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, May 31, 2012

Can ABL Financing Be Your Business Finance Peace Of Mind ? Getting Comfortable With A Revolving Credit Facility


Is An Asset Based Line Of Credit For Your Firm . It May, and May Not Be!

Information on ABL Financing in Canada . Why an asset based revolving credit facility might be your business savior .



ABL financing, basically a business revolving credit facility, has the ability to provide a significant amount of ' peace of mind ' when it comes to the worries and challenges that confront business owners and financial managers.

And that doesnt matter whether you are a start up or a major Canadian corporation. And everything in between. Because that's who is using asset based lines of credit these days.

But is ABL finance right for your firm? Let’s discuss, and recap. Companies who consider an ABL facility find themselves constantly challenged by understanding what is happening to their cash flow.

These days you may, or may not have a current secured lender in place to handle those financing challenges we're talking about. One aspect of deciding whether to go the Asset based revolver route is often some sort of seasonality - we can call them ' bulges ' in your business.

That seasonality, those ' bulges ' drastically affects cash flow and income, which can fluctuate wildly in any company. The asset based line of credit allows you to generate cash flow during those bulge periods, while at the same time allowing you to keep your operating and debt service obligations up to date.

That's of course critical when you are wrestling with fluctuating working capital situations.

Timing of cash flows in business is paramount. The three things that almost always affect your timing in working capital and cash flow in business are receivables, inventory, and , on the other side of the balance sheet, payables.

Asset based lending via an ABL financing business line of credit often can provide the solutions when the door is closed at Canadian chartered banks for firms that don't meet bank criteria. It's a case of a business having a high potential for viability and growth, but has less than stellar income statements and ratios typically required by our banks in Canada.

So how does a company get the door open to financing when they have been locked out by more traditional solutions? The answer is an ABL revolving credit facility, focusing on assets that when properly monetized, can enhance the cash flow situation.

ABL therefore becomes a ' smoothing out' solution because you draw down on cash flow, daily, as needed, based on your assets and sales/receivables. It also can be used; by the way to assist in the financing of new fixed assets, or even buy a competitor .It's those assets that help the strategy work.

ABL financing works because it applies higher borrowing formulas to your business assets. Companies that are in service or non intensive capital industries will always be a bit challenged in an ABL revolving credit facility simply because the main asset monetized are only receivables.

Other challenges in getting a proper asset line of credit in place might be the type of inventory you carry, or any specialization attributed to your assets or industry.

So, right for every one. Perhaps not. But if you have A/R, inventory, receivables, purchase orders and are looking for a new way to monetize those assets ABL financing might be the business revolving credit facility for your firm. And peace of mind? As the commercial says ' Priceless'.


7 PARK AVENUE FINANCIAL IS AN EXPERT IN ABL FINANCING





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/abl_financing_revolving_credit_facility_business.html



Wednesday, May 30, 2012

Golden Rules For Financing A Business In Canada . Working Capital and Debt Solutions .. That Make Sense !





Debt and Cash Flow Solutions And Tips For Canadian Business

Information on financing a business in Canada . What working capital and debt solutions make sense for your firm, and why .





Financing a business in Canada. A challenge? Let's just say that's an understatement when it comes to working capital, debt, and ongoing management and recognition of finance problems and opportunities.

Are there some ' Golden Rules' we could follow. We think so.

One of the golden rules of business finance is to ensure that you properly match short term debt and long term debt appropriately. Each of these two has its own benefits and potential disadvantages. Is one better than the other? Not really, it’s just that it’s a case of making adjustments and staying ' in tune ' with what needs are appropriate or required at the right time.

It certainly hasn’t escaped us that not only is it difficult when it comes to financing a business in Canada to manage internally, you of course have to stay in tune with what’s happening in the economy, your industry, and dare we say, politics! Talk about a full time job.

A lot of your financing will probably come from external financial solutions. They might include bank debt, working capital term loans, receivable finance, inventory finance, equipment leasing, and monetization of tax credits. However, you also generate cash internally, and you need to know how to measure that.

When you assess working capital or debt needs you need to be in a position to focus on cost, risk, and what that financing does to your balance sheet? All of those must be taken into consideration.

Also consider your current capital and debt structure and how your balance sheet will look after financing is completed. As an example, something to think about is that working capital and cash flow can be generated through monetization of assets - this doesnt really bring debt to the balance sheet, so you've achieved your goal without increasing debt.

On occasion it’s important to discuss any taxation impact on your financials with your accountant, as there are both positive and negative aspects to debt and tax.

If your firm is mature and operating efficiently you’re in a position to access all sorts of traditional financing. The other side of that is alternative finance, which works just as well but might be more costly on occasion - not always, but sometimes.

It's hard enough to access financing but choosing the right partner is a struggle in itself sometimes, ensuring that the funding source will be with you in tight markets and good times. Apparently those two fluctuate over time. The 2008 worldwide debacle caused many finance firms to disappear or implode, causing havoc among thousands of businesses in Canada, whether you were a start up or large corporation!

One solid GOLDEN RULE of business finance is to be proactive when it comes to access debt solutions and working capital. You might even have to make the tough decision around diluting equity when there it too much debt on your balance sheet. That’s a costly one.

A great GOLDEN RULE is to have a solid sense or understanding of how outside forces can affect your company's financial viability. If market conditions are continually volatile you clearly need to focus on longer term stable financial solutions.

Constantly stay on top of your cash flow planning , and if you want to understand what solutions are available for financing a business in Canada speak to a trusted, credible and experienced Canadian business financing advisor ,





7 PARK AVENUE FINANCIAL IS AN EXPERT IN CANADIAN BUSINESS FINANCING





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_financing_a_business_in_canada.html






Tuesday, May 29, 2012

Here’s Your 7 Objections To Equipment Lease Financing And Why You Just Might Be Wrong About Leasing Companies In Canada !

Canadian Business Financing With The Intelligent Use of Experience




Canadian Equipment Leasing – You’ve Waited Long Enough


Information on common objections and misunderstanding regarding equipment lease financing and leasing companies in Canada .



