YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE 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 Address = sprokop@7parkavenuefinancial.com
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Business Financing Options and solutions for 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 Finance Options in Canada
Introduction
Business financing challenges in Canada require the owner/financial manager to constantly be alert for finance and funding options that ' beef up ' your firm's ability to successfully run and grow the company. Let's dig in.
Traditional Financing Methods
Asset Finance
Asset finance options are a common tool for raising funding and capital. The loan amount can significantly impact the terms of asset finance.
Why? Simply because, in times gone by, companies in the SME sector didn’t necessarily have the options available today because of their size. An amortization schedule is crucial for forecasting cash flow and understanding borrowing capacity.
Bank Business Loans
That’s the essence of the current ‘fintech’ revolution in Canada - allowing many commercial finance firms to be the bank alternative.
If your firm does qualify for bank financing, you can borrow money at low rates with maximum flexibility.
Financial institutions play a crucial role in providing loans to small businesses.
Engaging with these institutions and consulting with financial officers can help secure the specific financing needed, such as through the Canada Small Business Financing Program.
Alternative Financing Options
Equity and Quasi-Equity Financing
Of course, there are equity venture capital firms or quasi-equity-related forms of financing to raise capital. Still, we’re often the first to point out that they are for the smallest percentage of businesses in Canada.
Should you wish to check them out, those options include convertible debt, securitization, Crowdfunding, Peer-to-peer funding, angel investments, private equity, etc.
Intangible assets can be crucial in securing financing options, as they are often included with physical assets like equipment and real property. Their significance extends to broader financial strategies for businesses, enhancing eligibility for various funding sources.
The key takeaway here is that in some limited cases, a capital equity injection might make sense. They don’t often don’t, though, as many firms can’t demonstrate the earning power, market position, and financial reporting consistency required in these forms of funding.
Canadian Small Business Financing Program
Although many business people are against the concept of govt intervention in business, we’re also the first to say ‘feel free to intervene when it comes to 2 great Govt financing programs in Canada.
The Canada Small Business Financing Program (CSBFP) facilitates small business loans by sharing lending risks with a participating financial institution. The CSBFL program provides government-guaranteed loans up to $1,000,000.00 if your firm requires financing for new assets or equipment leasehold improvements.
Canada Small Business Financing offers key benefits such as loan guarantees and eligibility for previous purchases.
The Canadian SR&ED program also refunds billions annually to thousands of firms who apply to recapture their R&D capital investment. Key Point: SR&ED refundable tax credits can also be financed while waiting for your refund.
Potential users are advised to consult a bank advisor for detailed information about the Canadian Small Business Financing Program.
Understanding Your Business Lifecycle
We often ‘ preach ‘ to clients the importance of understanding the specific stages of their company's life cycle and the risks and opportunities that come from leveraging more via a business loan.
Loan options are available for existing businesses, supporting growth for start-ups and established companies, particularly in Black entrepreneurship. It is crucial to determine how much financing is needed based on specific business needs to avoid potential cash flow issues or taking on excessive debt.
Financing Options For Business Growth
Where did all these somewhat newer financing alternatives come from? We’re talking about:
A/R Financing
Inventory Loans
Franchise Loans
Tax Credit Financing
Asset-based non-bank lines of credit
PO Financing
Royalty financing
Sale leasebacks
Working capital term loans / Merchant cash advance loans
Real property is also eligible for financing programs, often considered alongside leasehold improvements and intangible assets.
Additionally, real property improvements, like leasehold improvements and equipment, are a significant category for eligible purchases in various financing programs.
The Rise of Fintech
The answer seems always to come back to the 2008 global financial crisis. Many banks and insurance companies who traditionally funded businesses withdrew from many business finance market segments. Enter the Fintech revolution!
Challenges with Traditional Bank Lending
Many firms face problems with traditional bank lending and loan criteria because they can’t satisfy some of the bank’s criteria.
Financial institutions play a crucial role in the loan approval process, and engaging with financial officers can be essential to secure funding. Ironically, high-growth firms are often punished by bank lending criteria as profits and cash flow targets are more demanding to pin down.
Lines of credit can cover working capital costs, and lenders may require security on various business assets when financing these costs.
Key Takeaways
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Working capital management: Understanding and optimizing cash flow cycles
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Collateral assessment: Leveraging assets effectively for secured financing
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Credit profile enhancement: Improving creditworthiness for better terms
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Government program utilization: Maximizing benefits from available public funding
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Alternative lending landscape: Exploring non-traditional financing sources
Conclusion
If you're focused on addressing the business financing options available today and into the future, call 7 Park Avenue Financial, a trusted, credible, experienced Canadian business financing advisor who can assist you with financing solutions for your cash flow and debt needs.
FAQ
What are the advantages of exploring diverse business financing options?
Exploring diverse business financing options provides flexibility, potentially lower costs, and access to funding that aligns with your specific business needs and growth stage.
How can alternative financing methods improve my business's cash flow?
Alternative financing methods like invoice factoring or revenue-based financing can provide immediate cash flow, allowing you to manage expenses and invest in growth opportunities without waiting for customer payments.
Why should I consider government financing programs for my business?
Government financing programs often offer favourable terms, lower interest rates, and additional support services, making them attractive for eligible businesses looking to expand or innovate.
What benefits does asset-based lending offer compared to traditional loans?
Asset-based lending allows you to leverage your business assets for financing, potentially providing higher loan amounts and more flexible terms than traditional loans, focusing primarily on credit history.
How can equipment financing help my business stay competitive? Equipment financing enables you to acquire necessary technology or machinery without a large upfront investment, helping you remain competitive and efficient while preserving working capital for other business needs.
What types of collateral are typically accepted for business financing?
Typical forms of collateral include real estate, inventory, accounts receivable, equipment, and sometimes intellectual property. The type and value of collateral often influence the financing terms offered.
How long does the business financing application process usually take?
The application process duration varies depending on the financing type, lender, and financial reporting requirements. Traditional bank loans may take several weeks, while alternative lenders can approve applications within days or hours.
Are there financing options available for businesses with poor credit?
Yes, financing options exist for businesses with poor credit, such as asset-based lending, invoice factoring, or specific alternative lenders. However, these options may come with higher interest rates or fees.
What documents are typically required when applying for business financing?
Commonly required documents include business and personal tax returns, financial statements, bank statements, business plans, and detailed information about the intended use of funds.
How does equity financing differ from debt financing?
Equity financing involves selling a portion of your business ownership in exchange for capital, while debt financing involves borrowing money that must be repaid with interest. Each has different implications for control and financial obligations.
What factors should I consider when choosing between different business financing options?
Consider factors such as the cost of capital, repayment terms, impact on cash flow, collateral requirements, and how the financing aligns with your business goals and growth stage.
How can I determine the right amount of financing for my business needs?
Assess your current financial situation, growth projections, and specific funding needs. Create detailed financial forecasts and consult a Canadian business financing advisor such as 7 Park Avenue Financial to determine the appropriate financing amount.
What are the potential risks associated with different business financing options?
Risks can include overextending your business's debt capacity, losing control of your company with equity financing, or facing cash flow challenges with specific repayment structures. Each financing option carries its own set of potential risks that should be carefully evaluated.
