YOUR COMPANY IS LOOKING FOR CASH FLOW FINANCING!
SMALL BUSINESS SHORT TERM WORKING CAPITAL 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
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
"Tired of hearing 'no' from your bank? Alternative Business Banking could be your 'yes' to success."
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Alternative Business Bank Financing 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”
ALTERNATIVE BUSINESS BANKING IN CANADA
Some might not consider business banking cash flow alternatives ‘exciting’, but to others, they are critical.
One key benefit of alternative business bank accounts is the convenience of setting up an account online without the need for an in-person visit.
We’re the first to admit financing your company might not have the excitement John Hetherington had on Jan 15th, 1797 (He invented the top hat and wore it on the street - women fainted, dogs yelped, he was charged with ‘breaching the peace’).
BREAK FREE FROM TRADITIONAL BANK RESTRAINTS
Canadian business owners know the potential rigidity of traditional banking, which can often fail to suit their business needs.
Along with long approval times, complex paperwork and terms that most companies can't meet can stifle business growth- Let the 7 Park Avenue Financial team show you innovative funding solutions in alternative funding.
3 Uncommon Takes On Banking Alternatives
- Due to specialized industry knowledge, Alternative Business Banking often leads to stronger business relationships than traditional banking.
- The data analytics in alternative lending can predict business success more accurately than traditional credit scores.
- Alternative lenders frequently become de facto business advisors due to their deep involvement in specific industries.
CASH FLOW IS ( ALWAYS) KING
Nevertheless, if you buy into ‘cash flow’ being king in business, discussing some business banking alternatives around the ‘ business bank ‘ challenge is prudent.At Park Avenue Financial, business owners explore everything from venture capital to a business credit card to finance their firms!
Business accounts, available through traditional banks and fintech companies, offer various options for managing financial needs, including features like multicurrency management and fee waivers.
Business credit solutions such as commercial non-bank financing and alternative lines of credit via asset-based lending facilities might be your solution. Let’s dig in.
IMPORTANCE OF ACCOUNTS RECEIVABLE MANAGEMENT / FINANCING WITH FINANCIAL INSTITUTIONS
Accounts receivable is a key component of any business that sells on credit. The right financial institution is crucial for effective accounts receivable management and financing.
When an actual bank business line of credit is not achievable for a business (there are MANY reasons!)
A/R finance, a subset of asset-based lending, is a solid alternative. The simple way to explain it is getting an immediate advance on your sales and paying a ‘commission’ for that financing benefit.
FINANCING THE BALANCE SHEET
Financial institutions view your A/R as an ongoing asset on the balance sheet.
Based on your end-of-the-previous month A/R, you can typically create an ongoing borrowing facility of 80-90% of the value of your (less than 90 days old) receivables.
HOW DOES A/R FINANCE (aka ‘FACTORING’) WORK?
A/R finance, also known as factoring, is a type of financing that allows businesses to receive immediate payment for outstanding invoices. Here’s how it works:
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Sell Invoices: A business sells its outstanding invoices to a factoring company at a discounted rate.
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Collection: The factoring company then collects payment from the customers listed on the invoices.
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Receive Payment: The business receives the payment minus the factoring fee, typically a percentage of the invoice amount.
Factoring can benefit businesses that need quick access to cash to cover expenses, pay employees, or invest in growth opportunities.
However, it’s essential to carefully review the terms and conditions of the factoring agreement to ensure it aligns with your business needs.
HOW DOES A/R FINANCE (aka 'FACTORING') WORK WITH TRADITIONAL BUSINESS BANK ACCOUNTS?
A/R Financing, on the other hand, typically advances 90% of your receivables, and advances are made the same day you generate sales invoices.
While the bank collateralizes itself by holding on to an ongoing ‘ GENERAL SECURITY AGREEMENT ‘ on your business the paperwork structuring A/R finance (also called ‘factoring’ and ‘invoice discounting’) reflects you selling on an ongoing basis your receivables and paying the aforementioned ‘commission’ we have mentioned.
Additionally, when dealing with international payments, it is crucial to consider the transaction fees associated with these payments and the need for cost-effective options.
FACTORING IS OFTEN MISUNDERSTOOD
So, where do things go wrong when clients wade into non-bank A/R financing without experience or assistance? It’s when they don’t understand the transaction's components and the daily routine involved.
