WELCOME !

Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.



Monday, January 31, 2011

Invoices To Finance ? Here’s The Best Method Of Factoring Financing In Canada For Accounts Receivable !


We know why you are here. You’ve got them; you just don't know what to do with them. We're of course talking about invoices to finance, and what we think is the best method of factoring financing for your accounts receivable.

There isn’t a day these days when we don’t meet a client like you who isn't challenged by working capital and cash flow challenges.

Let's examine the basics of factoring financing in Canada, with exactly what you need to know, which is simply how does it work and whats the best type of receivable financing arrangement. Oh, and by the way, we'll share some tips on what to look for in that ' perfect' arrangement we are referring to,

So let's weigh in on our subject, which is that you have got accounts receivable, and they are growing , and as everyone is experiencing these days, your clients , as great as they are, are slow to pay. And we won't forget that terrible thing known as the bulge, which is that seasonal or occasional situations when large sales opportunities loom and you need financing to cover those off.

Thousand of Canadian companies can't all be wrong, so there must be something to factoring financing of those invoices, right? We're going one step better and recommending that you investigate confidential invoice financing, which is simply a factor arrangement that has you in control of the show, not the finance firm. And controlling your own destiny is what it is all about.

Accounts receivable financing is simply the sale of your invoices to your finance partner firm - you get the cash immediately. It works best when you have some decent gross margins to absorb the 1-2.5% financing cost that comes along with this type of financing. The cost is what most of our clients are worried about , and they are somewhat more happier when we show them how they have the ability to cut that cost in half using that new found cash flow to execute on strategies such as taking discounts with their suppliers and buying in bulk at better prices .

So here comes that recommended secret we are talking about. We call it C I D, which stands for confidential invoice discounting. Here's where you have the advantage over your competitors. 99% of all factor financing in Canada revolves around your factor firm partner billing and collecting your invoices, with notice to your customer. Our offering eliminates that, you bill and collect your own invoices, when you want, when you need the cash. So you have the same pricing as your competitors, but you are on up on how the facility works.

Things we look out for when we originate these financings are areas such as the total all in rate of your new financing facility. Other somewhat technical issues are the advance rate, of what is advanced against the full amount of your invoices. Some other key issues to look for are the miscellaneous admin fees, the exact calculation your new financing partner uses for their rate, and your ability to terminate the arrangement at no cost.

Some of these latter issues we mentioned can save you thousands and tens of thousands of dollars of a year, so we recommend you use the service of a trusted, credible and experienced Canadian business financing advisor to ensure you have the best method of factoring financing for your firm.
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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/factoring_financing_accounts_receivable_invoices.html

Sunday, January 30, 2011

Looking for Film Finance ? Your Secret Weapon Is The Canadian Film Tax Credit !


We're going to make a quick assumption here, and that’s that you are not a movie mogul in an international film studio! But we do think we know who you are - a producer or project owner looking to complete your film finance plan.

We'll also make another educated guess - here goes: You have found out that the Canadian film tax credit system can finance anywhere from 30-45% of your project and that’s quite appealing!

Let’s examine the basics of the Canadian film tax credit and determine how it can assist you in financing your project. The Canadian government has made it very clear that it is committed to film (by the way we're including television and animation here!) due to the revenue and cultural aspects of the entertainment industry.

So these tax credits can play an integral part in the overall financing part of the plan. But in talking to clients we make it very clear that the onus is still on yourself, and we know its not easy, to complete the rest of your financial plan .That is of course the remaining financing you need that it achieved by arranged equity, debt, pre-sales , etc - in effect completing the finance puzzle .

More often than not the tax credits we look at tend to be in Ontario and B.C., those provinces have historically been viewed as Hollywood North in film finance - but the reality is that if you can shoot or produce your project in some of the other Canadian provinces those tax credits become even more liberal depending on the geography you have chosen.

So how do you successful navigate the Canadian film tax credit maze? We personally don’t think its a maze, in fact its quite straight forward, but the reality is that when anyone associates a government program with funding it has a perception of being bureaucratic, slow, etc . That’s not necessarily the case with the film tax credit.

Lets ensure you have the basics, and quite frankly you can move to GO and collect 200$ simply by utilizing a core expert team consisting of a Canadian tax credit advisor. Together with your entertainment accountant and lawyer that advisor can fast track you to Canadian film tax credit success.

The process simply involves applying for a Production certificate that ensure your project is eligible based on your spend budget. Non- Canadian producers may even be surprised to know that you can apply on-line through the government portal to get your certificate. This is where having the right ' finance talent ' comes into play, because you want to maximize your credit to achieve the best qualification for the combined federal and provincial credit.

Can the Canadian film tax credit be used to actually finance your film, i.e. real money? Absolutely, positively. Working with a Canadian business financing advisor in this area will allow you to cash flow or monetize your credit. The capital, again, anywhere from 35% ++ of your project can be used to actually complete your production in combination with your other aforementioned sources of financing.

In summary, we are the first to recognize that film finance isn’t easy - but when an accredited partner - i.e. the Canadian government! is willing to step in and help you with 30-45% , or more of your entire budget our recommendation is simple - Take the offer .! Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing your film finance plan.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/canadian_fi
lm_tax_credit_film_finance.html

Saturday, January 29, 2011

Should You Finance Your Sred Tax Credits Via Sred Consultants On Your SRED Claim?


Should you, or shouldn't you? We're talking about your sred tax credits , filing the actual sr&ed claim for financing purposes, and the role of ' sred consultants' in the whole process .

A basic primer never helps, as we still today run into many clients that don't even know what the whole cra sred program is, let alone use it, and let alone use the proceeds for working capital financing .

If you're a speaker they say it’s good to know about your ' target audience '. Well, our target audience is very clear! Whether you are a start up, or an established Canadian company, and if you are spending any money at all on research and development costs, then, guess what - you're our target audience today.

And, if you can utilize the program the ability to finance your claim for immediate cash flow and working capital improves your balance sheet immediately, certainly from a liquidity viewpoint - and cash is always king we are told.

Let's cover off who those sred consultants are, because they are a key process in the filing, and to a certain degree, financing of your claim. That claim of course allows you to get your firms share of the 3-4 Billion dollars of annual cheques that are written to your competitors, and our goal with our information is to get that funding into your hands as soon as possible.

Sred consultants are private individuals and firms, somewhat boutique in nature, that specialize in writing and filing your sred claim. Filling out any government form for us has always been a daunting task, but to miss the opportunity in a sred filing and getting approval isn’t just embarrassing, it could cost your firms thousands, or tens of thousands of dollars in missed refunds. So these consultants tend to be very experienced in sr&Ed calim process, and have the ability to maximize your sred tax credits to bring you the most dollars possible.

Who isn’t interested in a non repayable credit from the government? Certainly no one we speak to. So we think you would agree that the ability to ' get with the program ' so to speak, when it comes to a sr&Ed claim is beneficial to any firm. And by the way, only privately owned Canadian firms can benefit in this manner from sred tax credits.

So your firm is eligible - you're either a first time filer, or you have been doing this for years. What else could you possibly benefit from in this program? The answer is, we think, that you should consider financing your claim. Why does that make sense? To us maybe its too obvious, but the ability to cash flow your sred tax credits into immediate working capital puts you one step ahead of the game when it comes to your business growth.

Financing the claim is a very simple process. Locate a Canadian business financing advisor that is trusted, credible and experienced in sred tax credit financing. That person will help you understand the basics of the financing - which is essentially a bridge loan collateralized by your claim. In effect you're financing or monetizing a government receivable. Your receive approximately 70% of the valued of your filed claim, now, which we think is better than waiting, 3, 4 or even 12 months for your claim to be approved and to receive your funds via the government .

Claims can be financed within a matter of weeks, and the process is simply a business application supported by the information around your sr&Ed claim. Having your claim prepared by one of those qualified sred consultants just simply lends credibility to your filing. So, should you or shouldn’t you. Our recommendation - file a sr&Ed claim if your are eligible. Finance it if you want cash flow and working capital now. It's as simple as that.

