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.



Thursday, June 24, 2021

How To Get Funding For A StartUp







Guide To Startup Funding In Canada


YOUR COMPANY IS LOOKING FOR STARTUP FUNDS!


FUNDING FOR STARTUP NEEDS IN CANADA / HOW TO RAISE MONEY FOR A BUSINESS

 

New business financing for a small business in Canada requires the owner/owners to understand the risk and opportunities in startup challenges. Business finance is all about the risk of balancing starting and growing a company. Let's dig in on resources and methods of financing a startup!

 

 

SOURCES OF START-UP FINANCING  / STARTUP FUNDING

 

If entrepreneurs want to prove that their business is a priority, it's important to know when and how to diversify funding sources to fund the high growth potential of the business.  Having the right financing strategy will help protect your start-up from downturns in the market as well as giving lenders a glimpse of what they can expect if they fund your project when it comes to funds for startups.

Banks are only one source for funding - and the majority of businesses are not eligible for angel investors, crowdfunding, let alone venture capital or private equity type firms. ( By the way, those venture capitalists want a significant portion of your ownership when it comes to company funding and raising funds for startups ).

 


 

YOUR PERSONAL INVESTMENT 

 

When it comes to start up  business funding for a venture of any kind for the first time, it is often helpful—even necessary at times—to use personal investments or collateral on assets as seed money. This will prove that not only are you committed long-term but also willing to take risks if they present themselves along the way - It's the proverbial ' skin in the game' when it comes to being successful in start up loans.

 

 

BALANCE BETWEEN DEBT AND EQUITY  

 

A significant consideration in financing a new company via a business loan is the delicate balance between debt borrowed as well as ownership equity in the business. Your ability to leverage the company properly is the true goal - not missing opportunities as well as not risking default when funding with debt.

 

The bad news in business credit is there is no perfect answer relative to the right combo of external financing and owner investment.

 

STARTUP STAGES OF FUNDING

 

Early-stage companies need to realize that only certain forms of capital financing are available to the business.   Safe to say that more substantial and more established companies have a variety of additional business finance solutions available.

 

FUNDING SOURCES FOR THE EARLY STAGE OF A BUSINESS

 

What are the funding sources available for earlier-stage businesses? The life cycle of a new business has different cash needs - from pre-revenue all the way to high growth! Financing a business is all about knowing which stage your business is in and what is the best business startup loan that meets your specific needs.

 

it's all about determining the minimum amount of capital you need around your business model and what alternative structures might be available as opposed to traditional bank financing.

 


 

 

CRITERIA FOR LOAN APPROVAL FOR STARTUPS 

 

While some business owners pursue federal government grants these are often difficult to obtain as well as time-consuming. Borrowers should be aware that some types of loans have stringent criteria, require an appropriate amount of due diligence on yourself and the business,  as well as your ability to inject some of your own funds into the business. 

 

Depending on the type of loan and nature of your business anywhere from 10-40% of the project will typically be funded by your own down payment or equity injection.

 

Ensure you have a solid business plan that describes your business idea as well as the financial plan related to the business regarding cash flow and profit projections and management expertise. 7 Park Avenue Financial prepares business plans that meet and exceed the expectations of banks and commercial lenders.  Your own ability in how to present a business plan and explain cash flow and profit potential is key.

 

FINANCING SOURCES

 

A/R Financing/factoring

Inventory loans

Equipment finance

Short Term Working Capital loans

Non-bank business lines of revolving credit

Govt Guaranteed Small Business Loans

Tax Credit Financing

 

As you may have figured out, it's really all about determining what stage your company is in, as well as having a good handle on industry characteristics.

 

DEMONSTRATE THE CHARACTERISTICS OF A GOOD STARTUP

 

Naturally, business owners are focused on less expensive capital, notwithstanding the fact that many forms of capital will always be more costly than traditional bank financing or equity finance alternatives when it comes to small and medium sized firms. Your ability to demonstrate some good growth, profit margins and an experienced ownership/management team will go a long way to reducing individual startup new business financing costs and rates.

 

Planning in advance never hurts, issues such as a good business plan, cash flow forecast and mgmt overview are key to getting the right financing before you may necessarily need it.

 

Also, separating long term asset and finance needs from short term working capital and cash flow solutions will demonstrate a proper ' matching ' of sources and uses of funds. The best example of a poor financing strategy is to use short term funds to finance long term assets - for example: using a line of credit to fund a capital/equipment purchase.

 

 

Proper mgmt of business and personal collateral is key to also managing future financings. Quite often a combination of different funding and capital financings is the best solution for a new business. Proper use of guarantees and asset lines is key in the early stages of a company.


 

Funding for a small business will always be a challenge - many clients we meet at 7 Park Avenue Financial tell us they often don't even know where to start when it comes to financing options. The reality is though that there are in fact financing choices you can make in the start-up phase.

 

 
GOVERNMENT LOANS FOR NEW BUSINESSES IN CANADA 

 

Canadian small businesses looking to access new assets or improve their operations can take advantage of the Canada Small Business Financing Loan (CSBFL), a government-backed loan program that offers support of up to $1,000,000 in financing. Thousands of businesses every year utilize the guaranteed government loan program for funding for startups in Canada.

 

Canada's non-bricks and mortar entrepreneur bank offers term loans and working capital loans if companies meet lending criteria. The essence of that lending criteria is good personal credit and net worth as well as business experience and the ability to put some equity into your project. This business start up loan is typically a term loan with a defined repayment structure

 

Although many new businesses have been financed on the backs of business or personal credit cards we at 7 Park Avenue Financial don't recommend the mixing of business and personal credit borrowing in financing for startups if at all possible.

