YOUR COMPANY IS LOOKING FOR BUSINESS FUNDING!
SMALL BUSINESS LOANS / 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
"The best time to get business funding is before you need it." - Warren Buffett
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Business Funding 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”
Creative Business Funding: Financing Solutions
Business funding in Canada. On more than one occasion, we have remarked that the business capital landscape has dramatically changed over the last number of years for business owners seeking business capital.
Let’s dig in on some innovative business funding solutions and business support programs we can help you with today, including access to small business funding by the government.
Frankly (perhaps it’s because we’re getting older?!), we can barely remember the days when sources of business finance options seemed almost unlimited. Everyone said, ‘There is too much capital and too few deals.
Starting a business is even more challenging than ever, making funding challenges even more pressing — thus, the need for ‘ creative financing. ‘
FROM A FINANCIAL STRUGGLE TO BUSINESS FINANCE SUCCESS
Your company needs good financing for growth and survival. If traditional funding can't be accessed, talk to the 7 Park Avenue Financial team about the full spectrum of alternative and traditional financing to secure the capital your business needs.
DID YOU KNOW?
- 26% of Canadian businesses cite access to funding as their biggest challenge
- Alternative lending grew 300% in the past 5 years
- 68% of small businesses seek funding under $250,000
- Online lenders approve 56% of applications vs. 27% for traditional banks
WHAT ARE THE TYPES OF CANADA BUSINESS FINANCING / LOANS / BUSINESS GRANTS
The funding options available for private companies vary based on whether they are debt or equity financing or cash flow financing solutions.
Companies unable to access private equity and venture capital focus on debt financing and asset monetization of business assets.
Sometimes, entrepreneurs will focus on a business start-up grant or seek loans to buy a business in Canada.
Note that ‘ grant writing how to ‘ requires familiarity with this type of funding. These funding options also support economic development activities such as financing small businesses and workshops to enhance business skills.
CANADIAN GOVERNMENT FUNDING / TAX CREDIT FINANCING AND BANK SOLUTIONS
The Canadian government offers a variety of funding programs designed to support businesses in their growth and development.
These programs can be effectively combined with traditional bank solutions to create a comprehensive financial package tailored to businesses' needs.
By leveraging government funding and bank solutions, businesses can access the capital required to invest in their operations, expand into new markets, and create jobs. This dual approach provides the necessary financial support and fosters a stable environment for business growth and regional economic development.
Yes, the government and banks seem to have a party line about trying to help. While interest rates are improving, the amount of funding, either traditional or in the area of ‘ creative financing,’ seems somewhat limited to the Canadian business owner or financial manager.
Starting a business in Canada with the Government Of Canada Small Business Financing Program is a solid method to achieve funding success. It is the equivalent of the U.S. ‘ SBA loan ‘, which many business people are aware of. This program is designed to support small businesses alongside larger entities, providing essential funding options.
This program is also excellent for financing a franchise in Canada and is used by thousands every year. Opening a restaurant in Canada, especially during COVID-19!.. is another major use of the Small business loan program.
The business owner’s good credit and personal credit history is key to acquiring traditional financing and is important but less so in alternative finance. Interest rates often focus on the owner’s personal credit and your business’s overall business credit profile.
At 7 Park Avenue Financial, we emphasize proper financing statements and cash flow projections with our clients. While some business owners pursue business grants, we focus on loans and finance solutions for small businesses.
We think the banks and the government would say that the amount of funding solutions out there is still the same. The reality is that they are harder to get approved for, at least for the amount of capital you need.
So, where does the business owner/manager start? Let’s explore some more creative ways to fund your business, whether you are a start-up or an established company.
Of course, start-up businesses seem to have the biggest challenge. They are typically funded via a ‘ bootstrapping’ method involving savings, home collateral, and loans from friends and family. These methods all work, but they are just not that desirable!
Naturally, not being aware of the other, more traditional or creative ways to fund your business hampers your chances of success, let alone growth. You need the right amount of debt and the right amount of equity to make things work.
HAVE A PLAN - BUSINESS PLANS!
Many businesses start without a plan, and in business, that is the ' business plan. ‘ We always tell clients that even if they don't need a plan for financing purposes (you usually do, though!), they should have their own ' flight plan ' in place for their business, and that document does just that!
Writing a business plan is a challenge and is time-consuming. 7 Park Avenue Financial business plans meet and exceed banks and other commercial lenders' requirements.
Naturally, when we talk to clients about additional financing, they are often focused on ' the bank. ‘ The challenge here is that while our Canadian banks are pretty good at funding businesses for growth, they aren't that great at financing early-stage companies.
That always comes back to the bank's vested interest in preserving capital. So when you can't correctly demonstrate a track record, the right amount of sales and profitability, or external collateral, what in fact are some alternatives for business funding?
