Business Financing From 7 Park Avenue Financial
' Our Competitive Edge in Business Financing Is Experience '
YOU ARE LOOKING FOR BUSINESS LOAN FINANCING!
Traditional & Alternative Commercial Business Financing
Business Loan & Asset Based Lending Cash Flow Solutions
You've arrived at the right address! Welcome to 7 Park Avenue Financial
( Division of 6169899 Canada Inc. )
Business Financing Canada! Small Business Finance Canada!
Financing & Cash flow are the biggest issues facing business today
Unaware / Dissatisfied with your financing options?
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In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and business financing. I believe the commercial lending landscape has drastically changed in Canada.
I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and greater access to liquidity. Every day we strive to consistently deliver business financing that you feel meets the needs of small business. If you believe as we do those financing solutions and alternatives exist for your firm we want to talk to you and put a financing program in place that meets your objectives.
Our purpose is simple: we want to deliver the best business finance solutions for your company " Stan Prokop - Founder/President
Business Financing With 7 Park Avenue Financial
7 Park Avenue Financial works with both small business and medium-sized businesses throughout Canada. We focus on working with business owners and entrepreneurs throughout the various business stages, from a company searching for growth finance as well as day to day operating funds to reduce the pressures of cash flow generation and management. Our business loan and other funding solutions are tailored to your firm's specific needs with respect to loan amount and type of financing and encompass a wide variety of industries to ensure the right overall financing program is in place for your company.
Using techniques within the broad spectrum of asset-based lending we provide solutions to all industries in Canada in need of financing. We focus on tailoring a solution to a broad variety of needs, and in many cases, more than one type of financing may be utilized to achieve client goals in the small business sector.
Each firm we work with has different goals and challenges that may be diverse in nature from experiencing financial stress to the other end of the spectrum as it relates to acquisition financing , whether its to apply for a loan or to complete the financing on your behalf.
Our team of finance professionals help your company fund debt, cash flow, and asset monetization strategies via traditional financing as well as innovative alternative financing products that allow your firm to thrive, survive, and grow. We work with your small business as well as larger corporations when it comes to business financing and business loans that make sense for your needs.
Canadian banking facilities continue to be a challenge for small businesses, as well as medium-sized ( SME ) firms in Canada. While we pride ourselves in our relations with Canadian banks we've recognized that many clients require a specialized form of alternative finance in areas and credit profiles generally not within the historical field of interest of traditional financing in Canada as it relates to the small business finance challenge around loan amount requirements.
7 PARK AVENUE FINANCIAL HAS A SOLUTION FOR YOUR SMALL BUSINESS
HERE'S WHAT YOU WANT TO KNOW
We offer traditional and alternative financing in areas such as :
Receivable Financing/ Securitization
We originate accounts receivable financing via asset-based lenders, commercial finance firms, and Canadian chartered banks. These solutions typify our efforts to ensure our clients have the best financing program in place for cash flow funding. Advances on your receivables are made against your approved facility based on a percentage of your outstanding a/r. The size and type of your receivables facility will depend on the type of financing firm. Interest rates vary on receivable financing based on the risk parameters around your company and it's receivable quality. In asset-based lending using factoring as an example, the a/r cost of financing is dependent on the number of days outstanding, as a ' fee' is charged, as opposed to an interest rate.
Covenants around receivable finance vary based on whether financing is from a bank or ABL lender- in general, non-bank lenders have fewer covenants.
Clients at 7 Park Avenue Financial recognize that as investments in receivables grow as revenue grows receivable finance is critical to speeding up the cash flow cycle.
Typically we achieve approximately 90% advances on an a/r facility in non-bank solutions, while our clients seeking small business bank financing can expect an advance rate in the area of 70%.
For non-bank solutions cash flow financing via ' factoring ' is more expensive but has great value from a monetization of working capital; although a higher cost than conventional bank finance it allows a company to fund continued sales growth if the balance sheet and income statement cannot support bank financing. If your firm can support a small 1-2% decrease in the gross margin or pass that on to pricing to clients your firm will be fully financed and able to avoid a working capital crisis.
