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.



Thursday, March 31, 2011

Is ABL lending And Banking the Fountain of Youth Of Business Financing ? Financing Via Asset Loan Lenders


We're all familiar with the story - searching the jungles to discover what may not exist - a secret or dream that might deliver on wealth or happiness.

What does this possibly have to do with ABL lending and banking in Canada?! Our point is simply that something you think may not have existed in terms of an all encompassing business loan financing arrangement in fact might exist - you just didn’t know where to find it.

Let's look at the hard facts - in 2008 and 2009 the Canadian business financing market went ' conservative ' and boy is that an understatement. Business financing reduced, companies such as yours hunkered down and just tried to exist, let alone expand and grow. Canadian banks emerged as the superstars of the Global financial marketplace - they didn’t go under... they remained profitable, they just did a lot less for many Canadian businesses, and in hindsight it’s hard not to understand why.

Could it have gotten any worse -actually yes, borrowing rates rose, many firms disappeared, and, at the core of our subject here, active lenders exited the Canadian market.

So was it all gloom and doom. You can make the call on that one, but the good news is that one form of business financing, ABL (Asset Based Lending) banking and lending become more valuable and more popular... in a way it become out business fountain of youth.

With the increased flexibility of abl financing in Canada came the financing that your business needed to grow. Essentially this type of financing margins assets at higher value, because abl lenders understand the true value of the asset - and if they don’t understand it they will take the time to understand the value those assets. (You might get a bill for that, but it will be worth it, we can assure you!).

We may have glossed over the true meaning and definition of abl loan financing in Canada. Simply speaking it’s a very clear formula based on the ongoing liquidation values of your receivables, inventory, and equipment, and you borrow everyday against those values. It’s a concept that is very easy to understand for most Canadian firms - especially when benchmarked against Canadian commercial banking facilities for small and medium sized companies in Canada.

So what have we got against banks? Absolutely nothing, in fact Canadian bank reputation is stellar globally. However, if you cant get prime based borrowing and if you are unable to meet covenants and ratios required , or if you are too ' small ' for such a facility then guess what - the fountain of youth, the secret to business wealth and happiness just might be abl lending and banking facilities .

True asset based facilities aren't ' loans' per say, you are just monetizing assets to create on going cash flow.

Interested? If your firm is growing rapidly, highly leveraged and unable to meet bank covenants, or is you just have curse of growing too quickly (?!) speak to a trusted, credible and experienced Canadian business financing advisor on ABL banking 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.7parkavenuefinancial.com/abl_lending_banking_lenders_loan_financing.html

Wednesday, March 30, 2011

Interested In Understanding Business Working Capital in Canada ? Cash Flow For Operational Needs


Interested in finding out why business working capital and cash flow challenges for operational needs are a challenge for small and medium sized businesses in Canada? We are pretty sure you are even more interested in some solutions to that challenge!

A March 2011 report out of the U.S. noted among other things that small and medium sized firms are still having huge challenges in raising the working capital they need - even though in many sectors business is back to ' booming ' again . As a Canadian business owner or financial manager you would like some solutions to get that cash flow booming again, we're sure.

For firms that are mature in age, have good assets and strong operational cash flow those challenges are limited. However, if your company is on the opposite side of that spectrum you're living in a ' business hell ' if we can use that term - at least if it isn’t hell its purgatory!

How can you identify the best, what we can call ' straight forward ' options for working capital and business cash flow solutions? We think the answer is simply understanding and getting a handle around the traditional ( or conventional ) Canadian business financing techniques , but, even more importantly, understanding newer solutions that are becoming more mainstream in acceptance everyday . Without the resources of an experienced business financing advisor you might not even have heard of some of these solutions, let alone having considered implementing them.

We're the first to agree that Canadian banks are lending again, rates are close to all time lows, and credit reins and collateral and covenants have slowly loosened. But again, small and medium sized businesses aren’t feeling it. Another recent March2011 survey, albeit U.S. based said most business owners still experience temporary or severe cash flow issues, forcing them to delay payments to suppliers, and delay spending on new assets for business growth.

In order to implement better, or newer working capital and cash flow business operational strategies your firm must understand how you are managing your finances now, what assets are available to monetize, and, often forgotten, you must have a handle of what future cash flow needs will be.

As we noted, traditional bank financing is alive and well in Canada. For those that can't leverage the amount of operational credit that they require a better understanding of ' new ' solutions is required. And we know you've been waiting for what those new solutions are!

More recent and increasing widely accepted methods of generating working capital include the following - asset based lending , working capital facilities that margin a/r and inventory as a combo , confidential invoice discounting , securitization, cash flow sub debt loans, purchase order and contract financing, as well as bridge loans on already owned equipment . Our favorite - asset based lending... but more about that one on another day.

Any of the above solutions will allow you get your cash flow and working capital under control. Speak to a trusted, credible an experienced Canadian business financing advisor. Reclaim your business cash and operational financing!

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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/working_capital_cash_operational_business.html

Tuesday, March 29, 2011

Cash Flow Restricting Your Growth? Let business Equipment Financing And Leasing Of Industrial Assets Do The Job


Can you count them? How many times have you felt your ability to grow your company with additional sales and profits was restricted by inability to obtain business equipment financing and leasing for industrial and other types of equipment? If you're one of the lucky ones that survived the 2008-2009 recession and your business is growing again (or surviving?!) let equipment financing and leasing move your business forward.

The scope of leasing for industrial and other types of business equipment is broad, and that’s an understatement. Canada's largest corporations utilize lease finance, and even small entrepreneurial start ups can utilize all the advantages of this type of Canadian business financing.

Most business owners and financial managers in Canada prefer certainty when it comes to business financing. Equipment financing and leasing brings that predictability. Why is that? Simply because if you have chosen your asset properly (we’ll leave that one up to you) and matched the asset with the right type of business equipment financing then you have just succeeded in closely matching the cost and cash outlays to the benefits you will receive from the asset - whether that be high end industrial equpment or the latest computer or telecom technology.

Again we come back to restrictions you face on acquiring those assets. And this time the evil doer is ' the budget ‘. In talking to clients about lease finance and their strategies they employ they are often stymied by the budget cycle. Again, this applies to every type of corporation, large and small, it’s just that the big boys probably have a bit better handle on the planning and documentation around a budget.

But does budgeting have to restrict your success. We don’t think so, and that’s why equipment leasing comes to your rescue. When your company budget doesn’t not allow for either the size of an asset or the timing of the acquisition to work the way you want it to then business equipment leasing should become the solution of choice.

Why? It doesn't get any simpler. You can acquire assets of a significantly higher size by focusing on monthly payment and not total expenditure, and there are tens of ways you can adjust payments to reflect beating that budget. Payments can be temporarily deferred, lowered in earlier term of the lease, and if you choose an operating lease then your asset doesn’t even get impacted by the budget cycle. That’s because the monthly lease payment is treated as an operating expense within your operating budget.

In summary, it’s a battle out there, and you shouldn’t let your competitors win the asset acquisition battle because your firm didn’t take advantage of the flexibility of business equpment financing. Whether your obstacle to innovation is cash flow, budget cycle, asset dollar value, etc we think we have shown that you now have the ' tool kit ' to combat the business growth challenges you face in acquiring assets.

Speak to a trusted, credible and experienced Canadian business financing advisor on lease strategies that will allow you to meet and achieve business financing goals.


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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/business_equipment_financing_leasing_industrial.html

Monday, March 28, 2011

The Secret Of Commercial AR Factoring And An Accounts Receivable Financing Loan In Canada


Mind your own business! That's what a Canadian business owner or financial manager would prefer to do when they are considering accounts receivable financing, aka a commercial ar factoring loan. AR is of course accounts receivable, your second most liquid asset next to cash. Oh and by the way, the good news is it’s not a loan, per se, more about that later. Unfortunately current practices don’t allow you to ‘mind that business ‘.

