YOUR COMPANY IS LOOKING FOR FINANCING!
COMMERCIAL LOAN FINANCING
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
Unlock your business's potential with tailored Canadian Business Financing solutions.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Canadian Business 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”
CANADIAN BUSINESS FINANCING SOLUTIONS
For most business owners and financial managers, financing businesses in Canada conjures up more often than not only one thought - a commercial bank business loan.
While other alternatives exist, more so today than ever, our banks are usually at the top of mind regarding financing solutions. Let's dig in.
Canadian Business Financing: Operating Capital Needs Versus Debt Solutions
Whether it’s operating capital to run and grow their business or term debt, that external capital challenge via a business loan realization becomes your focus.
For SME Commercial (small to medium enterprise) businesses, funding might come from personal resources or the proverbial ‘friends and family.’ Still, typically, the owner’s focus is either a bank or commercial finance firm, often leveraging business assets as collateral to secure financing.
UNDERSTANDING FINANCIAL INSTITUTION QUALIFICATIONS FOR BUSINESS FUNDING
Does the typical owner/manager understand what drives financial institution approvals for financing requests?
When we talk to clients, we usually listen to their negative experiences accessing bank funding. We’ve always found that interesting, as banks probably use no more straightforward system to scorecards and approve financing.
Let’s look at some of those key ingredients in adequately funding a business via a bank and achieving the interest rate that comes with that.
Let’s look at that system a bit; if anything, it will allow the borrower to self-evaluate, saving time and energy on getting the right financing. Oh, and in our opinion, it’s the banker, not the bank, so focus on a relationship, not a logo.
WHAT ARE WORKING CAPITAL FINANCE SOLUTIONS OFFERED BY BANKS?
Banks offer several solutions, typically revolving credit facilities, term loans, asset financing, etc.
Equipment financing is another option, particularly for small and medium-sized retailers facing challenges securing funds for their inventory needs.
The focus for bank loan approval always comes down to looking at current and forecasted financials to determine the best structuring financing method.
That is not to say that past performance and your business’s overall asset quality are not also considered when determining the amount borrowed.
The actual net worth of a business is key in bank financing. In combination with the amount of debt you have, the amount you request must make sense to the bank.
One key rule of thumb for most industries in Canada is that your total debt should not be more than 2 times the business’s equity.
As we said, though, that formula varies within industries as it relates to business loan interest rates in Canada and cost of financing/debt repayment ability.
CANADIAN BUSINESS FINANCING OPTIONS AND STRATEGIES
WHAT ARE GOVERNMENT-GUARANTEED LOANS - AKA THE ' SMALL BUSINESS LOAN '
Many businesses in the SME sector, particularly start-ups and smaller firms, can access bank financing through the Government Small Business Loan, which Industry Canada administers under the Canada Small Business Financing Program.
Recent changes to the government loan program make this financing even more attractive, but it has already offered reasonable rates; borrowing limits recently increased, with the previous limit being a 1.1 million loan amount to secure funds.
Loans are either fixed rate or variable based on a surcharge on the lender's prime lending rate. The solution is a term loan, typically 2-5 years, not short-term financing. Tenant Intangible assets/leasehold improvements can now be financed, as can working capital costs and an unsecured personal guarantee that does not touch your personal assets.
Commercial real estate can also be acquired through government programs. It’s important to note that this is not a working capital, cash loan, or line of credit but a term loan to a business.
Eligible purchases under the program include leasehold improvements and real property improvements.
This is, bar none, one of the best loans for new small businesses, franchise purchases, etc. Applying for a business loan requires a solid application package, including a business plan. 7 Park Avenue Financial business plans meet and exceed bank and commercial lender requirements to get a small business loan.