--
Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

Friday, January 28, 2011

New Franchisee? How Franchising Lenders work in Canadian franchise finance


Being the ' new person ' is not always beneficial, especially when it comes to a major life decision such as your new career as a franchisee in Canada. Not knowing about franchise finance or franchising lenders work is definitely a set back - so lets get you ' armed and ready ' with some solid info on financing your franchise .

First of all, here’s the good news - financing a franchise in Canada is certainly possible - It’s mostly done by a guy named BILL! And we're not kidding. More about him later.

In fact though, the franchise industry is currently viewed as quite healthy as lenders feel that the concept of proven business models and branding of your franchise are great steps to opening what ultimately is a ' start up ' business. Clearly we all agree a franchise ' start up ' is steps ahead of opening up your own business and ' taking a chance'.

So, can you get a ' standard’ bank loan to complete your franchise finance? We don’t want to be too sarcastic here, but the answer is, yes, if you have a million dollars net worth, pristine credit, and some outside collateral and guarantee ability. So what we are saying, putting that sarcasm aside, is that conventional lending doesn’t really work if you're a new franchisee seeking an independent business opportunity financing.

So, that brings us to our friend BIll, remember we told you he finances most of the franchises in Canada. Clearly a popular guy, as he finances millions of dollars of franchises. Our clients want to immediately get to know this Bill guy. So, who is Bill?

Actually we have spelled his name wrong, its BIL, because that is the name of the government sponsored loan programme in Canada (in the U.S. it’s called the SBA loan) that funds most franchisees in Canada.

How can one program be so popular? It's simply because it’s well suited to what you are trying to accomplish. It provides great rates, terms and structures, limited personal guarantees, and requires what we in our firm call a reasonable or decent personal credit history. I.E. You don’t need that million dollar net worth we spoke of earlier?

So how do you achieve franchise finance success with franchising lenders on the BIL loan? Again, pardon our humor, but investigate the Boy Scout motto - Be Prepared!

The essence of approval for your franchisee venture for franchising lenders under a BIL loan is a crisp business plan, a financial projection that makes sense, and various back up documents as required by the program. Naturally you also need assistance in determining who offers this loan program, how it can be sometime augmented with other financing, and it sure helps if you present it professionally and properly.

So, we always try to have a bottom line, and in this cases its pretty simple - investigate the BIL program, do your homework, identify key requirements, and, if you are challenged by any of the above seek a trusted, credible, and experienced Canadian business financing advisor who can help you achieve franchisee franchise finance success with the right franchising lenders for your BIL. And, by the way, congratulations on your new role as a Canadian entrepreneur!

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/franchise_finance_franchising_lenders_franchisee.html

Thursday, January 27, 2011

Who Are The Best Asset Based Lenders ? Looking for loan financing companies in Canada for Working Capital?


We know where you are at. You've heard about asset based lenders, are a bit confused about this type of loan financing (It’s not really a loan) and you want to know which companies in Canada best suit your working capital needs.

Everything seems to be going ' viral ' these days, and we strongly feel that asset based lines of credit from Canadian asset based lenders are right up there - to put it simply, they are ' trending up ' in popularity .

Let’s examine the key basics of the service offering of asset based lenders in Canada and determine how you pick what's best for your firm. That is the real challenge.

So, again, what is the service offering really about when you're looking for an asset based lender? It’s actually a bit more simple to understand than you think. Clients we talk to are of course 100% familiar with a bank operating line of credit - that’s been available forever - if , and its a big if, you qualify.

Loan financing companies offering asset based lines of credit are simply finance firms, usually private and independent , that offer you an operating line of credit - based on the true value of your receivables , inventory, and in many cases fixed assets or real estate that don’t have other liens on them . Simple as that.

We know you're struggling to see the difference between that bank facility and this newer version of it. The key differences are simply, and that’s why hundreds, probably thousands of firms are moving to this type of working capital and cash flow facility. We'll summarize the benefits of that facility quickly and easily. They are as follows: easier approval, less collateral, covenants and guarantees from owners, more liquidity, and unlimited financial borrowing power.

Let's cover off those last two points a bit more; they are the ones that most intrigue our clients who are considering the switch. Asset based lenders approve many firms for either more working capital than the client would have received from a bank , or often times approvals are based on facilities that never would be approved by a bank in any circumstances .

Don't believe us? Actually many firms who are even in special loans or coming out of bankruptcy can, in many circumstances, access asset based lenders. Why? Because they have the one thing an ABL (that’s the acronym for the industry) needs: ASSETS!

So we think we've got you onside with the benefit of an asset based line of credit from loan financing companies in Canada that offer these type of revolving facilities. But which one is best for your firm.

Here's what you need to know. We speak of a ' loan ' but keep in mind this is basically an operating line of credit for your firm. The factors that affect who you are best to deal with are as follows - the size of your facility, the current financial situation your firm is in, where you are located, and the mix between A/R, inventory, and those other assets you might have on hand. These type of facilities work best when they are in the 250k and up range. And by the way, up in our case means anything up to 50 Millions dollars, or more!

If your firm doesn't qualify from a size perspective there are still some unique business financing strategies for current assets that makes sense.

Speak to a trusted, credible, and experienced Canadian business financing advisor. You'll be on the road to improved working capital health in a short time!

--


Stan Prokop - founder of 7 Park Avenue Financial -
http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/asset_based_lenders_loan_financing_companies.html







Wednesday, January 26, 2011

The Reality Around Working Capital And Cash Flow Business Financing In Canada


Your access, and the way you manage your firms working capital and cash flow play a key role in business financing and your firm’s growth and overall well being. We rarely get an argument on that one.

Your ability to get financing on items such as fixed assets, a/r, and inventory will ultimately depend on how successful and also how fast your company can grow .

Clients are somewhat amazed when we tell them that we can pinpoint the exact time when they will stop being successful! What do we mean by that? Simply that you have a great little tool to determine when you need that extra capital in your business. Most small and medium sized businesses haven’t heard of it, we can assure you larger more sophisticated corporations have a total handle on this one.

So whats the tool - it’s called the Sustainable growth ratio and it’s a simple formula that shows you the most your firm can grow without bringing in new capital. For example, if you want to get a shareholder return on your total capital in the business of 20% you can re invest all your earnings and keep your relative overall financial position the same. Want to grow faster, then access more outside capital .Simple as that.

However accessing more capital from the viewpoint of our clients is either difficult, or undesirable - i.e. reducing their ownership interests, etc. So whats the choice. It’s simply monetize your business financing assets such as receivables, inventory and unencumbered assets and create working capital and cash flow via asset turnover.

You create cash flow financing internally be addressing how you finance receivables, inventory, and accounts payable. Accounts payable you ask?! Yes, simply because as you slow your payables you generate real cash flow progress. Naturally there is a fine line here between generating that cash and alienating your valued suppliers!

We never want to be accused of talking about the problems and not the solutions, and we mean real world solutions, not textbook solutions to Canadian working capital financing.

So let’s recap the solutions and why and when they might make sense. The easy, quick, go to solution is working with a commercial banker to determine if you qualify for bank financing from an operating line of credit point of view. We surmise that if you have all the access to bank credit you need you wouldn’t be here reading our solutions proposed!

Other real world alternatives for cash flow financing in Canada, some of which are even unknown to our clients include asset based lending facilities that are non bank in nature - basically lines of credit from private finance firms. Other solutions include confidential invoice discounting, and purchase order financing, which also occasionally dovetail into the financing of your inventory either prior to purchase or when its on your shop floor .

In summary, we spoke of your desire or inability to attract long term capital to your business, the solution being short term working capital decisions around how you finance on a day to day basis. Speak to a trusted, credible an experienced business financing advisor on how to access the Canadian business financing you need. Today!

