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
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 having an understanding of the commercial lending landscape in Canada when it comes to SME (Small Business to Medium Enterprises) working capital and asset financing. Whether it's business expansion or day to day funding we're talking about your financing needs! Let's dig in.
REASONS WHY BUSINESSES FAIL
Business owners and financial managers know there are a lot of reasons why businesses fail, or why they can’t attract money. We acknowledge poor mgmt, poor execution, failed strategies, etc... in the small businesses landscape, but our focus is on ' BUSINESS FUNDING and working capital solutions such as lines of credit!
ARE CANADIAN BANKS THE ' GO TO ' FOR BUSINESS OWNERS
While Canadian banks almost always are the ' go-to ' in commercial finance 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 certain needs for solid commercial financing options. If your business is established, has cash flow, profits, reasonable financials... you're in! Alternately the banks are the operating partner in the Govt SBL program - with the government guaranteeing loans up to 350k for equipment, leasehold improvements, computers, software, and real estate. It's a great alternative to an equipment loan/lease finance type of solution. It's a recommendation we make for many clients as it is debt financing that 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 with monthly payments that make sense, 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 coming with flexible repayment terms.
The maximum loan amount under the financing program is $ 1,000,000.00 with some conditions around that lump sum loan and a nominal registration fee is also required as part of this government of Canada small business lending solution sponsored by Industry Canada and is available from a bank or credit union. A good credit score is required by the borrower.
CHASING BUSINESS FINANCING .. THE HARD WAY
Because venture capital and private equity funds have hundreds of millions of dollars in them these days this forces transactions to be done that are on a large scale. 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, years chasing capital from angel investors, venture capital, etc that is never meant for them - with due diligence taking almost forever . Bottom line - 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 wrestle constantly 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/Busienss Credit Cared
Securitization
REQUIREMENTS FOR BUSINESS LOAN APPROVAL
Here's a surprise. Many businesses that would qualify for growth / operating commercial financing options don't get approved. Why? Because they can’t provide simple basics such as clean financials, or an executive summary or business plan that outlines where the business is going. By the way, 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 of those two solutions 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 easily be financed either thru a bank term loan and revolver or alternatively a non-bank asset-based lender.
Business owners are of course 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.
CONCLUSION
Understanding what’s really viable in small business financing and what the qualifiers are when it comes to a commercial finance solution only makes sense. That allows you to now say ' We've solved the Great Canadian Capital Mystery '! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of helping Canadian business find the capital they require.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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