Guide To Business Funding Sources Of Capital In 2023 In Canada

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YOUR COMPANY IS LOOKING FOR  SOURCES OF FUNDING FOR

BUSINESSES

CANADA BUSINESS FUNDING SOLUTIONS

You've arrived at the right address! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the  biggest issues facing businesses today

ARE YOU UNAWARE OR   DISSATISFIED WITH YOUR CURRENT  BUSINESS  FINANCING OPTIONS?

CONTACT:

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

 

TIPS AND STRATEGIES TO SECURE BUSINESS FUNDING

 

Business funding sources in Canada often have business owners/financial managers looking for the right ' connection' they need when looking for capital and financing solutions.  When it comes to entrepreneurship finance, often the situation seems clear as mud... or molasses?

 

Let's dig in for those sources of funds for business and funding programs that will work for your business. Whether you are looking for startup  business funding or growth financing & business lending to continue your business success, we have the necessary solutions.

 

Financing solutions for your business might revolve around business loans from banks or commercial financing companies as well as asset-based lenders - It's essential to focus on eligibility criteria and the information required in the application process - in some cases government funding solutions might be an alternative to bank loans and other forms of equity capital.

 

 

Molasses? We're referring to the Great Molasses Flood of 1919 in Boston - where a large molasses tank burst, streets were flooded, and 21 folks lost their lives!  That isn't the same anxiety that business people experience around finance choices, but it often sure feels like it.

 

IDENTIFYING SOURCES OF FINANCING / SMALL BUSINESS FUNDING OPTIONS

 

How then does the owner/mgr, particularly in the  SME  (small to medium enterprise) space make those right ' connections'  relative to sources of funds for business,  and, as importantly, what can they expect? It's critical to know what any source of capital delivers on. That changes with the current financial profile of your company and the perceived risk that lending sources associate with your business... or industry as you search for sources of funds.

 

WHAT ARE THE MAIN SOURCES OF BUSINESS FUNDING FOR YOUR COMPANY?

 

Ultimately your company has only three main choices of finance solutions regarding how to fund a business  - internal cash flow,  taking on debt, or equity injection.

 

When owners/managers start the financing process and are looking for sources of funding a business and the right connection to the capital, they are often most concerned about the cost of that capital.  These days, depending on the risk profile your company generates, that rate can be 2.5% per month or 2.5% per annum. Most clients we meet want the latter!

 

 

WHAT ARE THE KEY FACTORS THAT AFFECT BUSINESS FUNDING APPROVAL?

 

Size of your company

 

Stage of Growth - i.e. start-up, early stage, growing, mature, etc

 

Assets on the balance sheet

 

Cash flow generation potential

 

Industry and your reputation

 

 

"Capital isn't scarce; vision is." - Sam Walton

 

 

GOVERNMENT FUNDING FOR SMALL BUSINESS ( THE BEST FUNDING FOR A SMALL BUSINESS STARTUP?)

 

CANADIAN GOVERNMENT FUNDING PROGRAMS

 

Looking for Startup & Entrepreneur Funding?  Needless to say, funding for business startup scenarios is also challenging

 

 

THE CANADA SMALL BUSINESS FINANCING PROGRAM

 

At 7 Park Avenue Financial, we often recommend a Government of Canada Small Business Loan, which provides a significant amount of capital and a guarantee on your loan by the federal government of Canada for economic development initiatives to support businesses and general economic stimulus. The loan can also be used to buy an existing business or franchise.

 

Start-up business funding is always a challenge in traditional and alternative finance. Thousands of firms utilize the Government Guaranteed Business Loan yearly to get the required capital.

 

All small business owners should look into government programs when available as personal investment is limited based on similar requirements by banks and other traditional lenders / financial institutions.

 

Talk to the 7 Park Avenue Financial team to learn more about how federal funding works for a business owner via  the CSBFL small business loan.

 

  

CANADIAN GOVERNMENT GRANT AND FUNDING PROGRAMS  

 

Some entrepreneurs look into Canadian government grants, which can be a long process with no guarantee of results around your business development - although numerous  Canadian government funding programs  & grants exist , including minority business grants.

