YOUR COMPANY IS LOOKING FOR BUSINESS FINANCING 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
"Every successful Canadian business started with a crucial decision: choosing the right financing strategy to fuel its growth."
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Business Financing Options 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”
Business Financing Options
Business credit financing options in Canada. Owners and managers of Canadian firms consistently seek sources of capital.
One way to assess the type of financing you need is to put your company on the ‘ operating table ‘. Let’s examine some basic techniques, strategies, and real-world solutions that will provide meaningful answers to the eternal question, ‘ Where’s the money? ‘Let’s dig in.
BREAK THE BUSINESS FUNDING BARRIER
Canadian business owners know well the rejection that sometimes comes when seeking traditional financing. Without the funding you need, growth can slow, inventories are low, and your competition can run circles around you. Talk to the 7 Park Avenue Financial team about the full spectrum of both traditional and alternative business funding options for your business needs.
DID YOU KNOW?
- 26% of Canadian small businesses cite access to financing as a significant challenge
- 68% of business financing applications to traditional banks are rejected
- Alternative lenders process applications 60% faster than conventional banks
- 42% of Canadian businesses seek financing annually
- Online lenders have grown 176% in the last 5 years
One primary financing option is a bank loan, especially for businesses with established revenue.
Whether you call it an ‘art’ or a ‘ science, ‘ the answer to the type of Canadian business financing that you need in looking at your company's practical situation and looking for quite easily found ‘ clues ‘to your over-solvency and liquidity in terms of day to day operations and growth.
UNDERSTANDING SOLVENCY
A top priority for the business owner/manager is to ensure they understand their firm's current and long-term solvency.
That overall solvency allows you to get credit from banks and commercial finance firms offering various non-bank solutions.
Those non-bank potential financing solutions include:
A/R Finance
Inventory Financing
Asset-based business lines of credit
Sale leasebacks
Equipment financing
Bridge loans
Unsecured Cash flow loans
Tax credit monetization
Government Business Loans
BDC
Supply chain / PO Finance
Various financial institutions, including credit unions and traditional banks, often provide these non-bank solutions.
When your company is on that operating table, don’t forget to check the patient for ‘ circulation’. However, the circulation we’re talking about is how your current assets circulate—typically, that’s the flow of your cash from inventories to receivables and back to… you guessed it… cash!
Your circulation is excellent if you’re collecting your A/R to terms and turning inventories over promptly.
It’s another reality that short-term cash, liquidity, and solvency issues don’t fix your long-term capital structure. Always be aware of the debt you carry relative to owner equity.
Three great ‘ buzzwords’ to keep thinking of as you assess your solvency and financing options are:
Trends
Changes
Movement of cash
Business credit in the short term typically revolves around inventory, and A/R turns.
While all business owners we meet consider their firms unique, you can easily benchmark your balance sheet and operating results against those of others in your industry.
Ownership of assets such as equipment and real estate requires that you seriously consider your ability to generate profits and cash flow - notwithstanding that the assets themselves are the actual collateral for the debt.
We’re always impressed by business owners/managers who maintain ongoing income and current asset information—aka ‘ budgets’. These allow you to assess current and seasonal needs. They are great tools for impressing and securing bank financing in Canada.
KEY TAKEAWAYS:
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Credit qualification determines financing options and rates
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Cash flow analysis reveals optimal financing structures
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Collateral strength impacts borrowing capacity significantly
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Personal credit scores influence business lending decisions
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Term length affects the total cost and monthly payments
CONCLUSION
Certain types of financing can help the business owner address an unrealistic debt burden. Many businesses in Canada are simply weak because of what we can only call ' inadequate financing '.
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you in assessing business credit needs and identifying financing options and sources of capital and cash flow.
FAQ
How does strategic financing impact business growth?
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Enables rapid market expansion
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Supports inventory optimization
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Allows equipment modernization
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Facilitates hiring key personnel
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Provides competitive advantages
What advantages do alternative financing options offer?
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Faster approval processes
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More flexible terms
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Less stringent requirements
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Creative structuring options
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Specialized industry solutions
When is the best time to secure business financing?
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Before seasonal peaks
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During growth opportunities
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Prior to major purchases
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While financials are strong
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Before emergency needs arise
How do lenders evaluate business financing applications?
What factors determine business financing costs?
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Credit score impact
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Industry risk level
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Business age and revenue
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Collateral quality
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Market conditions
What is Business Financing?
Business financing is securing funds to support operations, growth, and expansion. It involves obtaining capital from various sources, such as financial institutions, investors, and personal savings, to cover business expenses, invest in new opportunities, and manage cash flow. Business financing can take many forms, including debt, equity, and alternative financing options. Whether you want to purchase new equipment, expand your operations, or manage day-to-day expenses, understanding the different financing options available can help you make informed decisions that align with your business goals.
What are Sources of Business Financing
There are several sources of business financing, each offering unique benefits and considerations:
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Financial Institutions: Banks, credit unions, and online lenders provide business loan products, including term loans, lines of credit, and invoice financing. These institutions are often the first stop for businesses seeking traditional financing options.
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Investors: Venture capitalists, angel investors, and private equity firms invest in businesses in exchange for equity or ownership stakes. These investors provide capital and often bring valuable expertise and networks to help grow the business.
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Personal Savings: Many entrepreneurs use their savings or retirement accounts to finance their businesses. This option can be less risky than taking on debt, but it also means putting personal assets on the line.
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Alternative Lenders: Online lenders, crowdfunding platforms, and peer-to-peer lending platforms offer alternative financing options for businesses. These sources can provide faster approval processes and more flexible terms than traditional financial institutions.
What are the Types of Business Loans?
There are several types of business loans available to meet different financing needs:
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Term Loans are fixed-rate loans with a set monthly payment repayment term, typically used for long-term investments or expansions via debt financing - They provide a lump sum of capital upfront, which is repaid over a specified period.
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Lines of Credit: Revolving credit facilities allow businesses to borrow and repay funds as needed. This type of financing is ideal for managing cash flow and covering short-term business expenses for inventory financing and a/r financing
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Invoice Financing: Loans secured by outstanding invoices, used to improve cash flow and manage working capital. This option allows businesses to access funds tied up in unpaid invoices.
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Equipment Financing: Loans used to purchase or lease equipment, machinery, or vehicles. This type of financing is secured by the equipment itself, making it easier to obtain for businesses with limited credit history. The lease payment is treated as a business expense.
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Small Business Loans: Explicitly designed for small businesses, these loans often come with more flexible repayment terms and lower interest rates. A small business loan can be used for various purposes, from working capital to expansion projects. Government business loans can be obtained from participating lending institutions.
What is Equity Financing?
Equity financing involves selling ownership stakes via an equity interest in a business to investors in exchange for capital. This type of financing can be used to fund growth, expansion, and new initiatives without taking on debt. Equity financing options include:
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Venture Capital: Investments made by venture capital firms in exchange for equity stakes in high-growth businesses. These firms typically look for innovative companies with significant growth potential.
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Angel Investors: Wealthy individuals who invest in startups and early-stage businesses in exchange for equity stakes. Angel investors often provide not only capital but also mentorship and industry connections.
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Private Equity: Investments made by private equity firms in established businesses, often focusing on restructuring and growth. These firms typically invest more considerable sums of money and seek to improve the business’s profitability before exiting.
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Crowdfunding: Platforms that allow businesses to raise funds from many people, often in exchange for equity or rewards. Crowdfunding can be an effective way to generate capital while also building a community of supporters and customers.
