YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS!
UPDATED 05/01/25
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
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Email = sprokop@7parkavenuefinancial.com
Business loan funding in Canada shouldn't be some ' scientific mystery ' when choosing and properly accessing the right financing and company loans from the right business lender, including Canadian chartered banks.
We're putting you one step closer to the right finance solutions and loan for your company's needs in your industry.
Commercial business loans provide access to working capital, allowing you to generate cash flow to cover day-to-day operations.
But it's important to understand the types of Canadian business financing solutions and the requirements for the type of financing you need. Let's dig in!
WHY YOU NEED A COMMERCIAL BUSINESS LOAN
Every size and type of business will eventually require commercial financing. Business needs vary by type of business and industry -
Your needs might revolve around:
Business growth and Expansion
Acquiring new assets and technology
Acquiring commercial real estate
Refinancing needs around existing debt and credit facilities
Cash flow generation via monetization of business assets
Business acquisition of competitors
WHAT IS THE SECRET TO BUSINESS LOAN FINANCING
It shouldn't be a secret that successful business loans and financing for your company require a solid understanding of your current financial structure and which equity, debt, and asset financing/monetization strategies work for your firm.
We're focusing on debt and cash flow/financing your assets—the equity challenge is a whole different kettle of fish.
WHAT ARE GOOD REASONS TO GET A BUSINESS LOAN?
Business financing works best when a business is growing, so business finance solutions that allow you to generate more sales and acquire much-needed new assets or technology will almost always make sense for the Canadian business owner.
The challenge is securing the right business loan that allows you to ensure it has repayment and flexibility that work best for your firm.
SHORT-TERM FINANCING OR LONG-TERM?
Short-term financing needs that allow you to purchase more inventory, take on new or larger clients and contracts, or invest in R&D are solid reasons for accessing business capital.
Sometimes, you might contemplate a merger, acquisition, or expanding branch locations and facilities.
There is, in fact, a specific solution for every type of financing need in Canada - you only need to access the best advice on what type of financing works for your firm and ensure the cost of financing/interest rate makes sense for repayment and any potential additional of debt to the balance sheet.
THE CHALLENGE AROUND TRADITIONAL FINANCING
The basic challenge around taking on new debt or loans and accessing finance for small businesses is that if done improperly, the problems that arise can impact your ability to run and grow your business.
Conditions, covenants, and personal guarantees impact the behaviour of both owners and their financial managers in certain cases.
GOVERNMENT BUSINESS LOANS?
A business loan for startups is also typically a major challenge for entrepreneurs, as is a bank loan for a business. Still, solutions such as the Government of Canada Small Business Loan program and a government-guaranteed loan are great for starting a business.
This program facilitates many franchise financing and start-up business loans in Canada. Monthly payments are tailored to the borrower's needs via the bank or other financial institution, such as a business credit union.
Guaranteed government loans can finance leasehold improvements, buy business real estate, finance construction, and upgrade assets and technology.
Recent changes made to the government loan program have been very positive. These include a new maximum loan amount of 1.1 million and working capital, intangible assets, leaseholds for leased property, and line of credit facilities now available to the program.
Farming businesses have a separate related program.
Talk to the 7 Park Avenue Financial team about this program, which funds billions of dollars of small business financing every year for thousands of entrepreneurs. 2% application fees apply, and this amount can be bundled into the loan.
When you take on any secured debt, it's important to focus on your comfort level around repaying any loan from your cash flow.
Naturally, assets secured under that financing are the collateral for those loans and are subject to any default scenarios. In term loans, the borrower makes lump sum payments.
UNSECURED LOANS
That brings us to the solutions provided by unsecured loans. These loans have no tangible security but are, of course, more costly and present challenges to both borrowers and lenders.
A good example of unsecured loans is ' mezzanine finance ‘, which is essentially unsecured cash flow loans.
We've maintained that securing business financing is no ' scientific mystery '.
Your request comes with basic requirements, typically a business plan or strong executive summary, financial statements, and a cash flow forecast.
The critical requirement in a cash flow forecast is showing how the loan will be realistically repaid. Certain loans and types of financing are well suited to buying/merging with another business. Here, it's essential to show the combined strengths of the new business.
COMMERCIAL CREDIT CRITERIA FOR BUSINESS FUNDING
What, in fact, will lenders look at when it comes to getting you ' one step closer ' to financing approval? They will look at:
Assumptions/forecasts
Operating efficiency of the business
Asset levels/ quality of assets
In some instances, third parties such as appraisers of business valuators might be involved in certain financial transactions, especially if your financing needs are larger relative to small business loan requirements.
A final word on small business loans in the SME sector?