At 7 Park Avenue Financial, we are the first to recognize the terminology in non-bank financing can be confusing to small businesses with limited outside external finance expertise. Terms such as confidential receivable financing, notification, recourse, discount rates, holdbacks etc are not always explained properly in the industry for clients considering this financing program. We will take the time to ensure you understand how things work, what they cost, and what the benefits are.
If required we will assist you in obtaining credit insurance to protect higher risk or foreign receivables.
In most cases, but not all, our goal is to combine an inventory financing program with client receivable solutions. Funding rates for inventory are based on a variety of factors including liquidation value as well as an assessment of what stage your inventory is in ( raw materials, work in process, finished goods ). The cost of inventory financing will typically be similar to receivable financing facilities - on larger transactions audits are sometimes required.
Canadian companies who need to require assets to run and grow their business find that lease financing will allow them to acquire those assets to expand and grow revenues. The combination of the value of assets that you are purchasing as well as your overall business credit profile of almost any credit quality will allow you to qualify as a lessee of assets.
Leasing allows your supplier/vendor to be paid directly by the leasing company in exchange for fixed monthly payments for the term of the lease. Almost any asset in any industry can be financed, and many firms finance their technology needs through the lease finance process. At 7 Park Avenue Financial we will take the time to understand the equipment you are financing and ensure the lease term of the asset matches your intended useful life. Equally as important in lease financing is the need to understand what you as a lessee intend to do at the end of the lease term - as well as helping you address some of the tax and accounting issues that arise in the lease decision.
Business owners have the ability to choose either a ' capital lease ' ( a lease to own ) versus an ' operating lease ( a lease to use )
In many cases a sale-leaseback allows you to draw additional working capital into your business as you refinance equipment you own already. In essence, you are shifting around the capital in your company, and its a widely used strategy for both fixed assets as well as company-owned real estate. It is a form of off-balance-sheet financing that is significantly less costly than other forms of capital such as additional equity or mezzanine type solutions.
Supply Chain/PO finance
If your firm has specific goods that have been pre-sold to a client/clients purchase order financing facilities will pay your supplier directly. Our typical clients in the P O area are exporters, wholesalers, manufacturers, and distribution companies. Firms that have reliable sources of supply and legitimate purchase orders from good clients are perfect candidates for this type of financing. After typical due diligence around purchase order validity and the appropriate monitoring of your order, the transaction is finalized. P O Finance is a solid way for our clients to take on larger orders and contracts that might not have otherwise been able to be financed through traditional business loans.
Let us assist you in bridging finance solutions that allow you to fill a gap to a future event. Bridge loans are typically for a 1-year term, and potentially renewable at the agreed-upon option of your firm and the lender. In most cases bridge loans are secured by some or all assets of the company, depending on your firm's unique situation and needs. Although interest rates vary depending on your firm's circumstances rates are typically higher. As your firm's situation improves you have more negotiating power to return to normalized borrowing situations.
Canadian Chartered Bank Facilities
Which Bank Has The Best Business Loan Solutions
At 7 Park Avenue Financial we constantly source debt financing, term loans, and revolving lines of credit for clients via Canadian chartered banks. We work with clients to ensure they have the necessary cash flow and collateral required by our regulated banking system as it pertains to commercial lending. Clients who meet established guidelines will achieve the best interest rates and flexible terms.
What Is The Average Interest Rate For A Small Business Loan In Canada
Our clients at 7 Park Avenue Financial are looking for interest rate alternatives. For different types of financing that we originate rates that might be either fixed or variable. Our job is to ensure that we accurately demonstrate the most positive credit profile consistent with any lender requirements. Solutions such as our work in equipment financing allow our clients to enjoy predictable payment streams over the life of the asset financing agreement - whether that be a business loan or a financing lease. Current low rate environments favour borrowers! The vast majority of industry experts state that small businesses are huge users of lease finance.
Bank finance solutions are typically based on the Canadian prime rate - so growing and healthy businesses can command an excellent interest rate - especially if assets are secured and a guarantee of the owner is in place. Typically security arrangements on bank financing involve a 'GSA' - a general security agreement.
For larger bank transactions credit quality will always play a large role in determining the interest rate. Banks are solid providers of credit facilities for companies that are focused on product or market expansion. Many of our clients look to refinance existing facilities, perhaps with another bank depending on when and how the original line of credit facility or term debt was financed.