 

Of course, there is the proverbial ' family and friends' generally also not a recommended strategy when it comes to payback and relationships!

 

Some online portals also offer business loans but they can be very expensive although the appeal of quick and relatively easy financing is seductive for many business borrowers.  We always recommend that a client prepare a solid business plan outlining their experience, cash flow projections, and otherwise.

 


 

CONCLUSION - BUSINESS START UP FUNDING

 

If you're focused on a loan for a business, and the best type of financing and the right business loans for new or early-stage small businesses speak to  7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your start-up and growth needs when it comes to start up costs for business

 

FAQ: FREQUENTLY ASKED QUESTIONS

 

Can you get a bank loan to start a business?

Bank loans are the best way to get your small or medium-sized business going. That's because all banks offer different advantages, whether it’s personalized service or customized repayment plans. It would be a good idea for you to shop around and find which bank meets your specific needs before committing yourself to one particular institution!

The challenge in funding startups via banks is that Canadian banks prefer a track record in later stage firms, ( typically at least 2 years in business)  as well as very solid personal credit and credit scores for the business owners - as well as the requirement for a personal guarantee to back up the loan.

 

What is bootstrapping in business?

 

Despite the current bull run in start-up financing, not every company needs to get funded. Some businesses can be started and grown organically without needing any outside funding at all.
In a world where most investors are looking for instant returns on their money, there is something refreshing about starting out with nothing but your own energy and creativity that makes it easy to have success when you operate this way from the beginning of your business venture - some might say easier than trying to grow by acquiring other companies.

 

Can you finance r&d credits?

 

Under the Canadian Scientific Research and Experimental Development Tax Incentive Program (SRED or SR&ED), tech startups can access up to 35% of what they've spent on eligible R&D activities as a repayment from the CRA. This refund can amount anywhere between a few thousand dollars to several million dollars, making it an accessible option for those just starting out and making a commitment to research and development in intellectual property and in their overall capital funding process as they invest in the future of their products and services.

SR&ED loans are suited to every industry but are very common in the technology space in Canada when it comes to ' fintechs' and funding for research in areas of software, etc.

 

7 Park Avenue 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

Click Here For 7 PARK AVENUE FINANCIAL website !




7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial








7 Park Avenue Financial/Copyright/2021

Startup New Business Financing Business Finance | 7 Park Avenue Financial

Saturday, June 19, 2021

Guide To Business Line Of Credit Needs : ABL Ends Your Search For A Cash Flow Solution Alternative








THE CREDIT LINE SOLUTION YOU HAVE BEEN LOOKING FOR!

 

Business line of credit needs are often challenging when owners/financial managers are trying to run...and, oh yes, 'grow' their company.

 

 

WHO OFFERS BUSINESS LINES OF CREDIT 

 

That’s why ABL, the acronym for asset-based lending operating facilities, can deliver a solution for almost every business - with only 1 prerequisite - assets such as receivables, inventories, equipment, or even real estate. Let's dig in.

 

FLEXIBLE FINANCING OPTIONS

 

So why is ABL becoming one of the fastest ways to get your business financing going? The answer -a valuable tool known as a line of credit for business. It's a working capital facility, similar to a bank facility that provides working capital on a regular basis against inventory, receivables, and in many cases, equipment and real estate if that is applicable. 

 

One can argue the case forever on whether Canadian banks are providing the right amount of financing and support for small business, and yes, even large businesses in Canada - We don’t think we’ll get full closure on that discussion, although bank interest rates have never been more attractive for those that qualify.

 

Most top experts and studies say that SME COMMERCIAL FINANCE needs are certainly not fully delivered by traditional banking institutions as it relates to new firms, high-growth firms, or businesses with any kind of financial challenge on their balance sheets and income statements.


While smaller businesses might rely on credit cards or short-term working capital loans the best solution is access to a revolving credit solution.

 

So assume you either can’t qualify for a chartered bank business line of credit  or unsecured loans from banks , or, on the other hand , perhaps do, but the facility doesn’t meet your needs - in some cases, the preset credit limit may be not enough for your growth needs.  That’s where an ABL or asset-based line of credit comes in.

 

 

SUPPORTING CASH FLOW NEEDS AND BUSINESS GROWTH GOALS 

 

How does ABL work then?  It’s a simple, no-nonsense form of financing provided by non-bank-type firms - typically commercial finance companies. Many call it 'alternative financing,' but we can assure you this form of ‘business financing' is becoming more mainstream and popular every day.

 

 

DOES YOUR COMPANY QUALIFY FOR A BUSINESS LINE OF CREDIT?

 

How to qualify for a small business loan or revolving line of credit is information that every business owner must know.

Because the chartered banks focus on traditional metrics such as your overall financial performance, outside collateral, credit score and credit history of owners, personal guarantees, etc., you will find the overall  business credit line requirements under the ABL process much simpler and common sense. It’s simply a case of borrowing against your real assets, with little or no reliance on the issues we outlined above relative to a bank-type facility.

 

PAY INTEREST ON ONLY WHAT YOU BORROW UNDER YOUR CREDIT FACILITY

 

The specialty of an asset-based line of credit provider is simply their strong knowledge of your industry and assets, so because of that, your ability to generate almost unlimited working capital becomes very obvious very early on in the picture. As with any business credit facility you pay interest on the credit line loan only on the amount outstanding that is utilized in your facility and you still use your regular business bank account as funds are deposited there for your use. Business loan rate of interest and charges are based on overall credit quality.


