YOUR COMPANY IS LOOKING FOR BUSINESS LENDING SOLUTIONS FOR
FINANCING A BUSINESS IN CANADA!
SMALL BUSINESS LOAN 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
Financing a business in Canada. Decisions, decisions... decisions! It seems you always have unanswered questions - what type of business lending is best for my firm, what types of finances are available? ... who can we talk to .. and on it goes.
HOW MUCH DEBT CAN YOUR COMPANY TAKE ON
In fact, the word ' debt ' keeps coming up when it comes to accessing financial solutions for your small business/company... how much seems to ring a bell. That is the small business financing conundrum.
YOUR FIXED COSTS DON'T FALL IF SALES GO DOWN!
One of the things that business owners and financial managers often don't think about is the concept of ' fixed costs ' in their small businesses. Those costs will always stay the same, no matter if your sales revenues and cash flows go up... or down. When times are great those costs stay the same and your company rises above the tide when it comes to profits, etc. However, if sales and cash flows decline your fixed costs unfortunately don’t fall in tandem.
LEVERAGE IS THE DOUBLE EDGED SWORD OF SMALL BUSINESS
It's all about leverage, and that becomes the double-edged sword in business. That leverage that we associate with fixed costs and debt is risky but at the same time provides greater returns if your company is successful and growing.
TWO TYPES OF LEVERAGE - OPERATING & FINANCIAL
We actually break leverage down into two different types - operating and financial. Financial is of course relating back to that debt and the amount we're willing to take on. Operating leverage on the other hand revolves around the number of fixed costs you undertake.
No matter which type of leverage you’re talking about it always comes back to that balancing act of how much is appropriate.
DEBTOR EQUITY FOR YOUR COMPANY
If you are not a public company it becomes a financial decision you make as to taking on debt ... unlike the public company you’re not in a position to go to the shareholders and ask for more equity. At the end of the day most Canadian business owners and financial managers borrow somewhere down the middle - by that we mean they don’t take on onerous debt, , yet they do take on some form and amount of debt.
INTEREST RATES AND THE COST OF FINANCING IN BUSINESS LOANS
One of the main decisions that business owners make around accessing business lending is the idea of making more return than the actual rates they are paying for debt. That becomes a challenge is your rates to finance are particularly high, which no doubt relates to your overall credit quality as perceived by lenders when financing a business in Canada. Your lenders, as we have pointed out in the past, DON'T share in the upside - they only want to cover off their risk and return. And if they have sufficient collateral or confidence in your cash flow all the better. That helps your interest rate also!
CONCLUSION
Canadian business owners benefit from leverage by accessing the right amount and type of financing when it comes to small business loans in Canada. Working capital, cash flow and debt solutions are available from alternative finance companies or traditional lenders.
EXAMPLES OF TRADITIONAL AND ALTERNATIVE FINANCING SOLUTIONS FOR FINANCING A BUSINESS IN CANADA
That includes :
Receivable Financing/ Securitization
Inventory Finance
Equipment Leasing
Supply Chain/PO finance
Bridge Loans
Canadian Chartered Bank Facilities
ABL Asset Based Lending
Royalty Financing
Tax Credit Monetization
Cash flow loans
Subordinated Debt
Government Business Loans Canada
Speak to a trusted, credible and experienced Canadian business financing advisor on business lending in Canada, as it pertains to your firm's needs for a business loan or financing solution. Be prepared to professionally present a business plan and cash flow projection is some of the best advice we give our clients.
Click here for the business finance track record of 7 Park Avenue Financial Stan Prokop
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