YOUR COMPANY IS LOOKING FOR COMMERCIAL BUSINESS 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
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Unlock your business potential: Discover how commercial loan providers can transform your financial struggles into success stories.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Commercial Loans 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”
Commercial Loan Providers: Financing Solutions in Canada
Commercial loan financing options in Canada are a solid item on your bucket list.
Your company's proper business finance solutions should be a top priority on that bucket list!
While some might consider your business ‘ finances’ somewhat boring, we don’t. In fact, the right solutions can add fireworks to your growth and operating plans. Let’s dig in.
FINANCING CHOICES
Most business owners / mgrs in the SME COMMERCIAL FINANCE needs area recognize that business loans are a top priority and play a significant role in their companies.
And when it comes to choices, the term ‘ comparison shopping ‘ seems entirely appropriate. Commercial mortgages are crucial for business financing, offering unique benefits and processes compared to residential mortgages.
FINANCING COSTS & RATES
While many clients we meet focus solely on ‘ interest rate, ‘not all firms can guarantee their chances of approval at low rates—it’s equally as important to focus on terms, structure, and the type of financing that best suits their needs at that particular time.
A business financing advisor can help navigate these complexities, ensuring you meet financial criteria and secure favourable loan terms.
EQUITY OR DEBT?
Many firms we encounter are wrongly focused on equity capital but are unaware that they lack the ‘ blistering growth’ that VC/Angel investors require.
In many cases, they are too ‘ early stage ‘ and can’t clarify key differentiators, much less a solid business plan/cash flow forecast.
Commercial mortgage lenders evaluate loan applications based on loan-to-value ratios, the borrower's experience, and the property type.
BANK FINANCING
Traditional bank financing in Canada offers low rates and flexible terms. However, approval times can be lengthy, and the amount and type of financing needed to facilitate operations/growth success might not be available.
Many owners/mgrs often get discouraged in the whole bank process, rightfully or wrongfully. A commercial mortgage loan is a substantial financial investment for property owners, requiring careful consideration of terms and conditions.
ALTERNATIVE LENDING
What other doors are open to the business owner?
Niche lenders are emerging to serve specific industries, offering tailored loan products with deep sector expertise. The route to potentially consider is alternative commercial lenders, who often focus less on owners’ personal finances.
Those ‘ personal finances’ are key in bank lending, with issues such as personal credit scores and collateral being a main focus. Due to the intricate financial conditions involved, selecting specialized lenders for commercial mortgages is essential.
Alternative business finance solutions are easier to access; financing costs are higher but are coming down partly due to booming competition.
Purchasing commercial property has benefits, such as access to specialized financing and the potential for stable income, but it also has risks due to elevated lender requirements.
BUSINESS FINANCING AND LOAN SOLUTIONS
‘DEBT ‘ is often a two-edged source in commercial financing.
Too much is unhealthy; a lack of debt might indicate your firm can’t get the financing it needs to grow a business.
More importantly, we maintain that ‘ debt ‘ is not always the solution. Numerous cash flow and working capital solutions are available - they include:
A/R Financing
Inventory finance at commercial/retail levels
Non-bank asset-based lines of credit
PO finance
Tax credit financing
Short term working capital loan
Sales/royalty finance
Sale leasebacks - fixed payments and spreading out the cost are key features in assets you already own
Those solutions noted above can fuel growth, increase demand for your services, and allow you to take advantage of competitive situations that benefit your business.
Commercial real estate offers flexible financing options and long-term stability, making it a lucrative investment opportunity.
KEY TAKEAWAYS
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Loan types: Understanding various commercial loan options tailored to specific business needs
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Creditworthiness: Recognizing factors lenders consider when evaluating loan applications
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Collateral: Grasping the role of assets in securing favourable loan terms
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Cash flow analysis: Comprehending how lenders assess a company’s ability to repay loans
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Documentation: Knowing essential financial statements required for loan approval
CONCLUSION
If you want to clear that #1 bucket list item - proper ‘ business financing' call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can help put the ‘ fireworks’ back in your growth strategy.
FAQ
What are the different types of Commercial Loans?
Commercial loans come in various forms to meet different business needs. Some common types include term loans, lines of credit, equipment financing, commercial mortgages, SBL loans, invoice factoring, and merchant cash advances. Each type serves specific purposes, from long-term capital investments to short-term cash flow management.
What are collateral requirements in commercial lending?