BANK CREDIT LINES  VERSUS OVERDRAFTS

 

Traditional bank business lines of credit provide ongoing access to funds for your day-to-day operations, sometimes through an overdraft limit.


Key benefits are the liquidity available for business needs and the ability to manage cash flow as needed.

Access to bank credit requires solid proof of your company's business financial performance. Typical supporting documents include company financial statements,  business tax returns and personal financial information and credit history of the owner/owners. A business plan is typically always required -  7 Park Avenue Financial prepares business plans for clients that meet and exceed bank and commercial lender requirements.

Banks will, on approval set a credit limit and interest rates associated with the credit line

 

WHAT AMOUNT OF LINE OF CREDIT DOES YOUR FIRM QUALIFY FOR?

How does a line of credit work? What do we mean by that? Simply that if you have receivables, assets and equipment you can always borrow against them on an ongoing basis so typically you can draw down on 90% of receivables, 40-70% of your inventory values, and pre-agreed upon amounts on the appraised value of unencumbered equipment.

 

When It comes to how to increase credit limit needs commercial lending asset-based financing solutions increase automatically as your sales and other assets grow - a ' borrowing base certificate' is prepared every month with new limits.

 

Typically companies that are the best prospects for this type of financing are firms with fast growth and in some cases a limited track record i.e. a start-up, etc. who can benefit from a revolving line of credit.

 

In some cases, this type of business operating line of credit could possibly be complementary to your existing bank facility, but more often than not, it replaces it totally.

 

 
WHAT YOU NEED TO KNOW ABOUT LINES OF CREDIT AND THE COST OF FINANCING 

 

How are 'ABLs' priced? While there are a number of key advantages to an asset-based line of credit they do normally cost more than bank facilities. Depending on the size of the facility and the overall nature of your firm, its industry, and other challenges you might be facing, the final pricing will reflect a realization of those issues.

 

So yes, it will cost more, but those costs can be significantly offset by increased cash flows via inventory turns, the ability to purchase smarter with that cash and to convert receivables immediately into cash for additional sales efforts.

 

WHO QUALIFIES  FOR BUSINESS CREDIT LINES

 

Don't forget though that you have in effect just negotiated unlimited working capital, and have those credit line benefits and the ability to turn assets more quickly and generate increased cash flow, revenues and profits. That’s a true business financing triple threat!  If you're looking for more good news, understand also that asset-based operating credit lines are suitable for pretty well every industry in Canada - Again, it's always about the assets.

 

 
CONCLUSION- BUSINESS LINE OF CREDIT CANADA 

 

Speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor in this area to ensure that you determine if you can benefit from a small business line of credit or another business funding source for a business financing arrangement for your growth and business needs.

 

 
FAQ: FREQUENTLY ASKED QUESTIONS 

 

What is a business line of credit?

Business lines of credit are revolving loans that give businesses access to funds based on specific assets , most commonly accounts receivable and inventories. Commercial line of credit interest rates are based on an assessment of the overall company credit score

 

 

 

7 Park Avenue 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

Click Here For 7 PARK AVENUE FINANCIAL website !




7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial





7 Park Avenue Financial/Copyright/2021

Tuesday, June 1, 2021

Business Acquisition Loan Success Factors







Afraid to Ask Questions About Business Acquisition Financing ?


Business acquisition financing in Canada. When you are looking for a funder for a merger or acquisition of another company  or if you're acquiring a business,  remember something we heard the other day -  ' Genius is often just pointing out the obvious truth that no one else sees.'

 

So when we recently talked about some critical aspects, you should not overlook this type of financing challenge we remembered ... ' Wait  ... there's more!”

 

It's critical when buying a  business to ensure you understand that both yourself and the other firm have somewhat separate agendas. No question on that one!  Simply speaking, it’s important to step outside those agendas, look inside, and ensure you have the right evidence on assets, cash flow, and valuation.

 

 

WHY DO ACQUISITIONS SOMETIMES NOT HAPPEN? 

 

Experts in the field say that trends now show that while there seem to be many businesses available for purchasing and financing, many deals fade into oblivion on a target company. A lot of reasons might exist for that fact when it comes to how to finance an acquisition - Some of them might be:

 

Poor objectives of buyer and seller

Inadequate financing knowledge of a proper financing structure

 

As an acquirer, it’s important not to underestimate your capacity to value and finance a deal, as tough as it might seem to admit that.

 

IT'S ALL ABOUT ASSETS, CASH FLOWS, DEBT!

 

Many purchasers and sellers have a huge challenge in assessing existing and future debt issues in your deal. Aside from organic growth, the synergy of a merger or acquisition of an existing business has tremendous appeal in the company's growth of products and services.

Financing is often about the amount of debt that is in fact existing or planned and does not necessarily make or break a deal. Most experts seem to say that it’s all about two things in mergers and acquisitions  - hard assets and cash flows. And by the way, that’s future cash flows that you can reasonably predict!

 

PRIVATE TRANSACTIONS HAVE NO PUBLIC LIQUIDITY, AS DO PUBLICLY LISTED COMPANIES

 

Remember that unless you're purchasing a public entity, which certainly doesn't happen a lot in the SME sector, the liquidity issue around all those assets and intangibles doesn't really exist.  So your challenge is, yes, to understand the value of assets and cash flows, but don’t forget those items such as intangibles!  Perceptions of clients and lenders for smaller firms are equally as important.

