YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS!
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 - OUR EXPERIENCE = YOUR RESULTS!
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Email = sprokop@7parkavenuefinancial.com
SPECIALTY LENDING VERSUS BANK LENDING IN CANADA - EXPLORING THE SOLUTIONS!
Unlock hidden funding sources and fuel your business growth without relying solely on traditional bank loans or bridge financing.
7 Park Avenue Financial provides Canadian businesses with alternative financing, bridge loans, and working capital solutions — helping you save time, protect cash flow, and seize new opportunities.
The Capital Gap Crisis Facing Canadian Business Owners
Traditional lenders move too slowly when opportunities knock. You've found the perfect property, landed a major contract, or need to act fast—but your capital is tied up. Conventional financing takes months while deals evaporate.
Let the 7 Park Avenue Financial team show you how Business bridge loans in Canada solve this timing crisis, delivering short-term capital within days so you can act decisively when every moment counts.
UNCOMMON TAKES ON BUSINESS BRIDGE LOANS
- The real cost isn't the interest rate—it's the opportunity cost of waiting: Business owners often fixate on the higher interest rates of bridge loans compared to conventional financing, missing the bigger picture. The true calculation should compare the cost of bridge financing against the cost of a missed opportunity, delayed revenue, or competitive disadvantage. A property that appreciates 15% while you wait six months for bank approval makes the bridge loan's higher rate look like a bargain as you focus to secure long term financing to meet current and future financial obligations
- Bridge loans work best as part of a planned exit strategy, not a desperate measure for day to day business operations: The businesses that succeed with bridge financing are those that secure it before they're desperate. Having a bridge loan arranged as part of your financial toolkit—before you need it—gives you negotiating power and strategic flexibility that desperate borrowers never have.
BRIDGE FINANCING AND SPECIALTY LENDING EXPLAINED
Business finance in Canada doesn’t move at the speed many owners and financial managers need.
When traditional lenders can’t meet your timelines or risk profile, specialty lending and bridge financing provide practical, faster, and more flexible options.
These solutions help small and mid-sized companies fill critical funding gaps and capitalize on growth opportunities.
COMMON SPECIALTY LENDING NEEDS
Canadian companies turn to specialty lenders for situations such as:
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Management or leveraged buyouts (MBO/LBO) – enabling ownership transitions.
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Recapitalizations – injecting working capital into cash-strapped operations.
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Expansion financing – supporting growth and new contracts.
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Turnarounds and restructurings – stabilizing firms under financial pressure.
Each solution is designed to restore financial control and position your business for sustainable success.
WHEN BANK LENDING ISN’T AN OPTION
Traditional banks and insurance lenders follow strict regulatory limits on the risk they can take.
If your business lacks strong profitability, equity, or collateral, your financing request may fall outside their “credit box.”
That’s where specialty and non-bank lenders step in with bridge financing — evaluating your company’s assets, cash flow, and operations rather than focusing solely on credit scores.
BRIDGE FINANCING: A SHORT-TERM STRATEGY FOR LONG-TERM GROWTH
Bridge loans offer temporary funding when timing is critical.
Although they often carry higher costs, they give you access to capital when conventional credit channels are closed.
The key decision for every borrower: cost of capital vs. access to capital.
Used wisely, a bridge loan becomes a stepping stone toward stability, refinancing, or expansion.
Typical short-term uses include:
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Refinancing debt or expiring credit lines
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Funding acquisitions or buyouts
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Covering working capital gaps
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Financing large purchase orders
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Managing turnaround or restructuring plans
BRIDGE LOAN COSTS AND PRICING FACTORS
The cost of bridge and specialty financing depends on several factors:
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Asset quality and collateral value
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Borrower’s business performance and cash flow via a repayment schedule
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Exit strategy and repayment timeline
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Loan size relative to company equity
While rates are higher than bank loans, they deliver speed, flexibility, and access when time and opportunity matter most.
7 Park Avenue Financial always recommends preparing:
POPULAR ALTERNATIVES TO BRIDGE FINANCING
Many non-bank financing options provide faster access to working capital than traditional loans and growth funding:
Comparison: Bank Lending Versus Specialty Lending in Canada
| Criteria |
Traditional Bank Lending |
Specialty / Non-Bank Lending |
| Approval Time |
4–8 weeks with full financial review |
5–10 business days, faster approvals |
| Primary Focus |
Credit score, profitability, and debt ratios |
Asset value, cash flow, and repayment potential |
| Loan Flexibility |
Rigid lending criteria and covenants |
Flexible structures tailored to borrower needs |
| Collateral Requirements |
Strong collateral and owner guarantees required |
Collateral-based; may accept unconventional assets |
| Interest Rates |
Prime to Prime + 3% |
Prime + 4% to 12% depending on risk |
| Loan Terms |
Medium to long term (2–10 years) |
Short term (6–18 months) or project-based |
| Eligible Borrowers |
Established businesses with strong financials |
SMEs, growth firms, or companies under transition |
| Use of Funds |
Conventional purposes like real estate or equipment |
Bridge loans, MBOs, refinancing, or turnaround capital |
| Documentation |
Extensive financial statements and audits |
Streamlined; focused on asset appraisals and projections |
| Decision Drivers |
Historical performance and compliance |
Forward-looking potential and liquidity value |
UNDERSTANDING NON-BANK LENDERS
In Canada, non-bank lenders are often categorized as “B” or “C” lenders, depending on their risk appetite.
