YOUR COMPANY IS LOOKING FOR AN SBL SMALL
BUSINESS LOAN!
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
The SBL federal government loan. As the commercial says, we're ' lovin it'. And here's why we think it's one of the best business loans around when it comes to businesses that are start-up to the lower end of the SME sector. That's where it gets just a little technical since firms with revenues over 10 Million dollars annually actually can't qualify for the loan.
WHAT IS THE SBL CANADA SMALL BUSINESS FINANCING PROGRAM - WHERE DID IT COME FROM?
This loan program is somewhat modelled after the U.S. program called ' SBA’. While that program was actually developed to help businesses recover from the Depression of the 1930's its safe to say that our Canadian program simply was put together to provide loan guarantees for business which to start and grow - financing their equipment needs, leasehold improvements, computers, software, and even real estate.
WHO APPLIES FOR THE LOAN EVERY YEAR?
We rarely see our clients acquiring real estate through the program, but each year between 7000-8000 businesses in Canada reach out to this program for billions of dollars of financing annually. That includes businesses within our revenue cap as mentioned above, franchises, and start-up entrepreneur financing.
There's always a huge reluctance for the Canadian business owner to get involved in anything that has that tine of ' government '. While that may or may not be a reality (it’s certainly a perception) many Canadian business owners and financial managers don't realize that you are never, we repeat, never in direct contact with the government (aka INDUSTRY CANADA that sponsors the program). The direct lender of this program is actually the Canadian chartered banks that administer the program on a daily basis.
HOW DO YOU FIND THE RIGHT BANKER - SPOILER ALERT - CALL 7 PARK AVENUE FINANCIAL!
Here's the difficulty though as you try to ' self assemble ' your SBL federal government business loan. The challenge is simply finding the right banker and bank to assist you in facilitating the loan. While many business owners simply choose by convenience or location to address their SBL loan request the reality is that you need to locate a bank and banker that is familiar with and supports the program in a positive manner. No banker is going to do all the work or bend any rules to get your SBL loan approved, so in some cases, you actually might need to find a new banking relationship if in fact, you get a sense that your banker is not on board. Some are... many are not!
When businesses borrow, whether it’s an SBL loan or not the bank focuses on what the finance textbooks call the 4 C's of borrowing - capacity, character and capital/collateral.
YOUR PERSONAL CREDIT SCORE AND CREDIT HISTORY IS IMPORTANT
In the case of SBL federal govt loans, you do need to have reasonable personal credit as the owner/owners of the business. However no external collateral is required by the program, and your business plan and cash flow summary just needs to show repayment ability.
WHAT CAN YOU FINANCE UNDER THE PROGRAM?
So what do our clients tend to use this program for? Many purchase franchises, others modernize facilities through leasehold improvements, and still others acquire assets such as rolling stock, equipment, furniture, application software and computers, telecom assets, etc.
It is important to note that the loan cannot be used for working capital - it is not a cash flow loan or business line of credit!
The shorter answer is what in fact does the program not finance, and here it’s important to understand that it does not finance working capital or inventory. We wish it did, it does not. For working capital and inventory needs, you require other solutions such as:
A/R Financing
Inventory Loans
Access to Canadian bank credit
Non bank asset based lines of credit
SR&ED Tax credit financing
Equipment / fixed asset financing
Cash flow loans
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance
Securitization
CONCLUSION
So, could your firm be ' lovin' it '?If you want to self assemble your own SBL loan consider speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you with asset and leasehold finance needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2020/Rights Reserved
