Worried About Getting A Loan For A Franchise ? - Here's your 2011 Franchise Financing Guideline!

We know you'd rather start the New Year off with a positive attitude about your new role as entrepreneur - let’s demonstrate how you get a loan for a franchise and how franchise financing works in Canada.

Buying a franchise is clearly one of the bigger decisions you'll make in your personal and business life, and you want to be able to do that with specialized information and assistance to help you succeed.

We would never say there are a large number of ways to finance a franchise in Canada , but there are some tried, tested, proven and recommended methods and strategies and we'll show you how they work!

You never want to feel you have been pushed or misguided when you are thinking of getting a franchise financing loan. That's where professional info is always the best solution.

We're the first to agree that the attractiveness of buying a franchise is a powerful concept - you're literally buying a proven formula and it’s no secret that you have a better chance of surviving if you purchase a franchise as opposed to starting your own independent business that has no track record.

So when you decide to finance that franchise the ' legwork’... if we can call it that, is important. Your goals are threefold actually, you want to be able to successfully purchase the franchise, ensure you have some capital to operate it, and finally, growth is important to your overall success, so you want access to growth capital for your business if you need it.

The majority of franchises are cash flow based, i.e. the restaurant industry, so operating capital and growth capital are not as important in those scenarios. But if you are purchasing a business that has receivables, inventory, and equipment needs, well... be aware that those items need working capital financing.

Franchise financing has three parties to it, yourself as the borrower, the franchisor itself, and of course the finance firm or bank. Generally most franchisors in Canada will determine if you are a qualified candidate for them - that includes a combo of business and or industry experience, as well as some sort of qualified financial credit check on yourself that determines you have the wherewithal to successfully purchase a business.

You only need two things to finance a franchise and get a loan for a franchise. Simple, right. Well those two things tend to be the 2 items that our clients worry about - they are Debt, and Equity. Equity is of course the amount of funds that you personally will put into the business - debt is what you'll borrow of course.

In Canada the current environment calls for a 30-50% range owner equity infusion... this number in our opinion seems to have crept up over the years. The debt or loan for franchise acquisition comes from predominantly the government. The government!! clients ask? Yes, because the majority of franchises financing in Canada are done under a special loan program called the BIL/CSBF loan program. To qualify you need a business plan, and miscellaneous info required to support your application.

This loan eliminates a huge part of the risk in getting a franchise, because your personal guarantee is limited, thanks to our friends in Ottawa who sponsor the program. Also, and we think this is great; the loan finances things like leasehold improvements, which typically would be impossible to get elsewhere.

Speak to a trusted, credible, and experienced Canadian business financing advisor who will assist you to complete franchise financing successfully. Getting a loan for franchise finance is not as hard as you think, if you have an expert on your side in 2011.
--

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


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

Asset Based Lending Canada - Why An ABL Working Capital Loan is Your 2011 Finance Solution

Optimistic as us? We would bet a nickel that you're a lot more optimistic about business growth and prospects heading into 2011 - Could it have gotten any more challenging over the last two years? Doubtful !

So how asset could based lending Canada and a working capital loan facility give you all the business financing optimism you might have lost over the last couple years.

Simply for the reason that, when properly utilized and structured an asset based line of credit, aka an ' ABL ' is in our opinion your best bet for a one stop shopping solution for all your cash flow needs.

That’s a pretty powerful statement, so let’s examine what an ABL solution is, how it works, and more importantly, why you should potentially consider it for your business financing and working capital solutions.

Simply speaking asset based lending is a cure all for firms that are highly leveraged, have had some challenges in financial performance, and at the same time have an asset base to move forward on and grow the business .

The term asset based line of credit is in no way misleading - it’s simply a line of credit that finances your assets (receivables, inventory, and potentially equipment and real estate) on a revolving basis. To put it in better context think bank line of credit without the rations, covenants, additional collateral, emphasis on personal guarantees and personal net worth, etc.

An ABL working capital loan or revolving facility simply gives you the tool to grow your business, and that tool is cash. No longer will you have to worry about negotiating seasonal or one time bulge needs in your finance needs, and you could even consider an ABL facility as a solution to acquire a competitor.

In many cases the asset based lending Canada solution that you need is a stop gap against two key challenges, the ability to grow your business when you don’t have enough owner equity and are potentially over leveraged.

Naturally the alternative solution to a working capital facility such as this is for the owners of the company to put in more equity and long term working capital. That typically has a lot of challenges to it, and if you talk to anyone seasoned in business finance you'll quickly learn that giving up equity is a lot more expensive than monetizing your assets, which is what a working capital loan facility does when you consider the ABL solution .

So how does the facility work - it is a non bank solution with an independent firm, and provides you with 90% receivable financing, and inventory borrowing that’s based on the actual value of your inventory, not some pre determine cap or limit that many banks impose. (That’s because banks generally don’t have the ability to understand your inventory values - ABL lenders do!).

Asset based lending, in our experience is a bit more costly than traditional banking, but the upside is you have unlimited cash flow financing for your growth and unique business challenges. One other perceived disadvantage of asset based lending in Canada is simply that you have to report on your a/r and inventory in a more timely fashion - Quite frankly though we often tell clients that type of reporting will help them understand their business better .

So, you're probably intrigued! As we have shown you a solution to expand, meet cash flow needs, and access working capital cash flow that might otherwise not be available. Speak to a credible, experienced and trusted Canadian business financing expert on how to access a working capital loan and operating facility today - It’s your 2011 best bet for business financing.

--

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Get A Cash Flow Solution In Place For Working Capital Financing – Your 2011 New Year Resolution

What if... just what if you could eliminate your working capital financing issues via a cash flow solution that works as you head into 2011 and beyond? That surely is the wish of most, if not all Canadian business owners and financial managers.

The reason you need that working capital is of course to pay of all your short term obligations in a timely manner. Typically those are accounts payable and items such as lease or loan payments, and of course we're including payroll and salary obligations in there.

As a business owner you need to be aware of whether your overall working capital position is stable, declining, or even increasing. There are some very simple measurements to assess overall situation. One of the most basic measures is simply to monitor sales growth against those current assets. Quick example - if your sales are growing by 20% per annum but you determine your receivables and inventory have grown to 35% of their former values, then, guess what, you have a working capital solution need . No surprise there, as most business managers intuitively know the strains that working capital needs place on a business.

Unlocking. That’s the key to a cash flow solution. What do we mean by that? Simply that you have to do two things to unleash the cash flow that is invested in your business in the form or receivables and inventory. First, you have to improve turnover. That’s an internal thing, and we can’t help our clients on that one, you have to do it yourself. Collect receivables faster, be more diligent in extending credit terms, and control your inventory.

Secondly, and here’s where are clients do ask for external help, is the need to ' monetize ' working capital accounts. How can that are done. The most common solution is bank financing via an operating line of credit for A/R and inventory that would address working capital financing needs.

But most business in Canada today, certainly in the small and medium sized sectors can’t access all the bank financing they need. if at all .

In business you achieve positing working capital financing via profits which fund growth, borrowing on a long term debt basis ( not our favorite!), or selling assets .. Again the latter not our favorite.

What is our favorite then?! It is, as we said, monetizing current assets. You do this via a working capital facility that margins A/R and inventory properly. These facilities, when combined with the inventory component, makes sense for firms with monthly a/r and inventory balances in excess of 250k. When that amount is less than 250k a receivable financing strategy is required. Our favorite is confidential invoice financing or discounting, which we feel is the ultimate cash flow solution. It allows you to bill and collect your own receivables and turns your firm into a cash flow machines readily able to handle all manner of sales growth.

Speak to a trusted, credible and experienced Canadian business financing advisor - he or she will help you pinpoint the working capital challenges and focus on a specific solution that makes sense for your firm. That’s a solid New Year resolution for your business that is achievable.

