YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE OPTIONS!
SMALL BUSINESS FUNDING ALTERNATIVES / BUSINESS LENDING
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 - 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
Navigating the myriad commercial finance options, including debt financing, is crucial for businesses seeking to secure the capital necessary for growth and sustainability.
Unlock the door to business growth with suitable commercial finance options.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer COMMERCIAL FINANCE OPTIONS & 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
COMMERCIAL BUSINESS FINANCING IN CANADA
When appropriately executed, options for commercial business financing often give the Canadian business owner and financial manager the ability to 'wreak havoc' with the competition, a feeling all businesses probably want to relish. Knowing the commercial financing choices you have available to wreak that havoc is key. Let's dig in.
Find the Right Commercial Finance Options for Your Needs
Commercial finance options play a key role in letting businesses access the capital they need to grow and run day-to-day operations. Whether it's traditional bank loans or alternative financing solutions, understanding the array of commercial finance options available can help business owners make informed decisions that will meet their financial goals and operational needs.
HOW DOES YOUR COMPETITION FINANCE THEMSELVES?
Knowing some solid information on how your competition operates can often lead you to financing choices related to your firm's size, growth speed, maximum profits, and understanding the overall credit profile of clients in your sector.
EQUITY FINANCING OPTIONS FOR YOUR BUSINESS / MERGER AND ACQUISITION FINANCING
In some cases, your ability to achieve growth from a merger or acquisition depends on financing solutions that can make that happen.
In other cases, your firm might benefit from commercial real estate financing. Commercial mortgages are a crucial type of commercial real estate financing, offering various options to suit different business needs. Given the startup financing challenge, 7 Park Avenue Financial clients also ask for loans to start a business.
CHOOSING BETWEEN TRADITIONAL AND ALTERNATIVE BUSINESS FINANCE OPTIONS
Recently, we’ve learned that getting a business loan is not just about getting a deal. Equity financing is another viable option, offering an alternative to traditional business loans. More often than not, the SME sector simply knows that somewhere out there is either a conventional or ‘ alternative ‘ finance option for your business regarding working capital and cash flow needs.
SPOTTING WEAKNESS IN THE FINANCIAL STATEMENTS
Lenders, investors, and even competitors who know a bit about your firm will often spend significant time on how certain relationships of items on your balance sheet and income statement will show your strengths or weaknesses.
Conducting due diligence is crucial before making any commercial finance decisions, as it involves thorough research and analysis to compare different finance options, understand the business's needs, and seek expert advice to ensure the chosen finance aligns with the business's goals and circumstances. Firms with a large amount of debt quickly run into two tricky situations:
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They are vulnerable to a downward spiral of sales and profits
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They find that access to traditional bank type financing all but disappears
ACCESS TO FUNDING DELIVERS KEY BENEFITS
If you have your financial house in order, your financial strength and access to financing provide a solid bridge to sales revenue growth, cash flow, and profits. Business owners also focus on the interest rate, which will vary based on the type of financing you are looking for.
HERE ARE 2 KEY ASPECTS TO ADDRESSING WORKING CAPITAL NEEDS
Top experts tell us that a recommended way to address options of financing revolves around two key areas:
1. The amount of funds you need and how you will use them
2. Knowing (and buying into) what stage of life your business is in - as that ' stage ' dramatically affects the type, cost and structure of financing you need.
IMPROVING CASH FLOW MANAGEMENT
WHAT STAGE IS YOUR BUSINESS IN?
As we have offered in the past, you are in one of four different ' stages' of business existence—simply speaking: startup, early growth, middle-market SME, and large-cap mature. Those stages will reflect long-term capital needs as well as immediate access to working capital.
CANADIAN BUSINESS FINANCING SOLUTIONS
While the following options are all available to Canadian business:
Going public
Mezzanine financing
Govt SBL loans / federal business loan - A government loan for business is a guaranteed loan
Tax Credit Monetization (SR&ED, etc.)
Bank lines of credit / Business Credit Union services
Bridge loan / short term financing
Sale Leasebacks
Non-Bank asset-based line of credit
Equipment financing
A/R financing
Invoice finance, including invoice discounting, is a great way for businesses to access cash tied up in unpaid invoices.