Our goal is to reduce the time and potential expense around loan documents and securitization of the facility or loan. In many cases, we work with other lenders who might be unsecured or unsecured. Leverage and debt to equity ratios play a large role in bank business loan interest rates and bank interest margins will always be higher on unsecured loans.
ABL Asset Based Lending
'ABL' is the acronym for Asset Based Lending. Asset-based lenders provide a number of significant ' alternative financing ' solutions in Canada. It's a combination of debt financing as well as the 'monetization' of the sales and assets in your business. Our clients at 7 Park Avenue Financial don't need to be confused by the different types of financing based on terms they might not have been familiar with in their search for Canadian business funding.
Some ' ABL ' solutions might come from banks, but typically they are from nonbank lending firms who differ from traditional bank finance solutions as it relates to small business credit availability.
Asset based lending is all about 'leverage' - leverage in a positive way based on the sales levels and asset collateral in your business. As a business owner, you should view this method of financing as your lender's ability to liquidate the assets and sales without concern for how your business is doing.
When we work with companies we focus on the type of industry you are in, what type of financing you require, as well as what stage your business is in, vis a vis it's life cycle.
Larger firms that are a bit more established like ABL because it is cheaper than equity, it can almost always be paid out early without exit penalties and the facilities in ABL tend to grow automatically as a company grows.
The irony that asset-based lending works for healthy growing companies, as well as firms with significant financial challenges, is not lost on the 7 Park Avenue Financial team. Many companies simply don't have the consistent financial performance that traditional financing demands, so the flexibility of asset-based financing has a lot of appeal for our clients. Most firms can access asset-based lending solutions with simple applications that include financials, aged receivables and payables, we well as info on owners and the company. It's as simple as that
Royalty finance solutions provide funding against the future sales of a company, so that percentage of future sales reduces the amount of the royalty advance. This financing works best when firms have a predictable revenue flow as well as having the profit margins that can sustain and pay for the financing.
Technology companies are a great example of royalty finance candidates, as well as 'SAAS' (software as a service ) firms that have recurring revenues. Benefits are similar to other alternative financing solutions and include flexibility around growth financing that does not dilute equity which is important to owners search for small business financing solutions.
Tax Credit Monetization
7 Park Avenue Financial is your tax credit financing expert. We've successfully financed Canadian tax credits under Canada's ' SR&ED' program for over 15 years. Clients who use the program to take advantage of the tax incentives involved in research and development are able to monetize their tax credits significantly in advance of receiving federal and provincial refunds under the program.
Billions of dollars are advanced under the program annually and financing your credits allows your firm to pursue research and accelerate the cash flow from the refund. Working with your SR&ED tax credit consultant allows us to typically cash flow claims with a couple of weeks. Given that many SR&ED claims provide up to an amount of 35% of your r&d expenditures the popularity of tax credit financing continues to grow.
Cash flow loans
Cash flow-based loans are available to clients who have solid cash flows. The loan amount is based on the calculation of cash flows and typically other security arrangements may be required. Your borrowing capacity will be a multiple of your current cash flow, with adjustments made to ensure a proper normalization of your cash flow generating ability. Interest rates vary on cash flow loans and are typically higher than secured lending depending on the overall financial leverage of your business. Your ability to cover debt costs and demonstrate revenue growth is key to a successful cash flow loan transaction. This method of funding typically has a longer-term attached to it, 5 years is a common payback. Financing in the unsecured cash flow area is often dependent on the general strength of the Canadian economy. This method of financing is commonly used by the 7 Park Avenue Financial team as a part of an acquisition or recapitalization.
When financing is unsecured in this area of corporate funding a solid balance sheet and a track record of cash flow generation is key.
Subordinated debt is also known as 'Mezzanine Financing'. These cash flow term loans are a form of debt financing, but typically it ranks behind other senior lending you have in place. 7 Park Avenue Financial clients view this as a source of working capital that is more permanent in nature. While it's usually used for working capital as we noted, funds could also be used for the purchase of assets or in fact could be a part of the financing puzzle that solves acquisition or management buyout and even a recapitalizing of your business.' Sub debt/mezz finance' is usually associated with companies that are doing well and generate very positive cash flows.