--


Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7
parkavenuefinancial.com/working_capital_cash_flow_business_financing.html

Tuesday, January 25, 2011

Considering Equipment Finance in Canada ? – Why Equipment Leasing Is Your Finance Advantage


Want some good news ? - Your firm has the ' home team advantage ‘. That common sports expression we think pertains to business when you are making use of all the advantages of equipment finance and equipment leasing for your Canadian acquisition needs.

A lot of the advantages of leasing are constantly being talked about - if you don’t know them by now it sounds like you are considering lease financing for the first time. Sitting down with clients it always becomes apparent to us that of all those advantages, and they are numerous, cash flow is often the most significant benefit to business owners and financial managers.

So, is cash flow still the ruling king, as we have heard it always was? Definitely, because when you utilize equipment finance solutions you in effect have created your own new line of business credit. And the restrictions, covenants, outside collateral, and all those other things you associate with a bank or term loan seem to suddenly have gone away with your equipment leasing solution.

Is leasing versus buying also considered a key advantage? That’s a question clients always ask. The reality is that there are somewhat complicated accounting, tax, and depreciation calculations that come into play on that issue - more often than not we think it’s a bit of a wash in our opinion. However, depending on the actual type of lease you use there could be some immediate apparent advantages.

For example, choosing a residual type lease, also know in the industry as an operating lease gives you the chance to experience a lower payment advantage, and lower payments are always a good thing ,

Want to devote a huge piece of your life to getting a term loan or bank financing arrangement in place for your new equipment. By all mans go ahead - but our clients have already beat you to the bunch, and we sure hope they are not your competitors, because they obtain lease approvals in a matter of a couple days - Canadian equipment finance leases are approved in a much more expeditious manner .

There is a term in business finance revolving around the concept of matching long term assets to long term debt. Simply speaking, using an extreme example, you wouldn’t use your entire business line of credit to purchase a plant equipment asset that might have a useful life of, say, ten years. All of a sudden the use of the operating facility for the purchase has totally eliminated your day to day operating cash flow, which is typically used to pay employees, repay loans, purchase product, etc.

And getting back out our old friend cash flow, the true flexibility of leasing, is that those payments you need to make can be structured flexibly around seasonality of your business, as well as the matching of the payment to the useful economic life of the asset .

So, in summary, how can you get the equipment finance advantage in Canada? Speak to a trusted credible , and experienced Canadian business financing advisor who will assist you in ensuring you have the right lease, a prompt approval, and rates terms and structures that match you equipment leasing needs . That then, is your home team advantage!

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/equipment_finance_equipment_leasing.html

Monday, January 24, 2011

How To Get The Best Factoring Financing From Your Receivable Investment And How Factoring Firms Differ in Canada


Clients who are in the process of investigating factoring financing want to know their receivable investment is being financed in the best manner possible. So... are factoring firms different - oh boy - you dont believe how different they are.

Let's examine some of the key issues around factoring and receivable financing in Canada - lets look at what the best type of facility is (in our opinion at least!), how the financing works, and most importantly, why you should consider using it.

Let's address the last issue first, namely why you should be using, or at least considering factoring financing. The reality is that your business is in one of several categories - they might be as follows: you are unable to unable to obtain traditional bank type financing; your business is growing at an exceptionally fast rate to support bank financing approval, your firm has financial challenges re operating losses and other issues.

So how do you choose among the many factoring firms out there in the Canadian environment? This is where it gets tricky, and you will save probably thousands of dollars when it comes to working with the factoring firms that make sense for your needs.

Here's the basic ' lay of the land' in a nutshell. Canada has hundreds, and we mean hundreds of factoring firms that come in all shapes and sizes, small local boutique operations, branches of U.S. and U.K. firms, and everything in between. We recommend a Canadian receivable financing firm that is local to understanding your needs, and one that offers confidential invoice factoring, which by far in our opinion, is the best type of A/R financing.

As most Canadian business owners and financial managers know invoice discounting, aka factoring is simply the sale of your receivables, on a one of, or entire basis, for immediate cash. Sounds simple and sounds great, right. It is, but the type of facility you choose and what you pay can make or break your decision to finance your A/R investment.

Costs of financing your A/R with factoring firms differ greatly - Generally you can be expected to pay between 1-3% per month based on a few key issues such as the size of your A/R investment, the industry you are in, and your receivable turnover, or DSO as its known in the business.

We strongly recommend clients search for a confidential invoice discounting facility - by far the best. Your firm retains all the advantages of factoring financing, but bills and collects your own receivables, receiving cash instantly as you invoice. This facility compares to the other 99.9% of the industry which uses a cumbersome system that involves notification to your customers around your financing arrangements.

There isn’t a day when we aren’t asked by clients about the cost of factoring, which is perceived as high by many clients. We can assure you that yes, it is higher than bank financing, but ask your bank if they will give you an unlimited line of credit based on your receivables . Keep us posted on that one, because we thing you know the answer already.

Also, if you used receivable factoring prudently you could actually in many cases achieve the same costs as you have in bank type lines of credit, but that’s a subject for another day.

Unsure of how factoring finance works - lets cover it off then! You invoice you client for work or services or product done/shipped, etc. You receive the same day, cash flow wired into your bank for that invoice or invoices. Typically 90% is advanced same day, the other 10% is a buffer , held back and remitted to you when your client pays, less the factoring costs themselves .

So whats our bottom line then - we think we can sum it up as follows. There are different types of factoring - we maintain confidential invoice factoring works best. Cost vary between firms and you should ensure you work with a trusted , credible and experienced Canadian business financing advisor to get the facility that makes most sense financially for your company .


-



Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/factoring_financing_receivable_factoring_firms.html

Sunday, January 23, 2011

Why You Should Use Canadian Film Tax Credits For Your Film Production Financing


Don’t consider using Canadian film tax credits for film production if your film production has all the financing you need and your current projects are totally financed and will achieve a solid return on investment for your project.

Unfortunately, we haven’t met one producer or project owner in film, television and animation that seems to have all the funding they need and in place! We've heard they exist, I guess we just haven’t met them.

The Canadian government, and more often than not Ontario, British Columbia and the Maritimes are totally focused on providing you with non repayable funding for your projects in the genres of film, TV and the growing genre of animated features. They are offering, so what aren’t you taking?!

We are pretty sure the Canadian film tax credits have the same goal as in other parts of the world, namely stimulation of investment and employment.

If your film production (we will use that term interchangeably with tv/animation) requires additional funding (which project doesn’t) the provincial film funds can provide you with anywhere from 30 - 45% of your entire budget. And by the way , that’s not a loan , that’s tax credits that are certified and come back to you as the project owner in the form of a cheque - In Hollywood terms the government wants to ' show you the money ' !

We are often asked why Canadian film tax credits vary when we meet with clients and discuss broad ranges of per cent age funding of your project. It all comes down to a few simple issues around which of the 6 available tax credits you use (we recommend you use the one that will give you the most funds by the way!) and where your project is originated re shooting, production, development, post development, etc .

We encourage clients to seek an advisor who is trusted, credible and experiences in Canadian film tax credits for film production. That allows you to maximize your funding, ensure you are eligible, and, as we have said, allow you to 'max out ', so to speak, on the credits that are applicable to your particular project.

What you need to do is ensure your project qualifies and that you are aware of application, filing and other regulations that come into play that allow you to receive funds.

And oh yes, by the way. You could wait 3, 6, or even 12 months for your funds, but we recommend all clients assess the financeability of your credits before you receive the cheque. Financing your Canadian film tax credits allows you to monetize that future credit into a bridge loan, collateralized by the credit, and provides you with cash flow and working capital for your current production.

Financing your film production via the monetization of your tax credits involves just a few basics - ensuring you have your other debt and equity in place, validating your credit and budgets as eligible, and ensuring your financial filings are up to date.

Speak to a trusted expert in Canadian film financing to achieve additional funding for your projects - maximize on that film tax credit, and consider borrowing against it for funding you need now. Fade to credits!