 

THE CASH FLOW MULTIPLE IS A COMMON VALUATION PRACTICE

 

There are, of course, some real basic methods to value your acquisition or merger and assess the financing needs. Businesses in the SME sector will typically be valued at a multiple of current cash flows. The time period in which you will be able to retire and pay back debt is also important.

 

Oh, by the way, don’t forget those skeletons in the closet! They might include existing financing and credit problems with banks and other lenders, bad publicity, upcoming industry issues, potential loss of major accounts, and overvalued assets.

 

5 METHODS OF SUCCESSFULLY COMPLETING ACQUISITION  FINANCE / TAKEOVER / OR BUYOUT

 

You do have the financing tools available to make the ' right ' acquisition. They include-

 

Government business loan - The ‘SBL.’ =  SBL loans will cover acquisitions up to a loan amount of 350,000. Interest rates are very competitive, and repayment is typically over a 2-5 year period, so well-planned SME/SMB transactions should safely cover loan expenses and financing costs.

The federal government guarantee on the program provides a guarantee and safety measures for Canadian banks who in turn can now lend money on acquisitions that might otherwise not meet bank criteria - For qualification under the Canada Small Business Financing Program, talk to 7 Park Avenue Financial.

 

Down payments/ owner equity range from 10-40% for acquisitions when using this program. However, the borrower must meet the SBL  requirements on the size of the business ( revenues must be under 10 Million dollars ), which includes limits on net worth, income and credit score, and overall loan size regarding the 350k cap.

Many borrowers avoid the program due to the 'paperwork' and application process, including the need for a business plan. 7 Park Avenue Financial prepares business plans for our clients that meet and exceed bank and other commercial lender requirements.

 

Asset Based Lending - ' ABL' lending focuses on the balance sheet and the  concept of a leveraged buyout - funding for accounts receivable, inventories and fixed assets and real estate

 

Bridge Loans

 

Cash Flow loans / Mezzanine financing -

Mezzanine loans are cash flow loans that are often termed  ' the middle  ' of debt and equity financing - Cash flow is the collateral for the loan, and typically no other collateral is required for a mezzanine loan - This financing typically ranks behind a senior lender. It can be a key component of a final business purchase financing.

 

Bank term loans/lines of credit - Most banks, even those dealing with SMEs, have specific provisions put aside for financing an acquisition, including the government loan program. With interest rates remaining historically low, it is still a good time to avail of a bank option when the price for your transaction is substantial.

 

Canadian banks will often provide the best terms: aware that your business prospects are looking positive, they’ll be keen to keep your business in-house in a current relationship. It goes without saying that this is an angle that you should leverage when looking for a bank loan for a business acquisition if your transaction meets bank credit quality.

Banks look for strong management and a personal commitment to the business.

 

A term loan structure is typically the standard bank acquisition financing financial structure- complemented by a lien of credit to augment the purchase. Ongoing and future equipment needs can be achieved via leasing or business equipment loans from the bank or third-party lessor/lender.

 

Seller FinancingOwner financing is another method to fund an acquisition deal. Also known as  "seller finance," it can add greatly to the creativity around a deal structure. Offering equity to the owner/owners of a target firm to finance a business acquisition can be one way of smoothing the process.

This would involve giving them some equity in the newly merged firm. If that is undesirable for various reasons, creative strategies around a seller note/vendor take-back of debt need to be taken on in your transaction - minimizing the funds that need to be borrowed.

The combination of reduced costs and potential flexibility on deal terms helps minimize funding from a bank or third-party commercial lender.

Many buyers often forget to assess the ongoing operational costs of the business, which may include needs, for example, for new staff, technology, the infrastructure around operations, etc. Purchasers who forget to take into account these points are at risk for the future success of the transaction.

 

types of financing for business acquisitions and how to get a loan for buying a business

 

 

CONCLUSION - BUSINESS ACQUISITIONS IN CANADA

 

While many entrepreneurs explore private equity or venture capital, these 2 types of solutions are only applicable to the smallest percentage of transactions for an acquisition loan and typically not in the SME sector of the economy. The acquisition process and interest rates will also vary dramatically based on the size and complexity of your transaction.

 

Favourable low rates in the current Canadian economy make rates for acquisitions easier to achieve and assist in letting a company reach new economies of scale, allow for an increase in the size of the company's operations and sales revenues.

 

Hopefully, we have pointed out some of those ' obvious ' truths that will make your small business acquisition and financing more successful. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist you with your business acquisition financing and funding needs.

 

Let's get started on acquisition loans and solutions and resources to make your acquisition deal work.

 

 
FAQ: FREQUENTLY ASKED QUESTIONS 

 

What Is Acquisition Financing?

Acquisition financing allows users to meet their current acquisition aspirations by providing immediate resources that can be applied to the transaction. Acquisition financing is the capital that is obtained to buy another business. A business acquisition loan helps entrepreneurs acquire an existing business, franchise,  or buy out a partner or owner.

 



7 Park Avenue 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

Click Here For 7 PARK AVENUE FINANCIAL website !




7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial






7 Park Avenue Financial/Copyright/2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Acquisition Financing Funding Merger | 7 Park Avenue Financial

Tuesday, May 25, 2021

Your Revenue Based Financing Solution Is Here







 

 

 

Revenue Based Loans & Financing For Saas Companies In Canada - A Great Venture Debt Solution


 

REVENUE FINANCING IS ALL ABOUT SCALING YOUR BUSINESS!