Equipment lease financing and leasing companies in Canada. For almost too long that we remember we've heard objections from Canadian business owners and financial managers around whey they don't use or recognize the benefits of lease finance.

One of our old mentors in this segment of Canadian finance actually tabled these objections in a work he published. We thought we would dissect those objections with an emphasis on the Canadian leasing business, as his comments originally were general in nature; by we're Canadian, eh?

Objection # 1- Cash is king, and you like to pay cash and have pride in ownership. Well as our mentor noted, lease payments are made in cash also, it’s just that we've always felt that a smaller outlay of cash is better than a larger one in business. And if you've got ' pride of ownership ' in a depreciating asset, well .. that's your right!


Objection # 2- Lease pricing. The reality is that lease pricing in Canada is credit driven and that your rates are commensurate with your overall credit quality. In fact if you have bank quality financials you can actually receive lower rates than a bank term loan, certainly for larger transactions of good credit quality. We've been on the record that the overall structure and flexibility offered by leasing companies often far exceeds any rate differential in lease finance.

Objection # 3- You prefer loans. Well that may well be, but you are of course adding debt to the balance sheet under that scenario. Oh and by the way, when you choose a capital lease full payout scenario you are very close if not at the loan scenario. The true finance lease is essentially a loan for the full amount of the asset.

Objection # 4- You have had what our mentor called a ' bad experience '. Our point on this one is that you also may have a bad experience with a lawyer, accountant, or business or personal financial advisor. The reality is that you need to focus on partnering with a firm or individual that you trust when it comes to equipment lease financing in Canada. That goes for choosing a supplier, banker, etc. It's only common sense.

Objection # 5- Hell or high water. What? A Hell or high water clause in commercial leasing indicates that you are obligated to pay the full amount of all remaining payments in your transaction .What that, you want to change that clause. The reality is that with the proper negotiation a good lessor or leasing advisor has the ability to include in your transaction features that make sense to you when it comes to cancellation and pre-payment.

Objection # 6 - the proverbial down payment. You don't like it. Down payments with good credit quality are minimal or non existent when it comes to equipment lease financing as well as choosing the proper lessor.

Objection # 7 - The lockdown . Many clients tell us that are unable to extricate themselves from their current lease transaction in order to move on to a more appropriate one. A variety of tactics can be utilized to refinance and move on .They include at the very lease refinancing the existing lease combined with the new one.

Most lessees, your firm probably included feel their company and industry is unique. That may well be true, but ensure you speak to a trusted, credible and experienced Canadian business financing advisor. You may well find those 7 objections to leasing companies and equipment lease financing in Canada are somewhat... unfounded!


7 PARK AVENUE FINANCIAL IS AN EXPERT IN CANADIAN EQUIPMENT LEASING



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_lease_financing_leasing_companies.html





Monday, May 28, 2012

A Receivable Finance Working Capital Loan Facility Financing . Explained . Finally! 6 Things You Need To Know About Invoice Finance



What You Must Know About Factoring In Canada


Information on a receivable financing facility in Canada . Why does this type of invoice working capital loan work best for cash flow challenged firms .




Receivable finance in Canada can be a valuable strategy for Canadian firms in search of alternate finance methods... that work.

There are 6 things you need to know about this type of working capital loan (it’s not a loan per se), so let’s examine what you need to know about invoice finance in Canada.

For our first point we can simply that that we are sure there are thousands of Canadian firms who probably haven’t even heard of this method of financing their business. When that is the case you can clearly say that lack of awareness leads to a general misunderstanding on the benefits of A/R finance, how it works, and how it stands up against other forms of business line of credit financing.

Secondly, and we're the first to admit it, that lack of awareness sometimes seems to tarnish the image of invoice financing. 'How we could have not heard of this before, my bank never told me about it '... that’s a constant comment we get all the time. Coupled with that fact is a general image problem around receivable finance, in that there is a perception, sometimes, that your firm has to be in difficulty to use this finance strategy. There is nothing more incorrect than that, and the proof we offer up is that some of the largest companies in the world utilize this strategy as part of a sophisticated method to finance their corporations. Enough said.

Cost also factors into one of our key things you need to know. Because A/R financing isn’t a loan or term debt of any nature it’s priced a bit differently than the Canadian business owner and financial manager might think, as they associate an ' interest rate ' with anything to do with financing. In fact the way A/R finance is structured it is in fact an ongoing sale, at your option, of your sales invoices as you generate them. That sale is structured as a discount purchase by your financing firm partner and in Canada typically is in the 2% per month range, sometimes less, sometimes more. So on a 10,000 $ invoice as an example you pay 200$ if your terms are thirty days and the account is collected within terms.

The bottom line is that A/R finance pricing is in fact a huge stumbling block to many clients, but only when they don't understand it.

Our fourth point is that if your sales are in a downward spiral this method of financing doesnt necessarily works, because in an invoice working capital financing strategy such as this your only liquidity is in fact your sales. If they’re growing, great, if not your flexibility to generate cash flow is diminished.

Point 5. Not every business sector in Canada can utilize our strategy. If you're in a Business to Consumer model retail/consumer receivables can't really be financed. And similar to business banking credit underwriters do attach a certain amount of risk to different industries which fall in an out of favor, or are constantly out of favor!

Finally, complexity! That's our 6th point today and we think its easiest one to fix. Yes, if you haven’t heard of the strategy around receivable finance then it might seem complex. Picking a partner is even worse perhaps , What firm is best for you as the lay of the land is littered with U.S. and U.K. firms, small Canadian firms, larger corporations domiciled in Canada. Some or limited by size of financing you require, or their geographical location.

Also, who is going to give you the straight goods on which method of invoice receivable finance works best (We favor confidential A/R finance), how pricing is determined, and how the facility works on a day to day basis.

The solution? Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in crafting the facility that meets your working capital financing needs.


