Business Financing Loan Programs That Make Sense
Business financing choices for medium-sized companies and small business credit term loans or a line of credit often seem like huge hurdles when it comes to funding accessibility for owners/financial more. It's all about ' working capital when it comes to funding, and business owners will often lament the lack of choices in funding and capital solutions. Our thoughts? In fact, you probably have more choices today than you ever did for your cash needs! Let's dig in.
Is there ever a time when a company doesn’t need funds. Whether it's acquiring new assets, considering expansion into new markets or products, or simply paying daily operating expenses there’s always a need for financing solutions.
There is always a business loan requirement! At 7 Park Avenue Financial we will often recommend and prepare a business plan for our clients as a key part of any financing strategy.
Your timeframe of reference is critical to assessing and acquiring your financing solutions. Typical timeframes are of course ' short term' for daily needs such as a line of credit, or ' long term ' as it relates to capital assets or investments in R&D. In the long term, you might be considering simply refinancing your current business is funded - that perpetual mix of owner equity and debt - and the right combination of those two.
In the middle, there are often' bridge loan' needs for a variety of circumstances. These solutions can fill the gap that comes from the dynamic changes in your business.
From a small business perspective, many firms are in start-up or early stages, The Govt of Canada has one of the best programs that thousands of firms utilize every year. This loan is now up to $1,000,000.00 in loan cap, provides a govt guarantee to your bank for 90% of your loan, and comes with great rates and flexibility that even some more traditional forms of financing can't deliver on, i.e. any penalty pre-payment, longer terms, etc.
As we've stated, there is a ' new normal ' in Canadian business financing. That new normal includes the rise of numerous alternative finance solutions. Those combined with traditional bank financing offer a large slate of funding solutions.
So How Do Business Loans Work In Canada?
Looking for a simple list of business financing solutions available to your firm? Here they are! The Canadian ' SME ' sector has access to traditional and alternative finance solutions for small business financing as well as larger firms.
What are the best financing options for a business?
A/R Financing/ Invoice Factoring/ Confidential Receivable Financing
Inventory Loans
Bank credit lines
Nonbank asset-based revolving credit lines
Govt Guaranteed Business Loans - This is The Small Business Administration Program Of Canada ( This Program Is excellent for start up funding for small business ) This program is the best example of ' government financing ' and is used by thousands of companies every year. The program is also excellent whereas grants for small businesses may be cumbersome and difficult to obtain from a timing perspective.
Tax Credit Financing (SR&ED / FILM)
P O / Contract Financing
Equipment Financing
Unsecured cash flow loans/ Mezzanine financing
Franchise Loans
Sale Leasebacks
Royalty Financing
Working Capital Loan / Merchant Cash Advance - These viable short term loans arose out of the use of credit cards by business owners.
Many financing solutions identified here can also be combined with ' BDC Funding '. All of our referenced business finance sources are not ' equity financing ' and don't dilute owner equity. The road to venture capital and private equity financing is a long and arduous one and most companies are not ready for that journey.
Whatever financing program or strategy you employ interest rates will vary depending on whether your loan or asset monetization will cost will vary.
Documentation and your firm's ability to provide the basics such as financial statements, owner background, etc. are keys to a good financing package. Let's not forget a realistic cash flow budget also.
This broad range of financing solutions allows your firm to grow, hire people, and become key players in their industry. Looking at a number of solutions will allow you to identify business loan requirements and which finance solutions might work together.
To implement any financial solution you need to understand where your ' financing gap' is and which solutions will work when it comes to either taking on debt or simply monetizing your assets to the maximum, while still employing prudent leverage.
Are you aware of all your financing choices? If not seek out and speak to a trusted, credible, and experienced Canadian business financing advisor who can assist you with your loan and line of credit needs.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Business financing for Canadian Firms, specializing in working capital, cash flow, asset-based financing, Equipment Leasing, franchise finance, and Cdn. Tax Credit Finance. Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations.
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment, and Cable & Wireless. Stan has had in-depth, hands-on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing, and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.
Stan Prokop
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