Government Business Loans Canada - The Canada Small Business Financing Loan
What Is The Canada Small Business Financing Program
The Canada Small Business Financing Program is one of the best and most popular small business finance solutions in Canada. At 7 Park Avenue Financial, we have consistently proven that we are experts in facilitating the benefits of the program for our clients via one of the best solutions for small business in the realm of Canadian Small Business Financing. One significant feature of this financing program is its ability to fund leasehold improvements which are a challenge for many firms, large and small. We should point out there is a small registration fee when your loan is approved, but this amount is also financeable!
Canadian chartered banks favour the Canada small business financing program because of the government loan guarantee attached to the program. This type of ' back up ' guarantee is key to understanding how the Government BIL program works. ' BIL ' is the acronym for Business Improvement Loan - which is the formal name of the program under the auspices of Industry Canada. Not every small business recognizes properly the role of the government in the program as a sponsor, not a facilitator.
The goal of the government loan program is to provide additional capital and small business financing to small business owners who otherwise might not be able to access small business financing with typical collateral and loan approval issues required in Canadian lending. The ability of your new or existing small business to access small business financing via a bank loan with competitive interest rates is the appeal of the Small Business Loan ( 'SBL'). Leasehold improvements financing is a key offering within the program, as this ' asset category' typically is difficult to finance even conventionally.
We are specialists and experienced in alternative commercial finance solutions in small business financing in the SME sector of the economy. With specific industry expertise, our focus is lending solutions and financing structured around forms of debt and cash flow financing that works for your business needs. We are people that believe strongly you will like working with us and our attitude towards your business is ' JOB 1 " AT 7 Park Avenue Financial.
WHO IS 7 PARK AVENUE FINANCIAL? WHY SHOULD YOUR WORK COMPANY WORK WITH US?
16 Years In Business, a track record of small Business Financing with in excess of $100,000.000.00 of financing completed .. A strong reputation and a public track record of business financing success including our service nominations from the Chamber Of Commerce.
We are proud and humbled by the media and press coverage and service nominations we have received over the years including numerous ' Service Provider' nominations based on our record of providing business loans and other financing solutions to our clients.
TRUSTING 7 PARK AVENUE FINANCIAL WITH YOUR FINANCING NEEDS
Over 400+ clients have already entrusted our firm with their business financing needs. We're proud of our testimonial and client references, our reputation on LINKEDIN.
Click here for our business financing track record
Canadian banks and other major financial institutions regularly refer clients to 7 Park Avenue Financial based on our reputation and success. 7 Park Avenue Financial has been referenced in the Toronto Star / Globe & Mail / Financial Post as a small business expert.
Our team has over 40 years of business financing experience covering all major industries in Canada
7 Park Avenue Financial is an asset-based lending expert. We have financed a wide variety of industries allowing firms to have greater access to liquidity. Financing a/r, inventory, equipment and real estate under one revolving facility provides maximum cash flow for your business.
WHY IS 7 PARK AVENUE FINANCIAL UNIQUE
We finance the little guy, and we finance the big guys too! Our total focus is success and personal attention to your firm's small business financing needs. We offer specialty financing in areas such as business startups, management buyouts, subordinated debt and mezzanine financing, rapid growth financing, purchase order financing and non-bank asset-based revolving credit lines.
THE SECRET OF SUCCESS IS TO KNOW SOMETHING NOBODY ELSE KNOWS - A. Onassis
That's how we feel about our financing abilities. We at 7 Park Avenue Financial feel we know what and how to do it, and that is the philosophy we adopt on every transaction for your company loans and credit facilities in small business financing. If you a looking for a loan for business needs we're focused on achieving success for your capital needs.
HOW DO YOU FINANCE A BUSINESS IN CANADA ?
Financing a small business in Canada is a challenge - at 7 Park Avenue Financial, we will help you overcome that challenge with a business lender solution that meets your funding and growth strategies at interest rates and flexibility commensurate with your business credit profile.