--
Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Is a Leasing Company Your Best Choice For Business Equipment Financing – Choose Business Leasing That Makes Sense !

Common sense financing, fast approvals and flexibility that makes perfect sense for your firm - that’s why when you want to lease business equipment a leasing company is your best choice for business leasing financing.

If we were to ask you to name ten quick benefits of any type of business financing in Canada we quite frankly cant imaging you would name any other type of finance other then leasing . Just think about it.

Ten, yes ten solid reasons to consider a leasing company for your right choice of asset finance. Lets recap them - technological obsolescence protection, accounting benefits, cash flow management, potential tax savings, the right to own or not own the asset at the end of the lease, convenience, ability to match the asset financing to its useful economic life, quick credit approval ( boy do we like that one !) and finally often a lower cost and cash outflow .

Whew! That was a mouthful of reasons. Let’s circle back on one of those benefits, the issue of a prompt credit approval.

Canadian business financing got really challenging in the last couple years. Traditional financial institutions that funded equpment such as banks and insurance companies quite frankly simply stopped funding your business leasing needs. The leasing company you probably worked with also borrows, just in case you didn’t realize it. Somehow we all survived and as we head into 2011 the equipment financing industry is on a pretty good roll.

We keep coming back to flexibility when clients ask us about what the best choice options are in business leasing. Always remember that when you choose to finance an asset you can enter into a lease to own scenario, aka a 'capital lease ' , or, continuing on our theme of flexibility, you can opt for an operating lease - which simply states your desire to use an asset, not own it . Equpment that depreciates quickly, needs to be replaced due to technology, etc, is the perfect choice for an operating lease option.

Asset financing from your business comes out of very different needs - it might be a photocopier for the office, (or computers), equipment for your shop floor, and, even a commercial jet for your corporate meetings! (Well, we can dream , cant we?!). Our point is simply that any type of asset can be leased, and often bundled in with other ancillary services such as installation, maintenance, warranty, etc. Again, there’s our flexibility again.

Do you have a personal business relationship with the hundreds of lease companies in Canada? If you do we're jealous, and you obviously have a lot of time on your hands. If you don’t, speak to a trusted, credible and experienced Canadian business financing advisor who can ensure those many benefits of business leasing can be matched with the leasing company that suits your needs.
-

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


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

The Only Disadvantage Of Factoring Receivables And Why Confidential Accounts Receivable Finance Works!

Looking for a creative, ‘outside the box’ Canadian business financing solution? You may have investigated factoring receivables already but either didn’t understand how accounts receivable financing works, or, probably more to the point weren’t comfortable with how it works for your firm on a daily basis.

We've got the perfect solution for those worries, and its called confidential receivable financing, in Europe its more commonly known as C I D, confidential invoice discounting .

Let's examine why this type of business financing works in general, and then let's focus in on why our solution makes a solid solution even better.

In general terms when you 'factor ' your receivables you essentially sell them to the factoring firm. That can be done on a one of basis, on a periodic basis, or all the time. That’s one of the key advantages of this type of financing, you only use what you need, and... More importantly, you only pay for what you use!

Paying for what you use in accounts receivable financing is key because factoring, in general terms can be a more expensive type of financing. We say ' can be ' because quite frankly if you use it properly it actually could be a cheaper method of financing than your bank. That's a point our clients are always amazed at when we discuss this type of Canadian business financing.

The cost of factoring receivables can be significantly offset, or in some cases removed completely by your firm using these funds to take supplier discounts and purchase more efficiently and at better prices .

And... Think about this carefully, if you can finance your receivable the days you issue the invoice (that’s what factoring does) then you are in a position to generate funds to sell more products and services to your customers, generating additional margins and profits. Or, of course, you could take the non factoring approach and wait for your customers to pay you in 30, 60, or... dare we say it, 90 days. And that hasn’t worked for you in the past, which is why you are looking for a better solution.

So lets examine how factoring works, and lets get you over the hump, so to speak, on why our preferred type of accounts receivable financing is confidential invoice discounting .

When you generate an invoice under a factoring receivables agreement you receive 90% of the invoice in the form of immediate funds the same day. The other 10% is a holdback, and is remitted back to you promptly when you customer pays, less the financing charges, which are typically 1.5 - 2% for a 30 day period.

In 99% of traditional factoring arrangements the factor company verifies your invoice with your customer and actually collects it. Under confidential invoice discounting you bill and collect your own receivables, and are in a position to finance your firm without your customers and suppliers having anything to do with how you finance your business.

Speak to a trusted, credible and experienced Canadian business financing advisor on why confidential accounts receivable financing will work for your firm, allowing you to supercharge that cash flow and those profits!

--


Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


http://www.parkavenuefinancial.com/factoring_receivables_accounts_receivable_finance.html

Guess Who’s financing inventory and using purchase order Finance ( P O finance) ? Only Your Competitors – that’s who !

It's time. We're talking about purchase order finance in Canada, how P O finance works, and how financing inventory and contracts under those purchase orders really works in Canada. And yes, as we said, its time... to get creative with your financing challenges, and we'll demonstrate how.

And as a starter, being second never really counts, so Canadian business needs to be aware that your competitors are utilizing creative financing and inventory options for the growth and sales and profits, so why shouldn’t your firm?

Canadian business owners and financial managers know that you can have all the new orders and contracts in the world, but if you can’t finance them properly then you're generally fighting a losing battle to your competitors.

The reason purchase order financing is rising in popularity generally stems from the fact that traditional financing via Canadian banks for inventory and purchase orders is exceptionally, in our opinion, difficult to finance. Where the banks say no is where purchase order financing begins!

It's important for us to clarify to clients that P O finance is a general concept that might in fact include the financing of the order or contract, the inventory that might be required to fulfill the contract, and the receivable that is generated out of that sale. So it’s clearly an all encompassing strategy.

The additional beauty of P O finance is simply that it gets creative, unlike many traditional types of financing that are routine and formulaic.

It’s all about sitting down with your P O financing partner and discussing how unique your particular needs are. Typically when we sit down with clients this type of financing revolves around the requirements of the supplier, as well as your firm’s customer, and how both of these requirements can be met with timelines and financial guidelines that make sense for all parties.

The key elements of a successful P O finance transaction are a solid non cancelable order, a qualified customer from a credit worth perspective, and specific identification around who pays who and when . It's as simple as that.

So how does all this work, asks our clients .Lets keep it simple so we can clearly demonstrate the power of this type of financing. Your firm receives an order. The P O financing firm pays your supplier via a cash or letter of credit - with your firm then receiving the goods and fulfilling the order and contract. The P O finance firm takes title to the rights in the purchase order, the inventory they have purchased on your behalf, and the receivable that is generated out of the sale. It's as simple as that. When you customer pays per the terms of your contract with them the transaction is closed and the purchase order finance firm is paid in full, less their financing charge which is typically in the 2.5-3% per month range in Canada .

In certain cases financing inventory can be arranged purely on a separate basis, but as we have noted, the total sale cycle often relies on the order, the inventory and the receivable being collateralized to make this financing work.

Speak to a credible, trusted and experienced Canadian business financing advisor as to how this type of financing can benefit your firm.

--
Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Film Finance via independent film funding and the Canadian Film Tax Credit

Getting your film funding in place. It seemed like a short project and challenge at the time! However most independent film finance becomes somewhat of a journey, and that’s of course an understatement. But the Canadian film tax credit can help you play a huge role in pulling the financing for your project together.



Call it a challenge, call it , as some have, ' tricky' or call it skill, but the monetary part of your film , tv or digital animation project becomes a huge part of the producer and owners direct efforts for successful completion of any project .

We are often amazed at how little it takes, in funding, to complete a professional project in any of our 3 entertainment genres (film, television, and digital animation). Yet even smaller budgets have huge financing challenges when you don’t have the financial backing of a major studio. Therefore your total costs of securing rights, paying actors, and actually producing the project often requires a long timeline.

