YOUR COMPANY IS LOOKING FOR FINANCING OPTIONS!
FINANCING A BUSINESS IN CANADA / FINANCING OPTIONS FOR BUSINESS
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
"The art of raising capital is not just about securing funds; it's about finding the right partners who believe in your vision and can help you achieve it." - Reid Hoffman, co-founder of LinkedIn
Struggling to fund your business dreams? Discover the hidden gems of financing that could transform your company's future.
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”
CANADIAN BUSINESS FINANCING OPTIONS
When achievable, business finance options in Canada provide a sense of security to Canadian business owners and financial managers.
When we talk to many clients and business folks they feel their financing solutions for corporate funding are limited; in other cases they know they have options but don't know where to look or who to talk to. Let's dig in.
Canadian Business Financing Options & Funding Alternatives Are Here!
Our position? The second coming of small business Canadian business financing might already be here—you just didn’t get the memo!
The reality is that there are many traditional and alternative financing strategies that give the owner/manager a broad spectrum of working capital and long-term funding alternatives. And trust us, we’re not talking about large, well-funded, already public companies with access to capital, equity markets, and Bay Street smarts.
Those solutions apply equally as much to the SME (Small to Medium Enterprise) sector in Canada. Exploring various small business financing options is crucial to finding the best fit for your needs and conditions.
WHY YOUR BUSINESS NEEDS EXTERNAL BUSINESS LOAN FINANCING
Of course, financing is required for a variety of circumstances, including growth, operations, turnaround/recapitalization, and even the acquisition or merger of your firm with/by another.
It's no secret that the Canadian business financing landscape has evolved dramatically in only a few short years since the 2008/2009 financial debacles every company on the planet felt the brunt of- and let's not even talk about Pandemics & COVID-19 19.
THE BAR IS RAISED HIGH FOR THE ABILITY TO GET YOUR COMPANY FINANCED
We've observed one huge irony when looking for funds for businesses: the constant message by Canadian banks and financial pundits that there is a lot of corporate funding and capital alternatives available to businesses.
A good credit score can significantly increase the likelihood of securing financing. Yes, we agree; it’s just that the hurdles to achieving those goals seem much higher. The bar has been raised.
UNDERSTANDING ALTERNATIVES AND THE DEBT AND EQUITY FINANCING QUESTIONS
So, how does the owner/manager of a start-up or a mid-market firm achieve access to financing?
First, they need to know if they are looking for and are suited to the right amount of ‘ debt’ or ‘ equity ‘. Additionally, credit union financing can be an appealing option for businesses seeking lower interest rates and fewer fees compared to traditional banks and their financial reporting requirements and covenants.
They need to know how to access that funding—it might be a bank. Still, it might also equally be available from independent commercial finance companies and asset-based cash flow lenders.
Naturally, it takes a bit of time for small businesses to research these alternatives for business loans and to feel secure that they are dealing with and talking to the right parties.
Here is might be highly advisable to seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in positioning your business for the financing it deserves
KEY BUSINESS FINANCING OPTIONS
What then are some of those financing basics and finance options? They include:
A/R Financing
Inventory Loans
Access to Canadian bank credit/bank loan solutions - operating loans/business credit lines
Non-bank asset-based lines of credit - A solid alternative to high-growth financing needs
SR&ED Tax credit financing
Equipment / fixed asset financing - equipment financing / leasing for new equipment / technology
Cash flow loans
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance
Securitization
Bank or Canadian Government SBL Loan
Canadian Government SBL Loan Programs
Merchant Cash Advance
The Canadian Government Small Business Loan program is a solid financing tool and solution for early-stage firms and new business financing for a startup.
This business loan's interest rate and repayment terms are very attractive to franchising financing and startups.
The business owner should ensure they have a good personal credit score and credit history. One thing to remember is that this type of financing is a term loan, not a lump sum cash or line of credit.
The amount of money under the program is up to 1 million dollars. So, whether you need start-up business funding or help growing your business, ‘SBL loans are one solid solution.
4 WAYS TO APPROACH YOUR FUNDING NEEDS
How to approach those solutions? The way we do it with clients at 7 Park Avenue Financial is pretty straightforward:
Understand your current financial position.
Ensure a cash flow or business plan executive summary is available - 7 Park Avenue Financial business plans meet and exceed the requirements of banks and commercial business lenders
Commit time to speak to qualified capital sources.
Pick the financing alternative that is achievable in current circumstances
The U.S. Small Business Administration (Canadian Government SBL ) offers various loan programs and grants that can be crucial for new businesses.
The Canadian Government SBL works with traditional lenders to secure favourable lending terms, making it easier for small businesses to obtain the necessary funding.
