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.



Wednesday, August 31, 2011

Are You Properly Positioned For Working Capital & Canadian Business Loan Financing – Here’s How



A Different Way To Look at Business Financing Needs


Information on working capital and business loan financing in Canada . How do business owners best position their company based on their needs and who they are dealing with?



Positioning... we checked, and it's simply about ' being in the right place'. When we first talk to many clients who are looking for working capital and business loan financing we sometimes find that they are unable to properly communicate their historical , current and of course future financial position.
Your firm will always need outside financing if you are going to grow, and the reality is that achieving financing success is a lot different than running your business – to put it simply... raising money isn’t quite like making money! We’ve always felt that the financing process should not be as stressful as it seems; so whether you’re dealing with a bank, commercial credit union, or an independent finance firm you need to be able to present your data in a compelling manner.

The most important tool you have in that communication challenge is your financial statements. They bring light into what we could call ' conversation darkness'. Business owners of small and medium sized businesses in Canada simply need to be able to convey what their financials tell about their company.

If we had to focus on one key area re: positioning of your firm it’s simply the challenge of showing your firms ability to repay debt. The majority of debt financing in Canada is of course secured. If your firm over performs, increases sales, and generates significant profits your lender , whether that is a bank or a commercial finance firm does not benefit any more than if you didn’t have that solid financial performance we mentioned. So again, any lender is always focusing on repayment.

Typically your positioning on a commercial financing is well served if you are able to demonstrate what lenders call a primary source of repayment - 99% of that time that is going to be operating cash flow. Other assets or strengths of your firm are always going to be a secondary source of repayment - i.e. additional collateral, your personal guarantee, etc.

Whether it’s in Canada or elsewhere a business loan financing its going to always come down to certain ' ratios’. We have always though that’s such a mechanical term and description, and have tended to use the work ' relationships'. Your ability to position certain ' relationships' in your financial statements are fundamental to business loan financing approval.

So what ' relationships' are those underwriters (underwriters = people you will never meet) looking for. Some of those are your gross margins, your net profits, which are usually benchmarked against companies in your own industry.

Working capital and debt financing makes much more sense to the lender when you have a positive net flow of funds. Simply speaking that’s your cash flow, which most lenders calculate by adding your net income and deprecation. The number that we consistently see ' traditional ' lenders applying to cash flow is a 1.25:1 ratio... or relationship.

Want to better position your working capital needs? Then be prepared to address or talk to your operating cycle. Knowing how long it takes to collect your receivables, turn your inventory, etc is what working capital analysis is all about. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in the proper positioning of your firm... for financing success!



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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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

Tuesday, August 30, 2011

Sources of Equipment Financing Loans In Canada – What Commercial Business Lenders Meet your need





Get Practical On Sources of Equipment Leasing For Canadian Business

Information on sources of equipment financing loans and leases in Canada . Commercial business finance options that make sense!



After Canadian business owners have made the decision to acquire assets for their business they are often faced with the choice of identifying the best 'source' of that financing.

Businesses lease or arrange commercial business loans for assets they need for ongoing operations. So who do you turn to for a financial option that makes sense - one that allows you to match cash outflows against the expected benefits of the asset you are acquiring?

In a perfect world, (and trust us we know its not!) you want to find a financing partner that has a good sense of what your business and your overall financial condition is about. Your ultimate goal should be to give your business a financing rate, term, structure and benefits that you deserve.

In one aspect of equipment financing loans in Canada we must regretfully report that ' size counts'! What do we mean by that ?Simply that the overall financing size of your commercial loan or lease dictates who your best financing partner will be . We advise clients that in Canada there are in effect 4 tiers of equpment financing size. They are as follows - large ticket, mid ticket, small ticket, and micro. When you know who the best players are in one of those four niches we believe you’re... to quote Charlie Sheen ' winning'!


Ever tried to put something in a box that doesn’t fit? It’s quite an unproductive task. That’s why we cringe when we see clients trying to put their box in a lease niche that doesn’t fit. The reality is that many Canadian businesses get the run around only because they have stumbled into the wrong niche. So whats our point, simply that the asset dollar size, type of asset and your overall credit and financial strength very quickly determine who you should be dealing with.

Credit quality is what business equipment financing loans are all about in commercial financing in Canada. Optimally you will get the best rate when you have a decent balance sheet, good cash flows, and a credible business history.

Unfortunately that doesn’t include thousands of business owners who have unpredictable cash flows, some historical operating issues, or who perhaps find themselves in an industry that is ' out of favor '. Does that mean you can’t be successful in commercial business leasing? Absolutely not , but it does mean that you are now in the category the industry terms as a ' story credit', and its up to you now to tell a good story . If you do that you will get a lease approval, but your transaction will be structured in some manner that affects the rate, term of the lease, or perhaps outside collateral, guarantees, etc.

So who exactly do you turn to for financing you need in equipment? The parties that are offering you financing today are captive vendors, banks (who really are into leasing these days) and independent specialized lease firms of all sizes, types, and ownership. (Many U.S. firms are key players in the Canadian business equipment financing arena.

Want to fast track lease financing approval, and ensure that you find yourself in the right niche and ticket size that we have outlined? Speak to a trusted, credible and experienced Canadian business financing advisor who will help you manage the process and identify your rights, obligations and key benefits. Get your 'best deal' with professional assistance, saving you time... and money.




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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


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

Monday, August 29, 2011

What’s The Best Financing & Funding In Canada For Your Business - Tips On A Corporate Bank Loan





Does a corporate bank loan for the financing and funding of your Canadian business seem a monumental or impossible task these days? It shouldn't if you have the right information.

When Canadian business owners and financial managers think of financing or funding for their business its natural they gravitate to Canadian chartered banks. If there was one reason it’s a pretty simple one, it’s basically the best commercial loan or line of credit financing in Canada.

Business loan financing in Canada comes in two categories when you're dealing with a Canadian chartered bank - intermediate or long term ' term loans ‘, and of course operating lines of credit .

Typical terms for intermediate loans are in the 3-5 year range, paid in installments. Longer term loans might be available for financing and funding of long term assets such as business or plant assets .It is absolutely essential that you can demonstrate historical and future profits and cash flow to be in a position to be approved for bank term loans of a long term nature .

Many Canadian business owners and their financial staff find the approval process within a bank as somewhat ‘rigorous’. And that’s an understatement for many of our clients! Because of the strong banking system in Canada the supply of business financing and funding is virtually unlimited. Unlike in the U.S. the supply of business credit, we feel in our opinion, is not highly differentiated. The U.S. banking system and their various types of banks (money center, regional, specialized, S&L... etc) is a whole different kettle of fish.

If you can pass what some might call the litmus test for approval within the Canadian chartered banking system then the rates and structures are categorically worth it. Misc fees and standby type arrangements might make you’re financing a bit more expensive, but nonetheless it’s still pretty well the best deal in town.

In Canada the chartered banks have started to compete with the independent lease financing industry. While a bank lease rate might be a bit higher than a term loan scenario it is still very aggressive pricing which many independent finance firms just cant match ( Probably because they borrow those funds from the bank themselves!)