Inventory finance
PO/Supply chain finance
Term loan / Working Capital Short Term loans/ Merchant Cash Advances
Repayment terms and interest rates will vary depending on the type of funding best suited to your current needs. In certain types of funding, the personal credit history and credit score of the principals will affect getting approved or business loan interest rates. In the short term, small business owners should focus on access to capital versus the cost of capital when a solution makes sense for continued growth of their products or services.
So, how to get a loan for a business? When applying for a business loan for certain types of funding a business plan will help you get approval, and in some types of funding [business plans ](http:// https://www.7parkavenuefinancial.com/business_plans.html)are a requirement when it comes to commercial financing via banks or business lenders and achieving the best commercial loan rates in Canada.
KEY TAKEAWAYS
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Types of Commercial Finance: Understanding the various types of commercial finance, such as bank loans, lines of credit, invoice factoring, and equipment financing, provides a solid foundation for identifying suitable options.
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Benefits of Commercial Finance Options: Recognizing the advantages of different financing options, including increased cash flow, flexibility, and potential tax benefits, helps businesses weigh their choices effectively.
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How to Choose the Right Finance Option: Factors such as the loan amount, repayment terms, interest rates, and the business’s financial health guide the selection of the most appropriate financing method.
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Interest Rates for Commercial Finance: Knowing how interest rates impact the overall cost of borrowing aids in comparing different finance options and making cost-effective decisions.
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Differences Between Secured and Unsecured Loans: Understanding the distinction between secured and unsecured loans, including collateral requirements and risk levels, is critical for making informed financing decisions.
CONCLUSION
It’s important to note that for small businesses, some types of business finance and business loans are either unavailable or even inappropriate for your business's size, nature, and stage. The right business finance options will always allow you to position your company ahead of the competition strategically, in effect, wreaking your own style of ' havoc' with the competition.
Call 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor who can assist you in creating positive havoc related to finance choices in the world of small business financing!
FAQ
What are commercial finance options?
Commercial finance options refer to various funding sources available to businesses, including loans, lines of credit, and alternative financing methods.
How can commercial finance options benefit my business?
Commercial finance options can enhance cash flow, provide flexibility in funding, and offer opportunities for business expansion and operational improvements.
What types of commercial finance are available?
Businesses can access several types of commercial finance, such as traditional bank loans, equipment financing, invoice factoring, and non bank asset based lines of credit.
How do I choose the right commercial finance option?
Selecting the right finance option involves evaluating factors like loan amount, repayment terms, interest rates, and your business’s financial health.
What is the difference between secured and unsecured loans?
Secured loans require collateral, such as property or equipment, while unsecured loans do not, generally resulting in higher interest rates for unsecured options.
What is invoice factoring?
Invoice factoring is a financing method where businesses sell their outstanding invoices to a factoring company at a discount to receive immediate cash.
How does equipment financing work?
Equipment financing allows businesses to borrow funds specifically for purchasing equipment, using the equipment itself as collateral.
What role does credit score play in obtaining commercial finance?
A good credit score can significantly impact your ability to secure commercial finance, often resulting in better terms and lower interest rates.
Can startups qualify for commercial finance options?
Yes, startups can qualify for various commercial finance options, though they may face stricter requirements and higher interest rates compared to established businesses.
What are alternative financing options for businesses?
Alternative financing options include crowdfunding, asset-based lending, factoring/receivable financing, peer-to-peer lending, and merchant cash advances, providing flexibility beyond traditional bank loans.
What is the application process for commercial loans?
The application process typically involves submitting financial statements, business plans, and credit information to the lender for review.
How can I improve my chances of getting approved for a commercial loan?
Maintaining a strong credit score, preparing detailed financial documents, and demonstrating a solid business plan can improve approval chances.
What are government-backed commercial loans?
Government-backed commercial loans, such as SBL loans in Canada under the Canada Small Business Financing Program, offer favourable terms and lower interest rates with partial government guarantees.
