Need Help Identifying Commercial Business Loans And Financing In Canada ? Sources Of Finance For Canadian Business

Canadian Business Financing – When .. Now… Maybe


Information on identifying business financing sources in Canada . What you need to know regarding commercial loans and finance opportunities for your company




When, and how. Do you have a handle on what business financing you need when seeking finance and commercial loans in Canada? Let's review some of those timing issues, as well as sources and solutions.



Plan A (which often quickly becomes PLAN B) for many business owners and financial managers in Canada is to highlight a Canadian chartered bank as their main option. And truth be told, commercial banking is quite competitive these days; especially from a perspective of rates, etc. (Approval is a different story!)

It's a hard core reality that you in fact, due to the above competitiveness, as well as your firms own credit quality could in fact get a better deal , structure , and rate simply by ... ' changing banks '. Is that recommended? Certainly not always, more so when it comes to evaluating the cost of a relationship.

Are there alternatives to Canadian chartered banks when it comes to commercial loans and financing in Canada? There sure are - they include pension funds, insurance companies, and commercial independent finance companies. The latter group consists of specialized small firms, niche firms, and larger Canadian and international finance corporations.

Clients ask us, when they are looking to finance externally what they need to look out for. It's a question of looking at what type of firm and financing vehicle is in fact best suited for your needs. And the factors that determine that?

They include:

Term of amortization of your financing

Why you are financing

Cost

The upside / downside of that type of finance

Short term business financing transactions in Canada tend to be 1- 3 years in length. We're often approached for very short term needs and these are difficult, but not impossible to accomplish.

Naturally longer term financing tend to be anywhere from years onward. When you consider the period or term of the loan the business owner focuses on the overall financial position of the company. The lender however focuses pretty well solely on risk and collateral.

Businesses in Canada finance for many reasons. They include expansion and growth, new markets, probably the best advice we can give a business owner, and it’s certainly the view of many lenders, that areas such as product development and working capital should be financed internally through profits and operating cash flow.

If you can’t generate enough cash internally probably one of two situations exists - your profit model is (hopefully temporarily) broken or you can't really afford the financing you think you need. Our point is simply that it’s not always external debt that is the fix to a problem . Physician, heal thyself comes to mind!

In Canada sources of financing include securitization of assets, export finance, sale leaseback of assets, working capital term loans, and monetization of assets via bank credit facilities; asset based lending agreements, and monetization of assets such as receivables or inventory on their own.

If you need assistance in identifying the why and how of business financing and commercial loans in Canada speak to a trusted, credible and experienced Canadian business financing advisor.




7 PARK AVENUE FINANCIAL
Is An Expert In Business Financing
And Commercial Loans




Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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

What’s The Difference Between Not Having A Cash Flow Financing And Having A Business Finance Management Strategy?

Effective Working Capital and Cash Flow Solutions and Management

Information on business finance and cash flow financing management . Implications of a losing strategy.

Cash flow financing. The potential failure of your business... that’s most likely the final result of not have a business finance cash flow strategy with appropriate solutions and financing in place .

So what are some of those solutions; but even more importantly can you recognize when cash flow is decelerating, and can you accelerate it via internal and external means. That's the conundrum facing Canadian business owners and financial managers today.

We're often surprised , even shocked when we meet clients to have a great business and entrepreneurial sense, have great services and products, yet at the same time have no real focus on cash management and working capital solutions.

They seem to have a solid plan for their company's future, but no real plan on the cash flow. So, yes, they are growing, but also heading into cash flow crisis 101!

Hindsight is great in business, however when the business financing challenges get to big in the present it’s because they quite often weren’t addressed, right about now.

In general the SME (small to medium enterprise) in Canada fails to recognize that growth is bad. Of course it's great also, but its ' bad ' only because you're now using and requiring more cash than you ever did. So all of a sudden that need for working capital, coupled with slower receivables or bulging inventories are moving you to crisis mode.

Naturally your failure to address these issues then enters you into a world where you're potentially unable to pay existing lenders, and the last thing you’re
able to focus on is expansion capital. So being smart on growth and dumb on cash flow and working capital is... you guessed it, not a good thing.

