YOUR COMPANY IS LOOKING FOR CANADIAN BUSINESS FINANCING!
SMALL BUSINESS FINANCING ISSUES - WE'VE GOT YOU COVERED
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
Small business finance in Canada. Whets the difference, asks our clients between their capital needs and corporate financing in Canada. We work with both types of firms and there is a case to be made that ' SIZE COUNTS ‘, but you might be surprised at how. Let' dig in!
THE SME SECTOR IN CANADA IS A LARGE PART OF THE CANADIAN ECONOMY
Business owners often hear the business fact that small and medium enterprises are in fact the largest employer and the true 'engine 'of the Canadian economy. It is also reasonable to assume that many business owners and the management of smaller and medium-sized firms worry about competing against the big global giants.
These larger competitors in many cases have 'brands ', as well as unlimited financial strength in obtaining business loans.
HOW CAN THE SMALL BUSINESS COMPETE AGAINST LARGER FIRMS
However, do business owners really know what those competing challenges are and how they can focus in on addressing them in some manner? In many cases (not always) they also have access to financing solutions available to larger corporations. They just didn’t know it!
OVERCOMING THE BUSINESS FINANCING OBSTACLE
As mentioned previously the financial strength of big firms and financial limitations of smaller firms is certainly a key area. Small and medium-sized firms continually focus on cash flow and are challenged by working capital. The banks and larger financial institutions can be forgiven for wanting to lend more to larger corporations since that business loan is safer and more collateralized.
The small firm can’t finance their customers in the manner that larger corporations can. The large corporations even usual financial strength to further compete against product and price by offering financing arrangements via their captive finance companies - think IBM CREDIT CORP as an example or Caterpillar Finance. These are just some examples.
THE ISSUES OF GOOD EMPLOYEES
Smaller firms are also challenged by personnel issues; they have trouble retaining key successful employees around issues such as compensation and benefits. Owners are focusing on day to day problems and challenges, and can't always think long term in areas of employee development, etc.
ARE THE ODDS STACKED AGAINST SMALL BUSINESSES
Naturally smaller firms pay more indirect costs because they don't have buying power; as well they are often focused on a couple core products and competencies. Larger corporations can diversify geographically and product-wise as we know. Financing costs and interest rates, in general, have always favoured the larger companies who borrow.
Intuitively the consumer or business customer gravitates towards a larger corporation for products and services, if only for the perceived safety and warranty issues.
Well, we have seen areas where the big guys clobber the small guy. Let's turn the boat around!
SERVICE AND TURNAROUND IS KEY FOR A SMALL BUSINESS
Service/Service/Service - have we made out point?! Value add in smaller firms is often service and support. Customers want the personal touch and they clearly get that from a smaller firm.
Also, in a smaller firm, in general, the business owner is very focused on working harder and longer with their customers - big corporations tend to favour broad stockholder approval.
ADAPTING TO CHANGES QUICKLY
The smaller firm is also more adept and can move more quickly to adapt to market needs. Big companies can take a long time to react to competitive change. Communication and market needs are much focused in a small company - it might take days, weeks, and years for larger corporations to implement major market changes.
AVOIDING BUREAUCRACY
Customers and consumers hate bureaucracy, and smaller firms certainly have less of that - decisions are made easier, customer situations are rectified more quickly.
In summary, business owners often have a fear of the 'gorilla 'in their industry - the big corporate giant with brand and financial clout. Instead, they should focus on specialized market segments, localization of their services, personal service, etc.
CANADIAN BUSINESS FINANCING SOLUTIONS FOR SMALL AND MEDIUM SIZED BUSINESSES IN CANADA
It doesn't hurt to be a small /medium-sized firm if we do it right! While larger corporate borrowers have access to low rates and flexibility and unlimited capital offer by Canadian chartered banks, insurance companies, capital markets, etc the reality is that many of these solutions, sometimes downsized and costing more, are still available to the SME sector via small business loans suited to the SME firm.
7 Park Avenue Financial small business finance Solutions include:
A/R Financing Canada's most popular solution for financing cash flow from sales
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/ Business Credit Cards
Securitization
Even the government of Canada's small business loan program works perfectly for a start-up or relatively new businesses and has a loan amount up to 1 million dollars with certain terms and conditions. It comes with a great interest rate and flexible terms.
CONCLUSION
Whether you're in the SME sector in Canada or a mid-market borrower seek out and speak to a trusted, credible and experienced Canadian business financing advisor at 7 Park Avenue Financial who can assist you with your cash flow and asset financing business needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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