YOUR COMPANY IS LOOKING FOR BUSINESS FINANCING!
ACCESSING BUSINESS LOANS FOR BUSINESS IN CANADA
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
Financing businesses in Canada must often make the business owner/financial manager almost feel they need a ' Flux Capacitator ' to make the right decisions around business finance in growing your products or services. Debt? Equity? Asset Monetization? Those three choices are the ongoing conundrum for the business solutions. Let's dig in.
TRADITIONAL VERSUS ALTERNATIVE FINANCING
A flux capacitor? Well, if you remember, it’s the instrument used in the movie ' Back to the Future ' - allowing its stars to time travel back and forth into the past and future. That's probably not far off from how owners/managers feel about what solutions to pick for their business financing needs. There are the old traditional solutions, and in recent years numerous alternative financing solutions have become popular.
THE DEBT VERSUS EQUITY CONSIDERATION FOR BUSINESS OWNERS
Putting ' asset monetization' aside temporarily, the choice of debt or equity is an important one. Debt alters the balance sheet, and for some reason or other, those lenders always wish to be repaid! Choosing the right debt term (or ' amortization') also becomes very important. Payments are fixed, and rates are set.
WHY DOES SMALL BUSINESS CONSIDER GOVERNMENT OF CANADA SMALL BUSINESS LOAN FINANCING
In Canada, the SME (small to medium enterprise) sector can, in fact, take advantage of the Canada Small Business Financing Loan - while it is ' term debt, 'it has no prepayment penalty, rates are offered as ' variable ' and outside collateral is not needed. It's as safe a bet as you can pick, given the choices. Talk to 7 Park Avenue Financial about how to apply for a loan under the Canada Small Business Financing Program via the right financial institutions. For new or small businesses, bar none is one of the best programs - including franchise purchase opportunities. When it comes to business loan for new business opportunities, talk to our team.
NEW EQUITY DILUTES OWNERSHIP AND IS HARD TO ACQUIRE!
No business owner wishes to give up ' equity ' when they don't need to - but when debt or asset monetization strategies don't make sense, it then boils down to choosing the equity to give up - that might be from as far minded a group as friends and family to those lesser than friendly VC's - nice people, it's just that they love that ownership control.
Equity investors aren't as focused on cash flow and repayment as focusing on growing the business's overall value. Therefore, it goes without saying that outside collateral, personal guarantees and the like play very little into the equity raise.
Naturally, the converse of that is the control the owner/manager gives up in the business - and reporting to or working with new owners is your new main ' to do ' task.
In practice, the textbooks and top experts tell us that the right balance between equity and debt is, in fact, the right solution.
CANADIAN BUSINESS FINANCING SOLUTIONS YOU CAN ACCESS VIA 7 PARK AVENUE FINANCIAL
So if it isn’t debt or equity, what about those asset monetization strategies we spoke of? They include:
A/R Financing / Securitization facilities
Inventory Finance
Asset-based credit lines
Revolving bank facilities
Purchase Order Financing
Tax credit loans (SR&ED)
Royalty Financing
Unsecured cash flow/mezzanine financing loans
CONCLUSION
So, in fact, you don't need that ' Flux Capacitator ' to gravitate back and forth between traditional or alternative financing solutions in business credit when you are looking for working capital and small business loans that suit your business needs. It's a matter of picking the right financing for right now. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success and a track record to help businesses in need of funding.
Whether it's short term business needs or access to long-term permanent capital, your business finance worries might be over.
Click here for the business finance track record of 7 Park Avenue Financial in helping small businesses.
Stan Prokop
7 Park Avenue Financial/Copyright/2021/Rights Reserved