It's always somewhat amazing to us that the bank criteria for making decision on Canadian business financing have pretty well stayed the same for 100 years. That criterion is as follows, and should be no mystery to a Canadian business owner. The management experience and personal credit history of the owners is always a key element in financing approval. Also banks think in terms of capacity - which is a fancier term for simply ensuring that they feel you have the ability to repay. Significant analysis on your cash flow coverage, leverage, etc is done at this point.

Additional outside collateral is sometimes also requested, which can come in many forms, i.e. Other assets within the business, spousal or third party personal or corporate guarantees, etc

Is there one final tip we can offer up on knowing how to succeed when looking for a corporate bank loan? It's personality. Personality? Simply speaking we have always felt it’s the banker, not the bank, so spending a lot of time in searching for high quality commercial bankers that actually want your business is worth it. That banker will have a very clear idea and plan to get you approved, and will work with you to be successful.

If you don’t have the time to conduct banker interviews (?!)... who does ?... then seek and speak to a trusted credible and experienced Canadian business financing advisor who can help you forge a relationship with the right banker .



About the Author:
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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


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

Sunday, August 28, 2011

Commercial Bank Financing In Canada – Solutions and Maybe An Alternative Via Business Banking Competitors!





Canadian Bank Business Financing .. & Alternatives !

Information on commercial bank financing in Canada . What are the key issues in getting approved for the business financing your firm needs . There is in many cases a bank alternative via non bank financing from competitors to the Canadian banking industry .



When most Canadian business owners and financial managers think of commercial finance in Canada commercial bank financing comes up logically as the ' go to ' solution. That seems logical because probably for many decades in Canada it was the only solution. In recent times financing alternatives via bank competitors have proliferated. Let’s examine some key aspects of Canadian chartered bank commercial financing, and perhaps some alternatives... who knew!

Borrowing from a chartered bank in Canada comes under two categories for most small to medium sized corporations ... term loans and revolving lines of credit. Banks are very focused on your cash flow for the simple reason that it, plus additional collateral that is pledged, becomes the source of repayment.

It is well known that the Canadian chartered banks have pretty well the highest reputation in the world for being well run, profitable, and soundly capitalized. That becomes a double edged sword when you are a borrower looking for commercial bank financing , for the emphasis on your overall credit risk, assets, cash flow coverage , and personal guarantees of shareholders is somewhat intense !

When your lines or credit or term loans can’t be repaid in the eyes of the bank then you're deemed ' none performing ‘... (Even though you're working as hard as ever!) .

Over times business owners realize that a lot of the financing they need might not be accomplished by a Canadian chartered bank because of the significant emphasis that is placed on the rear view mirror. What do we mean by that?! Simply that your past financial performance is often a huge part of the overall bank approval decision for your new financing. So even if you have great prospects, new contracts, new owners, new equity, etc, etc, etc the reality is that last years financial losses, or negative cash flows or some other incident in fact will probably preclude you from being approved, at least in the amount that you might desire.

But of course being approved by a commercial bank in Canada for the financing you need pretty well means you are achieving the best finance rates and terms in the country. The banks low returns on commercial borrowers (because of those low rates) are compensated by the low risk they take.

When clients talk to us about focusing on a traditional Canadian commercial bank financing it is our advice that they totally disregard rate (because as we said, there isn’t any better) and instead focus on the ratios and covenants and personal guarantee that make up your financing approval.

And what about those alternatives and competitors to Canadian chartered banks .Over the last 10 -20 years a number of very solid alternative finance offerings are available to you the Canadian business borrower. They include asset based lending via non bank credit lines, confidential receivable financing, equipment financing for new and sale leaseback scenarios. Even more alternatives are available, including purchase order financing, bridge loans, and private equity.

In many cases a lot of the banks actually have started new divisions to compete with these new competitors - however typically in our opinion their same credit standards are in place; that is to say it’s not a bad thing, just the same challenge of getting approved within a bank offering.

Want to discuss commercial bank financing, or an alternative via competitors to the chartered banking industry in Canada? Speak to a trusted, credible and experienced Canadian business financial advisor who can work with you to achieve proper financing for your firm.




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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


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

Saturday, August 27, 2011

Create A Customer Financing Program For 10 Cents! Looking for Canadian dealer / vendor funding For Your Clients? Here’s How!





Interested in a Customer Strategy To Increase Sales, Profits, and Cash Flow – Try This!

Information on the benefits of a customer financing program for Canadian companies who wish to implement a vendor funding program for their client base . Dealer /cust. Finance pays off !




Buddy, got a dime? Did you ever think you could increase sales, profits, and the almighty cash flow for a ten cent investment?

More about that 10 cent investment requirement later ; but we're talking about utilizing a customer financing program, often called a dealer or vendor program, for assisting your clients in financing their purchases - of your products and services .

When Canadian business owners and financial managers think of acquiring assets from their vendors / suppliers almost 80% of all businesses consider lease financing as a financial mechanism to acquire that asset. But wait a minute... lets turn that situation around; aren’t in fact yoru own clients thinking about financing options when they are looking to acquire YOUR products and services. You've proven they do, if only because you do it also.

So is the price of any product or service one of the critical aspects of any firm considering a purchase of any type? You bet it is. In fact in surveys we have seen for years ' price' actually becomes an ' obstacle to innovation ' - a term we've grown quite fond of.

So are you in a position to remove that obstacle to innovation that your clients are experiencing. You are in fact, if you choose to develop a customer financing program. This type of program allows your customers to match reasonable cash outflows with the benefits they receive from your product.

There are a couple of different ways you can do this, so let’s cover them off. Our favorite is the ten cent investment scenario we discussed earlier, but in fairness to all parties let’s ensure you understand all your options.

You have the choice of actually forming your own finance firm or division - for many major manufacturers this in fact is almost a must. Think of what GMAC did for GM... Namely allowed their clients to finance millions of cars over the years... how by offering them financing or subsidized financing.

The reality for small and medium sized firms in Canada is that they are probably better served by aligning themselves with an independent third party who has day to day expertise in offering customer financing and funding to customers such as yours. They have the expertise and business model in place

As we said earlier the benefits of a dealer / vendor program (you in effect are the dealer/vendor) are significant. Very significant. They include increased sales, a total solution perception by your customers (i.e. product/service/financing) and lower inventory levels due to the fact that sales turn around faster, bottom line... what they call a faster sales cycle.

So how is it possible to do all these great things on a ten cent investment? Well we've estimated 10 cents as the cost of a phone call, and if you seek out and call a trusted, credible and experienced Canadian business financing advisor with significant lease experience you will be in a position to implement a full customer financing program at no cost.

That advisor will work with you to identify a financing partner(s) that you are comfortable with, thereby ensuring you can use vendor funding for any size of deal of credit quality in your customer base. Many programs can be ' tweaked ' to ensure you have numerous other small benefits that add up to a significant amount of what lessors call ' control' in your customer base. That might include upgrade programs, end of term programs, or Zero per cent financing subsidized by yourselves to increase sales for a short period.