Collateral requirements in commercial lending vary depending on the loan type and lender. Typically, lenders may require assets such as real estate, equipment, inventory, accounts receivable, or personal assets as collateral. The value and type of collateral often influence loan terms and interest rates. Some loans, like unsecured lines of credit, may not require specific collateral but often come with higher interest rates.
What are some alternative lending options?
Alternative lending options include peer-to-peer lending platforms, online lenders, invoice financing, revenue-based financing, and crowdfunding. These options often provide faster approval processes and more flexible terms than traditional banks. They can be handy for businesses that may not qualify for conventional loans or need specialized financing solutions.
Are there industry-specific loan programs?
Yes, many lenders offer industry-specific loan programs tailored to particular sectors' unique needs and cash flow patterns. For example, there are specialized loans for agriculture, healthcare, technology startups, and hospitality businesses. These programs often consider industry-specific factors and may offer more favourable terms or specialized repayment structures.
What is the role of a commercial loan broker?
A commercial loan broker acts as an intermediary between borrowers and lenders. They help businesses navigate the complex lending landscape by identifying suitable loan options, preparing loan applications, and negotiating terms with lenders. Brokers can be particularly valuable for businesses with unique financing needs or those seeking to compare multiple offers from different lenders.
Can you refinance existing loans?
Yes, refinancing existing commercial loans is possible and often beneficial. Refinancing can help businesses secure better interest rates, extend loan terms to lower monthly payments, or consolidate multiple loans into a single, more manageable debt. It's typically considered when market conditions have improved, the business's financial health has strengthened, or more favorable loan products become available.
What are the primary advantages of working with commercial loan providers?
Commercial loan providers offer flexible financing options, competitive rates, and industry expertise to help businesses access capital for growth, expansion, or operational needs.
How can commercial loans improve my business’s cash flow?
Commercial loans can help smooth out cash flow fluctuations, cover unexpected expenses, and take advantage of time-sensitive opportunities by providing access to working capital.
Are there industry-specific benefits to using commercial loan providers?
Many commercial loan providers offer tailored solutions for specific industries, providing loans that align with unique business cycles, equipment needs, and revenue patterns.
Can commercial loans help my business build credit?
Absolutely. Consistently repaying a commercial loan can strengthen your business credit profile, potentially leading to better terms on future financing and improved relationships with suppliers.
How do commercial loans compare to personal loans for business use?
Commercial loans often offer higher loan amounts, longer repayment terms, and more flexible use of funds compared to personal loans, while also keeping business and personal finances separate.
What documentation do I need to apply for a commercial loan?
Commercial loan providers require financial statements, tax returns, business plans, and collateral information. Specific requirements may vary based on the lender and loan type.
How long does the commercial loan approval process typically take?
It can range from a few days to several weeks, depending on the loan amount, complexity, and lender. Some alternative lenders offer faster approvals for certain loan types.
Are there government programs that support commercial lending in Canada?
Yes, the Canadian government offers programs like the Canada Small Business Financing Program and various industry-specific initiatives to support commercial lending to eligible businesses.
What happens if I default on a commercial loan?
Defaulting on a commercial loan can result in legal action, seizure of collateral, damage to your business credit score, and potential personal liability if you’ve provided a personal guarantee.
How do commercial loan providers determine interest rates?
Interest rates are typically based on creditworthiness, business financials, loan terms, collateral, and overall risk assessment. Some lenders also consider industry trends and economic conditions.
What criteria do commercial loan providers use to evaluate loan applications?
They assess factors such as credit history, financial statements, cash flow projections, collateral, industry outlook, and management experience. The debt service coverage ratio (DSCR) is a critical metric in this evaluation.
How do commercial loan providers differ from traditional banks?
Commercial loan providers often offer more specialized lending products, faster approval processes, and greater flexibility in terms and conditions compared to conventional banks. They may also be more willing to work with businesses with unique financial situations.
How important is financial stability when applying for a commercial loan?
Financial stability is crucial as lenders evaluate it as part of the application process, influencing the approval and terms of financing based on the applicant's financial health and the projected income from the property.
What is mortgage financing, and how does it differ for various property types?
Mortgage financing provides various solutions for different properties, including self-storage facilities, industrial buildings, and student housing. Each type of property has unique requirements, such as location, occupancy, and cash flow.
What is a private commercial mortgage, and how does it differ from traditional bank loans?
A private commercial mortgage offers more flexibility and accessibility than traditional banks, often with less stringent qualification criteria and quicker approval processes.
