YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS!
IMPROVING NET CASH AND TOTAL CASH BALANCE SOLUTIONS
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
BUSINESS FUNDING SOLUTIONS
More than ever, business financing in Canada requires some ‘financial intelligence’ from the owner/financial manager/entrepreneur.
One key funding solution available to entrepreneurs is business grants, which are non-repayable and offered by various organizations.
Understanding the different types of grants available from government sources and the criteria for eligibility can provide significant benefits to small businesses and startups.
Cash flow finance is knowing how to fund assets while maintaining positive cash flow in the short and long term.
Business loans are key to maintaining positive cash flow and funding assets. And it might just be time for a reality check on that cash flow statement! It’s all about those financial statements. Let’s dig in.
Breaking the Business Funding Barrier
Canadian businesses struggle to secure adequate financing for growth and operations.
Limited access to capital stifles expansion, prevents inventory purchases, and constrains hiring - potentially leading to missed opportunities and market share loss.
Let the 7 Park Avenue Financial team show you that diverse funding solutions exist beyond traditional banking, offering flexible terms and faster approvals tailored to your business needs.
DID YOU KNOW?
- 26% of Canadian businesses cite access to funding as a major growth barrier
- 68% of small businesses seek external financing annually
- Alternative lending grew 300% in the past 5 years
- 42% of businesses fail due to insufficient funding
- Average approval rate for traditional business loans: 15-25%
UNDERSTANDING YOUR FINANCIALS IS KEY!
Naturally, the more you understand your business's financial position and the options available to finance your company, the more likely you are to succeed.
Understanding your numbers is the key to using your business financial intelligence. Looking for a ‘ secret code ‘—Top experts tell us that companies that use their business financial intelligence properly when financing their business stand head and shoulders above their competitors.
Financial institutions are crucial in providing funding and resources to assist businesses in accessing capital and support networks.
Financing your company comes from understanding your real profit, what the assets on your balance sheet are truly valued ( and therefore financeable ) at, and how those two parts of your business always come back to … CASH FLOW!
All your cash transactions are reflected in your cash flow statement, a key part of your financials.
THE WARREN BUFFET SOLUTION?
Warren Buffett has another term for all that - He calls it ‘owner earnings.’
He says it’s a combination of operating your business daily, investing in new assets, and ensuring owners can properly withdraw money from the business.
It’s easy for most business owners to understand that they need cash to pay bills, buy new equipment and invest in the future - sometimes with actual R&D expenses for eligible businesses.
Economic development initiatives can support business growth and innovation by providing funding for programs and resources that promote job creation, regional revitalization, and the enhancement of the capabilities of underserved populations, particularly Indigenous communities.
When a business is growing, it’s straightforward to focus less on cash flow and spend time on your company’s financial statements and accounts payable challenges -
But when early warning signs start to emerge around cash flow and funding problems. It’s time to consider all your business finance alternatives to achieve positive net cash flow. But how much cash do you need? That is the question!
HERE ARE YOUR KEY CASH FLOW FINANCING OPTIONS FROM COMMERCIAL LENDERS AND TRADITIONAL FINANCIAL INSTITUTIONS!
What are those alternatives to reversing negative cash flow? They include
A/R Financing - immediate cash generated from sales as your company generates revenues - next to cash on hand and cash equivalents, your accounts receivable is a very liquid asset! Accelerates cash inflow with no long-term debt being added to the balance sheet
Inventory Finance - funding the three types of inventory: raw materials, work in process, and finished goods ready for shipment
SR&ED Tax Credit Loans (R&D refunds) - recouping cash spent on your research and development income statement expenses for a given period - A specific period is allowable for refunds
Non-bank asset-based lines of credit
Equipment Finance/ Sale Leasebacks - acquiring capital assets / fixed assets/technology - Saving more money and conserving cash via 100% financing of assets needed for the business - three years, as well as 5 years, are typical asset refinancing amortizations
Purchase Order Finance
Unsecured Cash flow loans
Working Capital Loans / Term Loan - flexible terms for a short or long-term given period of repayment
Commercial Mortgages - real estate acquisition of company-owned premises
Grant Funding - non-repayable financial support from government or charitable organizations for small businesses and startups that meet specific criteria
Of course, those solutions are the alternative to Canadian chartered bank solutions with lower interest rates when a business considers how much money it needs and where it will come from.
While the alternative financial solutions we’ve mentioned are typically more expensive for improving operating cash flow, they are much cheaper than seeking new owner equity.
While the debate seems eternal on whether Canadian banks support the SME sector in Canada, it’s comforting to know there are, in fact, more new options than ever before.
Spending time on realistic cash flow projections/sales forecasts is important, which demonstrate how ‘ money moves ‘ in your business!
Business owners and managers who run their businesses soundly around things like accounts receivable turnover, inventory turns, and proper financing of new assets will always have the upper hand in negotiating new finance solutions.
It’s also easier because new forms of financing are more easily negotiable when things go wrong.
GOVERNMENT FUNDING OPTIONS
Government funding options are vital for Canadian businesses looking to expand and innovate. These funding solutions can help companies to access the capital they need to grow, enter new domestic and international markets, and contribute to regional economic growth. Here are some key government funding options available:
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Tax credits are powerful tools that allow businesses to reduce their tax liability. They can be particularly beneficial for supporting research and development activities, job creation, and other essential business operations. Businesses can reinvest savings into further growth and innovation by leveraging tax credits.
