YOUR COMPANY IS LOOKING FOR CANADIAN BUSINESS 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?
CONTACT US - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
Navigating the myriad sources of business finance is crucial for entrepreneurs aiming to drive their company's success.
Struggling to secure the right financing for your business? Discover the best sources of business finance to propel your growth.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer various SOURCES OF BUSINESS FINANCE & solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
FUNDING SOURCES FOR CANADIAN BUSINESS
Sources of business financing in Canada. It's no wonder thousands of Canadian firms are in an eternal traffic jam with no green light insight, pretty well every day.
Let's examine some of the main funding options for business growth, such as raising capital via loans and other instruments, predominantly monetizing assets without the necessity of diluting equity via outside investors, etc. as they attempt to raise money
Sources of business financing allow companies to finance growth, manage cash flow, and capitalize on business opportunities. From traditional bank loans to innovative alternative financing solutions, the options available can be tailored to meet the specific needs of any business.
FACTORS TO CONSIDER WHEN LOOKING FOR BUSINESS FUNDING
When seeking to finance your company, you have two options: equity and debt. Equity is, of course, giving up a share of your company ( Some Angel investors offer mentorship as they are interested in what happens within your organization because it affects both yourself and them)
Debt financing implies that a company must make payments e to pay back its debt; this may include an interest rate on the loan or other fees associated with borrowing these funds).
Running out of funds/money is never a picnic. It's, of course, the major reason that a company either declines or disappears. They become another ' tombstone ' in Canadian business. Not generating profits or cash flow over some time ultimately leads to business demise - again... no secret there!
WHAT SOURCES OF FUNDING ARE AVAILABLE FOR YOUR BUSINESS
So, who are the saviours when it comes to a source of funding and the amount of funding your company needs explicitly? In effect, who are those sources of business financing in Canada?
They come from a wide spectrum, including your suppliers, who can play a key role in your success as they extend credit to your firm on terms - as well as debt and cash flow monetization solutions.
ASSET-BASED LENDING SOLUTIONS
Other key sources are Canadian chartered banks, asset-based lenders (the new kid on the block), factoring firms (aka 'receivable finance') and equipment leasing companies. Asset-based lenders in non-bank commercial finance companies play a key role in Canadian business these days.
THE ROLE OF BANKS
Lending money to a business is risky. Banks will only do so if they believe that the company has good credit and does not need short-term financial aid!
NON-BANK COMMERCIAL FINANCE COMPANIES AND THE ASSET-BASED LENDER
When it comes to borrowing money, getting a loan from banks in Canada is the most economical way.
Banks offer low interest rates but have more stringent credit requirements for borrowers than other sources of credit, such as alternative lenders. Alternative lending options tend to recognize potential risks others, such as banks, might not understand about a business's situation.
Often many sports analogies lend themselves to business - we don't know why they do. So, keeping those sources of business finances 'on the side’ often becomes the goal of every owner and business manager. If your firm’s financial position weakens, then you, in effect, are abandoned by the assistance you need most, often leading to an economic crisis of some sort.
How businesses get into short-term trouble is, again, seemingly quite obvious. Putting a long-term fix in place is more challenging.
Suppliers react to potential problems by holding shipments or shortening payment terms, even the ultimate short payment term - C.O.D.! Other creditors tend to pile on when word spreads or credit reports indicate your firm is trending downward. In some cases, it’s not the fault of management - the industry could be in a temporary decline.
Replacing financing is difficult in the best of times; it’s tough for a firm with financial challenges.
3 KEY SOURCES OF BUSINESS FINANCING
Many sources of business financing are not afraid to step up to the table if your firm is temporarily challenged in achieving the right financing services - they include :
Factoring firms - financing trade credit receivables from commercial and government clients
Asset-based lenders
Financiers of tax credits - a solid way to fund your firm's research and development vis sr&ed funding
FINANCING ASSET ACQUISITION FOR EQUIPMENT AND TECHNOLOGY
Equipment lessors and commercial asset loan firms are equally up for generating new cash flow by engineering a sale-leaseback of assets or simply approving your firm for much-needed new equipment. While interest rates are higher in alternative financing, these types of loans deliver on cash quickly and have certain tax benefits
Canadian businesses should never be afraid to source new asset financing in troubled times. However, they should expect that transactions will be structured, perhaps at higher rates, shorter terms, or the need for additional external collateral.
GOVERNMENT LOANS - DON'T FORGET THE CANADA SMALL BUSINESS FINANCING PROGRAM - SOURCES OF START-UP FINANCING
Government small business loans for startup funding or franchise purchases are generally an excellent form of financing via term loans that make sense for the entrepreneur's needs, eliminate significant risk, and require less personal savings investment versus the requirements of a traditional bank loan.
Established businesses always have an edge in raising financing over their start-up counterparts with the help of participating financial institutions- given they typically have profits and retained earnings - Interest payments can be deferred with special approval.
