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.



Showing posts with label asset based business line of credit. Show all posts
Showing posts with label asset based business line of credit. Show all posts

Saturday, December 28, 2019

Funding Business Cash Flow Needs In Canada









Working Capital Loans & Asset Based Lending & Merchant Cash Advance Solutions Do The Trick





Information on Funding Options For Business Cash Flow Needs Via Alternative Finance Solutions






How Does A Business fund it's cash flow needs ? There isn't a day these days when we don’t meet or talk to a small business client who is having cash flow funding challenges. Several solutions in the alternative finance area are becoming increasingly popular . These include short term working capital loans, long term loans of the same nature, merchant cash advances , and asset based lines of credit .

With the right partner firm we have found this type of financing to be a solid interim solution for cash flow financing and working capital. Let’s look at how this type of financing helps our clients achieve working capital success and why it might be right for your firm.

Short Term Working Capital Loans


You can call it non traditional or alternative, but quite frankly its becoming more popular everyday and thousands of businesses are taking advantage of this type of business cash flow funding . The success of short term working capital advances finance always seems to come back to the issue of your business not being able to secure working capital financing from what we call our traditional sources, i.e. banks, finance firms.

And the reality around this type of financing is that it is quick and easy, and , more remarkably, often unsecured , depending solely on your ability to generate sales based on historical performance and projected profits . Even though the government continues to encourage banks to pay more attention to small business financing the reality is that traditional financing is 99.9% of the time secured via collateral, personal net worth’s, strong personal credit scores of the owners, and generally stable financial performance from a historical perspective.

The above is all well and good, but tends to eliminate the hundreds of clients we meet who have real business challenges and can’t meet some or all of the aforementioned lending criteria.

So how does this type of financing work. You may have heard of the business financing known as factoring. This, in a nutshell, is the financing of your receivables as you generate them. - I.e. same day cash for sales you make. However, thousands of firms, perhaps yours, have a major revenue component made up of cash and credit card sales, and you still need financing for the same reasons: purchasing inventory, reducing payables, making loan payments, etc.

That’s where short term working capital loans come in - in essence you receive cash today for future credit and cash sales , but the formula is based on your historical and current sales revenues.

Isn’t this risky for the lender, asks our clients? That may or may not be... but the reality is that if your firm, as an example , can demonstrate via bank statements or credit card sale stats that you have solid sales then the working capital lender is prepared to advance you funds today for a percentage of those future sales . A quick example is that you could receive , again, as an example, an $80,000 cash flow loan today and repay it, by agreement, with , for example, 20% of all future cash or credit sales . You are receiving cash today, allowing you to fuel further growth in sales and profits.

These loans typically are 1-2 years in length . Longer terms are available, with better rates, for businesses with fairly decent financials and who can evidence current positive cash flow.

Working capital via asset based lines of credit are a more robust solution for firms that have assets . These non bank credit lines margin your inventory, receivables and equipment into one borrowing line that fluctuates with your needs and cash flow .

If you are looking for the right way to fund short term or longer term cash flow and working capital needs speak to a trusted, credible, and experienced Canadian business financing advisor with a track record of business finance success. Find out how your company can benefit from innovative and valuable cash flow financing.


7 Park Acvenue Financial:

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

Direct Line = 416 319 5769


Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .


' 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.





Thursday, November 27, 2014

Asset Based Line Of Credit : Your Solutions To Your Mountain Of Pain Via ABL Business Credit Lines





Don’t Click Here If You’re Satisfied With Business Credit Line Financing





OVERVIEW – Information on the asset based business line of credit . How this ABL solution differs from traditional bank lending . Assessing the highs and lows of this method of revolving credit facility






An asset based business credit line is one solution to what many business owners / financial managers tell us is their ' mountain of pain '
when it comes to revolving credit facilities that make sense for their company. ‘ABL ' asset based lending is the one alternative to achieving a working capital line that makes sense. Let's dig in.

There are subsets of asset based credit that also work for many businesses in Canada. The primary one is invoice financing, which focuses specifically on accounts receivable, and unlike ABL, does not take into account borrowing against your inventory, equipment, and other assets. While invoice factoring works for thousands of firms it falls down when the business owner/manager finds that way of financing the business as too inflexible.

Getting into the wrong facility can become either too expensive or in some cases cumbersome. If there's one primary reason businesses shy away from invoice financing it’s because they don't want the financing to have any involvement with customers, suppliers, etc.

We can commiserate with these clients because the ability to keep how you finance your company private is probably how you want to run your business. If there is one other perception of invoice financing on its own it’s that many firms simply don't understand what it does and, as importantly, how it works and how it is priced.

How are commercial finance firms offering ABL credit able to compete with banks? Top experts tell us that the ' risk spread ' on banks lending to smaller firms is less attractive than lending to large commercial borrowers.

Asset based lenders fill the void that exists when small to medium sized businesses find they are unable to secure ' traditional' loans.

So that brings us around to the ASSET BASED BUSINESS LINE OF CREDIT, which finances your a/r, inventory, and equipment under one revolving credit facility . In many ways is the perfect alternative to ' credit hungry ' Canadian business.

Top experts tell us that thousands of firms are now fully utilizing asset based lending facilities - primarily in the start up and SME Commercial market place, while many would also be surprised at major corporations that utilize this type of business borrowing.

This ' bundling ' of your assets into one borrowing facility provides liquidity and borrowing power that is more often than not 100-200% more than you could achieve at a bank facility. It is also well suited to Canadian businesses that sell into the U.S. as no real distinction is made between U.S. and Canadian receivables if you're working with the right partner.

And paramount to all of this is the fact that the facility is ' CONFIDENTIAL ' with respect to your business running on its own, billing and collecting your own receivables.

If you're looking to understand the key advantages of the ABL business line of credit vs. your ability access bank finance seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in removing that ' mountain of pain ' around working capital needs in Canada.



Stan Prokop
- 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN ASSET BASED FINANCING EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:
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 '