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.



Friday, July 29, 2016

5 Things You ( Probably ) Didn’t Know About Canadian Business Receivable Finance . Cash Flow Financing Via Factoring Clarified !












Ode To Alternative Financing . Fixing Your Business Cash Flow Problem


OVERVIEW – Information on Business receivable finance in Canada . Cash flow financing via factoring and a/r financing – explained and clarified!





Cash flow financing
is all about clarity and quality of information when Canadian business owners and financial mangers consider business finance alternatives. We've said in the past, and still feel it's true that no other form of finance in Canada is as misunderstood or potentially confusing as business receivable finance.

So does this method of cash flow financing have to be confusing? We don't think so, so let’s recap 12 often asked client questions with a goal of clarity for you, the Canadian business owner. Let’s dig in!

Question 1 revolves around the amount of funds you can expect to obtain in Canada. Typical advance rates for most facilities revolve around the 90% mark if you are dealing with the right party. The balance, i.e. the remaining 10% of your receivables is a holdback that is remitted to you immediately after your client pays. Another key question is facility size, and the good news here is that your facility grows as your sales grow. In general there are no credit limits per se, unlike bank facilities, which clearly have a cap and almost always revolve around annual reviews based on the quality of your financial performance.

Question 2 revolves around the process, i.e. the length of time it takes to set up a facility. We generally advise that it takes approx 2 weeks to set up a proper facility - that is a general guideline. You will know, by the way, very early on in the process if you are approved. After that it's simply a question of documentation. Legal documentation and the paperwork process are very similar to bank financing.

By the way, stop us if you’ve heard us say this before,
but you should consider CONFIDENTIAL RECEIVABLE FINANCE, allowing you to bill and collect your own accounts with no notification to suppliers, customers, etc. Your firm will be the talk of the town when it comes to competitors guessing how you did it.

Question 3 is the proverbial hot point. Fees and costs. Various factors come into play here, the credit quality of your firm in general (it does not have to be as solid as you think), the size of your facility, the nature of your industry, etc. On balance a solid business receivable finance fee in Canada is 1.5 - 2% if you're billing and collecting on a 30 day term. If your company can absorb a 1 or 2% decrease in gross margins to in effect obtain all the cash flow/working capital you need, that in effect should be your consideration.

Question # 4 revolves around types of receivables that can be financed, The key point here is that only ' business’, i.e. B2B a/r can be financed in Canada, so those companies with a consumer a/r base cannot take advantage of cash flow financing . Any North American receivable can be financed, and if your firm has overseas receivables a credit insurance policy can assist in the financing of those receivables.

Question # 5 revolves around the age of receivables that can be financed. As a pretty general rule only A/R that is under 90 days in age can be financed via this method of Canadian business financing. One can safely assume of course that if you haven’t collected your accounts by that time there is an element of uncollectibility or bad debt in your A/R portfolio.

There you have it. Confusion gone away? We hope so. When considering working capital finance via business receivable financing ensure you've got the right information at hand to make an informed decision. Speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success for your ability to get on track with cash flow finance.


Stan Prokop - founder of 7 Park Avenue Financial
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com


7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Direct Line = 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '


ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.







Wednesday, July 27, 2016

Business Capital Solutions In Canada : Accessing Proper Cash Flow & Commercial Financing








3 Mistakes You Should Never Make In Your Business Finance Needs



OVERVIEW – Information on business capital finance in Canada. Don’t make these mistakes when it comes to your cash flow and commercial financing requirements



Business capital
requirements in Canada often boil down to the some basic truths the business owner/financial mgr/entrepreneur needs to address. One of those truths? Knowing the true state of their financial condition and what financing they do and don't qualify for! Let's dig in.

We're highlighting 3 mistakes that you need to avoid making when addressing, sourcing and negotiating your cash flow and commercial finance needs.
1. Understand the true condition of your company finances - almost always successful addressed when you spend time on your financials

2. Ensure you have a plan in place for sales growth and finance needs

3. Understand that actual hard cash flow is the lifeblood of your company

Can you honestly answer or fee positive about all those 3 points. If so pass Go and collect $ 100.00!

A good way to address your company's finance plans is to ensure you understand growth finance solutions, as well as how to manage in a downturn - i.e. not growing, losing money, etc

When we talk to clients of new or established businesses it seems they are almost always talking about sales, so the ability to understand and focus on the differences in their profits and cash fluctuations is key.

How do cash flow and sales plans and projections affect the type of financing you require? For one thing sales growth usually starts out by consuming your cash, not generating it. A poor finance plan will drag your business down and addressing financing simply gets tougher and tougher.

Three basics always emerge when it comes to your search for the right business capital and financing.

