YOUR COMPANY IS LOOKING FOR WORKING CAPITAL FINANCE!
SOLUTIONS FOR SMALL BUSINESS LOANS FOR WORKING CAPITAL
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
"Struggling to fund your business? Discover how business capital finance can turn your visions into reality!"
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Financing for business capital & 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
Understanding Business Capital Finance Solutions
Capital finance solutions are the cornerstone for growth and financing day-to-day operations. Understanding the different aspects of funding a business is essential for business owners, whether it is acquiring new assets or technology or funding growth objectives in competitive industries.
Managing cash flow effectively can help avoid temporary cash flow shortages, ensuring your business can take advantage of growth opportunities and keep operations running smoothly. It’s the great irony of business that high growth leaves your firm with paper profits and no cash.
In many cases, even a simple cash flow spreadsheet has saved many business owners from the surprise of a working capital financing crisis- the irony of which is often brought about by that great positive in business - sales revenue increases!
3 KEY ISSUES IN WORKING CAPITAL NEEDS AND ASSUMPTIONS
Depending on how your business is currently financed, other issues that need to be addressed in your working capital business projections include:
New personnel needs
Asset requirements/replacement around your production activity
Ability to repay current long-term debt payment obligations such as leases / real estate mortgages, etc., and offer clients better credit terms.
Funding from a commercial lender or financial institution can cover almost any business expense, emphasizing its flexibility in covering different business expenses for eligible borrowers.
So, bottom line, it’s all about cash inflows and outflows.
THE COMPANY'S CURRENT ASSETS TURNOVER IS KEY!
Working capital loans are also about your ability to manage your company's current assets.
In this case, we discuss inventory turnover and accounts receivable management. Combined with your ability to handle sales, these current assets determine your financing needs. Solid asset turnover will help lower interest rates and borrowing costs and place less dependence on personal guarantees, personal net worth, credit score, etc.
ACHIEVING PROPER WORKING CAPITAL LOANS FINANCING - 4 IMPORTANT POINTS TO CONSIDER
Knowing when you have the proper financing is easy to spot as you monitor business activity. You should strive for the following:
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Knowing you have the cash you need when you need it to meet obligations and repayment terms
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You can consider growth and investment. Capital investment is crucial for ongoing production and creating value.
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Your A/R and inventories have acceptable turnover ratios for a line of credit solution.
Ensure you are comfortable with the costs of your working capital financing - namely, that those costs achieve the return on investment at an acceptable interest rate.
It's a well-known business term that ' cash flow is king ', and your firm's ability to access working capital and sources of cash under borrowing terms that make sense for your company is key. Focus on your needs and what information and financial formulas you require to ensure that new business capital makes sense.
Understanding key terms such as days sales outstanding and inventory turns will allow you to assess better your ability to meet financial obligations and minimize the investments you need to make into higher levels of a/r and inventories.
Technically speaking if your small business can’t meet short or long-term obligations - that infers insolvency or business failure. While that is the extreme, many clients we meet simply have ' bulge ' needs for one-time issues or opportunities, and one of several of the above-noted solutions fixes that.
HERE ARE SOME FINANCE SOLUTIONS FOR CANADIAN BUSINESSES
What, then, are the finance solutions that address short-term working capital business needs? While a cash term loan might be the answer (provides cash but takes on debt on your balance sheet), more optimal solutions include:
A/R Financing / Invoice Financing
Inventory Loans
Access to Canadian bank credit
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/Lump sum cash loans
Securitization
The government of Canada Small business loan is also a solid solution for early-stage companies, startups, etc.
KEY TAKEAWAYS
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Types of Business Loans: Knowledge of different loan types, from short-term to long-term, secured to unsecured, is fundamental.
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Equity vs. Debt Financing: Distinguishing these core funding sources helps businesses choose wisely between relinquishing equity or incurring debt.
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Credit Scores' Role: Creditworthiness affects loan terms and availability, making it critical for securing favourable financing.
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Startups' Financing Strategies: Tailored approaches for new enterprises, such as the government small business loan, are crucial for navigating initial financial challenges.
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Market Conditions' Impact: Understanding this helps businesses adapt their financing strategies to economic changes.
CONCLUSION
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor with a track record of success and get back that ' comfortable ' feeling knowing you have accessible business working capital and financing solutions for survival and to take advantage of growth projects, r&d around intellectual property, etc.
FAQ
How can business capital finance benefit my small enterprise?
It provides the necessary funds to cover operational costs and expand business operations, thereby enhancing growth potential.
What types of financing options are available under business capital finance?
Options range from traditional bank loans and lines of credit to alternative funding like venture capital and crowdfunding.
How does equity financing differ from taking a business loan?
Equity financing involves selling a portion of your business for capital, whereas loans require repayment with interest but let you retain full ownership.
Can startups easily access business capital finance?
Startups might face challenges, but with a solid business plan and potentially higher-risk financing options like angel investors, they can secure the necessary funds.
What role does my credit score play in securing business finance?
Maintaining good financial health is crucial because a higher credit score can unlock better loan terms and rates.
What is the impact of economic downturns on business capital financing?
Economic downturns can tighten lending criteria and reduce available funding, making it harder to secure loans.
Are there specific financial metrics that enhance my eligibility for business capital finance?
Strong revenue, a good credit score, and a history of profitability boost your eligibility for favourable financing terms.
How does business capital finance support long-term business goals?
It allows for strategic investments in technology, talent, and infrastructure, essential for long-term growth.
What are the risks associated with business capital finance?
Risks for SME'S / small businesses can include accruing debt, paying interest, or losing equity depending on the type of financing.
How do I choose the right financing option for my business needs?
Assess your financial situation, consider the cost of capital from suitable commercial lenders or financial institutions, and align choices with your business strategy and risk tolerance.
How does business capital finance impact a company's financial health?
Properly managed, it enhances financial stability and growth potential by providing necessary funds at critical times.
What are common mistakes businesses make with capital financing?
Common errors include over-leveraging, neglecting credit improvements, and choosing inappropriate financing, such as a higher-priced short-term working capital loan or merchant cash advances.
How should businesses prepare to apply for capital financing?
Preparations to access financial capital for small business financing include refining business plans, improving credit scores, and understanding various lenders’ requirements.