Additionally, considering a credit union for business banking needs can offer competitive rates and personalized service compared to traditional banks.
THE COMPONENTS OF AN A/R FINANCE EXAMPLE
Those components? They include understanding how much is advanced, how that 10% reserve works (you received immediate cash for 90% of A/R- The balance is called a ‘reserve) and the financing fee or ‘commission’ we’ve referenced.
Financing fees are often confused with interest rates, which they are not.
Business savings accounts are designed for businesses to grow their bank balance by earning interest, with various interest rates offered based on account balances. The benefits of this method of Canadian business financing resolve the need for more long-term permanent capital.
Business Banking Features to Consider
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Account Management: Look for accounts that offer easy account management, including the ability to add or remove users, set permissions, and track transactions. This can streamline your financial operations.
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Payment Processing: Consider accounts that offer payment processing capabilities, including credit card processing, ACH payments, and wire transfers. This can make it easier to receive payments from customers.
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Invoicing and Billing: Evaluate accounts that offer invoicing and billing tools to help you manage your cash flow. These tools can simplify your accounting processes.
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Integration with Accounting Software: Ensure the account integrates with your accounting software to streamline your financial management. This can save you time and reduce errors.
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Rewards and Benefits: Look for accounts that offer rewards and benefits, such as cashback, discounts, or travel perks. These can add extra value to your banking relationship.
Considering these key factors and features, you can choose a business bank account that meets your unique needs and helps you achieve your financial goals.
DID YOU KNOW?
- 67% of Canadian SMEs consider alternative financing options
- Alternative lenders process applications 60% faster than traditional banks
- 82% satisfaction rate among alternative banking users
- 40% growth in alternative lending year-over-year
- 73% of businesses prefer digital banking solutions
Key Benefits to Businesses:
- Continuous Access to Working Capital
- Access funds any time based on your sales volume
- No artificial credit limits or caps
- Funding grows naturally with your business growth
- Improved Balance Sheet Management
- Keeps your balance sheet clean
- No traditional debt obligations
- Better financial ratios for future financing
- Enhanced Cash Flow Position
- Take advantage of early payment vendor discounts
- Negotiate better pricing with suppliers
- Maintain healthy cash reserves
- Revenue-Based Flexibility
- Funding tied directly to sales performance
- More predictable payment structure
- Scales up or down with business cycles
- Cost Reduction Opportunities
- Lower overall financing costs through sales growth
- Ability to bulk purchase at better rates
- Reduced reliance on expensive short-term credit
- Strategic Growth Advantages
- Reinvest in business expansion
- Capitalize on time-sensitive opportunities
- Maintain competitive market position
CONCLUSION
Call 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor who can assist you with making the most sensible cash flow finance choices for your firm.
Financing receivables is an alternative to a small business loan, often bringing debt to the balance sheet.
Unlike traditional banks, which often have cumbersome processes, higher fees, and stricter requirements, alternative banking solutions offer significant benefits.
P.S. Don’t forget to explore CONFIDENTIAL RECEIVABLE FINANCING, which allows you to bill and collect all your A/R in your own firm’s name—no third party involved. Every small business that can’t access traditional bank financing should explore alternative financing for its business needs.
FAQ
How quickly can I access business funding through alternative banking?
Alternative lenders typically process applications within 24-48 hours, with funds available in 3-5 business days.
What documentation do I need to apply?
Most alternative lenders require 6 months of bank statements, tax returns, and basic business information.
Will my credit score affect my approval chances?
Alternative lenders consider multiple factors beyond credit scores, including revenue, cash flow, and business potential.
What makes alternative banking more accessible than traditional options?
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Simplified application processes
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Flexible qualification criteria
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Faster approval timelines
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Innovative funding solutions
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Technology-driven decisions
How does alternative banking support business growth?
What advantages do digital lending platforms offer?
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24/7 account access
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Real-time decision making
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Automated payments
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Transparent fee structures
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Integrated financial tools
How secure are alternative banking platforms?
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Bank-level encryption
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Regular security audits
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Regulated operations
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Secure data storage
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Protected transactions
What types of businesses qualify?
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Various industry acceptance
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Flexible revenue requirements
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Different business stages
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Multiple business structures
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Diverse credit profiles
How does alternative banking differ from traditional banking?