GOVERNMENT LOANS IN CANADA / CANADA SMALL BUSINESS FINANCING PROGRAM
WHAT IS THE CANADA SMALL BUSINESS FINANCING PROGRAM?
Government loans in Canada are accessible via our work for a new and small business financing under the Canada Small Business Financing program under the Small Business Financing Act, allowing you to access financing for leasehold improvements and equipment. Whether your search is for a business loan amount that cannot be accessed elsewhere, or the ability to monetize and cash flow sales and business assets the 7 Park Avenue Financial team has a solution for your needs.
The Canadian government small business loan program is one of the best business finance solutions for both new and existing businesses. Under the Canadian small business financing program, 3 asset classes can be financed. Those asset classes are :
This small business financing program provides companies with flexibility and interest rates that are unmatched under normal SME borrowing conditions. Leasehold improvements are for business premises that are under lease. Business grants from the government are not a part of the government small business loan offering. The program is excellent for business expansion and business growth facilities to accelerate your revenues. Interest rates are very competitive given the nature of the loan and many start ups utilize the ' CSBFP' loan to start a business, including franchise purchases. A question we often get at 7 Park Avenue Financial is: How much financing is available? The loan amount has been increased to 1,000,000.00 recently and both a business credit union or a Canadian chartered bank can facilitate the loan.
Business owners and financial managers don't necessarily have the management time and resources to explore different and unique financing options in both traditional financings and the relatively new world of alternative finance business credit. If you are searching for small business finance options or just have a question about how certain aspects of small business financing might work for your firm we want to hear from you.
If your company is focused on growing revenues and profits and you need access to funding we want to tailor our service to your needs. In today's world, traditional banks might solve all your financial challenges but business capital from traditional sources is challenging and time-consuming to obtain for small businesses in Canada.
The Canada Small Business Loan program is sponsored and administered by INDUSTRY CANADA - a branch of the government of Canada. The program provides financing assistance in the form of a term loan program to Canadian Small Businesses. Currently ' Small ' is defined under the program as companies with actual or projected revenues less than $ 10,000,000.00.
The financing is delivered primarily through Canadian chartered banks and authorized Credit Unions. The Business Development Bank OF Canada ( BDC ) is a Canadian government crown corporation that also offers numerous business finance solutions that augment Chartered bank financing.
These government-guaranteed loans are for start-up and small business financing for emerging companies in the Canadian economy. The government is a guarantor of the loan, which is actually made by the financial institutions.
Industry Canada sets out very clear guidelines that are Industry Canada sets out very clear guidelines to the program allowing lenders to minimize risk. As noted, the actual loans are provided by the banks and credit unions and have substantial guarantees from the federal government of Canada on the portion of the loan that is ' guaranteed'. The government of Canada cannot force any bank or other institution to make the loans.
At 7 Park Avenue Financial, we take a positive and proactive approach to the Canada Small Business Government Loan program to our loan submission on our client's behalf. We understand the criteria and requirements of the program and have a long multi-year track record of success in the program - ensuring that our client proposals and our submissions are eligible and creditworthy.
Our role in Canadian government loans is simply to make your firm eligible and successful. As a result, we focus on repayment ability and ensure our applications on your behalf reflect your management ability and experience.
What Is Maximum Dollar Amount Supported Through The Canada Small Business Financing Program?
With some clarifications, the maximum availability under the program is One Million dollars. Government loans are considered ' long term loans' and typical terms are usually 3- 5-year terms, with some additional flexibility for real estate, etc.
Many clients are under the mistaken impression that Government Small Business Loans in Canada can be working capital or cash flow loans. That is not the case and only equipment, leasehold improvements, and real estate can be financed under the program.
Interest rates are mandated by the program and are very competitive given the nature of the program. Our clients have the flexibility to focus on either variable rate loans or fixed-term interest rates.
There are no prepayment penalties under the program, unlike many other business finance loans.
THE 7 PARK AVENUE FINANCIAL ' PHILOSOPHY ' ON BUSINESS FINANCING NEEDS
' How do you finance a business in Canada ' - That's a common question from our clients. Solving that challenge and providing the answer to that question is the 7 Park Avenue Financial commitment.