Simply that owners/financial managers must understand how different loans and asset financing/ cash flow financing work. There are numerous differences in how the following types of solutions can help you run and grow your business -
FINANCING SOLUTIONS TO RUN AND GROW CANADIAN BUSINESS
A/R Financing
Inventory Loans
PO Financing
Short term cash flow loans / Merchant Cash Advance / Business credit cards
Franchise Loans
Equipment Financing / Equipment loans
Asset-based lending
Non-bank asset-based business credit lines
SR&ED Financing loans
Unsecured cash flow loans
Bank lines of credit/term loans
SUPPLIER CREDIT / VENDOR CREDIT
Although credit from your suppliers/vendors is not commercial financing per se, it is still a valuable solution -
That's because payments to your suppliers directly affect cash flow, and the ability to slow payable via extended terms increases cash flow.
Being able to maintain a positive relationship with vendors while obtaining agreement on extended terms is a cash flow-positive situation! However, beware that a good business credit history can be damaged if supplier relationships are damaged and all parties do not agree upon payment terms.
KEY TAKEAWAYS - BUSINESS LOAN FUNDING
Be prepared when applying for a business loan. The ability to provide professional and up-to-date information on your business is key to acquiring capital successfully.
The key to success is to demonstrate your present or future ability to generate profit and grow your business.
A professional business plan and cash flow projection are always recommended, and these can easily be prepared with the help of your accountant or an experienced business financing advisor.
At 7 Park Avenue Financial, we take great pride in preparing business plans, financial projections, and management overviews that meet and exceed any lender requirements you might be asked to provide.
We can't overemphasize the importance of always ensuring you have proper accounting data and access to business accounting advice.
Companies looking to explore acquiring new or used assets ( yes, used assets can be financed !) should explore professional assistance in equipment leasing or equipment loan strategies, including the sale-leaseback on any assets you might already own and wish to refinance.
It's a solid way to maintain and monetize your key assets for additional working capital. Business loan funding financing lenders in the alternative finance area are experts in monetizing assets.
Case Study: Business Funding Success
Challenge: Alberta's growing HVAC service company faced a critical expansion opportunity when a competitor announced retirement. With just 45 days to acquire the competitor's customer contracts, equipment, and service territory, traditional bank financing timelines would have caused them to miss the opportunity.
Solution: The company secured a tailored business funding package combining:
-
$175,000 equipment loan against existing service vans and tools
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$125,000 working capital line based on accounts receivable
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$50,000 merchant advance against future service contracts
Results:
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Acquired competitor's assets within the 45-day window
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Expanded service territory by 40% without adding fixed overhead
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Increased monthly revenue by 62% within 90 days
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Repaid merchant advance component within 7 months
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Refinanced remaining amounts with traditional bank at lower rates after 10 months
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Achieved 114% ROI on the acquisition within first year
CONCLUSION
Lending for small businesses is always a challenge it seems.
Are you looking to move one store closer to the right type of small business loans for your company?
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your business loan funding needs.
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK/ MORE INFORMATION
WHAT IS A BUSINESS LOAN?
Business loan solutions come as a lump sum of the business capital term loans with a monthly payment or operating line of credit from financial institutions, such as a bank or other financial institutions, such as a commercial finance company. Most business loans require a personal guarantee and verification of the personal credit of the business owner/business owners. Interest rates and loan costs vary by type of loan and lender. Canada's small business financing solutions can also cover an equipment purchase, or in some cases, purchase order financing can be utilized to purchase inventory.
The provincial and federal governments support businesses via loan guarantee programs for various business purposes. Commercial property can also be acquired via business loans from banks or non-bank lenders. Business lines of credit are used to cover operating expenses, and repayment terms vary based on traditional finance or alternative financial solutions.
Loan amount and approval vary based on size, type of financing, and overall credit risk as adjudicated by the lender. Small businesses choose online banking and working capital facilities from online lenders, known as short-term working capital loans or merchant cash advances. Businesses pay interest on funds utilized.
Can I get a business loan without collateral?
Unsecured loans are available to businesses without collateral if they can meet cash flow tests and demonstrate other positive factors around good balance sheets and profits. In some cases, the personal credit score of owners will play a factor when assets are not pledged by the business.
How do I qualify for a business loan?
Business loan applications revolve around the ability to provide up to date properly prepared financial statements and bsiness plan as well as the ability of small business owners to show verifiable income and a solid credit history . In many cases copies of business bank statements will help validate the loan application.
Banks provide startup financing provided business borrowers can demonstrate repayment via collateral as well as demonstrating good personal net worth and positive personal credit score of the owner.
Are There Disadvantages to a Commercial Loan
Potential downsides to business loans include the time it takes for loan approval as well as the amount of documentation and paperwork in the business lender underwriting process - If business defaults on loan payments a business lender can realize the collateral provided in the loan when loans were secured.
Is using a commercial loan calculator or equipment lease calculator beneficial?
