YOUR COMPANY IS LOOKING FOR GROWTH FINANCING!
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
Suite 301
Oakville, Ontario
L6J 7J8
"Business growth financing propels companies into new realms of market influence and operational capabilities."
"Struggling to scale? Discover how the right financing can launch your business to new heights!"
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer BUSINESS GROWTH FINANCING solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
FINANCING BUSINESS GROWTH
Business growth financing strategies financing and business funding in Canada, no secret here, present cash flow and capital funding challenges. The Canadian small business owner and financial manager dreams of his or her firm being able to achieve the Phoenix effect. That’s the Egyptian fable that has the Phoenix Bird rising from the ashes and signifying resurrection and hope.
Securing adequate financing is critical for businesses aiming to scale operations and capitalize on market opportunities. Business growth financing in Canada offers a range of financial solutions designed to fuel expansion efforts. As your company evolves and grows the strategic acquisition of such financing can often be the linchpin in transitioning from small-scale operations to significant market contenders.
SALES AND CASH FLOW - THEY ARE DIFFERENT!!
Let’s dig in. We're never surprised these days, in talking to our clients, that many owners/managers sometimes don't associate growth with a cash flow drain. Their logic is: ' Sales are great, we've just got those new contracts and PO's, and we’re introducing a new product ‘...etc...Etc. In their minds, and rightfully so, those expanded revenues will generate more profits. It's a perfect world, right?
Not so fast! The owner/manager has forgotten in those growth scenarios we noted that cash goes out quicker than it goes in. It's a fundamental cornerstone of business finance- Growth eats cash!
WHEN SALES GROW YOUR CURRENT ASSETS BUILD UP!
The reason is of course is that you must invest more in inventories, receivables, equipment, as well as ' beefing up ' other areas of fixed costs - i.e. people, etc.
RECOGNIZING A FINANCIAL CRISIS
So even if the business owner/manager recognizes the problem what then is the solution to avoiding a financial crisis of some sort? Frankly, we see things go awry quickly because when you firm is in cash crisis mode that is not viewed by commercial lenders and banks as a lending opportunity to your firm!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! You don't want to be caught in your lenders board room explaining that you didn’t see it coming.
BUSINESS LINES OF CREDIT CAN PROVIDE THE SOLUTION
The most common solution for these sort of growth stories is the business line of credit. That type of financing can be achieved via a Chartered bank credit facility, or a newer solution these days, the Asset Based Line Of Credit, offered by non-bank commercial lenders. These facilities of course monetize your 'current assets ' and allow you to borrow on a revolving basis.
WHY IS ASSET TURNOVER KEY TO GOOD CASH FLOW
A word to the wise, don’t let accessing either of these two facilities lull you into a false sense of security. Your focus should still be on strong asset turnover to the best of your ability, so inventory turns and collecting A/R in high growth situations should be a top priority.
HOW TO PLAN FOR CASH FLOW NEEDS
Many business owners still don’t realize that they can plan effectively for cash flow needs. A simple spreadsheet tracking your sales, collections will identify the amount of your cash needs. That allows you to be proactive in planning for business growth financing. By the way, that sort of simple analysis will always be viewed positively by your cash flow lender.
WHAT STAGE OF GROWTH IS YOUR FIRM IN?
Naturally, there are different stages of ' GROWTH' when it comes to business funding solutions that can be all the way from start-up to explosive growth scenarios. All stages of business growth come with different financing solutions - some short term, others long term.
Small businesses aren't exactly the candidate for those Bay street venture capital folks. We've referred to bank credit lines, as well as non-bank ABL lines of credit. Other cash flow growth solutions include:
A/R Financing
Inventory Loans
Access to Canadian bank credit
Non-bank asset-based lines of credit
SR&ED Tax credit financing
Equipment / fixed asset financing
Cash flow loans
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance
Securitization
KEY TAKEAWAYS
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Types of Financing: Understanding the variety of financial instruments available, such as loans, debt financing versus equity, and grants, is crucial. Each option serves different strategic purposes and business stages.
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Impact on Expansion: Evaluating how funds will be deployed to ensure maximum growth, whether through geographic expansion, product diversification, or increased production capacity, is vital.
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Strategic Funding: Identifying the right time and situation for securing financing from a financial institution or non-bank lender can determine the success of the investment, influencing both short-term outcomes and long-term sustainability.
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Risk Management: Recognizing and mitigating the risks associated with each type of financing ensures that growth does not compromise financial stability.
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Return on Investment (ROI): Measuring the effectiveness of invested capital in generating revenue and ensuring that the growth achieved justifies the financial risk taken is essential.
CONCLUSION
Which type of financing will make your growth successful? Let your firm experience the PHOENIX EFFECT...
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with growth funding and financing options and be a business partner in business
FAQ:FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION
How does business growth financing benefit a small company?
By providing necessary funds, it supports expansion, technology upgrades, and market penetration, vital for competing effectively.
What criteria must businesses meet to secure growth financing?
Traditional bank loans require strong financial records, growth potential, and a solid business plan to successfully borrow money
Can startups access business growth financing?
Yes, especially through options tailored for high growth potential despite limited history. Some firms offer loans especially focused on start-ups.
What are common mistakes businesses make when seeking growth financing needs?
Not aligning financing types with their specific needs and underestimating the amount and resources required to provide capital to the business
How should a business prepare for applying for growth financing?
Develop a detailed business plan for commercial lenders and financial institutions such as banks, improve credit scores, and understand the market thoroughly.
How does choosing the right type of growth financing affect a business?
It determines the funding cost around the interest rate , and repayment terms, and can influence the company's financial health. Programs such as the federal government Canada Small Business Financing Program government loan can fund intangible assets over a longer amortization period
What long-term effects can growth financing have on a business?
It can lead to sustainable growth, increased market share, and higher company valuation as well as a potential competitive advantage in their industry
How do businesses typically measure the success of growth-financed projects?
By assessing ROI, market position improvements, and the achievement of projected growth targets growing businesses can measure long term business success
