YOUR COMPANY IS LOOKING FOR COMMERCIAL BUSINESS FINANCING!
FINANCING OPTIONS / SMALL BUSINESS LENDING FOR BUSINESS LOANS AND FINANCING NEEDS
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
Oakville, Ontario
L6J 7J8
If you're an owner/manager in the SME Commercial area, commercial financing in Canada is often dubbed as ' Super Rare '! Finance companies and banks offer a multitude of traditional and alternative loans depending on various business needs. We're covering some of the new rules ' around successful commercial lender solutions in Canadian business financing. Let's dig in.
FUNDING SOLUTIONS TO RUN YOUR BUSINESS
As we've noted, lending to businesses in the SME (small to medium enterprise) sector seems to only happen in those TV commercials and print advertisements. The reality, though, is that with some proper homework and expert assistance, numerous new business financing solutions are available to run or grow your business.
CAN YOUR COMPANY SATISFY BUSINESS BANK LOAN LENDING CRITERIA?
A bank loan for business / or operating loan? For the most part, the owner/manager has to reconcile that although Canadian chartered banks maintain their willingness to lend to your firm, the reality quite often is that your business can't satisfy the criteria needed to achieve proper, low cost, and flexible bank financing via a term loan or revolving line of credit.
Let's examine some key factors around bank loans and other commercial financing solutions. One of those is sales or lack thereof.
Revenues are a key driver in your ability to access business credit. Many start-ups that are pre-revenue or have little revenues will find it exceedingly difficult to achieve traditional financing. It's those revenues that will create cash flow that banks mandate.
CONSIDER THE CANADA SMALL BUSINESS FINANCING PROGRAM
Yet early-stage firms can still access numerous loans from commercial finance companies. One hybrid solution is the Canada Government Small Business Guaranteed Loan Program, providing loan amounts up to 350k to purchase assets or even leasehold improvements to your business. The 'Guaranteed' terminology revolves around the fact that the Federal government guarantees most of the loan to your bank. In real estate, a cap of a loan amount of 1 Million $ exists under the program.
When it comes to startup small business loans and a small business loan with flexible terms, good rates, and a limited personal guarantee, the Government ' SBL Loan' can't be matched! It can even be used as a loan to buy business entities such as a franchise. Restaurant financing and business acquisition loans are a large part of the program's utilization, which is under the auspices of Industry Canada.
Canada's non-brick and mortar federal crown corporation bank also provides working capital term loans and asset financing that is often complementary to a total finance solution you require.
In some cases, your might need a commercial mortgage loan for real estate. The Small business government loan provides for term loans on real estate, but this is rarely used under the program, with typical asset categories financed, including business equipment ( new and used ), technology, and leasehold improvements.
Financial institutions such as a Canadian chartered bank or credit union typically underwrite government loans. Let the 7 Park Avenue Financial team help you with the application process, making things go a lot faster than you might imagine!
THERE ARE OTHER CANADIAN BUSINESS FINANCING SOLUTIONS
Other non bank loan solutions that can monetize your assets into valuable cash flow include:
A/R Financing / Confidential A/R Finance
Inventory Finance
SR&ED Tax Credit Monetization
Purchase Order Finance
Short term working capital loan / Merchant Cash Advance / Business Credit Card
Equipment Financing - asset equipment purchase funding via a lease or equipment loan
Asset-based business credit lines - the line of credit alternative to bank loans
Vendor financing
Commercial Loans/ Real estate Funding / Bridge Loans/ Constructions Loans
BUSINESS LOAN INTEREST RATES CANADA
The interest rate on any commercial finance type will be a factor of financing, amount of financing, and overall credit quality as determined by financial institutions such as a bank or alternative lender. In small business, the credit score and personal credit history of the principals is key to approval. A good score is in the 650 range as defined by the credit bureaus, and interest rates are often based on these bureau scores, which take into account loan repayment capability.
HOW CAN THE BUSINESS DEMONSTRATE REPAYMENT OF LOANS AND OTHER FINANCING SOLUTIONS
The ability to demonstrate loan repayment is best demonstrated via a solid business plan and cash flow forecast, emphasizing the ' cash flow ' part, not meteoric sales projections that resemble a hockey stick. 7 Park Avenue Financial business plans meet and exceed the requirements of banks and commercial lenders.
While many firms can be self-financing to a certain degree, at a certain point, small business owners will often realize that the right amount of loan type and debt, aka ' leverage,' will help grow the business faster.
CONSIDER EQUIPMENT FINANCING FOR YOUR ASSET ACQUISITIONS NEEDS FOR TECHNOLOGY AND OTHER FIXED ASSET NEEDS
A good example of ' good debt ' is equipment leasing, where certain assets you need can help you substantially grow revenues or decrease expenses.
CONCLUSION
Business owners want to ensure they have got the ' New Rules ' down on both traditional or alternative financing solutions, and they want to eliminate ' super rare' from their commercial financing thoughts - speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with key needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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