7 PARK AVENUE FINANCIAL IS AN
EXPERT IN RECEIVABLE 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/receivable_finance_working_capital_loan_invoice.html






Sunday, May 27, 2012

Making Moving Pictures ? Tree Barking Wrong Up? Talkies? Cartoons? Canadian Film Tax Credits Do The Job! Let The Movie And Video Production Tax Credit Finance Your Project



Let The Production Tax Credit In Canada Finance A Significant Majority Of Your Budget

Information on Canadian film tax credits. How the production tax credit for video, movie , and animation projects finances a significant portion of any budget



Canadian film tax credits for film, video, TV, and animation. Can the Production Tax Credit solve the mistaken emphasis that producers and project owners sometimes find themselves in as they try to put together the ' money machine' required to finance their project .

Financing television, movies and animation / transmedia projects has certainly changed from the days of our aforementioned ' talkies' and ' cartoons'... that's for sure.

We're pretty sure that the majority of producers and owners of projects worldwide by now have heard that that Canadian film tax credit system seems by far one of the most sought after methods of making a film in the world. Canada's stable economy, sound financial system, as well as its diverse geography make it a solid choice to film or produce your project.

And let's also not forget Canada's diverse geography which lends itself to numerous genres of entertainment. Specifically in the world of animation and transmedia Canada's developers are again ' sought ' by producers all over the world. Bottom line, Hollywood and Vine often quickly becomes Yonge and Dundas for those familiar with Toronto Ontario's major downtown intersection.

So what is the Canadian film production tax credit? We suppose we can't disagree with those that call it a ' government subsidy ' - but for anything form of finance that might cover 30-50% of your entire budget we're not going to quibble over semantics. ‘Show me the Money ' and ' Go Where the money is ‘clearly has project owners flocking to Canada.

Any form of business financing is difficult. Film and animation finance certainly has it's challenges , so if there is a vehicle that finances , on a non payable grant basis a very significant part of your project when it comes to the ' below the line ' portion of your budget.

And our key point today is that tax credit can be financed, or sold, as long as you have a clean chain of title. The technical term for the non payable tax credit is the ' FILM PRODUCTION SERVICES TAX CREDIT '. Although some of Canada’s ten provinces change the formula a bit regarding percentage of allowable credit the bottom line still is that the tax credit is hefty in anyone’s view.

We are often asked how the tax credit is calculated. It's essentially a percentage (as we referred to above) and point system based on the amount of Canadian talent and ' spend' on your project. That amount is best, in fact only determinable by a good entertainment tax account who applies on your behalf for your certification. That’s why over the last ten years well over 2000 projects have been done in Canada under the genres of film, TV, animation, and the new kid on the block, ' Transmedia '.

One Hollywood entertainment critic maintained that the even broader appeal of the Canadian film tax credits was in fact Canada's ' depressed loonie ‘, i.e. the colloquial term for the Canadian dollar . While the dollar was very weak against the U.S. dollar for a long time it now has essentially parity with the U.S. dollar, so that certain eliminates that logic for the present time.

The financing of your production tax credits is a simple process if you've got a solid team in place when it comes to being able to demonstrate you have covered off the additional debt and equity required by any project . Film tax credits can be cash flowed at the end of your project, or during, allowing for solid working capital and cash flow enhancement.

Speak to a trusted, credible, and experienced Canadian business financing advisor who can assist you in the preparation and financing of your financeable Canadian film tax credits. You'll find it reduces a lot of stress and won't have you ' tree barking wrong up ' when it comes to putting your project together from a finance perspective.





Call 7 Park Avenue Financial for Film Tax Credit Financing






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/canadian_film_tax_credits_video_production_movie.html



Friday, May 25, 2012

Financing A Franchise Business . Behaving Properly With Franchising Lenders In Canada!



Canadian Franchise Finance - Got a Strategy?


Information on financing a franchise business in Canada . Do’s .. and Don’ts ! of Canadian franchise finance




Financing a franchise business in Canada requires in our opinion a certain measure of ' good behavior ‘when it comes to dealing with franchising lenders.

What do we mean by that? Well ' behavior ' in the sense that it’s important to understand where your lender / lenders are coming from vis a vis their expectations on your transaction and what they expect. In our opinion once you have a certain measure of respect and understand the requirements and some of the lender psychology behind the transaction you'll be better off. And by ' better off' we of course man your chances of final approval increase substantially.

Most franchisees in Canada quickly realize that after they have made the decision to purchase a business within the Canadian franchise environment that they don't have all the capital to complete a transaction themselves. They require financing of some sort. That's when they typically start talking to financial sources and often seem overwhelmed around the requirements they might be asked to fulfill to complete a transaction.

Even the personal guarantee can often become an issue with the franchisee applicant. And that leads to thoughts about whether in fact a personal guarantee is in fact always required on a franchise transaction /

Although you might assume that the franchisor and lender might be working hand in hand on your transaction this is rarely the case, certainly in any direct manner.

What your franchisor can do however is to provide some measure of guidance on how other franchisees have in fact completed transaction within their chain. So whether you go to a bank, a private commercial financial institution, or one of a myriad of independent finance firms who can assist you we can categorically say it's up to you to do your homework on the requirements for financing.

So, where are those franchise lenders coming from when they are looking for a bit of respect and good behavior around their requirements .? A good start is simply to understand that no franchise in Canada is financing on the 100% OPM principal. OPM is of course ' other people’s money '. So you need to understand the lender had an immediately expectation that you are bring a down payment / equity scenario to the table.

Unless you are getting direct financing under the government small business loan you should be totally prepared to provide good disclosure on your personal net worth and credit history. While the majority of franchises, in our opinion, are financed under the Government SBL loan program the reality is that also requires a decent personal credit history and solid evidence of net worth commensurate of course with the size of the franchise you're purchasing g.

Credit and character go hand in hand so the expectation from franchising genders is that you got some solid business or industry experience and that you present yourself properly during your submission process. This includes having a crisp, solid business plan for your new business, as well as other standard supporting documentation required when you're financing a franchise business in Canada.

So, is there a bottom line? If there is one it’s pretty common sense oriented... namely understand where lenders are coming from in their requirements to franchise your business and your ability to professionally supply that info, and understand why they require that information will go a long way towards franchise financing success.

