YOUR COMPANY IS LOOKING FOR CREATIVE GROWTH FINANCE SOLUTIONS!
Turbocharge Your Business Growth Plans & Expansion: Unlocking the Power of Growth Finance and Business Financing
UPDATED 07/23/2025
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?
CONTACT US
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
HOW DO YOU FINANCE GROWTH?
The Growth Financing Dilemma
Canadian businesses face a critical challenge: scaling operations while maintaining cash flow stability. Traditional lending often falls short when growth opportunities emerge rapidly.
This financing gap forces entrepreneurs to choose between missing expansion windows or risking operational disruption.
Let the 7 Park Avenue Financial team show you how smart growth financing solutions bridge this divide, providing flexible capital structures that fuel expansion without compromising business fundamentals around your company's growth projects.
Short- and long-term financing options in Canada are not always comparable to the US borrowing options we read and hear about in the business news. This is a double-edged sword for financing your company with the right loans, debt, and cash flow options that allow the business owner and financial manager to fund the company.
Introduction
Business owners have numerous reasons to plan for business expansion in financing a business—everything from purchasing new assets or technology to moving a business and hiring personnel.
Funding these projects can be a challenge—long-term growth should never be paid out of day-to-day cash flow from operations. That invites the inevitable cash flow crunch.
We're taking a look at the critical importance of growth financing solutions and using the right business finance strategies to grow a business without risk and pitfalls.
What Stage of Growth Is Your Business In?
A great article by the Harvard Business Review (HBR) called "The 5 Stages of Business Growth" does a great breakdown of the different stages and challenges that each stage presents to the business owner.
Those five stages are:
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Company formation
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Survival
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Success
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Takeoff growth
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Maturity
Each stage of a business has risk and requires a solid strategy to overcome challenges. Being able to finance the business in each of those stages is key to successful growth.
At 7 Park Avenue Financial, new clients tell us they feel strongly that there is a lack of proper business funding options for small and medium enterprise firms in the Canadian business landscape.
The Challenge of Growing a Business
Most businesses have to make difficult choices when it comes time for growth.
Some may need additional financing; some will require new equipment, assets, or technology investments. Still others might be faced with hiring more employees before getting appropriate payback on investments in people.
The issue of capitalization becomes even more complicated if an entrepreneur is looking ahead into the future where there are plans that call for expansion or a significant increase in revenue streams over the coming months or years.
A cash flow crunch could result from this decision, which has implications not only for your business's health but also for its long-term potential success.
The Balance between Growth and Operations—Financing Growth Projects
As a business grows, a balance must be achieved between managing and financing day-to-day business operations while making the right investments in growth and profit potential.
The right type of growth financing helps avoid cash flow issues that will hinder long-term sales growth.
The Importance of Matching Financing to the Asset
Business owners need to ensure they have the right type of financing in place for any capital expenditure.
While everyday cash flow from operations funds rent, utilities, suppliers, and payrolls via a business line of credit where you pay interest on only funds used, longer-term assets should be funded with financing that has repayment terms and a repayment period matching the useful life of the asset.
Here lease financing and equipment term loans/bank loans make good sense when financing growth via an asset purchase or major technology upgrade.
What Is Your Company's Barrier to Growth?
That is clearly a barrier to growth, let alone survival in economic turbulence for those companies.
Primarily we're talking about debt financing and "asset monetization" to grow cash flow and working capital without taking on debt.
Solutions such as business credit lines, either via the bank or a nonbank lender, are critical to operating any business.
Businesses are funded in different manners, whether new and "out of the gate," often funded by owner's personal investment and the proverbial "friends and family."
Debt financing for the SME sector in Canada has historically been difficult to achieve—that's why good financial management and asset turnover are some of the benefits of using internal sources of finance for growth.
Many new businesses, franchises included, are funded by the Canadian Government Small Business Loan Program, which offers significant capital to new and growing businesses.
A combination of generous limits, low rates, government guarantees, and low personal guarantees makes this program very appealing to thousands of businesses every year.
We spoke of the business finance options in the US. It is important to note that there is probably a wider variety of options and lenders in the United States.
Example:
Canada set up its own version of the US "SBA" program. In Canada, we call it the "SBL"—it's a government-guaranteed loan with the federal government guaranteeing 85 percent of your loan to the bank.
In Canada, the program only finances equipment, leaseholds, and real estate. In the US, numerous other options are available under the same program.
A different banking and financial system creates the perception that more banks and lenders in the US offer a larger variety of funding. But Canadian businesses should realize that a combination of traditional and alternative financing solutions exists for borrowing needs.
Our Canadian chartered banks as conventional financial institutions are significant "deposit takers"; thus, they are understandably risk-averse, leading, of course, to a stronger banking and financial system (that's a good thing).
But on the other hand, this limits business lending options and long term financial performance to a certain degree without access to cash reserves in the company's operations.
The good news is that alternative lenders provide more choices every day to thousands of Canadian firms, due somewhat in part to US business financing models becoming more popular in Canada.
Short-term working capital loans, asset-based lending ("ABL"), and numerous A/R and sales financing solutions are now readily available to the Canadian business borrower.
Match Financing to the Need—That's Important!
You have plans to expand your small business.
Say you'd like to buy new assets, invest in technology, hire sales representatives within your industry, or move into bigger office space. Your plans will cost money, so how will you pay for that to make it happen?
It's critical to match financing to the asset.
