YOUR COMPANY IS LOOKING FOR FINANCING ALTERNATIVES!
Alternative Financing for Canadian Businesses: Exploring Unique Options for Business Funding
WHAT TYPES OF FINANCING DO YOU NEED?
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing businesses 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
Innovative Financing Options for Canadian Business Owners: 7 Alternatives to Traditional Bank Loans
"Tired of hearing 'NO' from banks? There's a better way to fund your business growth."
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Alternative Financing 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”
Alternative Financing Business Solutions
Business finance alternatives depend on one key thing. Do you know what that is? It comes down to knowing where your company is regarding its growth stage.
That’s a long spectrum as financing alternatives start way back with business start-ups and established small businesses and extend to mature companies that have stopped growing and might be generating all the cash they need, even exploring venture capital as an exit strategy.
The business owner/entrepreneur in Canada knows the challenge of raising capital very well. While a bank loan via Canadian banks is the ‘go-to ‘ option always at the top of my mind, bank financing is not always available for businesses.
An alternative lender can provide flexible and tailored loan options for businesses at different stages of growth. These financing methods are often a better fit for your business needs.
"Breaking Free from Traditional Lending: Your Path to Business Growth"
Business owners know the challenge of obtaining financing from Canadian banks - Delays or inability to obtain traditional financing leads to cash flow challenges and , even worse, missed opportunities for growth and profit. Alternative funding solutions can provide quicker access to capital without the rigidity of conventional loans.
DID YOU KNOW?
- 61% of small businesses seek alternative financing options
- Alternative finance refers to a non-bank market that is growing at 23.7% annually.
- The average approval rate 67% higher than that of traditional banks
- 82% of businesses prefer digital lending platforms
- Funding decisions made 71% faster than traditional methods
WHAT IS ALTERNATIVE BUSINESS FINANCING FROM ALTERNATIVE LENDERS?
Alternative financing methods are types of business financing outside of traditional financial options offered by banks and other commercial lending institutions.
Alternative loans are flexible for businesses that may not qualify for traditional bank loans. Companies should be aware of their options when financing cannot be achieved due to issues such as a lack of business credit history, assets, or cash flow challenges.
Alternative finance solutions appeal to business owners as interest rates are becoming more competitive in the alternative lending landscape, and credit approval is quick and easy compared to bank timelines.
SOLVING THE SME / SMB BUSINESS CAPITAL CHALLENGE
The business owner's key challenge is not to give up an ownership stake while at the same time achieving the business capital funding the owner/manager needs to run and grow the business.
MANAGING FINANCIAL STRESS IN THE BUSINESS
Sometimes, the company and business owner might be challenged and undergo financial stress concerning debt load, lack of cash flow, etc.
That's why it's important to know your financing options while understanding your firm's journey to business financial health.
WHAT ARE YOUR ALTERNATIVES IN BUSINESS FINANCE
Bottom line—there are business financing alternatives! Many firms find themselves in a position that yields a double-edged sword: They are growing too fast, and business feels good, but… they are constantly out of cash.
One of the most common solutions to that problem is asset-based lending, which typically means considering the move to non-bank asset-based lending solutions versus bank loans - And there are several of them -
Alternative mortgage lenders provide flexible and personalized financing options for businesses that do not meet traditional banks' stringent requirements.
7 TYPES OF ALTERNATIVE FINANCING FOR SMALL BUSINESSES & THE SME SECTOR IN CANADA
They include:
Non-bank business lines of credit
Basic A/R or Inventory Finance / Invoice factoring / Invoice financing ( As a funding option, the financing of outstanding invoices is currently the most popular method of short-term finance for financing small businesses in Canada )
Purchase Order Funding
Tax Credit Finance
Sale-Leaseback
Short-term unsecured working capital loans / Merchant Cash Advances / Business credit card for small business expenses - Short-term loans are popular because they provide quick access to capital with a streamlined approval process and funding availability within a matter of days - Formulas for approval around these types of loans are based on sales revenues and owner personal credit history - One caveat on these loans is the higher interest rates compared to a bank loan
Credit unions - These financial institutions provide lending solutions for businesses that may not qualify for conventional loans from larger banks, making them a viable alternative for borrowers seeking mortgages or other financial products.