Enter, at stage left, the Canadian tax credit. This is clearly the savior of many a production that is domiciled in Canada, often paying for 30- 40%, and more of a total production. We certainly not saying the rest of your financing becomes a 'cake walk ' , as the expression goes, but our clients routinely maintain that the additional equity, debt, and co production and distribution agreements are much easier to put in place when you utilize the Canadian tax credit .

Naturally the more film funding you can rise via the film tax credit in Canada, as well as debt you can arrange simply means that you are not diluting your ownership position and therefore positioning you well for any financial success on your project.

Its all about partners in business today, and film finance is no exception. By partnering financially, in the right manner, with either co production agreements or Canadian film tax incentives you are able to maintain proper ownership of your project, and that’s of course what it is all about.

Let’s circle back to the Canadian film tax credit. The credits have become increasingly more generous over the years, and apply to all Canadian provinces where you might choose to shoot, film or product your project - depending on your genre again. By properly budgeting your project in a realistic manner an experienced Canadian film financing consultant can assist you in determining the exact amount of dollar eligibility for your tax credit. The tax credit becomes a part of your financial statement filings for the specific legal entity you have created for your project.

You can then finance the credit, which is a non repayable grant/credit from the government. Naturally you can simply wait for the credit, the ' cheque is in the mail ' so the saying goes, but many of our clients choose to finance the credit as soon as they have it certified. Receiving this funding in advance often creates a huge and positive working capital injection that actually helps finance of course the cost of the film. The tax credit is in essence the collateral for the bridge loan you arrange for the film tax credit itself.

Financing and film funding utilizing your Canadian film tax credit can be accomplished in a manner of weeks, and its all about having a budget, a tax credit calculation, and a firm finance plan that identifies the other parts of your project as complete .

Speak to a trusted, credible and experienced Canadian film tax credit financing advisor as to how you can maximize your return on investment for your owners and lenders via the film tax credit in Canada. It's a cash flow 101 great strategy!

-

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


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

How To Qualify For Sred Tax Credit Financing and Why Sr ed Program Cash Flow works!

Get with the Program ! is an oft used term in business that we often hear . Well, a Sred tax credit financing for Sr Ed program cash flow clearly puts you with the program!

Why Canadian business owners and their financial managers don’t take advantage of the SRED (formally the ' Scientific Research and Experimental Development) tax incentive is beyond us. And when they do take advantage of the program and then don’t at least consider financing their tax credit we really wonder about what they are thinking! Because we can assure our clients their competitors are both utilizing the program as well as financing their claims for instant cash flow and working capital needs.

To finance a claim you of course have to have one, so let’s take a small step back and re cap the program. It's simply, bar none in our opinion, the best government grant type program out their, and grant of course means non repayable and we like that even better.

The program has been around now for 30 years and provides Canadian business with billions of dollars of non repayable grants for the work and funds you expend on R&D in Canada. Almost 20,000 firms take advantage of the program annually - that’s a lot but in reality many firms that are eligible apparently don’t - either not knowing about the program or we guess not interested in free funding. If you can believe that!

The sred tax credit financing program allows you to claim for expenses that qualify in equpment, training, parts of your overhead and salaries, as well as of course the core research you do in developing new products and services.

So, you have determined you qualify, and are further interested in both preparing your claim as well as financing it immediately after it is filed. How is that done ?

SR Ed program cash flow arises out of the claim you file. Larger claims mean larger financings - in Canada typically 70% of your total claim can be financed - that typically means for every 100 dollars of claim filed you receive a bridge loan of 70 dollars. Those funds can be used for basically any sort of corporate purpose. We typically encourage clients to consider using the funds for general working capital, reduction in payables, equipment acquisition, and, who could forget, more research and development to stay ahead of your competitors in the market place.

Good sr Ed claims are usually prepared by qualified sr Ed consultants that know your industry. They maximize your claim and their credentials add professionalism to the viability of your claim being approved in totality. Even if the claims are clawed back the program managers in Ottawa it still of course makes sense to file a claim.

To successfully complete a sred tax credit financing you simply complete a basic business application and provide details of your filed sr Ed. The claim itself is of course the collateral for the bridge loan. Sr Ed program cash flow makes sense because you are simply monetizing a receivable (the sr Ed claim itself) and taking advantage of using non repayable cash now, as opposed to in the future.

Speak to a trusted, credible and experienced Canadian business financing advisor on why cash flow for sr&Ed claims might make great business sense.

--
Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Looking for Ways To Finance a Franchise ? There Is Only 1 Way When Financing a Franchise Investment!

You're there. You have made the decision. You're committed. You have timelines now. We're talking about your franchise finance decision and the next challenge you have in the franchise process - financing a franchise. How many ways to finance a franchise are there? Only one... the right way! And we'll show you how.

The ability to finance your franchise properly and satisfy the requirements of the franchisor without putting you overly in debt is what it’s all about of course. And if you do it right then you of course have the potential to grow a business, profit from it, and build owner equity for either long term resale of personal financial gain. That's simply what it's all about, and boy does it help if you like what you are doing, at the same time taking on the entrepreneurship role in Canadian business.

The good news is that your are lucky, because franchising couldn’t be any hotter or more popular. Franchises move goods and services in the billions in Canada, and you're now part of that movement.

But let’s be realistic, whether it’s a franchise investment of any other business start up the same critical needs apply relative to planning and financing.

Homework. Did you hate it in school? Well here it is again because we strongly suggest to clients that you are now in homework mode when determining how financing a franchise works. It’s all about planning, which includes ensuring you have a profitable potential business on your hands, as well as understanding ways to finance a franchise in Canada.

Business plans are critical to your franchise investment. It's a case of demonstrating your business has both profit potential plus, and this is what interests the lender, that you have the ability to repay your debt and loans. The franchisor naturally is interested in long term success of the chain, and your ability to pay royalties as they become due, usually monthly.

When you address the franchise finance decision you must consider a number of items - they are as follows - what is the total all in cost, what methods are available to finance each part of the cost breakdown, and finally, and perhaps most importantly, how is the actual financing done.

The costs to assess in a franchise finance investment are as follows - the initial franchise fee, the cost of fixed assets or leaseholds to your business - i.e. equipment, signage, vehicles if required, etc. And finally, if you did all that and didn’t address working capital for ongoing operations and growth then you are setting yourself up for failure.

Clients are always looking to us for a magic solution and a one stop finance strategy for their franchise investment. The closest we can come to that is the government BIL/CSBF loan, under which the majority of franchises are financing in Canada. You can successfully augment this strategy by equipment financing for a variety of assets as well as a small working capital loan, usually unsecured. Don't forget also that your own owner equity investment becomes the final piece of the puzzle.

And getting back to our business plan, ensure that you have covered off all the debt you need and that if reflects your ability to pay it back.

Financing a franchise. Challenging? Yes, we guess so. Possible? Of course. Speak to a trusted, credible and experienced Canadian business financing advisor with franchise experience who will help you navigate, successfully, the only way to finance your new business - the right way!
--

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Why Asset backed business loans And Asset Lending Make Your Business Financeable For Growth

When was the last time you really found business loans solutions that made total sense for your firm. We're thinking that you will say ' right about now!" after you finish hearing what we’re going to tell you about asset lending and asset back lines of credit in Canada.

Looking for understatements .?We always are. Here's one... ‘Business financing has never been more difficult to achieve than in the last couple years ‘! Now that’s an understatement. It seems to be all about problems and never about solutions.

What if there was a type of business financing in Canada that made all firms eligible yet at the same time gave you access to unlimited amount of credit , and only had one requirement . Too good to be true? Not necessarily. And what is that requirement our clients always ask, and the answer is ' assets ‘.

Canadian asset lending via a non bank asset backed line of credit makes business loans sense today more than it ever has before.