--

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/canadian_film_tax_credits_film_production.html

Saturday, January 22, 2011

Effective Sred Tax Credit Financing – Using A SR ED Loan For The Right Reasons


Would your company like to make the most out of a good thing in business - Effective sred tax credit financing, we think you'll agree, does just that. Contemplating a sr Ed loan for the right reasons to us just makes solid business sense.

Lets cover off exactly what you need to know about maximizing your participation in whats known as the Canadian governments Scientific Research and Experimental Development offering - we in the layman’s world call it the SR ED , or SR&ED program . Leave it to the government to use that formal terminology!

Whether you have never heard of the program at all, or are a first time claimant for your share, or , if you are one of the lucky ones and have been filing for years for your share of the 3 Billion dollar pie you are clearly in line to hear some great news . What is that news? It's simply that for the right reasons your ability to cash flow, monetize, borrow against, factor, whatever you want to call it , your sred tax credit can be an effective way of increasing your working capital and cash flow .

Could it be any simpler? Your company is eligible for a refund on expenditures that have been verified under the program for R&D expenditures. Thousands, and we mean thousands of businesses, many of them your competitors, are receiving cheques from the government, that are non repayable for your investment in R&D processes, products and services.

If you are not missing out on filing your claims are you missing out on effective sred tax credit financing. You just might be. We strongly believe that utilizing a sr ed loan for the right reasons is a great way to stay one step ahead of the working capital game .

Let’s examine why effective sred tax credit financing via a sr Ed loan makes sense. Generally it only makes sense under one single condition - its that your firm needs cash flow and working capital for payables reduction, further investment, equipment, and general operating expenses .! We are quite sure you are already in that group!

Monetizing your sred tax credit is simply borrowing against a rebate that is coming to you from the federal and provincial government via your sred claim. Is there anyone in the room that disputes funds today are better than funds tomorrow? We don’t believe you will argue with us on that.

If you are part of the program, or considering the sr&Ed program from a participation point of view you should consider financing your claim after it’s completed. In actuality you can finance it immediately after it’s filed, or in many cases, as you are expending funds!

SR&ED financing is simply the monetizing of that account receivable (that’s really what your sred claim has now become) to use the cash for any worthwhile corporate purpose. A sr ed loan for the right reasons allows you to increase cash flow , and simply stay more competitive - which you probably already are given you are investing in r&d type work .

Effective sred tax credit financing works best when its done quickly and efficiently at competitive rates - no payments are made by your firm and the proceeds of your sr ed loan are netted against the final cheque your firm is due .

Want to wait 3, 6, or 12 months for your sr&Ed cheque. By all means do - but remember your competitor got their cheque today by effective use of a sr&Ed tax credit finance strategy. That’s something to think about.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sred_tax_credit_financing_sr_ed_loan.html

Friday, January 21, 2011

Financing a franchise business? What you need to know to obtain finance for a franchise




Can too much expert knowledge in financing a franchise business ever be a bad thing? We certainly don’t think so and we'll show you how to obtain finance for a franchise business that you have chosen to purchase.

When talking to clients about franchise finance in Canada we generally talk about the Boy Scout motto. You will recall that their motto is ' BE PREPARED ' and that’s the total strategy around financing a franchise successful that you must adopt.

Getting the money to purchase your franchise of often the biggest worry of new entrepreneurs such as yourself. People search out franchising opportunities because they are essentially looking for a combination of opportunity and wealth - there is usually only one major obstacle to that road to success, it’s the funding for the acquisition of the franchise business.

If we had to summarize in a very simple and basic what you need to be successful in franchise financing we would boil it down to a few key issues. Want to know what they are? From our perspective it all comes down to a reasonable history of business or management experience , a decent personal financial profile - more about that one later, and access to the ' inside secret ' of franchise financing in Canada, which, you may be surprise to know, is the government of Canada !

Let’s circle back on those points - and as always it comes down and back to our Boy Scout motto - be prepared. We can see our client’s eyes rolling back now when we tell them we need a crisp business plan . That’s a key requirement of your ability to obtain finance for a franchise, simply because it’s the ' proof’, if you will, of your ability to understand and run your business properly. In that document you have info about yourself, the business you are purchasing, the industry you are in, and the financial performance you expect to achieve in your new role as business owner and entrepreneur.

From a lenders perspective financing a franchise business is all about one thing - getting paid back for the loan. So the lender will look at how you have structured the financial portion of your business plan to reflect ability to repay your franchise loan, as well as how much cash flow and working capital is left to pay yourself a salary and run your new business. Could anything make more sense than a properly crafted and positioned business plan - we don’t think so.

Your money - you have it, you want to keep it - don’t we all. However, whether it’s a franchise business or any business for that matter OPM never works - OPM is ' other people’s money' and you can't rely on 100% of outside financing to obtain finance for a franchise in Canada. So be prepared to invest anywhere from 25-50% of the purchase price into your acquisition. Coupled with that and this is critical, you must be able to demonstrate that you have run your personal and business affairs respectably from a credit perspective. Obtaining a copy of your credit report, in advance, by you, is strongly recommended.

And, oh yes, what about that Government Issue we mentioned. That’s one of the great secrets and tips we promised to reveal. Did you know that probably 90% or more of financing a franchise business in Canada revolves around a special loan program called the CSBF/BIL loan? It’s a federal program, and administered by financial institutions. Whats so great about it - limited personal guarantees, great rates, terms and structures.

Speak to an expert in franchise financing when you are looking to obtain finance for a franchise - seek out someone who is trusted, credible and experienced. Be prepared, and get ready to be successful.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/financing_franchise_business_finance_for_franchise.html

Thursday, January 20, 2011

What’s the State Of Asset Finance Solutions in Canada and What Asset Based Lending Rates Make Sense For My Firm ?


There must be a reason why asset finance solutions are becoming one of the most popular solutions to business financing in Canada. Let’s look at asset based lending rates in Canada and the types of solutions that might be available for your firm.

Because of the broadly interpreted nature of the term asset finance solutions lets be really clear on what we are talking about here. Asset based lines of credit is really the essence of our topic and discussion. Simply speaking it’s the financing that your firm secures, on a revolving of operating basis, and it’s collateralized by receivables and inventory.

But wait, we should also add that in many cases your firm’s equipment and unencumbered fixed assets are also eligible for operating financing. Most business owners realize that Canadian chartered banks generally do not allow you to monetize or borrow daily against equipment and fixed assets such as real estate. Asset finance, i.e. our asset based line of credit does just that? That is one of the reasons why it is significantly different.

So we have made the statement that asset finance solutions are becoming more and more popular everyday - why is this so? Think alternative, think liquidity, think ' less rules '. That’s what an asst based line of credit is all about. We tell our clients we haven’t seen one case where a customer’s asset based line of credit didn’t improve significantly from a viewpoint of borrowing power, with fewer rules.

What are those ' rules' we are referring to? Let's put it this way, you couldn’t measure our respect for the Canadian banking system in Canada - it’s immense. But the reality is that typically small and medium sized businesses in Canada - ( lets define that as , say anything from between 1 -30 Million in revenue ) are challenged when in comes to operating lines of credit .

Asset finance solutions via an ABL facility (ABL = asset based line of credit) remove a huge part of that challenge. They monetize assets, allowing you to borrow against them on a daily basis. Very little if any emphasis is placed on balance sheet ratios, profitability (it helps and is nice to be profitable though!) personal guarantees, or outside collateral.

Are asset based lending rates different from bank credit facilities? In some cases they actually are the same of better from a viewpoint of a pure rate discussion, where they differ is that if you firms facility size is under the 3 Million dollar range from a viewpoint of A/R and inventory balances. At this point you can expect to pay a significant premium compared to a bank line of credit.