 

While many entrepreneurs explore small business grant funding/government loans, this is a long and tedious process without guaranteeing that your grant loan will be approved. The majority of government grants for small businesses are reserved for established SMEs (i.e. 3+ years incorporated, 5+ payroll employees, $500,000+ annual revenue)

 

GRANT  PROS AND CONS

 

Entrepreneurs should ensure they understand the pros and cons of grants - while they provide much-needed money that is not repayable, achieving grant financing is challenging and can take a significant amount of time when applying for industry-specific grants

 

Many owners/financial managers we meet are often incorrectly focused on the type of business funding solutions & financing they need. They don't even understand the wide level of choices they have in cash flow financing and debt financing.

 

 

A  BUSINESS PLAN WILL HELP TO SECURE FUNDING 

 

Always ensure you have a business plan and cash flow projection that positions your company properly with a bank or commercial lender. No personal assets are required to be pledged under the SBL Loan program.

 

At 7 Park Avenue Financial business plans, we prepare for clients are all about financing, not marketing! We focus on financial statements and cash flow projections.

 

Always ensure you have a business plan and cash flow projection that positions your company properly with a bank or commercial lender. No personal assets are required to be pledged under the government SBL Loan program.

 

SOURCES OF BUSINESS FINANCING - TRADITIONAL AND ALTERNATIVE FINANCING OPTIONS

 

Funding A Business and funding a small business is challenging, but here at 7 Park Avenue Financial, you'd be amazed at the choices we can deliver on funding businesses.

 

Canadian  chartered banks

Receivable and Inventory Finance providers

Asset-based lenders - financing both assets and credit lines

Leasing companies  - equipment purchase financing for small and medium-sized businesses

Sale-leaseback specialists

Mezzanine finance

Royalty finance solutions

PO / Contract finance

Merchant cash flow advances

Commercial real estate financing

Funding SR&ED tax credits  for r&d funding opportunities around the refundable tax credit

 

A NOTE ON VENTURE CAPITAL FINANCING

 

Many firms spend too much time looking for VC financing, angel investors, etc., - only the smallest percentage of firms in Canada qualify for VC funding with venture capitalists or an angel investor and they typically seem to be in areas such as software, digital media, biotechnology, telecom, etc. We caution clients on pursuing this road to funding if they are not prepared and cannot demonstrate huge revenue growth and demonstrable traction in the early stages of revenue.

 

Naturally, some solutions and sources of finance are shorter-term focused and provide a temporary fix. In contrast, other solutions can bring working capital and cash flow finance in the millions and could be considered long-term financial strategies.

 

Safe to say it's essential to know whether you need a temporary ' fix ' or a long-term capital solution. That allows you to position your company and negotiate from a level of strength with a funding company or bank.

 

"The best time to plant a tree was 20 years ago. The second best time is now." - Chinese Proverb.

 

 

CONCLUSION - BUSINESS FUNDING OPTIONS

 

Most business owners are unaware of the many financing options available to their firms and the business financial planning required to access funding for Canadian businesses.

 

If you're looking to avoid that ' clear as molasses' feeling we described in sources of funding business, speak to 7 Park Avenue Financial for advisory services expertise -   a trusted, credible and experienced Canadian business financing advisor who can assist you with financing and capital needs for small businesses ( and large ) in Canada.

Regarding how to get funding for a business, we're on your side and here to help with traditional bank financing,  financial support from government business funding, and alternative finance solutions. For more information on other types of financing your business needs, talk to us here at 7 Park Avenue Financial.

 

 

FAQ: FREQUENTLY ASKED QUESTIONS / MORE INFORMATION /PEOPLE ALSO ASK 

 

What are three sources of capital?

 

The three main sources of financing capital in Canada are personal / owner equity, debt financing,  and specialty finance solutions in alternative finance. These funding sources influence the final decision to finance the business potential for a business venture. The challenges of finding a first investor for equity are significant when start-ups are concerned.

 

What are the types of financing?