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Grants: Government Grants provide non-repayable funding to businesses, making them an attractive option for fostering business growth, innovation, and job creation. These grants can be used for various purposes, including expanding operations, developing new products, and entering new markets.
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Loans: Government loans offer repayable funding to businesses, often with favourable terms and interest rates. The Canada Small Business Loan Program provides funding to support small businesses. These loans can support business growth, expansion projects, and job creation initiatives, providing the necessary capital to scale operations and increase market presence.
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Wage subsidies support hiring new and existing employees, helping businesses manage labour costs while expanding their workforce. These subsidies can be crucial for job creation and retention, ensuring businesses have the human resources to thrive.
By exploring these government funding options, Canadian businesses can find the financial support they need to drive growth and achieve their strategic objectives.
Case Study:
A manufacturer faced a critical expansion opportunity but lacked immediate capital. Through our flexible business funding solution, they secured $250,000. This enabled them to purchase discounted equipment, increasing production capacity and revenue growth within six months. The flexible repayment terms matched their cash flow cycle, ensuring sustainable growth without financial strain.
KEY TAKEAWAYS
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Understanding credit requirements shape your funding options fundamentally.
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Cash flow analysis determines repayment capacity decisively
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Revenue history impacts approval chances significantly
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Collateral requirements affect interest rates substantially
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Documentation preparation expedites funding processes immediately
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Grant providers prefer to support businesses with a track record
CONCLUSION
Are you seeking a proper reality check on your business financing options in Canada?
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow financing needs while you assess debt or equity or cash flow financing solutions.
FAQ: FREQUENTLY ASKED QUESTIONS
What is cash flow financing?
Cash flow financing is a type of loan that uses the company’s expected future cash flows to pay back funding solutions. Cash flow loans provide access to capital to grow a business and can be structured as unsecured loans.
Cash flow financing only works if the company can generate significant cash for debt repayment. A quick look at what “cash” means to a business can help them decide whether this type of product would benefit the organization.
How does business funding accelerate growth opportunities?
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Enables immediate market expansion
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Allows bulk inventory purchases at discounts
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Supports hiring key personnel
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Finances marketing campaigns
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Funds equipment upgrades
What makes alternative business funding better than traditional loans?
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Faster approval processes
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Flexible qualification criteria
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Customizable payment terms
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Less documentation required
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No collateral options are available
How can proper business funding improve cash flow?
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Smooths seasonal fluctuations
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Covers unexpected expenses
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Manages payroll efficiently
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Negotiates vendor discounts
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Maintains operational stability
What types of businesses qualify for funding?
Does my credit score limit funding options?
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Alternative solutions available
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Credit repair programs offered
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Revenue-based options exist
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Partnership opportunities
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Industry-specific programs
What documentation ensures quick funding approval?
How long does business funding typically last?
Can seasonal businesses qualify for funding?
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Industry-specific programs exist
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Flexible payment scheduling
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Revenue-based options
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Off-season considerations
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Custom solution design
What makes business funding essential for growth?
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Capital enables expansion
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Supports market opportunities
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Maintains competitiveness
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Enables technological advancement
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Provides emergency reserves
How does funding impact business sustainability?
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Ensures operational continuity
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Supports strategic planning
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Enables market adaptation
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Maintains competitive edge
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Facilitates innovation
What determines funding approval decisions?
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Business credit history
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Revenue consistency
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Industry type
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Time in business
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Financial documentation
What types of business support are available to Indigenous entrepreneurs and communities?
Indigenous entrepreneurs and communities can access various types of business support, including financing, mentorship, community planning, and training programs. These supports help businesses thrive in economic development activities such as mineral exploration, entrepreneurship financing, and capacity building within Aboriginal populations.
What are business accelerators?
BUSINESS INCUBATORS AND ACCELERATORS
Business incubators and accelerators play a crucial role in nurturing start-ups and small businesses, providing them with the resources, mentorship, and funding needed to succeed. These organizations offer a supportive environment where businesses can grow and thrive. Here are some notable business incubators and accelerators:
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MaRS Discovery District: Located in Toronto, MaRS Discovery District is a leading business incubator that supports start-ups and small businesses in the technology and life sciences sectors. MaRS offers access to funding, mentorship, and a network of industry experts, helping businesses navigate the challenges of growth and innovation.
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Communitech: Based in Waterloo, Communitech is a hub for technology start-ups and small businesses. It provides a range of services, including access to capital, mentorship programs, and collaborative workspaces. Communitech’s focus on fostering innovation and entrepreneurship makes it a valuable resource for businesses looking to scale.
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Ryerson University’s DMZ: The DMZ at Ryerson University in Toronto is a renowned business incubator that supports technology start-ups. The DMZ offers a comprehensive suite of services, including funding opportunities, mentorship, and access to a global network of partners and investors. This support helps businesses accelerate their growth and achieve their goals.
By leveraging the resources and support offered by business incubators and accelerators, small businesses can overcome obstacles, access new opportunities, and achieve sustainable growth.
