YOUR COMPANY IS LOOKING FOR BUSINESS FINANCING AND
COMMERCIAL LOANS / OPTIONS!
BUSINESS LOANS AND BUSINESS FINANCING IN CANADA
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
When, and how. Do you have a handle on what business financing you need when seeking finance and commercial loans in Canada? Let's review some of those timing issues, as well as the sources and solutions via commercial lending in Canada.
CHOOSE THE RIGHT FINANCING FOR YOUR BUSINESS
Plan A (which often quickly becomes PLAN B) for many business owners and financial managers in Canada is to highlight a Canadian chartered bank as the main option. And truth be told, commercial banking is quite competitive these days; especially from a perspective of rates, etc. (Approval is a different story!)
It's a hardcore reality that you in fact, due to the above competitiveness, as well as your firm's own credit quality could in fact get a better deal, structure, and rate simply by... 'changing banks'. Is that recommended? Certainly not always, more so when it comes to evaluating the cost of a relationship.
FINANCING TAILORED TO YOUR NEEDS
Are there alternatives to Canadian chartered banks when it comes to commercial loans and financing in Canada? There sure are - they include pension funds, insurance companies, and commercial independent finance companies. The latter group consists of specialized small firms, niche firms, and larger Canadian and international finance corporations.
THE RELATION BETWEEN ACCESS TO CAPITAL AND INTEREST RATES
Clients ask us when they are looking to finance externally what they need to look out for. It's a question of looking at what type of firm and financing vehicle is in fact best suited for your needs.
And the factors that determine that? They include:
Term of amortization of your financing
Why you are financing
Cost
The upside/downside & pros and cons of any type of finance
Short-term business financing transactions in Canada tend to be 1- 3 years in length. We're often approached for very short-term needs and these are difficult, but not impossible to accomplish.
Naturally, longer-term financing tends to be anywhere from years onward. When you consider the period or term of the loan the business owner focuses on the overall financial position of the company. The lender however focuses pretty well solely on risk and collateral.
Businesses in Canada finance for many reasons. They include expansion and growth, and new markets, which probably is the best advice we can give a business owner, and it’s certainly the view of many lenders, that areas such as product development and working capital should be financed internally through profits and operating cash flow.
If you can’t generate enough cash internally probably one of two situations exists - your profit model is (hopefully temporarily) broken or you can't really afford the financing you think you need. Our point is simply that it’s not always external debt that is the fix to a problem. Physician, heal thyself comes to mind!
FINANCING SOLUTIONS
In Canada sources of business financing include:
Securitization of assets,
Export finance - via export development Canada
Sale-leaseback of assets such as equipment capital assets and company-owned commercial real estate
Working capital term loans - faster credit approval compared to a traditional financial institution - typical loan term less than 12 months based on sales and cash flow of the business
Government Of Canada Small Business Loan Program
Monetization of assets via:
Bank credit facilities - via term loan or revolving lines of credit / unsecured credit lines
Asset-based lending agreements/lines of credit
Receivables and inventory financing solutions- A/R financing via a factoring solution is a popular method for small business financing for firms unable to access all the bank credit they need
Commercial real estate financing - Canada - solid loan to value ratio and margins, or customized solutions via bridge loans at a fixed rate or variable rate - including interest-only solutions
CONCLUSION - BUSINESS LOANS
If you need assistance in identifying the why and how of business financing and commercial loans in Canada speak to 7 Park Avenue Financial, financing industry experts and a trusted, credible and experienced Canadian business financing advisor providing customized financing solutions for your growing business in the challenge to stay competitive.
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION
What is a good interest rate on a commercial loan?
Commercial loan interest rates vary - The Canada small business federal loan program is priced at 2 over Bank of Canada Prime, the majority of bank facilities and those from a credit union offer competitive interest rates for established firms. Start Up financing comes at higher rates and in general, all business loan transactions are based on overall credit quality, transaction size, and type of financing. Alternative lending rates are significantly higher but come with more and quicker access to capital.
What is the federal Canada Small Business Financing Program ?
The federal government ' SBL LOAN' is a financial assistance proram for small businesses - The program finances business needs , via term loans , equipment, leasehold improvements, and commercial real estate . Short term working capital facilities and credit lines are not offered under the program - A one time 2% fee is required, and can be bundled into the financing.
Do banks give loans to startups?
Canadian banks do provide loan financing to startups . Typically external collateral and personal guarantees are required, as are solid personal credit histories. A good credit score in excess of 650+ is required and business plans are typically required with solid cash flow projections and business experience in a particular industry .