So is there a way your company can obtain all the advantages of factoring , receive a competitive financing rate, and at the same time implement what is in effect a confidential invoice discounting program ? There is. First let’s cover off some basics.

You know the drill already. Your client base and investment in accounts receivable is taking up a huge part of your working capital. Sales are growing, or you have some major new contracts and business, forcing your working capital needs to go up.

The strategy. It's of course what thousands of business in Canada are starting to consider everyday - factoring. (Also called commercial invoice discounting). If you were going to implement this strategy in the manner that your competitors currently are then you would sell your receivables as you generate them , obtaining immediate cash flow to generate more sales, more profit , and of course cover all those operating costs you need to run your business on a daily basis .

But wait a minute. As commercial ar factoring and ar financing stands now in Canada, utilizing the U.S. and European model, your clients must be notified that you have sold that receivable to the finance firm.

Is there a way to avoid that somewhat ' sticky ' process and embrace the theme of our shared information here, which is ' minding your own business ‘? There is. The secret we are sharing is the availability of ' C I D' which stands for confidential invoice discounting. This is clearly the accounts receivable financing of preference for Canadian business.

Let’s examine what just happened as you have implemented this program. You have a bankable, liquid asset, your receivable portfolio. You now have the ability to in effect ' monetize ' that investment into working capital and cash flow today.

The costs of factoring are always a concern or subject of discussion when we talk to clients. The cost is in the 1-3% range per month. However companies such as yours need to understand that you can often cut those costs in half by effectively using your new cash to generate immediate sales an profits, take advantage of supplier discounts, and purchase more effectively and ' smarter ' from valued key suppliers .

So how does our ' secret ‘, i.e. confidential invoice discounting (factoring) work? It could not be any simpler. You bill and collect your own invoices, still receiving funds for them as you generate them. C I D rates are the same as ' regular ' commercial ar factoring, yet you are now in control of the process. And remember, important for you to understand this whole process is not a ' loan ' as we mentioned, you are just monetizing assets and turning them into working capital as you need them.

Let’s recap - the strategy = generate cash! The tactic - C I D - Confidential invoice discounting. Do you qualify? We are pretty sure you do, so why not speak to a trusted, credible an experienced Canadian business financing advisor on this valuable working capital concept.
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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/commercial_ar_factoring_accounts_receivable_loan.html

Sunday, March 27, 2011

Breakthrough The Canadian Equipment leasing And Financing Barrier - Business Leasing Strategies That Work!


Its official - your company is on the road to recovery in the Canadian business landscape. So how can you use equipment leasing and financing as a new economy strategy? Let’s share some tools and strategies for Canadian business owners and managers, allowing you to maximize business leasing dollar benefits.

The economic havoc that wrought business financing tension in 2008-2009 appears behind us. However, the cost of, and access to credit remain two key issues in Canadian business financing.

Equipment leasing allows you plan carefully for growth. Think of all the uncertainties you have in either replacing or purchasing a new asset. Those key uncertainties are things such as cost of the asset, the obsolescence issue, concerns around asset acquisition negatively impacting your working capital, as well as competitive pressure.

Any of those issues might seem insurmountable if you didn’t have a business leasing alternative for asset acquisition.

Many companies in Canada have not thoroughly investigated the use of operating leases as a business leasing and financing strategy. This strategy alone can give you a triple weapon to beat the cost of assets, the cost of financing, and, as we noted, that pesky ' obsolescence ' issue.

So how does the owner of CFO implement such a strategy? We're the first to admit it works best on technology related assets, i.e. computers, telecom, etc. Let your Canadian equipment leasing company take the risk by your careful creation of an operating lease. This transaction is very powerful... why? .. simply because your payments are lower, your monthly rentals are fixed , the overall cost to finance a depreciating asset is less, and last, but not lease, it you who make the call at the end of the lease term on owning, returning, or extending your transaction !

It should be obvious to any business owner or CFO that you can’t break through and business financing barrier if you don’t know who you are dealing with. There are tens, hundreds actually of business leasing firms in Canada.

Want to waste a lot of your valuable time? If you do then don’t investigate the type and size and credit criteria of the lease firm you are dealing with. That’s not our recommendation however! What you want to do is ensure your asset and your financial situation is matched with a firm that perfectly suits your equipment leasing needs. So that can be a small ticket item, a complex technology strategy, or a used piece of heavy construction equipment. Bottom line; know you lessor re asset type, credit criteria, and flexibility re structuring.

Hers a simple breakthrough strategy - simply make a list of whats important to you in your leasing financing decision - key items might be capital conservation, payment flexibility, enhanced structuring , a la off balance sheet, etc . Any one of those items, properly completed, can save you thousands of dollars on a transaction.

Business leasing is back in demand! Your competitors are for sure utilizing business leasing. Your company is unique. So whether your reasons to finance are technological, financial, convenience related, or hard core economic - (i.e. diversifying your borrowing) don't dismiss your ability to achieve breakthrough financing via equipment leasing in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor for some of the best business financing advice you will ever receive on business leasing.

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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_leasing_business_leasing_financing.html

Friday, March 25, 2011

Secrets On How To Crack The Government Of Canada Small Business Loan Financing Program


Wouldn’t you agree a ' secret ' is something 'unknown to many others ‘... basically ' privileged information’? The essence of those two definitions involves our sharing of information on the Government of Canada Small Business Loan financing program. The bottom line... how could something so great in Canadian business be mis interpreted or not even heard of by so many ?!

Let's explore the mysteries surrounding the program and prove to you why a little expert knowledge can help you 'crack the code ' on the best loan financing program for Canadian Small Business.

And for a good start, what's ' SMALL ‘. The program actually defines small, so if you are in business and have revenues under 5 Million dollars then you are eligible, and if you are a start up or a new business then your revenue/sales projection should be carefully pointed to being under that amount . P.S. You wont be punished if you over achieve on revenues at some later point in times - Success is allowed!

You can call it a ' secret ' in our case, but its probably better call ' misinformation ' with respect to what the government of Canada Small Business Loan covers. 3 things and only three things. Those three are equipment, leasehold improvements and real estate. (Yes, one of our ' secrets ' we're sharing is that it is generally not known that you can acquire real estate with a government loan under the program.

Is the program popular? Well, you be the judge, as over 950 Million (yes that’s million) dollars of financing went into this program last year.

A recent major headline in Canada's financial press referred to the program as being highly criticized for having a lot of ' messy red tape ' and high costs. Want to know a secret? If you carefully follow a detailed simple process your transaction in our opinion will hardly be ' messy ‘. And, oh yes, about those costs. the rate on the program is 3% over prime . That would put you under 6% in the current early 2011 interest rate environment. If a Canadian business owner thinks he can get financing , with a limited personal guarantee for items such as leaseholds , software, etc at a better rate than that we would like to meet that person .

The program has been around a long time , so many people mistakenly believe the cap on the small business loan financing program is 250,000.00 - guess what, it was raised to 350k during the most recent recession, and our indications are that it will stay at that amount .

It's no secret of course that most business loans in Canada are guaranteed by the owners of the business. Let’s also crack the secret code on that one, since you will be pleasantly surprised to know that owners need only provide a 25% personal guarantee on the loan. That's a good thing!

And finally, the secret code # is 7 4 4 1. We repeat 7 4 4 1. That’s the number (7,441) of loans made in Canada last year under the small business loan financing program. Would you like to be 7442? Speak to a trusted, credible and experienced Canadian business financing advisor on sourcing valuable funds under this program.

Canadian Franchise Finance Isn’t What You Think! Financing a Franchise Business Properly


Misconceptions. They are all over the place when it comes to financing a franchise business successfully, and properly. Let's wade into some of the key factors that allow you as an entrepreneur in the Canadian franchise finance industry to complete a transaction that meets your business and personal goals.

