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BUSINESS LOAN SOLUTIONS YOU NEED TODAY
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Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
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7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Choosing the best business financing options is crucial for sustainable growth and long-term success.
Struggling to secure business financing? Discover the top solutions to fuel your growth!
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer the best business financing options and solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
7 Park Avenue Financial: “Canadian Business Financing with the intelligent use of experience”
CANADIAN BUSINESS FINANCE OPTIONS
Canadian business loans and financing options are often near the top of the business owner/financial manager’s ' to-do' list when running and growing the business.
It can also be said that it’s often common for the owner/manager in the SME sector to feel ' lost ' when it comes to achieving those financial goals and accessing the right business loan. Does this have to be the case? Not really. Let's dig in.
Best Business Financing Options: An Article Opening Paragraph
Navigating the myriad of trim business financing options can be daunting for entrepreneurs and established businesses. With various financing solutions available, selecting the best option tailored to your unique needs is crucial for sustainable growth and success. This comprehensive guide explores the most effective and accessible business financing options to help you make informed decisions and secure the capital your business needs to thrive.
WHAT IS THE SME BUSINESS SECTOR?
By now, almost everyone seems to recognize that the SME (small to medium enterprise) sector in Canada is one of the economy's constant powerhouses.
SMEs often rely on various financial institutions for their financing needs. Everyone seems to have a different definition of what this sector is; some maintain its, for example, companies with under several hundred employees and sales of 20 Million as an example.
That’s not that SME to us! but less focus on the solutions available to finance those firms.
SMALLER BUSINESSES HAVE A LARGER FINANCING CHALLENGE
The one thing everyone seems to agree on, though, is that ‘size counts’ in business financing, and the small to medium business owner has a lot more of a challenge accessing it.
One common method of financing for small businesses is debt financing, which involves borrowing money and repaying it with interest.
More often than not, it feels like an obstacle course, as the owner/manager finds it difficult to obtain long-term financing options that will help secure business growth.
THE CHALLENGES OF BANKS TO FINANCE SMALL BUSINESS
On occasion, it might help to imagine yourself in the shoes of the bank or the many commercial lenders that offer financing solutions, such as a bank or SBL loan, for working capital business needs to Canadian companies. Lenders focus on key items such as tangible equity, assets, and, in many instances, outside collateral.
CANADIAN BANK SOLUTIONS FOR THE SME
Canadian chartered banks are often the ‘point person’ when business financing discussions come up around the needs of small businesses.
While often criticized for providing the financing business needs, they do participate positively in several ways, including the best interest rate.
The Small Business Administration (SBA) in the U.S. plays a similar role by providing government-backed loans and other financing options for small businesses.
Banks typically provide:
Govt Guaranteed Business Loans - The Canada Small Business Financing Program
Term loans
Small overdrafts
Mortgages
They are successful because they are on every corner, have apparent rules and borrowing applications, and can be a source of constant contact with the owner/manager.
ALTERNATIVE FINANCE TO THE RESCUE?
While bank solutions are low-cost and accessible, commercial finance firms provide many of the other financing options that will get small businesses to the goal line.
Credit unions are another source of financing that offers favourable rates, loans backed by the SBL government loan program, and a range of financing options.
Commercial finance firms generally aren’t regulated, take more risk, and are profit-motivated. Additionally, they provide small business loan options that are unavailable from the banks.
Having a good business plan and cash flow projections is often essential - 7 Park Avenue Financial prepares business plans that meet and exceed bank and commercial lender requirements.
LIST OF ALTERNATIVE SMALL BUSINESS FINANCING OPTIONS IN CANADA
Those options:
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
Government grants - Available from federal, provincial, and municipal bodies, these grants can support new businesses. However, thorough research is essential to understand the eligibility and application process.
