Business Owner's Guide to Flexible Financing Solutions
Stan Prokop
Canadian Business Financing | Cash Flow Financing | Asset Based Lending | Equipment Finance | Lender Financing | Purchase Order Financing | Acquisition Financing | SAAS Financing | Acquisition Financing
Overlooked Funding Sources Every Canadian Business Owner Should Explore
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YOUR COMPANY IS LOOKING FOR ?BUSINESS FINANCE!
BUSINESS LOANS THAT YOU NEED TO KNOW ABOUT FOR YOUR BUSINESS NEEDS & FINANCE OPTIONS
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?
CONTACT US
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - [email protected]
7 Park Avenue Financial South Sheridan Executive Centre 2910 South Sheridan Way Oakville, Ontario L6J 7J8
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BUSINESS FINANCE OPTIONS
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Creative business financing options are constantly sought by business owners/financial managers and entrepreneurs.
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Whether a business is a start-up or established, it's a constant struggle to determine how to strengthen it financially.
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How does a business get some actual ' traction' in financing while getting up to speed in your business's finance methods?? Let's dig in.
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Funding Gaps: The Hidden Growth Barrier
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The search for adequate business financing often becomes a stumbling block for Canadian entrepreneurs with promising ventures. Without proper capital, even the most innovative business ideas falter before reaching their potential, leaving owners frustrated and growth stunted.
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Let the? 7 Park Avenue Financial team show you how business financing options are now available beyond traditional banking channels; companies can secure the right funding structure tailored to their specific needs and growth trajectory.
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HOW DO YOU ACCESS THE RIGHT TYPE OF CANADIAN BUSINESS FINANCING SOURCES
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Access to the right financing sources and financing options for a small business,? either alternative or traditional, helps you strengthen your business.
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It's unfortunately often too easy for the business owner/mgr to feel like the company has hit the wall ' which we've found unfortunately prompts some ' undesirable behaviour' which might include delaying payments to key vendors relationships, using CRA obligations for your working capital source (not a recommended alternative finance strategy!), and perhaps worst of all for true entrepreneurs - being unable to take on large contracts, new business, experienced employees, etc.
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Limited capital availability will often work for business owners to access non-traditional and more creative financing methods.
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SMALL BUSINESS FINANCE VERUS CORPORATE FINANCING FOR LARGER COMPANIES - SPOILER ALERT - THERE'S A DIFFERENCE!
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The big guys view the growth process as ' scaling' a business.
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How does the owner/entrepreneur ' scale ' their business in the SME COMMERCIAL FINANCE space??
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Many small business owners approach angel investors and venture capital firms after exhausting their equity capability ( as well as friends and family). They quickly find that talking to venture capitalists is a long journey, and only a few Canadian businesses qualify for this type of ' equity ' financing.
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We can safely assume that larger businesses' corporate financing, never easy, is still more accessible for larger, more established corporations.
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While many people tout the concept of self-funding your business, aka ' bootstrapping,' at a certain point, the entrepreneur and business owner exhausts personal funding for capital.?
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In certain cases, you might be able to create a ' win-win ' scenario with a potential supplier, vendor, or customer. A key requirement is your ability to demonstrate business relationship potential.
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3 KEY ISSUES IN BEING SUCCESSFUL IN FINANCING YOUR BUSINESS
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The answer revolves around:
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Understanding core finance strategies (working capital/term loans/asset monetization, etc.)
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Being able to address financing for immediate and long-term growth
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Knowing the key issues that will inhibit your ability to access cash flow financing and a bank loan-type solution is key.
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The key to executing a finance strategy is knowing your options. There are, in fact, just a few short categories here: monetizing your assets, taking on term debt, or accessing unsecured cash flow financing.
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BUSINESS FINANCE SOLUTIONS
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The actual solutions combine traditional and alternative financing strategies. In some cases, only one is needed; in most cases, several options are combined to address your business's multiple needs.
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TRADITIONAL FINANCING SOLUTIONS IN CANADA
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Revolving bank lines of Credit -?