Speak to a trusted, credible and experienced Canadian business franchising advisor for assistance with your franchise proposal, with a focus on 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/financing_a_franchise_business_franchising_lenders.html


Thursday, May 24, 2012

Can ABL Finance Eliminate Sleepless Nights ? Here’s How An Asset Based Lending Business Line Of Credit Can Help



Looking For A Solid Business Line Of Credit?


Information on why ABL asset based lending is the business line of credit of choice for Canadian firms looking for business credit alternatives .




A cure for sleeplessness? Well, we're not really saying that ABL asset based lending via its business line of credit facility is your cure to what we might term as ' business insomnia ', but we do meet many Canadian business owners and financial managers who profess to have some sleepless nights worrying about how to finance their business on an ongoing basis .


So why then is an ABL facility a solution to less worrying about Canadian business financing. It's important therefore to understand what asset based lending vis a vis a business credit line is, and why it's getting more broad appeal everyday in Canada.

ABL is a secured credit facility collateralized against various assets of your firm. You essentially borrow against all those assets under that collateral facility. So the question then begs to be asked, ' why is this any different than a facility from a Canadian chartered bank?" It's a reasonable question, and the answer we guess is two words ' more ' and ' easier. By that we mean that 9.9 times out of ten you are going to be able to achieve much more liquidity under an asset based business line of credit. And with respect to ' easier ' the asset based lender focuses on assets, not cash flows, covenants, ratios, outside collateral, etc.

The assets that you typically borrow against are inventory; accounts receivable and any fixed assets such as plant, machinery, etc that aren't already encumbered by another lender or lessor.

How then does this business credit facility generate more financing for your firm, or perhaps a better expression is the potential ability to generate additional cash flow . The answer is that it's all in the margin, because typically your business A/R is margined at 90%, unlike the bank 75%. Inventory and assets are appraised at the commencement of your facility and you can enjoy significant draw down ability with them anywhere typically form 0-70%. (Every business/industry is a little different, so borrowings differ according to type of inventory, asset, industry, etc)

Essentially, as we have demonstrated, the assets in your businesS form the borrowing base for all ongoing borrowings. You can hopefully immediately see that you have much greater access to liquidity and that as your business grows so does your facility. Clearly we have demonstrated that your sales growth is automatically funded by that commensurate growth in client receivables and inventory if in fact your firm has an industry position.

There are various technical aspects to how your ABL business line of credit is monitored and funded. Areas of concern to the ABL lender include warranty returns, credit notes, and inventory composition re raw materials, work in process, finished goods, etc.

We strongly encourage you to take a hard look at ABL credit as your key working capital revolving facility. Will you sleep better? We hope so, knowing that your business is financed properly and poised for growth and profits. Speak to a trusted, credible an 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/asset_based_lending_abl_line_of_credit_business.html








Tuesday, May 22, 2012

Are There Disadvantages To Lease Financing Assets In Canada ? Equipment Finance Pro’s And Con’s



Comparing the Disadvantages of Equipment Finance to Benefits Of That Same Strategy


Information on potential disadvantages of lease financing equipment asset in Canada and how business owners can address these to maximize benefits .




Disadvantages to equipment lease financing in Canada? Say it isn’t so Joe!
It's not really ' disadvantages' we're talking about, perhaps the better choice of words are ' things to be on the lookout for '.

No one is more bullish on lease finance in Canada then us when it comes to financing business assets. When we talk to clients about the pros of lease of this popular method of asset acquisition we probably sound like a broken record.

It's all about cash flow preservation, 100% financing capability, leaving your other sources of credit undisturbed, tax and accounting benefits, and ownership rights along with the obligations. Anyway, suffice to say you can put us in the bullish column when it comes to recommending this method of Canadian business financing.

But, back to those ' disadvantages', or as we said, things to properly look out for. As much as we hate to say it, we don’t think we'll ever get our customers focused off of the issue of the rates and cost inherent in lease finance. Customers who perform a lease vs. buy analysis may well find that purchasing an asset with cash, or entering into a bank term loan may in fact some cost advantages. For the record we have never seen a big disparity in any lease vs. buy analysis when it comes to that decision at the fork in the road.

However, as we said, Canadian business owners and financial managers do often focus just on cost, rate, low monthly payment, etc. All we say is simply it's never ' just' about the rate; it's also about the flexibility, ease of acquisition, etc.

Another thing you have to look out for is the loss of ' salvage ' value when it comes to the end of the term of your business equipment lease... At the expiration of your term in a business lease, unless you have properly addressed the issue the equipment may belong to the lease company. That's clearly a disadvantage, IF ... you don’t address the issue by properly constructing a lease that mirrors your choice of ownership at the end of the term.

How can that be done? Pretty simply actually. You can eliminate the loss of ownership ' disadvantage ' by simply ensuring you have a purchase option at the end of your lease term, or , alternatively, you can opt for a true operating lease and invoke on of the rights you have at the end of that transaction . Those rights are buy, extend, or purchase at a fair market value or pre agreed amount.

One of the most popular again types of equipment lease financing in Canada continues to be the sale leaseback. It's a case of monetizing assets you own already by leasing them back to your firm. However if the tax base of the asset is below its sale price you might have to pay or record some sort of capital gain. Talk to your accountant guy about that one! Just in case.

Other disadvantages? Well, as we said, we're not necessarily pitching them as disadvantages, just things to look out for. So other areas you want to focus on are your obligations in the lease, which pays the insurance, are there any restrictive covenants, etc.

Finally, who to deal with? In Canada lease finance can be accomplished via a number of partners. They include bank lease co, specialized commercial finance firms, captive manufacturers, insurance companies, etc. To wade through any potential confusion disadvantages consider seeking and speaking to a trusted, credible and experienced Canadian business financing advisor who can ensure you're ' accentuating the positive ' when it comes to lease financing of equipment assets 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/lease_financing_equipment_canada_assets.html


Monday, May 21, 2012

5 Advantages Of AR Accounts Receivable Finance In Canada. Using A Business Factor Funding Program Works.




Looking For Some Solid Benefits In A/R Finance In Canada?

Information on advantages of ar accounts receivable finance funding . How does a business factor program work.




