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A Guide To Business Loan Interest Rates
Business loan interest rates bring out a variety of comments and emotions when we talk to our clients ! Naturally those emotions vary and their feelings seem to run deep!
There is a lot to consider when looking at a financing transaction and costs of funds in small business loans is certainly one of them. We're also quick to point out to our clients that in many cases ' access to capital ' is as important as ' cost of capital '.
No secret here that commercial lenders , Canadian banks included , look at the overall risk profile of a business. They have excellent ways of breaking that down ! In all fairness to underwriters though the risk scenarios are actually very objective and don't come with a lot of that emotion we've been talking about .
The key drivers of risk tend to be balance sheet quality, profitability, current debt structure, and that all important cash flow.
In many cases a company is simply growing more quickly than its current financing can handle - Financing must be rearranged to handle the new growth, and that new financing might well involve new forms of either traditional of commercial financing from options not previously considered by business owners.
What Are The Basic Forms Of Business Financing ?
Traditional and alternative solutions include:
Bank Term Loans & Business Credit Lines
Non bank asset based loans and business credit liens
A/R Financing
Inventory Financing
Purchase Order Finance
Tax Credit Financing ( SR&ED)
Equipment Leasing / Equipment Loans
Working Capital Loans ( Short Term / Long Term )
Commercial underwriters will look to both the past and future financial health of your business. In most cases, certainly in the small to medium sized business sector the personal credit history of owners will also be to some level scrutinized. Important to note that alternative lenders place much less focus than the banks on personal credit history of owners.
For example in equipment leasing a large emphasis is placed on the asset quality of equipment being financed.
We can make a broad statement that traditional financing offers the lowest interest rates to business clients.
The harsh reality though is that thousands of business either can't access enough bank capital, or in some cases can't qualify for any financing .
Therefore alternative financing, which comes at higher rates ( not always, but more often than not ) provides in many cases all the business capital your company needs.
The Best Way To Succeed with Business Loan Interest Rates
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success who can assist you in obtaining the most financing at rates commensurate with your needs and overall risk profile.
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 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 .
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
