You Are Looking For a Canadian Business Financing Expert!
Unlock the Secrets of Business Financing with Help from Business Funding Experts @ 7 Park Avenue Financial
We've Solved the Debate Over Small Business Finance Solutions in Canada
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing businesses today
Unaware / Dissatisfied with your financing options?
Call Now! - Direct Line - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
Email - sprokop@7parkavenuefinancial.com
INTRODUCTION
Business funding expert tactics are critically valuable for any business owner or financial mgr. We read daily that business financing is widely available these days - that's mostly true. Still, the type of funding you require and all the issues surrounding collateral, personal guarantees, etc., must be overcome properly.
The ability to achieve proper levels of business financing for your company is a crucial element in business growth and success. That challenge is always a large one for small and medium-sized companies in Canada. But how do the business owner and financial manager access financing options that suit the needs of the business?
Let's dig in on expert business funding options to help your company navigate the sometimes complex landscape in Canada.
WHAT TYPE OF BUSINESS FUNDING DO YOU NEED? UNDERSTANDING YOUR CASH NEEDS
The ability to understand the importance of cash flow management and debt financing is essential to the long-term growth of your business. The business owner's ability to monitor and analyze current financial position helps in cash flow management and the outflows of cash - allowing businesses to meet short-term obligations, as well as managing inventory purchases and meeting unexpected financial business needs.
Click here for the business finance track record of 7 Park Avenue Financial
When it comes to the balance sheet it is all about leverage - your ability to leverage key business assets such as accounts receivable and inventory allows for better asset turnover and cash management via business loans and asset financing that makes sense.
The type of business financing you need is key to collateral, guarantees, lender covenants, etc. Broadly speaking, the types of business financing can be broken down into ' traditional ' and ' alternative ', and within those two categories are working capital, cash flow and debt solutions.
Depending on whether your firm is experiencing the proverbial ' cash crunch ' or if it's simply looking for growth capital, it's that type of question that dictates what type of funding works best for business owners in Canada.
Established companies typically are long past the ' friends and family approach to business finance; they, therefore, must be prepared to travel the loan application road to business financial success.
DEBT VERSUS CASH FLOW FINANCING - WHICH ONE WORKS FOR YOUR COMPANY
Accessing capital allows the business owner to start, operate, or buy a business. The good news is that a combination of bank loans, government loans, and financing from commercial finance companies and asset-based lenders provides a variety of traditional financing and alternative lending options.
Your ability to either monetize assets or repay the debt will drive your decision toward the right cash flow solution. Both traditional and alternate lenders will want to know what your current secured debt structure looks like. They are, of course, looking for repayment ability and what type of collateral matches the finance solution your firm needs.
WHAT IS THE RIGHT FINANCING STRATEGY FOR YOUR BUSINESS?
Creating the right finance strategy for your business is all about the right loan at the right time - That's why understanding your current cash flow position and identifying the type of financing you need becomes job #1 - Your search will revolve around the flexibility of the financing offered, repayment terms and the type of business lender suited to your particular business model and industry.
The initial finance discussions are always best handled when you're well-armed with what business lenders look for - that might include a well-thought-out cash flow and a business plan that profiles the strengths and prospects of your company. In the old days, we called this ' source and used' of funds, and it's at the heart of the business cash flow question. 7 Park Avenue Financial business plans meet and exceed the requirements of banks and commercial lenders
WHAT ARE THE KEY PARTS OF A BUSINESS FINANCE APPLICATION
Other key parts of the overall business application might well include personal financial info on the business owner/owners, copies of recent bank statements, articles of incorporation, etc.. Let the 7 Park Avenue Financial team work with you to put a winning loan package in place for the type of financing you need to run and grow your business.
We spoke of how the type of financing you need will drive the optimal business finance solution. And by the way, in many cases, the optimal finance solution might include a cobbling together of various solutions.
