YOUR COMPANY IS LOOKING FOR BANK FINANCING!
COMMERCIAL LOAN 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
Oakville, Ontario
L6J 7J8
Financing businesses in Canada for most business owners and financial managers conjures up more often than not only one thought - a commercial bank business loan. While other alternatives exist, more so today than ever, our banks are usually top of mind regarding financing solutions. Let's dig in.
OPERATING CAPITAL NEEDS VERSU DEBT SOLUTIONS
Whether it’s operating capital to run and grow their business or term debt of some sort, it’s that external capital challenge via a business loan realization that becomes your focus. For businesses in the SME Commercial (small to medium enterprise) sector, funding might come from personal resources or the proverbial ' friends and family, 'but typically, the owner's focus is either a bank or commercial finance firm.
UNDERSTANDING BANK QUALIFICATIONS FOR BUSINESS FUNDING
Does the typical owner/manager understand what drives bank approvals for financing requests? When we talk to clients, it's usually listening to their negative experiences in accessing bank funding. We've always found that interesting as there is probably no more straightforward system that banks use to scorecard and approve financing. Let's take a look at some of those key ingredients in properly funding a business via a bank and achieving the interest rate that comes with that.
Let's take a look at that system a bit; if anything, it will provide the borrower with the ability to self-evaluate, saving time and energy on getting the right financing. Oh, and by the way, in our opinion, it's the banker, not the bank, so focus on a relationship, not a logo.
WHAT ARE FINANCE SOLUTIONS OFFERED BY BANKS?
While banks offer several solutions - typically revolving credit facilities, term loans, asset financing, etc. The focus for bank loan approval always comes down to looking at current and forecasted financials to determine the best structuring financing method.
That is not to say that past performance is not also looked at and your business's overall asset quality about the amount borrowed.
The actual net worth ' of a business is key in bank financing. In combination with the amount of debt you have, the amount you are requesting must make sense to the bank. One key rule of thumb for most industries in Canada is that your total debt should not be more than 2 times the business's equity. As we said, though, that formula varies within industries as it relates to business loan interest rates Canada and cost of financing/debt repayment ability.
WHAT ARE GOVERNMENT GUARANTEED LOANS - AKA THE ' SBL LOAN '
Many businesses in the SME sector, particularly start-ups and smaller firms, can take advantage of bank financing via the Government Small Business Loan. Recent changes to the program make this financing even more attractive, but it already offered good rates; borrowing limits recently increased also, with the previous limit being 350k. Loans are for either a fixed rate or variable, and the solution is a term loan, typically 2-5 years, therefore not a short-term financing.
Commercial real estate can also be acquired under the government program - and it's important to note that this is not a working capital, cash loan, or line of credit - but a term loan to business. This is, bar none, one of the best loans for new small businesses, franchise purchases, etc. Applying for a business loan requires a solid application package, including a business plan. 7 Park Avenue Financial business plans meet and exceed bank and commercial lender requirements to get a small business loan.
HERE ARE A LIST OF SOLUTIONS OFFERED BY 7 PARK AVENUE FINANCIAL FOR YOUR BUSINESS CAPITAL NEEDS
When bank financing is not available for the firm that can’t meet the ownership equity issues and cash flow coverage that a bank desires, non-bank solutions usually can, they include:
A/R Financing
Inventory Loans
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
CONCLUSION
In alternative financing, interest rates are higher. Still, these solutions provide the capital you need to run and grow your business - achieving financing that meets your business needs for commercial loans to business.
So If you're looking to hit the bull's eye ' in a commercial bank business loan that meets the needs of small businesses, seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can help ensure success.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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