The interest rate for entrepreneurs on the program is desirable, and the flexible payment terms and the absence of a full personal guarantee by the borrower. They are not ' grants '; they are lump sum term loans up to a maximum of 1 million dollars, typically 350k in most cases. Talk to the 7 Park Avenue Financial team about the process and work with you to quickly facilitate financing.
Nirvana in Canadian business when it comes to funding loans or raising working capital. That's certainly the perception of many clients, as these types of facilities are quite inexpensive and are somewhat flexible.
The reality is that most challenged, start-up or struggling businesses cannot expect to achieve the bank credit Nirvana they dream about in Canada.
THE ROLE OF THE ASSET-BASED LENDER
Whether your firm is new, struggling, pre-revenue, or facing a temporary financing challenge, never forget that sources of capital do exist. As we have mentioned, they included asset-based lines of credit, tax credit financing for research projects, receivable finance, supply chain financing, and equipment leases and leaseback. Make sure you understand the difference between debt financing and monetizing assets.
KEY TAKEAWAYS
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Traditional Bank Loans: These provide a stable source of capital with fixed repayment terms and interest rates, ideal for established businesses with solid credit histories.
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Venture Capital: Institutional venture capitalists provide substantial funds for equity capital in exchange for ownership, supporting high-growth potential startups.
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Angel Investors: Wealthy individuals invest in early-stage businesses, offering both capital and mentorship.
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Crowdfunding: Platforms like Kickstarter and Indiegogo enable businesses to raise funds from a large audience, validating their products in the market.
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Business Lines of Credit: Offers flexible access to funds for operational expenses, allowing businesses to manage cash flow effectively.
CONCLUSION
When friends and family, venture capital .. those ' venture capitalists ' / ' angel investors ' or even traditional bank loans don't work, get out of that traffic jam by speaking to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor, for advisory support to achieve the source of funding for your business venture and funding needs today!
FAQ: FREQUENTLY ASKED QUESTIONS
What is a business incubator?
One of the most popular tools for business expansion is a startup accelerator. These accelerators are created to help new companies, especially in tech sectors, get off the ground and grow quickly by providing them with access to resources and expertise that would be difficult or impossible on their own. Some incubators offer other services, such as localized economic development, which focuses on job creation through hosting programs like co-working spaces or shared office space, along with workshops focused on teaching skills needed to start up your company.
What are the primary sources of business finance?
Business finance includes options such as traditional bank loans, venture capital, angel investors, crowdfunding, and business lines of credit. Visit : https://www.7parkavenuefinancial.com
How does a business line of credit work?
A business line of credit provides flexible access to funds that can be used for various operational needs. It allows businesses to borrow as needed and repay over time. Visit : https://www.7parkavenuefinancial.com
What is invoice financing?
Invoice financing allows businesses to leverage their outstanding invoices for immediate cash, improving liquidity without waiting for customer payments. Visit : https://www.7parkavenuefinancial.com
Why should businesses consider equipment financing?
Equipment financing helps businesses acquire necessary equipment without a large upfront cost, spreading the expense over time via monthly payments and preserving cash flow. Visit : https://www.7parkavenuefinancial.com
What are the benefits of government grants for small businesses?
Government grants offer non-repayable funds, which can help small businesses with specific projects or initiatives without the burden of debt. Visit : https://www.7parkavenuefinancial.com
How can I improve my chances of getting approved for a business loan?
To improve your chances, maintain a strong personal credit score, prepare a solid business plan, and ensure your financial statements are accurate and up-to-date. Visit : https://www.7parkavenuefinancial.com
What is the difference between secured and unsecured business loans?
Secured loans require collateral, such as business assets, while unsecured loans do not. However, they typically have higher interest rates and stricter eligibility requirements. Visit : https://www.7parkavenuefinancial.com
Can startups qualify for business loans?
Yes, startups can qualify for business loans, primarily through micro-loans, government small business loans, and certain types of asset-based lending. Visit : https://www.7parkavenuefinancial.com
How do merchant cash advances work?
Merchant cash advances provide upfront funds based on future credit card sales, repaid through a percentage of daily sales. It offers quick access to cash but often with higher costs. Visit : https://www.7parkavenuefinancial.com
What is a working capital loan?
A working capital loan is a short-term loan designed to cover a business's day-to-day operational expenses, such as payroll, rent, and inventory. Visit : https://www.7parkavenuefinancial.com
What are the advantages of venture capital for businesses?
A Venture capitalist provides substantial funds and strategic guidance via equity financing, helping high-growth startups scale quickly and compete in the market. Visit : https://www.7parkavenuefinancial.com
How does peer-to-peer lending differ from traditional bank loans?
Peer-to-peer lending connects borrowers of debt capital directly with individual lenders through online platforms instead of borrowing money from a traditional financial institution, often resulting in more flexible terms and quicker approval processes. Visit : https://www.7parkavenuefinancial.com
Why might a business choose crowdfunding over other financing options?
Crowdfunding raises capital, validates business ideas, and builds a customer base before product launch. Visit : https://www.7parkavenuefinancial.com
