YOUR COMPANY IS LOOKING FOR THE BEST CANADIAN BUSINESS FINANCING SOLUTIONS!
CAPITAL FUNDING & BUSINESS FINANCING OPTIONS
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
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Email = sprokop@7parkavenuefinancial.com
"The best way to predict the future is to create it." - Peter Drucker
Smart business owners recognize that good business financing isn't about surviving – it's about thriving in an increasingly competitive marketplace.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Business Funding and working capital solutions to secure funds – Save time, and focus on profits and business opportunities
7 Park Avenue Financial: “Canadian Business Financing with the intelligent use of experience”
INTRODUCTION - CANADIAN BUSINESS FINANCE SOLUTIONS
Canadian business financing ' ain't ' easy! So, what’s the secret to success in funding and accessing the right company loans?
FINANCIAL STRAIN TO BUSINESS GAIN!
Are mounting business expenses keeping you awake at night? Many Canadian business owners struggle with limited working capital, which prevents expansion and stunts growth.
Let the 7 Park Avenue Financial team help your company transform these challenges into opportunities, providing tailored funding solutions that align with your business objectives.
Preparation: The Key to Funding Your Business with a Business Financing Company
Abraham Lincoln? While we’re pretty sure he wasn’t referring specifically to the Canadian Business Finance challenge and lending for businesses, he is credited with the following: ‘ Give me 6 hours to chop down a tree, and I will spend the first 4 sharpening the axe ‘.
That’s his guidance for approaching the challenge of anything, including business finance, with a ‘ sharpened axe’ - i.e., preparation! Let’s dig in.
Understanding terms like the amortization period, which refers to the time over which loan payments are spread, is crucial for effective financial planning.
While Lincoln was, in fact, a woodcutter early in his life, he used this saying as a metaphor for anything we undertake in business (or life?). That includes understanding and dealing with business lenders, we think!
UNDERSTANDING THE TRADITIONAL AND ALTERNATIVE BUSINESS FINANCE LANDSCAPE IN CANADA
Canada’s business finance landscape offers diverse traditional and alternative financing options for small businesses.
Financial institutions like banks and credit unions typically provide traditional financing options, such as term loans and lines of credit. These options often require a solid credit history and a well-established business plan to secure favourable interest rates and terms.
On the other hand, alternative financing options, including crowdfunding, invoice financing, and peer-to-peer lending, have emerged as viable solutions for businesses that may not meet traditional lenders' stringent criteria.
These alternatives can offer more flexible eligibility requirements and faster access to funds, though they may come with higher interest rates and fees.
Understanding the different financing options available can help small businesses make informed decisions about their financial needs and choose the best path for growth.
UNDERSTANDING THE TRADITIONAL AND ALTERNATIVE BUSINESS FINANCE LANDSCAPE IN CANADA
How should business owners/ financial managers approach their business's capital and cash flow challenges? It is important to understand the business finance landscape or work with someone who does!
In addition to tangible assets like real estate and equipment, intangible assets such as intellectual property can also be crucial in securing financing.
WHAT PERCENTAGE OF BUSINESS FINANCING REQUESTS ARE DECLINED BY FINANCIAL INSTITUTIONS?
While Canadian banks might tell us in their TV commercials that they are competitive, they enjoy the next best thing to a monopoly.
Thousands of small and medium (SME) firms experience difficulty accessing financing. Some experts tell us that almost 50% of all business financing requests are rejected or not correctly completed. In some cases, buying a business might be a question of a loan.
Many business loans require a personal guarantee, which means the business owner must personally back the loan. This adds an extra layer of security for the lender.
Here’s where Honest Abe’s tool sharpening comes in. In our case, it’s all about knowing your alternative sources of finance.
Numerous forms of alternate finance solutions are available for firms with assets, sales, and growth opportunities—even struggling small businesses have funding alternatives.
UNDERSTANDING YOUR BUSINESS LOAN OPTIONS
Regarding business loans, several options for credit approval are to be considered, each tailored to different financial needs versus new owner/equity financing.
Term loans provide a lump sum of money upfront, repaid over a set period with interest. This type of loan is ideal for significant investments or long-term projects.
Lines of credit, in contrast, offer access to a pool of funds that can be drawn upon as needed, providing flexibility for managing cash flow via accounts receivable / inventory finance and unexpected expenses.
Invoice financing allows businesses to borrow against outstanding invoices, providing immediate cash flow without waiting for customer payments.
Equipment financing is another specialized option, offering funds specifically for purchasing equipment, which can be crucial for operational efficiency and growth.
When choosing a business loan, it’s essential to consider factors such as interest rates, repayment terms, and associated fees to ensure the financing solution aligns with your business needs and financial goals.
ASSESSING YOUR BUSINESS’S FINANCIAL HEALTH
Assessing your business’s financial health is crucial before applying for a business loan. This involves thoroughly reviewing your cash flow, average monthly sales, and profit margins. Healthy cash flow is essential for repaying a business loan, while strong profit margins indicate a viable and sustainable business model.
Additionally, reviewing your business’s credit history is vital. Ensuring that your credit report is accurate and up-to-date can significantly impact your ability to qualify for better interest rates and terms.
Understanding your financial position can help you make more informed decisions and improve your chances of securing the necessary funding.
