YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS!
ALTERNATIVE LENDING VERSUS TRADITIONAL BANK 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?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Email = sprokop@7parkavenuefinancial.com
Bank financing in Canada is, no question about it, the most commonly thought source for business loans. Canadian banks offer unlimited financing and low rates for firms that qualify - However, not all small business owners qualify for a bank loan in the Canadian economy's SME sector. Click here to see how the SME sector is defined. Accessing financing companies for small businesses becomes Job 1!
ACCESS ALTERNATIVE FINANCING WHEN EQUITY CAPITAL IS NOT AVAILABLE
Another solution is alternative finance capital - more widely available than ever these days. By now, the owner has exhausted efforts via angel investors, venture capitalists, p2p lending platforms/marketplace lending, a crowdfunding platform, friends and family, etc. Equity financing usually is not an option and more expensive than debt financing. What then are the best financing options for a small business?
For information on debt versus equity financing considerations, click here. The traditional bank loan marketplace from lending institutions such as traditional banks or a credit union and other regulated lending companies are often insurmountable by thousands of firms. Let's dig in.
HOW THE BANK THINKS!
There is no question that the wide availability of bank funding has the potential to serve all the needs of Canadian business - that’s in the form of business revolving lines of credit, fixed-term loans, and a wide variety of other products and services. The challenge for Canadian business owners/ financial mgrs? Trying to understand exactly how ' the bank' thinks!
If there's any good news on Canadian banking, it’s that our banks continue to be #1, world-class in the capital, profits, mgmt, etc. This is a two-edged sword for the business owner because those bank offerings come with a prerequisite of collateral, personal guarantees, cash flow, and conservative loan-to-value scenarios.
THE GOVERNMENT AS A SMALL BUSINESS LENDER?
Companies in Canada that are ' start up' in nature and ‘collateral light)! make that decision to borrow very difficult on most occasions. Think of it as ' lower risk lending,’ but oh, those great rates and access to capital! A bank loan for a startup is rarely available for startup capital. However, the best solution in this area is the Government Of Canada ' SBL LOAN ' via the Canada Small Business Financing Loan Program. Flexible Repayment Terms, no closing costs, a lower down payment, and attractive rates are hallmarks of this popular program.
Acceptable personal credit scores and a good business plan are required to be successful in the government small business loan program for business credit. Let the 7 Park Avenue Financial team help you navigate through the loan application approval process. Government loan guarantees are accessed by thousands of firms every year for billions of dollars. The program requires good business plans - A 7 Park Avenue Financial business plan meets and exceeds bank and commercial lender requirements.
The other common challenge for business funding options to owners/mgrs are the financial covenants and ratios that might be difficult to satisfy from the perspective of bank lenders, much less explaining to wives and husbands the whole issue of personal guarantees, notwithstanding the ability of some business people to feel confident they can negotiate some level of guarantee re personal assets/holdings notwithstanding the importance of bank ' relationships' and the dangers of being put into ' special loans ' it’s important to consider alternatives.
Alternatives? You bet. They include asset-based lenders who focus only on the company's assets, placing full focus on only your assets and their borrowing capacity. Those assets include receivables, inventory, and equipment and real estate if the latter is applicable. These transactions are usually structured as non-bank business credit lines versus a lump sum term loan structure.
Other solutions include Accounts Receivable financing based solely on your A/R outstanding invoices and sales growth. Commonly known as factoring, it’s a solid solution when sales are growing, and traditional finance is less available. As far as financing products, A/R financing is at the top of the list for immediately accessible finance, given the focus is on your receivables portfolio versus the credit quality of your business. Cash flow problems are quickly resolved via a solid factoring solution.
ALTERNATIVE FINANCE SOLUTIONS FROM ALTERNATIVE LENDERS IN CANADA'S BUSINESS CREDIT MARKET
Invoice Factoring / Receivable Finance - Invoice financing for small businesses is one of the largest sectors of the alternative lending landscape in Canada - At 7 Park Avenue Financial, we recommend Confidential Receivable Finance as a recommended solution for a good factor rate and a facility that allows you to control your sales finance cash inflows.
Inventory loans
Term Loans - fixed payment amount financing/installment loans
PO finance
Working capital term loans / Short Term Working Capital Loans
Sale-leasebacks
Mezzanine Financing / Cash flow loans
Equipment financing - an equipment loan for business purposes conserves cash flow for assets and technology required to run and grow your business - keep your business ' up to date ' with technology financing solutions structured to your needs around business expenses and business purposes.
Merchant Cash Advances / Business Credit Cards / Micro loans - good credit score required!
Vendor Financing - the ability to successfully achieve longer payment terms from vendor partners and suppliers is a cash flow plus!
The asset-Based business line of credit
Small business innovation research - Canada's SR&ED Program - your sr&ed credits can easily be financed.
WHAT FACTORS AFFECT BUSINESS FINANCE FUNDING APPROVAL
Lending options, type of financing, and overall business credit score/credit profile quality will always drive rate structure and your ability to decrease higher interest rates and achieve a lower interest rate and the amount of business capital you can access.
CONCLUSION
No one disagrees that small business finance and accessing bank loans is a challenge around a funding option.
If you're focused on getting the ' best answer' to lending solutions and financing products in traditional and alternative financing and meeting your needs in Canadian business financing, speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you in your bank financing or alternative finance business loan needs in business capital and cash flow finance to satisfy your growth potential.
Click here for the business finance track record of 7 Park Avenue Financial.