One method is the Government Small Business Loan, aka ' CSBFP, 'which we've always thought isn't really that small—i.e., the borrowing limit is 350k, and in some cases, the loan cap is 1 million dollars. It's available all across Canada, and the criteria for small business funding from the government are much looser than traditional bank financing.
Unlike traditional collateral loans, these loans require only a limited personal guarantee and no external personal collateral.
TAX CREDITS AND INCENTIVES
Tax Credits for Business Innovation
Tax credits and incentives play a significant role in supporting businesses’ innovation efforts. These tax credits can help offset the costs associated with research and development and other business activities.
By utilizing tax credits and incentives, businesses can reduce their tax liability, improve their cash flow, and reinvest in their operations.
The Canadian government offers several tax credits and incentives, including the Scientific Research and Experimental Development (SR&ED) tax credit specifically designed to support businesses in their innovation endeavours.
These financial benefits encourage businesses to pursue innovative projects and maintain a competitive edge.
CANADIAN BUSINESS FINANCING SOLUTIONS - TOP SOURCES OF CAPITAL AND BUSINESS LOANS FOR BUSINESS OWNERS
A/R Financing
Inventory Loans
Access to Canadian bank credit
Non-bank asset-based lines of credit
SR&ED Tax credit financing - sr&ed tax credits are a solid way to recoup research and development costs
Equipment / fixed asset financing - financing equipment and equipment loans for assets and technology required in the business
Cash flow loans
Royalty finance solutions
Equity Credit Lines - You lend your business the funds on a secured basis
Business Credit Cards
Loans from Angel investors
Reverse takeovers of a public shell
Royalty and Revenue Sharing
Vendor financing - Supplier financing is a tested and true source of credit and comes with no additional financing costs.
Venture Capitalists / Venture Capital Funding
Business Incubators
Note that business loan interest rates vary with the type and amount of financing you are accessing and whether it's a traditional or alternative lender.
FACTORING AND THE BENEFITS OF FINANCING SALES VIA ACCOUNTS RECEIVABLE FUNDING
If we had to pick the most traditional method of ' alternative financing ' in business loans today, we would have to say it's factoring or receivable financing.
Thousands of businesses use it to stabilize and generate ' lumps' in your cash flow. It covers short-term emergencies, lowers receivables and increases cash. Whether you are a new business or an established and growing a/r, financing works and finances your sales revenues.
KEY TAKEAWAYS
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Credit fundamentals drive approval decisions.
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Cash flow proves repayment ability
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Collateral reduces lender risk
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Industry experience matters significantly
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Financial documentation quality impacts terms
CONCLUSION - TRANSFORM YOUR BUSINESS WITH FLEXIBLE FUNDING
Our bottom line is that small business funding and business funding for startups is always a challenge for entrepreneurs, and raising money for a business requires specific expertise.
There are numerous traditional and alternative financing sources and business loans that the business owner may not even know about small business funding and different funding options.
If you want help for small businesses and business funding in Canada, speak to 7 Park Avenue Financial, a trusted, experienced and credible Canadian business financing advisor who can assist you in business loans ( Canada ) and solve the Canada business funding conundrum!
Whether you are an established company or looking for business funding to grow your business or startup ideas, let our team help. Our goal is to provide fast and straightforward business funding for your business needs.
FAQ
How does business funding accelerate growth?
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Enables rapid expansion opportunities
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Allows bulk inventory purchases
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Supports hiring key personnel
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Funds marketing campaigns
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Improves cash flow management
What makes alternative funding better than traditional loans?
How can proper funding improve operations?
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Modernizes equipment
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Optimizes inventory levels
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Enhances hiring capabilities
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Strengthens supplier relationships
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Enables competitive advantages
What documentation is typically required?
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Business plan
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Financial statements
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Tax returns
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Bank statements
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Credit reports
What factors affect funding approval?
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Business credit score
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Time in business
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Monthly revenue
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Industry type
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Collateral availability
What are the main types of business funding?
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Traditional bank loans
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Alternative lending
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Equipment Financing
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Invoice factoring
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Merchant cash advances
What are business grants and grant funding in Canada?
Business grants and grant funding are essential tools to support businesses across various industries and sectors.
These grants can fund specific projects or activities, such as research and development, marketing and advertising, and employee training.
To qualify for business grants and grant funding, businesses must meet specific criteria, including being a small or medium-sized enterprise (SME), located in a specific region, or operating within a particular industry. By securing these grants, businesses can reduce their financial burden and focus on strategic initiatives that drive growth and innovation.
Is Funding Available for for Domestic and International Market Expansion?
Market expansion is a critical business strategy for growing and increasing revenue streams. The Canadian government provides various funding programs to support businesses in expanding into domestic and international markets. These programs offer financial assistance for market research, trade missions, and export marketing. By taking advantage of these funding opportunities, businesses can explore new markets, boost their sales, and contribute to job creation. This support is crucial for companies looking to establish a presence in new regions and compete globally.