 

All types of financing are related to either equity or debt financing - they allow businesses to fund ongoing business needs, finalize purchases and make investments in the business. Equity financing is the most expensive type of finance but brings no debt to the balance sheet.

 

What is commercial business funding?

Commercial business funding is financing from financial institutions such as chartered banks, business credit unions, and equity capital via angel investors or venture capital firms. Funding is in the form f loans or equity investments in the business.

 

 How can I qualify for commercial business funding? 

To qualify for commercial business financing, borrowers should be able to provide a business plan and demonstrate to lenders the business credit history and owners' personal credit history. The ability to establish sales revenue growth and profit potential is essential. A business lender will also review factors such as the type of industry the company is in.

 

  

What are some common types of commercial business funding?  

Common types of commercial business funding include traditional bank loans, business credit lines, invoice financing/factoring, equipment leasing and merchant cash advances/short-term working capital loans.

 

 What are government loans for business funding? 

Government loans for business funding via private and public sector financing are business loans provided by the government or, in some cases, guaranteed by the government that help SMEs succeed in economic development activities to access capital and commercial loans at competitive interest rates with longer amortizations.

 

  

How can I qualify for government loans for business funding?  

To qualify for government loans for business funding purposes, borrowers must meet the eligibility criteria of the loan program, with typical criteria for loan guarantees being sales revenues and profit potential. The borrower should be prepared to provide a detailed business plan for the company - The business development bank / 'bdc'  is a crown corporation focused on loans to entrepreneurs with programs to support underrepresented entrepreneurs such as aboriginal businesses/  and indigenous entrepreneurs / aboriginal entrepreneurs, as well as women-owned businesses - bdc offers small business financing money via working capital loans, real estate loans, and consulting services for business support.

 

 What are government grants for business funding? 

 

Government business grants for business funding are financing from government agencies that do not require repayment and are typically awarded to businesses that are developing products, services, or a business idea and technology that contribute to economic development. Many grant programs are  ' matching programs' that require capital investment from the business grant recipient. Grants typically require companies to meet eligibility criteria in their area of research and development, and often, detailed budgets and proposals are required. Some firms hire ' grant writers' familiar with the grant funding process.

 

IRAP - The industrial research assistance program is one of the most popular and accessible grants for government financing programs. Tax breaks and wage subsidies are very accessible in Canada for businesses willing to review the types of grants they might be eligible for. Some programs, such as Community Futures, are tied explicitly to regional economic growth.

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BUSINESS FUNDING IN CANADA & BUSINESS FINANCING SOURCES

Business financing solutions in Canada clearly demonstrate that the types of loan and cash flow financing you need are clearly not equal in value and accessibility to business owners and financial managers. There are numerous types of business financing. Here's why, so let's dig in!

Any company borrowing for funds for business money will usually encounter some difficulty in taking on debt, and when there is an economic downturn, pandemics included! Whether it's financing startups or mature companies, those challenges to source business capital can be even more overwhelming.

In challenging times the ability to source debt capital is very challenging and time-consuming and the ability to work with an external business financing advisor is often recommended unless of course you and your own team are exceptionally qualified and have the management time to source capital.



Capital Funding will usually mean a combination of financing for day to day operations as well as long term finance needs. That final capital structure will be a combination of debt and equity, with lenders expecting a return on their capital and owners hoping to achieve a proper return on investment - ' ROI '.


Funding a business and acquiring assets for your business, whether that be equipment, buildings, rolling stock, and investments in technology - ie computers, software, etc typically should be acquired through proper debt instruments such as loans, leases, mortgages, etc. Matching the useful economic life of these assets to the proper finance solution is the goal! The amount of debt you take on to acquire these assets will force a dilution effect on the owners equity in the business - again pointing out the need for the right amount ... and type... of debt.


Banks and commercial funding companies in Canada are the two foremost sources of business capital and typically provide the basic financing needs you require to run... and grow the business. Financing costs are of course an expense and lower the overall pre-tax profit of your business - no secret there.

Business owners and financial managers should always be testing the cost of their debt in order to allow the company to move forward with the right goals around its costs of borrowing and return to shareholders/owners.