Term Loans (Cash Flow-Based)
As you can see, there is a lot of flexibility in mixing and matching alternative financing solutions.
GOVERNMENT LOANS, CREDIT UNIONS, AND BUSINESS GRANTS
Government-guaranteed loans are available for Canadian business owners and entrepreneurs. The Canada Small Business Financing Program, along with the SR&ED Program, is the most popular government-funded program in Canada.
These two programs provide billions of dollars of financing for business owners annually for startups and established businesses.
Talk to the 7 Park Avenue Financial team about how we can streamline your approval for Government Small business loan financing and financing sr&ed tax credits.
Government grants are also popular because they do not require repayment, but they are difficult to access and can be time-consuming to apply for.
TURN TO THE 7 PARK AVENUE FINANCIAL TEAM FOR SOLID BUSINESS FINANCE ADVICE
Naturally, many business owners and financial managers face a problem that is even more simple - they don’t know where to go or who to talk to for assistance in evaluation financing solutions.
They are busy running their company and aren’t dialoguing with lenders at either banks or commercial finance companies!
Consulting a mortgage professional can provide personalized advice on alternative financing options, helping to determine affordability based on various factors.
Remember also that when it comes to traditional financing, small business owners' credit scores and personal poor credit histories are often key discussion points and will affect final interest rates.
WHAT ARE THE REQUIREMENTS FOR TRADITIONAL BANK LOANS IN CANADA
Many types of finance require and certainly are helped by a business plan. 7 Park Avenue Financial business plans meet and exceed the requirements of banks and commercial lenders in Canada.
The type of business funding you need will always dictate the requirements and guidelines for applying, and you may want to ensure you understand the qualification requirements for that type of funding. Small business loans for startups require a more in-depth loan package.
HOW IMPORTANT IS EXPERT ADVICE FOR THE FUTURE OF YOUR BUSINESS
Of course, that’s why companies can benefit from a business financing advisor such as 7 Park Avenue Financial—they are guaranteed to understand the full spectrum of alternative business funding.
Experts can help businesses explore flexible financing options, including mortgage solutions for unique financial situations. They suddenly see answers to challenges such as taking on major new contracts or offering clients extended payment terms.
MANAGING A TURNAROUND
A company experiencing severe financial stress can also consult a business advisor to find a solution through a restructuring and refinancing process.
It would help if you made sure any restructuring plan can be properly implemented based on current lenders, supplier needs, and a careful review of finance options.
THE STARTUP CHALLENGE
Businesses that are start-up or generate their first revenues can benefit from non-traditional funding sources.
Solutions that aren’t business startup grants, such as Government-Guaranteed Small Business Loans and equipment Financing as an alternative to loans, are tried-and-true solutions for startups.
Private lenders can also be an option for startups that may not qualify for traditional funding sources. These are some of the top startup options for financing small businesses in Canada.
PERSONAL GUARANTEES, ETC!
A good credit score and personal credit history of owner/owners is a large part of Canada's small business financing.
A repayment schedule tailored to your needs is typically based on a 2-5-year term loan structure. Making small business loan requests can be daunting for many businesspeople, so let the 7 Park Avenue Financial team help you when you need it most.
On occasion, dealing with a traditional bank or dialoguing with finance companies is not for the faint of heart. You want your best interests and needs to be respected when it comes to not paying a higher interest rate, providing outside collateral, etc.
ARE YOU LOOKING FOR A BUSINESS FINANCING EXPERT?