Essentially, you want to properly ‘ navigate’ those sometimes complex financing waters.
KEY TAKEAWAYS
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Alternative lending platforms offer flexible solutions for businesses with unique needs.
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Government grants provide non-repayable funds for specific industries or initiatives.
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Equity financing involves exchanging ownership stakes for capital investment.
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Effective cash flow management ensures optimal utilization of available resources.
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Financial institutions, including traditional banks and credit unions, play a vital role in providing business financing, such as loans geared towards small businesses and Canadian Government SBL loans.
CONCLUSION
Business financing options are the lifeblood of entrepreneurial success, fueling innovation and driving economic growth across Canada.
When you understand your current liquidity and capital structure issues you've clearly discovered, you guessed it, the 2nd coming of business financing and corporate funding in Canada.
You can choose to chase those venture capitalists who want an exit strategy, angel investors and family and friends but ultimately you should focus on real-world solutions that will allow you to access business capital that matches your firm's needs.
Call 7 Park Avenue Financial, a trusted, credible, experienced Canadian business financing advisor who can assist you with your funding needs.
FAQ
How can alternative lending solutions benefit my business? They offer more flexible terms, faster approval processes, and innovative funding structures tailored to your specific business needs, making them an attractive option for companies that may not qualify for traditional bank loans.
What are the advantages of equity financing for growing businesses? Equity financing provides access to larger amounts of capital without the burden of debt repayment, brings in experienced investors who can offer valuable guidance and connections, and allows for risk-sharing between the business owner and investors.
What role do government grants play in business financing? Government grants offer non-repayable funds for specific industries, research and development initiatives, or job creation programs, providing valuable financial support without diluting ownership or incurring debt that might otherwise occur with a financial institution such as a bank.
How can effective cash flow management improve my business’s financial health? Proper cash flow management helps optimize working capital in the financial statements, reduce reliance on external financing, improve negotiating power with suppliers, and create a buffer for unexpected expenses or market fluctuations when you need to borrow money.
What are the potential risks associated with various business financing options when you explore business loans? Each financing option carries its risks, including possible loss of control with equity financing via venture capital firms, high interest rates with some alternative lenders, and the possibility of defaulting on loans. It’s crucial to carefully evaluate the terms and conditions of each option and assess your business’s ability to meet financial obligations.
How do international financing options differ from domestic ones for Canadian businesses? International financing options may offer access to larger pools of capital and diverse investor networks. Still, they can also involve currency exchange risks, complex regulatory requirements, and cultural differences in business practices. Canadian businesses should consider these factors when exploring global funding opportunities.
What impact does a business’s industry have on available financing options? Different industries may have access to specialized financing options, such as agricultural loans for farms or film production tax credits for the entertainment sector. Additionally, traditional lenders may perceive some industries as higher risk, making alternative financing options more relevant.
How can businesses improve their chances of securing financing? To increase the likelihood of obtaining financing, businesses should maintain accurate financial records, develop a comprehensive business plan, build a strong credit history, cultivate relationships with potential investors or lenders, and be prepared to articulate their value proposition and growth potential clearly.
What are the latest trends in business financing that Canadian entrepreneurs should be aware of? Emerging trends include the rise of fintech lending platforms, increased focus on sustainable and impact investing, the growing popularity of revenue-based financing models, and the integration of artificial intelligence in credit assessment processes. Staying informed about these trends can help businesses identify innovative financing solutions.
What factors should I consider when choosing between debt and equity financing? When deciding between debt and equity financing, consider your business’s current financial position, growth projections, risk tolerance, and desire for control. Debt financing allows you to retain full ownership but requires regular repayments, while equity financing provides capital without immediate repayment obligations but dilutes ownership.
How can I determine the most suitable financing option for my business’s current growth stage? Assess your business’s financial needs, growth objectives, and market position. Early-stage startups might benefit from angel investors or crowdfunding, while established businesses may find traditional bank loans or mezzanine financing more appropriate. Consult financial advisors to evaluate the best fit for your situation.
What role do credit scores play in accessing various business financing options? Credit scores significantly impact your ability to secure financing and the terms offered. Higher credit scores generally lead to more favourable interest rates and loan terms. However, some alternative lenders place less emphasis on credit scores, focusing instead on factors such as cash flow or business performance.
What are Canadian Government SBL loans and what are their benefits? Canadian Government SBL loans are financing options facilitated by the Government and participating financial institutions through a network of approved lenders. They offer benefits such as lower risk for lenders and specific loan programs like the Canadian Government SBL Loans. These loans can provide businesses with favourable terms and conditions, making them an attractive option for those who meet the qualifications.
