YOUR COMPANY IS LOOKING FOR BUSINESS CREDIT AND FINANCING!
Business Loan & Alternative Finance Solutions
Accessing Commercial Loans 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?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
"Business financing serves as the cornerstone of growth for enterprises at all stages, providing the crucial capital they need to expand, innovate, and compete."
"Struggling to fuel your business growth? Unlock the potential with smart financing solutions tailored for you."
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer CANADIAN BUSINESS FINANCING solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
CANADIAN BUSINESS FINANCING
Business credit and financing solutions in Canada. We saw a headline that screamed out of a U.S. publication indicating that small and medium-sized businesses in the U.S. were in a 'credit squeeze/credit crunch. ' And that got us to thinking, which is simply Latin for 'knowing the cause'! It's almost as if there was a pandemic out there ... and let's not even talk about startup financing.
A CREDIT SQUEEZE?
So we're in Canada... is there a credit squeeze here for the SME (small and medium-sized enterprises) sector... and if so, how can your company eliminate the squeeze and find the right business lender.
UNDERSTANDING THE CASH FLOW CHALLENGE
When it comes to small business financing, it’s about daily operating cash flows and growth financing. How you manage or solicit solutions to those two challenges will ultimately affect your business's long-term success. And without good solutions and information, the short term can be quite painful, might we add! Startup financing is also a huge challenge for many entrepreneurs.
THE ECONOMY AND GLOBAL ISSUES AFFECT YOUR BUSINESS
As a company in the SME sector in Canada, you're vulnerable at a lot of levels... the economy, the crazy things your competitors do, and the fact that these days almost any global issues can almost be biting your firm also! So access to working capital and business credit financing is critical.
FOCUS ON INTERNAL CASH MANAGEMENT ALSO!
Many clients we speak to are immediately always focusing on outside external cash flow financing solutions. The reality is that many of their problems can be fixed by a focus on cash from their own operations. And the last thing most owners want to do is to focus on equity financing, which at its simplest reduces your ownership and long-term equity potential.
ACCELERATING CASH FLOW INTERNALLY!
So how do Canadian small business owners and financial managers address those internal solutions? We recognize it's easier said than done. Still, it's done by focusing on your collections and payment terms, maximizing solutions around electronic payments and business credit cards and managing payables and supplier relations.
But getting back to external solutions now, how can the owner address business credit financing solutions in a manner that makes sense? You do that by identifying which of the three (or perhaps all three) types of financing you need from external sources.
3 TYPES OF FINANCING NEEDS IN CANADA
What are those three types of financing? They are:
Fixed asset financing
Working capital financing
Growth financing
SOME KEY FINANCING CREDIT ALTERNATIVES
Numerous external solutions via a business loan exist for all those three types of financing you need to be successful in Canada. Those solutions include private lending for business via various alternative lenders as well as traditional commercial finance solutions -
Bank Loans For Businesses - line of credit/term loan
Receivable financing facilities - With invoice financing, a business can get cash flow while waiting for customers to pay their outstanding invoices.
Working capital solutions
Non-bank asset-based lines of credit - Asset-based lending involves using assets as collateral for a loan - Alternative lending options have less strict credit requirements and more flexible terms.
Leasing and sale-leaseback solutions
Tax credit monetization and securitization
Short-term working capital loan/merchant cash advance -A merchant cash advance / short-term working capital loan is a form of quick capital that should be used as a last resort due to its high expense.
Government Loans
Purchase Order Finance -Small businesses find a challenge in locating financing, but by choosing purchase order financing they can grow their business without increasing bank debt
And remember, under all of those solutions, you are not giving up equity.
GOVERNMENT LOANS IN CANADA
Bank business loans are a challenge to access. Still, they don't forget the government Small Business Loan Program, a great program for business capital for assets and leaseholds up to a maximum of $ 1,100,000.00. B D C loans are also available if you meet this crown corporation's credit requirements. At 7 Park Avenue Financial, we prepare strong loan packages, including business plans for our clients.
BUSINESS FINANCE SOLUTIONS - STARTUP LOANS
There are many different ways to finance your startup, and it can be difficult for entrepreneurs to figure out which one is best. Let's take a look at some popular options in Canada. We'll take a deep dive into government loans, traditional lenders, angel investors, crowdfunding, and more.
