Business Financing Capital Sources Loans Cash Flow | 7 Park Avenue Financial

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YOUR COMPANY IS LOOKING FOR  BUSINESS FINANCE SOLUTIONS!

BUSINESS LOAN SOLUTIONS  FOR RAISING CAPITAL 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?

CONTACT:

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

 

 

SOURCES OF FUNDS FOR BUSINESS GROWTH

 

 

Business Financing in Canada or notably, lack thereof has this tremendous ability to stifle busing growth and opportunities.  What then are the cash flow capital sources that can get you new, growing, or mature business back on track? Let's dig in.

 

WAYS TO FINANCE YOUR BUSINESS

 

Business capital sources often mean different things to different folks. The equity in your business is often made up of assets, both fixed and liquid (receivables/inventory, etc) and the proper mgmt of them should allow you to meet your financing and sales targets. That might be why working capital from traditional banking sources is difficult to attract.

 

Naturally  ' debt financing ' is not capital and the term ' sources of capital ' is often misunderstood when it comes to debt capital . One top expert has been quoted as saying that banks and commercial lenders love their money more than they do your business... and that's probably correct.

 

WHAT ARE THE TOP SOURCES OF  CAPITAL TO FINANCE A BUSINESS

 

The challenge to business owners and financial mgrs is to undertake loans and cash flow and balance sheet monetization solutions that can be repaid, even when times are tight. Lines of credit should be used as a day to day liquidity around business capital needs - using them as a long-term capital fix is not the right thing to do.

 

The best businesses that are ' ripe ' for financing solutions are those that understand the true way that cash ' flows' through their business. Your ability to have a strong handle on both historic cash flow as well as your forecast is key to assessing the right financing solution.

 

SOURCES OF  CAPITAL

 

By the way, there might be more financing solutions out there from traditional lenders and alternative financing sources than you might think available - without giving up ownership interest  ! They include:

 

A/R Financing -   In invoice financing the company will pay interest only on funds drawn down under the facility

 

Inventory Loans

 

Short Term Working Capital Loans - Cash flow loans / Business Credit Cards / Merchant Cash Advance - Loans are short-term in nature and monthly payments are  supported by formulas around sales, a company's profits and owner credit score

 

Bank credit lines/term bank loans

 

Equipment Finance/Leasing

 

Sale Leasebacks of owned assets - bridge loans/term loans on equipment and real estate

 

Non-bank asset-based lines of credit - revolving credit facilities based solely on a company's assets

 

SR&ED Tax Credit Loans

 

Unsecured Cash Flow Loans - unsecured debt via mezzanine/cash flow supporting the debt - Quick access to cash but at a higher interest rate

 

Govt Guaranteed Small Business Loans (New max = $1,000,000.00) - interest payments at attractive rates - a solid small business loan solution for new firms, start ups, franchise purchases, etc - Small business lending for  start up finance new firms can often be very challenging - no personal assets are required as collateral, and personal guarantee is limited also - In the U.S. the loan is via the small business administration - In Canada Industry Canada sponsors the loan via participating banks and credit unions

 

  

USES OF FUNDS AND RESTRICTIONS  

 

The ability of a company to attract financing will always be a challenge and can be complex when your firm doesn't have the right advisors. In every industry, it's a little different in the manner that firms can optimize working capital. In some cases, firms might still be proprietorships or partnerships that preclude them from more traditional financing.

 

In the case of proprietorships there is usually just one owner and let's not forget they have unlimited personal liability in any debt or loans they acquire. Unless owners are extremely wealthy ( somewhat rare in a proprietorship ) the amount of personal capital in the business is limited. When it comes to corporations,  owners are often reluctant to raise or inject additional equity.

 

Don't forget also that when new capital is involved there are often restrictions on how the capital will be used, whether that be in the short term or on a longer focus. The best asset monetization strategies allow your firm to run daily operations efficiently - paying employees, maintaining good supplier payment history, and building up inventories and receivables consistent with sales growth.

 

So whether you are a start-up, an unincorporated proprietorship, or a growing corporation there will always be limited sources and uses of funds in some manner. Identifying the source of funds in a solid business plan is a solid strategy and often required by business lenders, especially for a bank loan solution.

 

At 7 Park Avenue Financial, we sometimes encounter owners that disagree on the right type and amount of financing their firm needs. when they are raising funds.

 

How a company uses external funding for sources of finance is also an issue.

 

 

CONCLUSION

 

If you're feeling ' stifled' around your ability to access cash flow and loan solutions that work for you now and in the future speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor  for small business financing who can assist you with your needs around borrowing money for business growth with the best business advice.

 

 

 

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

 

What are sources of capital for financing?

Whare are the 5 Most Common Funding Sources

 

1. Owner equity

2. Business loans from banks and non-bank commercial lenders and asset-based lenders

3. Friends and Family Investment

4. Equity capital from Angel investors

5. Private equity and venture capitalist funding

 

What is the major source of capital for small businesses?

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