WANT TO AVOID *EQUITY FINANCING  *( FOR THE TIME BEING !)

 

It's no secret ! The main attraction of recurring revenue financing is the ability of your Saas firm to obtain the capital you need today to focus on your future technology investments.  The ability of a software company to access additional cash is what SAAS Revenue-based financing is all about.

 

'The spread of the computing grid will finally establish the idea of software as a service ' ( Source - economist.com )  Let's dig in on how to finance your SAAS revenue growth rate via a monthly revenue formula solution that works!

 

 
THE POWER OF YOUR COMPANY'S SAAS SOLUTION & SUBSCRIPTIONS BASED BUSINESS MODELS 

 

It's no secret why your company provides significant advantages to your customers via your cloud/internet solution. Your clients can also ' scale ' allowing them to utilize your services to the extent they need it, with growth or downsizing readily attainable. With the need for hardware and infrastructure gone your clients save in numerous ways including labour and tech investments.

 

The concept of pay per use drives Saas companies such as yours to allow clients to budget for growth capital and ' scale ' without major setup costs or the challenge of downtime

 

HOW DOES SAAS FINANCING WORK? REVENUE BASED LOANS 101!

 

A properly structured recurring revenue financing facility allows you to access funds on a regular basis, creating a borrowing base that is calculated by establishing a multiple of anywhere from 5-7 times your monthly revenues. That deferred revenue in the Saas business model is a tough nut to crack from a financing perspective and accessing a fixed percentage of fund inflows is a solid way to beat that challenge.

As we noted, this in effect creates an established predictable borrowing base for cash flow and working capital needs to run the business. Those needs are typically in the area of salaries and wages, technology investments in your infrastructure,  and general working capital needs.

The ability to access business capital without the need for future private equity capital or other types of equity investments is by far the great attraction of funding those recurring revenue streams!

 

WHAT ARE THE BENEFITS OF A PROPERLY STRUCTURED

Is your Saas firm eligible for simple and effective revenue-based financing loans? You only need to demonstrate the firm's contracts and the cash payment terms from your contracts - which as we noted might be based on monthly, quarterly, or in some cases annual payment.  Let the 7 Park Avenue Financial team ensure your funding needs are covered and tailored to your finance and cash flow needs as required by changes to the growth of your revenues - all the time delivering a non dilutive form of funding.

 

7 Park Avenue Financial technology financing expertise can benefit your firm from your infrastructure and platform financing needs for upgrades and purchases to your client solutions.

 

How can your company access the cash flow you need today without waiting for tomorrow! Let's dig in!  The challenge of growing a  ' Saas ' business is the need for additional capital for new and or larger contracts to grow the client base, and of course your firm's valuation. In today's lightening speed competitive environment no software firm can afford to lose out on new business and growth of your client base.

Similar to other types of venture debt such as SR&ED Financing the  Saas  business model is all about unlocking cash flow by monetizing contracts in the case of Saas, and  r&d in the case of sr&ed development & finance. 

 

Many Saas businesses also file SRED Funding claims to accelerate cash flows - Refundable tax credits are key factors for many Saas firms. If your business bills your client base on a monthly, quarterly, or longer-term basis the potential challenge to your business is the timing of cash flows to run your business.

 

LET'S MAKE SURE WE UNDERSTAND WHAT RECURRING REVENUE IS!


Recurring revenues arise out of contractual arrangements you have in place for your service/application.  Contracts and client agreements like these allow your firm to have predictability in stable cash inflows for the length of your client agreement.


CHALLENGED ON HOW TO FUND AND INCREASE RECURRING REVENUE?


Recurring revenue finance solutions allow you to borrow today against those future cash inflows from customers. The availability for finding in advance of customer payments is what Recurring Revenue financing is all about.

For example, if you are billing on a monthly basis we could call that financing a current  MRR LINE OF CREDIT - ( MRR = monthly recurring revenue ), establishing a maximum loan amount is easy after that.

 

HOW DOES SAAS FINANCING WORK? ( RECURRING REVENUE LOANS )

 

A properly structured recurring revenue financing facility allows you to access funds on a regular basis, creating a borrowing base that is calculated by establishing a multiple of anywhere from 5-7 times your monthly revenues.

As we noted, this in effect creates an established predictable borrowing base for cash flow and working capital needs to run the business. Those needs are typically in the area of salaries and wages, technology investments in your infrastructure,  and general working capital needs.

The ability to access business capital without the need for future private equity investments is by far the great attraction of funding those recurring revenue streams!

Interest rates for Revenue financing are mezzanine type rates - the attraction is access to capital versus the cost of capital for savvy entrepreneurs who understand the value of equity!

 

WHAT ARE THE BENEFITS OF A PROPERLY STRUCTURED


Is your Saas firm eligible for simple and effective revenue-based financing loans? How do Saas financing companies assess your application!  You only need to demonstrate the firm's contracts and the cash payment terms from your contracts - which as we noted might be based on monthly, quarterly, or in some cases annual payment depending on your company's business model.

 Let the 7 Park Avenue Financial team ensure your funding needs are covered and tailored to your finance and cash flow needs as required by changes to the growth of your revenues and to delay the risk of equity dilution.

Business owners and financial managers of small businesses can only imagine the benefits of ARR lump-sum financing for those annual contracts.