As noted, there is a lot of poor information out there about the challenges of financing a franchise in Canada. Let's focus in on whats important, whats achievable, and what you don’t have to worry about.

We can relate to clients who are making a significant life change and personal financial investment to purchase a franchise. You have access to some funds but the challenge of financing their new venture properly seems somewhat daunting.

Is there financial assistance in completing a franchise properly? Absolutely, but you must be prepared in every sense of the word.

Step one is often simply to properly identify the total amount of borrowing you need. Unfortunately we meet with some franchisees that have completed a franchise closing, only to find they are quickly running out of working capital to run their business on an ongoing basis. So close, yet so far.

The costs to finance a franchise involve what we call the soft costs to set up your business; they typically include franchise fees and professional fees such as those for an accountant, lawyer, etc. In our experience it makes strong sense for the owner to finance those soft costs themselves, leaving the hard assets and working capital for the franchise loan itself.

Here's something that surprises clients, as it appears to be a contradiction in terms. Canadian business financing itself is a challenge, but franchise finance is not! That is because they are some excellent programs that focus specifically on financing a franchise business. If done properly, and don’t quote us on this, it’s almost a ' slam dunk! A huge and we mean huge portion of all franchises in Canada are financed by a guy named Bill.

So who is Bill? Actually we have spelled his name wrong, because B I L is the acronym for the Government federal loan program that typically finances most of the franchises in Canada.

So you thought franchise financing under the BIL might be difficult or onerous. If properly presented and prepared you have just been approved for , bar none, the best small business financing program in Canada - great terms of 5-7 years, limited personal guarantees, and , are you ready, great rates and structures on the financing itself.

Is financing a franchise business easy or hard? Our simple answer to clients on that is that if you are prepared its easy, if not, you are guaranteed to fail.

Key elements of being prepared a business plan and cash flow that demonstrates your experience, the business potential, and, what the lender wants to see, cash flow to show repayment of the debt.

OPM doesn’t work in Canada almost anywhere in Canadian business financing. OPM is other peoples money, simply signifying that your own investment must be reasonable and shared with the loan investment to represent the full financing. To put is even more simply, you need a reasonable down payment. Franchisees with poor or derogatory personal credit histories need not apply in our opinion. Why? Because the lender views a franchise business in the context of how you have managed your own personal affairs.

So is there a bottom line on your quest for Canadian franchise finance success. Yes, and its pretty simple - avail yourselves of financing that is geared toward this type of business , be prepared from a presentation perspective , and commit a reasonable amount of your own funds to the transaction, sharing the risk with the loan provider .
Speak to a trusted, credible and experience Canadian business financing advisor on moving forward successfully, avoiding unnecessary surprises, and allowing you to finance the franchise dream successfully.

Thursday, March 24, 2011

Canadian ABL Lending vs. Bank Loans - Which Offers The Best Financing Facility ?


Your mission, should you choose to accept it, is to determine the difference between abl lending in the Canadian marketplace vs. similar business financing loans offered by chartered banks .

A significant amount of confusion exists in the Canadian business financing arena around the definition and use of ABL lending. In the context that we are talking about we're focusing on a comprehensive business financing credit arrangement that provides you with a total borrowing facility based on primarily receivables and inventory, but also equipment and real estate when that comes into play .

There are many subsets of abl lending in Canada. The two dominant factors that play a role in theses subsets are size of facility, and single focus financing, such as receivables only. Additional the overall credit quality of your firm (i.e. good, bad and ugly) ultimately drives what type of facility you choose/obtain.

Can anyone raise their hand and answer why abl loans (by the way they are not loans per se) are deemed by many to be the savior of Canadian business financing. We sure can - its because they have the simply ability to offer financing when traditional bank financing is not available ,and, even to a stronger point, abl loans don’t discriminate when it comes to size of the facility . Generally these facilities range from 250k on the small end to tens of millions of dollars at the high end. Oh, and by the way, many of Canada's largest corporations use this type of financing, unbeknownst to the average follower of Canadian business financing.

So again, whats better for your firm ? We have got nothing against traditional bank operating loans, they have served Canada well for a hundred years, however , they can be restrictive when it comes to size of facility, renewals of your facility on different terms, and , most importantly limiting on what can be financed and for how much .

Quick example based on a real world scenario. Manufacturing company 'A' has a bank financing operating facility that margins their receivables to 75% of total value, and inventory to a cap of, let’s say 750k. However, manufacturing company 'A' is growing quickly, requires additional inventory, and has receivable growth commensurate with sales growth. The challenge in a traditional banking arrangement is that the company is restricted in ability to grow commensurate with their working capital needs .Would banks step in. Maybe, possibly, who knows ?

However, we can almost guarantee this same type of problem or challenge our company 'A' is facing would be met head on in an ABL lending scenario. Why , simply because abl financing is based on assets, so as the firms inventory and receivable investment grows so does the facility, pretty well automatically .

Many Canadian firms that are smaller and medium in size unfortunately don’t qualify for what we call a true pure play ABL, simply based on deal economics , size of facility, and asset categories. Does it end there?

Definitely not, as working capital facilities, mini ABL’’s we could call them, are available that finance a combo of A/R and inventory, accounts receivable only (typically called factoring financing), with potential to add on purchase order financing when that makes sense. Our mini ABL’’s, aka working capital facilities are priced significantly higher that true asset based lines of credit, but offer the same flexibility and access to capital .

So, is there a bottom line? The old saying ' the trend is your friend ' is applicable - more and more firms are investigating abl lending and benchmarking it against bank loans. Do not, we repeat, do not investigate this type of financing if you have all the business credit you need and have no challenges in working capital financing and business growth! If that’s not you, speak to a trusted, credible and experienced Canadian business financing advisor who can help you benchmark abl loans vs. bank financing facility.

Wednesday, March 23, 2011

Surviving a Working Capital Cash Crisis – Real World Solutions & Techniques


The alternative to surviving a working capital cash crunch, temporary or permanent is of course not surviving it and losing control of your business from a financial perspective. Let's examine real world (we like those the best - the academic guys are very nice though) techniques and solutions to cash flow challenges.

You probably know you have a working capital problem; it’s the turnaround strategy to that problem that is challenging. When you think about it your constant cash flow challenge is in fact the most obvious sign that you need a survival plan.

Many business owners also equate growth and profits and cash flow on the same terms, in reality they are all VERY different! To be fair to the Canadian business owner sometimes the factors affecting your working capital cash are external and out of your control, however they still could lead you to insolvency of some sort.

Question - would you as a business owner ever consider your bank operating line of credit (assuming you have one?) as ' dangerous'? More traditional bank lines give you an advance against your receivables and inventory, those two most liquid assets after cash. If you are committed to a bank facility you have a pre sent borrowing limit, it’s as simple as that. So if your business has good operating performance, is profitable, and you are expanding or growing carefully all that works. So how could a bank facility precipitate a working capital crisis? Simply because if your business either shrinks, or grows too quickly you are locked into pre set borrowing power. Your receivables and inventory go down, or go up if you're lucky enough to be exploding with growth, but your credit facility is still the same!

We never want to be accused of just reminding your about the crisis, we'd rather provide solutions and techniques to eliminate the working capital crunch.

So let’s address some techniques and solutions for cash flow survival. These focus around accounts receivable and inventory. Think about it, if you have A/R and inventory, these amounts are one step away from liquidity. So how do you monetize these assets on an on going basis, whether they going up or down?

In Canada the most logical solutions to restoring your cash flow normalcy are the following - asset based lending, a working capital facility, and combinations of receivable and inventory and purchase order or contract financing.

True asset based lending facilities are typically for larger facilities of several million dollars or more - they have the ability to double, if not triple your access to working capital. How do they do that? Simply because they margin on an ongoing basis all your A/R and inventory at very high margin rates, and the facility grows as those two asset categories grow. They are the ' best bet ' for surviving a working capital crunch.