THESE BUSINESS FINANCING SOLUTIONS ARE AVAILABLE TO YOUR BUSINESS
Short Term Working Capital Loans/merchant advances/business credit cards - good personal credit history of a business owner is important
Term loans - typically 3-5 years and cash flow based
Chartered bank lines of credit
Non-bank asset-based lines of credit - these facilities finance receivables, inventory and equipment and typically provide twice the amount of capital as a bank line of credit - less focus on
A/R Financing - aka ' factoring and invoice discounting
Inventory Financing
Tax Credit Finance
Equipment Finance and sale-leaseback strategies
Commercial mortgages
KEY TAKEAWAYS: BUSINESS FINANCING
Business owners can consider debt financing, equity financing, and cash flow alternative financing solutions
Government Loans and Grants are available for small and new businesses
Specialized financing is available based on the business model and industry
Traditional lenders focus on the capacity of the business to borrowers, general economic conditions, collateral and personal guarantees and business experience
Companies in search of financing should focus on the best type of financing to suit specific business needs while ensuring they understand the loan and credit approval process - A solid business plan and cash flow projections always help achieve the best interest rate available
Traditional funding options are not always accessible for SMEs in Canada - Business owners should investigate commercial funding for additional funding via alternative financing options available from alternative lenders for a combination of short-term financing as well as long-term funding for growth and expansion or business acquisition
CONCLUSION - DISCOVER THE BENEFITS OF WORKING WITH A BUSINESS FUNDING EXPERT FOR BUSINESS FINANCE NEEDS
If you want to succeed in business financing is critical to your success - Managing cash flow and accessing business capital can help you start, run, and even ultimately sell your business. Talk to the 7 Park Avenue Financial team about finding the right option for your long-term growth needs.
If you want to ensure you're on the right track to business capital, seek out and speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor with a track record of success. We'll show you how a business funding expert can deliver on cash flow and debt financing you need to start, run and grow a business - Let's get started on business funding expert business financing solutions.
FAQ FREQUENTLY ASKED QUESTIONS PEOPLE ALSO ASK MORE INFORMATION
What are some crucial factors to consider when seeking business financing?
In the search for business financing, business owners must consider key factors such as financing costs and interest rates as well as understanding the application process around the type of financing the business needs. Eligibility criteria vary when it comes to the type of financial institution offering the financing, whether that is a traditional bank loan or financing from alternative lending sources. The ability to exhibit proper cash flow management and planning will help the financial leverage of balance sheet assets and provide more financing for business operations growth and the ability to explore business opportunities
What is the Canada Small Business Financing Program and its registration fee?
The Canada Small business financing program is a small business loan program from the government for small businesses ( under 10 Million dollars in revenue ) which guarantees the loan to participating financial institutions which is typically a bank or credit unions, The registration fee for loan approval is 2% of the loan amount - Financing is available for term loans for assets, leaseholds, and real estate, and changes to the program in 2022 increased the total loan amount available to 1.1 Million dollars - The programs is excellent in terms of a small or new business being able to access financing for capital investment in the business. Both term loans and lines of credit are available to the borrower.
A good personal credit score is required by the borrower and a limited personal guarantee is required.
What is the significance of having a sustainable financing strategy for a business?
A sustainable financing strategy allows a business to access capital when the business needs funding and is a factor allowing a company to avoid repayment default via good financial planning to avoid financial risk to the business.
What is SME business finance, and why is it essential for any business?
SME business finance is a term which includes financing resources and small business loans and assistance available to small and medium-sized businesses in Canada. Companies can access capital through a variety of sources for purposes that include purchasing new assets, or financing the current assets of the business, primarily accounts receivables and inventory. The ability to fund both day-to-day operations while planning for long-term growth and achieving good cash flow management is essential in running a successful business.
What are the various ways to find funding for a business?
Business funding to raise capital and secure funds can be achieved through debt financing via commercial loans, cash flow financing, or equity financing. Businesses considered equity financing consider financing from venture capitalists, angel investors and private equity firms - Bank lending for a business loan in Canada focuses on the ability of the company to demonstrate cash flow and general overall creditworthiness
Business benefit from carefully prepared business plans with accurate financial projections. Companies seeking non-dilutive financing will consider traditional bank financing as well as alternative finance solutions from commercial finance companies and asset-based lenders.
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