Many industries are very 'capital intensive ' and require a much larger amount of capital as compared to service industries, so depending on your industry, as well as what ' stage of growth ' your company is in will be the key drivers around types of short term and long term finance.

The ability to diversify your finance solutions is often recommended by experts; that might be at the start-up stage or in times of high growth. When business challenges occur that diversification allows you to consider ALTERNATIVE SOURCES OF FINANCING. In recent years many new finance solutions in alternative financing compete aggressively with traditional financing via Canadian chartered banks. It is safe to say that any type of financing, either traditional or alternative has different benefits and disadvantages that must be weighted by owners.

What Are The Best Financing Options For A Business

Many different types of business finance solutions exist - the challenge revolves around your ability to ensure you're pursuing the right type of loan or cash flow financing solution.

At 7 Park Avenue Financial many firms we work with are in the ' startup funding ' stage; new business funding for owners who have committed some of their personal capital and are looking for additional financing to start/bootstrap the business. Entrepreneurs consider every source of capital, even tapping that ' friends and family ' and ' Angel ' investors. Some consider the venture capital route which is very time consuming and expensive and typically not appropriate for the majority of startups. Those ' VC ' type deals seem most common in the technology/software area/biotech area. Often a large amount of equity must be given up by founders to receive substantial financing.

Occasionally government grants and government VC capital might be available. Companies going the VC route will have considerable pressure to quickly get to a hyper-growth stage allowing investors to recoup their investment via some sort of exit strategy.

One other source of business capital for more traditional businesses, including franchises, is the Government of Canada Small Business Loan program, providing up to $ 1,000,000 of debt for three specific categories of assets: Equipment, Leaseholds, and Real Estate.

Many business owners/entrepreneurs aren't familiar with the Canadian govt small business loan program. We can call it the ' bread and butter ' in terms of the phrase ' government loans'. Clarification is required here because it's not the gov't that actually funds the loans, it's Canadian banks with the loan guarantee in place from the federal gov't.


For Canadian business owners, timing is pretty well ... everything! That’s why with careful preparation of your submission a loan can be approved in a matter of days



Getting back to our theme of ' timing is everything ' an even more accessible solution for owners/mgrs is the working capital term loan. Often provided on an ' unsecured ' basis these loans are based primarily on the cash flow within your business bank account. There is a lot less paperwork required and funding can occur within days.



Many businesses, particularly in the SME sector (small to medium enterprise) require purchase order funding solutions when they receive orders and contracts far in excess of their normal financing capabilities. P O Financing allows companies to access new markets and larger customers, enhancing revenue growth.

Most times even international orders of almost any magnitude can be financed if your firm has a qualified buyer and a legitimate supplier. Because of that most firms also require a business credit line, in some cases called an ' ABL ' line. These revolving facilities are provided by traditional financiers such as banks, and, somewhat unknown to most, commercial finance companies often referred to as 'asset-based lenders '.



What information is required in order to assess your firm’s qualifications under most types of financing? It's not as complex as it might seem. Traditional applications often include just financial statements, but can also be augmented by a business plan or cash flow forecast. Canadian banks are typically the first ' go to ' for many business owners, and a lot of time can be spent on finding a bank, and banker, that can meet your specific needs.

Borrowers find out very quickly that banks are looking for well-performing firms that have sales, assets, clean balance sheets, and profits. Those attributes, combined with a solid BUSINESS PLAN and cash flow projection will typically lead to financing success with a bank. Canada's crown corporation non-bricks and mortar bank for entrepreneurs will also provide solid financing solutions.

In certain cases your firm might be a solid candidate for cash flow loans, often called 'mezzanine finance; with the loan secured solely by those predictable cash flows you must be able to demonstrate. These loans are often viewed as the interim bridge between debt and equity.

Both working capital term loans, as well as short term cash flow loans, are very popular in current times. Any company showing good growth is a candidate for a cash flow loan either traditional in nature, or of the type offered by a multitude of short term working capital lenders. The latter type of loan is typically a one year loan and is based on a simple formula of 15-20% of your annual sales. With these loans rates are higher as lenders are looking for higher rates of return given the loans are not collateralized.



