YOUR COMPANY IS LOOKING FOR THE BEST FINANCING OPTIONS FOR A BUSINESS!
HOW TO FINANCE YOUR BUSINESS PROPERLY / FINANCING OPTIONS FOR 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?
CONTACT US - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Business Funding 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 FUNDING
Financing businesses have evolved significantly in Canada.
The past is not representative of the future. Owners and financial managers who are up to date with what’s available and from whom access to capital can easily be forgiven for being simply... out of step- whether they are early stage or established. Let's dig in.
UNLOCK YOUR BUSINESS'S TRUE POTENTIAL WITH THE RIGHT FUNDING SOLUTION – DON'T LET FINANCIAL CONSTRAINTS HOLD YOU BACK!
The right business funding gives you the capital to fund day-to-day operations and focus on growing and expanding your business.
The right financing is 'make or break' for your business. At 7 Park Avenue Financial, we think there is a difference between struggling and thriving! From traditional financing or the new alternative funding landscape, let our team show you business financing solutions that make sense.
Are Business Owners Familiar With Newer Methods of Business Funding?
Business is often susceptible to ‘ disruption, ‘and financing Canadian companies is a great example of that. When we talk to clients about newer financing methods, such as funding programs, we often feel that these methods are known only to the privileged few.
Today, the owner/financial manager can easily access newer methods of financing. One top expert describes this current situation as ‘ open knowledge. ‘
DOES YOUR FIRM HAVE UNREALISTIC FINANCE EXPECTATIONS WHEN IT COMES TO FINANCE FOR BUSINESSES
Unfortunately, many small businesses entrepreneurs rely on venture capitalists and Canadian banks as key sources.
The angel investor/venture capital route is a long road as we watch business owners explore those ‘friends and family,’’ angel investors ‘ solutions, spending a lot of valuable time exploring business capital.
We’re talking only about the smallest number of firms that qualify for VC capital. The prospects of accessing true bank financing are much more positive, but thousands of companies remain ‘unsatisfied’ with all the business credit they need.
The 2008 global recession hammered access to business credit, and the 2020 Pandemic did not help!
Business loans will always revolve around the type of financing you need to run and grow your business and the methods of finance required to complete your funding.
Additionally, programs like the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) offer financial assistance to support small and medium-sized companies, helping mitigate the costs of hiring young talent for various innovative projects.
INVESTIGATE GOVERNMENT LOAN PROGRAMS AND GOVERNMENT GRANTS FOR SMALL BUSINESS - TALK TO 7 PARK AVENUE FINANCIAL ABOUT THE GOVERNMENT FEDERAL LOANS
So when a loan for a business start-up funding is a challenge, many start-up businesses and new franchisees in the franchise industry take advantage of Government assistance when it comes to financing.
Various funding programs under the federal economic development initiative, such as those from the Federal Economic Development Agency and FedNor, provide financial assistance for strategic projects in Ontario.
Over 8,000 businesses annually take advantage of the CSBF / BIL loan program, which provides government-guaranteed loans to the SME sector. (Note: Businesses under 10 Million $ in actual or projected revenue can qualify.) It is not an interest-free business loan, but interest payments may be waived in some instances for some time.
A good credit score and personal credit history are required. These commercial loans are not a working capital/ cash flow but finance three key asset categories - equipment, real estate, and leasehold improvements.
The interest rate is benchmarked against Canadian prime rates. Loans are available from participating financial institution participants, mainly banks and some business-oriented credit unions. It’s not a short-term solution.
It’s an excellent long-term bank loan for businesses that would not otherwise qualify without the government guarantee provided to the bank by the Government of Canada. Government funding for business should never be overlooked if it suits your business needs.
HOW TO APPLY FOR A SMALL BUSINESS LOAN AND FINANCIAL ASSISTANCE
A good business plan demonstrating management, cash flow, management experience around your products and services, and growth potential is key to a solid application.
[7 Park Avenue Financial business plans](http:// https://www.7parkavenuefinancial.com/business_plans.html) meet and exceed bank and commercial lender requirements. If you need help to apply for a small business loan, talk to our team.
Business grants are another form of financial assistance governments and organizations provide to support small and medium-sized businesses. We’re often asked how to finance a startup business and are ready to discuss those options.
Another note on government assistance financing options is that federal and provincial governments tend to relax legislation regarding crowdfunding.
Technology has allowed thousands of people with capital to access your business deal if presented correctly and on the right platform.
HERE ARE SOME CANADIAN BUSINESS ALTERNATIVE FINANCING SOLUTIONS AND FUNDERS FOR SMALL BUSINESSES
Seeking the right funding source in Canada necessitates understanding options in debt and equity.
Grant funding, which provides non-repayable financial support to businesses from various organizations, is another viable option.
We’re huge proponents of asset monetization—many firms aren’t unaware they can cash flow existing assets via alternative finance companies for small businesses.