 

That's the Saas debt financing promise when a few key factors around what stage your business is in come into play and can place stress on your company's cash flow under the subscription based revenue model, even if you have good gross margins which are desirable in this form of finance.

 

The early stage of every Saas firm is somewhat predictable :

 

Higher cash needs/cash burn

Larger investments in r&d

Mastering beta releases/upgrades

Increasing revenue and funding the cost of customer acquisition in your market/industry via digital channels, etc


7 Park Avenue Financial technology financing expertise can benefit your firm from your infrastructure and platform financing needs for upgrades and purchases to your client solutions.

 

CONCLUSION - SAAS REVENUE BASED FINANCING IN CANADA

 

If your software firm has a recurring revenue model and proven revenue streams equity-free Saas funding is a great financing tool that avoids ownership dilution in your business at a time when revenue is grown and your valuation increases. That's the promise of 7 Park Avenue financial and other debt providers who, unlike most banks,  don't focus on personal guarantees, balance sheet ratios, etc.

 

Angel investors and VC's will also require board seats! Let's not forget that one.

 

Let the  7 Park Avenue Financial team deliver a revenue-based financing term sheet that meets your growth and capital needs. Saas revenue financing is the solution you have been looking for while you focus on job #1 - customer acquisition.

Speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with the challenges of waiting for future cash payments from your clients based on multiples of your monthly, quarterly or annual (ARR financing ) contracts with customers.

 

It's a subscription-based software finance solution you've been looking for. Consider the benefits of having long-term clients that comes with a financing solution via loans for annual recurring revenue financing for your growth initiatives. Saas capital can be utilized over a long period of time while your company uses these funds to grow sales and increase the value of the business.

 

Whether you are an established firm or looking for sales royalty financing for startups we've got the solution you are looking for!

 

 Saas businesses have tremendous growth potential. Growing valuation multiples for SAAS growth companies is job #1! Let's get started!

 

FAQ: FREQUENTLY ASKED QUESTIONS

 

What is Software As A  Service ( Saas )?

Saas is a software solution based on the cloud computing model. It allows a software firm to deliver its solutions and application via the internet via a website or other applications.  Infrastructure can also be delivered under the Saas model.

 

What is Recurring Revenue Financing?

 

Recurring revenue finance loans provided capital to offset the time required to recognize future recurring sales contracts. If a Software as a service company  ( ' SAAS' ) receives monthly, quarterly, or annual payments from clients the SAAS company can monetize these contracts for cash flow needs.

 

What is venture debt?

Venture debt is financing via loans or lines of credit firm firms that have a history of operations but are still at a point where they don't have operating cash flows sufficient to sustain or grow the company's revenue and are unable to access bank loans and traditional financing. ' Tech banks ' are virtually non-existent in Canada which is the appeal of MRR based loans. With a solid advance rate and no restrictive covenants venture debt works! While Canadian banks of course offer lower interest rates the typical emerging Saas firm cannot access the low-cost bank capital they need.

 

More Information? 

Check out the ' Startup Genome Report ' which identified to the industry that ' premature scaling of Saas businesses led to the majority of business failures in Saas - underlying the importance of critical financing solutions along the way.

 

7 Park Avenue 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

Click Here For 7 PARK AVENUE FINANCIAL website !




7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial








7 Park Avenue Financial/Copyright/2021

Recurring Revenue Financing Saas Financing | 7 Park Avenue Financial

Wednesday, May 19, 2021

Buying A Business In Canada : Acquisition Financing








 

HOW TO FINANCE A BUSINESS ACQUISITION 


Buying a business in Canada. Talk About Temptation! We’re talking about acquisition financing solutions for private companies and purchasing an existing business that's already profitable, or, on the other hand, a firm that is challenged and due for your turnaround. In both cases, current owners might be motivated to sell, but for different reasons!

 

ARE YOU CONSIDERING BUYING A TROUBLED BUSINESS?

 

How do firms for sale get themselves in trouble? Often it's lack of funding and too much existing debt, as opposed to operating problems which are a whole different kettle of fish. It might be an obvious solution to use your own funds in financing a business acquisition. Those funds typically come from personal savings and investments, equity lines of credit on homes, etc.

 

WHAT ARE THE FINANCING COMPONENTS OF A FINAL BUSINESS PURCHASE

 

However, as a business purchase gets larger in size, it is less probable you will use all or a large part of your personal savings; therefore, a combination of some owner investment, as well as business financing and possible participation from the seller (seller financing ) will most likely be the route you choose to pursue. That combination certainly allows the buyer to consider larger transactions via a third party finance solution.

 

With a solid capital structure, the transition post your purchase will position the business for growth a successful acquisition finance go-forward plan.

 

CAN YOU BUY A BUSINESS WITH NO MONEY DOWN? * SPOILER ALERT - YOU CAN NOT!

 

AT 7 Park Avenue Financial, we often receive queries around the concept of ' 100% Financing ' in financing the purchase of an existing business. In general, this does not exist in the Canadian marketplace for business acquisitions -  ( we can't speak for our more risk-oriented friends in the U.S. ! ) Your owner equity/down payment contribution is your proof of commitment to the deal.

 

Both sellers of companies, as well as commercial lenders, want to see the proverbial ' skin in the game, 'demonstrating the purchaser's commitment to the transaction. Large transactions in Canada make use of private equity funding and equity financing  - this type of financing is not really applicable to the SME/SMB business landscape in Canada.

