YOUR COMPANY IS LOOKING FOR FINANCING FOR YOUR BUSINESS!
ACCESSING THE RIGHT BUSINESS LOANS 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
Suite 301
Oakville, Ontario
L6J 7J8
Business finance in Canada. When it comes to loan financing in Canada we're the first to admit we hate it when people flog a dead horse, as the expression goes. (Is that even politically correct to say?)
So we promise that this will be the last installment on the revelations we got when we participated in a CEO summit for BDC. The subject - Access to financing and nothing interests us more than that! While a survey posts questions and responses we thought it even more prudent to add some real-world commentary and throw in some solutions.
FINANCING IS A CHALLENGE FOR SMALL AND MEDIUM-SIZED BUSINESSES IN CANADA
It was no surprise to us of course that 62% of Canadian business owners and financial managers found financing their business both difficult and ‘somewhat difficult '. Bottom line, half of your competitors are in the same boat as you, so don't feel overly bad.
THE LONG ROAD TO EQUITY FINANCING
The survey also revealed that many new businesses are out there seeking equity financing of some form. While only a very minute amount of Canadian firms are successful in seeking VC or Private equity financing many business owners/managers still feel their firms are candidates for some sort of equity finance. Sadly few get to the goal line. Naturally, if you've got the greatest story ever told, sales, profits, and high growth potentials those friendly VC guys will be all over you. Good luck with that.
So if equity or quasi-equity financing isn’t in fact available for your firm you've basically got two other solutions - take on term debt or our favourite, monetize and finance existing assets via a business loan tailored to your needs.
As a business owner are you sure that you have explored every aspect of asset and cash flow financing.
CANADIAN BUSINESS FINANCING SOLUTIONS
These include:
A/R Financing
Inventory Loans
Access to Canadian bank credit Commercial bank financing from our Chartered banks and government crown corporations
Non bank asset based lines of credit
SR&ED Tax credit financing
Equipment / fixed asset financing New or Used Equipment can be financed
Cash flow loans/ business credit cards
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance Owner credit score and personal credit is key in these programs, they are easily accessible but come at a higher interest rate- loans are often approved in 24 hours via easy application processes - A typical loan amount is less than 200k
Securitization
The Canada Small Business Financing Program is a solid solution for many small businesses in Canada, Sponsored by Industry Canada it's a term loan for the acquisition of financing for leasehold improvements, equipment and real estate. It's arguably one of the best small business loans in Canada for startups, early-stage companies, and even franchises that utilize the program on a significant basis.
More often than not you're eligible for any or most of the above simply because your business is growing. As our survey noted if you're downsizing your company, outsourcing, or finding your business in a death spiral financing is going to always be more of a challenge. Not impossible, but a challenge. Interest rates for small business will vary depending on the type of financing accessed, the amount of financing, and the overall business credit profile.
TRADITIONAL FINANCING VERUS ALTERNATIVE FINANCING IN CANADA
43% of all Canadian business respondents in the survey indicated they were either unsuccessful or only partially successful in getting the financing they received. A good example of a solid solution as per above? Many companies don’t meet qualifications for bank financing these days, simply because their ratios and covenants are out of order. However, they are absolutely eligible for an asset-based line of credit from a non-bank commercial lender. The upside? This solution actually gives you more financing than you would obtain from a chartered bank facility. Trust us!
KEY BUSINESS FINANCE NEEDS
The main categories for business finance needs in the survey are those that clients talk to us about every day. Common reasons for the need to access funding include "
Equipment and Technology Assets
Inventory finance
Lines of credit/ working capital/ short term business loans
Leasehold improvements
WHY MANY BUSINESSES IN CANADA CAN'T ACCESS BUSINESS FUNDING SOLUTIONS
Your peers and competitors in the survey indicated they didn’t receive access to financing because of the size of their firm, their inability to meet ' ratios’, or their inability to provide solid personal guarantees and additional collateral.
CONCLUSION
While our great banks in Canada provide over 64% of all financing to business make sure you explore the firms and type of financing that provides the other 36%. Your finance business needs when successfully attained will allow you to grow revenues for your products and services. 43% of all companies in Canada maintain they utilize a trusted, credible and experienced Canadian business advisor or firm to help them with their financing needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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