So is that ten cent investment (isn’t calling even cheaper than that these days?!) worth it. We'll let you decide. But your competitors are doing it, so if more sales, increased profits, and a faster sales cycle appeal to you consider making that call for a customer financing program.



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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


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

Friday, August 26, 2011

Deciding On How To Finance A Franchise? Canadian Franchising Business Loan Info On Financing and Lending That Makes Sense!




Make the Right Decisions in Canadian Franchise Financing

Information on how to finance a franchise in Canada . Getting a franchising business loan that makes sense for the entrepreneur . Financing & Lending tips for the new Canadian franchisee.



Not only do you want to have a solid plan when you want to finance a franchise in Canada - it sure helps when that plan makes sense for the business financing loan / loans that you need!

We think that most Canadian entrepreneurs who are either first time franchisees or perhaps are adding another location to their business would agree that its not as important as to where the franchise lending and business funding comes from, but that you get the full funding at terms that make sense for you personally .

Let's examine some of those key decision points and requirements that you need to fulfill a proper franchise financing solution in Canada.

We think that a lot of franchisees are sometimes overly focused on ' the interest rate ' when they are seeking a franchise loan. That’s human nature we guess, but the reality is that the loan is simply commensurate with your overall credit quality and in line with the types of financing that are out their in the Canadian business financing market - unfortunately that market for new franchisees is somewhat more limited that in the U.S.

In Canada franchises are financed really in only 3 or 4 different manners -- actually 5 we could say if you considered financing the whole franchise yourself through personal savings.

While that might seem a good idea we think in many cases it is not for a variety of reasons - i.e. collapsing personal investments and savings and assets when you don’t have to cant be an overall great strategy. We spoke awhile back to a franchisee who had pledged and used all his personal assets to acquire a franchise - business was slow, and he was unable to secure additional outside financing to re- boot the business because all his personal assets were pledged/gone. Bottom line, not recommended!

So the question then becomes as to how you decide to finance a franchise once you have made that acquisition decision. We'd like to share a couple key points. First of all, whether it’s a franchise or any business whatsoever, it’s financed by two guys, debt, and equity; i.e. what you borrow and what you put in yourself. Spend some time determining the optimal mix and you will best be able to gravitate to the right financing strategy.

In Canada these days we see franchisees putting in anywhere from 10 -50% as their personal investment into the business. Whats the perfect number? The reality is there isn’t one, because each business requires a different amount of financing and has a different mix of assets and financing needs. The key assets and financing needs in franchising are all your initial soft costs, such as the franchise fee, and then comes your costs to open the door, often called the ' turnkey ‘. That turnkey component consists of equipment, leaseholds and opening working capital.

We spoke of 4 methods of franchise financing in Canada .Those are as follows : Specialized commercial finance firms that have dedicated franchise finance divisions , Equipment financing, Working Capital term loans as a supplement to your overall financing, and finally the BIL/CSBF loan . The latter is the government SBL loan that is used by hundreds, probably thousands of franchisees to acquire their franchise. It only has one or two limitations, one of which is that it caps out at 350k, but that certainly covers a lot of franchises in Canada in different industry segments - examples restaurants, service businesses, etc.

So, today’s bottom line? Simply that spending some quality time early on in the process in understand which of the 4 options makes sense for you is a valuable investment. That time, coupled with your business plan and financial projections will help you ensure that you have the right mix of financing solution, as well as a properly chosen business loan strategy for your franchise.

Speak to a trusted, credible and experienced Canadian business financing advisor on how to best decide which financing mechanism works for you.




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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


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

Thursday, August 25, 2011

Smarter & Faster Canadian Business Financing - Why Asset Based Lending Credit Facilities Work!




Simplify Business Credit With An ABL asset based line of credit !


Information on asset based lending as a business financing ‘simplifier’ for your operating credit needs in Canada .



We recently did an internet search for the term ' business financing ' in Canada. Last month in Canada 18,100 searches were performed for that term. WOW! We're quite sure that asset based lending could satisfy a lot of those Canadian business owners and financial mangers looking for business credit facilities that comes ' smarter and faster '. How? Let’s take a look.

Asset based lending is business to business lending , providing cash flow and revolving credit facilities for firms of all size in Canada . In truth the facilities work for firms requiring a monthly business credit line in excess of 250k, and ranging upward to tens of millions of dollars. We're quite sure that covers many of those 18,100 queries made on the internet.

Asset based lending uses your receivables and inventory by the way to provide you with a lending facility against those two assets. Because of the manner in which these types of credit lines are calculated you can be sure that 99.99% per of the time you are going to have access to more cash flow. And that's what business financing is about, right?

ABL ( asset based lending) business financing is business credit that can be used to grow your business, acquire another business, or simply speaking, fix a lot of the financial challenges that you are experiencing, almost immediately .

A key benefit often overlooked in the approval process is the fact that your firm is now in a position to negotiate better terms and prices for your products and services that you need. Why / because you have ' business buying power ' Vis a Vis your new found access to more business credit.

So when we look at those 18,100 firms that searched for business financing last month in Canada why didn’t these companies simply call you know who... Canada's chartered banks?

The quick answer to that is that they probably have tried to arrange additional or new financing with their chartered bank or credit union, but have exhausted all attempts at approval simply because they can’t meet more rigorous bank qualifications. And , unfortunately, in some cases they have even been asked to leave the bank or find themselves in the ' special loans' portfolio of the bank - we hasten to always commiserate with them that we know that’s not a ' special ' feeling you want to have in business.

In many cases the banks or other private equity type firms will suggest or request that the business owners put up additional personal equity into the business to justify new financing. Asset based lending does not require you to consider that option , simply because you already have the one thing that ABL financing needs to work smart and fast .. Assets!

So how does the ABL lender do it differently then. The short answer is that they place a lot of emphasis on understanding your business, getting regular bi weekly or monthly reports from yourselves on the basics , such as a/r, a/p, inventories, etc. This business financing expertise allows asset based lending to work in pretty well every industry in Canada - its real world working capital finance

If you want your company to be on the growth trail again , without taking on extra debt ( ABL business credit financing is cash flowing your assets, not adding debt to your balance sheet ) speak to a trusted, credible and experienced Canadian business financing advisor - let ' smarter and faster' work for your credit needs.. 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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


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

Wednesday, August 24, 2011

What Type Of Start Up Business Financing Loans Are Available For A Canadian Company ? Startup Loan Info





Solving the startup financing challenge in Canada


Information on start up business financing in Canada . Starting a company? What type of loan/loans are available , and what do you need to do to successfully complete a startup finance strategy that makes sense.





We're all for hard work and facing challenges, but boy do we respect anyone setting up a business today and looking for start up business financing . What type of company loan/ loans and finance facilities are available for the Canadian entrepreneur?

We can pretty safely say it’s always been tough to finance a start up but in more challenging economic times you can easily assume a hard job just got harder. So what types of financings are available to Canadian entrepreneurs, and as importantly, what do you need to do to get properly prepared to complete loan/loans?

