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 commercial business financing. Show all posts
Showing posts with label commercial business financing. Show all posts

Tuesday, November 15, 2016

Commercial Business Financing In Canada :The Search For Loans & Cash Flow Solutions











Getting That Don Quixote Tilting Against The Windmills Feeling When It Comes To Business Financing?


OVERVIEW – Information on commercial business financing in Canada. Getting the frustration out of the search for loans and cash flow solutions is all about being well informed on your firm’s choices & alternatives






Commercial business financing in Canada gives many business owners / financial mgrs a certain feeling. Unfortunately that feeling during the search for loans and cash flow alternatives leaves them feeling a lot like our friend Don Quixote - that gentleman who flailed against the windmills in a vain effort against adversaries - in this case funding challenges. Looking to improve on that journey? Let's dig in!


Forever a challenge is the funding search for start up, small and even medium sized businesses with hundreds of employees and respectable sales. Yes the ' big boys' have those challenges - they just have a lot more assets, resources and expertise working with and for them!


As a business owner or financial manager the level of working capital that you need, and the method in which you achieve that financing is really what drives the solution to your challenge. It is important , in understanding your cash flow needs and solutions, to determine if your working capital financing is required due to the capital intensive nature of your business - or if you in fact simply need to ' monetize' , or 'cash flow ' your assets in an effort to generate more working capital and faster turnover of those funds .


Despite all the good news and great feelings around your increasing sales and profits the working capital requirements under this level of success increase substantially. Bank financing has become more difficult to acquire, and many firms are looking at nontraditional or alternative sources of financing to secure the funds they need for working capital.


Another hard reality of working capital financing is that most small and mediums sized business are searching for more cash flow on an unsecured basis. This type of financing is very difficult to achieve in the Canadian marketplace, certainly in the Chartered bank environment.
So what are the sources of financial capital that Canadian business owners and financial managers can investigate and potentially utilize? Let's cover off some of the basic options - These include:

Personal savings (not high on a business owner's priority list!)

Business Credit Cards

Factoring / Accounts Receivable Financing

Government Working Capital Term Loans (These are cash term loans with fixed payments and rates)

P O / Contract Financing

Asset based non bank lines of credit

Equipment Leasing

Sale Leasebacks

Unsecured cash flow loans

Merchant Advances

Inventory Loans


When you are looking for working capital financing one of the key areas you can start with is your own key financial metrics. You don't need to be a seasoned financial analyst to determine at what rate your receivables are turning over. The bottom line if you haven't realized it yet (we are sure you have) is that receivables and inventory ' eat ' cash.
One key point needs to be made here, if your sales are growing at 15% and your receivables are growing at 15% that's not a bad thing. (To calculate simply measure the ratio of these two data points) However, if your sales are growing at 15% and receivables are growing at 30% your cash flow and working capital is being consumed by the investment you have made in A/R and inventory that is not turning over. Collections and inventory turnover are a key aspect of working capital financing.


Commercial financing from a bank is the optimal solution for small and medium sized business - as have noted that is difficult to achieve.
Funding a business can be complex and we urge clients to seek the advice and guidance of a respected, trusted and experienced commercial financing expert to ensure they pick the right tools to solve working capital challenges.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you reverse that Don Quixote feeling!


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, January 29, 2014

Commercial Business Financing In Canada: Dispatches From The Field On SME Finance Options
















Commercial business financing in Canada Shouldn’t Require a Quantum Jump


OVERVIEW – Information on commercial business financing options in Canada. The SME Finance sector has numerous options available to new and existing businesses in the Canadian marketplace





Commercial business financing
options in Canada shouldn’t ( but unfortunately often do ) require a quantum jump in effort and time , so when it comes to SME commercial finance options just consider us your ' reporter in the field trenches' with some suggestions to fix financing challenges with solutions that make sense. Let's dig in.

Most private, independent business owners in Canada recognize the need for financing choices. We would add though that sometimes companies quite large and famous have their own challenges - they often might wish they were able to be as nimble as does the smaller firm grappling with cash flow, working challenges, and debt structure .

In the SME financing sector in Canada, including start ups by the way, one partner in finance that many business owners/financial managers don't consider is the Canadian government via the GUARANTEED SMALL BUSINESS LOAN program. Although it caps out at 350,000$ that' still a healthy amount to finance start ups, equipment needs, leasehold improvements, and even real estate. When it comes to real estate the program actually allows a limit of 1/2 Million $.

Franchise finance can more often than not be successfully achieved through the same program, a fact certainly not known or recognized by all.

For any established business the criteria to get true traditional low cost bank financing couldn’t be more straightforward.-

Clean balance sheet
Reasonable debt to equity
Profits
Positive cash flow coverage
Shareholder guarantees and additional collateral coverage


The bottom line - easier said than done in many cases, right?

When Canadian business financing is required the ' go to ' is obviously bank financing. When that can't be achieved either the govt SBL/BIL program, or alternative commercial financing from non bank entities make sense.

What then are those solutions? They include:

Receivable financing

Inventory finance

Purchase Order/Contract financing

Tax credit bridge loans

Equipment financing for fixed assets/technology/production assets/Rolling stock

Asset based business lines of credit (' ABL’)

How you make money and how you turnover assets is key in financing success. It's critical to maintain a strong handle on those ' working assets' - those assets that turn into cash after you effectively manage inventory and A/R.

Many business owners/managers find themselves in a state of ' limbo' as they wait for clients to pay - especially if they have a long cycle in their business, and that isn’t even taking into account the risk of bad debt.

The way you manage, and therefore are able to finance your A/R and inventory will reflect more often than not in your competitive stature in your industry.

Want a great tip? - try and manage your business to reflect an ongoing trend of lower A/R as a per cent age of your sales. Easy to track and will almost always guarantee profit and cash flow success.








Whether you're a start up or a large firm struggling for the ' nimbleness ' of SME Commercial Finance options 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 you commercial business financing needs.




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 = SME COMMERCIAL FINANCING OPTIONS IN CANADA





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 '