YOUR COMPANY IS LOOKING FOR START UP FINANCING!
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
Start up business loans in Canada solicits strong opinions from Canadian entrepreneurs/business people. A large part of that opinion revolves around the challenges and frustration facing startup financing needs. That's where a 2nd opinion might help... let's dig in.
START UPS NEED FINANCING - CAN THE BANKS PROVIDE FUNDING FOR THE STARTUP BUSINESS
The majority of startups in Canadian small business, in the mind of the entrepreneur, require ' loans. ‘ While not always the case (and we'll talk about that), the harsh reality is that Canadian chartered banks rarely provide self-standing start-up loans. Why is that the case? One of the reasons is simply historical failure rates in this type of venture; the other reason is even more basic: firms with a history have a better survival chance.
BANKS ARE REGULATED
When it comes to startup loans, we sometimes forget that our banks are regulated and are protecting our deposits at the same time they are lending. Larger, more established lending opportunities represent larger, more predictable bank profits.
SOME SOURCES OF STARTUP FUNDING TO CONSIDER
So, where do entrepreneurs typically go when they are raising capital? Top experts tell us those funds come from:
- Personal Equity
- Bank loans/line of credit (Supported by personal collateral!)
- The proverbial friends and family
- Credit cards (business, and unfortunately - personal)
REQUIREMENTS FOR BUSINESS STARTUPS
So what then are the ' realistic' options for entrepreneurs? Personal equity is always important, and any traditional or alternative finance solution will probably demand some level of personal investment. We'll also add that some level of reasonable personal credit history is an important part of the start-up equation. Personal credit bureau scores of 650 are desirable. Every adult should know their credit score.
THE PERSONAL GUARANTEE ISSUE
Suffice to say that partial of full personal guarantees are required for any initial business financing for a new business/ starting a business, and the funding business needs required to kick start sales of your products or services.
CONSIDER THE GOVERNMENT OF CANADA SMALL BUSINESS FINANCING PROGRAM - GOVERNMENT FUNDING FOR BUSINESS
The Canadian Government, Small Business loan, is perfectly suited for startups and the unique needs of start up funding - it provides financing for loans up to $350,000,00 for equipment and leasehold improvements and 1 Million for real estate. Close to 8000 start-up and relatively new businesses access this capital in Canada every year. Small businesses focus on the interest rate, which is important, and the government-guaranteed loan program has attractive and competitive interest rates.
Government loans are term loans and not a working capital or line of credit solution - that's a point often misunderstood by many entrepreneurs.
Let the 7 Park Avenue Financial team walk you through the application process of government funding and Canadian government loans for small business.
OTHER BUSINESS FINANCING SOURCES FOR STARTUPS
Leasing companies
Tax Credit Financiers (typically SR&ED claims are financed)
Invoice financing companies
Revenue / Royalty based finance options
Business credit card
Many new start up financing options require a business plan with solid cash flow projections around your business model . 7 Park Avenue Financial business plans meet and exceed the requirements of Canadian banks and other commercial traditional and alternative lenders
GOING THE SOPHISTICATED ROUTE FOR A STARTUP BUSINESS LOAN / INVESTMENT?
We wish we had a dollar for every hr. some of our clients spent chasing VC/PRIVATE EQUITY/CAPITAL POOL solutions instead of startup business loans, which are in truth only attainable for less than 1% of all startups. Having a business plan that focuses on cash flow and repayments, not ' hockey stick ' sales projections, also helps! 7 Park Avenue Financial business plans meet and exceed bank and commercial lender requirements.
CONCLUSION - BUSINESS LOANS FOR STARTUPS
We always get the question ' How much can I borrow for a start up business - We've shown that it depends on whether you are borrowing from either a traditional or an alternative lender and key issues around outside collateral, the quality of your personal guarantee and credit score and personal history, as well as your ability to clarify your needs, typically via a business plan or executive summary.
Are there Canadian start up loans? While many small businesses search for a ' 1 ' solution for their business credit start-up financing needs in Canada, the more proper approach is to cobble together a solution from multiple traditional or alternative sources. Seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with start-up business loans that make particular sense for your needs.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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