Everything You Need to Know in Negotiating a Term Loan

The article provides insights as to criteria used by banks and other finance firms in the negotiation of customer term loans. The focus is on 'be prepared'

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Most business owners and financial managers know the story - the bank has the money, you need it. Term loans can be a tough negotiation for any business owner. Part of that is simply because the final conditions imposed upon the bank can be somewhat restrictive.

As simple as it may seem, the business owner has to think like the banker - that allows one to reverse the negotiation stance to some degree. Also, it's all about 'strategy'.

We would point out also at the outset that there are a number of banks, and an equally larger number of independent finance firms that offer term loans. The business owner should ensure he is aware of the market players, and who offers what. The goal tends to always be the same though - get the largest loan at the best rate. Not easy to achieve!

Business people as we have said, should have a solid strategy in the entire process, and believe me it's a process.

Borrowers can benefit by doing research into the banks current market and objectives in commercial finance. There will be issues and objections raised by the bank on the owners submission - they should be dealt with in a manner that keeps the loan submission positive in nature. Thousands of books are written on the art of negotiation, and no business owner can expect to reasonably get the full amount with all terms that he or she asked for.

Term loans are generally for long term assets. They are paid by future cash flows and earnings. That bring two bear two key source of information that should be properly prepared - what has the business done financially, and what has it he potential to achieve - i.e. a forecast.

Banks focus on cash flow - so they will want to carefully look at what the risk is to those future cash flows. Business people should be prepared to talk thoroughly about their own particular industry, many industries are currently out of favor - example: automotive; many are sought and in favor: 'Green' industries - (solar, et al).

The owner should anticipate what risks the bank or other lender will perceive in their industry - they should be prepared to talk to those risks. Owners should also remember that although they need this term loan now for this asset, that the bank will also want to look into what else they might need in the future, which might have the ability to restrict the cash flow somewhat.

Unfortunately more often than not the lender looks to historical cash flow to reflect future cash flow - therefore is a company has lots of changes in sales and profits over the years the why's and wherefores around these need to be discussed and presented.

While the focus is definitely on cash flow the balance sheet will definitely come under scrutiny. Weaknesses in the balance sheet need to be tabled and discussed.

Banks love 'ratios'. We have called them 'number relationships' in previous articles.

It is highly recommended that the business owner review and understand some of those 'ratios 'which will come under scrutiny. Typically those are liquidity, operating, and fixed asset coverage ratios.

In summary, all banks and other finance firms have very similar and basic analysis models around term loans - they involve industry and financial statement analysis, focusing as much on the past and future as the present. It behooves business owners and financial managers to understand some of those metrics used by banker, which should, in the long run, limit loan restrictions and get the business owner the capital he or she 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 13 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.


Stan Prokop



Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

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How Commercial Factoring Works In Canada: Costs & Benefits of AR Receivable Finance

OVERVIEW – Information on receivable finance in Canada. The right Commercial AR Factoring solution delivers on classic business credit line attributes

Commercial factoring in Canada addresses some of the major issues your firm faces everyday in cash flow and working capital challenges. Let's go inside the business credit line battle

- an ongoing wrangle between traditional banks and commercial finance companies. Let's dig in.


Most business owners know the drill - customers have always been slow to pay, and that's not getting any better. On top of that cash flow requirements change daily as your business addresses working capital needed to finance inventory and receivables, and at the same time managing investments in ongoing operations, debt payments, commitment to suppliers, etc.
Is there a solution to those challenges? We know there is. Is it as expensive as you may have heard, we are pretty sure it is not. The reality is that commercial AR factoring solutions have dramatically dropped in pricing over the last few years.
So what is A/R financing, and what solution, traditional or alternative, works for your firm?


Commercial factoring is the ongoing sale of receivables for instant cash. For many customers it always comes down to the rates and pricing they have heard about this type of financing. In Canada those costs range from anywhere from 9% per annum to 1-2% per month.


Let's talk about costs. . When many customers calculate their 'all in 'cost of borrowing from banks it is often a lot higher than they might think -despite those low bank rates . So it is important not to get 'seduced 'by your low rate expectations around traditional Canadian bank financing- not to mention the rigorous criteria banks impose for those low rates and flexibility .
We're big supporters of banks - when our clients qualify - which isn't always the case. Many clients we meet with simply can't meet the requirements, (the banks call them covenants) for borrowing on a revolving ongoing basis for working capital, particularly receivables and inventory. So the conversation around pricing becomes somewhat moot.


