YOUR COMPANY IS LOOKING FOR LENDER FINANCING!
ACCESSING A LENDER FINANCE GROUP FOR THE POTENTIAL TO GROW 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?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Email = sprokop@7parkavenuefinancial.com
Like most firms with a specific financial offering and lending business to your clients, you want to ensure you have a customized lender finance solution to the ongoing needs of specialty finance companies and their capital needs.
A company that wants to grow its lending business could use a financing solution that provides the right amount of credit at the right time. 7 Park Avenue Financial originates lending solutions to help your business grow. Times have changed, presenting both challenges and opportunities in the world of specialty finance.
The ability to grow a financial firm in either the consumer or commercial space while maintaining flexibility is Job 1! With opportunities come challenges, and funding is certainly key to one of those challenges.
DON'T MAKE THIS MISTAKE!
As a lender your firm does not want to grow by lowering credit criteria, ending up with more bad debt in the long term. More loans by lowering credit criteria result in ...long-term pain!
While lending by banks, such as our Canadian chartered banks or traditional insurance companies, might be the obvious choice for low-cost capital, numerous factors might prohibit your firm from accessing bank credit facilities.
The 7 Park Avenue Financial team will ensure a solid understanding of your current loan portfolio and future needs in lender finance loans and unlocking funds in your business - in a business that is all about liquidity. We will take the time to understand your product offering and business model around its assets/loan receivables.
Specialty Finance/loan provider opportunities have never changed so fast and so quickly when it comes to who is a lender in these times - Whether it's a global financial crisis or a Pandemic, or changing technologies, finance companies are constantly challenged for loan collateral on their portfolios - they want flexibility in capital and interest rates commensurate with their overall credit quality. Companies such as yours want to unlock portfolio value, maximize liquidity, and grow!
THE LENDER FINANCING PROCESS
Typical funding needs and lender finance options from lender finance banks and other institutions revolve around either a revolving operating facility or a term loan structure - what makes sense for your firm .. or is it time to change and re-evaluate your current funding model.
In some cases, it might be taking our current private investors or creating a partial liquidity event for owner/ owners. In all cases, it's the collateral value of the present and future portfolio that will drive your funding capability.
WORKING THROUGH THE LENDER FINANCE PROCESS ON YOUR LOAN PORTFOLIO
The ability to demonstrate collateral value in your portfolio will maximize funding eligibility from lender finance companies. Monetizing current facilities allows for additional funding /warehouse facilities to allow the portfolio to grow via your current and prospective marketing strategies and structured finance products.
ARE YOU FINTECH? TRADITIONAL LENDER?
Over a period of time, 2 major classes of finance companies have emerged in the Canadian landscape. We can broadly characterize them as ' Fintech lenders ' or Traditional lenders. Which one is your firm? No doubt both models employ and capitalize on numerous online marketing activities for corporate and small business loans.
In some cases, management might be considering an equity investment - in other cases, a more traditional term loan portfolio structure that has defined minimum drawdown of approved facilities and repayment structure to your business model and cash inflows.
The other major alternative to a term loan structure is revolving facilities. The revolving facility's appeal is the ' pay for what you use ' business model as you generate loan growth, knowing you can increase profitability with the confidence of a line of credit backing loan growth in your facility - versus fixed-term loan payments on a senior loan scenario. Whatever model you chose will allow your finance company to grow and maintain portfolio equity.
By structuring a lender-to-lender finance facility as a revolving line of credit, you only pay interest when the funds are deployed within your portfolio. Structuring your lender-to-lender financing as a revolver has you paying interest on the money that is being used, instead of paying interest on what is approved but not utilized.
EQUITY OR DEBT
The aforementioned equity option, by its nature, is a more costly form of business capital, thereby giving up your firm's stake in future profits as the portfolio grows or matures. Business financing is a constant balancing risk, though, and equity will always enhance traditional borrowing power. Sources of funding can best be summarized as combinations of owner equity/commercial finance facilities from non-banks or traditional bank funding.
