YOUR COMPANY IS LOOKING FOR ALTERNATIVE FINANCING SOLUTIONS!
WHAT FORM OF FINANCING SUITS YOUR CHANCES OF SUCCESS IN GROWING 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
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
Unsecured business funding offers vital financial solutions for businesses without collateral.
Unlock the potential of your business with financing that requires no collateral.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Unsecured Business Funding solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
7 Park Avenue Financial: “Canadian Business Financing with the intelligent use of experience”
YOUR GUIDE TO BUSINESS LOANS ( CANADA )
BUSINESS FUNDING SOLUTIONS - CANADA
Business loans and capital funding for Canadian businesses are often ‘ top of mind ‘ for owners/financial managers in the SME sector.
But what are the differences between types of loans, and, even more importantly, is a loan the solution to your financing needs? Let 7 Park Avenue Financial show you the best unsecured business loans to meet your needs.
UNSECURED BUSINESS FUNDING
Securing financing without external collateral can be a game-changer for businesses looking to grow and generate profits.
Unsecured business funding provides companies with the capital they need without the burden of pledging assets. These types of financing are essential for businesses aiming for rapid expansion, maintaining a positive cash flow, and addressing unexpected expenses and short-term obligations.
Talk to the 7 Park Avenue Financial team about how you can leverage your business to boost your business success.
CAN ALTERNATIVE BUSINESS FUNDING SOLUTIONS FILL YOUR BUSINESS CAPITAL FUNDING GAP?
Many small businesses find themselves where cash flow and working capital needs prevent their ability to expand and grow. These days, the good news is that more options are available than ever before vis both traditional financing and alternative capital.
Small business financing loans come in various shapes and sizes, primarily because the world of ‘fintech’ has delivered many new and innovative financing options—even Canadian banks have soldiered into the new world of technology integration in their financing processes and service marketing.
A secured business loan might be a more suitable option for businesses with bad credit or those looking for lower interest rates.
As a business owner, you want to understand the differences between alternative finance and bank financing and ensure the potential availability of many newer types of funding that are less known.
Borrowing for that ‘loan always conjures up Canadian chartered banks as a possible solution to your financing needs. For some reason, medium and small businesses in Canada tend to view the bank as their ‘supermarket‘ for financial needs. However, banks are reluctant to finance start-ups or newer businesses without collateral.
CHOOSING THE RIGHT FINANCE SOLUTION FOR YOUR BUSINESS
Choosing the right finance solution for your business can be daunting.
One important consideration is whether you are willing to provide a personal guarantee, which could put your personal assets at risk in case of default. Various options are available, each with its own set of advantages and disadvantages.
Evaluating your business needs, financial situation, and long-term goals is crucial before deciding.
EQUIPMENT PURCHASE NEEDS?
Remember also that equipment lease financing is an excellent alternative when it comes to equipment and other asset needs (i.e., technology, etc.). No or minimal down payments and favourable amortizations make leasing the chosen provider for almost 80% of all businesses in North America.
NEW METHODS TO FINANCE INVOICES
Most business owners are familiar with invoice financing solutions, which allow your business to cash flow your invoices as you generate sales. But did you know many different types of invoice discounting/invoice financing services exist?
Invoice financing is an unsecured loan that allows businesses to leverage their accounts receivable for immediate cash flow.
Business owners should be aware they are not required to fund all of their invoices - the right type of facility should allow you to utilize selective invoice discounting to fund only the times you wish to fund for the amount of cash you require.
Many business owners do not like the ‘notification’ aspect of factoring receivables. That’s why 7 Park Avenue Financial recommends CONFIDENTIAL RECEIVABLE FINANCE as the best solution - this financing allows you to achieve all the benefits of invoice factoring while billing and collecting your accounts and fully controlling your accounts receivable!
Don’t let the process of understanding how invoice funding works discourage you from this popular working capital solution.
