YOUR COMPANY IS LOOKING FOR BUSINESS DEBT FINANCING!
Balance Debt and Equity
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
Securing business loans and funding is pivotal for the growth and sustainability of any enterprise.
Unlock the key to your business success with the right funding solution.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer Business Loans and Funding solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
7 Park Avenue Financial - “Canadian Business Financing with the intelligent use of experience”
CANADIAN LOANS AND BUSINESS FUNDING SOLUTIONS
Business debt financing and funding for Canadian companies.
When other forms of financing, such as equity or more esoteric arrangements, aren’t available, the Canadian small business owner and financial manager turn to debt financing and funding via a number of different short—or long-term debt finance strategies.
There is sometimes a fair amount of pressure to take on new debt to satisfy production, sales and marketing growth. The question very much becomes: How much debt can your firm handle? Are you aware of the different debt options, and which one or ones might be best for your firm?
FUNDING CANADIAN BUSINESS VIA PROPER DEBT FINANCE SOLUTIONS
Accessing the right business loans and funding for your business can be challenging.
Understanding the various financing options available and how to access them is crucial for any business looking to succeed in today’s competitive market.
Let the 7 Park Avenue Financial team show you how traditional bank loans and alternative lending options are the resources you need to finance cash flow, grow your business, and adequately finance suitable investments, technology and equipment.
Business Loans and Funding: Is Debt Financing Right for Your Business? Comparing Debt vs Equity Financing
Business capital can come from either debt/business or a new owner equity source/sources.
When a company borrows, there is a precise cost to that financing, while the owner putting new capital into a company has a stake in the overall business. Financing equity is always one option for business owners and entrepreneurs.
The Canada Small Business Financing program helps small businesses secure loans by sharing the risk with lenders. Over the past 10 years, it has provided over 56,000 loans totalling $10 billion to small businesses.
THE COST OF FINANCING AND INTEREST RATES
All finance experts agree that debt is a cheaper form of financing, but some challenges come with that! One risk is the company’s potential inability to pay back the assumed debt.
Companies that manage their financials well and understand their cash flow can take on a reasonable amount of debt and use that funding to grow sales and profits. New businesses, of course, have a huge challenge in borrowing, which places a larger emphasis on owner equity.
It is crucial to consider the interest rate associated with any loan, as it significantly impacts the overall cost of financing. Financial institutions, including lenders and banks, are key in providing business loans and funding.
There’s a great little analogy about why those lenders you might be looking to borrow from are occasionally somewhat cautious. It’s rooted in the fact that when the first caveman loaned a spear to someone, it was never returned, and when it was, it was broken. The reality in Canadian
DEBT IS NOT ALWAYS THE ANSWER
And sometimes debt is not always the answer. We find clients gravitating to debt solutions when they experience severe cash fluctuations.
KEY TAKEAWAYS
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Understanding Loan Types: Knowing the different types of business loans, such as term loans, lines of credit, and SBL loans, which Industry Canada guarantees, is essential for selecting the best option for your needs. Government loans have limited personal guarantee requirements and can help fund up-front project costs for startups with strong business support.
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Creditworthiness: A strong credit profile increases your chances of approval and can secure better loan terms.
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Cash Flow Management: Effective cash flow management ensures you can meet repayment obligations without compromising business operations.
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Interest Rates and Fees: Understanding the interest rates and fees associated with different loans can help you compare costs and choose the most affordable option.
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Application Process: Familiarity with the loan application process and required documentation streamline the borrowing experience.
CONCLUSION
The bottom line today? Speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor, about sources of capital available to your company in good... and challenging... times!
FAQ
How can business loans help my company grow?
Business loans help support businesses and provide the capital for expansion, purchasing equipment, or increasing inventory, allowing your business to scale and seize new opportunities. Some borrowers choose grants and other federal and provincial funding programs.
What types of business loans are available?
There are various types, including term loans, lines of credit, SBL loans from a participating financial institution, and equipment financing, each suited to different business needs.
What is required to qualify for a business loan?
Typically, lenders require a solid business plan, good credit history, financial statements, and collateral, depending on the loan type.
How can I improve my chances of getting approved for a business loan?
Maintaining a solid credit score, preparing a detailed business plan, and ensuring steady cash flow can significantly enhance your approval prospects.
What are the benefits of alternative business funding?
Alternative funding options, such as merchant cash advances or invoice financing, often have more flexible requirements and faster approval processes than traditional loans.
What should I consider when choosing a business loan?
Evaluate interest rates, repayment terms, fees, and the lender’s reputation to ensure you select the best loan for your small business funding needs.
How does invoice financing work?
Invoice financing allows businesses to borrow against unpaid invoices, providing immediate cash flow without waiting for customer payments.
What are the risks of taking a business loan?
Potential risks include high interest rates, impact on credit scores, and repayment challenges, which can affect your business’s financial health.
Can startups qualify for business loans?
Yes, specific startup loans and small business loans are available, though due to the higher risk involved, they may require a strong business plan and personal guarantees. Borrowers can use a business loan calculator to calculate various assumptions around rates, payments,etc
How can equipment financing benefit my business?
Equipment financing to fund assets for business growth allows businesses to purchase or lease essential equipment without a high upfront cost, preserving cash flow for other needs. The majority of small and medium businesses use lease financing to acquire assets.
What is the difference between a business loan and a line of credit?
A business loan provides a lump sum of money with a fixed repayment schedule, while a line of credit offers flexible access to funds up to a specific limit and charges interest only on the amount used.
How can working capital loans assist my business?
Working capital loans provide short-term funding to cover daily operating expenses, ensuring smooth business operations during cash flow gaps.
What are Canadian Government Guaranteed SBA loans, and what are their benefits?
The government partially guarantees SBL loans under the Canada Small Business Financing program, available from participating financial institutions. They offer lower interest rates and longer repayment terms, making them an attractive option for small businesses.