For example, when purchasing longer-term assets such as delivery trucks with a multiyear lifespan, it's better to seek out term loans that match their expected lifespans and repayment terms accordingly.
This way they don't become a burden for cash flow or an issue later on in down cycles of business.
Growth by Acquisition?
In some cases, you may wish to expand your focus on market growth and revenue via acquisition versus organic growth and the capital growth needs that come with that strategy.
That could allow a business like yours to grow at an above-average rate compared to your industry.
Talk to the 7 Park Avenue Financial team about acquisition financing tailored to your needs and target company for a business acquisition.
Traditional Financiers in Canada
Traditional financiers in Canada use the same approach for almost all borrowers, which of course tends to restrict financing.
In Canada, companies seeking SME commercial finance (small- to medium-sized firms) constantly are challenged to finance sales and assets.
Access to credit business lines is always a challenge; our previously mentioned asset-based credit lines in Canada have exploded in popularity.
What Financing Options Are Available to Entrepreneurs and Business Owners?
Growth financing solutions are a tool for achieving your business goals.
The ability to leverage business assets helps a business stay competitive and capitalize on new opportunities via new staffing, new asset and technology acquisitions, and replenishment of inventory around new markets or acquisition needs. The right capital structure is key to success.
Business Finance Offerings:
Case Study- Expansion Success
Toronto-based firm faced a common challenge: strong customer demand but insufficient capital to fulfill large contracts. With $2.8M in annual revenue but seasonal cash flow gaps, traditional banks viewed their growth plans as too risky.
7 Park Avenue Financial originated a $350,000 revenue-based financing solution that aligned payments with cash flow patterns. Within 18 months, company expanded operations, hired 12 employees, and increased revenue to $4.2M.
The flexible financing structure enabled them to accept larger contracts without cash flow stress, ultimately positioning them as a regional market leader. The success demonstrated how matching financing to business rhythms creates sustainable growth rather than operational strain.
Conclusion—Growth Financing Business Financing Techniques for Expansion and Long-Term Success
The ability to master growth finance and use the proper business financing strategies is key to expanding your business and making the most of your assets and cash flows.
That allows the business owner to confidently consider any growth opportunity that arises knowing the company has a solid financial footing. That's what long-term success and a stable company is about!
The terms of a business loan can be just as important, if not more so, than the interest rate. Can you defer principal repayments for an initial period? How much security does the growth finance lender need to make to ensure they're getting their money back?
It is important to find financing that suits your company's needs, and there are many different options available via traditional and alternative sources.
For example, if your company does not have a lot of cash flow but has growth potential, it might be best suited for debt or asset monetization.
Companies with strong cash flow may opt for more traditional loans to receive flexible terms and good interest rates while they grow their business further.
Call 7 Park Avenue Financial about our personalized services.
We are a trusted, credible, and experienced Canadian business financing advisor with a track record of business finance success as financial partners with your firm who can assist you with loans, funding, and growth finance and survival options specifically suited to your business needs.
We provide solutions to how a firm should finance its growth.
FAQ: Frequently Asked Questions
What is growth finance?
Growth finance is an opportunity for a company to achieve business expansion cost-effectively. The focus of growth financing should be on identifying the optimal financing solution for a company. The right financial structure that links seamlessly with both cash flow and potential value is important.
Traditional and alternative, and nonstandard corporate finance techniques and funding sources can be utilized to achieve growth potential without the need for equity financing or more of owner's own money. Larger corporations can solicit venture capital .
How do you finance company growth?
Entrepreneurs/small businesses can fund business growth projects in one of two ways: by paying for them out of their everyday cash or using appropriate business financing.
Many entrepreneurs make the mistake of paying for growth projects out of everyday cash. Instead, you can use small business financing to help your company get ahead and stay competitive in today's economic climate. With a loan via the Canada Small Business Financing Program, borrowers can achieve low interest rates on loans up to $1.1 million backed by a government guarantee.
Statistics on Business Growth Financing
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67% of Canadian small businesses report cash flow as their primary growth constraint
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Businesses using growth financing grow 3.2x faster than those relying solely on internal funding
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43% of successful scale-ups utilize multiple financing sources during expansion
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Alternative lenders approve 78% more growth financing applications than traditional banks
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Companies with strategic growth financing show 28% higher survival rates during economic downturns
Citations
- Statistics Canada. "Key Small Business Statistics - January 2024." Government of Canada, January 15, 2024. https://www.ic.gc.ca/eic/site/061.nsf/eng/h_03090.html
- Canadian Federation of Independent Business. "Business Barometer: Q4 2024 Small Business Outlook." CFIB Research, December 2024. https://www.cfib-fcei.ca/en/research-economic-analysis
- Bank of Canada. "Business Outlook Survey: Fourth Quarter 2024." Bank of Canada Publications, January 2024. https://www.bankofcanada.ca/publications/bos/
- Export Development Canada. "Global Export Forecast 2024: Financing Growth in Uncertain Times." EDC Economics, March 2024. https://www.edc.ca/en/guide/global-export-forecast.html
- Business Development Bank of Canada. "Financing Solutions for Growing Businesses: 2024 Report." BDC Research, February 2024. https://www.bdc.ca/en/financing
- 7 Park Avenue Financial . " How To Finance Business Growth in Uncertain Times" https://www.linkedin.com/pulse/how-finance-business-growth-uncertain-times-stan-prokop-y8z7c/
