YOUR COMPANY IS LOOKING FOR THE BEST FINANCING OPTIONS FOR A BUSINESS!
HOW TO FINANCE YOUR BUSINESS PROPERLY / FINANCING OPTIONS FOR BUSINESS
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
Financing businesses have evolved significantly in Canada. The past is clearly not representative of the future. Owners and financial managers who are up to date with what’s available and from whom access to capital can easily be forgiven for being simply... out of step- whether they are early stage or established. Let's dig in.
ARE BUSINESS OWNERS FAMILIAR WITH NEWER METHODS OF FUNDING A BUSINESS
Business is often susceptible to ' disruption, 'and financing Canadian companies are great examples of that. When we talk to clients about newer financing methods, there's often a feeling these methods are known only to the privileged few.
Today the owner/financial manager can easily access newer methods of financing. One top expert describes this current situation as ' open knowledge. '
DOES YOUR FIRM HAVE UNREALISTIC FINANCE EXPECTATIONS WHEN IT COMES TO FINANCE FOR BUSINESSES
Unfortunately, many entrepreneurs of small businesses dwell on Venture Capitalists and Canadian banks as key sources. The angel investor/venture capital route is a long road as we watch business owners explore those ' friends and family,'' angel investors ' solutions, spending a lot of valuable time exploring business capitaL. Only a minute, and we're talking really minute, amount of firms that qualify for VC capital. The prospects of accessing true bank financing are much more positive but still leaves thousands of companies 'unsatisfied' when it comes to all the business credit they need. The 2008 global recession totally hammered access to business credit, and the 2020 Pandemic did not help!
Business loans will always revolve around the type of financing you need to run and grow your business and the methods of finance required to complete your funding.
INVESTIGATE GOVERNMENT LOAN PROGRAMS - TALK TO 7 PARK AVENUE FINANCIAL ABOUT THE GOVERNMENT FEDERAL LOANS
So when a loan for a business start up funding is a challenge, many start-up businesses and new franchisees in the franchise industry take advantage of Government assistance when it comes to financing. Over 8,000 businesses annually take advantage of the CSBF / BIL loan program, which provides government-guaranteed loans to the SME sector. (Note: Businesses with under 10 Million $ in actual or projected revenue can qualify. It is not an interest free business loan, but interest payments may be waived in certain cases for a period of time.
A good credit score and personal credit history are required. These commercial loans are not a working capital/ cash flow but finance three key asset categories - equipment, real estate, and leasehold improvements. The interest rate is benchmarked against Canadian prime rates. Loans are available from participating financial institution participants, mainly banks and some business-oriented credit unions. It's not a short-term solution. It's an excellent long-term bank loan for businesses that would not otherwise qualify without the government guarantee provided to the bank by the Government of Canada. Government funding for business should never be overlooked if it makes sense to your business needs.
HOW TO APPLY FOR A SMALL BUSINESS LOAN
A good business plan demonstrating management, cash flow, management experience around your products and services, and growth potential is key to a solid application. 7 Park Avenue Financial business plans meet and exceed bank and commercial lender requirements. If you need help to apply for a small business loan, talk to our team. We're often asked how to finance a startup business and we're ready to discuss those options.
Another note on government assistance's financing options is that federal and provincial governments tend to be relaxing legislation around CROWDFUNDING. Technology has allowed thousands of people with capital to access your business deal if presented properly and on the right platform.
HERE ARE SOME CANADIAN BUSINESS ALTERNATIVE FINANCING SOLUTIONS
Seeking the right source of funding in Canada necessitates understanding options in debt and equity. We're huge proponents of asset monetization - many firms aren't aware that they can cash flow existing assets via alternative finance companies for small business.
Some examples of Asset and Revenue Monetization:
SaleLeasebacks
Bridge Loans
Tax Credit Financing
Royalty financing / Financing Software as a Service (‘SAS’)
Purchase Order/Contract Financing
Asset-Based (‘ABL ' ) lines of credit (These operating loans combine accounts receivable, inventory, and equipment all into one borrowing facility)
THE IMPORTANT OF HAVING PROPER AND UPDATED FINANCIAL STATEMENTS
Whether it's traditional or alternative financing, there is no substitution for demonstrating you have good management and the ability to produce regular and proper financials.
BUYING A BUSINESS - TALK TO THE 7 PARK AVENUE FINANCIAL TEAM ABOUT ACQUISITION FINANCING NEEDS
Acquisition financing for mergers and acquisitions has never been more plentiful - with supposedly thousands of original owners seeking succession plan strategies and buyers for their long-established businesses. Here valuation and due diligence are key. Whether it's small business loans or a complex acquisition, we've got the expert advice you need.
CONCLUSION
While not all Small Business Financing in Canada has been timeless, what remains constant knows what finance solutions meet your debt, cash flow, and growth criteria? Seek out and speak to 7 Park Avenue Financial, a trusted, credible, and experienced Canadian business financing advisor who can show you the path to financing options for a small business via the who and how! Whether it is government small business assistance or growth financing, we've got the solutions you need.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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