YOUR COMPANY IS LOOKING FOR BUSINESS FUNDING OPTIONS!
BEST BUSINESS FINANCE & FUNDING OPTIONS
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing businesses 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
SOURCES OF FUNDS FOR BUSINESS IN CANADA / SMALL BUSINESS FUNDING OPTIONS
Business funding options in Canada. And we have to say. This is starting to get embarrassing because it seems as if these days, all of a sudden, all the experts seem to agree with what we've been preaching all along. And to prove it? ... There it was again - a major article on financing a business just the other day in one of Canada's two best daily business papers entitled ‘ CANADIAN SMALL BUSINESS FALTERING DUE TO LACK OF FUNDING ' -
Wow, is it just us, or is everyone finally catching on? And the gist of the article - summarized it would be as follows: There are fewer mid-sized companies these days.
Competition and the ability to ' access capital ' were driving businesses to failure - Sources of Cash Are Critical when access to a bank loan and support is not available - Knowing your financing option for business growth becomes job 1! Many mid-sized firms are getting smaller, not bigger!
And the solution offered in the article - ' MORE RESEARCH’!!!!! - And let's not even talk about the challenge of accessing funding sources for startup businesses and where to find sources of cash flow to achieve growth potential in your business.
BUSINESS OWNERS WANT REAL-WORLD / REALISTIC FUNDING OPTIONS THEY CAN ACCESS IMMEDIATELY
We're all for academia, but we work in the real world every day, so let's discuss and offer some real-world solutions around financing options and a way to get alternative funding sources for small business on Canadian Business Financing! And we're talking about financing that you can be proud of when it comes to high growth, profits and costs commensurate with your credit quality and business funding source needs.
FINANCING SOLUTIONS ARE REQUIRED FOR LOANS TO START A BUSINESS AS WELL AS GROW A BUSINESS
So how, in fact, do you access sources of cash flow when it comes to assessing the need and availability of solutions for different types of business loans and methods of finance? Canadian business owners are looking for straightforward solutions to finding funding for short-term and long-term needs. Those funds are used for starting, funding, or growing your firm.
NO ONE SINGLE BUSINESS FINANCE SOLUTION MAY FIX ALL YOUR FUNDING CHALLENGES
In fact, we feel that many funding sources for a business venture are overlooked or not even utilized properly. Oh, and by the way, there's probably no single perfect solution for financing your firm - it’s a mix of pros and cons and risks based on the amount and type of business funding you're seeking based on your business capital and working capital needs.
TWO KEY POINTS IN HOW TO GET FUNDING FOR YOUR BUSINESS
Critical to the aspect of sourcing funding for your firm ( that's besides some expert help!) is:
1. Ensuring you understand both warning signs of capital issues in your company
2. Criteria required for the solutions to business credit needs Those two points can save you a lot of time.
As we have hinted, you only will find out the solutions to your financing needs when you recognized proper warning signs and need. Liquidity is very close to the top of the pile! Your ability to operate daily is key to satisfying senior lenders who have financed your firm.
HERE ARE SOME MAJOR FUNDING OPTIONS TO HELP YOUR BUSINESS SURVIVE AND GROW
In Canada, numerous business finance options are available via small business lending to bolster your firm’s success. They may involve 1 type of financing or a cobbling together of solutions - In many cases, they are small business financing options that bypass traditional banks.
9 WAYS TO FINANCE A BUSINESS: Additional Sources of Lending for Small and Mid-Sized Loans
A/R FinancingInvoice financing or factoring
Inventory Business Loans
Access to Canadian bank credit/lines of credit/term loans Traditional bank loans and financing comes with the best interest rates and a source of unlimited capital for qualifying companies needing bank loans. A good credit report on owners is required.
Non-bank asset-based lines of credit: Alternative business funding options for business credit lines
Equipment / fixed asset financing
Cash flow loans
SR&ED Tax Credit Financing / Grant Finance - small business innovation research
Merchant Cash Advances / Business Credit Card / Online Loans / Business Funding Options - Good owner credit score/personal credit history required - online business funding options have become increasingly popular despite higher costs/interest rates, etc -
These solutions are not traditional loans - the financing formula on this loan option is based on your sales revenues and the credit scores of the business owner - they are easily accessible and provide maximum flexibility for financing up to several hundred thousand dollars
Royalty finance solutions
Government Of Canada Small Business Loan Program - The Guaranteed federal business loan - The government small business loan is also used for franchise financing requirements - When it comes to how to source funds to start a business, government business loans are some of the best alternatives available. Funding options for a start up are limited, so every solution should be explored.
Typical loan terms are in the (2) two to (5) five years pay back range for amortization. Good credit is required, which typically means a credit bureau score in the 600+ range. When you are looking for funding, it is important to investigate every option around how to finance your startup without a traditional bank loan that comes with significant demand around guarantees outside collateral, etc.
The CSBF program as it is called is a government loan option with participating financial institutions in Canada such as banks or credit unions - The loans are term loan structures with longer amortization terms and very significant changes to the program in 2022 greatly increased the amount and type of financing provided under the loan guarantee with flexible monthly payments .Traditionally items such as goodwill and working capital and credit lines and franchise fees were not funded under the program - now they are!! Talk to the 7 Park Avenue Financial team to see if this program is right for your business.
When it comes to sources of finance for entrepreneurs and government loans, the Government of Canada Crown Corporation, aka Business Development Bank of Canada (BDC): The Bank of Entrepreneurs is also an option.