Thousands of Canadian business owners and financial managers perceive AR Accounts Receivable Finance as a solid strategy for financing their firms. Let's examine 5 key advantages of this method of working capital finance. But first let’s take a quick step back and ensure we understand the product and the mechanics of this type of finance service.

The heart of the AR finance strategy is of course your receivables. This financing differs significantly from a bank loan or more commonly the Canadian chartered bank line of credit. What is that main difference? Simply that under a bank facility the financing is based on your firm’s credit worthiness, with the receivables being assigned to the bank as collateral.

The difference then? It's simple and basic. AR financing is not a loan to your company per se, instead its the purchase of your receivables, generally on an ongoing basis , This sale of ar, via our business factor funding arrangement enhances your cash flow and working capital .. Immediately!

One of the main points of confusion that we find continually exists around this method of financing is the pricing. While the bank facility charges your firm an annual interest rate (plus some miscellaneous fees here and there!) invoice finance is the sale of your A/R, at a discount, allowing you to receive funds and replace A/R on your balance sheet with cash, immediately as you make sales.

In general, certainly more often than not, invoice receivable finance in on a recourse basis, just as if you had a bank facility in place. Simply speaking, you're responsible for any credit losses. Purchase of business credit insurance can eliminate bad debt risk, especially if you have foreign or concentrated receivables.



Finally let’s get on to those advantages we spoke of. Here are just five of them, and if you are having challenges in accessing bank financing these advantages should have significant appeal to your firm.

First of all, it’s a classic short term funding strategy without additional collateral requirements or major emphasis on guarantees of the owners of the company.

The second advantage is timing, and we're firm believers that timing is everything in business. The hard reality is that invoice financing provides you with cash flow on the same day as you generate sales. That shortens your overall credit extension cycle by... you guess it, 100%.

Our third advantage of AR Accounts receivable finance is simply flexibility. No debt goes on your balance sheet, you’re just monetizing assets and funds can be used for any general corporate purpose.

Our 4th advantage is somewhat of a double edged sword. Traditional AR finance in Canada has the busines factor funding your receivables as an extension of your credit department. We would point out that under the right circumstances your firm can acquire a confidential AR Finance facility which allows you to do all the billing and collecting yourself. Bottom line, it’s your call.

Finally, if your firm as a lot of U.S. or foreign receivables invoice finance is a solid way to address this business challenge. Even the exchange rate is taken care of in this situation.

You owe it to your yourself of check out and understand AR Accounts receivable finance in Canada. Do any of our listed advantages make sense for your firm? If so, speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in the solution for a proper facility.







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/ar_accounts_receivable_finance_business_factor.html

Sunday, May 20, 2012

Overlooked Leasing Equipment As A Source Of Business Finance ? Lease Financing Works. Here's Why!




Don’t Forget One Of Canada’s most popular business finance mechanisms



Information on leasing equipment in Canada. Canadian firms can utilize lease financing as a valuable source of business finance and funding.



Overlooked? You tell us, but we're never more amazed at why leasing equipment is such an often overlooked source of business financing in Canada. Here's why we think the ' unconverted' need to reassess this popular method of financing their businesses when it comes to asset acquisition.

Hopefully you've got your short term working capital and cash flow needs sorted out. They might include bank lines, receivable finance, working capital facilities, asset based lines of credit, etc.

But what about long term capital when it comes to financing your needed asset acquisitions? It's an entirely different form of financing and you just need to know some solid basics when it comes to eliminating any surprises. Let's cover some basics.

In general Canadian business owners and financial managers need to only know there are basically two types of leases - operating and capital. But the difference between the two of them is huge! When you engage an operating lease scenario you essentially have no ownership or acquisition rights - think if it as leasing your landline phone.

A capital lease on the other hand is a non-cacheable commitment to make a series of payments over time for the purchase of the asset; it’s as simple as that. The usual (but not always' end result of a capital lease is the transfer of ownership of the asset from the lessor to your company.

Strictly speaking, leases are a form of long term debt, but depending on the type of lease you structure, and how it's structured it doesnt necessarily have to show on your balance sheet.

Why then do we think that many businesses in Canada overlook some solid advantages in leasing equipment? And what are those advantages?

First of all leasing as a source of business finance frees up working capital that you quite frankly could use in a more productive matter. A quick example is that if your lease rate is, say 7% and you can generate returns on profit in equity of 10%, as an example... well... enough said!.

Other methods of business finance as a source of financing often require hefty down payments - leasing more often than not is 100% financing or pretty close it depending on your firms overall credit quality .

Naturally if you utilize a business leasing equipment firm you are therefore not disturbing any other credit facilities you might have in place, such as short term revolving lines of credit. And again, with decent credit you don’t have to pledge other collateral and solid credits can often negotiate a limited or no personal guarantee.

Have we made out point? We hope so. Don't overlook lease financing as a valuable source of business funding. Speak to a trusted, credible and experienced Canadian business financing advisor on solving your asset finance need today.









Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 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/leasing_equipment_business_finance_source.html





Saturday, May 19, 2012

Don’t Make Mistakes In Sources Of Capital And Financing For A Canadian Business Loan. Debt Or Equity? What’s Best?




Financing Sources And Their Implications in Canadian Business Finance

Information on how the Canadian franchisee entrepreneur can be successful in franchise financing in Canada . Key elements for franchise loan approval .



You're looking for sources of capital and financing for you Canadian business. A Loan? An equity arrangement? A monetization of assets ? What works best is of course the nagging question that continuously faces Canadian business owners and financial managers.

Many Canadian businesses who contemplate equity type arrangements simply aren’t ready, and it’s also the most expensive form of financing when you consider the ownership dilution that comes with that strategy.

There is usually never an easy or obvious method to get rid of financial challenges. In fact if you're looking at bank financing, which is of course ' debt ' you may well find that the bank feels that more equity from yourself is in fact required in order to obtain that debt. That's a bit ironic sometimes!

Are there any tools available to help the Canadian business owner understand both the cost of debt and equity? There are, of course.

Whenever any Canadian firm looks for financing outside the business there is a cost to the owners. Naturally if you borrow in terms of term debt the additional interest financing costs reduce profits. Selling equity of course reduces no profit, but, and it’s a big one, ownership is proportionately reduced.