Access to capital has dramatically changed in the Canadian business environment. Liquidity and business credit from traditional sources have in some ways tightened, while at the same time alternative financing solutions have made tremendous inroads to the business borrowing landscape.
At 7 Park Avenue Financial clients, we often meet speak of tremendous hurdles to access to capital in their search for small business financing. Debt and equity sources of finance are available from Canadian chartered banks as well as commercial lenders - but many of these are specialized forms of financing and require a certain level of knowledge around what solution might be best for any firm.
In the SME commercial finance area business capital is available for those firms able to position themselves properly. We take pride in prepared proper business plans and cash flow projections that allow our clients to move forward with a strengthened financial position.
When considering funding alternatives for our clients we focus on our clients' current financial position as well as ensuring we have a practical solution or solutions to your needs.
We will focus on your on a process that revolves around the source and use of funds and financing, as well as utilizing our expertise to evaluate the best option in your industry from both traditional bank type financing, as well as the brave new world of Alternative Finance.
At 7 Park Avenue Financial we are constantly aware that there is a substantial misunderstanding around terms such as alternative financing, ' cash flow ' or access to ' venture capital '.
WE FOCUS ON DEBT SOLUTIONS / CASH FLOW AND WORKING CAPITAL FINANCING, AND MONETIZATION OF ASSETS AND REVENUES
Many of our clients spend significant amounts of management/owner time on bank financing needs only to find that banks might not be prepared to fund their operating and growth needs. We understand the role of banks in Canada and ensure that bank financing capabilities can be available for the rights needs at the right time, but, as entrepreneurs have experienced, not all the time! In Canada small business financing needs are often unable to be fully facilitated via our chartered banks.
WHAT STAGE IS YOUR COMPANY IN?
As a viable firm, your company is financeable in its different stages, from the small business financing start-up and pre-revenue to mature companies with solid capital structure who are still requiring financing for growth, acquisition, etc.
We focus on ensuring we have clear use of financing needed and focusing in on potential weaknesses in the company that require a fix. Those needs will always lead us to financing solutions. Helping a firm identify the hard issues around financing challenges, sales, profits, and capital structure will always point us to a business finance solution.
It should be no secret that ' growth financing ' offers the broadest array of financing choices in Canada. By spending our time on key issues such as debt/equity, leverage, sales revenues etc there will always be an emerging solid solution for our clients.
IS THERE A SILVER BULLET IN CANADIAN BUSINESS FINANCE
At 7 Park Avenue, we're quite sure there is no ' silver bullet ' in the business capital and the sourcing of small business financing. But by following a financing process based on client, transaction, industry, and financing need we have consistently proven we close transactions for our customers. In certain cases, we might have a fallback position and is certainly not unusual to 'cobble together' a solution that comes from different sources.
THE STARTING POINT
At 7 Park Avenue Financial, we will put a strong focus on understanding your financials from a viewpoint of revenues, as well as a strong focus on the balance sheet and statement of cash flow.
As a business owner, the financing need often comes from having a solid understanding of your days sales outstanding, payables, and inventory turns if you are not a service-based industry and have inventory investment.
We will always work with you to understand current lenders and your relationships with them. We're the first to say that we work with many companies who have deteriorated or even defaulted credit facilities that acquire immediate attention, and often refinancing.
FINANCING ACQUISITIONS WITH THE HELP OF 7 PARK AVENUE FINANCIAL
The Canadian business landscape is always offering up acquisition and management buyout opportunities for your business. Our clients recognize the benefits of acquiring a business versus organic growth. Those benefits are sometimes very obvious, and sometimes less so, and include the ability to grow sales significantly, expand into a new client or geographic market, and capitalize on the competition vis a vis market share, etc.
When you have found a 'target company' we want to talk to you! Our focus is then to outline a plan or strategy and start a basic financing process that will allow you to meet your goals. While it is rare that acquisitions be financed via all-cash the reality is that a financing component to most deals will be needed. We will identify a deal structure that works for both our client as well as our underwriters and of course the seller. We will ensure you have a buy-in from financing sources that meets your goal - and timelines!
Closing an acquisition has the potential to get complicated very quickly - that includes borrowing from a debt perspective, understanding present and future cash flow and working closely with current and potential lenders within the deal. 7 Park Avenue Financial will be with you all the way on that journey.
