YOUR COMPANY IS LOOKING FOR CANDIAN BUSINESS FINANCING SOLUTIONS
FINANCING FOR BUSINESS IN CANADA
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the most significant 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 options and solutions often come down to either borrowing to take on new debt or monetizing assets. Financing will take on one of these two forms to achieve the financing solution that your company needs. But is it better to borrow or monetize? Let's dig in.
' FUNDING GAP FOR SMALLER SUMS HURTS GROWTH OF CANADA'S MID SIZED FIRMS. REPORT FINDS - FINANCIAL POST -FEB 12/21
No secret to our team here at 7 Park Avenue Financial regarding the headline in one of Canada's leading business newspapers. In fact, this was the commission of the findings by the federal government, the article advises. Other key findings in the article
Small businesses have few financing options.
Canadian market more conservative
Cost of capital higher in this tier of business
The burden of producing higher quality financial statements
The 'Covid' factor
Growth capital has improved - but not spread out equally!
Sector-based businesses - is your industry ' out of favour'?
WHAT TYPE OF BUSINESS FINANCE SOLUTION IS NEEDED? IDENTIFYING WAYS TO FINANCE YOUR BUSINESS
Identifying the right type of small business loan financing your company needs will always keep you on top of staying competitive and successful and, in the extreme, avoiding business failure.
At the end of the day, it comes down to knowing which solutions & financing options make sense for your firm and your industry (some do not). The comfort that comes from knowing you have access to cash flow and capital can only be described as a good feeling!
SMB FIRRMS HAVE LESS CHOICES THAN LARGER CORPORATIONS
Companies in the SME COMMERCIAL (small to medium enterprise) sector generally have fewer choices than larger corporations or firms having public company listed status. Financing a startup is even a more significant challenge in the current economic environment.
IDENTIFYING CASH SHORTFALLS
So how does the business owner/financial manager avoid a cash flow shortfall? And we're not talking about friends and family/angel investors/venture capital borrowing! It boils down to a simple piece of thinking - knowing your asset-based and how it's monetized - understanding the timing of inflows and outflows of small business in Canada. Easier said than done, right?
UNDERSTANDING THE STATEMENTS OF CASH FLOWS IN YOUR FINANCIAL STATEMENTS - WHERE GOT/WHERE GONE!
One of the great ironies in business lies on page 3 of your business financial statement. It's the cash flow statement, and when properly understood, it allows the owner/manager to identify why the firm is having problems even when sales are growing quickly. Your accountant advises that ( paper ) profits are being generated.
CANADIAN BUSINESS FINANCING SOLUTIONS
Asset monetizing solutions from Canadian finance companies/banks and credit unions such as:
Canadian chartered bank loan credit facilities/business loan
Receivable Financing/factoring line of credit / Confidential Receivable Financing
Inventory Financing
PO/Contract financing
Non-bank asset-based lines of credit - click here for more info on ABL lines
SR&ED Tax credit financing
Those are ' asset monetization' strategies that will increase operating cash flow. These come at different costs and work differently, but they all solve the same problem at the end of the day.
TERM LOANS AND ACQUIRING DEBT
For business owners, to take on debt to fix the cash flow problem might entail considering a working capital term loan. Careful consideration should be given to that strategy because it has fixed payments and adds debt to the balance sheet, in effect changing what the Bay St boys call your ' capital structure.'
TWO KEY POINTS IN THE BUSINESS FINANCE OPTION CONSIDERATION
The key point we are making essentially is that your business finance options boil down to understanding:
Working Capital
Cash Flow
Your working capital accounts, i.e. accounts and inventory, can be used to generate business cash in the world of small business financing. The more assets you have, the more access to capital you will almost always have. On the other hand, cash flow is simply the timing of profits generated over a period of time.
CONSIDER THESE DEBT OPTIONS
That allows you to consider adding debt options such as:
Lease financing
Term loans
Bridge Loans
Sale Leasebacks
CAN INTERNAL ASSET TURNOVER MANAGEMENT BE THE SOLUTION TO YOUR FUNDING CHALLENGE?
Unfortunately, no one arrives to give you a heads up warning about future financing needs in business loans. All along the way, the owner /manager can address some issues internally - tighten credit terms, manage payables, focus on better asset turnover of a/r and a/p, etc.
BE PREPARED IN YOUR LOAN APPLICATION
If required, be prepared to present reasonable cash flow projections and a business plan that correctly defines your business and its growth and profit potential. 7 Park Avenue Financial business plans meet and exceed bank and commercial, and alternative lender requirements.
LET 7 PARK AVENUE FINANCIAL BE YOUR BUSINESS FINANCE COMPANY AND GET YOU ' CLEARED TO GO' IN BUSINESS FUNDING
When you want to be ' cleared to go ' for solutions for small businesses and in monetizing your assets or taking on new debt either traditionally or with alternative finance solutions, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business finance options. Short term and permanent long term solutions are available in financing options around financing small businesses you may not even have considered.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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