We are always preaching to clients that many forms of business financing outside of equity in act do not reduce earnings if in fact you're monetizing assets and have a healthy turnover in key areas such as receivables, inventory and fixed assets relative to overall sales. That’s why we're big proponents of strategies such as A/R financing, supply chain financing, asset based lines of credit, etc.

Earnings and cash flow analysis is a solid way of evaluating debt and equity alternatives.

What then are the key areas you should always focus on when it comes to debt vs. equity analysis? Some solid ones are overall risk with respect to your ability to make payments under any debt scenario.

And whether its debt or equity consider what flexibility you have with respect to any covenants the lender or equity partner might insist on. Always watch your leverage, there is only so much debt your firm can manage and handle.

The irony in either borrowing or looking for some equity is that you're usually in one of two positions, success, or failure! That one never escapes us, as we meet clients who are successful and have a need to finance new growth or expansion, of alternatively, they are currently losing money and have some real deficiencies in their company that need to be fixed.

When you are looking for debt you can be sure the lender will focus on working capital coverage, leverage, and operating efficiencies. Equity lenders will focus on management, growth potential, and why your business is unique.

If you want to properly understand available sources of capital when it comes to business financing, a loan, or an equity arrangement consider speaking to a trusted, credible and experienced Canadian business financing advisor.




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/sources_capital_financing_business_loan_equity.html





Friday, May 18, 2012

Good Bye Failure – Hello Success In Franchisee Financing In Canada . It’s All About Who And What In A Franchise Loan







Canadian Franchise Finance . Tips and Insights


Information on how the Canadian franchisee entrepreneur can be successful in franchise financing in Canada . Key elements for franchise loan approval .




Franchisee financing in Canada. It goes nicely hand in hand with our contention; we're often told that it’s now what you know, it’s who you know. However, in the case of a franchise loan we think that both of those count.

It is very easy to see the appeal of franchising in Canada. In many ways it’s one aspect of the entrepreneurial dream, in effect ' no boss'. But the amount of time, effort and knowledge in being successful is of course critical.

The cost of a franchise in Canada from an overall point of view can be anywhere from small to very significant, depending on the type of franchise you purchase and its perceived financial potential.

The reality is that many smaller service type franchises can be purchased for a few thousands dollars, going all the way to some that might require a total investment of debt and equity in the millions. And everything in between!

You can solve a lot of the challenge that come with buying and financing a purchase by simply surrounding yourself with a small expert team. Some of the team might cost you something, other parts of it, like some solid professional and experienced advice is pretty well free.

So who's on first? as the old comedic saying goes. Your team might well consist of mentors and peers in your own business and personal life, or a lawyer, banker, accountant, or business financing advisor. It's safe to say that pretty well all of your team, if they are the right person, will dispense some very solid advice for little or no cost.

We're often asked by clients if there is a difference between purchasing from a Canadian franchisor or a U.S. firm, given the U.S probably offers hundreds, if not thousands of additional opportunities to purchase.

Most potential franchisees we talk to want to limit financial risk when it comes to a franchise loan and franchisee financing in Canada. How can they do that? A couple of instant suggestions would be to ensure you are incorporated, which just makes common sense also from a tax and financing perspective. You do intend to generate a profit after all!

You also need to seriously consider the right amount of debt and equity you are prepared to commit to. Too much of both is generally not a good thing, not enough of either is pretty well the same story. Your equity contribution has to be based on what you can personally commit and temper that of course with what you could potentially lose in a business failure. But let's stay optimistic for goodness sake, right!

Thousands of franchises in Canada are financed by the SBL government small business loan. Formally it’s known as the BIL/ CSBF program. We recommend it to many clients simply because it also limits your personal guarantee on the loan, and has fantastic, yes fantastic ( in our opinion )rates , terms and structures, including that limited personal covenant that we just mentioned.

So, hopefully you agree. It's a classic case of both who and what you know. Speak to a trusted, credible an experienced Canadian business financing advisor who can assist you in a franchise loan for your franchisee financing needs 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/franchise_loan_franchisee_financing_canada.html







Thursday, May 17, 2012

ABL Asset Based Finance - Recognize These Early Warning Signs For Your Need for The New Paradigm In Revolving Lines Of Credit



Solve A Lot Of Business Finance Challenges With An ABL Facility

Information on ABL asset based finance in Canada . How does this new revolution in business revolving lines of credit work . P.S. It’s not new!



ABL asset based finance can be the solution for business revolving lines of credit when your current finance strategy isn't working. And what are those early warning signs? They include situations where your financing currently just isn’t working due to financial challenges you have experienced in the past. They also include acquisition scenarios, turnarounds, and the proverbial double edged sword, high growth.

The simple reality is that although the ABL credit lines have essentially the same goal they in fact get to that goal line in a very different manner. Both the chartered bank facility as well as the ABL line provide you with a bridge for financing from the time you receive customer payments while all the while generating expenses.

Receivables are often the primary component of an ABL strategy. The ABL facility is not capped, so as your sales grow so can the facility, it’s as simple as that. All of this might seem similar to a bank solution, so whets the real difference. One is in fact margining, in that asset based lines of credit, with respect to the a/r component, are usually margined at 90% - typically the bank is at 75%. Although the reporting is generally stricter with ABL the reality is that the tradeoff is significant, you can borrow more and are not focused on staying within any pre set credit limit.

Many clients we talk to don't understand the daily mechanics of how the asset based lender operates given they are not a bank. (The ABL is generally not a bank, but it actually can be sometimes). The typical way this is handled is via a separate blocked account where all the deposits you receive are handled separately from your operating account. Simply speaking you get money from the ABL via your operating account, and your receipts go into the other account. Naturally both accounts are fluctuating all the time.

While some of these terms and the actual ABL facility itself might seem ' new ' the reality is that this type of financing has been happening for decades in the U.S. and is enjoying more popularity everyday. In effect it has become ' mainstream'.

