YOUR COMPANY IS LOOKING FOR ALTERNATIVE BUSINESS FINANCING SOLUTIONS
SMALL BUSINESS FINANCING FOR CANADIAN BUSINESSES
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 - sprokop7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Alternative financing in Canada may seem to some like a bit of the ' wild west, ‘but the reality is that SME finance has dramatically changed Canada's commercial loan market landscape for business loans for small and medium sized companies.
EXPLORING ALTERNATIVE LENDING SOLUTIONS IN CANADA
What are some of these solutions for small and medium sized firms such as yours? What do they cost, and how do they work to allow you to sell more of your innovative products and services? Let's dig in!
IS ALTERNATIVE FINANCING THE NEW NORM IN BUSINESS FINANCING?
Commercial finance firms and alternative financiers are, for the most part, unregulated businesses. While that might seem to some as that ' wild west connotation to business owners, the reality is that they aren't subject to a lot of the reporting and lending rules that Canadian chartered banks are subject to.
ALTERNATIVE FINANCE VERSUS TRADITIONAL BANK LENDING
These firms are also perceived as more ' nimble,,' and the bottom line is that they are more willing and likely to lend to businesses (and in a much speedier fashion!) - The trade-off is usually a higher cost of borrowing. In essence, it's a question of ' access to capital, not ' cost' of capital when it comes to ' non bank ' borrowing for most Canadian small businesses.
THE CHALLENGE OF FINANCING START UPS AND EARLY GROWTH STAGE FIRMS
Although borrowing interest rates are still at historic lows in Canada, there's no mad rush by traditional lending institutions to finance firms in start-up mode or experiencing ' challenges. '
CANDIAN BUSINESS FINANCING ALTERNATIVE LENDING SOLUTIONS
We think the real trick of understanding the world of alternative finance solutions and business funding in Canada for business comes down to understanding the benefits of the following solutions :
A/R financing,
Inventory finance
Tax credit financing
Sale-leasebacks
Equipment financing
PO /contract finance
Asset-based lines of credit
Sales royalty financing
Merchant Cash advance loans
THE COST OF FINANCING IN LOANS FOR SMALL BUSINESSES
Factors including type of financing, size of your loan, and overall credit quality will ultimately determine your interest rate or financing cost. It comes down to managing the cost and debt and ensuring these financing mechanisms are used properly to generate cash flow and profits. The interest rate on Canada's government small business loans is also worth checking out - although not really an 'alternative lending' solution, it is still a way for businesses to achieve loans they might otherwise not be able to get approved for.
We have noted many of these solutions provide short-term financing for the balance sheet, allowing your firm to fund day-to-day operations more comfortably. If you need help to apply for a small business loan or for preparation of a business plan talk to the team at 7 Park Avenue Financial.
Alternative lenders operate in a self-regulated or non-regulated environment, unlike financial institutions such as our Canadian banks.
Some top experts in the U.S. have actually termed these alternative finance firms as ' shadow banks. ‘ Whatever one calls them, they certainly deliver capital quickly.
FUNDING VIA YOUR SALES AND BUSINESS ASSETS
Alternative finance solutions in the SME sector almost always work best when they are getting a business loan for funding sales and assets. Being able to monetize those aspects of a business is really the key to working capital solutions.
WHAT IS THE MOST POPULAR METHOD OF ALTERNATIVE FINANCE FOR CASH FLOW NEEDS?
A/R Financing is probably one of the clearest ways to explain the alternative lending solution in Canada. As businesses generate sales, it's a pure reality that commercial business customers will not pay your firm for anywhere from 30-90 days - that's why financing and suitably structured small loans for businesses are required.
The ability to cash flow this liquid asset (receivables) within 24 hours and use the capital to pay suppliers, purchase inventory, thereby selling more, is a great use of capital. Picking the right A/R financing solution (we recommend Confidential A/R Finance ) allows the business to bill and collect its own receivables, mirroring the exact way in which a traditional bank credit line would run.
CONCLUSION
Need an alternative from banks for business loans in Canada. If you're focused on ' cashing in' on new business financing alternatives for small businesses in Canada, seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your borrowing needs.
Click here for the business finance track record of 7 Park Avenue Financial.
Stan Prokop
7 Park Avenue Financial/Copyright/2021/Rights Reserved
