YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE!
FINANCING SOURCES FOR YOUR BUSINESS
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
Financing a business in Canada can often leave the business owner/financial manager feel like operating in reverse gear. The sources of finance for businesses don't have to seem unattainable if you've got some of the basics of financing a business under your belt... along with some expert advice that never hurts. Let's dig in.
MANAGING TIMELINES IN YOUR BUSINESS FUNDING NEEDS
Timelines are not what you might be associating with your company's finance needs. However, the reality is that almost all the financing you require has some timeline attached to it - typically short/ intermediate and long term. And in today’s relentless pace of business and technology, the ability to adapt midstream is quite often a necessity.
UNDERSTANDING KEY ELEMENTS OF YOUR BUSINESS FINANCIAL NEEDS
What then are some of the elements of understanding what financing you need, ways to finance your business, and when. In our client's mind, it's usually cost, and of course, that's a factor. Some financing sources present a certain element of risk. Take, for example, Canadian chartered bank financing - low cost and plentiful if you qualify. Those qualifications often come with debt and liquidity 'covenants' - Failing to meet those has the potential to put your entire business at risk when seeking a bank loan. But as a source of funding for business loans, the ability to access traditional financing is optimal.
WHAT IS YOUR CAPITAL STRUCTURE?
Knowing what the big boys call your 'capital structure' is important also - that will affect the amount of debt you can take on. In some cases, Canadian business owners and financial managers have found themselves in a position that their industry or the economy creates severe financing pressures - i.e. access to liquidity, etc.
Top experts seem always to agree that arranging financing in advance makes the most sense - that sense of desperation never seems to impress the lender/banker/financier.
In some cases, refinancing your whole business focusing on turning short-term debt into long-term might make sense. Knowing your cash flow capabilities is key here.
SOURCES OF CANADIAN BUSINESS FINANCING IN CANADA
What then are those business financing sources, and can we put some timelines on them?
SHORT TERM - typically one year in nature
A/R financing
Inventory finance
Bank lines of credit - a small business that qualifies for financing via commercial banks have access to virtually unlimited business credit at best rates - the challenge is, of course, satisfying bank requirements around your profits, balance sheet, and historical and present cash flows - it's the best way to finance your business if you qualify - In the early stage of your business, the bank is not often the best available source of funds when planning growth and financing a business.
Asset-based non-bank lines of credit
Purchase Order/Revenue Financing
Tax Credit Monetization
Bridge loans
INTERMEDIATE TERM - typically 3-5 years
Equipment financing
Working capital term loans
LONG TERM - 5-25 years?
Commercial mortgages
Mezzanine financing
Yes, you can commence the journey around angel investors and venture capitalists and friends and family for your business financing needs, but that provides a long, sometimes painful journey that also comes with ownership equity dilution with those venture capital folks.
Any business loan interest rate will always be less expensive than giving up equity- make sure you understand the debt/equity conundrum!
Many small businesses and even larger firms may need a business plan to qualify for business funding properly - 7 Park Avenue Financial business plans meet and exceed bank and commercial lender requirements.
CONCLUSION
If you want to reverse gear on financing a small business properly and understand sources of financing and funding for business seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can 'right track' you to finance sources for businesses that make sense based on your plans and growth potential.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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