Is the ' premium’ on asset based lending rates worth it to your firm? It absolutely isn’t worth it, IF... and thats a big IF... you don’t place value on increased borrowing power, the ability to borrow against your assets as you grow, as well as the increased flexibility around the terms and conditions of you facility . That’s a big IF..! and we think clients get our point when we say that any premium you might pay is easily justified .

Asset based lending rates have some other considerations also, but frankly they don’t differ all that much from any business financing facility - so you might be expected, depending on who you are dealing with , to pay an origination fee, a termination fee, and standard legal expenses to set up an securitize the facility .

Are asset based lines of credit becoming more popular in Canada - absolutely! Will they cost you more - maybe and maybe not - depending on the overall size and quality of the facility you require. Are the advantages of increased liquidity important for you - that’s for you to decide! Speak to a trusted, credible and experienced Canadian business financing advisor to learn more about asset finance solutions in Canada.
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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/asset_based_lending_rates_asset_finance_solutions.html

Tuesday, January 18, 2011

What will cash flow financing cost your firm and what working capital cash facilities make sense?


Cash flow financing is typically what makes or breaks your company as your firm grows or struggles to overcome temporary challenges. Working capital cash finance is a top priority for small and medium sized business in Canada.
We hate taking the easy way out for an answer to those concerns, so we'll attempt to provide some real world immediate solutions for that working capital challenge that is always top of mind.

We haven’t found anyone who does not disagree that working capital management tends to be the single most important measurement for your firm on a daily and ongoing basis - its always comes back to that ' cash flow is king' fellow!

If your liquidity is limited you need to recognize that. Your accountant, with all due respect will easily and quickly calculate your working capital and potentially advise you that you're in a great position. He or she does that by going to your balance sheet and subtracting current liabilities from current assets. Let’s say he or she came back and gave you the great news - that you have 4 dollars of current assets for every one dollar of payables. Sounds great so far, right?

Wrong, because you might find that your actual cash on hand is only .30 cents for every dollar of payables due, and all your money is tied up in - you guessed it, receivables and inventory that are slow paying and slow turning, respectively.
So the reality is you have great working capital only if you feel very comfortable that you can pay bills, loans, leases, employees, etc!! .. as they come due . We don’t meet a lot of business owners in the small and medium size business category that have that level of comfort.

So, why do you have a cash flow financing need, and what is the cost of a working capital cash facility that makes sense.
Sitting down with clients and talking about their cash flow needs often revolves around the same key issues they are going through : temporary financial losses, lack of long term financing ( i.e. buying or leasing non current assets without good long term debt solutions ) , and , you guessed it , your biggest problem - growth ! Dramatic increases in sales, as great as they sound, lead to cash flow financing needs.

An internal solution that will not cost you a lot and solve your working capital cash challenge is simply better turnover of receivables and inventory. That’s easy for us to say and difficult for you to achieve, right? So, how does Canadian business address that - it’s by monetizing receivables and inventory and in effect your future sales, via a cash flow financing facility.
If you firm is in a great industry, has clean balance sheets, and makes money your bank facility for a revolving line of credit will typically be in the 5-10% per annum range for cost of financing.

If your firm doesn’t qualify for bank financing should you abandon ship? Definitely not. Working capital financing via receivables financing and asset based lending can solve all your problems and in effect turn your firm into a cash flow machine.

That new found cash flow comes at a price, as rates can be in the 1% or 2% per month range, but you are actually paying that now by carrying A/R and inventory and losing out on the opportunity cost of turning capital into new sales and profits.
Speak to a trusted, credible and experience Canadian business financing advisor for your cash flow financing solution that makes optimal sense for your company.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/cash_flow_financing_working_capital_cash.html

The Advantage of Lease Financing When You Have the Right Equipment financing Company As A Partner

In your lease financing needs wouldn’t you like to have what they call the ' home team' advantage? Advantages in business are great, especially when your competitor is on the other side of that advantage! That's why we feel the right equpment financing company in effect becomes your home team advantage, as it becomes a partner and solution provider for your lease financing needs.

You probably have already decided why you are going to lease, rather than buy and purchase outright. We start telling clients about things like the tax advantages of equipment financing in Canada, depreciation strategies that follow tax benefits, their ability to manage obsolescence, adding in install and warranty and maintenance into the lease , etc,etc,etc ..... but do you know what ? All those benefits are great, but firms such as yours more often than not are mostly concerned about cash flow and the concern of drawing down on bank credit lines, etc for equipment that ultimately depreciates or has to be replaced.

So yes, you do need to know all those advantages, and focus on the ones that make the most sense for your company, so you can maximize them - but the bottom line is that lease financing is mostly regarded as a cash flow tool. The textbooks call it the most efficient use of your resources when you have limited capital - we simply call it a great way to conserve cash flow.

One of the advantages of lease financing is simply clearly that it covers you from low tech to hi tech. What do we mean by that, simply that all assets can be properly financed if you partner with the right equipment financing company. That goes from computers and technology that seems to depreciate one second after you purchase it, to your shop floor and office equpment that might give you useful economic benefits for years.

And hey, what about that other advantage - leasing to own, or leasing to use? Many clients aren’t aware they can structure whats known as an operating lease whereby they use the asset, minimize their cash flow outflows, and have maximum flexibility at the end of the lease financing transaction. What is that flexibility? They can utilize one of three options at the end of the term - they can buy the unit, return it, or upgrade/extend the transaction. Tell us that’s not flexibility?!

So we've laid out all those great advantages, but it is easy to find the right lease financing company. Clients are surprised to hear that there are hundreds of lease finance firms in Canada - some are huge, some are small, some are geographic, some don’t want your type of business, some are dying to find you and get your business and provide you with great rates, terms, and structures.

If you don’t have the time to approach a few hundred firms, meet them discuss your needs, and give them your financial statements is there a solution. There is. Speak to a Canadian business financing advisor who is trusted, credible and experienced in lease financing. Flexible Terms, documents and credit approval come quickly when you have the right equipment finance company as a partner.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/equipment_financing_company_lease_financing.html

Monday, January 17, 2011

How The Cost of Factoring Finance Makes Sense In Accounts Receivable Financing

Is it possible to overcome the working capital and cash flow challenge you face with a confidential accounts receive financing and factoring facility? And another thing what is the true cost of factoring finance.

Let's weigh in on those two issues and try and help you solve your Canadian business financing needs - our comments are mainly addressed to small and medium sized companies in Canada, but we can assure you the big boys come to talk to us about these problems also.

Problems we said... so what is that problem really. It’s simply that the ability to maintain ongoing liquidity continues to be the largest challenge in business today - simply put, the recession is over _ (the government sent us an email confirming that!) and your business is on track to grow again.

The ability to get proper business financing credit and the perceived cost of factoring finance is always a discussion point we have with clients. Working capital and cash flow are needed to keep up to your day to day operations, let alone grow your business in the manner that you want to.

We don’t want to be perceived as naysayer, so lets address our real subject here, which is accounts receivable financing, the cost of factoring financing ( that’s what it is commonly known as ) as well as the benefits of what we feel is the greatest secret in Canadian business today, a confidential invoice and receivable financing facility.

First of all, what is the facility, and is it somewhat non traditional or alternative in nature? A true accounts receivable financing strategy is actually quite simply - you enter into an arrangement to sell your sales as you generate them - receiving cash, the same day! That of course is better than waiting 1, 2, and yes dare we say 3 months to collect your A/R. That brings us nicely into the area of the cost of factoring finance - which in Canada ranges typically to 1.5-2% per month.

Isn’t that expensive, asks clients. We don’t think so, but you decide based on these facts. This charge, which is known in the industry as a discount fee, not an interest rate per se, can be significantly offset by your new ability to take supplier discounts in the same amount, as well as purchase more effectively. The positive intangible around this is that you will build better supplier relationships than your competitors probably have, simply because suppliers love being paid.

