YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS!
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
Capital funding is the cornerstone of business growth and financial stability.
Unlock the potential of your business with the right capital funding solutions.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Capital Funding For Business & solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
7 Park Avenue Financial: “Canadian Business Financing with the intelligent use of experience”
Business financing in Canada plays a crucial role in the region's economic development - your company’s finances are, of course, serious business; this isn’t a television reality show obstacle course.
Let’s examine external real-world possibilities around funding your business (externally and internally), focusing on removing some of those obstacles.
Capital markets provide a significant source of business capital, offering opportunities for institutional investors seeking high returns and entrepreneurs seeking funding. Let’s dig in.
Essential Capital Funding Tips for Business Owners
Securing the right type ( and amount ! ) of capital funding is essential for any business aiming to achieve growth and profits. Whether you are a startup seeking initial funding or an established company looking to expand, understanding the various options and strategies for business financing solutions can significantly impact your business’s success.
Let the 7 Park Avenue Financial team show you available solutions and key insights into funding your business.
Reasons for Seeking External Financing
There are numerous reasons business owners/managers seek external financing methods. The good reasons include, of course, growth; in some cases, liquidity challenges surround day-to-day operations, let alone growth.
Aligning Business Goals with Capital Funding
The planets align more perfectly when you’re looking for proper capital while running your business ‘properly’ at the same time. Here, we’re focusing on issues such as profit, asset turnover, and optimal use of assets.
Methods of Financing Your Firm
Financing your firm via external methods revolves around three simple choices:
Taking on New Debt
Monetizing Existing Assets
Monetizing the assets you already have (both current assets and long-term assets can be monetized)
Exploring Equity Solutions
Searching for an equity solution (Certainly possible but much more limiting as issues such as owner dilution and costs and probabilities around equity capital need to be addressed)
The Impact of Early Financing Stages
The early stages of a firm’s initial financing capability will often determine its future course of growth and success. Here, cash flow becomes a daily challenge (or hourly!).
Top Sources for Business Capital
Where do top experts and studies tell us entrepreneurs go for capital? In order of search priority, the leading contenders for business capital solutions are:
Banks
Corporate Credit Cards
Commercial Finance Companies
Equipment Lessors
Government Business Loans
Asset-Based Lenders
Providing receivables, inventory, and fixed asset financing.
VC / Private Equity Groups
Government grants are also a valuable source of financing, with options like the Business Benefits Finder provided by the Government of Canada.
Challenges Business Owners Face
At times, many business owners are ‘tapped out’ personally, and the day-to-day struggle of managing assets and delaying payables becomes JOB #1 almost daily.
Understanding Your Risk Profile
Understanding your risk profile is the key to accessing the right type of funding for your business.
Suffice it to say that much of the entrepreneurs’ business time has been wasted applying for financing that was never meant to be. As our survey pointed out, businesses head in droves to the bank, only to find their ‘risk profile’ is significantly out of line with Canadian chartered bank requirements.
While eye-to-eye contact was almost necessary in the past, today’s bank scoring models and commercial banking structures don’t always lend themselves to face-to-face meetings to make your case.
Syndicated Bank Deals
Many business owners might be surprised that large bank deals are, in fact, ‘syndicated,’ with bank loans being sold by your bank to others in the secondary market.
Fundamentals of the Business Financing Application Process
Any business financing application process fundamentals include a business plan (not always required, but certainly helping), historical and current financials, a cash flow/profit forecast (usually the most critical item!), and information on the owners. The results from all that drive that ‘risk profile’ we’ve been talking about.
VC / Private Equity Groups
Venture capitalists and private equity groups play a crucial role in the capital markets, serving the needs of institutional investors seeking high returns, entrepreneurs seeking funding, and investment bankers looking for companies to sell. Understanding the dynamics of these groups can help businesses better position themselves to attract the correct type of investment.
Key Takeaways
-
Types of Capital Funding: Understanding the various forms of capital funding—debt, equity, and asset monetization—provides a solid foundation for making informed financial decisions.
-
Risk Profile Assessment: Knowing your business’s risk profile helps you identify the most suitable funding sources and avoid wasting time on unsuitable applications.
-
Business Growth Strategies: Recognizing how different funding options can fuel growth ensures strategic alignment with business objectives, especially for new businesses looking to develop and test products at a lower cost.
-
Government Loans and Grants: Awareness of government-backed financial assistance can open up valuable funding opportunities, contributing to job creation and regional revitalization.
-
Commercial Finance Options: Exploring various commercial finance companies and their offerings can provide flexible and tailored financing solutions.
Conclusion
If you’re looking to seriously explore external financing in areas such as bank facilities or numerous other alternative financing vehicles (some of which you may never have even heard of!), call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with removing obstacles!
FAQ
What is capital funding for business?
Capital funding for business involves securing financial resources to support business operations, growth, and expansion. This can include debt financing, equity investment, or asset monetization.
How does debt financing work for businesses?
Debt financing involves borrowing money that must be repaid with interest over time. It can come from banks, commercial finance companies, or government loans.
What are the benefits of equity financing?
Equity financing provides capital in exchange for ownership stakes. It doesn’t require repayment, but it can dilute ownership and control.
How can government loans assist businesses?
Government loans under the Canada Small Business Financing Program often offer favourable terms and interest rates, providing accessible funding for businesses to grow and manage operations effectively. BDC also offers government-funded business loans under Crown corporation's mandate.
Why is understanding your risk profile important in capital funding?
Knowing your risk profile helps identify suitable funding sources, ensures that applications are targeted, and increases the chances of securing financing.
How can I determine the best working capital financing option for my business?
Assess your business needs, risk profile, and growth plans. Consult with a financial advisor to explore suitable financing options.
What are alternative financing methods for small businesses?
Alternative financing includes options like invoice factoring, merchant cash advances, and crowdfunding, providing diverse ways to secure capital.
How does asset monetization work?
Asset monetization involves leveraging existing assets, such as receivables or equipment, to secure funding without incurring additional debt.
What role do venture capitalists play in business funding?
Venture capitalists provide equity financing in exchange for ownership stakes, often offering strategic guidance and business expertise.
Can equipment leasing help in capital funding?
Equipment leasing allows businesses to use necessary equipment without significant upfront costs, preserving cash flow for other needs.
How do I prepare for a business financing application for Canadian businesses?
To strengthen your application, prepare a comprehensive business plan, financial statements, cash flow forecasts, and owner information.
What is the difference between secured and unsecured loans for Canadian companies?
Secured loans require collateral, such as property or equipment, while unsecured loans do not, often resulting in higher interest rates.
How can a business financial advisor assist in capital funding?
A financial advisor such as 7 Park Avenue Financial can help identify suitable funding sources, prepare the necessary documentation, and navigate the application process effectively.