Instead of worrying b about the cost of factoring consider the following - If you have money tied up in accounts receivable for , as an example, 60 days, then you are losing the opportunity to receive payment and re invest in your business and increase your overall return on equity . The more quickly you can get paid allows you to reinvest in further sales for your firm, those sales create more profits.


Looking for unlimited working capital/cash flow for your business - Consider factoring, since as long as your sales and orders grow so does you access to cash flow - In essence unlimited!

A bottom line - Most business owners view cash flow as unpredictable, and commercial factoring removes that unpredictability - you in effect control the cash flow valve - financing all or a part of your receivables...when you chose.


A/R financing is growing all over the world, North American no exception, and certainly in Canada it has been on the rise also.
Some of Canada's largest corporations use this type of financing - when it comes to larger corporations fancier finance terms like ' securitization ' are used. Bottom line, General Motors factors, why shouldn't you? So even if your firm may have had some financial losses, or is in a turnaround situation, etc - you are still a solid candidate for this type of business financing!

Factoring is the ultimate in off balance sheet financing - you are simply monetizing your receivables and generating cash instantly. The secret of factoring costs, or their perceived costs, is your utilization of those funds. You can use cash flow generated from receivables sales to pay invoices from suppliers and take a discount, or negotiate better terms and pricing for your products .

When you have additional working capital you can grow sales and revenue and increase profits - that financial flexibility is what this type of financing is all about. Sometimes it is a 'bridge 'solution, in certain cases it can easily become your long term ongoing working capital solution.

So what’s our bottom line? Seek out and speak to a trusted, credible and experienced working capital advisor to ensure you understand the benefits of this unique type of business financing in Canada.



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 13 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.


Stan Prokop

Secrets of Dealing With Equipment Leasing Financing Companies

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Information for Canadian owners and business managers regarding dealing with equipment leasing financing companies. What are the rights and obligations of the lessee, and how does effective research into a good lease partner yield effective financing results

What's my rate? Are we approved? What are my rights and obligations under this transaction? What's the capital of North Dakota... oh sorry, forget that last one..!

And on it goes... these are just some of the many questions that clients ask us when they are looking for assistance in sourcing and negotiating equipment leasing and working with financing companies in that regard. We do acknowledge it's a big challenge sometimes - the Canadian marketplace is a bit different than its counterpart in the U.S. The finance industry is fragmented, and business owners and financial mangers absolutely could not be expected to know the credit appetite, the asset appetite, and the structuring options available from literally hundreds of firms offering lease financing.

Let's share some ' secrets' and tips around ensuring you can be successful in your equipment financing strategy. First of all, different strokes for different folks - what do we mean by that? Simply there are number of very well published ' equipment leasing benefits ' offered by finance firms. Do they all apply to your firm? Probably note, so focus in on understanding which benefits of lease financing work for you, and then... maximize them! Through effective negotiations.

For the record those benefits usually include payment structuring to your cash flow, tax advantages, upgrade and return options, and simply being an alternative to traditional debt and loan negotiation. Oh and we forgot one other key benefit, its generally recognized that lease financing credit approval is significantly easier to obtain than bank term debt or other loan mechanisms of a more traditional nature.

Psst... Want to know another secret. Here's a good one, that almost no transaction is too large or too small for the Canadian equipment financing market. So, if it makes sense to lease a 2000.00 photocopier consider it, and if you're buying a corporate jet for 3 Million dollars, there is a lease approval for that asset also.

If there is on obvious secret or tip that most owners miss it's simply that when it comes to any type of ' technology ' you should consider equipment leasing with financing companies that are knowledgeable about the asset. We are mostly talking about computers, but the tech universe today covers telecom, and many other types of assets. Technology changes, tech assets depreciates very quickly, and the best kept secret in town is often a technology operating lease, allowing you full use, but not ownership, of the asset.

Many clients seem confused by the ' lingo' used by financing companies. You can be forgiven for not knowing ' off balance sheet leasing, residuals, fmv, all in rate, amort, ' etc, etc etc. So the best and final secret we can probably provide for you is simply to search out a trusted, credible, and experienced Canadian business financing advisor who will help you identify priorities and finalize equipment leasing success for your asset acquisitions.

Oh and by the way. Bismarck. That's the capital of North Dakota.

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 13 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.


Stan Prokop




Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

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How Does Ed Predict My Business is Going to Go Bankrupt? And Who is Ed?