 


 

THE BUSINESS OF VALUING YOUR ACQUISITION - ESTABLISHING  THE VALUE OF YOUR ACQUISITION TARGET COMPANY

 

Some immediate issues to look into are arrangements with current lenders. This is often the scenario of working capital is extremely limited due to the current financing structure. There are numerous ' valuation techniques ' in business acquisition loans when establishing the right price for the business purchase and ways to finance the purchase.

If a business is already losing money and has poor or negative cash flows, it's time to take a hard look at the assets. There is no perfect method for establishing the value of the business you are buying, and by the way, profits are not the same as cash when evaluating financing an acquisition.

 

A good valuation strategy is to spend the proper amount of time ' normalizing ' the business's financials. That process allows you to take out or add in expenses not currently reflected in the business and look at how revenues are generated and recognized. Review both past sales and profits as well as your ability to estimate reasonable going forward projections.

 

Many firms turn to ' CBV's ' - Chartered business evaluators for valuation advice for the right price around the finance to purchase a business for larger transactions. The good news about existing assets is there are numerous financing strategies around the type of financing needed  to assist in finalizing a transaction with the right business acquisition loan.

 

 

CAN YOU BUY A BUSINESS WITH A GOVERNMENT LOAN? ( YES YOU CAN!) 

 

These solutions include: The Govt of Canada Guaranteed Small Business Loan (It finances assets and leaseholds and has a new maximum borrowing cap of $1,000,000.00 - the interest rate on the government loan, aka the ' SBL LOAN ', is very attractive, as well as delivering on flexible terms via its term loan structure.

 

Sale Leasebacks - Equipment financing and leasebacks preserve cash and allow you to purchase new or used assets with minimum cash outflows - It is a solid way to match the useful life of assets with cash outflow.

 


 

ASSET-BASED LENDING SOLUTIONS

 

Asset-Based Bridge Loans and Business Credit Lines - Leveraging the assets of a business allows the buyer to consider a commercial asset-based lender to facilitate financing the transaction. Not only does this minimize the number of funds you have to invest personally, but it also allows you to capitalize on the true value of the business you are looking at; those assets typically able to be leveraged include fixed assets, real estate, inventory, and receivables. This is true use of the leveraged buyout concept.

 

Seller Financing - At 7 Park Avenue Financial numerous, numerous new clients looking to buy a business do not consider the vendor financing scenario. This is a very viable component of your financing package, and the amount of the loan from the  ' seller note ' and the terms can vary significantly. It's one more tool in your financial toolkit to fund and finalize your transaction.

 

Suffice to say that the seller finance component reduces the amount you will have to finance, which is positive from both purchaser and business lender perspectives. In many cases, the seller will be more open to sharing very detailed and critical information on the business as the seller has a vested interest in closing the deal and preserving the legacy and reputation of the business.

 

Since the seller is not a commercial lender, the terms and rate structure around the ' VTB ' are often more generous than those obtained from banks or finance companies. It should be noted that traditional banks and finance firms will always insist on their financing security ranking ahead of the seller finance component! Nice try, seller!!

 

It would be unusual for the seller component to be larger than what is financed through external commercial lenders, but it still is sometimes a good portion of the final transaction. We can assume that almost all sellers will want full disclosure from the buyer on credit history, business experience, plans for the company, etc. Given they have a vested interest in you, their ' new partner ' for at least a period of time.

 

Naturally, the quality of the assets is key, whether they are fixed ' hard' assets or the assets that represent working capital components - i.e. accounts receivable & inventories.

 

Key point - book values don't tell the true value of the assets, and in some cases, you might need to invest in new technology - i.e. computers/software, etc. (Equipment Leasing is almost always the best way to acquire tech assets given their cash outflow flexibility);This area of ' assets ' should be a top priority in your due diligence.

 

Service companies that have few assets are always more challenging to finance given lack of hard assets. While new owners will almost always be required to put some of their own cash into the business, many financing solutions will also drive the minimum and maximum amount they need to put up.

 

Asset-based lending strategies will often help minimize owner equity investment. While Canadian chartered banks are a great source of financing for acquiring existing profitable businesses, they are somewhat more than reluctant to finance firms with obvious financial challenges.

 


 

BANK FINANCING

 

Banks will almost always focus on a business plan, mgmt experience, the balance sheet and owner personal financial statements. Most purchasers of an existing business will often experience difficulty in accessing total bank financing for the transaction. In a bank transaction for buying the business the bulk of the financing will usually be a term loan that ranks as the senior debt of the company.

Banks will of course place a large emphasis on financial covenants and debt to equity ratios on your acquisition deal via various types of cash flow and 'EBITDA' analysis. Bank financing is always the lower cost alternative if bank lending criteria can be met .

 

Mezzanine financing can be complementary to a small business  term loan and operating line of credit structure - it's very cash flow  based and requires solid proof of historical and present cash flows. Financing is often structured with a mix of senior debt, revolving credit lines, and sub-debt of seller financing making the final buyout structure work!

 

While your business plan and future cash flow projections might be impressive, the banks have a total focus on ' assets ' and ' cash flow. ' They will also place a large reliance on business experience in the industry in question and will be looking for borrowers to demonstrate good personal credit history combined with a reasonable net worth. On certain transactions, you may have to, or choose to, assume the debt of the existing company as part of the financing package.