Small and medium size firms should look toward working capital facilities that combine A/R and inventory lending, have no fixed upper limit, but usually come with higher financing and borrowing costs.

Finally, the average business owner and financial manager may not even be aware that contracts and large ' one of ' can be financed and inventory financing programs can be implemented on a stand alone basis.

Surviving the working capital cash crunch comes with short term solutions as we have noted, that provide immediate relief; as well.. owners can consider long term strategies such as working capital cash term loans and sale leaseback of equipment or property. Speak to a trusted, credible and experienced Canadian business financing advisor for advice solutions and techniques for cash flow survival.

Tuesday, March 22, 2011

5 Dangers of Financing Equipment - From Technology to Machinery - Avoid These Mistakes With your finance company or leasing firm.


You've seen the sign - it reads ' Danger Ahead ' !No we're not talking about a curve in the road but rather discussing 5 key areas where Canadian Business makes thousands ( or millions ?) of dollars in poor judgment around critical areas of financing equipment via a third party finance company - and our discussion covers all assets from machinery to technology .

Let's review 5 key dangers areas in equipment financing in Canada and provide you with solid real world tips on how to successfully navigate these areas to better enhance your company’s ability to maximize on lease finance company benefits.

Item 1 - Structure - Lease financing is all about structure. Unfortunately most clients we deal with only always focus on 1 of the 5 elements of a lease transaction. (By the way, those are: term of lease, lender interest rate, value of transaction, payment, and obligation at end of term)

Let's use a quick example - we'll take a sample 100,000$ transaction. On a 3 year capital lease to own scenario your monthly payment at an assumed rate of 8% is 3112$. However, if you chose an operating lease (i.e. use equipment and not own it) your payment would come in at around 2490$/mo. And if you took our first example, and either were required, or voluntarily put down 10% the monthly payment is now 2801$. Same deal, different payments. Which one is best? That is only for you to decide based upon your unique asset acquisition situation.

So interesting calcs, but what’s our point you say? Simply that by understanding how the finance company utilizes structure to provide you with a ' monthly payment ' can arm you with knowledge that will ultimately translate into a payment scenario that works for your firm. Bottom line - understand how the lender views and utilizes the five elements of your final lease calculation.

Danger Item # 2- Pricing! We suppose that the late famous Vince Lombardi might say ' Lease pricing isn’t everything, it’s the only thing!' Sorry Vince, we couldn’t disagree with you more. Your ability to match the right term of the lease with the right finance company and type of lease you choose (there are several) can pay for itself many times over . Its now always about rate and pricing because if it was always about price we would all be driving low end compact cars - many of us dont , because we have financial options and alternatives . And by the way, its a competitive market , so by positioning your firms credit quality properly you will always receive a competitive rate .

Danger - Item 3- Credit approval . Most clients simply aren’t aware of how to position their financials properly in financing equipment . Whether you are acquiring heavy machinery, construction equipment, or high end software applications you need to understand what drives credit approval . Those factors are the asset you are financing, your historical cash flow, your current and sustainable cash flow, and your ability to work with your finance company to structure a deal via down payments, outside collateral, etc that make the transaction a win win for yourself and the finance company .

Danger - Item # 4- Conditions . Its all about the fine print, but many customers don't read the fine print, As a result they are subject to thousands of dollars in misc admin fees, renewal fees, possible appraisal requirements, and most importantly early pay or termination fees . Ask your finance company or Canadian business financing advisor to ensure you understand who is paying what .

Item # 5- Our last danger point ! What is it ? Simply that financing equipment is great, but in many cases are you sure you understand all your alternatives to this type of financing . They might include an asset based loan, or even a temporary bridge loan on the asset .

In summary, financing equipment in Canada occurs everyday, from assets from 5k to 50 Million dollars . Understand the hot points of what a finance company focuses on when they are leasing machinery , business equipment, or any type of business asset you need to acquire . Unsure of that Danger Sign in the road ahead ? Speak to a trusted, credible and experienced Canadian business financing advisor for navigational assistance!

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Stan Prokop is founder 7 Park Avenue Financial ; see

http://www.7parkavenuefinancial.com
Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 6 year old firm has completed in excess of 45 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:

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

Monday, March 21, 2011

Canadian Business To Business Factoring Stripped Down – Receivables Cash Flow For Your Accounts


What's our goal here ? It's to explain the art, and science of business to business factoring so your firm can understand the benefits, costs, and ' how to ' of receivables financing for your commercial accounts . (Commercial, because in general consumer receivables can’t be financed in this manner - see .. you have learned something already!).

So where are you in the pack? We think we know already, you are either growing quickly, or running into all sorts of obstacles when it comes to cash flow and working capital financing. Is it possible to actually finally manage that situation successfully? One of a number of possible answers is the cash flowing of your receivables - which can be facilitated by the way on a one of, periodic, or on going full time basis. Bottom line, your firm has options.

So what does business use receivables factoring for ? - its pretty obvious - the general day to day business obligations you have with suppliers re your payables, any loan or lease payments you need to make, admin and salaries, etc.

The reality, (hopefully) is that your ongoing working capital needs fluctuate, and that you are not in constant crisis mode. We are the first to admin that with the recent recession every small and medium sized business in Canada probably felt, to some degree, a tightening of business credit. Suffice to say they looked for alternate or new innovative solutions for business financing.

One of these solutions is business to business factoring, which is the sale of your receivables for cash. It sounds so simply, that’s why we are hoping to convey the ' stripped down' explanation of this type of financing, while at the same time warning clients where some of the complexity and risk lies.

Receivables, your commercial accounts tended historically to be paid in commercial environments in 30 days - these days 60 and 90 days are common occurrences. Your ability to smooth out the cash flow ultimately will reflect in your overall business financing success.

Let's focus in on our core asset, your A/R. Go to any balance sheet and receivables will make up a very large portion of your ' most near liquid ' asset. Your ability to monetize that asset on an ongoing basis creates working capital.

Business owners need to consider that their ability to monetize cash through receivables factoring in essence can become a competitive tool, allowing you to penetrate markets, and generate more sales and profits at the expense of your creditors.

Business to business factoring has been around for 100 years, if not more. Why is it more popular today? The simple ' stripped down ‘reason it is easier to obtain than bank credit, and can often be fully functional in your company within a couple weeks.

Why do business owners like and utilize A/R financing? - simply because it has limited focus on personal covenants of the owners, other asset collateral is not required, and under the right circumstances your customers and suppliers aren’t even aware of how your firm has suddenly become flush with cash .

So that’s all the upside, is there any downside? Only if you don't know what you are doing !You need to focus on what types of business to business factoring is out there, what are the costs ( they vary from 1-3%/month) and if your receivables partner has the flexibility and straight forward processes to accommodate your day to day activity . Speak to a trusted, credible and experienced Canadian business financing advisor to ensure our ' stripped down ‘version of business factoring meets your business and cash flow goals.

-






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/business_to_business_factoring__receivables.html

Sunday, March 20, 2011

Why Canadian Lease Finance Is ‘ Business Appropriate ‘ – Use Equipment Leasing Companies To Acquire Your Business Assets


Canadian business owners and financial managers constantly search for the right type of financing for their business. Lease finance, the core business of equipment leasing companies in Canada can be a powerful tool in acquiring business assets and managing your capital.

Leasing is often confused with a loan , it is of course ' not ' a loan but a process in which your lease firm partner buys for you, and owns the equipment , ' leasing ' it back to you at a pre agreed upon rate, i.e. the monthly payment on which clients are so fixated!

The ability for you to both understand, and , yes, manage that whole process makes the difference in how some of the powerful advantages of lease finance accrue towards your firm, not the leasing company . (Naturally we respect the right of equipment leasing companies to earn a reasonable profit - we just want to keep it reasonable!)

