Funding for lenders in Canada is all about the right finance solution for your firm. You're a specialty finance firm with the normal challenges of running a business in a good economy, much less a pandemic economy! Your funding requirements for growth are unique and your best bet is working with a firm that has special insights into your business. That ever-evolving capital need is why you want to work with 7 Park Avenue Financial.
Why Grow Your Business With Increased Lender Financing Capability?
The majority of specialty lenders in Canada who require additional lender financing tend to operate locally or at most in all of Canada. Dun and Bradstreet advise that bank lending to business has decreased in many areas and that decrease plus capital market volatility provides opportunities for those augmenting their lending needs.
The combination of responsiveness and flexibility in structuring capital transactions that work is a solid formula for success. Growing and expanding your lending power is JOB #1 at 7 Park Avenue Financial. Lending solutions to specialty finance firms covers many niche industries - You might be an asset based lender, a receivable financing/factoring firm or in smaller niches such as SR&ED loan financing.
Lender financing needs have grown dramatically with the rise of the internet - no secret there. Clients of 7 Park Avenue Financial typically have provincial or national operations but are always looking for areas to expand in. Specialty finance firms typically are non-deposit taking and not heavily regulated, allowing more freedom for growth.
Business has dramatically moved to nontraditional specialty lenders who operate outside of the mainstream of traditional bank. The concept of a faster approval turnaround, although coming with higher rates, has enabled many businesses to operate and grow outside traditional bank financing. That drives the demand for your lender financing needs.
Small businesses are increasingly turning to non-traditional lenders as mainstream financing is more difficult to secure. Payments giant PayPal has begun offering online merchants financing options that don't require credit checks and carry no periodic interest or miscellaneous fees. Applications for lease types of loans are usually handled online and offer quick turnarounds and higher interest rate
Lender finance is all about borrowing from the right financial firm or intermediary. The business model is fundamentally quite simple - borrow at a rate lower than what you earn on client loans, i.e. your yield!
Factors Affecting Lender Finance Interest Rates
The rates you will pay depends on a small number of key factors that boil down to overall credit risk, and regulatory risk, as well as the general level of competition in the lender finance market. Non-Prime lending comes with greater credit risk but offers opportunities for profit with solid infrastructure and well documented credit processes.
The opportunity, with increased financing capability to dominate your specialty niche or to take on an under-serviced area of business financing, coupled with taking advantage of the lower cost of capital now available to specialty finance firms is very appealing to CEO's and CFO's. Financing is available via term loans, revolving credit facilities, of other arrangements that might be syndicated.
What Drives The Need For Increased Financing?
Access to reasonable interest rates and overall business and consumer confidence drives the need for increased lending capital. Your firm's ability to originate business, write deals, and then service your portfolio will distinguish yourself from the pack. A smaller company will always be able to compete when they are a leader in their specialty niche, allowing them to compete with banks and very large firms who have unlimited access to capital. Dun & Bradstreet advises that in the specialty finance industry 75% of the total market is dominated by a small handful of very large players!
Also, the internet and ' online lending ' have allowed many firms to disrupt market positions held previously by larger financial corporations. That's what ' Fintech Lending ' is all about, alternative business financing that can compete effectively with traditional finance lenders. Here your business processes and the technological ability of your firm will differentiate you from the competition.
Safe to say that many other specialty finance niches are becoming more successful every day - including law firm funding, small business working capital loans, royalty finance, software financing, and numerous others.
Key Trends In The Specialty Finance Vertical
Nontradtional lenders in Canada are experiencing strong growth, hence the need for access to lender finance solutions. Business models that bypass Canadian chartered bank financing, coupled with intensive use of online marketing make for better ability to mine the potential client base. Firms that can minimize loan loss while taking advantage of the lower interest rate environment is a key to long term success in alternative financial services.
The actual needs of your firm might even be outside normal lending needs, such as the areas of acquisitions or startup. In some cases you might be a captive finance company looking to expand your parent company's growth. Unfortunately, not all companies in Canada have access to public or syndication type markets, especially if your firm is smaller. Your firm, therefore, prefers a credit solution that is more customized. Ensuring you have a strong business model and good fundamentals is key in access to lender finance solutions in good and less than good economic cycles.
The key to specialty lender is innovative and custom solutions for your client base - that is a recipe for allowing your firm to reach its financial objectives. Your goal is to access certainty in your future financing needs. It's about creating a balance between your credit facilities and your company goals around long term goals, which might even include a merger or acquisition.
Well run specialty finance firms can achieve profitability when many industries struggle in a difficult economic environment. There should never be a 100% direct correlation to everything else that is happening in the economy, pandemics included credit crises included! In fact when we talk to specialty finance firms new opportunities and new geographic opportunities abound. Your challenge is of course to be able to fund and capitalize on those opportunities.
Typically specialty finance firms seeking lender finance have solid in house credit staff and technology, as well as the ability to demonstrate they can source transactions. Naturally, everyone is always on the hunt for opportunistic acquisitions of growth opportunities.
At 7 Park Avenue Financial we're committed to originating the right financing based on our knowledge of the right lender finance solution. We're positioned to address your needs quickly and focus on the shortest closing time possible. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with you.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
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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.
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