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Lender financing is about the ability to grow and support your financing capabilities to maximize the profitability and growth potential of your finance company. The opportunity to obtain a customized lender finance solution to your industry enhances your reputation via credit facilities and business capital that deliver true lending potential to your client best, whether that be consumer or business, aka ' b2b' and b2c'. That's when ' experience ' counts!
No lender/finance company wants to decline borrowers that meet their credit criteria for lack of internal funding program capability or competitive interest rates.
At 7 Park Avenue Financial our clients that are lenders know that they require specialized insights into their business. The industry is vast and diverse with firms offered both secured and unsecured loans and other ' niche ' financing products. The 2008 financial crisis brought about significant changes in the way in which specialty financing solutions are funded. Whether it's a collapse in financial markets or the traditional banking system . a pandemic crisis, or technological breakthroughs in delivering consumer or corporate finance solutions the only constant is: Change! As challenging as specialty finance industry issues are seasoned lenders know that opportunities emerge at every turn in times of upheaval.
The Lender Finance Search - Understanding The Lender Financing Provider
Most industry specialists in finance feel that they have been somewhat abandoned by the major insurance companies and Chartered banks that traditionally filled the void in specialty lending. Whether that can be termed a failure on their part of only a hard reality of the capitalization and constraints of those two lending bodies is subject to vigorous discussion.
Finance firms have certainly seemed stifled when it comes to the potential to grow, and your firm might be anxious to capitalize on access to the internet by business borrowers. That type of access to clients can only help you to spur growth without having to recognize boundaries (like the old days !). As an example, well-respected statistics firms such as Dun and Bradstreet estimate that the specialty finance industry in North America has volumes in excess of 585 Billion dollars.
Growth capital is what it is all about as your core business requires capital alternatives to deliver financing services. Owners, managers and shareholders of your business know that new capital sources should come with expertise that will lead to further financial success and the ability to operate effectively on an ongoing basis. At the end of the day, it is all about the portfolio and your management's ability to deliver value to owners and the client base.
Credit risk, more specifically the management of that risk is at the heart of your firms borrowing capabilities. Your ability to borrow well is dependent on your ability to demonstrate assessment of credit risk as well as documentation, collection, and fee issues dependent on your success
You want a partner or advisor who had an understanding and insights into your business. At 7 Park Avenue Financial, we have 16+ years of business dealing directly with specialty lenders in every aspect of consumer and corporate borrowing. You're looking for someone who understands your ' credit box ' when others don't or don't want to!
It's no secret that every aspect of every specialty lenders business is somewhat unique. Whether that be consumer lending, asset based lending, equipment leasing, law firm lending, factoring /receivable finance, auto loans, MCA ( merchant cash advance ) working capital loans, sr & ed loans, as well as other / niche lending markets every finance business is different. Online lending models have exploded into the Canadian and North American marketplace.
Your team knows that specialty lenders succeed best when they fill the void left by the exit of other or traditional market players. You, therefore, want to capitalize on expansion and growth. Therefore financing with a partner or advisor with industry expertise and the ability to finance creatively is foremost in your mind. That's where the relationship begins at 7 Park Avenue Financial - with a focus on understanding your current portfolio and the credit criteria that drive that growth.
Specialty Lender Financing Makes Your Firm More Competitive
Demand for your financing comes from client confidence in your finance services and of course interest rates, your ' cost of capital '. Someone lending to finance companies will look at your ability to write new business, but, as importantly service and collect on those loans. If your firm is a smaller finance company those rates/cost of capital areas are more important than ever if you are competing with the ' gorillas' in your industry who have the scale and potentially multiple sources of business capital. In some cases your firm may also be challenged to align new funding with redesigned business processes.
Niche players such as your firm always can succeed of course by highly specializing in your chosen field of finance. The specialty finance industry is not unique in that similar to many industries experts tell us that the higher quartile of lenders have the majority of the business
Your firm's ability to demonstrate adherence to any level of regulation in your industry, as well as the ability to divulge credit practices is key to the start of a good relationship with a specialty lender or funding advisor.
These days it's all about ' fintech ' which can mean a lot of different things, but the essence of that is the technology that delivers your firm's funding and growth and reporting. It should be no secret that a well-performing portfolio and your firm's ability to demonstrate that performance is key to attracting new funding.
At 7 Park Avenue Financial our focus is on delivering on a financing solution that will maximize your portfolio growth potential, so our focus of discussion is around areas of the size of your portfolio and the ' credit box ' that goes into those client approval decisions.
In some cases your firm might have some level of industry self-regulated or government compliance which should be demonstrable. These days it's all about ' FINTECH ' and any technology issues your firm has invested in or intends to invest in.
Similarly to any corporate borrower your finance companies must demonstrate the ability to report appropriately on portfolio statistics such as ageing, bad debt reserves, etc.
Lender to lender funding is also about your firm's ability to capitalize on new markets when new niches or geographical opportunities emerge. New economic cycles have a way of identifying unique new opportunities. The growth of alternative financing products has uncovered millions of dollars of lending possibilities for successful firms with existing portfolios.
Benefits Of Flexible Specialty Lending To Your Industry :
Ability to maximize the borrowing power/leverage of your existing portfolio
Secure specialized facilities based on the nature of your business
If your firm can't issue debt or stock or access commercial paper markets you need the best interest combined with flexibility and good repayment terms as low as possible compared to your interest earned
Almost all firms, probably including yours have external pressures around regulation, credit risk, and competition.
Lenders control credit risk by assessing the borrower's creditworthiness before extending credit. If a borrower fails to meet the conditions of a loan, fees can be charged, or the loan will become a loss. Lenders can minimize loan losses by employing or outsourcing a collections team that contacts and attempts to collect from borrowers who fall behind on payments.
At 7 Park Avenue Financial we have delivered on the financing of credit services for unique finance programs delivered by industry leaders in a niche industry. Whether your firm is experiencing hyper-growth or if you have very special requirements the 7 Park Avenue Financial team wants to become a long term financing advisor/partner and contribute to your company's success in your industry.
Seek out and speak to a trusted, credible and experienced Candian business lending advisor who can ensure your lending needs are met.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Click Here For 7 PARK AVENUE FINANCIAL website !
7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.
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. He is an experienced
business financing consultant
.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 financing 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
7 Park Avenue Financial/Copyright/2020
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