YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS!
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
Funding businesses in Canada often revolves around one question - what is the ' right ' business financing for your company and what loans and other solutions make the most sense and are most applicable. Once you've found that potential financing solution one other question looms - Can you secure that financing! Let's dig in.
THE GOAL IN BUSINESS?
Having the right type of financing in places allows owners/mgrs/entrepreneurs to focus on what always seems to be one of their main goals - growing sales revenues and profits
THE IMPORTANCE OF THE CASH CONVERSION CYCLE
Financing a business in Canada is all about the ability to fund your company and accelerate what is known as the ' cash conversion cycle ' that allows you to control the amount of funding you need. If you can limit the amount of capital your business requires or consumes that obviously allows you to not have to consider outside equity, and in most cases simply control your borrowing costs and amounts. That's a good thing.
What then are the key financial borrowing resources you can rely on to fund your business - What types of loans can a business use to finance their business? The main ones include:
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
Government Of Canada Small Business Loan Program - Guaranteed federal business loan
THE COST OF FINANCING
The average interest rate on a loan will depend on various factors including whether you are accessing traditional or alternative financing, the type of loan you are looking for ( term, cash flow, asset monetization), transaction size, and your firm's overall credit profile
Different terms are applicable to various types of financing - term loans are typically 3-5 years in length, the Government SBL loan can actually be extended to 7 years, business credit lines are typically reviewed annually, or as needed with respect to asset-based loans, and short term working capital loans and a/r financing typically are for several months. Equipment leases are typically written for 2-5 year terms.
Canada government loans for small business includes the government term loan program which is guaranteed by the Candian Govt as well as the SR&ED program which provides a refundable tax credit for a substantial portion of your r&d capital investment. Any source of financing that helps startup business funding should be reviewed by the entrepreneur.
At 7 Park Avenue Financial we recommend clients finance the SRED credit if they require cash flow in advance of receiving the government cheque. Government small business loans of any type should always be investigated to see if they are suited to your needs. Business startup loans are well suited to government offerings in the area of loans and grants. BDC finance is also a very viable solution for the entrepreneur - a BDC business loan is complementary to many other types of Canadian business financing.
The one category that always deserves and gets a lot of attention in your business is the whole working capital conundrum. The ability to manage, and finance your key most ' liquid ' resources (cash, inventory/receivables) makes or breaks a business.
While the typical ' go-to ' is the bank thousands of businesses find they don't qualify for the credit quality that banks demand. That's when alternative financing sources from other business lenders must be considered. If you can't fund your daily operating needs all the way through to collecting customer invoices a cash flow crisis of some sort looms. Even managing payables with a total focus on maintaining vendor relationships while delaying cash outflows to the extent you can become a major win or lose scenario for business owners/mgrs.
THE NEED TO ACCESS BUSINESS FINANCING
The reality is that every business and every industry requires some form of internal or external financing. Companies that are larger and fast-growing differ in needs from startups or companies just starting to get revenue traction. In some cases once in a lifetime opportunities to either secure a new contract or even acquire a competitor present themselves.
CONCLUSION
If you're focused on the ' right ' solution for financing your company and funding for business and if the goal is to secure that financing seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop 7 Park Avenue Financial/Copyright/2020