 

This typically is more advantageous to the seller than the owner for liability-type reasons and should be reviewed carefully if this is a part of your strategy. Suffice to say. Current lenders must also approve the buyer for any assumption of debt. While it is not a ' direct ' bank loan per se, many purchasers of small businesses should consider the Government of Canada Small Business Loan program.

 

This program also works extremely well on franchises. While there are some minimal conditions around the loan program administered by Industry Canada, the program offers good interest rates, flexible repayment, and minimal personal guarantees. All of those should be very attractive to the potential borrower.

 

Prospective purchasers should not forget that a business can be purchased from an accounting and tax and legal perspective as a ' share sale ' or an ' asset sale. ' Purchasing a company from a share sale perspective entails certain risks as you may be acquiring hidden liabilities. Also, buying a business has certain legal fees and miscellaneous costs associated with your transaction. These should be included in your cash flow assumptions, and they might include expenses such as appraisals, legal fees, business advisory fees, etc. 

 

TRANSACTION CLOSED! WHAT'S NEXT? OPERATING THE BUSINESS EFFECTIVELY VIA THE RIGHT TAKEOVER FINANCING STRATEGIES  

 

In the rush and stress to close an acquisition, we find that many prospective purchasers don't give full consideration to the financing of ongoing day-to-day operations. While a firm can be self-financing if its ' cash conversion cycle ' is less than thirty days, it is certainly the most unlikely of circumstances.

 

If your firm does not have a positive cash flow, management can undertake numerous ways to refocus efficiencies - that might include improving days sales outstanding and focusing on better inventory turnover and better payables management with the risk of alienating key suppliers.

 

That need for constant working capital and cash flow replenishment will often focus the business owner and financial manager on looking at a business line of credit. The business line of credit is the cornerstone of operational financing.

These revolving facilities provide cash as you maintain your investment in accounts receivable and inventory. Naturally, service-based industries do not have to concern themselves over the inventory component on the balance sheets of many industrial companies.

 

SOLUTIONS FOR THE BUSINESS LINE OF CREDIT REQUIREMENT

 

Various subsets of asset-based lending provide solution funding for ongoing day-to-day operations posts the acquisition phase.

 

BUSINESS PURCHASE FUNDING SOLUTIONS

 

Asset-Based Non-Bank Lines of Credit - These credit lines are based on all the business's collateral and usually imply a larger amount of financial leverage. These borrowing facilities are usually a bridge to getting a company back to traditional bank financing and don't come with the often more severe covenants and ratio requirements required by our chartered banks.

 

Invoice Factoring / Confidential Receivable Financing - A/R financing strategies are probably the most popular cash flow solution in current times; they allow a business to cash flow their sales immediately and assist in avoiding the waiting period to collect receivables which can easily run anywhere from 30-90 days - At 7 Park Avenue Financial we will often recommend Confidential Receivable Financing, allowing you to get all the benefits of factoring as well as being able to bill and collect your own invoices

 

Equipment Financing / Sale-Leaseback Equipment leasing and leaseback strategies minimize cash outflows to purchase new and used equipment, including technology finance requirements.

 

Purchase Order Financing / Inventory Loans - P O Finance solutions allow your suppliers to be paid directly by the commercial lender for large orders and contracts that your firm might otherwise not be able to finance based on the current working capital structure. Inventory financing can be a standalone finance solution or combined with various a/r and working capital solutions such as factoring.

 

Financing Refundable Tax Credits - For firms in Canada that utilize the federal government SR&ED program, companies can cash flow their refundable credits via an SRED loan, allowing the company to recoup valuable r&d capital through the programs refundable tax credits

 

Supplier Credit - Many purchasers neglect to investigate the potential of supplier financing, which generates cash flow given that extended payment terms delay the outflow of cash

 

For purchasers and businesses not focusing on a larger transaction that might benefit from private equity, mezzanine financing, venture debt etc., it is important to consider all financing options available. Various combinations of alternative finance and traditional Canadian bank lending must be investigated.

 

In any type of business, purchasing leverage is the ultimate double-edged sword. A solid financing package will ensure you are not over-leveraged with debt while at the same time assuming you will have operating financing facilities in place to fund the merger or acquisition.

 
CONCLUSION 

 

It is challenging to recover from over-leverage in any environment, especially when sales are declining. The bottom line?  By considering acquiring another company, and when buying an existing profitable or challenged business, have a strong understanding of your opening balance sheet and the proper mix of current assets and debt.

 

Understand the value of your hard assets and ensure you have a strategic plan and financing in place to cover working capital needs to finance an acquisition properly as well as ensuring you understand options and the competitive state of the market.

 

Looking for a loan to buy a business in Canada and finance an acquisition? Seek out and speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor to assist you in the resources needed and the financing to buy an existing business and ensuring the company's management team is positioned properly with solid financing for sale of it's good and services.

 

FAQ: FREQUENTLY ASKED QUESTIONS

 

How difficult is it to finance an acquisition?

Business acquisition financing can be potentially challenging based on a number of factors that banks and commercial lenders take into account - The overall financial viability of the business, as well as management experience, are key factors for buying a business successfully with a combination of debt, credit lines, and owner equity.

 

What happens to debt in an acquisition?

Buyers will normally either assume existing debt with the permission of current lenders, or they may choose to structure new debt and credit facilities. In share sales, buyers are responsible for all debts even if they are not known at the time of the purchase.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


7 Park Avenue 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

Click Here For 7 PARK AVENUE FINANCIAL website !




7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial







Buying A Business Acquisition Financing | 7 Park Avenue Financial