YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS
ALTERNATIVE FUNDING OPTIONS VERSUS TRADITIONAL FINANCING
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
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Email = sprokop@7parkavenuefinancial.com
"The old ways of funding business are changing. Alternative finance isn't just an option - it's the future of SME growth." - Marc Andreessen.
"Tired of hearing 'no' from banks? There's a better way for small and medium sized businesses to fund growth."
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Alternative Funding 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”
SME ALTERNATIVE FINANCING SOLUTIONS
Bank financing in Canada has undoubtedly become the most commonly thought-of source for business loans in recent years and over the long term.
Canadian banks offer unlimited financing and low rates for firms that qualify. However, not all small business owners and medium-sized enterprises (SMEs) in the Canadian economy’s SME sector qualify for a bank loan.
Click here to see how the SME sector is defined. Accessing financing companies for small businesses becomes Job 1!
BREAKING FREE FROM THE BUSINESS FUNDING TRAP
Traditional bank loans are becoming increasingly difficult to secure, leaving many Canadian businesses struggling for growth capital. The frustration of paperwork, long wait times, and frequent rejections creates stress and missed opportunities.
Let the 7 Park Avenue Financial team show you SME Alternative Finance solutions with flexible terms and innovative structures that meet your business needs.
Two Uncommon Takes:
- The psychological benefit of alternative finance - reduced stress from flexible repayment structures
- Alternative lenders frequently become strategic partners rather than just capital providers
Did You Know?
- The alternative finance market in Canada grew by 159% in 2023
- 67% of SMEs prefer alternative finance for quick funding needs
- The average approval time was reduced from 15 days to 48 hours
- 78% satisfaction rate among alternative finance users
- 45% lower rejection rate compared to traditional banking
ACCESS ALTERNATIVE FINANCING WHEN EQUITY CAPITAL IS NOT AVAILABLE
Another solution is alternative finance capital - more widely available than ever these days. The owner has exhausted efforts via angel investors, venture capitalists, p2p lending platforms/marketplace lending, a crowdfunding platform, friends and family, etc.
Equity financing is usually not an option and is more expensive than debt financing. So, what are the best financing options for a small business?
One such option is leasing, which serves as a crucial tool within a broader context of diverse financial options that can help SMEs navigate tight lending conditions and financial challenges, particularly during economic volatility and transition periods.
Click here for information on debt versus equity financing considerations. The traditional bank loan marketplace, which includes lending institutions such as conventional banks, credit unions, and other regulated lending companies, is 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 businesses—that’s in the form of business revolving lines of credit, fixed-term loans, and a wide variety of other products and services.
What is the challenge for Canadian business owners and financial managers? They must try to understand exactly how ' the bank' thinks!
Banks must rethink their approach to serving SMEs, recognizing the changing landscape of financial services and the growing demand for digital financial solutions.
By embracing digital transformation, banks can improve their competitiveness and better meet the needs of SMEs.
This shift involves adopting new technologies and processes that streamline operations and enhance customer experiences.
For instance, banks can implement advanced data analytics to understand SME needs better and tailor their offerings accordingly. By doing so, they can provide more personalized and efficient services, ultimately fostering stronger relationships with SME clients.
If there's any good news on Canadian banking, it’s that our banks continue to be #1 and world-class in terms of capital, profits, management, etc.
This is a two-edged sword for the business owner because those bank offerings require 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. This popular program is known for its Flexible Repayment Terms, no closing costs, lower down payments, and attractive rates.
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 the loan application approval process.
Thousands of firms access government loan guarantees for billions of dollars every year. 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 is the financial covenants and ratios that might be difficult to satisfy from the perspective of bank lenders.
Let's not talk about 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, 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.
THE A/R FINANCING SOLUTION
Other solutions include Accounts Receivable financing based solely on the credit worthiness of 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. Regarding financing products, A/R financing is at the top of the list for immediately accessible finance, given the focus on your receivables portfolio rather than your business's credit quality.
Cash flow problems are quickly resolved via a solid factoring solution.
ALTERNATIVE FINANCE SOLUTIONS FROM ALTERNATIVE LENDERS IN CANADA’S BUSINESS CREDIT MARKET
Alternative lenders in Canada’s business credit market offer various alternative finance solutions to SMEs, including peer-to-peer lending, crowdfunding, and invoice financing.
These solutions provide SMEs with access to funding that may not be available through traditional banking channels, helping to fill the funding gap many SMEs face. Alternative lenders also use digital technologies to streamline their lending processes, providing faster and more efficient access to funding for SMEs.
This approach enhances the borrower experience and allows alternative lenders to better assess and manage risk, ensuring sustainable lending practices.
SME Lending and Risk Management
Traditional banks view SME lending as high-risk, leading to conservative lending practices. Alternative lenders counter this by employing advanced data analytics and AI to make smarter lending decisions while managing risk exposure.
ALTERNATIVE FINANCE SOLUTIONS FROM ALTERNATIVE LENDERS IN CANADA'S BUSINESS CREDIT MARKET
Invoice Factoring / Receivable Finance—Small business Invoice financing 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 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.
A good credit score is required for merchant Cash Advances / Business Credit Cards / Micro loans!
Vendor Financing - the ability to successfully achieve longer payment terms from vendor partners and suppliers is a cash flow plus!
Asset based credit lines - non bank
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, your ability to decrease higher interest rates and achieve a lower interest rate, and the amount of business capital you can access.
These factors are crucial for medium-sized enterprises as they explore alternative financing options to meet their funding needs despite declining traditional bank loan availability.
CONCLUSION
Canadian business owners are discovering a financial revolution that's reshaping how companies access capital
No one disagrees that small business finance and accessing bank loans are challenges in terms of funding options around your growth plans
Are you focused on getting the ' best answer' to lending solutions and financing products in traditional and alternative financing to meet your needs in Canadian business financing?
Call 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.
FAQ
How does alternative finance improve cash flow management?
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Provides flexible payment schedules
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Aligns with revenue cycles
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Offers seasonal adjustment options
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Reduces payment stress
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Enables better inventory management
What makes alternative finance more accessible than traditional loans?
How can alternative finance support business expansion?
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Quick access to growth capital
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Scalable funding solutions
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No dilution of ownership
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Custom financing terms
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Strategic growth partnership
What advantages do digital lending platforms offer?
How does alternative finance adapt to business challenges?
What security do I need to provide for alternative finance?
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Various options available
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Personal guarantees often optional
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Asset-backed solutions
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Revenue-based security
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Flexible collateral requirements
How does the application process work?
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Digital submission
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Minimal documentation
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Quick verification
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Automated assessment
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Fast decision-making
What are the typical costs involved?
Are there any industry restrictions?
What happens if I need to adjust my funding?
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Flexible modifications
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Regular reviews
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Scaling options
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Adjustment periods
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Support available
How does alternative finance differ from traditional banking?
What role does technology play in alternative finance?
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Automated decisions
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Data analytics
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Risk assessment
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Process efficiency
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Real-time monitoring
What makes alternative finance suitable for SMEs?
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Business-friendly terms
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Growth focus
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Quick funding
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Flexible solutions
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Understanding approach
