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Business Loans: Playing Catch Up With Capital Funding Solutions In Canada
To Do: Check out Business Loan Alternatives In Canada



 

YOUR COMPANY IS LOOKING FOR  ALTERNATIVE FINANCING SOLUTIONS!

WHAT FORM OF FINANCING SUITS YOUR CHANCES OF SUCCESS IN GROWING BUSINESS?

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

Direct Line = 416 319 5769


Email = sprokop@7parkavenuefinancial.com

 

 

YOUR GUIDE TO SMALL BUSINESS LOANS ( CANADA )

working capital financing and loans for canadian entrepreneurs

Business loans and capital funding for Canadian business is often ' top of mind ' for owners/financial managers in the SME sector.  But what are the differences in types of loans, and, even more importantly, is a loan really the solution to your financing need. Let's dig in.

 

CAN ALTERNATIVE BUSINESS FUNDING SOLUTIONS FILL YOUR BUSINESS CAPITAL FUNDING GAP?

 

Many small businesses find themselves in a situation where cash flow and working capital needs prevent their ability to expand and grow their business. These days, the good news is that there are more options available than ever before vis both traditional financing and alternative capital.

Small business financing business loans  come in various shapes and sizes, primarily because the world of ' fintech' had delivered many new and innovative financing options - even Canadian banks have soldiered into the new world of technology integration in their financing processes and marketing of service.

 

As a business owner, you want to understand the differences between alternative finance and bank financing and ensure the potential availability of many newer types of financing that are less known.

Borrowing for that ' loan always conjures up Canadian chartered banks as a possible solution to your financing needs.  Medium size and small businesses in Canada tend, for some reason, to view the bank as their  ' supermarket ' for financial needs. However, banks are very reluctant to finance start-ups or newer businesses without collateral.

 

CHOOSING THE RIGHT FINANCE SOLUTION FOR YOUR BUSINESS

 

EQUIPMENT PURCHASE NEEDS?

Remember also that when it comes to equipment and other asset needs (i.e. technology, etc.), equipment lease financing is an excellent alternative.  No or minimal down payments and favourable amortizations make leasing the chosen provider for almost 80% of all businesses in North America.

 

 

NEW METHODS TO FINANCE INVOICES 

 

Most business owners are familiar with invoice financing solutions - allowing your business to cash flow your invoices as you generate sales. But did you know that many different types of invoice discounting/invoice financing service exist?

Business owners should be aware they are not required to fund all of their invoices - the right type of facility should allow you to utilize selective invoice discounting to fund only the times you wish to fund for the amount of cash you require.

 

Many business owners do not like the ' notification' aspect of factoring receivables. That's why  7 Park Avenue Financial recommends CONFIDENTIAL RECEIVABLE FINANCE as the best solution in our opinion - this financing allows you to achieve all the benefits of invoice factoring while billing and collecting your own accounts and being in full control of your accounts receivable!

Don't let the process of understanding how invoice funding works discourage you from this popular working capital solution.

 

GOVERNMENT BUSINESS LOANS / SMALL BUSINESS LOANS CANADA

 

Small business loans can be a particularly attractive small business financing option for financing a new business. The federal government sponsors programs that make funding start-up businesses a priority such as the Canada Small Business Financing Program

 

 

Let's get back to that 'start-up ' or early-stage company need. One area the banks do come through is the Government Small business guaranteed loan. Ottawa guarantees a large portion of your loan to Canadian banks who participate in the program for these business loans in Canada. Each year billions are funded via this loan. A bank or credit union is usually the financial institution that facilities the loan .

 

Reasonable personal credit history and a good credit score are required for any bank loan, this program included. Still, when starting a business in Canada, this is certainly one very viable financing option -  You can arrange to repay the loan over 2-5 years. This is a term loan and does not finance credit lines, accounts receivable, inventory, etc.

 

7 Park Avenue Financial prepares business plans for government loans, bank loans, and other commercial lenders that meet and exceed your requirements. Let our team make your search for government loans easier.

 

 

 

Another reason for the popularity of this program is that it only finances two asset categories - equipment and leaseholds. Typically leasehold improvements are very hard to finance, ergo the popularity of the Small business loan. Although Cdn business tends to associate ' government ' with red tap and delay, there is NO direct contact with the govt - it's all done via your bank.