Let’s get to the core of the solution, and then you'' see how that solution can fix your current financing challenges. This type of business operating loan is a revolving line of credit that is secured by inventory, accounts receivable, and other balance sheet asset accounts as may be applicable. (Typically those might be equipment and real estate in some cases)

Is there a size that seems to make the most sense when you contemplate such a financing. We have found through experience that clients that require at least a 250k/mo operating working capital requirement are the best candidates for this type of financing. There is virtually no upper limit on asset based line of credit financing in Canada!

We always come back to the word ' assets' in discussing the availability of this type of financing. On a day to day basis you monitor your receivables, inventory, etc and simply draw down against them. As you can see the facility fluctuates every day simply because each day your firm bills new customers, collects receivables from past sales, and purchases inventory and converts that product into a sale and resulting receivable. That whole process is known as your operating cycle.

Asset backed lending in Canada is a secured form of lending that grows as you grow. That’s the main difference from a chartered bank line of credit, which typically has fixed limits and imposes all sorts of other conditions re rations, covenants, collateral, and personal guarantees on the business owners and managers. That’s now that asset lending via bank line of credit is about in Canada.

The key qualification difference here is that a large amount of the approval process for this type of facility revolves around verifying your assets such as the quality of your receivables, inventory turns, , and your ability to ' scorecard' your business via proper financial reporting every month around receivables and inventory .

Does our solution make sense? We think it does if you are in one of several categories, including not being able to access bank credit, not being able to access enough bank credit, and if your firm is in a growth mode and has assets that can be financing for working capital needs .

Speak to a trusted, credible and experienced Canadian business financing advisor who can guide you through the asset backed line of credit strategy for your firms survival, growth, and profit.
-


Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Staying Afloat via cash flow financing – Cash Flow for Business Solutions

So we're all in agreement, right ? - staying afloat is better than sinking... and talking to clients seeking cash flow for business seems to be mostly what we are doing these days. Cash flow financing for your business, whether you like it or not is at the top of the ‘ worry pile’ for Canadian business owners these days.

We'll discuss the problem, how you measure the problem, and, most importantly, some great solutions both traditional and alternative. And by the way, alternative is fast becoming traditional, but more about that later!

In talking to clients about business financing and business cash flow we always get the distinct impression they feel their business is unique - and that may be so but the truth of the matter is that the cash flow financing challenges you face are being faced by everyone else in and out of your industry.

As a business owner you can be forgiven for thinking your business cash flow financing challenges are unique, probably because of the mix. What do we mean by the mix? Simply that each h company and industry has difference levels of inventory, receivables, payables, all of which factor uniquely into the working capital challenge.

In fact, whether you like it or not, about 80%, yes 80% of all you assets are in receivables, inventory, and to some extent prepaid.

Your ability to ' turnover' these assets is what makes your business successful, or not.

Each industry has different gross margins, and if you have great gross margins then you can withstand a bit less turnover that is required in inventory and receivables. If you are in a low gross margin business turnover is absolutely critical. And you measure that turnover by three key metrics, inventory turns, days sales outstanding or collection turnover, and finally days payable outstanding.

Turnover drives working capital and many business owners kind of know that, but more often than not aren’t focusing on improving that turnover.

So , lets get back to staying afloat , which is what its all about !There are a number of cash flow financing solutions that allow you to address cash flow financing for your business . If it was a perfect world you would have all the liquidity you need from you bank, but bank financing is always a challenge for business, and in many cases inventory is not part of the financing mix that is available.

There are at least 5 great cash flow for business solutions available to help you succeed in Canadian business financing. These include the selling of your receivables, which can be done confidentially, and thereby generating instant cash flow for your company. For firms with 250k+ in assets and receivables you are in a position to be a candidate for a fully margined A/R and inventory working capital facility, available through a non bank solution. Larger firms with significant investments in working capital (receivables and inventory) are eligible for asset based lending which is in our opinion the ultimate Canadian working capital solution.

Most business owners don’t know they can access cash flow financing via the financing of Purchase Orders (p o’ s) and contracts. They allow you to consider orders significantly higher than you could have ever handled in the past. And, finally firms with relatively good financial standing can access unsecured cash flow working capital term loans via non bank lenders.

So whats it all about. We think we have been fairly clear, and hope you agree. It’s about understanding your cash flow financing challenges, measuring them via the turnover of working capital accounts, and finally, accessing any one of the five, yes 5! solutions we have provided .

Speak to a trusted, credible and experienced Canadian business financing advisor as to what makes sense for your firm.

-

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Save Thousands When Utilizing Lease Financing Via Equipment Lease Companies In Canada

Your lease financing strategies in Canada are a balancing act, but do you know how to manage, or even locate the best lease companies in Canada? It's pretty clear to us that our clients are keenly aware of the tight balancing act you face whenever you contemplate an equipment financing acquisition .

We're reminded of the definition of ' Saving ‘... which is simply the act of managing a resource such as your capital and putting it to work in the best manner . But do you have to give up something to get a solid equipment financing approval with a structure that makes sense to your company. We don’t think so, and we will show you how to navigate, successfully! The maze of what is known as equipment financing in Canada.

We are reminded that the best way to be successful in achieving the benefits that lease financing bring to the table is to simply ' visualize ' them. More often than not in lease financing you are focusing on getting a return on investment on your acquisition, and structuring it financially in a way that makes sense.

Can you, as we maintain, save thousands of dollars on an equipment lease when you ' do it right’? We believe you can. But first you have to focus on why you financing the equipment, and why certain lease companies in Canada may or may not be your best bet when you finance.

You finance equipment for some very basic reasons - lets cover them off... and we get rid of the most boring one first, accounting. The accounting treatment of a lease is very important and often mis understood or not properly address when we discuss the issue with clients. For instance, if you can keep the lease off balance sheet you have just delivered a greater return on asset value to the owners or shareholders of your firm. That’s a key measurement used by owners, lenders and investors when they look at your firm. If you firm is capital driven, meaning you need lots of capital to run your business then structuring the right type of lease will have immeasurable positive effect on your performance and operating ratios.

Many operating lenders structure your credit agreements around your rations, and properly handled and accounted for leases can be a real positive in this regard.

Financial and cash flow reasons also drive owner behavior when lease financing in Canada. It's all about working capital preservation. Even negotiating a lower down payment or a higher balloon payment at the end of your lease can save you many thousands of dollars, depending on the size of your transaction. Those savings can be re invested into the company to generate further sales and profits.

Have you made the mistake of acquiring technology on a lease and then having to write down the book value of the lease half way through the transaction when you have just discovered, surprise, surprise! That your technology is now obsolete! Matching the tem of the lease with the useful economic life of the lease can save you thousands in potential equipment write downs in the technology area - think computer investments, telecom systems, etc.

We hate it, but most of our clients are focused on only one thing, which is the proverbial lease rate. Unfortunately equipment lease companies in Canada know this and can do a real number on your firm when it comes to camouflaging the true rate in a lease - this is done by quoting you payments calculated in arrears, getting first and last payments in advance, increasing the size of a security deposit, or charging you per diem rates for project type financing when leasing is required.

If you have all the time in the world and know every nuance of Canadian lease finance then by all means attend and address all of those issues and strategies. Alternatively, speak to a trusted, credible and experienced Canadian business financing advisor who will structure the right lease that focuses on benefits that are real to your firm, saving you thousands in the process. That’s a solid plan to save money !
--


Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Why Confidential Factoring Discounting Is Your Secret Cash Flow For Business Weapon!

In terms of a secret weapon in business one assumes if you had this one you would have a competitive advantage? And that’s what we think confidential factoring discounting will deliver once you understand why it might just be a solid alternative for cash flow for business in Canada.

We're talking about regular and special here. Regular factoring or invoice discounting or receivable financing (all these terms are interchangeable) is the financing of your receivables for instant cash flow and working capital,

This type of financing is becoming more commonplace everyday. When we talk to clients about what they perceive the financing to deliver on the two most common issues they bring up are that they don’t really like how it works on a day to day basis, and secondly, the cost factor seems to always come up.