1. The amount of financing you need

2. The type of financing (debt / cash flow / asset monetization)

3. How the financing is structured to be manageable with your day to day operations

Let's identify and break down key financings your firm should know about and understand if they are applicable and achievable to your business. They include:

A/R Financing / Factoring / Confidential Receivable Finance

Inventory finance / floor planning / retail inventory

Working Capital term loans

Unsecured cash flow loans

Merchant working capital loans/advances

Royalty finance

Asset based non bank business lines of credit

Tax credit financing (SR&ED bridge loans)

Equipment Leasing / Sale leasebacks

Govt Guaranteed Small Business Loan program

If you're focused on not making mistakes in your business finance needs and want to capitalize on the solutions your competitors are probably already using seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and commercial financing needs.



Stan Prokop
- founder of 7 Park Avenue Financial
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '


ABOUT THE AUTHOR

Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.





Tuesday, July 26, 2016

Asset Based Lending In Canada : The New Business Financing Alternative For Cash Flow Survival












 Ready To Get Excited About Business Financing Possibilities ?


Information on asset based lending in Canada.  'ABL' finance is the new business financing alternative for business credit line needs and cash flow / working capital survival . Here's your why and how!


  


Asset Based Lending in Canada  
  – what’s all the excitement about?  As we are well into our 2016 business year in Canada the financial markets continue to provide challenges to Canadian firms in the small to medium enterprise sector. We personally define small to Medium as say, Sales revenues fewer than 50 Million dollars, but you will find a number of people with different size definitions. Suffice to say our numbers are smaller than those in the U.S, as usual!

Working capital and cash flow financing challenges seem to be a constant source of challenge for the Canadian business owner and financial manager.  When we combine that challenge with the fact that many companies have  debt and debt service problems, and in many cases are coming off a ‘ bad year ( the worst year ever? ) you can see how any new financing solution very quickly becomes top of mind .

If the Canadian business owner is confident that his liquid and fixed assets as a whole can support the financing need careful thought should be given to an ABL arrangement. ABL is the term most people refer to when discussing Asset based lending if they have a financial background.

So what are those liquid and fixed assets – well they are of course the company’s liquid current assets, receivables and inventory. That is also balanced with the firms fixed assets and real estate might be included in that.

Whether on the U.S. or the Canadian side of the border the asset based lending lines of credit continue to increase – some of the largest corporations in Canada and the U.S. have either completed such financings, or are contemplating them.

As large as the market and market potential are in asset based financing it is interesting to note that  the actual market participants can really be brought down to a handful or two of key players . There are some large tier one type firms that are primarily offshoots of major U.S. corporations who dominate the market in asset based lending, and then there are a very small handful of Canadian well heel players. That is finally balance by a similar handful of Canadian tier 2 and tier three players who play in niche markets and geographies.

Asset based lending works only when there are... guess what... ‘Assets ‘! As such industries that are very capital intensive in nature – think manufacturing, etc... Are perfect candidates for ABL type arrangements?

There has been a major stigma in the asset based lending marketplace that this type of financing – i.e. leveraging your current and fixed assets to the max , is a form of alternative financing that was previously embraced by only firms who were in some sort of financial trouble or distress .

 While a firm can have financial losses, a poor balance sheet capital structure,  or cash flows that are very volatile or seasonal  and still be a great candidate for an asset based line of credit /loan , it should be pointed out that major successful well known corporations have added ABL  financing to their financing toolkit so to speak .

When CFO’s and business  owners meet with chartered banks to structure operating and term financings the  discussions revolve around balance sheet ratios, debt covenants, cash flow coverage, and personal collateral  .

 When all of those issues are generally positive in nature the Canadian chartered banks are providing line of credit and term facilities in the 5-6% range in early 2010.  When there are major challenges in satisfying bank requirements those ratios and loan covenants are not on the discussion table with your asset based lender, only the liquidation value of all your assets is.

 Receivables and inventory in most firms is of higher quality, and can be margined in the 90% range, while appraisals are performed on other fixed type assets. That gets your company maximum asset financing, and that is what ABL is all about. Is it more expensive than traditional bank financing – we would say 95% of the time it is.

 But as a business owner does you want no or a small credit facility at a great rate, or all the financing you need at a more expensive rate?  We hope you are now at least aware of the financing alternative – now its your turn to decide , talk to an expert in the area, and  investigate asset based lending as a fit for your Canadian company !




Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for  Canadian companies , specializing in working capital, cash flow,   asset based financing . In business 10   years - Completed in excess of 100 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 & Contact Details :   
http://www.7parkavenuefinancial.com




7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769

Office = 905 829 2653


'  Canadian Business Financing with the intelligent use of experience '


ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
 Prior to founding 7 Park Avenue Financial in 2004  his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980)  DIGITAL EQUIPMENT CORPORATION,1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 )   He is an expert in Canadian Business Financing.

Stan has over 40  years of business and finance executive experience. He  has been recognized as a  credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had  in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He  has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.