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Unsecured Cash Flow Loans -
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Working capital term loans -
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Govt Guaranteed SBL Loans - this is possibly the best small business loan as an access to business credit on bank-like terms -
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The Canada Small Business Financing Program is one of the best ways for small businesses to finance their startup or purchase and finance a franchise. Government business loans from participating lending institutions for startups are term loans that fund three asset categories: equipment/leasehold improvements, related costs /intangible assets, and real estate. Entrepreneurs can't underestimate the importance of access to business capital and a repayment schedule that works, and most new firms don't qualify for funding from traditional lenders.? Working capital costs were added to the menu in 2022!
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Equipment Financing: All asset categories can be financed, including your technology needs in computer and software assets. Asset financing for startups is also available within the lease finance solution.
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ALTERNATIVE FINANCING SOLUTIONS IN CANADA? -?
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Sale-leaseback / Bridge Loans -
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A/R Financing / Factoring / Confidential Receivable Financing -
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Sales Royalty Financing -
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Business Credit Cards -
Merchant Cash Advance/short-term working capital loans—a good credit score of business principals is required for financing a business in these online solutions that are fast, easy, and accessible.
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Many alternative lending options are excellent growth financing options when traditional lending cannot provide the business capital you need. They offer creative financing ideas to help eliminate the risk of business failure.
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Many businesses, especially service businesses, will have lower capital requirements than others. The challenge is that there are limited assets to offer as potential collateral or security.
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A business plan can help secure business funding approval for many types of financing. 7 Park Avenue Financial business plans meet and exceed bank and commercial lender requirements.
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CONCLUSION
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Are you looking for creative business funding solutions and ideas? Which of those 12 traditional or alternative finance options works for you in the ways we have demonstrated to finance your business?
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Do you need help with business finances? Will one or a combination allow you to give the ' thumbs up ' to financial success?
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Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor that can assist you with balancing proper loan needs and solutions.
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FAQ
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How quickly can I secure different types of business financing for urgent needs?
Traditional bank loans typically take 3-6 weeks for approval, while alternative lenders often provide funding in 2-7 days. Invoice factoring can deliver capital within 24-48 hours, and merchant cash advances might be available within hours of application. Emergency business lines of credit with pre-approval can provide immediate access to funds.
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How do commercial capital options impact growth potential beyond providing capital?
Strategic financing solutions align with business cycles, reducing cash flow constraints during expansion phases and providing flexibility during market downturns. The right financing structure creates operational stability, allowing management to focus on growth initiatives rather than short-term cash concerns.
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What advantages do alternative business financing options offer compared to traditional bank loans?
Alternative financing options typically provide faster approval processes within days rather than weeks. These solutions frequently require less documentation and offer more flexible qualification criteria based on business performance rather than credit history. Many alternative options also scale with your business without requiring new applications.
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Which business financing capital resources best protect company equity while providing the necessary capital?
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What role do commercial credit options play in managing seasonal cash flow challenges?
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How can the right mix of commercial financing opportunities improve a company's resilience during economic uncertainty?
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What documentation do I need when applying for different business financing options?
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Most business financing applications require financial statements from the past 2-3 years, recent tax returns, bank account statements from the last 3-6 months, and a business plan. Alternative lenders may focus more on recent revenue records and cash flow projections. Equipment financing typically requires detailed quotes, while real estate financing needs property appraisals and environmental assessments.
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How do lenders determine the maximum amount available through various business credit facilities?
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When is the optimal time to apply for business financing before actually needing the funds?
Businesses should initiate financing applications 3-6 months before capital needs arise. This timeline allows for comparing multiple offers, addressing potential application issues, and negotiating favorable terms without pressure. Establishing lines of credit during strong financial periods provides access to capital when business conditions change, avoiding the higher costs associated with emergency financing.
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Where can Canadian business owners find specialized financing options for their specific industry?
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Canadian business owners can access industry-specific financing through provincial economic development agencies, industry associations offering member financing programs, and specialty lenders focusing on particular sectors. The Business Development Bank of Canada provides targeted industry financing packages, while Export Development Canada offers specialized export-related funding. Industry-focused angel investor networks and venture capital firms concentrate on sector-specific investments.
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What alternatives exist when traditional commercial lending solutions reject your application?
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What factors determine which business financing option best suits a specific company situation?
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How should businesses prepare their financial systems before seeking financing options?
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What common mistakes do business owners make when evaluating financing options?
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CITATIONS / MORE? INFORMATION
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