We think we can dispel both of those issues when it comes to providing a better alternative to address both concerns and misconceptions that our clients have.

We need to step back a bit though and first understand what this type of factoring discounting is, and why the current ' vanilla ' offering in Canada doesn’t work for clients.

At its core the facility is simply ' monetizing ' (a fancy word for ' turning into cash’) your receivables for immediate cash. Your ability to collect your receivables faster creates cash flow and eliminates a lot of business stress! If you have the ability to obtain conventional bank financing naturally you probably would be financing your receivables through the bank - yet in the current economic environment bank credit is more difficult to achieve, and, to make matters worse in many circumstances we see the amount of credit you can get from a commercial bank in Canada is simply not enough for your needs. That’s where the working capital challenge sets in.

So, ' regular ' factoring for cash flow for business works as follows - you generate an invoice, you sell the invoice and receive cash, usually the same day. Sounds great so far right. However, now what happens is that your customer is contacted by the factor firm and they verify the invoice and receipt of goods and services. They also are in collection mode directly with your clients, according to whatever your terms are. The cost of this type of financing in Canada ranges anywhere from 7-8% per annum to 1-3% per month. Factors determining prices are your firm’s general financial profile, the size of the facility you need, and the types of customers and industries you sell into.

So that’s ' regular ' and we can here our clients now saying this sounds kind of ok , but the customer intrusion level is highly undesirable .

That’s where confidential factoring discounting comes in. Here's the kicker. You bill and collect your own invoices! You have now regained total control of your factoring facility, are achieving all the benefits, and it is you who decides what amount you wish to finance on a daily, weekly or monthly basis. And whats more ' special' is simply the fact that the costs of confidential factoring discounting are essentially the same. We also spend a lot of time with clients showing them how they can offset a huge part of the cost of this type of financing via some time worn cash management strategies .

One or two caveats are that the facility should generally involve a receivables portfolio size of at lease 250k, and you have to be able to demonstrate solid operations regarding maintaining updated financials, billing cleanly and properly, and posting payments to the ledger properly.

Not everyone in Canada knows or is aware of this type of financing. Speak to a trusted, credible and experienced business financing advisor as to how this type of financing gives you a major competitive edge over firms using the ' regular' version!

-

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


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

Why You Need Film Tax Credits and Why the Canada Film Tax Credit System Works For Your Project

If they are offering, why aren’t you taking? That's what we ask clients when they bring us questions on film tax credits, how the Canada film tax credit system works, and , most importantly, how can they get their share!

You can call it of course anything you want, an incentive, a non repayable grant/credit, but the bottom line is that Canada has proven itself very serious in the introduction of very healthy tax credits that are non repayable and can form a significant part of your overall film, tv and animation credit financing strategy .

Ours is not to question why... but its pretty clear Canada is serious about stimulating and growing the Film, video and animation industries. The latter, animation is slowly gaining more traction everyday. Naturally job creation and tax and revenue generation from these projects is probably high on the list of ' why' for the government, but again, we want our clients to take advantage of the program, not to debate it!

The credits themselves come out of the government’s tax policy and while they used to be viewed as cumbersome the process has been significantly streamlined over the years, and the overall generosity of the program has continually been increased.

The tax credit is clearly a financial incentive, but at the end of the day we find out clients aren’t viewing it as much as an incentive as in fact a key part of their overall financing strategy. It's necessary to step back and understand the key components of a project financing and why film tax credits have clearly gone straight to the top of the pile as a ' must have ' relative to your overall project financing .

Depending on where you shoot, product, or post produce your project the credits can be anywhere from 25- 45% as a general range. (It varies by project and by genre of project - i.e. Film vs. animation, etc).

The Canada film tax credit provides you with a certificate which is then monetized by the government in the form of a non repayable cheque. Naturally in a perfect world you would arrange your debt and equity financing for your project, calculate your tax credit on the project and then consider yourself fully financed. The tax credit cheque would come from Ottawa after you have filed for it along with the tax filings you have submitted for the specific legal entity project.

But, alas, it’s not a perfect world apparently, and boy could your independent project utilize those funds sooner rather than later. That’s where film tax credits, when financed, can bring valuable cash flow and working capital to your project. When properly financed with the right partner finance firm your credits can greatly assist in the cash flowing of your project, providing valuable working capital during production. We read one article recently that referred to your overall project financing as a ' toolkit ' with a number of potential financing tools inside. Clearly the Canadian film tax credit is one of those tools!

The logistics around the financing of your tax credit can be as simple or as complicated as you make them. Our clients choose simple, so they surround themselves with a good media accountant and legal advisor, they have a finance budget and strategy in place, and they borrow against that eligible tax credit. With the right team around you, you can specifically identify exactly how much you will receive and what amount can be financed.

So , bottom line, call it a subsidy, call it a grant, call it a tax credit, call it anything you want, but utilize the Canada film tax credit as a key role in your independent film, tv or animation strategy . Speak to a trusted, credible, and, oh yes, experienced Canadian business financing advisor who can assist you to prepare and monetize your claim.
-


Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Great Reasons to take your sr ed claim and access sred financing via specialize sred funding Canada Programs

Gimme a reason .That’s what clients often ask when we talk to them about the benefits of both filing a sr&ed claim, and then considering sred financing as a cash flow strategy around sred funding in Canada for cash flow and working capital .

You want reasons, and we have reasons for you to consider...Businesses of all size in Canada utilize the sr&Ed program in Canada to be eligible to receive a huge portion of their expenses in R&D via a non repayable tax credit.

When we tell clients they can utilize a sred financing strategy to increase cash flow and working capital via the r&d credit, well, frankly, they almost cant believe it .

There isn’t a day when the government isn’t issues cheques for millions of dollars on the Scientific Research and Experimental Development (aka " sred!) Program, so let’s all agree that you are eligible for your share. And if you're working on processes and products and re design in your industry then the salaries, products and equipment and even some overheads are taken into account when you file a sred claim.

The sr&Ed claim process is all tied into Canada Revenue Agency. They receive your claim and process it at the same time you file you year end tax return. If you are ok with ' waiting’... and most of our clients are not, you will get a significant cheque back from Ottawa in a number of months.

Clients are always asking us how long they have to wait for a refund, and if there is any way to speed up the process. Far be it from us to be the ones to be telling someone from the government to speed up the process. But what we do advise clients to consider is to finance their sred funding credit as soon as they file it.

Why would you want to finance a tax credit? There are only two reasons, cash flow and working capital now! By monetizing your tax credit you are in a position to take the government rebate and put it to positive use within your company. And what are those positive uses? It's the basics, reduce your payables, buy new equipment, re invest in your entire sr&ed claim process to increase your competitive advantage...and on it goes, basically use those funds for any worthwhile purpose .

How long does it take to finance a claim and whats involved? That's not an untypical question. In our experience claims are financed within two to three weeks. And could the process be any more simple - its all about completing a simple business financing application, utilizing your sred claim as collateral, and undergoing any normal due diligence . Claims of any size can be financed, it typically makes sense to finance claims that are in excess of 130k... but smaller claims can be monetized also.

Speak to a trusted, credible and experienced Canadian business financing advisor around sred funding Canada claims. And use that cash flow which you have achieved in a timely fashion to grow your sales and profits.

--
Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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


We finance the little guy .
P.S. We finance the big guys also!

Don’t Make Mistakes When Searching For Franchise Finance Lenders When You Buy A Franchise In Canada

Business folks often refer to the term ' key to success ‘as part of their business plans. Certainly the key to success when you buy a franchise is to finance it on time, and properly; we tell clients you don’t get a lot of chances to make mistakes when you are working with franchise finance lenders!

