YOUR COMPANY IS LOOKING FOR TECHNOLOGY FINANCING SOLUTIONS!
FUNDING YOUR REQUIREMENTS FOR TECHNOLOGY SOLUTIONS
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Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
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EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Tech financing needs in Canada can be a combination of challenges (and a headache!) Canadian businesses in the SME and large corporate sector. Technology corporate finance solutions and the financial services you require, no matter how small or large your company is, come in various flavours and sizes. Several locations in Canada are hotbeds of technology and are viewed in some cases as Silicon Valley north. Let's dig in.
THE CHALLENGES OF FINANCING TECHNOLOGY FOR STARTUPS AND EARLY STAGE / SMALL FIRMS
The start-up or early phase company has difficulty in attracting any financing. So planning for tech solutions and upgrades is crucial and challenging. As harsh as it is in Canada, the reality is that owner equity provides the majority of early-stage financing for operations and technology. The irony here is that the technology will often drive higher and faster growth and profits.
SERVICE BASED BUSINESSES
Service-based businesses and those relying on ' IP ' (intellectual property) create even more of a problem for themselves, as much of the financing for the SME Commercial sector in Canada is ' asset-based. ' So from the owner/financial manager perspective, they feel they are compelled to take financing at rates, structures and terms that are less than favourable.
DO BANKS FINANCE TECHNOLOGY NEEDS
It's no secret to Canadian business owners and entrepreneurs that it's difficult to pitch technology financing needs to our Canadian chartered banks. The reasons are pretty simple: Tech needs seem to become obsolete quickly, and even with prices of the majority of tech assets going down in price, they still are a huge part of any firms ' CAPEX' budget.
HOW TO FINANCE YOUR TECH NEEDS
So who are the ' sources of financing ' those technology companies that can fill the tech financing gap you're faced with? Is there a better way to address rapid growth in technology changes and those ' life cycles'?
THE GOVERNMENT OF CANADA SMALL BUSINESS LOAN PROGRAM CAN FUND TECHNOLOGY ASSETS
One way to secure financing for hardware, software, and telecom equipment from those tech companies is to look at the Government CSBF loan as the solution to challenges in their business operations needs. Recent changes have appeared to make the program even more popular. Billions are borrowed every year under this program.
UTILIZE LEASE FINANCING AS A SOLUTION TO FUND TECHNOLOGY ASSETS
So is there a clear-cut way to finance the acquisition of technologies? The obvious choice? LEASING! The reasons are pretty simple - along with typical tax and accounting advantages, the owner/manager has the ability to match cash outflows with the ' estimated ' useful life of the asset.
And because many firms want to use, 'not ' own' tech assets, they also choose to opt for operating leases. These allow for maximum flexibility when it comes to upgrades, buying out, or simply extending. As leaders in the financial industry, Evan banks use equipment leasing solutions such as operating leases to fund their tech needs.
WHAT ASSETS CAN BE FINANCED WITHING TECHNOLOGY LEASE SOLUTIONS
Currently, the industry as a whole prides itself on fast approvals, often within a day or so. And again, those assets that can be financed:
APPLICATION SOFTWARE - These days, it's all about big data.'
COMPUTERS
SERVERS
LAPTOPS/NOTEBOOKS/TABLETS
TELECOM EQUIPMENT
PHONE SYSTEMS
In today's competitive environment, most businesses require technology of some sort to manage and grow their business operations. That might be application software or third-party software services that make your firm more efficient and competitive.
Every company will have different needs and objections, so the business owner and financial manager can be forgiven for finding financing for the different technology projects and uses in their business. Those firms that don't innovate in some manner are easily left behind these days. Every business is looking inside their data and organization to drive efficiencies in their business - the days of manually created spreadsheets seem long gone sometimes!
Adding technology to improve your financial decision-making can easily place stress on your capital expenditure budgets. Still, the goal of improving business capital and inventories and services is always top of mind in management. These days growth and innovations seem very linked together, so the ability to achieve lease and loan financing to acquire the tech solutions you need in your business is key.
It's safe to say that owners/managers are looking for leases and loans that allow management to stay in control of fast-changing technology. Certain industries requiring a specialized focus at 7 Park Avenue Financial out team have spent decades ensuring lease and debt financing match a firm's needs, with payments and cash flow structured to your specific need.
CONCLUSION
Small businesses will always have a challenge to fund any new asset, technology included. Fintech companies are often start-ups and have a constant need to upgraded hardware and software. Any fintech company in the technology industry today should avail themselves of the proper financing solutions for their requirements. Numerous lease and loan solutions from the leasing finance industry are available at structures tailored to your needs.
For startups, the credit score of the owners will play a key role in funding approval. Decision-makers in a technology company should also ensure they have a proper business plan and cash flow projections if they are an early-stage firm. Translating marketing strategies into working capital needs is a challenge for any high-growth firm advise industry experts.
If you're looking to get the proverbial monkey off your back when it comes to financing tech needs, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in ensuring you're ' up to speed' in tech corporate finance requirements.
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Stan Prokop
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