LET 7 PARK AVENUE FINANCIAL HELP YOU DEVELOP A FINANCE STRATEGY FOR YOUR BUSINESS
How much funding does your business need, and how will new financing be utilized. That is a common focus for discussions with new clients. At 7 Park Avenue Financial, we're well known for understanding the stages of a company and being able to quickly identify sources of financing that will quickly solve your business funding needs.
Whether your firm is a startup, growing, or well-established firm we have consistently proven that we can provide the following financial solutions :
7 PARK AVENUE FINANCIAL IS THE ASSET BASED LENDING SPECIALIST
Asset-based lending in Canada covers a wide category of business financing that is ' alternative ' in nature - generally speaking, a 'non-bank' alternative. At 7 Park Avenue Financial, we are experts in focusing on how these different forms of financing, which are typically ' sales ' or ' asset based ' and provide our clients with a significant amount of flexibility.
As a general rule if our clients have either 'sales', or ' collateral ', or both! we firmly believe we have a business finance solution.
Different financing in asset based lending ( 'ABL ' ) sometimes covers specifics within different industries, as well as being sometimes applicable to what 'stage' of life your business is in
Clients of 7 Park Avenue Financial like 'sales' and ' asset ' loans because they typically are not overdependent on equity. Many of our clients view the ABL solution as a bridge or road back to traditional bank financing in Canada. The most popular and common attribute of asset-based lending is the fact that it is an ' evergreen' type of financing and will always grow, almost automatically, with your company- unlike true ' term loans'
At 7 Park Avenue Financial, we are always amazed that our solutions in ABL fit perfectly with companies that are doing well, or in some form of financial challenge and even distress.
While Canadian banks offer unlimited capital and the best interest rats the reality is that many clients we meet cannot meet the pressure imposed by banks around the generation of positive cash flows and consistent profits.
NON-BANK ASSET BASED LINES OF CREDIT
A/R FINANCING / FACTORING/ CONFIDENTIAL RECEIVABLE FINANCING
SALE LEASEBACK FINANCING
WORKING CAPITAL LOANS
SBL GOVERNMENT LOANS
CASH FLOW LOANS
COMMERCIAL MORTGAGES FOR COMPANY OWNED PREMISES
BANK LINES OF CREDIT
We believe there is no one type of specific business finance solution that would fit all firms. Typically in our experience, there is a range of financings that potentially suit your company needs. As well financing needs change over time as businesses migrate to different stages of their existence. It's all about the right type of capital at the right time.
It's certainly not a perfect world when it comes to the challenge of business funding and we focus on ensuring your company will have the right funding in place at a time when you need it, given that business needs are always changing.
THE COST OF FINANCING
The cost of financing is always a concern for our clients who typically understandably want the lowest cost of capital and interest rates combined with the maximum funding they require. Not all companies though have strong and positive growth plans and financials that allow them to demand low rates. Struggling firms will need to focus on have to sometimes pay a premium for access to business credit.
We will work to ensure that your firm is able to utilize financing for the proper need. We have significant experience in the world of equipment financing and equipment leasing. That solution allows you to acquire assets for terms of typically 2-5 years while ensuring the useful life of assets will match the cash outflows of the equipment loan or lease. Matching long term debt to the useful asset life of key assets in your business is key to business success and a proper capital structure.
In many cases, your firm requires basic cash needs to fund day to day expenses such as payroll, suppliers, fixed cost commitments, etc. In those cases, clients rely on us for short term working capital arrangements - that might be short term working capital loans, business credit lines, or merchant advance funding.
Inventory loans/inventory finance solutions are a key aspect of firms that have significant investments in inventory on the balance sheet. Different needs arise out of the inventory component on your balance sheet. In some cases, you might require financing for increasing the amount of inventory you carry based on seasonal or some other specific needs. In other cases, it can be simply a matter of your obligation to fulfill large orders or new contracts, as well as building inventory to meet seasonal demands.
We are experts in Purchase Order Financing and that type of facility allows our clients to meet special import and export client demands.