 

SR&ED TAX CREDIT FINANCING

 

For businesses that invest in R&D projects , thousands of firms take advantage of the SR&ED refundable tax credit program. Your SR&ED credit can also be monetized in the form of a bridge loan, eliminating the waiting period for your refund on research and development refunds on the refundable tax credits.

 

 

BUSINESS CREDIT LINES TAILORED TO YOUR REPAYMENT NEED!

 

Many businesses are profitable, growing, and sometimes a combo of both. While owners/financial managers associate finance needs with a ' loan,' in reality, they should be looking for a business line of credit that satisfies working capital and daily cash flow needs. It's important to know the difference between loans and asset monetization!

 

Alternative or ‘non-bank lenders offer multiple solutions for ' loan ' needs. These financings include bridge loans, tax credit loans, and asset-based business credit lines that work just like a bank facility - in fact, they almost always are more generous when it comes to borrowing power.  They also move... quickly! 

Additionally, non-bank and alternative lenders are open to taking on more risk, which means a higher borrowing cost to pay, but.. access to more capital funding via the financing of assets for eligible businesses. Support for businesses by asset-based lenders helps thousands of firms every year.

 

small business loans and business financing in canada

 

 
HAVE YOU WASTED TIME ON BUSINESS CAPITAL  OPTIONS THAT DON'T MAKE SENSE? 

 

Looking to waste some time on business lending?  You then must be one of those business owners /mgrs who focus on equity or venture capital. The hard reality is this type of financing is probably only suitable for a couple of thousand businesses in Canada, if that, among the millions of small and medium-sized businesses.

Crowdfunding

Crowdfunding on platforms such as Kickstarter and Indiegogo can give a financial boost to small businesses. These platforms allow businesses to pool small investments from several investors instead of seeking out a single investment source. It is important to read the fine print of different equity crowdfunding platforms

 

However, if you can demonstrate hyper-growth and unique products and services, equity investment is possible, although it’s important to remember that debt  (from the right lender) in the form of loans is always cheaper than giving up ownership in your business.

 

PURCHASE ORDER FINANCING / RECURRING REVENUE FINANCING

 

Companies with strong sales and purchase orders or contracts can also take advantage of PO Financing or Sales Royalty finance solutions. These funds can monetize sales and larger contracts and orders,, and when you've generated receivables, these can also be financed without the necessity of taking on debt via a ' loan. '

 

startup financing options for a small business

 

CONCLUSION - BUSINESS LOANS CAPITAL FUNDING SOLUTIONS FOR SMALL BUSINESS FINANCING

Exhausted all those  ' outliers' such as angel investors, the friends and family money investor, etc., for small businesses in Canada? Looking for an interest rate that matches your overall credit quality for the type of financing you require? You may want to talk to our team at 7 Park Avenue Financial.

 

If you're looking to get properly ' caught up '  with business loans and the different types of capital and funding available to your business, seek out and speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor who can help you take that one of your ' TO DO  ' list for your business needs! Let's get started on the resources you need for growth!

 
FAQ: FREQUENTLY ASKED QUESTIONS

 

What is alternative business funding?

Alternative business funding is viewed as business financing that is non-mainstream - Unlike business banking via Canadian chartered banks, many of the new solutions are adjudicated and delivered online, some by complex investments in algorithms made by financial technology lenders, aka ' fintech' - The financial landscape in Canada is now populated by many new commercial lenders, some online.

What Is Business Financing?

For small businesses, finding the right funding model is vitally important. Take money from the wrong source and you may lose part of your company when there is an equity consideration.  Even many large-cap companies routinely seek capital infusions to meet short-term obligations. Don't find yourself locked into repayment terms that impair your growth for many years. For small business owners in Canada finding a funding model for the right source is important for your growth

 


 

 

Click here for the business finance track record of 7 Park Avenue Financial.

' Canadian Business Financing With The Intelligent Use Of Experience '

 STAN PROKOP
7 Park Avenue Financial/Copyright/2024

 

 

 

 

 

Stan Prokop is the founder of 7 Park Avenue Financial and a recognized expert on Canadian Business Financing. Since 2004 Stan has helped hundreds of small, medium and large organizations achieve the financing they need to survive and grow. He has decades of credit and lending experience working for firms such as Hewlett Packard / Cable & Wireless / Ashland Oil