So why, and perhaps ' when ' is equipment financing appropriate for your company. The good news is that whether your firm is a pre revenue start up, or a Financial Post top 100 firm equipment finance is a powerful strategy. its one area of business where size doesn’t count ! .. Every type of firm benefits.

Hundreds of millions of dollars of business equipment assets are leased each year. Lease decisions are made on a variety of criteria - in the case of a smaller firm the personal credit worthiness of the owner is often a key factor. In the case of a larger firm historical and future sustainable cash flow are analyzed.

Most Canadian business owners often confuse, for lack of a better word, leasing companies with banks. Some of the Canadian chartered banks do have full fledged lease finance divisions - credit criteria and deal size (i.e. large!) are all a part of bank leasing. However, the hundreds of firms that are independent and focus solely on equipment financing in general or specialized market niches are very aggressive and want your business.

Time and time again independent finance firms can approve your deal faster, and be more flexible with structuring criteria attuned to your business model and its challenges - example : seasonal cash flow, special assets, etc .

Equipment lease finance is ' business appropriate ' because it is a total solution form of financing. It will often include a lot of what the industry calls the ' soft costs' in an asset acquisition - i.e. installation warranty, delivery, training, etc.

Yes when the accountants attack a lease versus buy schedule it may often seem that equpment leasing companies are a more ' expensive ' solution, but the ability to diversify your credit lenders , achieve prompt and 100% financing, and conserve capital via creative payment structuring is in our opinion a small price to pay for a cheaper bank type term loan . And don't forget, whether its 5k, or 5000k lease finance accommodates any acquisition.

So in summary, is lease finance ' business appropriate ' for your firm - we think we've shown it is. Confused about your next steps - talk to an independent Canadian business financing advisor who has credibility and experience. Maximize the benefits of equipment leasing with one thing in mind, your firms success.

Saturday, March 19, 2011

Dear Abby - Can I Really Use The Canadian Film Tax Credits (credit ) For 30 - 45% Of My Film Finance Projects ? Signed - 'Anxious '


Dear Anxious - Look northward - to Canada that is, and you'll find that with all the turbulence in U.S. film finance as it relates to tax credits that the Canadian tax credits as they relate to film televison and digital animation will provide you with a tremendous sense of relief. Often the Canadian tax credits can finance anywhere from 30 - 45% of your entire project (sometimes more) based on proper certification of your credit and a solid finance plan completed by yourself as producer.

Ontario, British Columbia, and Quebec have historically been the dominant geographies for film, TV and animation production in Canada - but tax credits are available in all provinces. On many occasions the geography that is best suited to your project is often the most sensible with respect to that provinces tax credit program.

It comes as now surprise to anyone in the industry that film finance is a journey. The challenge is maximizing the true value of your project via a potential theatrical release, and of course the pre requisite DVD, downloads, and broadcast and international rights. All of those will create your future revenue streams, but unfortunately won’t get you the cash flow you need today.

We’re assuming you are the owner of a Canadian project in our aforementioned genres of movies, TV, and digital media. There are what we can call 4 pillars of financing your project. They are grants, debt, equity, and of course our favorite - the film finance tax credit sponsored by the combination of federal and provincial government.

We're going to have to let you take care of grants, debt, and equity - but, and its good news, the Canadian tax credits on your project can cover anywhere from 30-45% of your project. In many cases even a higher amount is available, which comes into play due to certain factors such as shooting or production being held farther away from major centers such as Toronto, Vancouver, Montreal, etc .

The enhanced tax credits come back to you as a cheque - a true non repayable tax credit. The add on good news is that your film tax credit can be monetized or cash flowed, thereby securing automatically a very large percentage of your budget. The government in Canada supports the program strongly; having determined it’s a major overall economic benefit in employment, tax generation, and culture benefits. Bottom line - it’s a direct cash subsidy to your project.

In order to maximize your film finance utilizing the Canadian tax credits you simply need to ensure you have a proper production budget and finance plan. An experienced entertainment tax accountant will help you maximize the total amount of funds applied for in your credit. You will want to ensure you have valid title to your project, and that you have a properly legal entity set up to capture all the revenue and expenses of your project.

A special point system around any Canadian producers and key personnel will further enhance the total dollars you receive. There is data to suggest that 80% of the films that leave the U.S. for production in other geographies end up in Canada.

Your Canadian special purpose vehicle for your project must be Canadian owned, and pay special attention to the points system for creative positions such as director, screenwriter, etc.

So in summary dear ' Anxious ' you can definitely use Canadian tax credits as a key part of your finance plan. Applications can even be made online these days!

-


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_tax_credits_film_finance_film_tax_credit.html


Friday, March 18, 2011

Financing Your Franchise in Canada - A Winning Formula For Funding Via Franchising Finance Loans


Looking for franchise financing ? The dictionary defines formula as ' a rule or method of doing something ‘. We'll let Charlie Sheen define his version of ' Winning ' for you... but in our case its identifying for new franchisees the best methods of obtaining franchise financing and finance loans for the funding of their new business . Let's get started!

Second challenge after picking your franchise - we are assuming you have already done that, is determining how you will finance it. The Canadian landscape differs significantly from that of the U.S. experience; although we can assure clients that the franchise industry as a whole in Canada is doing very well.

Many franchisees often are concerned about the need and requirement for ' collateral ‘on a franchise loan. That is partly because they view franchise finance in the same manner as they would view a traditional loan application. Wrong! The reality is that our formula calls for no collateral requirement.

The majority of franchises in Canada are funded in two manners; they are the true secret to the winning formula we are sharing. The first and most popular method is taking advantage, (properly, and we'll come back to the term properly) of a specialized government program known as the CSBF/BIL program. Subsidized and ' managed' by a department of government in Canada known as INDUSTRY CANADA the program is the driver behind our winning formula.

Why is the BIL/CSBF loan so appropriate for financing for franchise? Consider this, when you started reading our article you probably thought that you need outside collateral , a huge down payment, and potentially outside collateral to get your ' franchise loan '. Nothing is farther from the truth.

Many franchise experts claim you need persistence and creativity to get a franchise loan financed in Canada. We disagree, you just need an expert and some hard work around satisfying the requirements of the loan program we have identified.

Those requirements include some very common sense things such as a reasonable personal credit history, a positive personal net worth, and a business plan that outlines your experience and expectations of financial success for the franchise funding. This typically includes your estimate of sales, expenses, profits, and, oh yes, cash flow that will repay your loan.

We also point out to clients that there are some other mechanisms we can ' add on ' to the BIL loan to enhance the financial proposal. They are equpment financing or leasing in some cases where hard assets are being acquired, as well as potentially a vendor take back if you are buying an existing franchise from a current franchisee.

Our formula for franchise success could not be more simple - identify your franchise, work with a Canadian business financing expert to maximize your ability to close a BIL loan in a short amount of time. Your package will include your business plan, background experience, and a real focus on how the loan will be repaid. If you need add on financing to make your transaction work consider equipment financing for some assets in the business or a term working capital loan that might compliment the entire package.

Simple. Relatively speaking yes. Speak to a Canadian financing expert on creating a short timeline to your success via our winning formula.

-

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_finance_loans_funding.html

Thursday, March 17, 2011

Turning Canadian Business Equipment financing Challenges Into Opportunities - Leasing Finance Works!


Over the last year or so business financing availability has declined for many firms. Let's examine how one strategy, business equipment financing - can be turned into an opportunity for your firm to succeed. Leasing finance works and we'll show you how with valuable inside tips.

How many options does your firm have when it acquires new equipment? To our way of thinking, only three - you purchase it, you lease it, or you arrange for term loan financing. The math around leasing finance often shows you it might be marginally more expensive than outright purchase. That’s because more financially astute firms have the ability, and do, to run extensive lease versus buy scenarios.