In all cases you should be prepared to demonstrate the type of collateral that requires financing (which might include just your sales), mgmt experience, and a solid understanding of how business loans or cash flow facilities will be repaid or revolve.

We have demonstrated there are numerous sources of funding for businesses. Careful time and consideration must be given to the type of financing your business needs - different costs and risks are associated with every type of financing.


So yes, it’s true, not all business financing solutions are equal when it comes to benefits or qualifications. Seek out speak to a trusted, credible and experienced Canadian business financing advisor to determine your exact needs and potential solutions.


7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

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.

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR

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.


Click here for the business finance track record of 7 Park Avenue Financial







Stan Prokop
7 Park Avenue Financial/Copyright/2020

Business Financing Capital Funding Solutions In Canada

Business Finance In Canada & Financing Alternatives

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Alternative Lending : Use As Directed

 

 

What Is The Best  Business Financing Option For Your Business?
Business financing alternatives in Canada - For many business owners and financial managers it , must seem like they spend a tremendous... aka ' too much' time searching for the credit and banking alternatives and the sources of cash they need to run and grow business. Raising business is even more challenging when the search is for financing for startups!

What then are some of those decision points when your business is looking for business funding of any type? Business sources such as Canada's premier business dailies such as the Globe & Mail and Financial Post constantly reveal the challenges of the SME commercial finance sector in financing a business. Let's dig in!

Easy to say, but fundamentally it's all about finding the right types of funding in the amount that you need that carries an acceptable level of risk and cost relative to means of financing utilized. As we said, easier talked about than done.

More often than not it's about taking on the wrong kind, or too much debt and therefore risking business failure. Working with the right type of banks or finance companies is also important; it's all about knowing the lay of the land!

Business Financing Alternatives

There are several ways in which business finances itself.  Business owners should know that interest rates vary based on what type of traditional or alternative lenders are utilized. Sources of cash for your company include :

Vendor / Supplier credit - That is financing a business without a loan!

Lease Finance / Equipment Financing

Bank Financing

Government of Canada Small Business Loan and Grants for startups - ( Working with government programs and crown corporations often can seem frustrating for business people. It is strongly recommended that you use a business finance expert who has a proven track record in business finance

Asset monetization

New equity

Online Lenders

Many business owners often underestimate the power of supplier finance. The terms and credit needs you're able to negotiate contribute significantly to business cash flow. Supplier credit stems from the outflows of cash. The bad news here is that everybody's in the same boat at the end of the day, as everyone, including your clients attempt to stretch payment terms.

Instead of paying with cash for equipment and technology assets businesses can choose to lease those assets on a lease or rental basis.  Terms of anywhere from 2-7 years, sometimes longer, are available to leases assets such as rolling stock, computers, heavy equipment, production machinery, etc. Bottom line... any asset can be financed.

Canadian commercial banks offer significant financing choices when your firm seeks business credit.  The most desirable bank facility is typically the ' revolver' allowing you to draw daily against the cash you need up to a set limit.  The danger of breaking a bank arrangement often leads many businesses into a death spiral.

While in many cases it's desirable to get new equity into your company the challenge here is that it dilutes ownership at the expense of current owners.
Many owners and finance managers who focus on getting new equity don't fully realize that numerous ' Asset Monetization ' strategies exist as an alternative to equity in many cases.

They include-

Receivable financing
Inventory Financing
Tax Credit Financing
Royalty financing
SR&ED Tax credit monetization
Non bank asset based lines of credit
Sale leaseback
Canada Small Business Loan and BDC Funds
Bridge loans

4 or 5 key issues typically should come up in your overall financing decision. They include:

1. Flexibility of the financial offering
2. Risk
3. Cash flow and profit concerns
4. Control exerted by the lender based on the finance offer  - that refers to issues such as loan covenants, financial ratios that must be maintained, and those ever-dreaded ' personal guarantees'.
5.Timing

At certain times in any company’s history it can't always get the financing it needs. Issues such as your overall leverage and your capital structure need to be addressed carefully. Growth, while always desired by almost all firms requires a proper assessment of your financing needs.


Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with business credit and banking decisions that make sense today and tomorrow.

 

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

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 .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
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

Business Financing Costs For Funding Solutions In Canada

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Looking for The Best Rates & Financing To Run and Grow Your Business ?

Business funding and the costs and ' rates ' around financing a company are always top of mind for business owners and their financial managers in Canada. It is safe to say that stability around financing options and solutions that are reliable play as much a key factor as the cost of that financing.

When it comes to financing a company it's a combination of current needs as well as the sometimes overlooked intermediate and long term needs of the firm. That becomes even more important if a firm has ambitious growth and expansion plans.

What Are The Finance Needs Of A Company ?

There are numerous ways to ensure your firm can access those shorter term needs to avoid the proverbial ' cash crunch '. And, as we noted cost always plays a key role.

Although it might not be immediately obvious to all business folks, suppliers are in fact a form of short term financing . There are benefits, risks, and costs associated with vendor/supplier finance.


Let's use the example of a supplier who offers your firm payment terms of 2/20 net 60. That of course means that you can pay them in 60 days, or takes a 2% discount if you pay in 20 days. If you use a sample $ 10,000.00 invoice the arithmetic around that transaction will tell you the opportunity cost of not taking that discount is almost 19%!

Opportunity cost is a solid way of looking at financing costs - It's very simply the cost associated with passing up an opportunity when making a financial decision.

The lowest costs of business financing in Canada is financing via our Canadian chartered banks . Interest rates for borrowers, consumers and businesses alike are the lowest they have every been . So what is the challenge ? Simply that bank facilities are often a challenge for a firm to get approved , so whether it's

Unsecured Cash flow loans


Business credit lines


Installment loans


Term loans

our Canadian banks offer up a plethora of financing options! For those companies that can't access some or all of the bank credit they need it is critical owners / financial mgr's understand that numerous alternative business finance solutions are available . Even firms that have had their loans called are eligible for alternative finance solutions that can save their business and put it back on the right financial footing. Special loan designation is not fun !

As stated a number of non bank commercial finance firms provide business funding solutions, albeit at a higher rate than the banks. With this group of lenders more emphasis is placed on business assets and sales versus the bank requirements of profits, clean balance sheets, and personal guarantees and outside collateral.
Alternative finance companies simply have a different way of looking at business credit, and of course they are not funded with customer deposits, as are our banks.


Receivable financing in Canada is more common place everyday. Many misconceptions exist around financing costs associated with ' factoring ‘. It's also important to remember that A/R finance allows you avoid long term debt and giving up equity - those are important considerations. If you understand the miscellaneous charges, the advance rate, and the discount rate on Receivable Finance in Canada you may well embrace the benefits, which are:


Immediate cash flow

Bulge financing

Growth potential

Strengthened balance sheet

Our recommended form of receivable financing for clients of 7 Park Avenue Financial is Confidential Receivable Financing, allowing firms to bill and collect their own receivables as well as achieving all the benefits of non bank a/r finance. This solution is also commonly bundled into a non bank business line of credit which combines the borrowing power of your a/r, inventory, and even equipment you own.

Short term working capital loans are also very popular in recent years - Typical terms are 1-2 years maximum, and many firms can qualify for a loan amount based on 10-20 per cent of your annual sales .


Leasing/equipment financing in Canada offers competitive rates for all asset classes commensurate with your asset class and overall credit quality. The industry has a solution for every asset, and rates from 4-24% cover the spectrum of asset financing in Canada. While you will probably pay more for leasing than a bank term loan the appeal is staggered cash outlays, obsolescence protection and fewer financial covenants /restrictions.


So our bottom line today? Simply that each category of financing required comes with a different measure of cost, risk, liquidity and in many cases, restrictions. Speak to a trusted, credible and experienced Canadian business financing advisor who has a track record of business finance success , who can assist you with the cost of finance for your business.


