YOUR COMPANY IS LOOKING FOR BUSINESS FINANCING – AT RATES AND COST OF FINANCING THAT MAKE SENSE!
Small Business Interest Rate Implications
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
Business funding and the costs and ' rates ' around financing a company are always top of mind for business owners and their financial managers in Canada. It is safe to say that stability around financing options and business loan solutions that are reliable play as much a key factor as the cost of that financing.
Short Term Versus Long Term Financing Needs
When it comes to financing a company it's a combination of current needs as well as the sometimes overlooked intermediate and long term needs of the firm as they fix on a ' monthly payment '. That becomes even more important if a firm has ambitious growth and expansion plans.
There are numerous ways to ensure your firm can access those shorter-term business loan needs to avoid the proverbial ' cash crunch '. And, as we noted cost always plays a key role.
Although it might not be immediately obvious to all business folks, suppliers are in fact a form of short term financing. There are benefits, risks, and costs associated with vendor/supplier finance.
Let's use the example of a supplier who offers your firm payment terms of 2/20 net 60. That of course means that you can pay them in 60 days, or takes a 2% discount if you pay in 20 days. If you use a sample $ 10,000.00 invoice the arithmetic around that transaction will tell you the opportunity cost of not taking that discount is almost 19%!
Opportunity cost is a solid way of looking at financing costs - It's very simply the cost associated with passing up an opportunity when making a financial decision.
The lowest costs of business loan financing in Canada is financing via our Canadian chartered banks. Interest rates for borrowers, consumers and businesses alike are the lowest they have ever been. So what is the challenge? Simply that bank facilities are often a challenge for a firm to get approved.
4 BANK FINANCE SOLUTIONS
Unsecured Cash Flow Loan
Business credit lines / Business Credit Cards
Installment loans
Term loans
BANK FINANCING IN CANADA
Our Canadian banks as an example of a financial institution, offer up a plethora of business loan financing options! For those companies that can't access some or all of the bank credit they need it is critical owners / financial managers understand that numerous alternative business finance solutions are available. Even firms that have had their loans called are eligible for alternative finance solutions and a loan term or solution that can save their business and put it back on the right financial footing. Special loan designation is not fun!
NON BANK LENDERS IN CANADA
As stated a number of non-bank commercial finance firms provide business funding solutions, albeit at a higher rate than the banks. With this group of lenders, more emphasis is placed on business assets and sales versus the bank requirements of profits, clean balance sheets, and personal guarantees and outside collateral.
Alternative finance companies simply have a different way of looking at business credit, and of course, they are not funded with customer deposits, as are our banks.
THE POPULARITY OF ACCOUNTS RECEIVABLE FINANCING IS ON THE RISE
Receivable financing in Canada is more commonplace every day. Many misconceptions exist around financing costs associated with ' factoring ‘. It's also important to remember that A/R finance allows you to avoid long-term debt and giving up equity - those are important considerations. If you understand the miscellaneous charges, the advance rate, and the discount rate on Receivable Finance in Canada you may well embrace the benefits.
FOUR BENEFITS OF ACCOUNTS RECEIVABLE FINANCING
Immediate cash flow
Bulge financing
Growth potential
Strengthened balance sheet
Our recommended form of receivable financing for clients of 7 Park Avenue Financial is Confidential Receivable Financing, allowing firms to bill and collect their own receivables as well as achieving all the benefits of non-bank a/r finance. This solution is also commonly bundled into a non-bank business line of credit which combines the borrowing power of your a/r, inventory, and even equipment you own.
Short term working capital loans are also very popular in recent years - Typical terms are 1-2 years maximum, and many firms can qualify for a loan amount based on 10-20 percent of your annual sales.
EQUIPMENT FINANCING
Leasing/equipment financing in Canada offers competitive rates for all asset classes commensurate with your asset class and overall credit quality. The industry has a solution for every asset, and rates from 4-24% cover the spectrum of asset financing in Canada. While you will probably pay more for leasing than a bank term loan the appeal is staggered cash outlays, obsolescence protection and fewer financial covenants /restrictions.
CONCLUSION
So our bottom line today? Simply that each category of financing required comes with a different measure of cost, risk, liquidity and in many cases, restrictions. Speak to a trusted, credible and experienced Canadian business financing advisor who has a track record of business finance success, who can assist you with the cost of finance for your business.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2020/Rights Reserved