And don’t forget what we said early, which is that you , instead of waiting 60-90 days to get paid have cash flow to sell more and creates profits to offset this financing cost . So in summary the combo of increased cash flow to reduce payables, as well as your ability to in an unlimited based generate immediate cash flow for profits very clearly offset any perceived ' high financing costs '. (We have met customers who have negotiated 5% better pricing with their suppliers based on their new found ability to pay cash.

The best type of accounts receivable financing facility in Canada is what we call a confidential invoice discounting facility. You bill and collect your own invoices, unlike your competitors who use traditional factor financing. And factoring finance cost is the same!

Intrigued? Interested? Hopefully not confused! Investigate the benefits of accounts receivable factoring finance with the use of a trusted, credible and experienced Canadian business financing advisor. It’s a cash flow 101 great strategy.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/accounts_receivable_financing_cost_of_factoring.html

Saturday, January 15, 2011

Canadian Film Projects Utilize Ontario Film Tax Credit Financing For Success


Most Canadian film projects (we’re referring to television and animation also) utilize Ontario film tax credit financing to complete their projects from a financial perspective. The proper use of these credits can enhance your overall ROI - aka return on investment.

The challenge for producers and owners of projects in our 3 named entertainment genres above is often quite simply to understand what the credits are - much less utilize them effectively. We'll try and address both issues.

Although we feel that film tax credits in Canada couldn't be more straightforward, things often become complicated probably simply because they are only one piece of your ' master plan ‘.
Again , we maintain the Canada film tax credits are very generous and the process for receiving them and financing is well defined, but , in defense of our clients they can be forgiven because some of the perceived complexity revolves around which province their production is domiciled in and what specify tax credits apply .And in the case of where you have a choice of utilizing one tax credit or another the question then becomes : ' What tax credit financing strategy brings my project the maximum benefits ?'

Clients seeking tax Ontario film tax credit financing, for example must ensure they have the puzzle solved. What's that puzzle - it’s simply what combo of equity, debt, and mezzanine type financing will maximize the tax credit. We hope that as business people you want to make the maximum profit possible on your project and venture. If you're the owner you will make less if you have to give up equity.

That is why using your tax credit as collateral enhances your overall return on investment and profit potential.

We read a great definition of mezzanine film financing awhile back - simply put it described the financing as the money in the middle between expensive equity or giving up ownership, and that other rock and hard place - paying interest and taking on debt for your project .

Ontario (we use that as an example - so our friends in BC, QUEBEC and Maritimes shouldn’t be offended) film tax credit financing uses your tax credit as the collateral for a large piece of your financing.

We've anticipated your next question - how large is large?! Realistically you can expect to recoup anywhere from 30-45% of your projects total costs in the form of a non repayable tax credit. And, when you know you are eligible for that tax credit then consider financing it to reduce the amount of real cash flow you need for your project. You in effect borrow against the value of the tax credit.

The ' reward’, if we can put it that way, for financing that 30-45% of your project is simply an interest rate charged on the value of the total tax credit due your project . 99.9% of producers and owners set up a separate legal entity for each project for financial and reporting reasons.

Using a quick example, say you had an independent production with a modest budge of 1 million dollars. If you have arranged 50% of that via equity in your project you need the additional 50% of that financing. If you were able to sell the rights for the project for 20% then the remaining 30% of your financing can be locked up quite nicely via film tax credit financing .

We don’t envy you around the challenges of raising equity, debt and mezzanine gap type financing for your projects. But take solace that Canadian film, TV and animation projects can be easily augmented with a significant amount of financing with the proper use of film tax credits.

Speak to a trusted, credible and experienced film tax credit financing advisor on your eligibility and the ability to finance your credits. Cut! That's a wrap.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/ontario_film_tax_credit_financing_canadian_film.html


Financing sr ed tax credit claims – Why a SRED Bridge Loan Make Sense

Purchased your lottery ticket yet? It's a 3 Billion dollar prize. That’s the feeling our clients have when they have secured their ticket (which is their sr Ed tax credit claim) to the three billion dollars the Canadian government provides each year for the Canadian SR&ED program. And the reality is with a properly submitted claim your odds of winning are much better than those lotteries - they approximate a 100% chance! We haven’t had those odds in our favor in awhile!

Let’s talk about why a sr&Ed bridge loan might make sense for the monetizing of the R&D non repayable grants that the government provides to Canadian firms who submit a claim for the program. Financing a sr ed tax credit claim allows you to cash flow, or monetize , however you want to call it your portion of the largest tax incentive program in Canada .

We have always told clients that the sr&Ed bridge loan makes sense, in our opinion, because it in essence fills the gap between your ability to get approved for the funds and receive those funds.

You have already made your commitment to R&D via your ability to innovate - so why no supercharge that innovation and turn those funds into cash. Financing sr Ed tax credit claim strategies provide your firm with the capital you need to further innovate and of course run your business.

We know by experience with our clients that many of the firms who participate in Canada's Sred program are whats known as pre revenue firms to finance professionals - in other terminology you're a start up, or very close to it. Accessing capital is hard when you are a start up - your firm simply doesn’t have the sales, profits, and the corresponding balance sheet and income statements to support the borrowing of capital.

If you're an established business and you have accounts receivable they can be financed of course. Well, guess what, you do have an account receivable that can be financed, it’s simply that it is known by another name - it’s your sr&Ed claim! A SR&ED bridge loan becomes an external source of capital that you otherwise might not be access based on traditional borrowing requirements.

A great strategy is simply to take advantage of financing sr ed tax credit claim and invest those funds in marketing the viability of your innovation that you achieved via the sr ed process . That is when a sr&Ed bridge loan makes total sense.

Capital is critical to any firm, whether you are the start up we just talked about, or an established firm simply desiring to grow your competitive edge and finance your business on an ongoing basis. Banks, venture capitalists, and private equity investors, etc don’t really finance sred claims.

In order to facilitate the financing of your calim seek an independent finance firm that specializes in this area. A trusted , credible and experience Canadian business financing advisor can have a sr&ed bridge loan completed in a couple of weeks with your firms full co operation . A simple application, a copy of your sred filing, and the normal due diligence associated with any business financing can be completed very quickly and efficiently.

Does it make sense to finance your sr&Ed claim - we think we’ve shown it has. The sred financing closes the gap between your innovation and the continued commercialization of your products and services, providing you with capital to maintain your competitive edge.
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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/financing_sr_ed_tax_credit_claims_sred_bridge_loan.html

Friday, January 14, 2011

How Much Will A Business Franchise Loan Cost When Financing A Franchise In Canada ?

The cost of a business franchise loan is often the first questions clients ask when talk to us about financing a franchise in Canada.
5.5% is the answer. So that’s it – end of story – you have your answer! Of course we're being a bit facetious because what we are referring to is simply the current interest rate on the most popularly utilized loan vehicle for franchise financing in Canada. Cost is of course one thing, getting approved, executing on your franchise financing properly, and finally not entering into the wrong type of financing strategy is another issue altogether.

Let’s examine the challenge and the reality of franchise financing as it relates to costs, methodology, and, as we said, doing it right.

If you aren’t aware of the specialized methods of franchise financing in Canada and that most popular loan vehicle we discussed then you certainly are a poorly informed and at risk entrepreneur in the franchise environment . Simply walking into a bank and asking for a franchise loan in Canada does not work , as the bank views a new franchise, as it does any other business frankly, as totally based on the 100% collateral and credit worthiness of you the borrow .

If that’s the case then, our clients ask, why have they heard that thousands of franchisees in Canada get bank financing? Good question! It’s simply that the majority of financing in Canada is done under a specialize program called the CSBF /BIL program, which is under the auspices of the government and administered by the banks. That key word is administered by the banks.
So what is the cost of that loan? In terms of a pure what is the interest rate? Question the answer is 3 over prime rate, which currently in Canada would bring the transaction to the 5 1/2% range. (As prime changes this rate might fluctuate).