Many of our clients cringe when we ask them for their business plan - its seems a daunting task for many, and certainly doesn’t have to be. Even a very strong executive summary will often do the trick - information about yourself, your background, your new business, and, most importantly, what we call the financial potential. That potential of course relates to being able to pay back your borrowings!

Want to overcome obstacle #1 then, that business plan. Simply speaking, get someone else to do it, an experienced, credible and trusted Canadian business financing advisor. That recommendation can come from a business peer or friend, a banker, or your lawyer and accountant. These people are on the front lines of start up business financing for your company and others.

So what are some of actual borrowings available for start up Canadian companies? They include the Government small business loan - commonly called the SBL. Another government crown bank provides working capital loans that are true cash loans that are in effect unsecured - they require only your promise to pay, and of course that of your new business .

Other methods of financing your start up include receivable financing, aka ' factoring ', which provides instant cash on every sale you make, albeit at a cost. But ask yourself this, whats more important to you at this time, ' the rate ‘or access to capital? In the majority of cases we think its access to capital. Many firms that are retail or consumer oriented have gravitated to merchant cash advance financing, in effect loans made against your future sales. (A little bit of every future sale is used to repay you loan).

Having realistic sales and cash flow projections often makes or breaks the new start up in Canada. The reality is that many clients we meet with bring us unrealistic sales projections, and, on top of that those projections don’t have realistic cash flow attached to them.

Case in point, the business entrepreneur shows revenue of 100k cash coming in of 100k in that same month. Guess what though, it’s not a perfect world, and the reality is that cash, if you are selling to a business, will come in stages in 30, 60, and we shudder! even 90 days. So get realistic on cash flow, and have your plan B ready!

Many physical assets you need can be financed via Canadian lease financing. But be careful to ensure you have the right type of lease in place, and that the rates are commensurate with your overall credit quality, and that the terms and structure of the lease... you guessed it... make sense! (Don’t lease computers for 7 years!)


Many clients we speak to don’t realize the 100% OPM doesn’t work .OPM is of course ' other peoples money ', and Canadian business owners need to address the fact that they require a reasonable personal investment into the business. Whats reasonable? That question comes up pretty quickly !There is no one single answer ; as an example the government SBL small business loan requires a 10% equity injection by the owner . In the cases of lease financing 10-20% down typically are reasonable requests from the lessor.



So whats our bottom line if start up financing in Canada. First, its boy do we respect your entrepreneurial spirit! But pay attention to those details we have discussed, and seek the services of a trusted Canadian business financing advisor who can make that road you have not traveled before a much more pleasant journey, and distance!



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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


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

Tuesday, August 23, 2011

Making The Biggest Leasing Mistake Ever? Not Offering Financing For Customers? Customer Financing Programs & Canadian Vendor Loans Work!




Customer Finance Programs = Sales / Cash Flow/ Happy Clients


Information on how Canadian firms can offer financing for customers via customer vendor loans and lease finance programs that will increase sales , cash flow , and provide value added service to your clients .




We're the first to admit we have all made mistakes (could we call them strategic mis-steps?!) in business. Here's one mistake not to make - lose business and sales revenue because you don’t offer financing for customers. Let’s look at how customer financing programs and vendor loans and leases work.

We've spoken recently of ' obstacles to innovation '. That a great term for trying to understand why some of your prospects or clients don’t acquire your product and services. In fact, there is one reason that consistently ranks high in surveys as to why Canadian business owners and financial managers don’t acquire new assets or technologies or upgraded services. That reason? You guessed it, price/cost/budgets.

So is there a way to eliminate one of the largest obstacles to innovation your client has. We've got the answer, and it’s ensuring you have the abilities to offer financing for customers via a formal (or informal) vendor loan or lease program.



The #1 reason for firms such as yours to offer customer finance programs is probably ' sales '! We're talking increased sales of course. The thought of getting involved in putting together such a program might seem a bit overwhelming to some of our clients. But the reality is that if you don’t choose to offer the financing yourself you do in fact have the ability to partner to offer this service to your client base.

So what is a vendor program? It's simply your firm utilizing lease and loan financing to increase sales of your products and services. And yes, services, software being and example can in fact be financed!

Many clients we talk to feel strongly that offering such a solution is simple a strong weapon in their overall sales tool kit.

So why do we feel strongly that offering customer financing is such a good thing. For a variety of reasons. Here are some of them. In business we all agree it’s about relationships, and offering a financing solution to your client base simple enhances that overall business relationship.

All sales people in business probably regard ' the budget ' as the proverbial enemy. Boy is it hard to make a sale of your great product and services when ' the budget ' of your client precludes him or her from signing that P.O. on the dotted line. But lease financing via a customer vendor program allows you to circumnavigate that budget in many instances.

While you might dwell on your own firm’s financial condition remember that the customer has their own situation to think of. Quite often clients don’t commit to your products and services because they ' haven’t got the financing lined up ‘. So unbeknownst to you your customer is out there trying to arrange financing for the acquisition of your product and service. Wouldn't it be easier to hand them that solution, ensuring your sales cycle just got a whole lot shorter?

Remember also that if customers are out there prospecting for financing solution they just might run into a competitor’s product or a financing offer that in fact makes your competitors product more attractive.


So whats our bottom line point today, simply that by offering financing for customers via client financing programs that work you can clearly differentiate yourself from the competition, and enhance your own reputation with your clients . That’s a classic win win unless we're missing something! Speak to a trusted, credible and experienced Canadian business financing advisor who can help you set up a simple program to achieve the benefits of what we have discussed. Whether on a program basis or on a single transaction you'll find customer programs tailored to financing your products work. And that’s a good thing.


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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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

Monday, August 22, 2011

Straight Talk On Confidential Factoring In Canada – Why Accounts Receivable Financing & Invoice Services Just Got Better!




Fact & Fiction on Receivable Financing In Canada


Information on Canadian confidential factoring and invoice services in Canada . Why C I D ( Confidential Invoice Discounting ) Just made factoring and accounts receivable finance a whole lot better!




We're the first to agree that when one of Canada's newest forms of business financing just got better that’s clearly a good thing! We're talking about the concept of confidential factoring, invoice services that finance your accounts receivable for working capital and cash flow.

Canadian business owners and financial managers demand flexibility when they look to alternate financing methods. If you choose the right facility, as in our case today, confidential accounts receivable financing you have just converted 90% of your receivable investment into immediate cash flow availability.

That benefit becomes even more dramatic when you consider this type of financing essentially gets larger as your sales increase; your financing ability travels locks step with your sales increases. Your revolving credit facility of confidential factoring becomes your new financing safety cushion.

While the majority of our clients use this type of financing for ongoing operations and growth remember also that you have the ability to use this finance mechanism for a number of other reasons - they might include acquiring a business , restructuring your company without the need for additional equity, etc.

