YOUR COMPANY IS LOOKING FOR FINANCE OPTIONS!
How To Get A Loan For A Business Based On Type Of Financing You Need
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 CHOICE IN TYPES OF FINANCING?
CONTACT US - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
"In the dynamic landscape of Canadian business, securing the right financing is not just an option—it's a necessity for growth and
"Unlock your business's potential: Discover the key to overcoming your financing hurdles today!"
How to Leverage Business Financing Options in Canada for Growth
Business finance options in Canada. And oh yes, we don’t believe in angels!
We’re not talking about those heavenly ones, just primarily VCs and angel investors.
Truth be told we acknowledge and respect them of course, it’s just that we cringe when we talk to many of our clients in the small business sector who have ' over ' focused on these two sources of capital when the reality is that 98% of the funding your firm needs is probably only available from debt financing, and asset monetization for working capital or cash flow.
Shocking Statistic: "A staggering 70% of Canadian entrepreneurs point to financing as their biggest hurdle to growth, yet only a fraction are aware of or consider alternative financing options beyond traditional banks."
INTRODUCTION
Looking to expand your existing business, or aiming to bridge a financial gap, understanding the diverse financing options available within Canada is crucial to achieving your business goals. Let the 7 Park Avenue Financial team help you make informed decisions around financing methods to grow your business
That ' equity capital' search for a firm simply wastes valuable time – unless you’re ready. Many are not! That brings us back to our favourite client questions' how to get business financing ' and ' What type of business financing is available ?"
BUSINESS FINANCE USUALLY COMES WITH OBSTACLES TO FINANCING INNOVATION
While the sources of funding for the Canadian business owner and financial manager might seem plentiful in the TV commercials or newspaper, the real world tells us that there are a lot of tricky obstacles facing the owner /manager looking for financing options via bank or credit union financing.
LET 7 PARK AVENUE FINANCIAL HELP YOU UNSTACK THE ODDS
Is there a way to change all that and ensure that the odds aren't so stacked against you? We think there is and it comes down to simply knowing what business finance options are available to you and picking the one ( or ones ) that suits your operational or growth needs.
WHAT DEBT FUNDING AND CASH FLOW SOLUTIONS ARE AVAILABLE TO YOUR COMPANY?
So how do business owners analyze and choose debt or asset monetization options? Our clients think it has to be a Canadian chartered bank solution. And we're the first to start working on that, provided you have cash flow, collateral, profits, a clean balance sheet, and solid owner personal credit histories. That's tough to achieve these days for many, which still leaves several financing solutions on the table.
They include:
A/R Financing
Inventory Loans
Access to Canadian bank credit
Non bank asset based lines of credit
SR&ED Tax credit financing
Equipment Finance / fixed asset financing
Cash flow loans
Royalty finance solutions
Government Of Canada Small Business Loan Program - The Guaranteed federal small business loan ( good owner credit score required ) The small business government loan can be used for franchise loans also when it comes to how to get funding for your business idea, or even a business acquisition - Government Crown Corp BDC also funds businesses
Asset Based Lending
Securitization
Mezzanine Financing
For many types of capital needs a business plan and cash flow projections are recommended - At 7 Park Avenue Financial we prepare business plans for our business loan applicants that meet and exceed lender requirements
P.S. We’re not fans of ' family and friends loans' as they make those warm family gatherings somewhat uncomfortable!! Friends and family carry risk!
FINANCING THE BALANCE SHEET AND MARGINING YOUR CURRENT AND FIXED ASSETS
You might not know it but in a lot of cases, your borrowing power is already pre-determined if you're already in business and have assets. Receivables can be financed up to 90%, inventory financing ranges from 25-60%, and appraised assets can be financed anywhere from 50- 80% of their true value. Many clients we work with consider refinancing their established business for assets such as buildings and fixed assets, which are a great source of working capital when the interest rates and structure are suitable.
The good news about these solutions, again with apologies to all those great angel investors and venture capitalists in Canada, is that you aren't required to give up equity ownership when you source any one of these options.
So, yes you can consider those angels and VC's with the searching and managing that comes with that journey, but remember that there are a lot of straightforward finance options readily available for your firm if you have growth prospects and assets are open to different types of business financing in both traditional and alternative finance.
CONCLUSION
So, cancel that IPO (really, what were you thinking?!) and seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your SME small business financing needs that the business owner is looking for. Eliminate the complications and the risk, and get the business funding options you need.
FAQ: FREQUENTLY ASKED QUESTIONS PEOPLE ALSO ASK MORE INFORMATION
What are the benefits of debt financing for Canadian businesses?
Debt financing provides a structured way to fund your business with the flexibility of various loan types, albeit with a commitment to repay over time.
Can startups qualify for government grants in Canada?
Yes, startups/ new businesses in specific sectors like technology, innovation, and sustainability can qualify for non-repayable government grants and incentives when a traditional bank loan from a financial institution such as credit unions or banks might not be accessible. Financing programs such as the SR&ED program provides valuable capital to innovative businesses investing in r&d.
Is crowdfunding a viable option for all types of businesses in Canada?
Crowdfunding is particularly effective for businesses with a strong consumer appeal or innovative products, as it also serves as a market validation tool when you are trying to establish business credit when bank loans are not attainable from financial institutions.
Why might bootstrapping be preferred by some Canadian entrepreneurs?
Bootstrapping can help initial financing success because it minimizes external debt and maintains ownership control, ideal for businesses aiming for slow, organic growth without external pressures.
What are the tax implications of receiving a business loan in Canada?
Receiving a business loan does not have direct tax implications; however, the interest paid on the loan is often tax-deductible.
How does one build a strong business credit score in Canada for your own business?
Consistently managing your debts, timely bill payments, avoiding high debt on business credit cards, and maintaining a low credit utilization ratio are key to building a strong business credit score.
Are there financing options specifically for minority-owned businesses in Canada?
Yes, there are alternative small business lending solutions and small business loans and programs and funds specifically designed for the small business owner to support minority-owned businesses, including those owned by women, Indigenous peoples, and immigrants.
What is the difference between a secured and an unsecured business loan?
A secured business loan requires collateral, whereas an unsecured loan does not but may have stricter eligibility criteria and higher interest rates.
How can Canadian businesses leverage their assets for financing?
Asset-based financing allows businesses to use their existing assets, like inventory or receivables, as collateral for a loan, providing a flexible funding solution.
What criteria do banks consider when evaluating a business loan application in Canada?
Banks assess credit history, financial projections for cash flow, collateral, business plan viability, and the borrower's industry experience when evaluating a business loan application.
How can angel investors impact the growth of a startup in Canada beyond financial support?
Angel investors often provide valuable mentorship, industry connections, and strategic advice, helping startups navigate early challenges and scale effectively.
What are the main advantages of government-funded business loans or grants in Canada?
Government-funded loans or small business grants often come with lower interest rates, favourable repayment terms, or non-repayable funding, specifically targeting innovation and economic growth.
How does equity financing work in Canada?
Equity financing involves selling a share of your business to investors in exchange for capital, offering a repayment-free solution to fund your venture.