While we have focused on receivables as one component of the ABL strategy the other parts are inventory, equipment, and even real estate. All of these are neatly combined into one revolving facility, enhancing your overall borrowing power. The fact that they are margined at much higher rates than a chartered bank facility simply becomes a ' win ' for your firm.

While banks focus on profits and cash flow, which sometimes are difficult to achieve! the ABL asset based finance revolving lines of credit focus on Assets! Therefore typical bank requirements such as debt to equity, tangible net worth, cash flow coverage, etc simply don’t apply in ABL finance.

ABL can cost more (it can also cost less by the way), and as we noted it require more reporting to your ABL partner. However, if it can provide solutions to growth, turnaround, acquisition, and survival we think it certainly merits your investigation. Often times the higher price of the facility can easily be offset by proper usage of funds to generate profits and savings.

Speak to a trusted, credible and experienced Canadian business financing advisor if you with to look at the new paradigm in business 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/abl_asset_based_finance_revolving_lines_of_credit.html



Wednesday, May 16, 2012

Who’s The Boss? Are Cash Flow Financing Challenges Managing You? Business Working Capital Management



Cash Flow – Canadian Business Style!

Information on cash flow financing in Canada . How business owners can achieve business working capital success via proper solutions and management



Valid question, right? When it comes to your business working capital and cash flow financing who's running the show, you, or are those two culprits seemingly running your company?

We're remind of one of Yogi Berra's (many) great lines - ' when you come to a fork in the road, take it ‘! That's probably where you are now in many cases. Determining who will win the ongoing cash flow battle for supremacy.

The reality is that you can probably be forgiven for feeling ' Who's the boss ' as statistics show that 82% of business owner don't feel in control or comfortable about their cash flows. So how in fact do you regain that feeling of control that every business owner treasures.

A good start is to know what you're talking about. We've repeatedly said that cash flow is such an over used and misunderstood concept or term. We can get really technical (net income plus deprecation plus or minus changes in working capital components) but unless we're at an accounting trade show/convention that's not really what we're looking for here!

To make things more complex we can make a case that your ' cash flow ' has to do with historical, present, and future needs, making it even tougher to get a handle on.


There are some great tools and also solutions to manage your cash flow financing needs. And again, we're talking about real cash, not income statement profits. That frankly though is a good place to make a very important comment - if your cash flow statement ( it's component # 3 of every financial statement ) differs significantly from your income statement over time you probably will never really regain cash flow control/supremacy.

So lets examine some solid ways to make sure you feel good about that ' WHO'S THE BOSS' question we posed earlier.

First of all, keep your financials up to date and understand them. A small handful of key ratios or relationships you can easily, and we mean very easily monitor over time will allow you to feel ' in control ‘. Simple things like receivable days turnover, inventory turns, sales to fixed assets, etc.

It sure doesn’t hurt to do some methodical cash flow planning. Also, take a look at your overall capital structure from a viewpoint of debt and equity. This allows you to properly take advantage of market growth opportunities, even an acquisition perhaps.

We know we sound like a broken record sometimes, but understand your operating cycle; it’s the amount of time it takes for a dollar to flow thru your company. Match a financing solution to that selling cycle.

Hottest tip today on cash flow generation? It's don't pay anyone! But seriously, managing your payables and disbursements is critical, but we're the first to recognize the importance of supplier relationships. If you have a sales force you might consider paying them commissions when sales are paid, not made. Talk about incenting the collection focus!

If your assets aren’t turning over quickly focus on that. You can also monetize your current assets via bank lines, asset based lines of credit, working capital lines, receivable financing, inventory financing, and supply chain finance.

Who's the Boss when it comes to cash flow? Hopefully you. Speak to a trusted, credible and experienced Canadian business financing advisor on cash flow financing and business working capital analytics and solutions.








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_financing_business_working_capital.html





Tuesday, May 15, 2012

Guilty As Charged ! It’s OK To Be Accused Of Exploiting Commercial Equipment Lease Companies In Canadian Business Financing





This Is Why You Should Lease Equipment !

Information on why Canadian business should use commercial equipment lease companies as the most popular method of asset acquisition .




Guilty as charged? You should be. We’re recommending it! We're talking about exploiting commercial equipment lease companies in Canada for your financing needs.

We're told that exploitation is ' utilization, especially for profit'. That’s what we think you should be doing when it comes to considering lease financing in the Canadian marketplace. Let's explain why and how.

Naturally when we talk about ' exploiting ' we think it’s fair to say it has to be to a mutual advantage, i.e. the lessor and you the lessee should be in a win win scenario. It’s all about maximizing the benefits.

To put it simple lease companies solve financial challenges you may be facing in acquiring assets.

We constantly preach that to get into the ' exploitation' mode that we're talking about here you have to know the lay of the land.

Therefore it’s important to understand who the players are in the industry and how they differentiate themselves from each other. That could be a full time job in some cases, and apparently you've got one already! ... so it makes sense you want to attach yourself to a lease financing expert who can clearly differentiate the players with respect to their financial offering , their deal size, credit criteria, and types of equipment lease offered.

So in what ways can you exploit lease financing to your advantage. There are several, and if we had to summarize them they would come under the categories of economics, working capital preservation, balance sheet and income statement benefits, as well as just ease of acquisition.

When it comes to economics its all about cost of ownership, and the lease versus buy decision. You have to do some basic analysis around why you want to lease finance and that often boils down to the actual use of the equipment at the end of the lease, not at the beginning as most think!

We constantly see business owners and financial managers in Canada doing a not too bad job of finalizing a lease transaction at inception, but they often fail to consider mid term and end of term economic implications .

One of the great economics with commercial equipment lease companies in Canadian busines is the sale leaseback - it’s a strategy that replenishes your working capital and maximizes your owned, unencumbered assets.

Issues such as taxes and depreciation often fail to excite the business owner as lessee. And count us in that group also! But we do caution clients to discuss accounting, tax and deprecation benefits around business lease financing and how they might positively impact your financial statements.

If you’re an astute lessee you can save hundreds, and often thousands of dollars based on some simple understanding of lease rates, why they are important and why they might not be.