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We are quite sure that many business owners and financial managers, and to some degree even sophisticated financial analysts have never heard of Edward Altman. Altman was a pioneer in financial research into trouble firms. He was a New York professor/scholar. Obviously this took a lot of what we could call ' back testing ' - that is to say going back in a companies history to determine why they failed and what were the financial characteristics of that failure. A lot of his work revolves around the in depth analysis of 33 firms that went bankrupt eventually.

Altman wrote volumes on companies in distress and bankrupt companies, and is most known for his contribution of a short formula called 'THE Z-SCORE '.

What is the Z-SCORE? In essence it's a predictor of bankruptcy and business failure! One might think the formula is overly complex, but it is not. It is simply an analytical tool that could be used by any business owner, financial manager, or for that matter a personal investor looking to purchase a stock in the stock market. It is somewhat of a dramatic statement, but Altman felt you could predict the bankruptcy, in many cases, several years before the actual event. (Short sellers of stock take note!!)

Altman developed the tool in the 1960's and we feel it is still very valid today. The ultimate result of a Z-SCORE calculation is an absolute number. If firms have a score of 1.8 or less Altman maintains the company is a strong credit for bankruptcy.

How is the score calculated? Again, readers will be surprised at how easy the score is to calculate. Remember that the absolute number of the score essentially is a reading on the company's financial health.

The elements of the score are as follows:
Working Capital
Total Assets
Retained Earnings
Earnings/Profit
Sales
Total liabilities

Note ** If any business owner does not know how to get those numbers from his financial statement we suggest they are already headed for business failure!

The calculation is done as follows:
Working Capital divided by Total Assets
Retained Earnings divided by total assets
Earnings divided by total assets
Retained Earnings divided by Total liabilities
Sales divided by Total Assets

Each number is calculated and then added up. The result is a final Z-SCORE. Remember that we have said that if a company has a score of less than 1.8 Altman. (Note there is a weighting assigned to each calculation also - readers can do their own research on the calculation)

Believed they were headed for bankruptcy. Obviously when he back tested those financials of firms that ultimately failed he showed they had exhibited a score of less than 1.8 much earlier.

Altman noted that firms with a Z-SCORE of greater than 3 were, in general, strong financially. Readers can also guess that a company with a score somewhere in the middle is a firm in the 'grey zone '. The bottom line - lower is worse!

So would you invest your personal money in the stock market in a company that had a Z-SCORE of 1.8? And do you believe you have a tool that can effectively predict the ultimate failure of a company. And finally, do you know the Z-SCORE of your own firm as a business owner or financial manager - we have shown that it is not hard to calculate. We note that ALTMAN did feel strongly that the formula works better for larger corporations. What the reader does with that data is a subject of another discussion

No formula is absolute, but, the weight of evidence suggests that if Ed (his formula /model) is predicting something, we should listen!

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 13 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.


Stan Prokop


















Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/3670251

Understanding Receivable Financing Pricing And Rates Is Not Impossible! Invoice Discounting 101

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Information on receivable financing and invoice discounting rates in Canada. Understanding Factoring Prices

' Misunderstanding all you see '; those are lyrics from

the Beatles ' Strawberry Fields ', and talk about being a bit appropriate for the confusion around receivable financing and invoice discounting rates in Canada.

So, talk about confusing... let's try and clear up some real basics around receivable finance in Canada -mostly along the lines of how it works and how it is priced. Clients are always providing their version of what they think they are getting but the reality is often far from that.

A/R finance is used by thousands of firms in Canada to address cash flow shortages when in fact more traditional financing simply doesn't make sense or can't be attained.

A good way to clear up some of the confusion around this method of business finance in Canada is to address it head on, which is simply to say that this finance mechanism isn't financing per se, it's simply the sale of one of your assets at a discounted rate. So from that perspective even we own up to being guilty sometimes around the terminology!

Another way of looking at our issue to frankly address what might be perceived or real drawbacks or negatives around A/R financing. The discount rate used on receivables when you sell them, in Canada, ranges anywhere from 1-5%. To be fair, the average discount rate tends to be in the 2% range.

Invoice discounting rates make the most sense when they are used to take advantages of opportunities for growth and higher profits and sales via asset turnover.

Part of the reason A/R finance is viewed as confusing by many is that it's essentially part of an unregulated industry. Clearly our banks are regulated and you know what you get (when you can get it!)