But if you as a franchisee are looking for a business franchise loan and financing a franchise properly the other features of this specialized loan are even more compelling - they include a limited owner guarantee, a loan size of up to 350,000.00, and other enhancements. That cost, when financing a franchise in Canada is clearly the best deal in town if you accept that a franchise is a new business - which of course it is, but we acknowledge the franchise is of course built on a successful business model of the franchisor.

Remember also that the cost when financing a franchise in Canada is based on the amount you borrow - unfortunately it cant be 100% because business finance dictates it is both prudent and required that you put some of your own equity in the deal - the more you have invested personally the less financing cost you have, that’s understood of course .

In the U.S. We are told there are specialized tax strategies to take money out of RRSP type accounts without being taxed, to finance your business - that really doesn’t work in Canada and your cost of a business franchise loan will go up considerably when you add in the tax penalty bite of collapsing your savings vehicle.

So. in summary financing a franchise in Canada is achievable - however its specialized, and some of the programs utilized by franchisees are highly specialized to the industry . Finance your new business properly by speaking to an expert is strongly recommended - seek a Canadian business financing advisor who is experienced, credible, and trusted who will help you solve the cost dilemma of financing a franchise in Canada .

-


Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/business_franchise_loan_financing_a_franchise.html

Thursday, January 13, 2011

Looking for Business Financing methods? Tap into asset based lending in Canada Today – 1 2 3 You’re Saved!

There is one question we always seem to get from clients - ‘what are some business financing methods we might not be aware of?' ; and our answer is always the same : asset based financing lending is one of those alternatives that we can almost bet you have not heard of - and if you have heard the term we will bet a nickel that you aren’t fully aware of what it is or how it works.

Let’s examine asset based financing from the viewpoint of it being an alternative to a bank line of credit facility. Another way of describing this type of facility is to view it as the full service offering that is directly comparable to a Canadian chartered bank facility, commonly called an operating line of credit.

These types of facilities are of course not long term debt of term loan type scenarios. Can we put it any more simply than its your day to day business credit facility that facilitates payment to suppliers, employees, etc.

What we could call the ' full service ' asset based financing lending model is a facility that is usually a non bank financing arrangement with an independent finance firm that specializes in this type of facility .

It monetizes your current assets, which are typically receivables and inventory. However , there is often what we could describe as an upside kicker to the asset based line of credit because it can also easily margin, from a working capital perspective any unencumbered equipment and real estate that you have . Did you ever thing you could get working capital and cash flow financing and margining on equipment and real estate - we are pretty sure you didn't.

In discussing this financing alternative with clients we point out that the alternative to the full service type of facility (which is typically for larger firms) is an asset based financing lending facility that we call a working capital line of credit. It is generally under 250k and typically just finances receivables. Our favorite and in fact preferred type of facility is one in which your receivables are financed directly but you retain billing and collection control. More about that on another day!

So let’s get back to our asset based line of credit. What does it cost and how does it work, and, as business financing methods go, is it appropriate for your firm

Depending on the size of your facility pricing for asset based lines of credit can be very competitive to bank rates. Larger facilities take 30-45 days to fully set up properly. It should be no secret to the reader that a typical application would include a business credit application, financial statements, and aged asset lists of receivables and inventory.

How much can we get? Is our next most popular question from clients? The answer is lots. Asset based lending relies on the asset values, so typically receivables are margined at 90% and inventory, depending on your industry , can be margined from anywhere from 25-70% in our experience . Most firms could never get that financing on inventory from a bank.

So whats all the hoopla about this method of business financing. We can summarize it by saying its simply an alternative to bank financing when you cant meet bank criteria , its competitive if you have a solid asset base and business prospects , and it provides you with unlimited cash flow and working capital funding as your business grows . The size of the facility grows with your firm.

Confused? Hopefully not. Interested - hopefully so . Speak to a trusted , credible and experienced Canadian business financing advisor as to what business financing methods might alter your firms success and investigate asset based financing lending as a solid choice or alternative .
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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/asset_based_lending_business_financing_methods.html

Tuesday, January 11, 2011

Where’s the Cash Working Capital and Cash Flow Loans and Finance For Canadian Business

Read all about it! Read all about it! Isn’t that what the newspaper crier says? Today Canada's two largest business newspapers, remarkably co incidental, had similar headings - ' Canadian Business Revving Up ‘, and the other paper - ' Lenders open financing taps to smaller business ' .

We guess it must be true, because it’s in the paper, right? But there must be something wrong with our plumbing because our client’s taps don’t seem to be flowing with cash flow and working capital offers!

Lets looks at what we consider a real world look at some business financing and lending issues around cash working capital and cash flow loans and finance for Canada's small and medium businesses .

A focus on one of these articles was that it was cheaper for small businesses to get business financing in place. Clearly Canadian chartered banks have the lowest cost of funds as well as the best rates and terms for business financing - its just that on occasion you cant get the funding you need based on bank criteria . We have nothing, by the way, against those bank criteria, because they're lending out our savings to your business. But the hard core reality is that bank financing and looser financing terms, as stated in the article, don’t really jive in our opinion.

In fact many of our clients we talk to are looking for alternative solutions to cash working capital challenges. And they are pleasantly surprised to hear from us that some of those solutions , although they have never heard of them exist, and in fact are becoming more mainstream

So can we share some of those ' secret ' solutions that are available to you today . Heard of C I D, or ABL, or even financing your tax credits? Those solutions are available to Canadian business today. C I D is confidential invoice discounting, and ABL is asset based lending. We strong feel that ABL is the wave of the future when it comes to cash flow loans and finance for Canadian business. Where else in the world can you get working capital funding for inventory, A/R, and even cash flow margining of your unencumbered equipment. Nowhere else, we can assure you of that.

We are pleased to hear that the articles we referenced the fact that during the recent recession (it has ended, right?) Many firms in fact looked to ' other sources of financing ‘.

In many cases the Canadian business owner and financial manager intuitively knows they have a working capital solution need, they simply don’t know their alternatives. Business owners must look to help with their cash cycle and balance the investment they have in A/R and inventory with their creditor payables.

There are new alternative solutions to the funding of working capital. So who can provide you with the best information on cash working capital solutions? You could try your bartender or barber or hair stylist, but quite frankly why not consider an expert instead! Seek and speak to a trusted, credible and experienced Canadian business financing advisor who can ensure cash flow loans and finance solutions that make sense are available to your firm.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/cash_working_capital_cash_flow_loans_and_finance.html

Reasons for Leasing for Business - Why Equipment Financing Works!

Reasons... and facts. That’s what Canadian business owners are looking for when looking for equipment financing. And quite frankly leasing for business has never been more popular, and made more sense.

Let's examine some of those reasons and facts to ensure you are well informed when you are looking to acquire capital assets for your business. And by the way, capital assets sure is a broad term, because it covers technology , plant equipment, business equipment, rolling stock, even your corporate jet .. (We know ' you wish ...').

So why are hundreds of millions of dollars, probably billions of dollars leased in Canada every year under an equipment financing strategy? It all comes down to a common saying among leasing people, which is simply that you generate profits and sales by using assets, not owning or paying outright for them .

The good news about leasing for business is that the key word is flexibility - credit approvals are more flexible, cash flows can easily be structured to meet your needs, and various balance sheet and tax benefits accrue to companies who lease.

We find in talking to clients looking for innovative lease financing options that we can talk all we want about off balance sheet, tax benefits, depreciations strategies, etc - but, at the end of the day they are simply concerned with getting credit approval and conserving cash. Otherwise of course these assets must be purchased out of bank lines that have already been tightened by your bank.

When we talk to companies that are using effective equipment financing strategies we find, more often than not, that they are simply ahead of their competition in innovative assets that drive revenues and profits. That’s simply of course because there is no huge outlay of capital when acquiring these assets, which more likely than not are depreciating anyway.

Don’t forget also that taxes are paid as part of your monthly installment when are leasing for business assets - a classic working capital conservation strategy. The bottom line is that your firm can grow when you have the ability to conserve cash flow and use it for operating needs and further re investment.

