YOUR COMPANY IS LOOKING FOR GOVERNMENT SMALL BUSINESS LOAN FINANCING!
FUNDING FOR SMALL BUSINESSES AND STARTUPS IN CANADA
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
Suite 301
Oakville, Ontario
L6J 7J8
Canada Small Business Financing loans are government-guaranteed loans that assist any Canadian business (including start-ups and franchises) to acquire financing for equipment and leaseholds. For many owners/managers these loans, commonly called an ' SBL ' are a ' bridge ' to financing a business in Canada as well as starting and or growing a firm. Let's dig in.
IS THE GOVERNMENT OF CANADA LOAN PROGRAM COMPLICATED - ASSESSING SMALL BUSINESS GOVERNMENT LOANS
If there is one negative aspect to financing small business and accessing 'SBL' capital it's the perception that many applicants have that the process is long and complicated. In fact, that is not necessarily the case, but it certainly is if you are unprepared and don't know who to talk to and work with. Talk to 7 Park Avenue Financial about applying for the program and your ability to grow the sale of your products and services with financing from the program.
IS A PERSONAL GUARANTEE REQUIRED FOR GOVERNMENT BUSINESS FUNDING
Personal guarantees are part of any business financing in the SME sector. However, the Government small business loan requires only a 25% personal guarantee, which is much more attractive to most entrepreneurs. The caveat here is that the guarantee you do provide on the loan must be backed up with a reasonable personal credit score and some personal equity commensurate with the amount you are borrowing. Here things like ' home ownership 'help out a lot.
The good news about the actual rates, structure, terms, and length (amortization) of the loan is that they are set by the government and are cast in stone, so to speak. So Canadian banks that offer the loan don't have any flexibility in raising rates or changing credit enhancements. That being said though it's our own experience that different banks have different attitudes toward the program, and it’s critical to find a banker that's on side ' with this method of financing. (Sorry, we can't provide names to protect the innocent - but call us!)
The ability to finance leasehold improvements under this loan is also an attractive feature of SBL loans. Note also there is a registration fee equal to 2% of the approved loan amount, that balance cal also be funded as part of the loan. Any company with less than 10 million dollars in sales revenue can apply for the loan.
HOW IS THE GOVERNMENT INVOLVED IN THE SMALL BUSINESS LOAN
As we have inferred Canadian chartered banks run/administer the program for Industry Canada. So contrary to the belief of some, there is never any direct involvement with the government - they are simply sponsors and guarantors of the program. Each year in Canada approx 8000 businesses apply and are approved under the program - which lends anywhere up to $350,000.00 for each loan.
OTHER SOURCES OF CAPITAL WHICH ARE CHALLENGING TO OBTAIN
While many businesses in the SME (small to medium enterprise) sector mistakenly focus on accessing capital from personal resources, friends and family, angels/VC's, etc they more often than not find that there are significant negative aspects to those sources of capital. Canada small business financing government loans are often a more realistic fast track to capital.
TALK TO 7 PARK AVENUE FINANCIAL ABOUT THESE ALTERNATIVE FINANCING SOLUTIONS
When SBL Government business loans aren't feasible don’t forget that numerous other traditional and alternative financing vehicles are available to you - They include:
A/R financing
Inventory finance
Working capital term loans
Non-bank asset-based business lines of credit
SR&ED Tax credit financing
Equipment Leasing/ Sale Leasebacks/Bridge Loans
CONCLUSION
For ' smart ' strategies to the ' bridge to somewhere' as it relates to growing or starting a business seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with accessing the right capital at the right time for a federal government small business loan or other types of business capital for new business financing or growing your established company.
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Stan Prokop
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