth is, in truth, a two-edged sword. That’s also where business financing challenges come in. And the options you have come down to three choices:
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New owner equity - usually challenging, costly, and undesirable
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Taking on Debt - has to be the right debt
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Monetizing your assets - a preferred strategy if done properly
To diversify and reduce risk, it is crucial to explore various financing sources, including bank loans, venture capital, and government support.
SME Commercial Finance Realities
Of course, those same tools are also available to businesses seeking SME COMMERCIAL FINANCE options. These smaller firms toil daily in the real world to grow sales, stay in business, and pay bills. More often than not, they are also looking for outside financing to manage those three challenges.
Understanding Your Banking Status and Account Receivables
We meet clients searching for sales financing strategies, and they fall into two categories: ‘bankable’… and ‘unbankable.’
Which one is your firm? When exploring financing options, it is essential to assess your risk tolerance to determine the most suitable sources. If your firm is bankable, you must demonstrate profits, acceptable debt ratios, outside collateral, and ‘reasonable’ high growth.
The Challenge for Canadian SMEs
Thousands of firms in the small/medium sector of Canada's economy are 'unbankable' to the extent that they have no or limited bank financing.
Many owners/managers feel that big corporations seem to be preferred. Top experts in one study said that 1/3 of all SME businesses don't have the financing they need, with 65% of owners/managers saying financing new sales is 'difficult.'
Alternative Lending Solutions
The solution? More often than not, it’s ‘alternative lending’ - a broad category of the new Canadian business financing landscape that covers many niche players offering unique forms of financing.
Securing financing for a company's growth projects is essential for successful expansions and new initiatives.
Available Financing Options
Those financing solutions for financial performance ? They include:
Knowing how these solutions work and identifying which is for your firm is challenging when it comes to business comprehensive financial planning for business growth
Understanding the target market is crucial for demonstrating growth potential to investors and lenders. It helps create a compelling business case that outlines the market's size and demand.
Key Takeaways
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Revenue-based financing offers flexibility through payments based on monthly sales
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Working capital solutions provide immediate access to operational funds
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Purchase order financing unlocks capital trapped in confirmed orders
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Strategic debt leveraging maximizes growth potential while maintaining equity
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Cash flow forecasting enables proactive financing decisions
Conclusion:
Not familiar with all your business funding options? Call 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor who can assist you with 'engineering' the right solution to finance your firm's growth for both short-term and long-term goals.
FAQ
What types of collateral are typically required?
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Purchase orders
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Accounts receivable
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Business assets
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Personal guarantees
Do I need perfect credit for sales growth financing?
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Credit requirements vary by lender
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Alternative financing options exist for varied credit profiles
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Revenue-based financing focuses on sales performance
How does sales growth financing improve cash flow management?
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Releases working capital for daily operations
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Reduces reliance on existing cash reserves
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Enables better supplier payment terms and better customer relationships for small business service offerings
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Creates predictable payment schedules
What impact can proper financing have on sales team performance?
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Enables hiring and training investments
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Provides resources for sales tools and technology
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Supports commission structures
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Allows for market expansion initiatives
How do seasonal business cycles affect financing options?
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Flexible payment terms align with revenue patterns
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Specialized products for peak season preparation
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Buffer periods during slow months
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Revenue-based options adjust automatically
What makes sales growth financing different from traditional loans?
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Focus on revenue potential rather than historical performance
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Flexible repayment structures
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Emphasis on scalability
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Integration with sales metrics
What is revenue-based lending?
Revenue-Based Lending: Revenue-based lending (RBL) is a flexible financing solution where repayments are tied directly to your monthly revenue. Instead of fixed monthly payments, you pay a percentage of your revenue, typically between 3-10%. Here's how it works:
Key Features:
- No fixed monthly payments
- Payments scale with your business performance
- Usually no collateral required
- Qualification based primarily on revenue strength
- Terms typically range from 12-48 months
What are growth capital loans?
Growth Capital Loans: Growth capital loans are structured specifically to fund business expansion initiatives. They are designed for established companies with proven revenue who need additional capital to scale operations.
Key Characteristics:
- Larger loan amounts ($250,000+)
- Longer repayment terms (2-5 years)
- Often lower interest rates than RBL
- May require collateral
- Usually requires 2+ years of operating history
- Focus on companies with proven profitability
Best Uses:
- Market expansion
- Equipment purchases
- Hiring key personnel
- Acquisition opportunities
- Product development
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