YOUR COMPANY IS LOOKING FOR BUSINESS FINANCING!
ACCESSING CANADIAN BUSINESS LOANS & FINANCING 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?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
Discover Canadian business financing options you never knew existed!
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Commercial Finance Options 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”
Commercial financing options in Canada surely must seem like the Great Canadian Capital mystery to many business owners and financial managers.
Solving business finance Solutions is all about understanding the ' access ' to capital and the commercial lending landscape in Canada regarding SME (Small Business to Medium Enterprises) working capital and asset financing.
Whether you need financing for business expansion or day-to-day operations, we're here to help! Let's get started.
BREAK FREE FROM THE BUSINESS FUNDING SQUEEZE!
Facing rejection from banks or other traditional lenders is a reality for many small and medium-sized companies in Canada - Business growth can stall, approval timelines are long, and meeting credit criteria is overwhelming. Talk to the 7 Park Avenue Financial team about flexible alternatives to financing your business.
Reasons Why Businesses Fail: The Role of Commercial Funding Options
Business owners and financial managers know there are many reasons why businesses fail or cannot attract money.
To mitigate this risk, businesses can explore alternative financing options, such as commercial loans or business financing options, that offer flexible terms and competitive interest rates. We acknowledge poor management, poor execution, failed strategies, etc.… in the small business landscape, but our focus is on ‘ BUSINESS FUNDING ' and working capital solutions such as lines of credit!
FINANCIAL MANAGEMENT
Inadequate Capital
Inadequate capital is a common challenge for many businesses, particularly those in the commercial real estate sector. Companies may struggle to secure project financing without sufficient capital, leading to delayed or abandoned developments.
To mitigate this risk, businesses can explore alternative financing options, such as commercial or business financing, that offer flexible terms and competitive interest rates.
Additionally, working with experienced account managers can help businesses navigate the complex world of commercial real estate financing and identify the best financing solutions for their needs.
Poor Budgeting
Poor budgeting is another financial management issue that can severely affect businesses.
Without a clear understanding of their financial situation, businesses may overspend or misallocate resources, leading to cash flow problems and decreased profitability.
To avoid these pitfalls, businesses should prioritize budgeting and financial planning, using tools such as financial statements and cash flow projections to inform their decision-making.
By taking a proactive approach to financial management, businesses can ensure they have the funds to pursue their goals and objectives.
LACK OF PLANNING AND STRATEGY
Ineffective Business Strategy
An ineffective business strategy can be a significant obstacle to success in the commercial real estate sector.
Without a clear plan, businesses may struggle to identify opportunities, manage risk, and achieve their goals.
To develop an effective business strategy, businesses should conduct thorough market research, analyze their competition, and identify areas for growth and improvement. They should also prioritize risk management, using tools such as insurance and hedging to mitigate potential losses.
By taking a strategic approach to business planning, businesses can position themselves for long-term success and achieve their objectives.
Inadequate Risk Management
Inadequate risk management is a common mistake many businesses make, particularly those in the commercial real estate sector.
Without a robust risk management strategy, businesses may be exposed to a range of risks, including market fluctuations, regulatory changes, and unexpected events.
To mitigate these risks, businesses should prioritize risk management, using insurance, hedging, and diversification tools to minimize their exposure. They should also conduct regular risk assessments, using data and analytics to inform their decision-making.
By taking a proactive approach to risk management, businesses can protect their assets, minimize losses, and achieve their goals.
ARE CANADIAN BANKS THE ' GO-TO' FOR BUSINESS OWNERS
While Canadian banks are almost always the ‘ go-to ‘for commercial finance, they offer various services to support clients through various stages of land development and construction.
It is clear to all (at least us anyway) that their concentrated power in Canadian financing occasionally works against the SME borrower!
DON'T FORGET GOVERNMENT GUARANTEED LOANS
Canadian banks do address specific needs for solid commercial loan options. If your business is established and has cash flow, profits, and reasonable financials... you're in!
Alternately, the banks are the operating partners in the Government SBL program, with the government guaranteeing loans up to 1.1M $ for equipment, leasehold improvements, computers, software, and real estate. It's a great alternative to an equipment loan/lease finance solution.
We recommend it to many clients as debt financing works—especially for early-stage firms, start-ups, franchises, etc. We encourage all entrepreneurs to check out the Canada Small Business Financing Program.
It's a type of financing that suits many business needs. It offers reasonable monthly payments, including prepayment privileges without penalty.
Business owners are always focused on the ' interest rate,' and the interest rates for government loans are very attractive, as well as having flexible repayment terms.