Business Loan and Lease calculators help business owners make the right financing decisions and understand loan details regarding leases, business loans, and commercial mortgages from a financial institution. They allow the borrower to understand loan terms regarding payments, balloon options, and principal and interest deductions regarding the amount of financing desired and interest rates available.
How do business lenders determine commercial loan interest rates?
Banks and other business lenders base interest rates on businesses' credit quality and the personal finances of small business owners. In cases of asset financing, collateral value will play a role. Cash flow must reflect the ability to meet loan obligations.
What types of business loans are available for Canadian small businesses?
Business funding comes in various forms, including term loans, lines of credit, equipment financing, merchant cash advances, invoice factoring, and microloans. Each serves different needs—term loans provide lump sums for major investments, lines of credit offer flexible ongoing access to funds, equipment financing secures specific assets, merchant cash advances provide quick capital based on future sales, invoice factoring converts outstanding invoices to immediate cash, and microloans support smaller ventures with limited funding requirements.
Where can Canadian business owners find government-backed funding programs?
Canadian business owners can access government-backed funding through:
- Business Development Bank of Canada (BDC)
- Export Development Canada (EDC) for outside Canada economic development opportunity
- Regional development agencies like FedDev Ontario or Western Economic Diversification
- Provincial programs specific to each territory
- Canada Small Business Financing Program through major banks
- Futurpreneur Canada for young entrepreneurs
- Specialized programs for indigenous business owners through NACCA
Why would a business choose alternative funding over traditional bank loans?
Businesses choose alternative funding over traditional banks for:
- Faster approval processes when facing time-sensitive opportunities
- Less stringent qualification requirements for newer businesses
- Flexibility in repayment structures aligned with cash flow patterns
- Specialized industry knowledge from lenders familiar with specific sectors
- Ability to access capital with less-than-perfect credit profiles
- Complementary advisory services often included with funding
- Simpler application processes requiring less extensive documentation
Who qualifies for specialized industry-specific funding programs in Canada?
Qualification for specialized industry funding programs typically includes:
- Technology companies eligible for SR&ED tax credits and innovation grants
- Agricultural businesses qualifying for Farm Credit Canada programs
- Manufacturing firms accessing CME SMART programs and export development funding
- Clean technology ventures eligible for Sustainable Development Technology Canada funding
- Film and media productions qualifying for cultural industry tax credits
- Tourism businesses accessing regional tourism development funds
- Healthcare innovations qualifying for health technology acceleration programs
What documentation is typically required for business funding applications?
Business funding applications commonly require:
- Business financial statements (2-3 years if available)
- Personal and business tax returns
- Business Bank statements (typically 3-6 months)
- Business plan or project proposal for expansion funding
- Accounts receivable and payable aging reports
- Proof of ownership and business registration documents
- Personal identification and proof of Canadian status
- Industry-specific licenses and certifications
- Cash flow projections for the funding period
- Collateral documentation for secured loans
What's the difference between secured and unsecured business funding loans?
Secured and unsecured business funding differ fundamentally in risk allocation:
- Secured loans for small business funding require specific collateral (equipment, property, inventory)
- Unsecured loans rely on business performance and credit without specific assets pledged
- Secured options typically offer lower interest rates and higher funding amounts
- Unsecured options provide faster access without risking specific business assets
- Secured loans often have longer terms available (5-25 years)
- Unsecured options typically have shorter terms (6 months to 5 years)
Why might businesses choose higher-cost alternative funding over bank loans?
Businesses often choose higher-cost alternative funding because:
- Qualification requirements accommodate businesses that don't meet bank criteria
- Funding speed meets urgent opportunities or challenges
- Streamlined application processes require less documentation
- Flexible structures adapt to unique business models
- Industry expertise provides value beyond just the capital
- Less restrictive covenants allow operational freedom
- Relationship building can lead to improved terms over time
CITATIONS / MORE INFORMATION
- Business Development Bank of Canada. (2023). "Canadian Business Funding Trends Report." Retrieved from https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/publications/business-funding-trends
- Statistics Canada. (2024). "Survey on Financing and Growth of Small and Medium Enterprises." Retrieved from https://www.statcan.gc.ca/en/survey/business/financing-growth-sme
- Canadian Federation of Independent Business. (2024). "Banking and Financing Report: Small Business Perspective." Retrieved from https://www.cfib-fcei.ca/en/research/banking-financing
- Deloitte Canada. (2023). "Alternative Lending Landscape in Canada." Retrieved from https://www2.deloitte.com/ca/en/pages/financial-services/articles/alternative-lending-landscape-canada.html
- Export Development Canada. (2024). "Business Financing Guide for Canadian Exporters." Retrieved from https://www.edc.ca/en/guide/business-financing-guide.html
