YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE OPTIONS!
COMMERCIAL LOANS FOR SMALL BUSINESS FUNDING NEEDS IN CANADA
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 - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Are you a business owner struggling to secure financing for your expansion plans? Explore commercial financing in Canada for tailored financial solutions!
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer COMMERCIAL LENDING solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
Empowering Entrepreneurs: Maximizing Profits Through Commercial Lending
INTRODUCTION
We maintain that business finance doesn't have to be a mystery to the thousands of businesses in Canada that are constantly searching for commercial business loan solutions that meet their requirements.
And as for the word ' Pristoractional ' -? We made it up - it doesn't exist, but the word ' SOLUTIONS ' does, and they can be found without any help from the world's greatest minds! Let’s dig in.
Access to Commercial financing is a cornerstone in fueling business growth, offering tailored financial solutions to address diverse business needs.
Whether funding for equipment purchases, real estate acquisition, or working capital requirements, commercial funding provides the necessary capital to drive business success.
DEBT AND CASH FLOW FINANCING CONSIDERATIONS
Taking on debt or ' monetizing ' existing assets must always have repayment is taken into consideration - from the bank or commercial lenders' perspective, that's the focus.
HOW DOES A COMPANY DEMONSTRATE REPAYMENT ABILITY FOR COMMERCIAL LOANS FOR BUSINESS
Business owners/managers need to demonstrate clear repayment when considering commercial financing.
That demonstration comes from monetizing assets (inventory/receivables), past historical cash flow, or current ongoing profit generation. Repayment of asset monetization financing (lines of credit, etc.) must be demonstrated through asset turnover. We're constantly amazed at how many owners/managers don’t understand how asset turnover impacts equity returns.
More amazement? Business plans that focus primarily on sales and 'hockey stick' type projections without realistic assumptions on cash flow, collection turnover, etc. 7 Park Avenue Financial business plans meet and exceed the requirements of Canadian banks and commercial lenders.
THE CANADA SMALL BUSINESS FINANCING PROGRAM
If your business does have profits, you are significantly more eligible for financing such as term loans. Start-up or early-stage revenue firms who can demonstrate reasonable cash flow and profit projections are advised to check out the Federal Government Guaranteed Small Business Loan program. By the way, it can also be used to purchase an existing business and consider traditional bank loans for businesses via acquiring another company.
UNSECURED LOANS
UNDERSTAND YOUR OPERATING CYCLE
Your ability to articulate your business's' Operating Cycle ' allows you to access significant capital when financing current assets.
CANADIAN BUSINESS FINANCING SOLUTIONS & OPTIONS
Those financing options include:
Bank operating lines / Commercial banking facilities / Corporate Loan
Asset-based non-bank lines of credit
Receivable Financing
Inventory Financing
A/R financing / Confidential Accounts Receivable Financing
Refundable Tax Credit Financing (Most commonly the SR&ED program)
Real estate bridge loans / construction loans
PO Finance
Lease Financing / Equipment Financing
Revenue-based loans
Short-term working capital loans / Merchant Advance - A higher interest solution but very popular because it provides fast and easy capital to businesses
COMMERCIAL LOAN RATES CANADA :
Commercial finance companies, banks, etc. base their interest rates and financing cost on criteria such as overall credit quality, transaction size, type of financing ( e.g. traditional or alternative )
Many businesses require the purchase of assets to either operate more efficiently or stay competitive. Here, solutions abound in Equipment financing and leasing. Any asset or technology from 2k to the millions can be financed based on asset equality and proof of repayment ability.
Commercial real estate can be acquired via various business finance options for company-owned premises.
These solutions are typically a long-term loan with a longer amortization but various other solutions, such as a bridge loan or an asset-based loan, based on criteria such as overall credit quality and repayment ability and consideration for such topics as ' loan to value ' ratios, etc. Those factors will also significantly impact the interest rate on the transaction when considering commercial lending rates and comparing your options.
Aside from bank financing, these commercial lending & financing facilities are very much based on your actual sales and ability to collect and turnover assets.
CONCLUSION
So, what's the bottom line of the commercial lending process for small businesses? With the proper assistance and focus, you can leverage your balance sheet, access cash flow through existing assets, or utilize current and future sales potential to monetize your business assets and sales properly.
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you in the right borrowing solution .. solving the mystery of business loans for your business needs!
FAQ: FREQUENTLY ASKED QUESTIONS PEOPLE ALSO ASK MORE INFORMATION
What are the key benefits of commercial lending for businesses?
Commercial lending offers businesses access to tailored financial solutions for various needs at competitive interest rates, including business expansion, equipment purchases, and working capital, enabling sustainable growth and development.
How does the loan application process in commercial lending typically work?
The loan application process involves submitting relevant financial documents for assessment, such as business plans and financial statements. Lenders evaluate creditworthiness, collateral, and repayment terms to determine loan eligibility and interest rates.
Can commercial lending help businesses with poor credit histories?
While having a solid credit history can improve loan terms, some commercial lending options are customized solutions that cater to businesses with less-than-perfect credit. Alternative lenders may offer solutions like asset-based lending or invoice financing, which rely less on credit scores.
What types of collateral are commonly accepted in commercial lending?
Collateral can vary depending on the lender and the type of loan. Typical forms of collateral include real estate, equipment, inventory, accounts receivable, and business owners' personal assets.
How long does it typically take to secure funding through commercial lending?
The time to secure funding can vary based on factors such as the complexity of the loan, the lender's review process, and the completeness of the borrower's application. In some cases, funding can be obtained within a few days, while more complex loans may take several weeks to finalize.
How do interest rates in commercial lending compare to those in personal loans?
Commercial lending interest rates are typically higher than personal loans due to the increased risk associated with business borrowing. Factors such as the business's creditworthiness, loan terms, and prevailing market conditions influence the interest rate offered.
Can commercial lending be used for startups, or is it primarily for established businesses?
While commercial lending is often associated with established businesses, some lenders offer financing options specifically for startups. These may include SBA loans, equipment financing, or lines of credit designed to support new companies during their initial growth phases.
Are there any tax benefits associated with commercial lending for businesses?
Depending on the type of loan and its intended use, businesses may be eligible for certain tax benefits related to interest payments or depreciation of financed assets. However, it's essential to consult with a tax professional to understand the specific implications for your business.
How does collateral impact the terms of a commercial loan?
Collateral serves as security for the lender if the borrower defaults on the loan. The presence of valuable collateral can lower interest rates and increase the likelihood of loan approval, as it reduces the lender's risk.
What role does creditworthiness play in commercial lending?
Creditworthiness, assessed through credit scores, financial history, and debt-to-income ratio, helps lenders evaluate a borrower's ability to repay a loan. A strong credit profile can lead to more favorable loan terms, including lower interest rates and higher borrowing limits.
What are the main differences between traditional bank loans and alternative commercial lending options?
Traditional bank loans typically have stricter eligibility criteria, longer approval processes, and lower flexibility compared to alternative lending options. Alternative lenders may offer faster approvals, more lenient credit requirements, and customized financing solutions tailored to business needs.