NOT GOING THE VENTURE CAPITALISTS ROUTE/FRIENDS AND FAMILY /ANGEL INVESTOR / CROWDFUNDING PLATFORM / PEER TO PEER LENDING / ON LINE LENDING PLATFORMS / PRIVATE LENDERS ROUTE ?!!
Some businesses, to raise funds, turn to venture capitalists, angel investors, private equity investors, etc., to fund their businesses. In return for this type of funding, the business owners must be prepared to give up substantial ownership equity in the business, and a strong growth plan must be in place. The equity investor, unlike a debt finance solution, will also look for an exit strategy of some sort , unlike using alternative finance instruments.
While venture capital is abundant and no interest rates or repayment requirements are attractive, the business owner must be prepared to give up substantial control of the business. The business must ensure that it can scale quickly to achieve the returns required by equity investors.
KEY TAKEAWAYS
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Revenue-based financing options adapt to your business cycles
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Qualification focuses on business performance over credit scores
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Digital application processes enable rapid funding decisions
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Alternative lenders evaluate real-time business metrics
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Flexible repayment structures match your cash flow patterns
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Alternative financing options can help manage mortgage payments through flexible repayment structures
CONCLUSION - ALTERNATIVE SOURCES FOR FUNDING BUSINESS GROWTH
There are numerous reasons why your business might want to consider alternative financing sources versus traditional financial institutions.
For real-world funding solutions, speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your business funding needs.
Let 7 Park Avenue's financial team help solve your cash flow problems with finance business decisions for financing a business that makes sense for your business model, your firm and your industry.
FAQ FREQUENTLY ASKED QUESTIONS PEOPLE ALSO ASK MORE INFORMATION
What are some options for financing a business?
Options for financing a business include:
Self Financial via the money of the business owner/ entrepreneur
Friends and family loans
Crowdfunding/Angel investor’s equity partners
Government Small Business Loans / Government grants
Mortgage finance companies providing mortgage solutions for businesses
How do you fund a business expansion?
Business expansion can be funded via:
Business loan debt financing
Government business loans
Equity partners
Self-funding via owner equity or the cash flows of the business
What is the most common form of financing a business?
The most common form of business financing is debt financing via banks or other commercial lenders. However, many Canadians face challenges in securing a traditional mortgage due to high home prices and rising interest rates. Alternative lending can serve as a viable solution for individuals who may not meet the criteria for a traditional mortgage, such as those with insufficient income or unconventional employment histories. The alternative to debt financing is equity financing via the sale of shares in the business. Debt financing is the cheapest form of business capital and allows owners to retain control and ownership of business operations.
How does alternative financing provide faster access to capital?
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Digital application processes
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Simplified documentation requirements
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Automated underwriting systems
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Decisions often come within 24-48 hours
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Funding is possible within days
What makes alternative financing more flexible than traditional loans?
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Revenue-based repayment options
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Customizable term lengths
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No fixed monthly payments
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Seasonal payment adjustments
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Multiple funding types available
What types of businesses benefit most from alternative financing?
How does alternative financing support business scalability?
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Quick access to growth capital
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Renewable funding options
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Increases with business growth
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Adaptable terms
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Strategic expansion support
How is alternative financing different from traditional bank loans?
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Faster approval processes
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Less emphasis on credit scores
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More flexible repayment terms
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Simplified documentation
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Focus on business performance
What documentation will I need to apply?
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Bank statements (typically 3-6 months)
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Basic business information
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Revenue Verification
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Merchant processing statements
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Tax returns (sometimes optional)
What are the typical costs associated with alternative financing?
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Factor rates vs. interest rates
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Processing fees explained
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Payment structure options
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Total cost of capital
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Early repayment benefits
What role does cash flow play in alternative financing approval?
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Revenue patterns evaluation
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Daily/weekly sales analysis
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Seasonal considerations
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Payment capacity assessment
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Future revenue projections
What makes alternative financing suitable for rapid business growth?
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Quick capital access
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Scalable funding options
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Flexible use of funds
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Minimal restrictions
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Renewable resources