7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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 .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
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

Modern Rules of Working Capital Loan Solutions

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How To Ge A t Working Capital Loan - Alternative Business Funding

Does a working capital loan requirement loom on your company's horizon? Business funding is all about timing - the right financing solutions for your business needs which change over time . That additional cash flow from the loan covers up the gap when those proverbial ' cash flow crunches' arise.

Working capital loans are typically debt financing - removing the need for business owners and entrepreneurs to have equity dilution in their ownership.

Confusion sometimes arise out of the different types of working capital loans in the current Canadian business financing environment Traditional loans of these type are typically provided by the banks, and they are longer term in nature - typically 2- 5 years . They place a very strong emphasis on historical cash flow of your firm, as well as typically a need to see some solid cash flow forecasts.

In recent times, ( hence our ' modern rules ' ) a number of very viable alternatives have arisen in the Canadian market . These alternative financing solutions are more often than not easier to obtain and provide capital to fix the shorter term challenges that business face.

Although they are no pure ' working capital loans ' per se many companies will lean towards a/r financing and short term cash advances ( typically 12 mo duration ).

The short term cash loans are typically repaid via a fixed amount on a weekly or monthly basis. Surprisingly in some cases your bank is debited daily for a fixed amount in certain situations - examples might be retailers or restaurants - The industry has termed these ' Merchant Cash Advances '. Probably the most important requirement to achieve this type of loan is simply your bank statements which show the inflows and outflows of cash . It allows for a formula to be created, determining the loan amount . Here's a secret . It's typically 10-20 per cent of your annual sales .

Receivables financing solutions pertain predominantly to firms who sell on a B2B basis . They invoice their sales , and the cash flow for the business comes down to the timing of those payments by your firms clients. No surprise that over the years the days sales outstanding has in fact increased for many firms - placing the reliance on borrowing and working capital loans .

Larger firms can also explore non bank business lines of credit - called ' asset based lines of credit ' These facilities will margin your a/r and inventory and even place a borrowing value on equipment and real estate, if in fact you own the business premises.

If you are interested in a working capital loan that provides business funding for your short or long term needs seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success in alternative and traditional business finance.





7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

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 area 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 .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
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

Business Funding Tactics & Solutions To Help You Win

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Recovering From Lack Of Cash In Your Business Funding Needs

Business funding in Canada is all about options. We're focusing specifically on the financing needs of small and medium sized business owners and financial mgrs. Those large companies have the Bay Street gang to take care of them and they probably have all the help they need!

Companies searching for financing typically think in terms of standard bank loans - those loans typically are heavily collateralized and rarely, almost never, are ' unsecured '. Suffice to say that if owners and mgrs are focusing on ' rates ' the banks are of course their best bet - it's a trade off between 'access to capital ' and ' cost of capital' as one of our mentors always says.

Many companies apply ' online ' for fast business funding ; they are looking for quick cash solutions at a reasonable cost - including even options such as crowd funding/angel investors , etc

Tips to Find Funding Companies for Small Business

Is there a better way . There is. First of all , have your numbers ready and be prepared to clearly indicate the amount of cash you need and what you need it for . It should be no secret that info is what will drive the type of financing you need :

Debt

Cash Flow

Working Capital

Business owners typically should be able to demonstrate the use of funds and be able to back that up with a cash flow projections, equipment quote, business plan, etc. Every situation and every type of business financing is a bit different.

There are a number of viable solutions that should replenish or fill your needs for business capital. They include :

Working Capital Loans - Term Loans

Short term cash flow loans - typically one year or less

Equipment Financing

Receivable financing

Inventory finance

Purchase Order Financing

Tax Credit Loans - i.e. SR&ED Program refunds

Non bank business credit lines

A/R financing

Which of those solutions might apply to your company . Be able to demonstrate repayment, appropriate documentation, financials.

Business financing solutions come from both traditional lenders such as chartered banks, as well as non bank business financing commercial lenders .

24 Hours to Improving Business Funding ?

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor  that has a track record of success in Canadian business funding.




7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

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 area 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 .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
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