These lenders specialize in customized financing for mid-market companies that fall outside traditional lending criteria.
WHAT TO EXPECT FROM A BRIDGE LOAN
Most bridge loans:
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Are secured by business assets (receivables, equipment, real estate).
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Require personal guarantees or limited recourse to show good faith.
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Run for 6–18 months, allowing time to restructure or refinance.
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Carry higher interest rates, reflecting increased lender risk.
Stable, asset-rich companies often secure better rates than startups or firms with weak balance sheets.
WORKING WITH A BUSINESS FINANCE ADVISOR
Selecting the right specialty finance advisor ensures a faster, smoother process.
Look for:
CASE STUDY
Company: ABC Company, Winnipeg, Manitoba
Challenge: ABC Company, a precision parts manufacturer, landed a $750,000 aerospace contract requiring $300,000 in upfront material costs. With client payment terms at net-60 and a pending bank credit line still 8–10 weeks from approval, the company risked losing the order and a valuable long-term customer.
Solution: Partnering with 7 Park Avenue Financial, ABC Company secured a $300,000 bridge loan in just five business days, using existing equipment as collateral. The six-month loan offered interest-only payments for the first four months, reducing cash flow pressure until project completion.
Results: ABC Company delivered the order on time, received payment within 75 days, and repaid the loan in full after five months. Total financing costs were $11,500 against a $185,000 profit margin. The success led to a $2.3 million annual supply agreement with the aerospace client and completion of their new bank line, fueling continued growth.
KEY TAKEAWAYS
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Specialty lending fills gaps left by traditional banks.
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Bridge loans provide short-term working capital when time is critical.
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Alternative lenders prioritize asset value and operations over credit score.
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Costs are higher but justified by access, flexibility, and speed.
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A solid business plan and exit strategy strengthen your funding case.
At 7 Park Avenue Financial, we align financing to your business model and capital structure — helping you implement solutions with confidence and speed.
FAQ
1. What is specialty lending in Canada?
Specialty lending refers to non-bank business loans that offer flexible financing for companies unable to qualify for traditional bank credit.
2. How does bridge financing work?
Bridge loans provide short-term funding to cover gaps between immediate cash needs and long-term financing or revenue events.
3. Why choose a specialty lender instead of a bank?
Specialty lenders evaluate business performance and assets, not just credit history, offering faster approvals and flexible terms.
4. What are common uses for bridge loans?
Refinancing, acquisitions, working capital, equipment purchases, and turnaround financing.
5. How much do bridge loans cost in Canada?
Rates vary from Prime + 4% to 12%, depending on collateral, business strength, and loan duration.
6. What is the typical term for a bridge loan?
Most range from 6 to 18 months, giving businesses time to stabilize or refinance.
7. Can startups qualify for specialty lending?
Startups rarely qualify unless backed by strong collateral or government programs.
8. What collateral is used for alternative financing?
Assets such as receivables, inventory, equipment, or real estate are common security types.
9. How fast can funds be accessed?
Most specialty loans close within 5–10 business days, depending on due diligence and collateral.
10. Who can help secure bridge or specialty financing?
A trusted finance advisor like 7 Park Avenue Financial can source the best structure, rate, and lender for your business needs.
STATISTICS ON BUSINESS BRIDGE LOANS
- Bridge loans typically carry interest rates ranging from 8-18% annually in Canada, compared to conventional business loans at 7-10%
- The average business bridge loan in Canada ranges from $50,000 to $5 million, with approval timelines of 3-7 business days versus 6-12 weeks for traditional financing
- Approximately 65-75% loan-to-value ratios are standard for bridge financing secured by commercial real estate
- Studies indicate that 73% of small and medium-sized businesses face cash flow challenges at some point, with timing gaps between payables and receivables creating urgent capital needs
- Bridge loan terms in Canada typically range from 3-12 months, with 82% of borrowers successfully exiting through their planned strategy
- The Canadian alternative lending market, which includes bridge financing, has grown by approximately 23% annually over the past five years
- Private lenders now provide an estimated 30% of commercial real estate financing in major Canadian markets, with bridge loans representing a significant portion
CITATIONS
- Canadian Bankers Association. "Small Business Financing in Canada: Market Trends and Challenges." Toronto: CBA Publications, 2024. https://www.cba.ca
- Financial Consumer Agency of Canada. "Understanding Business Loans and Alternative Financing Options." Ottawa: Government of Canada, 2024. https://www.canada.ca/en/financial-consumer-agency.html
- Canadian Federation of Independent Business. "Access to Financing: A Survey of Canadian Small Business Owners." Toronto: CFIB Research, 2024. https://www.cfib-fcei.ca
- Mortgage Professionals Canada. "Alternative Lending: The Growing Role of Private Mortgage Investment in Canadian Commerce." Ottawa: MPC Industry Report, 2024. https://www.mortgageproscan.ca
- Innovation, Science and Economic Development Canada. "Key Small Business Statistics." Ottawa: Government of Canada, 2024. https://www.ic.gc.ca
- Bank of Canada. "Credit Conditions Survey: Business Lending Trends." Ottawa: Bank of Canada, 2024. https://www.bankofcanada.ca
- 7 Park Avenue Financial ."Financing Services" https://www.7parkavenuefinancial.com/financing-services.html