Those are just some of the most solid and accessible business financing solutions for businesses in Canada.
BORROWER BEWARE!
In the context of funding options for small businesses, remember that Venture capital and angel investors focus on equity financing. This type of financing is available for only the smallest number of qualifying businesses in Canada. As you can imagine, books are written on how to target venture capital firms for business financing.
After your personal investment ' love money/friends and family, 'peer-to-peer marketplace lending, Angels, Small business development center / Business Incubators, convertible debt and government programs or grants have been exhausted, your focus becomes real-world finance solutions! They are typically not sources of business funding options for a new business or early-stage business.
At 7 Park Avenue Financial, we focus on working capital and debt financing and asset-based lending and asset monetization strategies that make sense for funding day-to-day operations and ensuring the ability to grow your business.
START-UP FINANCING FOR STARTUP COMPANIES
Financing to start a business in Canada is very challenging - Along with a solid business plan and financial projections around your project, the ability to source financing is key in addition to your own personal investment/owner equity. Also, entrepreneurs should be able to demonstrate a good credit history along with some appropriate business experience. In some cases, additional collateral will also help your situation.
Bank financing is a challenge for startups as Canadian banks as traditional financial institutions focus on a lending process and requirements that many entrepreneurs can't meet or qualify for. The focus on track record, cash flows and profits are just some of those bank-type requirements. Banks will always want to see a significant shared risk via owner equity contribution.
Many startups rely on so-called' love money ' from friends and family - Although venture capital is often thrown out as a potential funding source 99% of start-ups in Canada don't qualify for anything remotely resembling venture capital investment. High-tech businesses are often the most sought-after VC clients as venture capitalists are looking for hyper-growth situations with high returns to investors -
A closer solution to the VC option is local angel investors who have similar industry experiences and solid contacts and management know-how. The angel investor will always want a board seat or the ability to provide input informally or otherwise.
Many local business incubators, also called business accelerators provide support for new businesses - that support might be in the form of talent, premises, tech resources, etc - Firms typically ' graduate' out of that incubation period as they start to generate revenues. incubators in Canada
BUSINESS GRANTS / GRANT FINANCING
Grants are lump sums of funds for businesses that are usually at the federal, provincial, or in some cases, the local level of the company - A grant, of course, does not require repayment ! .. That though comes with the challenge of accessing small business grants and determining your qualifications.
Business owners and entrepreneurs need to understand the criteria for any specific grant they feel they might qualify for. Government of Canada websites do a good job of itemizing grant programs and identifying qualifications,
It's important o remember that often, due to limited funds there is a lot of competition for grant money - it's typical for a grant to be a matching funds program which requires your business to assume a portion of the cost so your project. The good news - grant financing is available to accelerate that funding. Talk to the 7 Park Avenue Financial team about grant finance solutions based on matching funds criteria.
When applying for grants one option is to hire a grant writer who has experience in clarifying your project, the benefits, as well as key background on yourself and your business. Grant providers are looking for important and significant projects and your level of expertise in the specific area.
Grant applicants should be aware of the amount of funds that need to be matched and the need for strong proposals that are relevant to the grant. Nonetheless, grant and grant financing is a solid way to access an alternative source of capital if you can meet the prerequisites.
CONCLUSION - BEST FUNDING SOURCES TO GROW BUSINESS?
When focusing on the type of business funding you need it's all about the ' type ' of financing you require, and the best source for that business funding whether that is traditional or alternative- Other challenges include under-borrowing or overborrowing! Understanding the credit requirements of a traditional financial institution, or an alternative lender is key.
The business owner must decide on options for funding a business and what is the optimal debt or equity solution at a certain point. A business plan and solid conservative cash projections are always a good start. At 7 Park Avenue Financial, we prepare customized funding requirement business plans at a reasonable cost on financings that require these 2 items for a bank or financing company.
A focused and realistic source of funding business plan is a key requirement for successful funding. No secret that lenders want to see how they will be paid back, and financial statements and cash flow projections and executive summaries should demonstrate that. When it comes down to what is the best funding option for a business, a proper loan package always is key. Funding options for business expansion or for scalable business growth must demonstrate repayment from the lender's viewpoint.
Small business owners are always looking for good advice and solutions. Your ability to manage and finance asset turnover is key to being proud that you have accessed options that make sense for funding the business.
Speak to 7 Park Avenue Financial; a trusted, credible and experienced Canadian business financing advisor who can assist you with cash flow sources and business funding options and the best small business funding sources and ways to finance your business needs and grow sales of your products or services with all available solutions, including the benefits of alternative lending. We'll work with you to identify the right financial solution for your business's success, and the right source of business financing to achieve your growth potential goals.
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION
What are the three main types of financing for businesses?
The three types of finance solutions available to small business owners include debt financing via traditional or alternative loans, equity financing via personal investment of the owners, or combinations of the two that might include alternative non-bank finance solutions or government-guaranteed small business loans for business loan applicants. Venture capital funding & venture funds are appropriate for raising capital for some high growth companies, but not all, businesses. Government grants may be applicable for some projects
Do banks give loans to start a business?
For starting a business via a bank loan, traditional bank lending requires evidence of cash flow to support payment which is often a challenge if personal assets and savings cannot be collateralized. Other sources of financing are often explored, including alternative lending, business credit cards, and home equity lines of credit.
Click here for the business finance track record of 7 Park Avenue Financial