It sometime is difficult for business owners to determine who the right leasing partner is. There are hundreds of firms, many are in fact not Canadian, and all firms have different credit, deal size, and interest rate policies related to how transactions are structured. If you are looking for a quick way to navigate the entire equipment financing marketplace in Canada speak to a trusted, credible and experienced Canadian business financing advisor who will assist you in completing a transaction that makes sense and achieves the approval and benefits your firm is looking for.
--

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/equipment_financing_leasing_for_business.html

Monday, January 10, 2011

How The Right Factoring Firms in Canada Can Provide Financing Factor Facilities Confidentially

You've heard about it - You suspect your competitors use it, you think it might work for you; it’s just that you don’t fully understand what it is! We're talking about factoring firms in Canada, and why financing factoring in the Canadian factor marketplace gains traction daily among small and medium sizes businesses all across Canada.

Let’s help you examine what this type of financing is, why it is grossly misunderstood by many business owners and financial managers, what it costs, and how it works. That’s a mouthful of information!

Financing factoring is an option you have to financing your business - it’s as simple as that. Clients are usually concerned about two things, how it works, and what does it cost?

Those are typical questions, in addition to wanting to understand the benefits of this type of Canadian business financing.
At its basic core the factor firm is a buyer of your receivables. The good news is that when you sell them you get immediate cash - we are talking same day cash. That brings to bear one of the largest misconceptions about this type of business financing, because the use of factoring firms in Canada you have eliminated the need to wait for the collection of your receivables. Typically these days clients are waiting anywhere from 30 ( you wish !) to 90 days, sometimes longer to collect their cash and generate cash flow and working capital back into their firm .

The cost of financing factoring in Canada generally is in the 1-3% per month range - while that initial information is often perceived as high to many clients the reality is they are spending that much, and more by carrying those receivables 90 days, and being further unable to utilize that cash to sell more and generate more profits.

So you can quickly see that with the right type of factor facility in Canada you have the ability to generate huge amounts of working capital and then in turn sell more, maintain relationships with suppliers on a better basis, and, as we said, create more profits, hopefully So that is what factoring is and why it can work for you.

But here's the biggest secret we can share - by working with the right factor firm or Canadian business financing expert and advisor you can actually create a facility that one ups your competition . That is because the factoring they are utilizing invoices the factor firm verifying billing and collecting with their clients. What you should actually be striving for is a confidential invoice financing facility that allows you to collect and bill your own receivables, with you in control, not the other factoring firms in Canada.

So, in summary, if you are carrying receivables, short on cash flow and working capital, financing factoring is clearly an option and solution. The optimal facility is the C I D - Confidential invoice discounting. Speak to a experienced, trusted, and credible Canadian business financing advisor who can assist you in putting together a facility that works.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/financing_factoring_factoring_firms_canada_factor.html

Sunday, January 9, 2011

How To Raise Money For Film Financing via Ontario and BC film grants and Tax Credits

Can your film financing (television and animation also by the way) via Ontario and BC film grants and tax credits be the final piece of your project financing puzzle. We'll let you decide but we can’t imagine you not entertaining any financing, that is non repayable, that might cover 30 -45% of your entire project budget.

In order to achieve financing success you need expert help and information on how the tax credit and film financing area works in Canada. Two of the most common regions for film, production, and therefore tax credits are Ontario and BC ( British Columbia ) , but not everyone is aware that pretty well every Canadian province, in conjunction with Revenue Canada ( for you Americans that’s our version of the IRS !) has a robust film tax credit program.

Only when you master the techniques and processes around film financing and the use of the generous tax credits will your project be properly financed - That’s of course unless you're a major studio, but that’s not the clients we're addressing here.

We should note also that once you develop a process, and have a proper team around that typically an entertainment accountant, a lawyer, and a production accountant) then you can pursue and replicate the same process of funding your projects via Ontario and BC film grants and tax credits for all future projects.

The film tax credits in effect ' bridge the gap ' between your vision of the project, its potential financial success, and your ability to fund and complete the project.

Film tax credits and film financing happens of course everywhere in the world. Where Canada excels is the fact that you have generally uniform process for the entire country and the program is well funded and generally very efficiently administered. It's one of the few times in our business careers where the line ' I'm from the government and here to help ‘makes actual sense!

Lets use Ontario as a quick example of how to raise the tax credit financing you need. The Ontario program is so efficient these days that the applications for financing are actually done online via the government body that administers and approves the tax credit certificates. However, before you get to that stage, as we noted earlier, you need to be in a position to have a proper budget in place that will reflect what the eligible spend is on the items that are being funded by the tax credit.

As a quick rule of thumb you can generally expect your budget to return approximately 35% of your labour expenditures for a production filmed or produced here in Ontario. The reality is that if you film outside of the Greater Toronto Area formulas are in place that further enhances the credits by an additional 10 per cent.

The additional great news we share with clients is that your tax credits are financeable. That dramatically changes a good deal into a great deal because you can receive loan financing on the tax credit either during production as you spend, or when completed and you have your final certificates in place . Naturally for your film tax credit to be financed you need to have a proper legal entity in place (commonly known as special purpose vehicles - SPV) and your tax returns and filings must be up to date.

Raising money for film financing involves 3 components, equity, debt and mezzanine, and tax credit financing. Let Ontario and BC film grants and tax credits be the final piece of your financing puzzle for your project in film, TV, and animation. Speak to a trusted, credible and experience Canadian business financing advisor in the film tax credit area to ensure you maximize this great finance strategy for your project.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/film_financing_ontario_bc_film_grants_tax_credits.html

Saturday, January 8, 2011

Your Company Qualifies For A sr ed tax credit financing - Can you factor sred? Yes you can!

Many companies in Canada taking advantage of the sred program (formally called the Scientific Research and Experimental Development) are surprised to find that they can in effect ' cash flow ' or 'monetize' that claim into the liquid gold business calls cash flow.

So, does sred financing make sense for your firm - by the way, we think it does... and how can you ensure you qualify? Let's ensure we cover off some of the basics around those issues in order for you to determine if sred finance makes sense for you.
If we go back to square one it all comes down to knowing what the program is, ensuring you qualify, and then having a claim to submit. SRED claims are submitted when you file your year end tax return.

If you have never filed a sred claim 2 key points immediately are a focus of discussion when we meet with clients - first of all you have to have the technical expertise to prepare a claim. Secondly, in the last year or so the government has altered the program in order to make submission more expeditious. You of course need to be aware of the new format guidelines, which in effect simplify your preparation and filing process.

In our opinion, and most agree we are quite sure, you want a sred consultant to prepare your claim. These are folks in private industry who specialize in preparing claims, and more often than not they have done work in your industry. We are quite sure we have your agreement than an expert in any industry is better than a rookie.
Technically your accountant could prepare you claim, but we're often surprised to hear clients tell us that their accountant was not even aware of the program!

In order to receive funds for your sred credit - and by the way these funds are non - repayable (yes you heard us correctly) you simply need to file a qualified claim.

Waiting for your refund is what sr Ed tax credit finance is all about. Sred financing is based on the premise that your firm could use the cash flow today, instead of waiting for weeks, months, or even a year in some cases.

So how do you factor, or discount, or cash flow, or monetize that sred claim. (All those terms mean the same thing). It’s a simply process; locate a specialist in Canadian business financing who can assist you in preparing a simply application that includes your sred claim and basic financial application info. Claims are generally financed at 70% loan to value, meaning the 30% is held back as a buffer. No payments are made on the financing and the final cheque from the government is netted against your advance.

In the meantime you can make use of those funds for any general corporate purpose.

So - do you qualify for a sred tax credit financing - if you have a claim you do? Should you consider a factor or finance scenario around your claim - that’s for you to decide and for us to suggest. And by the way, if you don’t need cash or working capital, then don’t finance the claim - but who is in that position these days?

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sr_ed_tax_credit_sred_financing_factor_sred.html