HERE ARE A LIST OF SOLUTIONS OFFERED BY 7 PARK AVENUE FINANCIAL FOR YOUR BUSINESS CAPITAL NEEDS
When bank financing is unavailable for a firm that can’t meet the ownership equity issues and cash flow coverage that a bank desires, non-bank solutions usually can. They include:
A/R Financing
Inventory Loans
Non-bank asset-based lines of credit
SR&ED Tax credit financing
Equipment / fixed asset financing
Cash flow loans
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance
Securitization
KEY TAKEAWAYS
-
Securing Canadian Business Financing options is crucial for business growth and stability.
-
Exploring the diverse range of Canadian Business Financing alternatives, from traditional loans to innovative financing solutions, is key to finding the best fit for your business.
-
Understanding the eligibility criteria and application process for Canadian Business Financing can help you confidently navigate the landscape.
-
Leveraging the expertise of Canadian Business Financing specialists can provide valuable insights and guidance throughout the funding journey.
-
Effective financial planning and budgeting are essential for managing Canadian Business Financing responsibly and achieving long-term success.
CONCLUSION
Canadian Business Financing is the backbone of entrepreneurial success.
Alternative financing has higher interest rates. Still, these solutions provide the capital you need to run and grow your business, achieving financing that meets your business needs for commercial loans.
Understanding the lender's best lending rate and the role of a personal guarantee is crucial in securing loans.
So, if you’re looking to hit the bull’s eye in a commercial bank business loan that meets the needs of small businesses, call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can help ensure success.
FAQ
What are the most common types of Canadian Business Financing?
The most common types of Canadian Business Financing include small business loans, commercial mortgages, equipment financing, business lines of credit, and startup funding.
How can Canadian Business Financing help my business grow?
Canadian Business Financing can provide the necessary capital to expand operations, invest in new equipment, hire additional staff, and seize new market opportunities, all of which can drive business growth and success.
What factors should I consider when choosing a Canadian Business Financing option?
When selecting a Canadian Business Financing option, consider factors such as the intended use of funds, repayment terms, interest rates, eligibility criteria, and the overall fit with your business's financial needs and goals.
How can I improve my chances of securing Canadian Business Financing?
To improve your chances of securing Canadian Business Financing, you need a well-prepared business plan, a strong credit history, collateral (if required), and a clear understanding of your financing needs and the available options.
What resources are available to help me navigate the Canadian Business Financing landscape?
Various resources are available to help you navigate the Canadian Business Financing landscape, including government programs, business development centers, financial advisors, and online tools and platforms that provide information and guidance.
What is the role of personal credit in Canadian Business Financing?
Your personal credit score and history can significantly affect your eligibility for Canadian Business Financing, especially if you're a sole proprietor or your business is in its early stages.
How can I use Canadian Business Financing to fund a business acquisition?
Canadian Business Financing can fund the purchase of an existing business, allowing you to leverage the company's assets and cash flow to secure the necessary capital.
How can I use Canadian Business Financing to finance international expansion?
Canadian Business Financing options, such as export financing or cross-border lending, can help businesses expand into international markets by providing the necessary capital and support.
What are the common challenges businesses face when accessing Canadian Business Financing?
Common challenges in accessing Canadian Business Financing include lack of collateral, insufficient credit history, complex application processes, and difficulty navigating the various financing options.
What key factors do lenders consider when evaluating Canadian Business Financing applications?
When assessing Canadian Business Financing applications, lenders typically evaluate factors such as the applicant's credit history, business plan, collateral, cash flow, and industry experience.
How can Canadian Business Financing help businesses improve their financial resilience?
Canadian Business Financing can help businesses improve their financial resilience by providing the necessary capital to weather economic fluctuations, invest in growth opportunities, and maintain a healthy cash flow.
What are the potential benefits of working with a Canadian Business Financing specialist?
Working with a Canadian Business Financing specialist such as 7 Park Avenue Financial can provide valuable insights and guidance, help navigate the complexities of the financing landscape with alternative lenders and traditional financial institutions, and ultimately secure the most suitable financing solutions for your business.
