YOUR COMPANY IS LOOKING FOR COMMERCIAL BUSINESS FINANCING!
ALTERNATIVE FINANCING AND BANK LOANS FOR SMALL 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
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Struggling to secure funding for your business goals? Business finance loans can be the answer.
7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer BUSINESS FINANCING LOANS and solutions that solve the issue of cash flow and working capital – Save time and focus on profits and business opportunities
INTRODUCTION
Commercial business financing options in Canada shouldn’t (but unfortunately, often do) require a quantum jump in effort and time, so when it comes to SME commercial finance options just consider us your 'reporter in the field trenches' with some suggestions to fix financing challenges with solutions that make sense when it comes to business loans. Let's dig in.
Business finance loans play a key role in providing the necessary external capital for various business needs, , ranging from expanding operations to navigating through challenging times. Whether it's a startup or an established company aiming to fund its next phase of expansion Canadian business financial solutions are available in all shapes and sizes!
CANADIAN SMALL BUSINESS OWNERS WANT FINANCING SOLUTIONS
Most private, independent business owners in Canada recognize the need for financing choices. We would add though that sometimes companies quite large and famous have their own challenges - they often might wish they were able to be as nimble as does the smaller firm grappling with cash flow, working challenges, and debt structure while trying to secure a business loan from a bank.
IS THE GOVERNMENT SMALL BUSINESS FINANCING PROGRAM RIGHT FOR YOUR COMPANY
In the SME financing sector in Canada, including start-ups, by the way, one partner in finance that many business owners/financial managers don't consider is the Canadian government via the Guaranteed Small Business Loan / Canada Small Business Financing program.
Although it caps out at 1,000,000.00 $ that's still a healthy amount to finance start-ups, equipment needs, intangible assets, leasehold improvements for leased property, and even commercial real property.
When it comes to real estate the program can fund owner-owned properties also. The federal government mandates a small registration fee which can be, by the way, bundled into the loan. Your business credit union may offer the loan also. Loans are structured as term loans with lump sum payments under the amortization period - typically 3-5 years.
For any small business funding needs should prepare a business plan as part of your business loan requirements for your application - 7 Park Avenue Financial business plans meet and exceed the requirements of bank and commercial lenders in Canada
Farming businesses in Canada have a similar program to stimulate agriculture economic development Canada.
FINANCING A FRANCHISE?
Franchise finance can more often than not be successfully achieved through the same program, a fact certainly not known or recognized by all.
THE 5 REQUIREMENTS FOR A BANK LOANS IN CANADA
For any established business the criteria to get true traditional low-cost bank financing couldn’t be more straightforward.-
Clean balance sheet
Reasonable debt to equity
Profits
Positive cash flow coverage
Shareholder guarantees and additional collateral coverage
The bottom line - easier said than done in many cases, right?
WHEN DOES THE GOVERNMENT-GUARANTEED LOAN PROGRAM MAKE SENSE?
When Canadian business financing is required the ' go-to ' is bank financing. When that can't be achieved via that financial institution either the government SBL/BIL program or alternative commercial financing from non-bank entities makes sense.
The business loan interest rate and prepayment privileges are a very attractive part of the program.
Financing for purchasing leasehold improvements/funding existing leasehold improvements for improving leased property is a key part of the program - Businesses must have gross annual revenues of less than 10 Million dollars. New or used equipment can also be financed under the program.
In 2022 working capital costs solutions were added to the program.
HERE ARE SOME OTHER CANADIAN BUSINESS FINANCING SOLUTIONS
There are numerous other types of financing other than guaranteed small business loans.
What then are those solutions? They include:
A/R Financing / Short term business growth funding / Confidential Receivable Financing
Inventory Loans
Equipment Financing
Access to Canadian bank credit/business lines of credit
Non-bank asset-based lines of credit / Asset Based Business Lines Of Credit
SR&ED Tax credit financing
Equipment / fixed asset financing Interest rates on equipment financing have never been more competitive
Cash flow loans
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance
Securitization
ASSET TURNOVER IS THE KEY TO THE SUCCESSFUL RUNNING OF YOUR BUSINESS
How you make money and how you turnover assets is key in financing success. It's critical to maintain a strong handle on those ' working assets' - those assets that turn into cash after you effectively manage inventory and A/R.
Many small businesses find themselves in a state of ' limbo' as they wait for clients to pay - especially if they have a long cycle in their business, and that isn’t even taking into account the risk of bad debt. The cost of lines of credit and working capital is dramatically reduced when your days sales outstanding and inventory turns are positive relative to your industry standards.
FINANCING RECEIVABLES AND INVENTORY
The way you manage, and therefore can finance your A/R and inventory will reflect more often than not in your competitive stature in your industry.
KEY TAKEAWAYS
Loan Types: Understanding the different types of business loans and their suitability for various needs is crucial.
Application Process: Knowing the application process and required documents streamlines loan approval.
Loan Eligibility: Identifying the factors that influence loan eligibility helps businesses prepare a strong application.
Interest Rates & Fees: Grasping interest rates and fees allows for informed financial decisions.
Using Loan Funds: Effectively utilizing loan funds ensures the loan fuels business growth.
CONCLUSION
Want a great tip - try and manage your small business to reflect an ongoing trend of lower A/R as a percentage of your sales. Easy to track and will almost always guarantee profit and cash flow success.
Whether you're a start-up looking for government-guaranteed loans or trying to apply for a loan or business credit or a larger firm struggling for the ' nimbleness ' of SME Commercial Finance options call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with business advice in your commercial business financing needs.
FAQ: FREQUENTLY ASKED QUESTIONS PEOPLE ALSO ASK MORE INFORMATION
How can business finance loans benefit my company?
Business finance loans provide essential capital for various needs, including expansion, equipment purchase, and cash flow management, helping businesses grow and thrive.
What types of businesses are eligible for business finance loans?
Business finance loans cater to a wide range of businesses, from startups to established enterprises, across various industries, offering tailored solutions to meet diverse needs.
What are the advantages of a business line of credit compared to traditional loans?
A business line of credit offers flexibility by allowing businesses to access funds as needed, with interest paid only on the amount borrowed, providing a convenient cash flow management solution.
How can invoice financing help my business improve cash flow?
Invoice financing enables businesses to receive immediate funds by leveraging unpaid invoices, providing liquidity to meet immediate expenses and invest in growth opportunities.
Are there government-backed loan programs available for businesses?
Yes, programs like Canada Small Business Financing Government loans offer government guarantees, lower interest rates, and favorable terms, making them accessible financing options for qualifying businesses.
How do I determine the right type of financing for my business?
Assess your business's needs, cash flow situation, and long-term goals to identify the most suitable financing option, whether it's a term loan, line of credit, or alternative financing.
What are the typical interest rates for business finance loans?
Interest rates for business finance loans vary based on factors like creditworthiness, loan term, and the type of financing. Rates typically range from single digits to higher percentages, depending on these variables.
What steps can I take to improve my business's eligibility for loans?
To enhance your business's eligibility for loans, focus on improving your credit score, maintaining accurate financial records, demonstrating steady revenue and profitability, and having a clear business plan outlining your objectives and repayment strategy.