The concept of financing your franchise is a broad one... it might be one single loan or a couple different finance strategies to get you to the goal line, which is of course acquirng and owning your own business under a franchise umbrella... in effect the Canadian dream .

Try and try again generally doesn’t work in franchise finance - you more or less, in our opinion, get one chance to do it right . That therefore involves getting all your ' ducks' lined up properly and working with an experienced Canadian business financing franchise advisor, or if you prefer, yourself and the lender directly.

As we said, making mistakes in business finance is not where you want to be - so plan, do it right, and do it once. Let's examine some of those underpinning you need to be successful and avoid those errors.

In general some of those cornerstones are decent personal credit history (more about that in a minute - as we can hear our clients already " what's decent?!), a down payment that makes sense. and a financial plan that demonstrates your ambition to be successful .

This latter point is usually covered off in a business plan. We can’t ever imagine buying a business without a plan, and humbly submit that if you don’t have a plan you are primed to fail - and that’s not a good thing when you have your own funds at stake.

Can you buy a franchise in Canada, and finance it without a good personal credit history. We tell clients the sad truth is that it is difficult, if not impossible, to do that successfully. That’s because franchise finance lenders view your business as both a start up and a small business, and they relate those two terms directly to how you manage your own personal finances as the owner. To put is very simply, the lender is saying ' if this man or woman isn’t paying Visa then why should I think they are going to pay us....’ In Canada the credit bureau system is based on a score to 800 and you need a certain specific number to qualify for franchise financing. Speak to a trusted, credible and experienced business financing advisor as to how you can manage and work through that process.

You probably have spent a large part of your life dreaming about crafting a great business plan, opening balance sheets, 3 years of projected cash flows... loan amortizations, etc. Uh... we're beign a bit sarcastic of course!! But the reality is you need a solid business plan to demonstrate how you will be successful. It’s a great document for benchmarking down the road even how you are doing against your plan.

In Canada the majority of franchises are financed and subsidized so to speak by a special federal program called the BIL program. Don’t make a mistake in not understanding what the qualifications are, and work with an expert if you don’t feel you are comfortable in navigating the finance maze.

So, is financing the key to Success when you buy a franchise in Canada. We'll let you be the judge... but if you are on the side of our opinions plan, and work with an expert , do it right, and avoid mistakes that will jeopardize closing the transaction .

--

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

The Dirty Little Secret Your Banker Won’t Tell You About Asset Based Lending and Asset Finance

Can you blame someone for not telling you about a good thing? Especially when that thing is better than their thing! No surprise then that asset based lending is the dirty little secret in asset finance that that bankers in Canada don’t want to let you know.

We hate to burst their bubble... but what the heck; we'll share that secret with you and touch on why it’s such a powerful non bank financing strategy.

To understand why an asset based lending solution is so different we need to understand what we are comparing it against. The comparison is of course an operating line of credit with a Canadian chartered bank. They are great, low cost, and run smoothly on a daily basis. If... and we repeat if... you can get one and get it increased as you need it.

Your ability to access a business line of credit with the bank focuses in on everything you probably feel isn’t necessary. You have assets; you have growth, so whats the problem. The chartered banks, in their wisdom allocate these lines of credit based on yes... the assets... but as importantly ratios, covenants, personal guaranteees and outside collateral. By the way, we think they do a great job of that... mainly because they are lending you my money which is on deposit at their bank. So all power to safe lending practices, and that’s why Canadian banks are some of the strongest in the world.

That’s all great say our clients, except it does nothing for us when you want to access business credit. That’s brings us to our secret - asset based lending in Canada and why this type of asset finance is a powerful working strategy. And could it be simpler. Not really. It focuses on the two things you have always had... assets and growth potential for sales and profits.

Asset based lending is the ability of your firm to borrow, daily, as you need it , against receivables, inventory, as well as equipment and real estate if they factor into the picture .

It supports you credit needs, and does not, we repeat , does not revolve around those other requirements the banks have, i.e. rations, covenants, emphasis on personal net worth, outside collateral , etc.

Want to know an even more surprising secret. Some of the Canadian banks actually have small boutique divisions of asset based lending. In our experience these divisions don’t communicate properly with regular commercial bank divisions around what their offering is.

So who actually offers this type of asset based lending. In Canada it’s a relatively small handful of firms, some of which are U.S. based, and who have a tremendous expertise on the things you already have, inventory, receivables, and purchase orders and contracts.

Asset finance can cost the same as the chartered bank offering, in ,many cases it costs a bit or a lot more, depending on the size of your transaction .A business line of credit via an asset based line of credit generally starts at 250k and goes up to anywhere up to 50 Million or more!.

Accessing and navigating the maze of this boutique financing is difficult for the Canadian business owner and financial manager. Speak to a trusted, credible and experienced Canadian business financing advisor on why asset based lending is the secret you want to know more about. And why the heck didn’t your banker tell you about it sooner!
--
Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Working Capital and Business Lending in Canada Without the Voodoo!

The other day one of the major U.S. banks released a report around the current ' optimism ' in small and medium sized businesses. God knows we love a good survey about what our competition is thinking!

It's tougher than ever to read through some of the smoke and mirrors, dare we call it voodoo? .. and get a sense of where working capital and business lending is at here in Canada. We're going to do that for you. More importantly we'll give you real world solutions to cash flow challenges.

Optimistic? You may or may not be bullish about your business as many of our clients are still slowly coming out of the recent recession, and from a cash flow and working capital perspective you're more or less hanging on for your life.

If you are forecasting and planning your cash flow needs, say on a 12 month basis your biggest challenge is often how you do get that liquidity squeezed out of receivables, inventory, and purchase orders and contracts. That has been and still is the real challenge.

When looking at your cash flow and financing needs you need to focus in on several key issues and determine how they fit together - typically those issues your ability to collect your receivables and how you are financing them, what your sale growth is going to be, and what type of longer term capital do you need for things like equipment, real estate, etc. Naturally all that has to be benchmarked against how you are currently financing your company.

The U.S. survey we talked about probably mirrors Canada quite a bit... 25% of firms are going to spne on euqipment... most felt cash flow from customers would imporove , and that sales growth and hiring would again resume an uptrend .

As a Canadian business owner you read these types of surveys, see the business news, and yet at the same time still feel a sense of smoke and mirrors, mostly around the fact that working capital and business lending still don’t seem achievable to the extent you want them to be .

You want solutions to your cash flow challenges in working capital. Let's leave the surveys to the pundits and your competition. You want to get back to growing our business and now worrying about working capital pretty well every day.

There are great solutions for working capital via creative business lending in Canada. When we meet with clients they typically are looking for one solution, the ' holy grail' so to speak. In reality we show them that a number of solutions, possibly combined, can get you where you want to be in Canadian business financing.

Those solutions include receivable financing. Heard about factoring but not sure you like how it works... then consider confidential invoice financing... allowng you to bill and collect your own receivables .

Looking at new equipment while at the same time conserving working capital. Want a 5.5% rate and no full owner personal guarantee... consider the government BIL /CSBF loan... great rates, terms and structures .

Have contracts upcoming, worried about financing them. Talk to an expert on purchase order and inventory financing... despite the myth it really is available!

And finally, consider an asset based lending facility... it combines the power of receivales, inventory and equipment... with your firm borrowing against those assets on a daily basis as you need the working capital .

Is business lending dead in Canada. Is it all just voodoo? We don’t think so. You have solutions, investigate them and speak to a trusted credible and experienced Canadian business financing advisor about getting your business on track!

-

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

What Mom Didn't Tell You About Leasing Equipment For Business And Lease Finance Options

And you thought you knew it all! Did you ever think that leasing equipment for business was a straightforward process... you almost couldn’t go wrong? In reality your lease options and who you deal with in this area can make or break good or bad financing decisions.

We’re going to cover some lease basics for you, and we'll let you in on some inside secrets to the trade. We have often told our clients we're not impressed by the ways in which some industry participants create a smoke and mirrors scenario around some of your most important lease financing acquisitions.

