YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE!
SMALL BUSINESS FINANCING BUSINESS LOAN SOLUTIONS 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?
CALL NOW - 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
Unfortunately for many owners/ financial managers (especially those in the COMMERCIAL SME sector), business finance funding in Canada is to paraphrase our friend Shakespeare... MUCH ADO ABOUT SOMETHING. That is the challenges faced by companies who require, among other things, business refinancing and monetization of assets. Let's dig in.
DOES BUSINESS REFINANCING REQUIRE SOME PATIENCE?
If there is any good news, the options available in business loans require some patience and expertise. By that time, typically, the business has started to grow into revenue. They have passed the ' friends and family' phase, including popular options today such as ' crowdfunding.'
3 KEY AREAS - SALES /ASSETS... & CASH FLOW!
Business financing is all about sales, assets, and cash flow. Without all of those in some measure, options such as additional equity capital must be explored.
HOW CAN CANADIAN BUSINESS FUND R&D
In Canada, those firms that are involved in R&D in some manner have the unique benefit of being able to utilize the SR&ED refundable tax credit program; they are now able under that fed./prov. Program to recover a large majority of their r & d spend. Even more good news is that the program is 100% financeable, allowing firms to monetize / cash flow those credits and eliminate the waiting period for the refund. The ability to get paid back for research and development is a concept utilized by thousands of firms every year. The government refunds billions of dollars in this area - Are you getting your share?
What then must the owner/manager do to access the right funding at the right time? The answer is the business equivalent of going back to school ' - You need to educate yourself on the different methods of financing available, how they work, and what they can do, or not do, for your firm. Naturally, the interest rate and cost of financing will always be top of mind for the borrower and the overall ability to repay the loan. Business credit will always be a challenge, and as your firm grows, the working capital challenge will always increase.
In many situations, your firm may be required to have a business plan in place with proper cash flow projections. 7 Park Avenue Financial business plans meet and exceed the requirements of Canadian banks and other commercial lenders.
BASIC BUSINESS FUNDING OPTIONS IN CANADA
A quick recap of the basic funding options is as follows:
A/R Financing
Inventory Finance
Working Capital Term Loans
Tax Credit Monetization Financing
Government Guaranteed Business Loans
PO/Contract financing
Sales royalty financing
Asset-based business credit lines - revolving facilities that allow you to borrow against receivables, inventory and equipment
Equipment Leasing/ Sale Leasebacks
Merchant Cash Advance / Short-term working capital loans - higher interest rates by easily accessible 'fast capital.'
For a small business loan in Canada, there is often an emphasis on the owner/owners' credit score and the personal credit history of the owner/owners. As one expert has said, ' in small business, the company's credit score is the same as the credit score of the owner!' Many small businesses turn to angel investors and venture capitalists.
They are disappointed to find that only the smallest percentage of Canada's businesses can qualify for such funding, which typically is equity funding that dilutes ownership. Venture capital and small business lending typically don't go together for the type of financing in the short term that you require, which is typically a bank loan or alternative lending finance.
Don't forget to consider a government loan via the Canada Small Business Financing Program, which various financial institutions sponsor. These term loans come with a monthly payment structured over a 2-5 year term. It's a lump sum term loan that again, as we have noted, comes with the requirement of the business owner ' good credit '. The pay back flexibility and the ability to access funding for new equipment and leasehold improvements over the long term appeal to thousands of businesses every year who access the program.
You need to know this is not a line of credit or accounts receivable/working capital funding - it's a term loan to fund assets & leaseholds. Business owners who want to access the program should talk to our 7 Park Avenue Financial team. You may want to satisfy some of those business needs with the government loan program, often called the ' SBL Loan'.
WHAT ARE THE REQUIREMENTS TO QUALIFY FOR BUSINESS FINANCING
After you understand each of those offerings' basics, it's important to ensure you can supply the information needed to ensure you qualify for one or a number of those offerings. That might include a business plan, cash flow forecast, and asset schedules around receivables, inventory and fixed assets.
ESTABLISH CONTROL OVER YOUR FINANCES
Concerning being prepared, it's a very safe bet that if you can demonstrate control and knowledge of your business finances, you're in a much better place when it comes to finance funding approval.
CONCLUSION
If you want to address the problem of refinancing or funding your business and want some help in the time it takes to source the right solution, seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can shorten that timeline.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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