- Government Loans: Due to a lack of private lenders in Canada, government loans are the most common way for startups to get financing. There are many different programs available from various levels of government, including provincial governments and municipal governments that entrepreneurs can apply for with their business plans.
There are many ways to finance a startup business without resorting to traditional banks.
Factoring is when one company sells its accounts receivable (or invoices) at a discount for cash up-front.
If you're a small business owner that's looking to raise funds for your company, then it can be difficult if you opt to explore traditional routes. Banks have rigorous requirements when approving loans and therefore finding an alternative can help with the credit requirements and offer flexible terms that will suit individual needs.
Another reason one should consider going this route instead of exploring other avenues would be because the application process is faster than ever before; skipping out on waiting periods has never been easier thanks to these new lenders making their way into today’s financial world.
SUMMARY OF VARIOUS BUSINESS FINANCING SOLUTIONS FOR YOUR BUSINESS
Receivable Financing/ Securitization
Inventory Finance
Equipment Leasing
Supply Chain/PO finance
Bridge Loans
Canadian Chartered Bank Facilities
ABL Asset Based Lending
Royalty Financing
Tax Credit Monetization
Cash flow loans
Subordinated Debt
Government Business Loans Canada - Intangible assets can be funded under this program ; as well as leasehold improvements
KEY TAKEAWAYS
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Types of Business Loans: Understanding the different financing options, such as term loans, lines of credit, and Canada Small Business Financing Program government loans, helps businesses select the right type for their needs. A limited personal guarantee is a feature of the program as well as a tailored amortization period
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Equity Financing: This involves exchanging a portion of ownership for capital, crucial for businesses avoiding debt.
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Credit Assessment: Knowing how creditworthiness is evaluated can help businesses improve their chances of loan approval.
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Interest Rates and Terms: Awareness of how rates and terms affect the total cost of financing is vital for financial planning and generating profitable revenue
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Financial Planning for Businesses: Effective financial strategies ensure businesses can affordably manage their financing and growth.
CONCLUSION - HOW TO CHOOSE THE RIGHT FINANCING FOR YOUR NEEDS AROUND BUSINESS CREDIT FINANCING SOLUTIONS
So, are we in a small business credit squeeze in Canada in the SME sector? We'll let the economists and business pundits argue out that one as they always do... instead, focus on internal and external solutions that make sense for your loan request, the Canadian business owner and financial manager.
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor on eliminating that credit squeeze for Canadian small businesses looking to grow and providing solid business advice - Let's get started.
FAQ: FREQUENTLY ASKED QUESTIONS
How does understanding different types of business loans help me choose the right one from an alternative lender or traditional lending institution? Knowing the differences in loan types can guide you to the most suitable option based on your business's financial situation, growth stage, and specific needs.
What are the advantages of equity financing over debt financing?
Equity financing does not require regular repayments and can provide valuable networking and mentoring from investors, which is beneficial for startups and growth-stage companies.
How can I improve my chances of getting approved for business financing?
Enhance your creditworthiness by maintaining strong business financials, preparing detailed financial forecasts, and having a clear business plan.
What should I consider when evaluating interest rates and terms of a loan?
Assess the total cost of the loan from commercial lenders or financial institutions, including fees and the interest rate, lump sum payments, and early repayment and consider how the repayment terms fit with your business's cash flow and financial planning.
Is there a benefit to choosing a shorter loan term over a longer one?
Shorter loan terms typically have higher monthly payments but lower total interest costs, which can save money throughout the loan if cash flow allows.
Can poor personal credit affect my business financing options?
Yes, poor personal credit can limit your financing options for loan approval, as lenders often consider personal credit history, especially in smaller or newer businesses that are borrowing from a financial institution
What are some common mistakes businesses make when seeking financing?
Common mistakes include underestimating the amount needed, not reading the loan terms carefully, and lacking a solid business plan or financial projections, which can lead to unsuitable financing choices or rejection.
How do interest rates affect business financing?
Interest rates directly influence the cost of borrowing; lower rates reduce the cost and are ideal, but they often require excellent credit or collateral.
What impact does business financing have on business growth?
Proper financing allows for expansion, operational improvements, and market competitiveness, thereby facilitating accelerated growth and stability.
Are there alternative financing options if traditional loans are not feasible?
Yes, alternatives like peer-to-peer lending, merchant cash advances, and invoice financing provide flexible, albeit sometimes costlier, solutions for businesses unable to secure traditional loans.