We think they are wrong, but most of the time our clients are only focused on rate. That's not a good thing necessarily, because in reality pure math analysis will more often than not show that leasing is a bit more expensive option. The actual reasons you chose to lease probably should be more focused around the two types of leases available, and which one is right for your firm.

Alternate decisions to lease are driven by, guess what...? Credit approval (leasing approval is easier to obtain) and the managing of your payments in a predictable fashion related to your cash flow. An if you are in a technology business you're most concerned with the fact that you have 3 or 5 years to go on payments and your asset is depreciating, or become obsolescent a lot faster.

Don’t forget also that many small, what we can call ' service features ' come with the lease facility. They include the ability to include taxes on your payments, bundle in warranty and maintenance, etc.

Is it possible to figure out the exact rate you are being charged in a lease? As we said, it shouldn’t always be about rate, but the answer is ' yes’... you can figure out what the interest rate is.

How do we do that then? Relatively simple, if you have the tool. The parts of any lease calculation are term of lease, amount financed, the final obligation or future value, the interest rate, and the payment. If you know any four of those you can use a financial calculator to calculate the 'real' rate the lessor is using. For example, you are leasing 50,000$ for 3 years and you own the equipment at month 36 you are told, and the monthly payment is 1600.00$. By entering those 4 into a financial calculator (a real financial calculator) you can see that the rate is 10%.

Let's stay with our client’s fixation on rate. Is that 10% high, low, acceptable, competitive? More often than not it’s a competitive number because the entire industry has to stay competitive to be in business. A better question you never asked is what rate your lease company borrows at in order to allow leasing equipment for business such as yours. If they can borrow at 5% they are making 5% on you... if their cost to borrow is higher... and in most cases it’s higher than you think, they are making less.

Let's share another of those secret strategies not commonly known. Your firm has a lease... it’s for 50,000, for three years, and the monthly payment is 1600.00 and you. Our firm has the same lease, but our monthly payment is 1480$. How could that be, ask clients. Or they will bring us two quotes for the same asset with those same differing payments. The answer is that one lease is an operating lease, structured as a rental, and the lower payment simply means the lessor is going to get the equipment back at the end of the lease - sell it, and recover the shortfall (hopefully) on the lower payment you have been making.

So... is it all smoke and mirrors when it comes to lease finance options. It doesn’t have to be. Does your homework, compare apples to apples, and speak to a trusted, credible and experienced Canadian business financing advisor in the lease financing area.
--

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Why Finance Companies Are Your Best Bet For Leasing Equipment via a Capital Lease

Looking to improve? Aren't we all! Improving your business with respect to the acquisition of new business assets is a major decision for Canadian business. What is the current state of the leasing equipment market in Canada, and what finance companies are your best bet and why?

Even though you're taking on additional debt when you acquire a capital lease option the committing of your cash resources can still be properly managed using an equipment financing strategy. You're making the decision because you want to utilize the asset to improve productivity and profits.

We can certainly help our clients finance the asset, but it’s up to you to ensure you choose the right asset, negotiate a best sale price, and ensure the business asset meets your needs. The reality is of course that your leasing equipment decision is an important one - its an alternative to paying cash outright, or drawing down on credit lines you might have in place - and most of our clients agree that the ability to secure business credit for working capital is a large challenge these days, so using those funds outright for an equipment purchase doesn’t seem to make sense.

You have chosen a capital lease, or a lease to own option. The alternative was an operating lease, or a use and return of the asset and that hasn’t made sense this time around. Finance companies in Canada can structure payments that make sense for your firm. Typically clients have budget constraints, have some seasonality in their business... etc. This is typically when leasing makes more sense than a loan, because it’s so flexible and tailored to meet your specific financing needs.

In the current Canadian leasing equipment landscape and environment of 2010 /2011 you may well be expected to make some sort of down payment, but again, this is negotiable. Talking to your accountant might bring up further reasons why the tax advantages of lease financing might make you decision to finance an even easier one.

Finance companies recognize that you are in many cases using a leasing equipment strategy simply because you can obtain assets you might not be able to afford. These firms have only one mandate... approve and fund your leases! Consequently their credit people are experts in looking at your overall picture, which includes your firm’s financials, the value of the asset itself, which is of course the collateral, and your projected profits via use of the equipment.

Your decision to enter into a capital lease should be relatively straight forward; the challenge is often picking the right partner. The Canadian landscape is made up of hundreds of firms who have specialization, only regional representation, or in some cases your transaction will be viewed as too large, or too small. Navigating that maze is a challenge, so see the service of a trusted, credible and experienced business financing advisor who will help you get approved and negotiate the best terms possible. That added value along can improve your overall return on investment and make your decision to finance a solid one.
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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

We’re Sharing the biggest Secret in business funding today and why factoring of accounts receivables isn’t what you thought!

It's kind of not a secret if everyone knows it right? but we’re pretty sure when it comes to business funding that the factoring of accounts receivables on a confidential basis is one of the most powerful alternative Canadian business financing strategies that is a secret that only limited Canadian business owners and financial managers know about .

Let’s put this ' secret ' in the context of some real world examples that might closely resemble your firm’s situation and needs.

Working capital challenges. You have them, and they seem to pre occupy a lot, and we mean a lot of your business day. So how do those restraints on liquidity affect your firm... they manifest themselves in payroll challeges, meeting lease and loan payments, and that worst feeling of all, not being able to grow your business or take on that new customer because of cash flow challenges.

In many cases, and you are certainly not alone, you're just coming out of the recession and collections from customers is still difficult, and expense restraints seem the order of the day. If you're like many other firms there is some seasonality to your business and you occasionally have bulge needs for cash and working capital.

So... we have done a great job of giving you the problem, which you knew already! Let’s turn that around and give you the solution.

Accounts receivable financing and business funding, commonly known is factoring of accounts receivables, is the potential solution. But we can hear you already... you have heard about it and you dont like how this solution works and the perceptions some suppliers and customers might have around how you are financing your business.

Well, it gets better, because we have a solution to that problem and it’s called confidential factoring of accounts receivables. Under this type of financing you are in a position of selling your receivables as you generate them, at your option of course, and, here’s the kicker, you receive cash for those invoices the same day - while at the same time retaining the right to bill and collect your own accounts. That ability to bill and collect your accounts receivable financing process just turned you into a confidential cash flow machine, allowing you to meet day to day obligations and, as we said, grow your business.

The whole process is seamless and it takes only a week or so to set it up. This type of financing appeals to two typical small and medium sized firms (by the way, Canada's biggest corporations use it also!). It appeals to firms who don’t have access to bank credit, or more commonly, might qualify for some level of bank financing, but not enough. That is because, unlike the Canadian banks business funding in Canada via factoring focuses solely on the strength and size of your receivables. In some cases, are you ready for this..? Inventory can be combined into the same facility.

There it is then... a great secret and business financing strategy that will allow you to finance your business. Speak to a trusted, credible, and experienced business Canadian business financing advisor who can assist you in completing this finance strategy.
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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Why The Canada Film Tax Credit Program Is Critical To Your Film Financing

How could a government tax credit incentive possibly be ' critical ' to your success in film financing? The answer is very simple : The Canada film tax credit program is usually the last piece of your financing , and we see many cases where it allows the other components of your project, i.e. equity, debt and ' gap ' to come together in a final fashion .

And that of course allows you press the button on ' ready, action, camera, shoot ' which is what your project is all about. And to be clear, we're talking about the three genres of entertainment - film / movies, television, and animation. Animation credits, somewhat unheard of years ago, are quickly gaining traction in the industry as people flock to this type of entertainment. Think Shrek!