GOVERNMENT BUSINESS LOANS / SMALL BUSINESS LOANS CANADA
Small business loans can be a desirable option for financing a new business. The federal government sponsors programs, such as the Canada Small Business Financing Program that prioritize funding start-up businesses.
Let's get back to that 'start-up ' or early-stage company need. One area the banks do come through is the government's small business guaranteed loan. Ottawa guarantees a large portion of your loan to Canadian banks participating in the program for these business loans in Canada. Each year, billions are funded via this loan. A bank or credit union is usually the financial institution that facilitates the loan.
A reasonable personal credit history and a good credit score are required for any bank loan, including this program. Still, when starting a business in Canada, this is undoubtedly one viable financing option - You can arrange to repay the loan over 2-5 years. This term loan does not finance credit lines, accounts receivable, inventory, etc.
7 Park Avenue Financial prepares business plans for government loans, bank loans, and other commercial lenders that meet and exceed your requirements. Let our team make your search for government loans easier.
Another reason this program is popular is that it only finances two asset categories—equipment and leaseholds. Typically, leasehold improvements are tough to finance, ergo the popularity of the Small business loan. Although Canadian businesses tend to associate ' government ' with red tape and delay, there is NO direct contact with the government—it's all done via your bank.
SR&ED TAX CREDIT FINANCING
For businesses that invest in R&D projects, thousands of firms take advantage of the SR&ED refundable tax credit program. Your SR&ED credit can also be monetized in the form of a bridge loan, eliminating the waiting period for your refund on research and development refunds on the refundable tax credits.
BUSINESS CREDIT LINES TAILORED TO YOUR REPAYMENT NEEDS!
Many businesses are profitable, growing, and sometimes a combo of both.
While owners and financial managers associate finance needs with a ' loan,' in reality, they should look for a business line of credit that satisfies working capital and daily cash flow needs. It's important to know the difference between loans and asset monetization!
Alternative or ‘non-bank lenders offer multiple solutions for ' loan ' needs. These financings include bridge loans, tax credit loans, and asset-based business credit lines that work just like a bank facility - in fact, they are almost always more generous when it comes to borrowing power. They also move... quickly!
Additionally, non-bank and alternative lenders are open to taking on more risk, which means a higher borrowing cost to pay but.. access to more capital funding via the financing of assets for eligible businesses. Support for businesses by asset-based lenders helps thousands of firms every year.
HAVE YOU WASTED TIME ON BUSINESS CAPITAL OPTIONS THAT DON'T MAKE SENSE?
Are you looking to waste some time on business lending? You must be one of those business owners /mgrs focusing on equity or venture capital. The hard reality is that this type of financing is probably only suitable for a couple of thousand businesses in Canada if they are among the millions of small- and medium-sized enterprises.
Crowdfunding
Crowdfunding on platforms such as Kickstarter and Indiegogo can financially boost small businesses. These platforms allow companies to pool small investments from several investors instead of seeking out a single investment source. It is essential to read the fine print of different equity crowdfunding platforms.
However, suppose you can demonstrate hyper-growth and unique products and services. In that case, equity investment is possible, although it’s important to remember that debt (from the right lender) in the form of loans is always cheaper than giving up ownership in your business.
Companies with solid sales and purchase orders or contracts can use PO Financing or Sales Royalty finance solutions. These funds can monetize sales and larger contracts and orders,, and when you've generated receivables, these can also be financed without the necessity of taking on debt via a ' loan. '
KEY TAKEAWAYS
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Business Loans Without Collateral: Understanding that unsecured business funding does not require any asset pledge.
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Qualification Criteria: Knowing what financial health metrics lenders evaluate, such as credit score and business revenue.
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Interest Rates: Grasping the typical range and factors affecting rates for unsecured business loans.
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Benefits: Recognizing the advantages, such as quick access to funds and no risk to assets.
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Application Process: Familiarity with the steps involved in applying and getting approved for unsecured business funding.