Short Term Working Capital Loans/ Merchant Cash Advance/Business Credit Cards - A Good minimum personal credit score is required - these facilities have higher interest rates but are very easily accessible
Securitization
KEY TAKEAWAYS
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Types of Business Loans: Understanding the different types of loans helps identify the best fit for your business needs.
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Unsecured Business Loans: Learn how to obtain financing without collateral, which is ideal for businesses lacking significant assets.
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Business Lines of Credit: Explore flexible financing options that allow businesses to draw funds as needed.
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SBL Loans: Discover government-backed loans that offer favorable terms for small businesses and help limit the owners own money into the venture
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Invoice Financing: Leverage outstanding invoices to improve cash flow and manage working capital efficiently.
CONCLUSION
Whether it's bank financing or non-bank commercial finance options, the SME business owner doesn't have to feel lost when it comes to financing options for a small business loan that suits their needs at acceptable interest rates.
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your operational and growth goals regarding loans in Canada that suit your funding and growth needs.
FAQ
What are the different types of business financing options?
Business financing options for SME small business owner include business term loans, lines of credit, invoice financing, equipment financing, and SBL loans. Each option serves different financial needs and situations and is available from a traditional financial institution or alternative lenders.
How can I choose the best business financing option for my company?
Evaluate your business's financial needs, growth plans, and creditworthiness. Compare interest rates, repayment terms in both alternative financing and conventional finance, and the flexibility of various financing options around monthly payments,etc. Good credit history is important from a personal finance perspective -i.e. a personal credit score in the 650+ range.
What are the benefits of unsecured business loans?
Unsecured business loans for small business owners do not require collateral, making them accessible for businesses without significant assets. They offer quick access to funds and flexible repayment terms upon loan approval.
How does invoice financing improve cash flow?
Invoice financing allows businesses to borrow against unpaid invoices, providing immediate cash flow. It helps manage working capital and smooth out cash flow fluctuations.
What are the advantages of SBL loans for small businesses?
SBL loans offer lower interest payments due to competitive rates, longer repayment terms, and higher borrowing limits than traditional loans. They are backed by the government, reducing lenders' risk and having competitive interest rates from participating lending institutions. The CSBFL program is a solid choice for a new business venture. Nonprofit organizations are also allowed to borrow which can help the business's success.
How do merchant cash advances work?
The Merchant cash advance installment loan agreement provides a lump sum of cash in exchange for a percentage of future sales. They are repaid through daily or weekly deductions from sales revenue.
What is equipment financing?
Equipment financing is a loan specifically for purchasing business equipment. The equipment serves as collateral for the loan, often resulting in favourable terms when SMEs are making significant investments that are long-term in nature.
How can crowdfunding benefit my business?
Crowdfunding allows businesses to raise capital from many people, typically through online platforms. It can provide access to funds without traditional loans or investors.
What is the role of venture capital in business financing?
Venture capital equity financing or funding from angel investors around raising money involves investment from firms or individuals in exchange for equity. It is typically used for high-growth businesses needing substantial funding, and owners must be prepared to give up significant ownership of their own business.
How does a business line of credit differ from a term loan?
A business line of credit provides flexible access to funds up to a certain limit, allowing businesses to draw and repay as needed. A term loan offers a lump sum with fixed repayments and is also a popular financial solution for small business lending.
What factors should I consider when comparing business financing options?
Consider interest rates, repayment terms, loan amounts, collateral requirements, and the lender's reputation. Align these factors with your business goals and financial situation and ensure you have up-to-date financial statements.
How can invoice financing help with seasonal cash flow issues?
Invoice financing provides immediate cash by advancing funds against unpaid invoices. This helps businesses manage seasonal cash flow gaps and ensures steady operations at competitive loan costs.
What are the key advantages of SBL loans compared to other financing options?
SBL loans offer lower interest rates, longer repayment terms, and higher borrowing limits. They also have flexible eligibility requirements, making them accessible to more small businesses. Borrowers should be prepared to provide proper business information including financial projections.