Cash comes into your company via product and service sales and the accounts receivable that result. The outflows are as tough to manage - they include salaries, a/p, fixed asset additions, lease and loan payments, etc.

The key factors that result in a cash flow crisis are numerous - they might include overextending sales to poor credit risks, slow collections with no key focus on a/r management , financial losses to due low or negative margins, or serious declines in sales .

Can the Canadian business owner accelerate cash? Yes, he or she can. Along with solutions such as receivable financing, asset based lines of credit, bank credit facilities, and inventory financing and tax credit monetization you can monetize your balance sheet without additional debt.

Even smarter solutions exist within your company walls, they include managing A/R better, invoicing promptly, slowing a/p to maximum extent possible without offending key suppliers, or encouraging pre payment on larger orders or contracts.

You can also set up very simple data points to measure your progress or problem areas. That includes monitoring cash to sales ratios, cash on hand to ending receivables, etc

So, growth? We're all or it. Just remember though that hand in hand should come a solid cash flow financing and business finance management strategy that you can work internally and externally.

Speak to a trusted, credible and experienced Canadian business financing advisor for solutions to your firms finance needs.



7 Park Avenue Financial
Canadian Business Financing Expertise




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_finance_management.html

Leasing Rates . What’s The Trick To Getting Best Lease Pricing In Equipment Finance In Canada?

CANADIAN BUSINESS FINANCING
WITH THE INTELLIGENT USE OF EXPERIENCE!


STAN PROKOP
7 PARK AVENUE FINANCIAL



Canadian Lease Finance Pricing – Rocket Science Degree Not Required!



Information on understanding leasing rates and equipment lease pricing for asset finance in Canada .





Leasing rates for equipment lease pricing and finance in Canada. Abracadabra! We wish it were as easy as that one word magic phrase to get the best rate for your equipment finance transaction!

But in reality its not that hard to ensure you have the best financing rates if you understand the basic underpinnings of a lease price and how certain obvious ( and not so obvious ) lessor strategies work for your favor , and what factors you can affect directly.

What isn’t hard, or magical, is why Canadian business owners and financial managers continue to embrace lease finance for the assets they need for their business.

It's simply a cost effective Canadian business financing strategy that allows your company to acquire virtually every asset your firm needs - that includes plant equipment, rolling stock, computer and telecom equipment , software, even that corporate jet ... We thought of that last one while waiting in line at the airport the other day .

Other benefits we focused on in the past in order to educate clients include cash flow management, taxation benefits, and the general ease of doing business. Oh and by the way, numerous smaller costs associated with asset acquisition can be financed also.

So what does in fact affect your leasing rates? It's a number of things, so we forgive clients for meekly asking ' whats my rate '.

Factors that affect your lease pricing at a macro level include perceptions by the lessor of your industry, your current financial strength (That’s very important) and the general asset value and remarketability of the new or used equipment that you need. All of these play a key role in lease pricing.

Is the actual pricing of a lease a disadvantage? Possibly, we certainly don’t think that’s anywhere in the majority of cases, but a careful lease buy analysis with a focus on your overall condition is highly recommended. While this can be done on the back of a napkin, numerous spreadsheet templates can get you to the goal line quickly. Even your lessor can provide you with one, but we'd suggest you ask for the formulas in the cells... just kidding.... well maybe not!

Various finance nuances exist in lease pricing. Ask your lessor if your payments are calculated in advance or arrears. The 5 elements of all lease prices are:

Term
Rate
Value of Asset Financed
Payment
End of Term Value

If you know any 4 of those you can actually calculate the last one very easily, or call us if you don’t have a lease finance calculator!

We tell every customer they get to pick their own lease rates! When the shock finally lifts of their faces we explain that your current overall financial risk profile in your financials really has determined to a large degree your current lease prices. In Canada rates range from 4-24% per annum on leases based on overall credit quality.