Clients don't always believe us but a low monthly payment or interest rate doesnt mean anything when it comes to other aspects of your transaction such as down payment, skip payments, end of term obligations, calculation of a buyout, etc.

There's an old joke among lessors who maintain they will give you any interest rate you want as long as you sign ' their ' lease contract!


Exploit commercial equipment lease companies to your advantage. Maximize benefits; minimize the downside by some careful analysis. Not feeling qualified? No problem. Speak to a trusted, credible and experienced Canadian business financing advisor. Let’s get exploiting!








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_equipment_lease_companies_business.html

Monday, May 14, 2012

Canadian Receivable Financing - Answers To These 2 Questions Are Why You Need Invoice Factoring In Canada




Looking At A/R Finance As A Working Capital Solution?


Information on receivable financing in Canada . Why does Canadian business consider invoice factoring in Canada for a cash flow solution



Considering Receivable Financing in Canada? If you are your thoughts and answers on two questions should help you out quite a bi t.

One of our favorite business writers recently focused on cash flow management and asked the following 2 questions -


Does your firm need cash right now?

Do you know what your cash balance needs will be a half year from now?

The fact that you are even considering invoice factoring in Canada suggest your business might be facing cash flow challenges, or perhaps that you're smart enough to address a future problem now!

A/R finance allows you to address whets going on with your firm’s working capital in an immediate manner. And by the way, it puts you in control, which you might not be feeling now when it comes to your firms overall cash/ business cycle. When we meet and talk to clients quite often it’s clear they don't necessarily feel in control of their finances.

When you are able to exert control over you cash with a receivable financing strategy all of a sudden the uses of cash seem a lot clearer. You're now able to make or take on new lease payments, or perhaps reduce debt in other areas such as account payable. Keeping those suppliers and preferred vendors on side is important, pretty well all the time!

Let's cover off some basics when it comes to invoice factoring in Canada, also known as invoice discounting. First of all, it’s a business to business financial strategy, so it doesnt really work in a Business to Consumer environment. (By the way, if you are selling into a retail environment then a merchant cash strategy which finances future retail sales just might work for your firm, but we digress ...!)

The costs of receivable financing in Canada vary greatly, and it’s probably our largest discussion point when we [re explaining to clients the benefits and cost of an A/R finance strategy. What is important here is that you understand that the cost factor around receivable finance in fact is costs you are bearing now, except that now you're now winning, and use of this financial solution allows you to win.

What do we mean by that? asks the Canadian business owner. Well the cost of receivable financing has to be benchmarked against two or three critical points you might not be considering. One is that you are already in the banking business, whether you like it or not, because you are carrying your customers 30, 50, or 90 days already. Congratulations on doing a great job in growing your clients cash flow - although that’s probably not your goal right?

Secondly you are potentially missing the opportunity grow your business because of the cash flow constraint that invoice factoring in Canada solves.

If you want to learn more about receivable finance , how it works, what it costs, and what is the best facility out there when it comes to being ' in control ' then seek and speak to a trusted credible and experienced Canadian business financing advisor today .

You'll then be able to see clear answers to those two nagging questions: Do you have enough cash today and will you be able to address you cash needs a half year from now.











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/invoice_factoring_in_canada_receivable_financing.html



Sunday, May 13, 2012

Film And Animation Project Finance - It’s A Mad Mad World Without Canadian Film Tax Credits



Finance Your Production tax credits for film, tv and animation in Canada . Here’s why!


Information on Canadian film tax credits. Utilize your film, animation and television tax credit to finance your projects successfully .




Film and Animation finance in Canada. What producer/project owner wouldn’t agree that it's a ' mad world ' when it comes to financing a project. That's exact where Canadian film tax credits enter from stage left - they play a key component in our overall financing strategy. Let's examine that a bit.

It's rarely a perfect world, but when on exists in film financing it’s a case of equity investors making a reasonable (or great?!) return on their original investment, and those mezzanine and gap type folks also achieving a solid return on principal and interest.

Does that always happen? Of course it doesnt. Sometimes things go awry or a final component to the film financing success puzzle is required. Quite often that final component consists of Canadian film tax credits, as well as those same credits that apply to the digital animation world - the newest and probably fastest rising kid on the block .

So how can the film tax credit and the financing of same become the OSCAR of film finance? We’re still waiting for the day when the film industry acknowledges an award for most creative use of a film tax credit - we do know though there are a lot of nominees out there.

When it comes to film and animation (and television) finance in Canada the tax credit is known as a ' soft dollar 'component of your financing package. Canada current has one of the most robust and easily accessible film/animation tax credits environments in the world, and is widely recognized for that.

Simply speaking anywhere from 30-50% of your overall budget can in fact be recovered by the tax credit. And the financing of those tax credits can play a starring role in your project. Why? Because they can cash flow the actual project itself, they can play a key role in the return on equity in your project, and finally, those dollars could in fact be used to help bankroll your next project. Talk about a triple whammy.

So how in fact to tax credits accomplish those key goals for the producer.? It's not as complicated as you think, they are not refundable government monies that come from the government jurisdictions that you chose to film, produce, and post produce in. When your tax credit certificate is accepted based on your budget and spend criteria that credit becomes cash for your project - and it can be monetized as you spend or at the end of the project.

So you can choose to simply wait to get your cheque from the government (it’s a combined federal and provincial amount) after your ' spend ' is verified and audited.

In the U.S. and elsewhere it’s a battlefield out there when it comes to ongoing availability of tax credit film incentives. However, in Canada there's a sense of ‘ business as usual ' normalcy when it comes to film tax credits for movies, TV, and animation projects .

Want to examine next steps ?Its all about discussing your overall financing plan and budget with a Canadian film tax financing expert in conjunction with your tax credit budget which is usually prepared by a qualified film tax credit accountant , thereby maximizing your return in any one of the Canadian provinces .

So yes, its a ' mad world ' when it comes to film finance - use your Canadian film tax credits to assist you in your overall plan of equity, debt, print and advertising, and gap financing . You just might find the Oscar goes to film tax credits for best supporting role. Speak to a trusted, credible and experienced Canadian business financing advisor when it comes to film 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/canadian_film_tax_credits_finance_animation.html