CANADIAN BUSINESS LOANS AND FINANCING SOLUTIONS
A/R Financing - one of the most popular and utilized alternative lending solutions
Inventory Loans
Equipment Leasing & Financing / Asset leasebacks
SR&ED Tax Credit Financing
Business lines of credit that are revolving and ‘non-bank.’ - Collateral loans
Purchase Order Financing
Bridge Financing
Sales / Royalty Finance
BDC Bank financing - BDC loans and financing
Unsecured cash flow loans - small business cash flow solutions
Short-term working Capital Term Loans / Merchant Cash Advances typically have terms of 12-24 months and are tailored to your cash flow and immediate business goals
A 2% registration fee based on the loan amount is typically required for term loans and lines of credit, which can be financed as part of the overall loan.
Government Small Business Loans—The Canadian Federal Government Small Business Financing Program / CSBF Small Business Loan—The Canadian Small Business Financing Program offers established businesses and startups term loans with a longer amortization schedule for asset categories such as equipment, leasehold improvements, and real estate.
Regarding access to funding, small businesses in Canada can rely on government loans in Canada and potential grants for certain financing needs
One example? During COVID-19 in 2020, the government pioneered the BCAP Business Credit Availability program.
Loans from participating financial institutions such as Canadian banks or credit unions are available.
This type of loan requires a good credit score or personal credit history. Given the challenges of starting a business in Canada, low-interest business loans are the best option for many firms, including financing a franchise or startup.
Business loan interest rates from SME small business lenders will vary based on the type and amount of financing you secure.
Whether it comes from traditional financial institutions or an alternative finance firm - given that alternative financing rates are generally higher - it becomes a question of access to capital versus the cost of capital when it’s a question of lending for small businesses in the SMB market.
DO YOU NEED A BUSINESS PLAN FOR FINANCING LOANS?
A business plan is often required to apply for a business loan for certain types of funding. 7 Park Avenue Financial business plans meet and exceed bank and lender requirements when it comes to financing small businesses.
The business owner/finance manager needs to spend some time understanding the mechanics of delivery of the above solutions that might pertain to their specific funding needs. Traditionally, alternate finance providers can act more quickly and assess lending decisions with a focus on faster approval.
Other industry stats also indicate that businesses often approach only the one bank they are dealing with. It's therefore important to understand who other providers are—the bottom line is: “Don't give up!”
PREPARING FOR A BUSINESS LOAN APPLICATION
To prepare for a business loan application, you must gather several key documents, including your business plan, financial statements, and tax returns.
Understanding your business’s financial needs and goals clearly is also essential. A well-prepared application demonstrates to lenders that you are organized and serious about your business’s success.
Having a solid credit history and a well-established business plan is also beneficial. Consider working with an account manager or financial advisor to help you prepare your loan application.
Their expertise can ensure that your application is complete and accurate, increasing your chances of approval and securing the best possible terms.
KEY TAKEAWAY
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Understanding credit requirements forms the foundation of successful financing applications
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Cash flow analysis determines lending capacity and repayment terms
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Collateral options significantly impact available financing solutions
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Documentation preparation accelerates approval processes
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Interest rate structures define long-term cost implications
CONCLUSION - CANADIAN SMALL BUSINESS FINANCING LOAN IS JUST AROUND THE CORNER
In conclusion, understanding the traditional and alternative business finance landscape in Canada is crucial for small businesses.
By assessing your business’s financial health, understanding your business loan options, and preparing for a business loan application, you can make informed decisions about your financial needs and secure the funds you need to grow and succeed.
Preparation is key to navigating the complex world of business financing and unlocking new business opportunities.
Whether it's the Canada Small Business Financing program or non-bank alternative lines of credit, let our team share the funding possibilities you've been looking for - Limited business financing access should not prevent your company from growing sales of your product and services.
When it comes to getting a small business loan, let our team help.
So, our ' big secret ' in Canadian business finance is effortless - take the time
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you in your funding needs.
FAQ
What documentation do I need to apply?
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Business registration documents
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Last 6 months' bank statements
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Tax returns
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Financial statements
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Business plan (for larger amounts)
What credit score do I need for small business loans?
Most business financing companies require a minimum credit score of 650, though some alternative lenders may accept lower scores with stronger business performance.
What makes a business financing company different from traditional banks?
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Faster approval processes
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More flexible lending criteria
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Customized financing solutions
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Specialized industry expertise
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Direct access to decision-makers
How can business financing accelerate your company's growth?
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Immediate access to working capital
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Ability to seize market opportunities
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Equipment modernization options
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Inventory expansion capabilities
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Strategic acquisition funding
What types of financing solutions are available?
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Term loans
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Lines of credit
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Equipment leasing
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Invoice factoring
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Merchant cash advances
How does the application process work?
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Initial consultation
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Documentation submission
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Credit assessment
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Proposal presentation
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Funding disbursement
What are the advantages of working with a specialized business financing company?
How do you determine the right financing amount for your business?
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Analyze current cash flow
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Project future revenue
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Consider seasonal variations
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Calculate debt service ratio
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Review growth objectives
What documentation improves approval chances?
Can startups qualify for business financing?
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Different options available
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Credit requirements vary
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Collateral considerations
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Industry-specific programs
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Alternative lending solutions
How long do financing terms typically last?
What affects interest rates and terms?
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Credit history
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Business performance
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Industry type
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Collateral quality
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Market conditions
How does business financing impact cash flow management?
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Improves working capital
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Stabilizes seasonal fluctuations
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Enables growth investments
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Optimizes payment timing
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Reduces financial stress for owners and financial managers
What role does credit history play in financing approval?
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Influences interest rates
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Affects available options
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Impacts required collateral
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Determines approval speed
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Guides term structure
What makes a strong financing application?