CONCLUSION - BUSINESS LOANS & CAPITAL FUNDING SOLUTIONS FOR SMALL BUSINESS FINANCING
Have you exhausted all those ' outliers', such as angel investors, friends and family money investors, etc., for small businesses in Canada?
Are you looking for an interest rate that matches your overall credit quality for the type of financing you require? You may want to talk to our team at 7 Park Avenue Financial.
If you're looking to get properly ' caught up ' with business loans and the different types of capital and funding available to your business, call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can help you take that one of your ' TO DO ' list for your business needs!
Let's get started on the resources you need for growth!
FAQ: FREQUENTLY ASKED QUESTIONS
What is alternative business funding?
Alternative business funding is viewed as business financing that is non-mainstream - Unlike business banking via Canadian chartered banks, many of the new solutions are adjudicated and delivered online, some by complex investments in algorithms made by financial technology lenders, aka ' fintech' - The economic landscape in Canada is now populated by many new commercial lenders, some online.
What is unsecured business funding?
Unsecured business funding is a type of financing that does not require collateral. This means businesses can obtain loans without pledging assets.
How can my business benefit from unsecured loans?
Unsecured loans offer quick access to funds, flexibility in usage, and no risk to personal or business assets, making them ideal for various business needs.
What are the typical interest rates for unsecured business loans?
Interest rates for unsecured business loans vary based on creditworthiness, lender policies, and market conditions but are generally higher than secured loans due to the increased risk.
What qualifications are needed for unsecured business funding?
Lenders typically seek a strong credit score, solid business revenue, and a good financial track record to approve unsecured business loans.
How does the application process for unsecured business funding work?
The application process involves submitting financial documents, undergoing credit checks, and meeting lender-specific criteria. Approval is usually faster compared to secured loans.
What are the risks of unsecured business funding?
While there is no risk to assets, unsecured loans often have higher interest rates and stricter qualification criteria, which impact overall cost and accessibility.
How can I improve my chances of getting an unsecured business loan?
Maintaining a strong credit score, demonstrating consistent business revenue, and preparing thorough financial documentation can improve one's chances of approval.
What are the alternatives to unsecured business funding?
Alternatives include secured loans, lines of credit, merchant cash advances, and crowdfunding, each with different terms and requirements.
How long does it take to get approved for an unsecured business loan?
Approval times vary by lender but typically range from a few days to a couple of weeks, depending on the lender's process and the completeness of your application.
Can unsecured business funding be used for any purpose?
Yes, businesses can use unsecured loans for various purposes, including expansion, inventory purchase, marketing, and covering operational expenses.
How do unsecured business loans compare to secured loans?
Unsecured loans do not require collateral, making them less risky for borrowers but typically more expensive due to higher interest rates than secured loans. In contrast, a secured loan requires collateral, which can result in lower interest rates and more extended repayment periods.
What factors influence the interest rates on unsecured business funding?
Interest rates are influenced by the borrower’s credit score, business financial health, market conditions, and lender policies.
What documentation is needed to apply for unsecured business funding?
Typical documentation includes financial statements, tax returns, business plans, and bank statements to verify financial health and stability.
What Is Business Financing?
For small businesses, finding a suitable funding model is vitally important. If you take money from the wrong source, you may lose part of your company when there is an equity consideration. Even many large-cap companies routinely seek capital infusions to meet short-term obligations. Don't find yourself locked into repayment terms impairing your growth for years. For small business owners in Canada seeking a funding model for the right source is essential for business growth.
Are there unsecured loans for startups?
Unsecured loans are available for startups, though they can be more challenging to obtain. Lenders typically consider the founder's credit score, personal financial history, and the startup's business plan. Some lenders specialize in startup financing and may offer unsecured options, including personal loans, business credit cards, or microloans. Startups might also explore alternative financing options like crowdfunding, angel investors, or venture capital to supplement their funding needs.
