YOUR COMPANY IS LOOKING FOR SOURCES OF BUSINESS FINANCE !
Unlocking Your Business Potential: Exploring Business Financing and Lending Solutions
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
Discover the Power of Business Financing and Lending: Fueling Growth and Expansion for Your Company
Business financing! You've heard the rumour, namely that business lending is more available than ever. Whether it's small business funding or medium to larger corporations we hear capital is almost unlimited.
INTRODUCTION
For any company in Canadian the ability to access business financing lending solutions is critical, more so for the SME sector which always has a capital challenge. Proper financing and access to capital help businesses overcome growth challenges, allowing companies to seize opportunities that arise. Understanding what business loans are available and what the benefits of financing are is key to considering traditional and specialized alternative financing solutions for business needs.
UNSECURED BUSINESS LOANS - CANADIAN BANKS
Unsecured business loans in Canada do not require the borrower to pledge specific assets as collateral - Banks focus on an overall view of business and owner credit history, with a focus on profits and business cash flow projections.
But for those firms that for a variety of reasons can't qualify for all or even some of the financing they need from traditional sources such as Canadian chartered banks, there is hope - in the name of asset-based financing options.
WHAT STAGE OF BUSINESS IS YOUR COMPANY IN?
Let's backtrack a bit and understand that a company, from a lender's perspective, will always be identified relative to what stage of the company ' life cycle ' it is in.
That might come in several stages, going all the way back to pre-sales revenue r&d to initial start-up. It's a long journey to that ' high growth' stage. And it's not hard for the entrepreneur to dream about that final stage of business maturity where traditional financing sources are unlimited.
Have we forgotten anyone? Yes, we have, and it's prudent to mention that many companies, for a variety of reasons, are financially challenged and have poor financial performance and some serious cash flow or debt problems. Suffice it to say the good news here is that even these firms can be financed or re-financed, as numerous alternative-based finance solutions are available.
Many firms often find themselves in the position of taking on larger orders or contracts that typical small business funding solutions can't deliver on.
Purchase Order Financing - This is an increasingly popular method for a company to support purchase orders or contracts from new or larger clients. Without having to raise new equity or debt your order is financed by the lender based on who your client is and also ensuring you have a legitimate supplier. This financing can be achieved very quickly and makes sense when traditional finance doesn't work.
Accounts Receivable Factoring - This type of finance allows you to cash flow invoices immediately after you make a sale or deliver your services. The general creditworthiness of your clients allows you to get advances on your sales typically in the 80-90% of the invoice value. Naturally, this eliminates waiting to get paid, which these days seems to take anywhere from 30 to ..dare we say it.. 90 days!
Businesses should investigate Confidential Receivable Factoring Financing - allowing businesses to achieve all the cash flow benefits of factoring and a/r finance with the ability to bill and collect their own invoices.
Simply speaking A/R financing is a cash flow accelerator!
SECURED BUSINESS LOANS / ASSET-BASED LENDING
Asset-based financing solutions allow companies to pledge specific physical assets of the business such as accounts receivable, inventory, fixed assets and equipment, and commercial real estate owned by the business. Thousands of small businesses in Canada are gravitating to alternative finance solutions.
Non-Bank Business Credit Lines - Alternative financiers offer credit lines based on your inventory, receivables and equipment as a lump sump collateral. In our experience, these credit lines almost always exceed the amount you would receive under typical bank margining of these assets.
START-UP LOANS / SMALL BUSINESS LOANS, AND GOVERNMENT LOANS AND GRANTS
Starting and growing a business is always a challenge - most early-stage businesses lack business assets as well as the track record that a business lender is looking for. Business plans are essential and will include information on the company and business model, information on owners, and projected sales and profits - 7 Park Avenue Financial prepares business plans that meet and exceed lender requirements.
Small business loans of various types, both traditional and alternative can provide the cash a business needs to grow or improve production via new assets or technology. Financing is also available in the form of inventory financing, leasehold improvements finance, and acquisition of assets.
Government Loans and Grants - Canada Small Business Financing Program (CSBFP)
Government loans and grants are always available for funding a business - they are attractive to many business borrowers as loans are typically unsecured and have favourable repayment terms and competitive interest rates. Qualification criteria also easier to receive credit approval compared to traditional chartered bank financing.
The Canada Small business loan program is available for any business with under 10 Million dollars of actual or projected revenue. The government bears the majority of the risk with bank and credit union lenders that participate in the program.
The loan amount cap on the program is 1.1 Million dollars and recent changes in 2022 to the program greatly increased financing capability, with companies being able to borrow under a term loan structure, as well as lines of credit and working capital and funding of intangible assets. Traditional uses of the program have been the ability to fund leasehold improvements, new equipment purchase assets or technology, as well as acquiring real estate. A business loan calculator will allow simple calculations around monthly payments, amortization, etc. A minimal personal guarantee is also a favourite part of the program.
Talk to the 7 Park Avenue Financial team about the government SBL program and the application and process around this popular method of financing business from participating financial institutions,
CONCLUSION - BUSINESS FINANCING BUSINESS LENDING FUNDING
As a business owner, you need to understand the different finance options available to grow and succeed in the ultra-competitive markets of today. Selecting the right lending solution to support growth is key - whether you are looking to fund day-to-day operations, access government loans and grants, buy a competitor, etc. Knowledge of the business lending landscape is key!
If your business is growing, or even experiencing challenges investigate non-bank solutions that will allow your firm to be in a constant position to access capital based on specific needs.
Seak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with business advice and success in achieving business lending solutions.
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION
What are the best possible sources of business financing?
The best possible sources of business finance include:
Bank loans
Government Loans / Grants
Venture capital/ angel investors
Supplier Financing/ trade credit
Invoice Financing / Factoring
Personal savings / Friends and family
Business credit cards
Short-term working capital loans - lump sum payments via monthly payment based on sales/owner personal credit score - higher interest rate but quickly accessible financing
How do you finance business growth?
To fund growth and expansion businesses should investigate:
Reinvestment of earned profits - they do not bring debt to the balance sheet and do not dilute owner equity
Bank financing for cash loans, equipment purchases and working capital
Government-guaranteed loan programs
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.