Many clients utilize this type of accounts receivable invoice services in the context of also combining their inventory and purchase order financing needs .You've then created a triple combination of financing power for your firm , outside of traditional Canadian chartered bank financing .

So lets just backtrack a bit and ensure you understand the whole issue of confidentiality around C I D; Confidential invoice discounting. When you set up this type of facility you effectively retain total control over your A/R function - you are billing and collecting your own receivables.

Those familiar with traditional U.S. and U.K. type offerings available in Canada know full well that is not the case with the offering that is used by 99% of your competitors. Those firms in Canada that use receivable financing but without a confidential facility have in effected handed their billing , collection, and all important client contact info over to the factor company . Does that type of traditional factoring work? Absolutely. It’s just that confidential A/R financing puts you in control, not your finance company. You bill and collect your own receivables, without any notification at all to clients, suppliers, etc.

Canadian businesses are of course used to paying for added value. That’s just common sense. So then our clients can of course be forgiven for asking if confidential factoring services costs more. The answer is NO! Your advance rate and financing charges are the same with confidential factoring as they would be in the traditional for of notification model used by your competitors.

We would add however that to take advantage of confidential receivable financing a typical A/R portfolio should be at lease in the 250k range. There is no real upper limit on the size of any facility

Accounts receivable financing has filled on of the biggest voids in Canadian financing. It is often mis understood, in no thanks to some of the firms that offer it. If your company is growing, unable to attract more traditional financing then confidential then invoice services such as we have describe are for you . The optimal situation is when your cash flow is being drained because your sales are growing, requiring to maintain higher levels of A/R and inventories, etc.

If you wish to better understand the nuances and yes, the benefits of factoring invoice services in Canada, and which one works best for your firm speak to a trusted, credible and experienced Canadian business financing advisor 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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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

Sunday, August 21, 2011

How Canadian Cash Flow Finance & Mezzanine Lending & Financing Differs From Lenders Offering ABL Solutions





Does Your Firm Qualify for True Cash Flow Financing and Mezzanine Lending in Canada ?



Information on cash flow finance and mezzanine lending in Canada . How do ABL lenders differ from cash flow and ‘ mezz ‘ lenders in the Canadian business financing environment ?



We often speak to clients about ABL - true asset based lending , and they can definitely be forgiven for sometimes mistaking that form of financing with true cash flow finance and mezzanine lending in Canada offered by a small number of commercial lenders . Let's explore some of those key differences in true cash flow lending.

It clear to us that part of the confusion lies in the fact that a number of different types of lenders are inter mingled in offering mezzanine lending and financing services in Canada .They might be Canadian chartered banks, in a small handful of cases those some ABL lenders that are causing us confusion differentiation are also offering cash flow loans in addition to their asset financing service . And firms not commonly known to many medium sized businesses in Canada, such as hedge funds, private equity firms etc also make up our mix.

Cash flow finance loans in Canada are true loans, unlike ABL services which are simply the monetization of current and fixed assets. Cash flow financing in Canada is about all those things we threw out the door when we spoke of ABL financing - things such as your firms total value, profitability multiples, and cash flow coverage.

Mezzanine and cash flow lending amounts are related directly to Ebitda and multiples thereof. Depending on the size of the transaction , who is doing it, and your overall credit worthiness within your firm pricing is very competitive to traditional Canadian chartered senior bank debt financing, but can also run into the ' teens ' when it comes to unsecured cash flow loans .. Mezzanine lenders register their 2nd place position but are clearly unsecured, resulting in that difference in pricing when it comes to a senior secured cash flow loan.

In ABL financing we speak of your firm’s ability to first of all have assets, and secondly your ability, together with your ABL partner to monitor and report on those assets. That isn’t the focus in cash flow finance and mezzanine lending, so you clearly should expect those periodic and sometimes expensive audits.

While many ( but certainly not all ) clients entertaining asset based lending in many cases have significant challenges , cash flow loans are truly made to firms who have profits, cash flows, and strong financial fundamentals .

We would also point out that mezzanine lenders, because they are offering a hybrid type of financing often will ask for some sort of equity ownership, usually in the form of a warrant .. ie a right to purchase some equity in your company .

How does a firm know if it qualifies for true cash flow finance? Simply put, as we have said, your firm must be generating significant cash flows. Your borrowing ability will be related very, and we repeat, very directly to the amount of historical and projected cash flow you generate.

To successfully generate a cash flow finance or mezzanine loan you need to have a strong sense of the limited Canadian market in this area of business financing .Having a solid handle on your cash flow coverage and leverage ratios is key.

We've therefore demonstrated some of the key differences between Asset Based Lending and Cash Flow and Mezzanine Financing and lending in Canada. When considering this type of financing speak to a trusted, credible and experienced Canadian business financing advisor who can assist you to navigate this little know sector of business finance 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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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

5 Things You Didn’t Know About The Government Small Business Loan In Canada - SBL Federal Loans Info




Use This Info For The Payoff in Canadian Small Business Financing

Information on common questions surround the government small business loan in Canada . How do these federal loans work and what must business owners need to know to maximize the program .



Can we ask you a simple question? Actually, if it’s ok with you, we'll ask 5 questions, and we trust and hope you will gain some valuable knowledge about the Canada government small business loan. Federal loans under the CSBF / BIL program could be your secret weapon in Canadian business financing.

Ok, so let’s get the questions out of the way first and onward to those answers! Here are our 5 key shares around the program based on questions we continually get from clients.

Why should we finance equipment with federal SBL loans? What are the basic requirements of the program? Can the government small business loan be used to refinance business debt? Can we use the federal loans program for cash flow and working capital? And finally can we purchase a business via the SBL loan?

Great questions, and now hopefully some surprising answers! Here we go.

Equipment and lease financing in Canada are solid alternatives for the financing of your asset acquisitions. Numerous lease finance options are available, so why does it make sense to use the SBL program for equipment financing. For a start the small business loan program in Canada finances 90% of your equipment financing needs, the other 10% comes in the form of your down payment, which the program refers to as your equity in the transaction. Numerous lease scenarios may require either larger down payments, first and last monthly payments in advance, and in some cases might have a higher level of credit due diligence requirements .Equipment can be financing on terms up to 7 years, and typically that type of term may not be available through lease financing scenarios.

So what about those basic requirements of the program? The government small business loan requires the aforementioned 10% owner equity in your financing. Business owners and your business should have a reasonable credit history; you also should be ready to prepare a simple cash flow forecast that allows you to demonstrate repayment of the loan. Typically no other collateral is required for federal small business loans in Canada. We determined over time that it makes great sense to be able to properly demonstrate that you have sufficient management experience in your business and industry, whether you are a start up or an established firm.

On to our third question - can you utilize the loan to refinance existing debt .The short and simple answer is that any debt you wish to refinance in terms of equipment, leaseholds, software, real estate, etc can be financing within a 6 month window. Example - if you bought a major piece of equipment 5 months ago it can be refinanced under the program, bringing additional cash flow and capital into your business.