So why would you typically want to choose a financing option such as business equipment financing via a lease if it turns our it’s a bit more expensive.

We think the compelling reasons to utilize lease financing revolve around some very important ' real world ' issues such as quick access to credit, conserving operating working capital, accounting issues such as keeping the asset potentially off your balance sheet , and , getting down to brass tacks .. You as a user don’t want to end up owning a ' boat anchor ' of an asset that is still on your books but has little use or very little economic and financial value.

If your time is at a premium, and which business owners time is not, then you will surely be pleasantly surprised that the life cycle of acquiring your asset and financing it is much short via an equipment financing solution.

We have already shown you that financing options are limited, so why not choose the easiest and quickest route to approval - which more often than not is business equipment financing. The majority of approvals can be arranged within a week or so if you have a basic package that includes the asset quote or descriptions, your financials, and some basic business overview material on your firm and industry.

Many times the business owners challenge is what to do with equipment at the end of the lease - a lot of things can change in 3 or 5 years, which are the most typical lease terms. (By the way, it’s not unusual for some assets to be financed via leasing finance over 7 - 10 years; but you'll need to demonstrate company viability and asset value at end of term).

But back to that end of lease scenario - think of all the challenges - which might include: do you want to own the equipment, will you choose to return it, and will the asset be required for some indefinite time at the end of the lease...? Etc. All of those are unknowns, or challenges to your business financing. Yet leasing finance solves all of those - a carefully constructed operating lease can give allow you to face all three of the above challenges head on, and be in control of your asset destiny.

In summary - all business financing tends to be a challenge. In some cases of asset acquisition the challenge is layered with elements of risk and a lot of the unknown. Speak to a trusted, credible an experienced business financing advisor on how you can turn asset acquisition challenges into controlled opportunities for growth, asset management, and profit.

-


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/leasing_finance_business_equipment_financing.html

ABL Loans Are The Newest Trend in Canadian Asset Finance – Why Lenders Offer This Revolver For Asset Finance


Let's get right to the point. Are you not surprised that many Canadian business owners and financial managers are unaware of the importance that ABL loans via abl lenders play in the asset finance arena in Canada. Are you not even surprised that this type of loan financing (actually it’s not a loan - more on that later), called a ' revolver ' competes with Canadian chartered banking facilities on a day to day basis, and wins!?

Part of the confusion , misconceptions and mis information around this type of financing actually comes from the name and terms around the ABL revolver, which can ,and do mean different things to different people .

In the pure sense and most relevant meaning of the term in Canadian asset finance the ABL facility provides a comprehensive asset financing or monetizing of current ( and in some cases ) fixed assets which allow a company to significantly enhance their working capital facilities . This type of facility competes head on with Canadian charted bank facilities.

The asset finance lenders in Canada have recently gained significant traction. We feel the primary reason is simply that their facilities offered enhanced borrowing with a focus on assets, unlike comparable chartered bank facilities which come with a stringent requirement of clean balance sheets, profitability, ability to maintain ratios and covenants, and in many cases requiring outside collateral.

The 2008 and 2009 global recession enhanced the viability and visibility around ABL loans. Banks all over North America pulled back on commercial lines of credit and revolver finance - leaving thousands of companies with reduced, restricted, and in some cases no borrowing or operating facilities.

Most Canadian business owners and financial managers are simply not aware of who the ABL asset finance lender is. Typically they are smaller boutique firms, often subsidiaries of major U.S. corporations and banks .Their teams are small, highly focused on one thing ( monetizing assets for cash flow and working capital !) and offer facilities anywhere from 250k to hundreds of millions of dollars .

Many Canadian companies are also not aware that several of the Canadian charted banks have created asset finance lenders within their bank, and the ultimate irony is that when a loan is called by a chartered bank a competing division within the bank can often rescue the company. We'll let you mull that one over!

As we noted facilities are available for any amount over 250k but the pure play ABL revolver typically comes in at 3 to 5 Million dollars as an entry point. Rates are often competitive to Canadian banks, and small firms can pay a significant premium in financing charges , the offset being able to access working capital to facilitate growth and profits,

In summary, every business owner or financial manager concerned with operating finance should investigate and consider an ABL solution. Normal banking criteria does not apply and you have the ability to grow, restructure, and in some cases easily acquire a competitor using this finance strategy. You consider your firm unique and different, so investigate a new and unique type of business financing. Confused? Hopefully not. Interested? Speak to a Canadian business financing advisor on ABL loans 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.7parkavenuefinancial.com/abl_loans_lenders_revolver_asset_finance.html

Wednesday, March 16, 2011

Guess What Your Business Needs Today ? Examine Working Capital and Small Business Finance Loan / Loans Options


Just picture your firm having access to all the working capital you need. Seem impossible? Not really... if you have a solid understanding of your options and your firms capability of qualifying or executing on those options.

Whether you're the largest corporation in Canada or a small new start up (and everything in between) your business needs working capital. In Canada small business financing loans and financing arraignments for working capital are limited to a handful of possibilities - but being aware of what they are and qualifying for them could be the solution to your constant focus on cash flow via some sort of working capital loan.

It is probably easier than you think to ensure you are addressing the cash flow challenge correctly - where it gets somewhat ' thorny ' is matching a solution to the problem or locating an expert that can provide you with the business financing assistance you need .

Two key elements of your first step working capital assessment are your gross margins and your turnover. That’s the big problem we have with text book / academic solutions to working capital - they point you to the text book calculation - give you a formula which essentially has you subtracting current liabilities form current assets, and voila ! the inference is you have working capital . However, our clients have never paid a supplier or completed a company payroll with a ratio!

To properly assess your working capital needs focus on understanding your turnover - how much inventory do you carry, what are the days outstanding in inventory, and as importantly, or more importantly, are your receivables turning over . Have you realized that for many firms 80% or so of the total of all the business assets you have are tied up in A/R, inventory, and, on the other size of the balance sheet let’s not forget payables.

So can you have financial success based on your new found knowledge and analysis of your cash flow and asset turnover. We think you can.

Canadian business financing solutions to small business finance loans really revolve around a couple viable solutions. Typically, in our experience Canadian chartered banks cant satisfy your business working capital needs - if only for the reason that they rarely finance inventory and require significant merit in your overall financials, profitability, external collateral, personal credit worthiness, etc .

So, where do you go from there? The other solutions are very viable and can take you to a potential 100% turn around in cash flow - they include working capital financing as a bundled line of credit on a/r and inventory via an independent finance company .

For firms that are larger we believe the ultimate tool is an asset based line o f credit that provides high leverage margining on all you business assets. Other more esoteric solutions, but still very viable although somewhat misunderstood are securitization, and purchase order financing of new contracts and orders. (Your suppliers are paid directly for the orders you have in hand - what could be better than that?)

Finally, coming up the road at lightening speed is factoring and invoice discounting. We mention them lastly but they are probably the most popular method, gaining traction everyday. Our favorite is confidential invoice financing, allowing you to control your financing .

So there you have it. You have identified new ways to determine the need; we have outlined 4 or 5 solutions that will take the guess work out of working capital. These loan and financing options are available with a bit of research , and , if you choose , speak to a Canadian business financing advisor who can provide you with timely and valuable assistance in your cash flow needs .

-


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/working_capital_small_business_finance_loan_loans.html




Tuesday, March 15, 2011

SR ED Tax Credits Are Under Attack! Financing SR ED claims Is Business As Usual – How SRED Finance Works

Whew! It's getting ugly out there! Canada’s sr&Ed Tax credits are under attack in a number of different manners. We'll review some of those criticisms and prove to you that financing sr Ed claims is totally... business as usual... if, and its a big if, you know what you are doing.

A recent Canadian national headline story screamed ' flawed r&d scheme cost taxpayers billions '. First of all, it’s not a scheme... it’s a program. (I am secretly hoping my old age pension is not a scheme) We're talking of course about the Canadian Scientific Research and Experimental Development Program - aka ‘SR ED ', 'SR &ED '.

