YOUR COMPANY IS LOOKING FOR ALTERNATIVE FINANCE OPTIONS!
ALTERNATIVE LENDING 101!
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
Alternative financing options are the complicated concepts and structures some clients we meet think they are. In fact over recent years when it comes to business loans many finance solutions formally thought of as ' alternative' have in fact become... as we maintain .. the new traditional. Let's dig in.
DEBT FINANCING OR MONETIZING EXISTING ASSETS?
No secret that Canadian small business owners and financial managers are looking for option for small business straightforward solutions and advice when they look to obtain debt solutions or asset monetizing strategies.
The good news here of course is that the majority of companies looking for financing are doing that because they have both great promise for larger revenues, as well as the need for the working capital, cash flow and term loans that will satisfy that growth.
THE TYPE OF FINANCING THAT YOU NEED
The optimal solution is no-nonsense financing that matches the right rates, terms and structure to your company's specific need. Yes of course it would be great to go to the Yellow Pages (does anyone still do that?), look up business financing alternatives and call the right #. Every business wishes they could do that, accessing traditional lenders or other funding options that businesses need.
DON'T SPEND VALUABLE MANAGEMENT TIME CHASING INAPPROPRIATE FINANCING
In fact, you probably could do that if you were totally, and we mean totally prepared, but the reality is that a lot of clients we meet spend a lot of time searching for quick access solutions that are totally inappropriate for their specific needs based on their current financial ' profile ', or their ability to meet repayment terms, almost always ending in futility for the funding options that are being searched for whether its online lending options or a more people to people approach! Solutions such as merchant cash advances are very popular platforms but come with higher rates .
IS THE BANK YOUR ' GO TO ' SOLUTION?
The best example of this is when the ' go-to ' financing solution for a business loan is, in the mind of the business owner ' the bank'. If they were to better understand why Canadian chartered banks won't lend them money they would be saving a lot of time and probably a few dollars.
ACCESSING BANK APPROVAL
At the core of traditional bank financing in Canada is the concept that business loans made in the Canadian business financing landscape are made 'safely' to small business owners at the best interest rate available. There is a full expectation there is little or no risk, simply because as Canadian consumer account holders, we have a full expectation with the bank that our funds are safe.
So yes, if your firm is established, has demonstrable historical, present and future cash flow and collateral assets to further back up our financing need its ALL SYSTEMS GO. Remember also that Canadian banks place a high reliance on the personal credit score of owners.
So if your firm is ' bleeding edge' when it comes to new products or services, or if you are ' pre-revenue ' , or if your contracts are out of the country, or you require further R&D to complete products and services .. Well, we think you know where we're going with that one.
SOME ALTERNATIVE FINANCING SOLUTIONS FOR YOUR BUSINESS FUNDING AND GROWTH NEEDS
In some cases, we can consider government assistance as alternative funding to some degree. Programs such as the Canadian BIL/SBL program or the SR&ED program can provide a significant amount of capital to SME sector firms.
In many cases, business plans will help you achieve those loans that come with the rates and flexibility you are looking for. 7 Park Avenue Financial prepares business plans for our clients that meet and exceed bank and commercial lender requirements.
So what in fact are those financing options from traditional and alternative lenders? Potentially higher Interest rates on all types of financing will vary with the size and nature of the funding. They might include a wide range of many different short term loans and asset monetization solutions that include:
A/R Financing/Invoice Financing of outstanding invoices
Inventory Loans
Access to Canadian bank credit/ lines of credit/term loans/unsecured business loans
Non bank asset based line of credit
SR&ED Tax credit financing
Equipment / Equipment financing
Cash flow loans/ Small business financing
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans / Merchant Cash Advances/Business Credit Card
Securitization
Government Small Business Loans - fixed interest rate or variable rate term loans that are guaranteed by the government. An excellent tool for startups and franchises!
CONCLUSION
For business loans and types of alternative financing solutions that make sense for small businesses make sure to seek out and speak to a trusted, credible, and experienced Canadian business financing advisor with a track record of success.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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