In some cases, your firm may be looking to merge with or acquire another firm, or you may be starting a finance business and looking for both a working capital component as well as loan book funding.
UNDERSTANDING THE BASICS - YOUR LENDING FINANCE SEARCH
In the current low rate environment of the North American, even global economy, the offering of all-time fixed low-interest rates has tremendous appeal to commercial borrowers seeking lender finance company solutions. That ability to still pick either a revolver or loan provides maximum repayment flexibility.
WHAT TYPE OF FUNDING DOES YOUR COMPANY PROVIDE?
The explosion in business and consumer financing services for Canadian borrowers as well as the partial exit of the ' bank lender ' has created a broad competing playing field for financing services and credit risk management offerings and their unique needs :
Short Term Working Captial Loans
Payday lender finance
Merchant Advance / Small Business Loans
Accounts Receivable / Factoring Companies
Refundable Tax Credits ( SR&ED/Film/Mining)
Equipment Financing
Asset Based Lending
Non franchise Automotive
Online / Peer To Peer / prime and subprime credit quality
SAAS / Recurring Revenue
Strata/Condo Financing
Captive Retail Finance
Residential real estate warehouse lending
Other ' Esoteric ' Specialty Finance Providers!
Banks can be slow and inefficient in serving the needs of finance companies - sometimes because of federal laws and regulations and a misunderstanding of your business.
TALK TO 7 PARK AVENUE FINANCIAL ABOUT YOUR FINANCING NEEDS
You are looking for specialty finance expertise and insights into solid funding possibilities whether your firm is early-stage or mature. If lenders have the management team, business processes, and a track record of portfolio performance, we want to help you grow. Borrowing from non-bank regulated capital allows your firm to be more creative in its market offering.
CONCLUSION - FUNDING FINANCE COMPANIES
Specialty finance companies (companies that work with small businesses) have had to face challenges of the economy and an increase in regulation.
We want to be a proactive partner in your lender finance needs. Our long-term track record in business financing success and our understanding of different business models will help ensure you can access growth finance in your portfolio. In lender financing, it's all about leverage and access to capital to fund future growth and a structured payment facility meeting your needs without ownership dilution.
If you are a company that wants to grow its lending business and who could use a financing solution that provides the right amount of credit at the right time talk to the 7 Park Avenue Financial team.
We understand your needs and the inability of traditional lenders to help finance companies such as yours.
Finance lenders must:
Control their customer acquisition costs,
Manage bad debts
Obtain access to capital at a reasonable cost
A lender in the private market is typically a financial institution that funds businesses or consumers with the expectation that the funds will be repaid under a loan agreement.
Speak to 7 Park Avenue Financial, a trusted, credible and experienced business financing advisor who can assist you with our lending expertise around your lender loan needs with lending solutions tailored to your business needs. Our goal is to put a personal touch on your funding needs - simple as that.If you are looking for a financing partner 7 Park Avenue Financial is experienced in meeting your specific needs around fast and reliable closings.
FAQ: FREQUENTLY ASKED QUESTIONS
WHAT IS LENDER FINANCING
Lender financing is the funding of finance companies via specialized lending solutions and transactions that are tailored to a finance company's needs. These credit facilities, secured by loan portfolios, are typically in the form of revolving lines of credit or, alternatively, term loans.
Borrowers typically are either traditional lenders or the new wave of fintech and alternative lenders with funding needs 1 Million dollars and above! Lender financing services/ funding for lenders is a capital solution for both consumer and commercial markets.
HOW DOES LENDER FINANCE WORK?
When your company uses lender-to-lender financing, your existing loan portfolio acts as collateral to borrow more funds. The ability to borrow against your existing loan portfolio creates growth financing potential.
WHAT ARE THE MAIN BENEFITS OF LENDER FINANCING?
Lender-to-lender funding solutions are often a less expensive form of financing for both traditional and fintech lenders compared to raising capital via equity. When you use lender-to-lender financing, your existing loan portfolio acts as collateral to borrow more funds.
Click here for the business finance track record of 7 Park Avenue Financial.