The program has gained significant traction over the years, and not hard to understand why, when the essence of the program is that Canadian privately controlled firms are the recipients of billions of dollars of funding every year, in the form on a non repayable, real money cheque for a large percentage of their research and development. Thousands of firms all across Canada apply every year.

At its essence the program is clearly ' apple pie ' and ' motherhood ' - simply Canadian firms investing hard earned dollars in research of products and processes to further their competitive positions here in Canada, and of course globally, where it counts .

So whats the problem. It's hardly late breaking news to us, but the core issues around the current ' sr ed claims crisis seems to focus on who is preparing them , the dollars that are sometimes wasted or abused in that process, and the governments inability to validate every claim to the level they would perhaps like to .

Who would not agree as a taxpayer or a reasonable person that we would all prefer our tax dollars to be going to programs and things that work. That brings us around to our other core subject area - the financing of sr&Ed tax credits.

Firms in Canada have the option of either waiting for their cheque, which can takes months to a year, of monetizing their claim immediately for cash flow and working capital. In many cases this is the largest one time amount of funds that many new and emerging companies receive.

So why isn’t their a concern over sr Ed financing? That’s because it’s a common sense process based on the quality and size of your claim. A typical financing involves a straight forward business application, with copies of your technical claim and tax filing showing the sr&Ed tax credit has been filed. We spoke of the sred consultants that have proliferated the industry - the reality is that your claim is finance based on its having been prepared by a credible consultant with an industry reputation and experience. Even CRA, formerly Revenue Canada noted that ' the vast majority of claims are compliant '.

When you're financing claims the dollars count. The program itself allows for approximately 35% of your total R&D expenses as a total claim, as validated by yourself or your consultant. When you finance your claim you receive approximately 70% of your total claim as a bridge loan that balance held back as a buffer, and remitted back to yourself less financing costs.

Is there a bottom line? We sure think there is. Take advantage of a legitimate and great government program (not scheme!). Prepare your claim with the aid of a reputable expert consultant with credentials and expertise. If you wish to finance your claim seek the services of a trusted, credible and experience Canadian business financing advisor who will efficiently guide you through the financing process - straight to cash flow in the bank!

--

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

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

SR ED Tax Credits Are Under Attack! Financing SR ED claims Is Business As Usual – How SRED Finance Works


We're going to turn that one thing you need to know about equipment lending for your machinery finance and other lease and loan needs into a multitude of good news benefits !

Let's share and explore some tricks of the trade to make your equipment financing loan or lease strategy more profitable than you ever thought it could be, with options we are pretty sure you have never even heard of that have the potential to turn your lease financing of your assets into a profit center under the right circumstances.

Today we are focusing on the type of decision you make at the start of your machinery finance lease decision. We refer to machinery but of course we're referral to all tangible assets you choose to finance.

When Canadian business owners and financial managers comment the equipment lending process for their financing needs they often, unfortunately do a poor job of determining how they will handle the end of the lease option. This option can make or break the overall cost and profitability around your lease finance decision.

Let's use one practical example and demonstrate our point. Let's say you are following our advice and make a conscious decision that the asset will last you 5 years. (We are sure not talking about computing technology of course! - No 5 year terms recommended on technology!) What you need to do now is ensure that any analysis you make around the cost of ownership to the same term as you have picked for your lease. Mismatching those costs and benefits is highly inappropriate.

So, back to the core of our subject, which is the one thing you need to know - and that is that you have numerous profit and cut your loss type strategies at the end of your lease. Some of this is determined by what you sign up front, further enforcing our point that you need to view the whole equipment lending cycle in your mind at the start of your transaction.

Ok, let’s make some money, or cut our losses. How do we do that ? First of all , if you know for sure that you have a good handle on the assets useful life based on your experience enter into an operating lease , not a capital lease to own, thereby giving yourself the flexibility to return the equipment to the lessor at the end of term . Let the lessor take the risk on the asset and its disposition.

That same operating lease strategy has a dual benefit, if you are at the end of the term, and you think the asset is performing well and generating revenues and profits then agree to purchase the equipment from the lessor at the end of term. Dont forget that you and the lessor need to agree on what its true fair market value is.

Want to renew the lease at the end of our 5 year term - with a view towards still owning the asset. Then negotiate forcefully with the lessor for a reduction in your monthly lease payment. Can you do this? You sure can, because the lessor has already extracted all their profit on the original deal, having assumed you would terminate the transaction.

Here a true secret profit strategy. If you feel there is significant useful life in the asset consider purchasing it from the lessor at its fair market value and then sell or rent it to another firm who might need it. You just turned a former equipment lease liability into a profit center!

One final strategy is to purchase the equipment based on your knowledge of its value, use it for a specified period, and then trade it in for a new upgraded asset - thereby lowering your lease cost on the newer asset!

So, whets our bottom line. It’s simple. You need to be informed about the lease life cycle, understand what the equipment lending cycle is all about when it comes to your options and flexibility. Whether it’s a machinery finance loan, computing technology, or an aircraft, the ability to see your end of term options at the start of your equipment lending decision will make or save you thousands of dollars. Speak to a trusted, credible and experienced Canadian business financing and leasing advisor to reduce your costs and improve your profits by sound lease finance knowledge.
--

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

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

The One Thing You Need To Know About Canadian Machinery Finance Equipment Lending To Make Your Lease Or Loan Work !


We're going to turn that one thing you need to know about equipment lending for your machinery finance and other lease and loan needs into a multitude of good news benefits !

Let's share and explore some tricks of the trade to make your equipment financing loan or lease strategy more profitable than you ever thought it could be, with options we are pretty sure you have never even heard of that have the potential to turn your lease financing of your assets into a profit center under the right circumstances.

Today we are focusing on the type of decision you make at the start of your machinery finance lease decision. We refer to machinery but of course we're referral to all tangible assets you choose to finance.

When Canadian business owners and financial managers commence the equipment lending process for their financing needs they often, unfortunately do a poor job of determining how they will handle the end of the lease option. This option can make or break the overall cost and profitability around your lease finance decision.

Let's use one practical example and demonstrate our point. Let's say you are following our advice and make a conscious decision that the asset will last you 5 years. (We are sure not talking about computing technology of course! - No 5 year terms recommended on technology!)

What you need to do now is ensure that any analysis you make around the cost of ownership to the same term as you have picked for your lease. Mismatching those costs and benefits is highly inappropriate.

So, back to the core of our subject, which is the one thing you need to know - and that is that you have numerous profit and cut your loss type strategies at the end of your lease. Some of this is determined by what you sign up front, further enforcing our point that you need to view the whole equipment lending cycle in your mind at the start of your transaction.

Ok, let’s make some money, or cut our losses. How do we do that ? First of all , if you know for sure that you have a good handle on the assets useful life based on your experience enter into an operating lease , not a capital lease to own, thereby giving yourself the flexibility to return the equipment to the lessor at the end of term . Let the lessor take the risk on the asset and its disposition.

That same operating lease strategy has a dual benefit, if you are at the end of the term, and you think the asset is performing well and generating revenues and profits then agree to purchase the equipment from the lessor at the end of term. Don't forget that you and the lessor need to agree on what its true fair market value is.

Want to renew the lease at the end of our 5 year term - with a view towards still owning the asset. Then negotiate forcefully with the lessor for a reduction in your monthly lease payment. Can you do this? You sure can, because the lessor has already extracted all their profit on the original deal, having assumed you would terminate the transaction.

Here a true secret profit strategy. If you feel there is significant useful life in the asset consider purchasing it from the lessor at its fair market value and then sell or rent it to another firm who might need it. You just turned a former equipment lease liability into a profit center!

