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Lender To Lender Finance Solved!
HOW DOES LENDER FINANCE WORK?
Lender finance, if you are not a bank, is all about working with the best partner and/or advisor. The ability to achieve growth in your portfolio and maximizing lending power is all about industry expertise. At 7 Park Avenue Financial, we're laser focused on ensuring you get the type and amount of lender financing you need. That allows you to write more business and grow profit while maximizing return on equity. Lender finance banks and commercial competitors provide these solutions.
Why Alternative Specialty Lending?
Specialty lenders such as your firm are successful because you know how to source and underwrite and manage your portfolio as it compares to traditional bank lending.
The Canadian landscape in specialty lending is diverse and covers numerous industries, some of them quite new. No one type of specialty finance is going to cover every firm's needs. Your firm wants a custom solution tailored to your industry specific and company specific needs. You are looking for a finance company lender that has a knowledge of your industry that mirrors that of your own management/ownership team. That dual synergy translates into success via growth financing!
Credit Facilities With Lending Power To Grow!
Massive disruption is happening in specialty finance and financing for lending industry needs. New alternative business models for growth finance lending, as well as payments, are competing more than ever with traditional financing such as the major Canadian chartered banks who were in the past the main ' go to ' when it came to wholesale financing. Every firm is focusing on leveraging the technical aspects of their business and well as redesigning their customer platform/experience.
Technology is all over specialty lending solutions these days. Successful firms market, process and service portfolios; even ' traditional' lenders offer digital solutions more and more. Alternative data and Artificial Intelligence are the new buzz words. From a marketing opportunity, small businesses are increasingly turning to alternative lending sources for their capital and cash flow needs. That is why good lender finance loans are the secret sauces to competing with larger players . Even companies such as Paypal and Shopify offer business and consumer finance solutions. A quick turnaround coupled with higher rates seems to be the new mantra! Underwriting techniques, including portfolio analysis, play heavily into the use of technology in Specialty Finance.
In-person applications and client meetings are now handled via online solutions, including mobile devices! Short term loans/merchant advances are everywhere in the market place and these firms are enjoying explosive growth with the help of the right lender finance group.
Successful firms in specialty finance are known for getting client transactions completed and your ability to move on to and fund new transactions is key. Never has specialty finance moved so quickly with the emergence of internet/fintech strategies for marketing and customer engagement.
You are primarily looking for a lender financing solution to expand lending - no firm wants to turn away business based on internal funding strategies. You, therefore, need a partner to expand growth potential.
How Does 7 Park Avenue Financial Help? The Specialty Lending Finance Company Solution!
The Lender Growth Challenge : Industry Expertise Required!
As a specialty finance firm your need to access the appropriate credit market and lender loan facilities . If you're unable to issue commercial paper or bonds, etc your best alternative solution if via financial intermediaries .
We're focused on ensuring maximum liquidity in your client portfolio. That type of funding capability allows you to keep existing clients and fund new clients via your particular custom funding solutions. Your company might require a financing revolver or in some cases a term loan might be the final or complementary solution.
The specialty finance market typically includes the receivable factor industry, as well as asset based lending. However many companies are successful in very unique niches that might include auto financing, consumer receivables, refundable tax credit ( SR&ED) loans, etc. Lender financing is all about achieving working capital for future success. A fintech lender finance program is one of the most sought after funding solutions today. Lending for the factor and asset based lending also dominates specialty finance borrowing.
Credit Facilities With Lending Power To Grow!
No industry, lender finance included is immune to risk. The ability to constantly grow portfolio while maintaining acceptable credit quality is key. As a lender finance borrower, your firm must be able to discuss/demonstrate it's ability to put the right controls in place as your content grows. Underwriting guidelines must be clear and demonstrable, as well as your firms ability to provide client loan documentation and information around your MIS systems. These issues are paramount to be successful in attracting a secured lending funder.
Documentation in your files should include applications, copies of original promissory notes or loan docs, third party credit reports, and risk analysis based on your firms ' credit box '.
Your lender will want to ensure your systems are in place and there is the ability to test your processes. That will of course lead to an appropriate level of reporting on a monthly basis to ensure proper due diligence is taking place. In certain cases customer specific issues must be well documented, for example, payment extensions or allowances. Naturally, every firm has there own policy when it comes to credit guidelines within their industry business model.As a responsible lender, you must demonstrate ability to verify that a borrower has the potnetial to repay your debt.
Lender financing has never been more in demand than today! You need specialized assistance and someone who is familiar with specialty lender finance companies.At 7 Park Avenue Financial we are familiar with lender funding solutions and we want to help you manage any of the exceptions and risk related to your business.
What Documentation Will A Lender Finance Company Require For Initial Review
Typically you should be prepared to offer the following information as part of your submission to Lender Finance Companies :
Executive summary/business plan
Articles of Incorporation
Portfolio ageing summaries
Management Bio
Historical and Current Financials
Sales Projection
Current Secured Lender information
Overview of Credit Policy and a sample loan document
In some cases a PNW statement of management may be asked for
The ultimate success in additional finance will allow you to grow your portfolio, but working with the right specialty finance funder is equally as important. Attractively priced funding to a diverse client base is the essence of successful lender loan facilities in both consumer and business markets.
The Bottom Line?
Specialty finance funding will always fluctuate with the economy and interest rate factors. Successful firms such as yours will always be reviewing growth potential versus potential loan losses in bad times and better economic times. A good secured lending funder is the best partner in all economic cycles, pandemics included!
Talk to 7 Park Avenue Financial for information on innovative financial solutions to your specialty finance product/products. We know the lender finance industry and the dual-edged sword of opportunity and challenge in middle market specialty lending and lender finance options. Speak to an experienced business finance firm that will help you keep your company growing. Specialty finance is unique and we want to accommodate your specific needs.
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 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.
Stan Prokop
7 Park Avenue Financial/Copyright/2020