Can the program be used for cash flow and working capital? Simple answer = No! Unlike the U.S. equivalent of the program the government small business loan is massively understood by many, thinking it’s a cash flow loan. The program only funds equipment, leaseholds, and real estate.

And on to our final question. Can you purchase a whole business via SBL federal loans in Canada .Categorically yes if the business purchase is within the government loan cap you absolutely can purchase a company, competitor, franchise, etc using this program? Some very basic steps apply, including an appraisal of the business you are buying for example.

Well there you have it, 5 answers to common questions we get from clients everyday on Canadian government small business loan. Want more info, or wish to explore other issues pertaining to your financing needs around this great program? Seek and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing benefits of the program.


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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/government_small_business_loan_canada_loans.html

Friday, August 19, 2011

Within 30 Days You Could Have The Business Loan For Your Franchise Finance Funding For Your Franchise Investment






Here’s How Franchise Financing Works In Canada

Information on franchise finance funding in Canada . How you can complete a business loan financing in 30 days or less using established criteria for financing success .




They say timing is everything in business. So, if that’s the case then how much time do you need for franchise financing funding for a business loan when you've made ' the leap '?

By the leap we are of course referring to one of the larger decisions in your life - buying a franchise and starting the new life of an entrepreneur. In some cases you may have already owned a business, or in the majority of times you are transitioning from company life to your company life!

Your chances of financing are positive if only for the reason that the industry as a whole is perceived as having established business models that don’t require the chance or large advertising expense that many other new start ups would .

So while a lot of the ' keys to success' are already in place the only one that isn’t in place is of course a business loan for your financing! Although that business model is there remember also that you have additional issues to address outside the norm of buying any other non franchise business - things such as franchise fees and royalties.

So how do you fund your franchise start up, or alternatively the purchase of an existing franchise that the current franchisee wants to sell? (Don’t forget to ask him why he or she is selling!)

In 99% of cases we see you can almost certainly expect no direct financing from your franchisor - they want new franchisees, not loans on their books.

So do banks in Canada finance franchises, because going to a Canadian chartered bank or credit union is where logically most of our clients first seem to go? Well the answer is threefold, yes, no, and maybe. From the maybe perspective we suppose if you have an ultra strong net worth, long time bank relationship that you might in fact receive some sort of direct financing from the bank. But the reality is that really doesn’t happen in Canada.

So are the banks out? Not really, because they are the administrators of the government BIL program which funds thousands of franchises in Canada. While the BIL program was not tailored specifically to franchising in Canada it certainly has become a poster boy for the franchise industry.

So, could you actually complete a financing in 30 days, as we have noted? Absolutely, positively, yes. In fact many financings we've completed have been done in less time based on a few key things being in place.

First of all, find a banker. Not hard you say... there are thousands. Well the reality in our experience is that only a small subset of bankers understand the program and have the ability to execute on a BIL franchise loan quickly, and effectively, and by effectively we mean approval.

Rates and terms of a franchise BIl are exceptional considering your business is in effect a start up. Additionally the amount of funds you have to permanently commit is in the 10% range, so what could be better than that. We recommend to all clients that they set up their own investment as a shareholder loan on their books, so therefore you and the bank BIl are the main creditors of the business.

To properly complete franchise finance funding in Canada you need to address your start up costs, as well as your working capital. Don’t forget also to give some thought to the long term growth of your business from a cash flow and working capital perspective. Additional financing for franchises in Canada often comes from specialized equipment financing or a term loan for cash.

A business loan for a franchise is completely in a timely fashion when you have a crisp business plan, cash flows that make sense, and a solid story around yourself and the franchise. Being prepared on such key issues as documenting your own background, identifying the amount of funds you will put into the business, and being able to highlight your business skills and personal credit history all need to be addressed.

So, 30 days or less? Absolutely possible. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you to meet your franchising finance 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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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



Thursday, August 18, 2011

Heard Of The New Paradigm Shift In Business Lines Of Credit ? ABL Asset Based Finance Is Changing Canadian Business Financing




Why Asset Based Lines Of Credit Give You A Commanding Lead in Business Financing

Information on ABL business lines of credit in Canada . Why Asset Finance lending & Financing give you an ‘ all in one’ credit facility.



We're sometimes reminded of the old bank joke concerning the sign on the bank window that says ' We can loan you money to get completely out of debt ‘...! Anyway... sometimes achieving the business financing you need isn’t always about debt. We're talking in this instance about a new paradigm shift ' in business lines of credit - namely ABL asset finance financing.

A paradigm shift is defined as ' acceptance by a majority of a changed belief or attitude or way of doing things ‘. That’s why we couldn't think of a better way to describe why ABL asset based lines of credit might be the solution for you business financing needs.

Can we all agree that it has been more challenging for Canadian business owners and financial managers to access the commercial line of credit financing they need to grow or simply survive in their business? Often times an ABL facility can be the solution that becomes what we could call a ' double whammy ' - it clears up a lot of current challenges and then focuses on the financing to grow you company .

What could those current challenges be then? It might be converting some senior secured debt into party of your new revolving credit facility, of paying off any arrears that you have with either suppliers or the big guy... aka Canada Revenue Agency!

ABL asset financing is a non - bank asset based line of credit that becomes your new ' revolver' line of credit. Typical facilities secure receivables, inventory, and in some cases can include fixed assets and real estate as party of your facility. That’s a powerful combination as you can imagine.

So where does our paradigm shift come into play? Simply that whatever you may have thought about a Canadian commercial bank line of credit somewhat goes away in the context of ABL asset finance. Receivables tend to be margined at 90% (for A/R under 90 days) and healthy advances on inventory based on its real world values now - something that has been often difficult to achieve in the past for many Canadian firms.

And what about the credit criteria used to approve such facilities. Suffice to say that they are different! Companies that are growing quickly but only just recently profitable or perhaps who had a loss last year are still 100% eligible for ABL financing. In many instances even the issue of ' concentration ' can be dealt with...namely your reliance on one or just a few customers for a large portion of your firm’s revenues.

The paradigm shift for these newer business lines of credit in Canada is significant. Your assets, the size of the facility (facilities range from 250k to the tens of millions of dollars) or the industry you operate in can effectively be dealt with in Asset based line of credit.

Probably the most important benefit of this type of financing for Canadian firms is their ability to satisfy day to day working capital and cash flow needs while at the same time being able to satisfy order demand for their clients.

In many cases Canadian small and medium sized firms are financed almost totally by the owners , in effect self financing but limiting growth ABL non bank financing provides an all inclusive facility to address daily and long term needs, its as simple as that .

If your firm has good management, growing sales, and the ability to produce good products and services while at the same time maintaining good financial statements on costs, asset quality, etc you are clearly a candidate for the new paradigm shift in Canadian financing.

Speak to a trusted, credible and experienced Canadian business financing advisor on why it might be time for you to seriously consider the new paradigm shift in business financing - asset based lines of credit.



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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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


Wednesday, August 17, 2011

You’ve Got Working Capital and Cash Flow Problems – We’ve got Canadian Business Financing Loan Solutions !