RESEARCH AND DEVELOPMENT IN NEW PRODUCTS AND SERVICES
For our clients that have made a commitment to research and development we
we focus on ensuring they are taking advantage of the Government of Canada SR&ED Program which allows them to commit capital and even at the risk of uncertainty knowing they will be able to capture a large amount of that capital via the ' SRED ' PROGRAM. Sr&ed credits are financeable, and a SRED loan is a very attractive financing solution to accelerate the government refund and turn that refund into real cash back into your company.
ACQUIRING NEW BUSINESS PREMISES - COMMERCIAL MORTGAGES
Many of our clients see value in owning their premises rather than financing them.
We are focused on proper short term bridge loans or long term mortgages financing that will take the distraction away from financing commitments required for their building/ plant, etc
It is a standard lending practice in Canada that debt typically be secured with some sort of collateral, even if it is simply cash flow. Our focus is to ensure the right amount of collateral is identified and offered up to business lenders, ensuring other collateral remains for potential other financings.
We focus on allowing your firm to consider more or another financing that has separate collateral categories. A danger to your firm is to over collateralize debt thereby inhibiting future potential financing needs!
Senior lenders and others will always demand the most collateral they can achieve so our approach is a holistic one in which we attempt to ensure proper facilities are negotiated hopefully at the same time.
SOURCES OF CAPITAL FOR YOUR COMPANY
Our clients can be assured that we will identify the appropriate sources of financing as well as the costs of financing their business. It's no secret to any business person that interest rates and financing costs depend on the overall credit profile and the industry you are in, as well as of course what stage of growth your business is in.
At 7 Park Avenue, we work with start-up and early-stage firms as well as established corporations with well-known products and brands. Start-up financing is a serious challenge for the entrepreneur, but numerous types of financing can be customized to help the company find satisfactory early funding. Solutions such as business lines of credit from banks, asset-based lending solutions, equipment financing, and receivable finance solutions can help a firm grow to the next level of success.
A majority of our company's work is in the SME sector where companies are established, but still require financing for funding daily operations and taking the company to the next level of growth. Here bank facilities, non-bank asset-based lines of credit, leasing solutions, as well as short and long-term cash flow loans are available.
WORKING CAPITAL FINANCE SOLUTIONS
The area of working capital financing is a key focus at 7 Park Avenue Financial. Your firm's ability to manage working capital accounts ( Inventory, Receivables, Payables ) as well as financing your investments in a/r and inventory is key to long-term business success and survival.
In the area of receivable financing accounts that are significantly past due cannot be financed - asset turnover is key in our analysis of AR financing capabilities.
It is a commonly held belief in business finance that a company who is growing more than ten or fifteen percent per annum cannot continue to self fund their operations. The cash flow operating cycle is key to funding your long term revenue growth.
BUSINESS PLANS VIA 7 PARK AVENUE FINANCIAL
Numerous clients require a business plan for their lenders of financing plans. Our plans prepared for our clients are cost-effective, prepared in a timely manner, and meet and exceed lender/bank requirements. Business plans include management overviews/bios, product and service overviews, industry analysis, detailed financial projects.
ACCESS CANADIAN CHARTERED BANK SOLUTIONS VIA 7 PARK AVENUE FINANCIAL
Which bank has the best loans? That's a common question we get all the time. Canadian banks provide the fullest access to capital in Canada. Bank financing requires collateral and potential secondary sources of repayment. We deliver on bank finance solutions by proving our clients have cash flow to repay debt. Because of the regulated nature of bank lending in Canada, we focus on ensuring our clients demonstrate the value of assets, the ability to generate cash flow and are willing to provide guarantees if required.
Because business growth is a consumer of cash, not a generator of cash many of our clients look to 7 Park Avenue Financial for business financing and alternative finance sources - As well financial covenants and balance sheet ratio requirements might work now but not in the future. Many clients consider the personal and spousal guarantees a major issue in business bank borrowing, which cannot be overlooked. Canada Small Business Financing SBL loans are facilitated through Canadian banks.
Interest rates will vary on any type of busienss financing based on key factors such as collateral, type of financing, amount of financing, company credit profile, etc.
' Financing With The Intelligent Use Of Experience '
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' Canadian Business Financing With The Intelligent Use Of Experience '