SME Commercial Finance Business Financing | 7 Park Avenue Financial

Tweet

 

YOUR COMPANY IS LOOKING FOR  BUSINESS FINANCE SOLUTIONS!

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

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

 

 

SMALL AND MEDIUM SIZE ( SME ) FINANCING IN CANADA

 

SME Commercial Finance business financing in Canada comes with its share of challenges. One of those is ' Happy Ears. ' Happy Ears? That's the name we're giving to information that business owners/ financial managers gather that portrays certain business finance solutions as having only ' pros’ while not hearing the ' cons.’ What are they looking for? The lowdown!  Let's dig in.

 

WHAT IS SME FINANCING?

 

 

SME businesses in Canada represent the largest portion of employees in Canada's industries - Statistic peg this amount as 98%  of businesses in Canada according to Stats Canada. Outstanding loans by businesses are closing in on 1 Trillion dollars and the SME commercial finance sector is a portion of this business debt.

Interest rates vary in the SME sector based on the ' risk premium ' around access to financing and current economic conditions.

Venture capital also plays a key role in investing - It's important to recognize that the Business Development Bank and EDC as well as the Canada Small Business Financing Program reflect the Canadian government's support in small business financing. Other programs such as

Futurpreneur Canada and other loan programs targeting women entrepreneurs are also popular and gaining traction. 

 

GROWTH FINANCING

 

We don't meet many owners/managers that don’t want to grow their business, and the current relatively healthy business cycle has them searching for business loans. That required financing has them facing lending standards and criteria from traditional sources such as ' banks, 'and at the same time often somewhat bewildered by a myriad of new alternatives they read and hear about every day. Which solutions are right? without becoming a victim of happy ears?!

 

One of the signs of a successful business is planning financing needs - avoiding the large stress that comes with desperation finance needs and cash flow crunches. While assessing some of the newer forms of finance out there, we encourage clients not to forget tried and tested stand-by solutions that have been around for decades. The reason? They work!

 

  

EQUIPMENT FINANCING / EQUIPMENT LOANS  

 

New or upgraded assets are a constant requirement of most businesses, and service businesses are somewhat of an exception. Equipment financing is all about flexibility and cash flow conservation- and those fixed monthly payments are a great planning tool for future cash outflows as you realize over time the assets you're acquiring.

 

Getting paid right away/ to your terms is a constant challenge for almost every business in Canada - large and small. Enter Invoice Financing, allowing you to cash flow your sales as you generate revenues. But talk about a great example of ' happy ears '! There are so many different types of this method of cash flow finance that owners can easily get locked into a facility that seems great but ultimately doesn't make sense for their firm. Our recommendation in this area is almost always CONFIDENTIAL RECEIVABLE FINANCING, allowing you to bill and collect your own receivables while achieving all invoice finance benefits.

 

P O / Contract financing is a massively misunderstood solution to sales growth that requires financing that might typically not be available. The simple answer to how it works is that it pays your vendors in advance for products you have committed to purchase orders.

 

  

TWO SOLUTIONS FOR BUSINESS CREDIT LINES  

 

Business credit lines are the heart of the financing need for most businesses in all industries. Revolving credit is a critical need, and both bank and non-bank solutions should be assessed properly. Non-bank asset-based credit lines will often deliver higher financing levels with easier approval criteria and ongoing access to funds  - but come at a higher cost. It's the 'trade-off.'

 

Personal guarantees and outside collateral are always issues that come up in the SME commercial finance sector. Top experts consistently agree that your goal should be to separate your business and personal life regarding assets, guarantees, etc. Here the ability to deliver a solid business plan and cash flows will often help de-emphasize the need for personal guarantees - or at least limit them.

  

THE CANADA SMALL BUSINESS FINANCING PROGRAM -  

 

The federal Canada Small Business Financing program is one of Canada's 2 largest government business financing programs   ( The other program is CRA's SR&ED Program )

Federally guaranteed small business finance loans under the Canada Small Business Financing Act had some major positive changes in 2022.  Along with traditional term loan products which financed equipment, leasehold improvements, and commercial real estate new classes of the financing were added including

Funding of Intangible Assets / Franchise Fees / Working capital facilities and line of credit

A new loan maximum was increased to a maximum of 1.15 Million dollars

 

Other ' government ' financing is available from BDC -  This is a non-bricks and mortar business bank that offers small business loans that assist Canadian businesses in financing company-owned real estate,  business acquisitions, permanent working capital, supply chain financing, and equipment and technology purchases.  Companies are eligible based on being Canadian businesses with owners who have good personal credit and require financing for day-to-day operations and long-term growth. Talk to the 7 Park Avenue Financial team about our experience in BDC financing requirements.

 

OTHER COMMERCIAL FINANCING SOLUTIONS

 

If you're looking to assess business financing alternatives such as:

 

Receivable Finance

Equipment Leasing

Business Credit Lines

Refundable Tax Credit Financing

PO Finance

Cash flow loans

 

with the benefit of assessing all the pros and cons,   and eliminating those ' happy ears '... seek out and speak to  7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with those needs.

Business owners want knowledgeable advice, so talking to your accountant, lawyer, or someone such as 7 Park Avenue Financial can help get you the financing you need -  Info on the kind of capital that is available to your business and industry is solid information whether its from traditional financial institutions or the growing alternative lender marketplace.

  

 

  

CONCLUSION

 

     

Business owners searching for traditional bank loan financing know the challenge already  - timelines can be challenging and the requirements moreso - talk to our team  to get in touch and get started for solid guidance around the best financing at competitive rates.

 

 

  

FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION  

Click here for the business finance track record of 7 Park Avenue Financial