As a quick example, using a 100k asset over, say a 4 year term your monthly payment could vary between 2250$ and 3196$ using the above data. How important that monthly payment amount is to you based on the critical need of the asset to your company will be a final key decision driver.

One other area you need to investigate is the residuals and purchase options. They clearly define the two basic differences in operating and capital leases and can significantly affect your monthly payment.

Think we've covered it all? Well threes actually a whole litany of other things that will ultimately affect that lease price. They include prepayment penalties, upgrade formulas, commitment fees and down payments, and a handful others.

So how can Canadian business ' stay in the game' when it comes to both understanding and achieving best leasing rates and lease pricing in Canada. One option is to seek an expert, so consider talking to a trusted, credible and experienced Canadian business financing advisor who can assist you in the lease finance jungle. BE CAREFUL OUT THERE!






7 PARK AVENUE FINANCIAL
IS A CANADIAN LEASE FINANCING EXPERT





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_rates_equipment_lease_pricing_finance.html

‘Takin’ Care Of Business ‘ AR financing . Accounts Receivable Loans Are ‘ Working Overtime ‘ !

Canadian Receivable Finance – Working Overtime!

Information on ar financing in Canada . Why accounts receivables loans play a key role in Canada’s business financing



AR Financing in Canada. It's clearly ' takin' care of business' when it's used properly with respect to accounts receivable loans for financing your business in Canada .

One of Canada's greatest rock anthems gave us some ideas about how receivable financing in Canada is appropriate for thousands of firms, and getting more traction everyday. ‘Start your slaving job to get your pay ‘... perhaps BTO meant to stress the importance of collecting receivables in order to facilitate cash flow for payrolls? So as the song says ' take good care of my business ‘... and you don’t need to ‘work overtime.'


So what then are the advantages of AR financing in Canada and do they in fact make sense for your firm. Those advantages become very clear if in fact your firm has tried to access more traditional bank financing but finds itself unable to do so.

First of all the time and level of financing in accounts receivable loans (it’s not really a loan per se - it’s a monetization ' provides you with a significant amount of working capital immediately without the additional collateral and guarantees that might be required by another lending source.

And what do we really mean by ' immediately '. Well how is ' same day service ‘, because firms get funded typically the same day they generate sales and invoices.

Organizations like the Federation of Canadian Business speak extensively on ' ease of access' to financing for companies in the SME sector. AR Financing is typically very easy to apply for and turnaround time for a proper facility should never be more than a week or two.

Also, if you're dealing with the right firm (unfortunately many firms in Canada are not) you should be also able to finance U.S. receivables at no cost. Foreign receivables might, but no always require some level of credit insurance, and we're referring of course to non North American A/R.

The overall mindset of the Canadian business owner changes once he realizes the difference between A/R financing and a bank facility. So unlike a bank overdraft which is collateralized by your assets, accounts receivable loans are in effect the sale of your A/R to a third party finance firm. Oh , and by the way, as your business grows so does your receivable loan facility, there is no real need to ' reapply ' or wait until you have another year of financial statements under your belt .

So if we're so right about invoice financing in Canada why isn’t everyone on the program? Good question. The reality is that there is still a lot of lack of awareness of how the financing works, what it costs, as well as the perception that it’s non traditional in nature. If thousands of firms in Canada use AR finance we're quite sure it’s no longer that ' alternative ' in nature.

We do acknowledge though that if your sales are in fact shrinking or not stable that there are some challenges here and this method of financing might not be for your firm. The bottom line though that if you are in fact growing you can use cash flow from A/R financing to productively finance your firm. That includes by the way using the funds to purchase more effectively as well as taking supplier discounts, potentially alleviating the cost of accounts receivable loans.

Looking for a business financing solution that helps you control business cash flow performance and growth? Then speak to a trusted, credible and experienced Canadian business financing advisor today on how A/R financing can help your firm.

P.S. Again, it’s not a loan, it’s a ' monetization’!





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/ar_financing_accounts_receivable_loans.html

Business Acquisition Financing In Canada . You Don’t Have To Live On Bay Street To Make Acquisitions Finance Work

Buy and Finance A Business In Canada

Information on business acquisition financing in Canada . Strategies, tools , techniques and advice for merger and acquisitions finance .