One final strategy is to purchase the equipment based on your knowledge of its value, use it for a specified period, and then trade it in for a new upgraded asset - thereby lowering your lease cost on the newer asset!

So, whets our bottom line. It’s simple. You need to be informed about the lease life cycle, understand what the equipment lending cycle is all about when it comes to your options and flexibility. Whether it’s a machinery finance loan, computing technology, or an aircraft, the ability to see your end of term options at the start of your equipment lending decision will make or save you thousands of dollars.

Speak to a trusted, credible and experienced Canadian business financing and leasing advisor to reduce your costs and improve your profits by sound lease finance knowledge.

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Stan Prokop is founder 7 Park Avenue Financial ;

see http://www.7parkavenuefinancial.com
Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 6 year old firm has completed in excess of 45 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:

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

Monday, March 14, 2011

Not Getting All The Lease Equipment Financing For Business You Need ? Financing Loans Made Simple !


Rumour has it you aren't getting your share... of the amount of equipment business financing enjoyed by your competitors and others. Let’s demonstrate how finance loans can be addressed in a timeline that makes sense for your firm, with the rates, structures and terms that your competitors already enjoy.

We don't think we have met any business owner recently who doesn’t feel that the traditional route or bank borrowing no longer makes sense for their asset acquisition needs. We don’t have to explain the benefits of dealing with a specialist in any industry, so the firms that offer lease financing in Canada is where you will find financing products that work for you.

We also don’t need to mention of course that if your firm is a start up, smaller in size, or perhaps going through some challenges... well... guess what - you are still a 100% candidate for lease and financing loans .

Many owners and managers searching for equpment financing for their business needs are under the pre conception that certain assets can't be financed. That’s where you ability to quickly focus in on a specialized firm that provides business lease solutions for your acquisition - and that includes computers, office equipment, plant and machinery assets, vehicles, and even intangibles such as software !

We are always intrigued by the reasons business owners offer up for leasing consideration - however when you think about it all those reasons come down to several key points - cash flow and working capital management, tax and accounting issues, matching the use of the asset to its estimated life . While every Canadian business owner likes to feel their needs are unique we are pretty sure that if you walk through those 3 key areas we noted above you will be able to significantly simplify your business equipment financing.

Is there a way to simplify the entire process? There sure is. Simply view what we will call ' the big picture ' around your transaction. Envision it as follows - your application and exchange of financial info with your lessor, discussion or correspondence leading to approval, documentation, and then finally funding and payment... which is often simply the payment made to your supplier , allowing you to receive the asset and put it to work for cash flow and profit generation .

There are hundreds of equipment financing and lease financing firms in Canada. We are quite sure you do want to ' simplify ' your business financing so speak to a trusted, credible and experienced Canadian business financing advisor who can ensure your business lease is positioned properly, approved, and funded . Now you are getting your share!
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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_business_financing_loans_lease.html

Sunday, March 13, 2011

Confidential Cash Flow Factoring - Turn Accounts Receivable Into Your Best AR Finance Strategy


We are going to demonstrate how a little known, and in our opinion almost a secret strategy can called confidential cash flow factoring can turn your accounts receivable into a virtual cash flow machine, turning past ar finance obstacles into cash flow solutions!

Search engine analysis will show you that thousands of Canadian businesses search everyday for what they hopefully believe will be valuable information around the most popular method of business financing today. Those businesses, of all types and sizes by the way ( even the largest corporations in Canada ) want to know why cash flow factoring offers unlimited unlocking of cash flow based on your sales and receivables .

Initial explanations and overviews to clients sometimes become bogged down in key issues such as the cost of this method of ar finance, and, equally important, is the unwillingness of some clients to accept how invoice discounting (that’s another name for this type of financing) works.

Canadian business owners and financial managers want to like a good thing, at the same time they want to know how it works and how they avoid any pitfalls. Lets discuss the ' how it works ' portion first and then share with you the method we believe eliminates the major pitfall perceptions viewed by many firms considering this type of financing.

We'll focus on small and mediums sized business - the larger corporations have access to all sorts of financing and external finance strategies - while the small and medium sized businesses in Canada tend to rely on their own cash flow to fund their ongoing growth and working capital. In fact many firms realize they have potential to grow sales and profits, but cant because of that lack of working capital.

Back to the 'how it works ‘! Cash flow factoring of accounts receivable is the ongoing sale, in whole or in part of your sales invoices as you generate them and deliver products and services to your customer. The invoices are purchased at 1- 3% discount from yourself, and you receive cash, 99% of the time the same day, for those sales. So, in effect all your sales now fuel that cash flow machine you have turned your company into.

So far, so good, right? Where complications arise, especially in Canada, is the fact that this type of financing requires your client to be notified of the process, directly, or indirectly, and payments are required to be forwarded to your factoring finance firm. Canadian business, in our eyes, has a reluctance to involve their customers in their internal financing policies, and challenges. As a result, many firms are skeptical of entering into ar finance of this manner.

Is there a solution? We told you there was - it’s a breakthrough called confidential invoice discounting. This type of financing comes at the same cost, allows you to bill and collect your own receivables, and gains all the benefits of that cash flow factoring machine we turned your company into.

Speak to a trusted, credible, and experienced Canadian business financing advisor who can put you into a proper ar finance facility, allowing you to reap the benefits of cash flow invoice financing, while at the same time allowing competitors, customers , and vendors to remain exactly where you want them to be, outside your financing strategies and challenges ! Let's let your competitors try and figure our how you're doing so well in both growth and profits.

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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_factoring_accounts_receivable_ar_finance.html

Why The Canada Government Small Business loan Is Your Best Bet For Start Up Financing


Do you want 957 million reasons why the Canada government small business loan is your absolute best bet in Canadian business financing for small and medium size firms? Well, that’s how many dollars the government program we are discussing put into the economy last year (2010).
Small and medium sized firms, including start ups, are the recipients of the financial benefits of this program. It is very important to clarify our reference to ' medium size ‘, since the cap for sales or projected sales is 5 Million dollars in revenue. That is to say the program only lends to firms with revenues under that amount.
Should your firm, or yourself as a new entrepreneur be looking at this financing. Clearly the lending criteria, as well as the overall rates, terms and structure of the government small business loan lend themselves for serious consideration. Rates are comparable to what larger Canadian corporations can achieve - and if you want the real kicker here it is - a personal guarantee by shareholders is required for only 25% of the entire loan value. That in itself is appealing to many entrepreneurs and business owners who do not wish to offer up full personal guarantees.
How much can I/we get? That’s the very firms and very typical question that we are always asked. Well, here is where even more good news kicks in. Up until 2009 the cap on the program was 250,000.00 - This amount was raised to 350,000$ during the most recent economic recession. 350K continues to be the loan maximum - however for borrowers who wish to facilitate a real estate transaction using the program you can actually go to half a million dollars on the program .
Why isn’t everyone or almost everyone taking advantage of the program? We can't offer up all the reasons, but some of the better published ones relate simply to the fact that most eligible recipients are not aware of the program! That’s almost too unbelievable when you consider the very attractive rates structures and terms that we speak of.
Another typical belief is that while the Canada government small business loan is guaranteed by the federal government (the owner of the program is Industry Canada) the program itself is administered by the chartered banks in Canada. Many feel the banks have not done a great job in promoting the program, due in some part to staff training issues, as well as the paperwork admin, and reporting that banks have to undertake when they are asked to create such a loan on your behalf.

Could you use funds for land, equipment, vehicles, software, leasehold improvements? Those very specific items are what 99% of all government small business loans are utilized for.
It is important for borrowers to also investigate what the program can’t be used to finance.
In summary, yours is not to question why - yours is to take advantage of the program .Speak to a trusted, credible and experienced Canadian Small Business Financing Advisor to learn how you can immediately take advantage of this great, and often mis-understood small business loan 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.7parkavenuefinancial.com/canada_government_small_business_loan_financing_2.html