Working Capital Management Finance Strategies


Information on working capital and cash flow financing solutions in Canada via a business loan or asset monetization strategy .How Canadian small and medium sized firms finance themselves today.


It becomes evident at numerous times in the life of a business that some form of outside financing is needed. Let's look at some of the situations that your firm finds , or might find itself in and what types of Canadian oriented working capital and cash flow financing business loan solutions are available.


Some times the best problem is the worst problem - by that we mean that you are growing and growing quickly. Alternatively many clients we meet are experiencing some sort of challenge - it might be a financial loss in the current or previous year. And most commonly it’s a case of financing those current assets, i.e. A/R and inventory to bring in liquidity to the company for normal ongoing operations.

Three solutions are available to the Canadian business owner of financial manager. They include taking on more debt (not optimal or often desired), bringing in a partner for additional permanent equity and working capital, or, our favorite ' Monetization ' (Back to that one later)

If your company is not leveraged, or should we say over leveraged and can handle additional debt that is not necessarily a bad thing. For the majority of firms and industries in Canada a debt to equity ratio of 2 or 3: 1 is generally viewed as acceptable by the people that count. (Banks and other lenders!)

Raising private equity for a small to medium sized business is generally difficult and challenging in the Canadian business climate. We've seen numerous clients take the public financing route via a reverse takeover or utilizing a capital pool... our simple observation on that ?... In general things never seem to work out! Let's leave it at that.

When studies look at how small and medium size borrowers really do borrow in Canada it probably isn’t shocking to our clients that a huge majority of debt comes from credit cards, the BIL Government loan, personal savings of the owner, loans from friends and family, , etc . Generally only 35% or so of business in Canada in the SME sector gets the financing they needs from traditional bank financing, due mainly to the requirements that Canadian commercial banks impose on company borrowers and their owners personally. (By the way, we love Canadian banks... its just that sometimes there is a better way)

We mentioned that working capital solutions for cash flow financing can come not from borrowing, but from monetization of current and fixed assets. That’s why be spend a lot of time with clients explaining the different benefits and costs associated with : bank lines of credit, non-bank lines of credit , a/r and inventory working capital facilities , true ABL ( asset based lines of credit) facilities , confidential receivable discounting .

In additional many previously viewed ' alternative solutions ' are becoming more mainstream everyday. They include purchase order and contract financing, tax credit financing, securitization, etc.

So, do you have a working capital or cash flow financing business loan challenge? Invest some time in real world Canadian solutions. Seek and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in addressing current and perhaps future financing challenges.



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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


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

Tuesday, August 16, 2011

The No. 1 Secret To Sales and Cash Flow Success – Offer A Canadian Vendor Financing Program & Customer Leasing Plan ! Sales = Cash !





Let Customer Financing Grow Sales, Profits, and .. oh yes .. Cash Flow!

Information on why a vendor financing program for your customers improves sales, cash flow and profits . Why a Customer leasing plan might make sense for your firm . A no cost growth solution for companies in Canada.




I am sorry, we'll have to remove it... no, we’re not doctors; we're talking about helping you remove one of the largest, if not the largest obstacle to innovation for your clients - the cost of your product.

How do we do that ? By recommending that you consider a vendor financing program for your customer base, a customer leasing plan that allows your clients to acquire and use your products while eliminating that obstacle to innovation we spoke of .. price!

Any Canadian firm that sells a product (or service for that matter) should consider a vendor leasing program for your clients. And boy are there some obvious benefits, not the least of which is to increase your sales. Just think of it, when you give your clients the choice of how to pay for your products and services their ability to pay over time via a customer leasing plan gives them significant flexibility.

That flexibility by the way comes in many forms. It includes removing your clients budgetary constraints if they are out of the budget cycle but still need your product, and secondly the pure cash flow outlay of small amounts over a 24 - 60 month period (those are typical lease terms) allows for your client to in effect match the benefits of your firms product and services with their real cash flow outlay. That’s important to the Canadian business owners and financial managers that are your clients.

Does offering a vendor financing program to your customers seem complicated. Its far from that... mainly because you dont have to form a separate financing unit within your company... instead you can simply work with a trusted , credible and experienced Canadian busienss financing advisor who can assist you by acting as an independent lessor , in effect an ' in house ' agent for your program . It does not get simpler than that. You in effect have set up an in house finance company to increase sales, at... yes... ZERO COST!

Let's recap some of those critical benefits to your new vendor financing program. We referred to both Sales and Cash previously. By offering financing to your customers you increase revenues by providing options otherwise not available to your client potentially. And, oh yes, lets get back to cash. Instead of waiting 30, 60, or even dare we say 90 days these days to get paid your firm gets paid as soon as your products and services are delivered and accepted by your client. And payment comes from your credible financial leasing partner, so no credit worries there!


We often refer back to a list we learned many years ago about what any customer considers an ' obstacle to innovation ' in the purchase of products and services. Surveys always indicated the cost was #1 on the list. So, bottom line, let a vendor financing program be your ' obstacle remover '; speak to that trusted Canadian leasing advisor today about initiating your program... 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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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

Monday, August 15, 2011

Cash Flow Financing - Why Canadian Factor Companies Just Became Your Best Bet For Factoring & A/R Sales Finance






Why Canadian Business Has Chose Non Bank Receivable Financing !


Information on factor companies in Canada –how does factoring pricing work and why have Canadian business owners and financial managers chosen this method of cash flow financing to grow their business.



One alternative to borrowing funds or raising additional ownership equity in your firm for cash flow financing is the solution provided by factor companies in Canada via accounts receivable financing / factoring.

This solution is becoming more and more popular and much of the mis information around this type of Canadian business financing is being cleared up and clarified properly as thousands ( yes thousands) of companies just like yours look for new business financing methods when the old ones either don’t work or aren’t available .

Let's focus on a couple of the main points that clients want to better understand when they consider cash flow financing via factor companies. Those two key points, if we had to sum them up, are: What is the real cost of factoring, and how does it work on a day t day basis?

In Canada it is somewhat safe to say that pricing on receivable financing is somewhat ' all over the place '. Rates range from 1-3% per month. So what drives that pricing then? The key areas that factor into factoring pricing are the size of your facility, the general overall quality of your Canadian and U.S. receivables, and the relative financial health of your firm as ' borrower'. We hasten to add that when you finance your firm in this manner you aren’t actually borrowing or taking on more debt... you are just ' monetizing'... or we could say ' cash flowing' your largerst current asset, which is typically receivables .

You can win with factor companies when you become in effect a ' educated buyer’... what we mean by that is it’s important to understand the Canadian landscape when it comes to who you are dealing with. There is an incredibly fragmented industry here, and it’s yours to take advantage of if you know how.

So who are the players in the industry, because it certainly would be a challenge if you had to investigate them all! as there are hundreds of firms. These firms are Canadian, U.S., and U.K. owned, some are major corporations, some could simply be called 'mom and pop' finance firms, and finally some are medium sized in nature and capitalization and are solid candidates to handle all your business financing.