Business acquisition financing in Canada. It conjures up visions of having to be a Bay Street / Wall Street heavyweight when it comes to sophisticated financial knowledge.

But for smaller and medium sized corporations there is a healthy element of ' do it yourself ' when it comes to acquisitions of competitors, synergistic companies, etc. But don’t under emphasize the importance of a solid external team to assist you . Let's examine some solid ' need to know ' info that will help the Canadian business owner and financial manager address any acquisition successfully.

The amount of proper financing that you can generate, internally and externally (mostly externally!) will ultimately play a large part in the size of the company with whom you might be acquiring, or merging with. Here is where valuations come into play and anywhere from 30 - 50% of the final price that you agree on might in fact have to represent a cash type scenario.

Naturally there are a thousand stories in the naked city, as many firms are acquired simply for the reason that they are not profitable for the current ownership. This does bring up a very key point though, which is that if you are looking at acquiring a firm that is in trouble, losing money, losing market share/sales etc then in fact a lot less cash is required for the transaction. However at that point you'll obviously have other challenges to address.

If there is a solid piece of advice we can give to the Canadian business owner and financial manager it’s to start a financing strategy around your acquisition early on. That final capitalization of the proper amount of debt and equity is critical.

When contemplating bank financing for business acquisition financing in Canada a solid, realistic and succinct business plan is required. We see many plans from clients that are far less than ' succinct ' and therefore raise more questions than answers.

So what does one in fact have to demonstrate to the bank? A good start is how your firm will operate the business - so a good examination of the financials and any key issues around seasonality of sales and cash flows, customer concentration, production, and credit terms are key.

If the business you are acquiring does in fact have challenges it's clearly a good time to demonstrate how you will implement controls and changes around those challenges.

Spend a lot of time considering the amount of leverage you will ultimately have when acquisitions are completed. It's tempting of course to become highly leveraged but this is the classic double edged sword of business financing , and don’t think that high leverage will guarantee higher returns to shareholders, as that debt you are now carrying can in fact become a day to day nightmare down the road if not managed or financed properly .

Business acquisition financing in Canada is about finding a solid opportunity, analyzing your transaction carefully, and closing with the best financing possible based on your industry profile of debt and overall capitalization. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with acquisitions that make sense- financially!

Talk to 7 Park Avenue Financial About
Business Acquisition 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/business_acquisition_financing_acquisitions.html

Buying A Business In Canada ? Types Of Financing For Your Purchase

Financing The Purchase Of A Business In Canada


Information on buying a business in Canada . Financing your purchase is available through various techniques and strategies




Buying a business in Canada. It's done for a lot of reasons. Financing that purchase requires knowledge of strategies that allow you to acquire opportunities such as a sale of a family business, seizing the opportunity to acquire a troubled competitor for synergistic reasons, or... heaven forbid... simply growing your business from a size and profit viewpoint.

We'll leave it up to you to identify the business opportunity, however we think it’s our job to ensure you've got some solid access to financing strategies that will work for your success in a business acquisition.

One often overlooked strategy that you should focus on right from the beginning, if only because it minimizes your financing requirement is the vendor take back, often also termed ' owner financing '. Simply speaking, it’s a powerful strategy. And when financing a business purchase becomes a challenge the vendor take back/owner finance strategy makes access to the other types of financing you require... easier!

Typically the Canadian business owner and financial manager thinks of ' the bank ' when they look to acquire a business. That's just logical. However if you're not familiar with the way a bank looks at a business acquisition you're going to hit a roadblock pretty quickly.

Very early on in the process you absolutely have to identify whether you and the selling firm are going to focus on an asset sale versus a stock sale . For small and medium sized businesses in Canada the concept of financing a share sale is somewhat impossible, certainly if financing is required and is a key component of the deal.