So what does that all mean to Canadian business owners and financial managers. Simply 4 words. Pick a solid partner! Or adviser.

Where invoice discount financing gets confusing is in the terms/contracts, and the rates.

So how do you address that pricing in terms of benefits? Several factors have to be taken into consideration. They are the quality and age of your receivable portfolio, the ' opportunity cost' of what you can do with additional cash flow, and the actual cost of carrying your receivables and inventory as opposed to monetizing them more quickly via a receivable financing strategy.

As we have said in the past carrying receivables anywhere from 60-90 days can easily cost you anywhere from 10-20% when you factor in days to pay your firm, admin costs, lost opportunities, your current financing costs, etc.

So why do Canadian business owners and their finance staff stumble on the issue of receivable finance. It's partly, as we have shown due to their inability to overlook the total pictures in the areas we have demonstrated above.

Invoice discounting rates makes the most sense when you look at opportunity cost. If you finance your receivables as you generate them you lower the balance sheet investment and reduce your day's sales outstanding.

A quick example - if your annual sales are 1.2 million and your daily sales are $3300 per day for example you could add $10,000 to cash flow by a 3 day reduction in DSO. A 30 day reduction adds 100k to cash flow!

Charges or costs for a 100k per month facility equate to a 2k per month cost if you are turning your A/R promptly.

So, confusing. We hope not, although we're the first to admit it takes a bit of time. Speak to a trusted credible and experienced Canadian business financing adviser for clarity on achieving best invoice discounting rates and benefits for your firm.

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 13 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.


Stan Prokop

















Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

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Turbo Charge Your Banking Via A Business Line Of Credit ABL Revolver!

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Information on the ABL revolver as a totally new solution for a business line of credit. Business banking that makes sense!

Small, medium or large? We're not talking about a coffee cup size... we're referring to the fact that no matter what your size of business your access to a business line of credit is the lifeblood of your company. That's why an ABL revolver (ABL = asset based line of credit) is potentially the solution to turbo charge your working capital and cash flow. Let's examine how.

Clients seem to always wrestle with the fact that they don't really understand the differences between this type of business financing and banking as opposed to a 'regular' operating facility with the bank. The differences could not be more dramatic. While a bank facility (by the way, we are all for them also, when they work! ) focuses significantly on your balance sheet ratios and over all profitability, etc the ABL revolver solution hones in on one issue only - your assets and their overall quality and size. It is on that quality and size that the ABL business line of credit is structured.

Borrowing power is what business lines of credit are of course about. When you utilize the ABL approach you in effect leverage all the power of the assets, which certainly isn't like what we like to call ' traditional bank borrowing '.

So, why would a business such as yours want to unlock that borrowing power? The reality is there are some very recurring needs for firms which choose this type of business financing. First of all they either can't get or can't get enough working capital borrowing power against their inventory, receivables and equipment. Secondly, all sorts of other problems, challenges, and yes opportunities can e overcome with an asset based line of credit.

Many examples exist of firms who have doubled and in some cases tripled their business financing access via this type of finance. The answer is simple - it's based on asset size, not ratios and covenants and external collateral.

Those include firms which have large seasonality issues, companies who which to merge with or acquire a competitor on an asset financing basis, and, most commonly, firms that view themselves in turnaround or restructuring mode when it comes to where they are at in their life cycle - i.e. coming out of a challenging economic time or negative business event (operating losses, etc).

Did we just say ' operating losses '? Yes, the reality is that even firms who are experience operating losses and could otherwise not achieve maximum operating cash flow are excellent candidates for ABL financing. We should mention that the type of facility you get, the pricing on that facility, and how the facility works vary within ABL revolver financing depending on your overall transaction size and asset coverage.

We must never forget also that these type of facilities never bring debt to your balance sheet, you view them similarly as an operating line, in that you are just monetizing your assets for working capital and cash flow - the only difference is you've got tremendous flexibility around borrowing power - because you are borrowing against a base of receivables, inventory, unencumbered equipment, and in some cases real estate also.

In summary ABL revolver financing gives you a full service business financing, its cost effective, addresses almost every financing problem you have had related to cash flow, and is available in facilities from 250k to many millions of dollars.

It somewhat of a secret to many that some of Canada's largest corporations choose this type of financing over a traditional bank facility. Speak to a trusted, credible, and experienced Canadian business financing advisor on why ' ABL ' give you that ' turbo charge' boost in cash flow we've talked about.


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 13 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.


Stan Prokop








Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

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