With respect to how this type of financing works... our recommended preference is confidential invoice discounting... a term we give to factoring which allows you to bill and collect your own receivables , with no notice being required to apprise your clients of how you are financing your firm .

Typically, if not always the U.S. and U.K. firms doing business in Canada do not offer this type of financing. Your best bet is to seek someone knowledgeable in the factoring market and ensure you partner up with the right firm. That’s where working with an expert always pays off. Naturally if you have all the time in world to speak to and investigate hundreds of firms who might be a poor choice for this type of financing need then by all means... go ahead! And for the record we're jealous of that time you have on your hands in running a business!

Getting back to pricing on this cash flow financing method. Remember that you aren’t borrowing funds, you're selling receivables. So by utilizing this financing you're generating immediate cash flow every time you make a sale. You are not constantly ' re-applying ' for a new line of credit, similar to a bank scenario.

Canadian firms make best use of this financing when they have growing sales and fairly decent gross margins that allow them to absorb the financing cost. Your strong sales growth brings immediate cash; the fixed costs in your business generally remain the same... so the higher business volumes bring incremental profits to your firm

Our bottom line? As usual we encourage you to work with an ' expert’... so consider seeking a trusted, credible and experienced Canadian business financing advisor who can assist you in your cash flow financing 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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


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


Sunday, August 14, 2011

3 Obvious And 1 Not So Obvious Reasons To Consider Canadian Lease Equipment Financing For A Capital Asset Loan




How To Capitalize On Equipment Leasing In Canada

Information on lease equipment financing in Canada and what solid benefits Canadian business owners and financial managers can achieve via a capital asset loan financing program .



It's always a little easier to consider the obvious in business and business financing in Canada. Occasionally though we think it’s prudent for clients to ensure they consider all the benefits of certain methods of financing, some of which might not be so obvious. Let's clarify with respect to lease equipment financing in Canada, and why and asset loan or lease for capital financing purposes is often head and shoulders above any other financing alternative .

It's a given that you want to ensure any financing decision has solid reasons and benefits prior to entering into the transaction. In Canadian equipment finance the ability to finance between 90 - 100% per cent of the asset, as well as additional miscellaneous costs is clearly a huge, and obvious benefit.

In the past we have often referred to lease equpment strategies with a phrase we always thought was quite powerful... it’s simply as follows - Asset loan and capital lease financing helps you overcome ' obstacles to innovation '.

Because quite often when we sit with a client the cost of an asset acquisition is in fact the largest obstacle to innovation and growth within their firm. Simply put, if we had all the capital we needed we probably would always by the best (most expensive) fixed assets for our business.

Let’s get back to that 90-100% financing. Although many lessors tout the fact that lease finance in Canada is 100% financing the reality is that on many occasions clients are asked to put down a down payment of security deposit on the lease finance transaction. We would point out though if your firm has very good commercial credit and financials and cash flow that support your transaction you should in fact focus, if not demand! 100% financing.

So, on to our 2nd obvious reason to focus on lease equipment financing asset loan/lease. It’s all about the term. The term of course refers to the length of your lease... it can be long to ensure lower payments and reflect the assets useful economic life, or it can be shorter it means getting an approval vs. not getting one. We point out to clients that ,on balance, lease terms of less than 2 years to not make sense for the lessor... so don’t focus on too short a term!

We heard a rumor the other day... that being that ' cash is king’! If you subscribe to that rumor then equpment financing is for your firm, reducing cash flow drain and be adjusted for seasonality, delivery issues, or simply staggering payments to ensure your match benefits of the asset with cash outflows.

Those all 3 very obvious, and often discussed benefits of asset financing via leasing in Canada. We have focused on who you are dealing with, which is one of the hundreds of equipment finance firms in Canada. So our ' not so obvious ' point today is simply that by not dealing with banks , insurance companies, hedge funds, etc , all of which might hold other security over your firm you are in effect freeing up the business credit than any firm so badly requires these days . And you can further expand that business credit by considering off balance sheet financing via operating leases, which make perfect sense for larger ticket items such as computers, aircraft, etc.

So as we have said, there are a number of ' economic ' benefits to leasing equipment in Canada. To further explore some of these obvious( and not so obvious!) benefits to your firm consider talking to an experienced Canadian business financing advisor who has a trustworthy, credible and experienced reputation in Canadian equpment finance .




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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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

Looking For Canadian SBL Loans From The Government For Your Business? There's No Substitute For Good Information!







Successfully working the Maze of The Government Small Business Loan


Information on the business loans from the government in Canada . Why the SBL small business financing program is right for your firm, if you know the approval process!



Boy do we get a lot of questions around the subject of loans from the government. The SBL (Small Business Loan) for your business just might be the ' tipping point ' between success and failure for the financing of your new of established business.

So why is this financing so great, let's help you clarify that question... and finally, there is so much mis-information about the program that we thought we would share with you the ' straight goods' on the program. Let's get started!
There is a feeling among many clients that it takes a long amount of time to get both approved and funded on SBL loans. That depends only on one thing... you! We make a strong point with clients that if they are prepared and can meet the fundamental criteria of the program then a relatively small amount of planning (with some expert help) can get you approved within a week or so. That’s a far cry from the weeks and months that many business owners and entrepreneurs tell us they have spent muddling their way through the program.
So why do we maintain that its a matter of days when in fact your own experience might be otherwise .Enter the Boy Scout Motto ...' Be Prepared'! If you spend a bit of time ensuring you qualify for the program (we’ll share those qualifications in a moment ' then the preparation of a simple package of info confirming those qualifications will get you to the goal line. And by goal line we mean loan approval and funding.

Qualifications for the program are as follows - you must be a Canadian citizen or eligible to legally borrow in Canada. You also need to have a reasonable personal credit history. Banks that administer the program for the government use a scoring system from the credit bureau, and if you have the pre requisite score that helps ensure approval.
You should also be prepared to detail your financing via a business plan or strong executive summary. If you don’t have the ability, experience or time to prepare such a document then one can easily be prepared for you by an experienced Canadian business financing advisor.

And what is in that ' plan’... it’s not as complicated as you think. It's info regarding yourself, your business experience, the asset or assets or business description you are financing (it can be a restaurant, manufacturing equipment, a purchase of a business, etc). Most importantly we feel is the financial plan you attach to your request.

The financial plan should show the sales, costs, and cash flows of the business... with emphasis on reality and conservatism and ensuring the cash flows show good repayment of the SBL business loan. SBL loans from the government are administered by the bank and both the bank the government (for some reason!) wish to see that they will be repaid!

So our bottom line is that with some expert info and assistance you can be sure that you have a very strong chance of being approved for the government small business loan. We encourage all clients to investigate the program, as rates, terms and structures are excellent for any small to medium sized (Sales under 5 million) business.

Ever felt that some expert assistance in any aspect of your business can get you to where you need to be faster? Seek and speak to a trusted, credible and experienced Canadian business financing advisor who can show you the fast track method of achieving approval on SBL loans from the government for your business venture.



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 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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