If you're a large corporation or public company that’s another kettle of fish, but we're simply saying for a small to medium sized transaction asset sale financing is really the way to go. As an acquirer you'll find that sellers of a business in Canada that wish to focus on a stock sale are really more focused on tax minimization issues, and that isn't going to help you complete the deal.

Once you have focused on the asset sale it becomes a case of determining the value of those assets. This is typically done by appraisal and financial analysis techniques.

Goodwill is the excess dollar amount you're paying on top of the assets. Goodwill is typically difficult to finance, which is why our owner financing/vendor take back strategy is sometimes a good place to start. The sellers financing, often referred to as ' holding the note ‘can allow you to complete a purchase satisfactory to all parties.

Both banks and non bank commercial finance lenders view the VTB (vendor take back) very positively. Since the seller of the business has a vested interest in making the purchase also successful you often can get very favorable, in fact below market financing rates from the owner or owners of the company being acquired.

Owner financing can also be a part of the BIL/CSBF strategy, which is the government loan program used by many SME owners to acquire a business.

A typical structure for financing a purchase when you’re buying a business in Canada is the down payment, debt financing, and the vendor take back/owner financing. When all three align properly you have the makings of a successful result in buying a business in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor for assistance in structuring the best deal and financing for your business purchase.

7 Park Avenue Financial - Canadian Business Acquisition 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/buying_business_canada_financing_purchase.html

Franchise Financing In Canada . Boring Or What? Franchisee Loan Info In Buying Franchises

Canadian Franchise Financing – Not Exciting .. But ….


Information on franchise financing in Canada. Implications of buying a franchise and the franchisee loan process.


Franchise financing in Canada. Boring... right? Well it might not be if in fact you're a franchisee looking for a loan when buying your franchise.

We're reminded at the same time of Sisyphus, of Greek mythology. He had to roll that boulder up the hill, requiring immense strength and endurance, only to be destined to see the rock fall down and to have to repeat the action in perpetuity. Anyway ... with the right info and contacts you certainly don't have to be a Sisyphus when it comes to franchise finance!

7 Park Avenue Financial - EXPERT FRANCHISE FINANCING



It makes sense that if the franchise that you have chose is in fact part of a successful chain that it will require a probable substantial investment, both in terms of equity as well as the franchisee loan. All businesses are founded with that combo of debt and owner equity.

The positive side of the story is that franchise financing is in fact available and generally viewed as a positive in nature that financing is in fact available. And a well known or reputable franchisor is in fact just the icing on the cake.

Typically the down payment required to open and fund a franchise tends to be anywhere from 10- 50% depending on the structure of the financing you require. While some permanent equity is a must it is to the benefit of yourself and the lender that you demonstrate some working capital and what we can call ' financial cushion ' in case things are off to a slow start. We're reminded of a saying by an old boss we had in the 80’s - he said he never met a forecast he didn’t like!

So what in fact is the franchise loan offering in Canada. Well it’s a combination of bank financing, specialized finance via a commercial finance firm, and then what we call a cobbled together approach of equipment, line of credit, etc.

Many franchisees, once established are considering cash advance financing, which in effect monetizes future sales which are then repaid over time as you generate new sales. They are done on a revolving and or term basis and typically have higher financing rates attached to them.

Most franchisees choose the BIL/CSBF program which is perfectly structured for franchise financing less than and up to 350,000$ with attractive borrowing and criteria features attached to it.

The essentials of any franchise financing requires a solid, preferably ' crisp ' business plan outlining your background, a financial forecast, and info on the franchisor and your chosen industry, whether it is a service or a product.

Typical debt to equity ratios apply , and you want to ensure that amount you borrow is repayable out of operating cash flow. Optimally you want to cover your loan payments, build equity, and of course draw a reasonable salary that you and your family can live on. The appeal to the franchisee is of course the proven business model offered by your franchisor that presents a reasonable, hopefully proven method of generating profits, cash and equity.

So, boring. Maybe, but not if you're on a search to properly finance a major business/career decision in your life. Speak to a trusted, credible and experienced Canadian business financing advisor on how you can access franchise financing 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_financing_franchisee_loan_buying.html