Some examples of Asset and Revenue Monetization:
SaleLeasebacks
Bridge Loans
Tax Credit Financing
Royalty financing / Financing Software as a Service (‘SAS’)
Purchase Order/Contract Financing
Asset-Based (‘ABL ‘ ) lines of credit (These operating loans combine accounts receivable, inventory, and equipment all into one borrowing facility)
THE IMPORTANT OF HAVING PROPER AND UPDATED FINANCIAL STATEMENTS
Whether it’s traditional or alternative financing, there is no substitute for demonstrating sound management and the ability to produce regular and proper financials.
Investing in developing existing employees is also crucial, as it ensures that your current workforce is well-equipped to contribute to the company's financial health.
BUYING A BUSINESS - TALK TO THE 7 PARK AVENUE FINANCIAL TEAM ABOUT ACQUISITION FINANCING NEEDS AND BUSINESS EXPANSION
Acquisition financing for mergers and acquisitions, including business expansion, has never been more plentiful.
Supposedly, thousands of original owners are seeking succession plan strategies and buyers for their long-established businesses. Here, valuation and due diligence are key. Whether it’s small business loans or a complex acquisition, we’ve got the expert advice you need.
KEY TAKEAWAYS
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Debt vs. equity financing: Understanding the fundamental difference between borrowing money and selling ownership stakes
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Cash flow management: Recognizing the importance of maintaining positive cash flow to service debt or attract investors
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Credit scores and business plans: Realizing their crucial role in securing traditional loans from banks or financial institutions
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Collateral and personal guarantees: Grasping the concept of securing loans with business or personal assets
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Return on investment (ROI): Comprehending how lenders and investors evaluate the potential profitability of funding a business
CONCLUSION
While not all Small Business Financing in Canada has been timeless, what remains constant is what finance solutions meet your debt, cash flow, and growth criteria.
Call 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor who can show you the path to financing options for a small business via the who and how! Whether it is government small business assistance or growth financing, we've got the solutions you need.
FAQ
How can business funding help my company grow?
Business funding provides the necessary capital to invest in new equipment, hire talented employees, expand operations, or launch marketing campaigns, all of which can contribute to significant company growth and increased market share.
What types of business funding options are available for startups?
Startups can explore various funding options, including angel investors, venture capital, crowdfunding platforms, small business loans, and government grants. Each offers unique advantages depending on the business model and growth stage.
Can business funding improve my company's competitive edge?
Yes, adequate funding allows your business to invest in cutting-edge technology, research and development, and talent acquisition, enabling you to stay ahead of competitors and capitalize on market opportunities more effectively.
How does business funding impact my company's financial stability?
Proper funding can enhance your company's financial stability by providing a buffer against unexpected expenses, smoothing out cash flow fluctuations, and allowing for strategic long-term planning rather than focusing solely on short-term survival.
What role does business funding play in innovation and product development?
Business funding is often crucial for innovation and product development, providing the necessary resources to conduct market research, prototype new ideas, and bring innovative products or services to market, thereby driving business growth and industry advancement.
What are the typical interest rates for different types of business funding?
Interest rates vary widely depending on the funding type, lender, and borrower's creditworthiness. Traditional bank loans often offer lower rates compared to alternative lenders, while equity financing doesn't involve interest but requires giving up ownership stakes.
How long does the business funding application process usually take?
The application process duration can range from a few days for some online lenders to several months for traditional bank loans or venture capital funding. SBA loans typically take 60-90 days, while crowdfunding campaigns can last 30-60 days.
Are there industry-specific business funding options available?
Yes, many industries have specialized funding options. For example, agriculture has farm loans, real estate has property development financing, and technology startups often have access to specific venture capital firms or incubator programs. Canadian government funding programs, such as the SR&ED program, come through loans, grants, and subsidies for new and existing employees. They allow firms to explore domestic and international markets and help regional economic growth.
How does my personal credit score affect my ability to secure business funding?
For many small businesses, especially startups, lenders often consider the owner's personal credit score. A higher score can increase your chances of approval and potentially secure better terms, while a low score might limit your options or result in higher interest rates.
What are the pros and cons of seeking international business funding?
International funding can provide access to larger capital pools and diverse investor networks to support businesses. However, it may involve complex regulatory compliance, currency exchange risks, and potential cultural or communication challenges that need careful consideration. EDC loans and guarantees provide valuable financial assistance in export financing.
What factors should I consider when choosing between different business funding options?
Consider your business's financial situation, growth projections, risk tolerance, and long-term goals. Evaluate each funding option's cost of capital, repayment terms, and potential impact on business ownership and control.
How can I improve my chances of securing business funding?
Develop a robust business plan, maintain accurate financial records, improve your credit score, build strong relationships with potential lenders or investors, and consider seeking professional advice to present your business in the best light possible.
What are the common pitfalls to avoid when seeking business funding?
Avoid underestimating your funding needs, neglecting to shop around for the best terms, failing to read and understand all contract terms, overlying on a single funding source, and using business funds for personal expenses, which can jeopardize your company's financial health and credibility.
RELATED ARTICLES:
Start-up financing
Business Funding Guide
Canada Small Business Financing Program / SBL