The maximum loan amount under the financing program is $1,000,000.00, with some conditions around that lump sum loan. A nominal registration fee is also required as part of this government of Canada small business lending solution sponsored by Industry Canada. It is available from a bank or credit union. The borrower must have a good credit score.
CHASING BUSINESS FINANCING .. THE HARD WAY
Because venture capital and private equity funds have hundreds of millions of dollars in them these days, large-scale transactions are required.
That eliminates most of the SME sector unless you’re in an exciting technology area—but many firms are not. Industry experts advise that you can waste days, weeks, months, and years chasing capital from angel investors, venture capital, etc., that is never meant for them, with due diligence taking almost forever.
The bottom line is that it is a failed strategy for 99% of the SME finance marketplace.
SOLUTIONS FOR FINANCING GROWTH IN CANADA
Another key issue in Canadian business finance is ' GROWTH ‘ and eliminating the cash flow gap.
Many clients we meet constantly wrestle with achieving growth financing.
Our preferred solutions and recommendations include:
A/R Financing
Inventory Loans
Access to Canadian bank credit/bank loan revolvers
Non bank asset based lines of credit / Real Estate Bridge Loans
SR&ED Tax credit financing
Equipment / fixed asset financing/ Lease finance / Off balance sheet financing
Cash flow loans
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans / Merchant Advance/Business Credit Cared
Securitization
REQUIREMENTS FOR BUSINESS LOAN APPROVAL
Here's a surprise. Many businesses qualifying for growth / operating commercial financing options aren't approved.
Why? Because they can’t provide simple basics such as clean financials, or an executive summary or a business plan that outlines where the business is going. That includes a cash flow forecast. 7 Park Avenue Financial prepares client business plans that meet and exceed the requirements of banks and commercial lenders.
FINANCING THE BALANCE SHEET - DEBT OR EQUITY OR MONETIZING YOUR ASSETS?
Another key issue is focusing on the difference between debt and asset monetization. Both strategies work, but you need to understand your current balance sheet and cash flow to determine which one will get you to the goal line.
If you or your company is looking to acquire a company, there are some solid ways to finance a merger or acquisition scenario.
In general, a company with assets and cash flow prospects can fairly quickly be financed either through a bank term loan and revolver or a non-bank asset-based lender.
Of course, business owners are reluctant to give up an ownership stake when they do not have to, and industry experts will tell you that debt is cheaper than equity when considering business growth alternatives.
DID YOU KNOW?
- 26% of Canadian small businesses were denied financing in 2023
- Equipment financing grew by 15% year-over-year
- 68% of businesses seek financing for expansion
- The alternative lending market grew 23% in 2023
- Average commercial loan size: $375,000
KEY TAKEAWAYS
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Understanding credit requirements drives successful applications.
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Cash flow analysis determines suitable financing types
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Collateral options expand funding possibilities
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Revenue-based financing offers flexible repayment
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Term length affects the total cost of capital, but other terms must be considered as well
CONCLUSION
Understanding what’s viable in small business financing and the qualifiers for a commercial finance solution only makes sense. That allows you to now say ' We've solved the Great Canadian Capital Mystery '!
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor with a track record of helping Canadian businesses find the required capital.
FAQ
What makes commercial financing better than traditional loans?
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Faster approval processes
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More flexible qualification criteria
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Customizable repayment terms
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Multiple funding options are available
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Less paperwork required
How does equipment financing preserve working capital?
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No large upfront payments
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Tax-deductible payments
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Maintains cash reserves
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Enables technology upgrades
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Preserves existing credit lines
What advantages do alternative lending options offer?
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Revenue-based qualification
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Flexible repayment structures
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Quick funding decisions
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Minimal documentation
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No collateral requirements
How can invoice factoring improve cash flow?
What benefits come with secured business funding?
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Lower interest rates
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Larger funding amounts
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Longer repayment terms
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Better approval odds
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Building business credit
What documentation is typically required for commercial loans?
How long do different financing options take to process?
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Traditional loans: 2-4 weeks
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Equipment financing: 3-5 days
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Invoice factoring: 24-48 hours
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Merchant cash advances: Same day
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Line of credit: 1-2 weeks
What industries qualify for commercial financing?
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Manufacturing
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Retail
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Service businesses
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Construction
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Technology companies
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Healthcare providers
What determines approval chances?
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Time in business
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Annual revenue
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Credit score
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Industry type
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Collateral available
How do repayment terms vary between options?
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Fixed monthly payments
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Revenue-based payments
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Daily remittances
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Seasonal payments
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Interest-only periods
What factors affect commercial financing rates?
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Business credit score
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Industry risk level
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Time in operation
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Annual revenue
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Collateral offered
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Market conditions
How do different financing options impact business growth?
What makes a strong commercial financing application?