Tax incentives in Canada give film investors the ability to complete financing successfully. Pick a number, any number... we'll pick one for you - 30 - 40%! That is a typical amount you can expect to receive on a production tax credit in Canada. The actual final exact amount depends on the provincial geography you are shooting or producing in - as each province has adopted separate schedules of reimbursement .

These tax film financing incentives have once again brought producers and owners of project back to Canada. While in the past a major decision around Canadian content seemed to revolve around the lower priced Canadian dollar the Canadian ' loonie ' ( that's what we call a dollar up here!) is touching parity as we head into 2011- so the whole forex issue is no longer the driver - but Canada film tax credits are .

If you are not a major movie studio the film financing incentive provided to the industry by the production services tax credit has become one of the most important tools in your financing plan for your project .

The Canadian tax credits stimulate of course revenues that are generated from the industry as a whole.

Let's recap some basics, so you can fast track and simplify your film financing project. It all about ' qualifying ' - you either do or you don’t. And if you qualify, you get your funding via a non repayable tax credit. The power of the tax credit increases significantly when you monetize or cash flow or finance (they all mean the same thing!) your tax incentive credit. These credits can be financed when your project is completed, returning cash flow to the owners, or , as importantly , they can be used as a financing strategy to generate cash flow as you film or produce your project and funds are expended .

What qualifies in your project surprises most of our clients on the upside! Including many of the costs of a project you may be surprised on.

We love the expression that the word ' Team ' is an acronym for ' together everyone achieves more". Your team in film fax credit finance and film financing is critical, so aligning yourself with a Canadian tax credit business financing advisor, as well as a qualified entertainment accountant will only do two things - ensure you qualify, and maximize your credits.

And we humbly submit that’s what it is all about.
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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Sr ed Tax Credit Financing – Your SR&ED Loan is Approved

Is it possible to combine the benefits of sr ed grants with the benefits of sr ed tax credit financing for a sr&ed loan that makes sense? It sure is and let’s helps you understand some of those basics.

If you are either filing a sr&ed claim for the first time, or if you're a repeat "offender" - translated = you have experienced sred claim success for years... then why not combine financing power with your claim and recoup your funds faster . In today’s worlds it seems always about speed it seems, so if the Canadian government is paying you to do research , and you can recoup and deploy those funds even faster by financing your claim, well ,, why wouldn’t you .

Our focus here in our shared information is financing your claim... so we assume you are fully aware that if your firm is developing new products and services, manufacturing prototypes, improving processses, developing software, advancing mfg ... well .. We think you get the point! Which is simply your firm is a poster boy for sred financing and a sred loan and you should be filing to recover in the range of 35-40% of all your expenses.

Your credit is a non repayable credit, so your ability to monetize your claim and get that cash flow working into your firms operating cycle is key.

So how can those sred tax incentives are monetized? Simply speaking it’s the ability you have to use your sred receivable, because it is a receivable, and finance it in a manner that you would just as if it were any customer - except that in this case the customer is a pretty good paying client... ie the federal and provincial government.

Sound complicated? Nothing could be simpler. Let’s cover off the basic process and focus back in on those benefits.

To finance a claim you have to have a claim. Makes sense so far, right. Claims can be prepared by either yourself or someone that is commonly called a sred consultant. We wouldn’t be perfectly honest by telling you that claims prepared by outside respected consultants carry far more weight than claims prepared internally by yourself of your accounting firm. It’s simply a case of relying on expertise.

After your claim is filed you complete a simple financing application consisting of info about our firm, your current financial situation, as well as providing the actual technical claim and tax filing copy. SR ED tax credit financing relies on your claim being filed- in certain special situations you can actually finance the claim pre-filing - but we'll leave that one for another day.

The ability of many firms, particularly start ups, and tech firms that burn through a lot of cash , to recoup sred funds is a key driver in the whole sr ed loan process . That cash flow in many cases is seen by our clients as the life blood and in some cases the largest amount of cash they will receive in the current year.

Many business owners don’t know that you can file for two years, which of course simply means you’re doubling the amount of cash you can claim.

Many smaller filings these days for sr&Ed claims seem to be coming thru faster in the form of cash refunds... if you have a larger or first time claim it can take many months, potentially calling for a techncial review of your project.

That’s where a sr Ed loan and sr Ed tax credit financing come in, because 70% of the sr&Ed claim is generally advanced in the form of a bridge loan. You make no payments on the loan and the loan is in effect settled when your final refund comes in from Ottawa .That allows you to utilized those funds for working capital, equipment, on going sr ed work , and just any general corporate purpose .

Speak to a trusted, credible, experience Canadian business financing advisor in the sr Ed tax credit financing area. This will increase your chances of a successful and timely approval, with most financings for a sr Ed loan happening within a 30 day period. That’s a sr&Ed cash flow optimization strategy that makes sense, right?

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Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

How to Protect your franchise investment with smart financing options when you buy a franchise

It was, or will be an easy simple decision right? We're talking about the minor issue of your decision to purchase a franchise.

We're just kidding of course, because we know the franchise investment you make when you buy a franchise is one of the larger decisions you'll make in your life. And we clearly recognize the franchise cost of that investment is never a small one. So we are thinking you want to do it right?!

You can protect your franchise purchase by financing it properly. You want to be in a position to satisfy yourself, and your lender that you have the right amount of debt (I.E. loans, etc) and equity into your transaction.

It seems that it’s always about the money, and that was probably one of the concerns you had when you made the decision to purchase a business via the franchise industry. You recognized it was a potentially great way to build wealth and equity, but wondered where start up capital would come from.

The reality is that start up capital for your franchise investment comes from two sources, yourself, and one or two other lenders who specialize in franchise financing. Actually a large majority of franchises in Canada are financed under a government program that is technically called the BIL/CSBF program. Bar none it is the best financing deal in Canada for any new business, and franchisees have flocked to it for years. More about that program and how you can achieve success via it later...

We can’t over emphasize that one of the key factors for franchise approval, under our above noted program, and others is simply that you require a decent personal credit history. Without getting to technical we can simply say that means that you have historically paid your bills, not been bankrupt, and aren't over borrowing in your personal life. Enough said about that. When we meet with clients looking for franchise financing this is one of the first areas that we (delicately!) explore.

But clients want to know why this is such a key factor, and its simply because the reality is that a franchise is , no matter how you look at it, a small business start up, and lenders look at how you run your personal life as a mirror as to how you will run your business .

Planning - that’s the keys secret in financing a franchise investment you are going to make and ensuring the franchise cost of that decision is properly financed. You do this in a variety of ways, one of which is documenting your purchase and plans via a properly prepared business plan. This document should highlight yourself, your business experience, and show the financial fundamentals of your business, i.e. Cash flow, ability to repay your loans, what the opening balance sheet will look like, etc.

We clearly realize that not all our clients have the financials skills, background and ability to prepare such a document, let alone present it. That’s why it’s a good reason to consult a Canadian business financing advisor or expert who is credible, experienced and trustworthy and an expert in franchise finance in Canada.

We also remind you that step one when you buy a franchise is financing it - step 2 is making sure that you have a plan around how you will grow your business while having enough working capital to run it.

In Canada franchise cost is financed via the Government BIL program we noted - The borrowing limit is 350k, and we have found that this financing can be supplemented with equipment and lease financing for certain assets of the business . Those two strategies, coupled with your own investment of funds will get you to the goal line.

Speak to that ' in the know' advisor we talked about and you should not have any worries in your ability to finance and buy a franchise.

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Stan Prokop - founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

We Predict You’ll Love asset financing credit facilities when seeking business finance loans

Making a prediction is a sometimes risky scenario , potentially damaging to your credibility , but we're quite confident in saying that Canadian business owners will recognize non bank asset financing as credit facilities for business finance loans to be the best thing they every heard of when it comes to financing their business .

Quite frankly we don’t think we exactly going out and making a stretch comment because, hundreds if not thousands of Canadian firms are investigating and utilizing this type of financing.

As the Canadian business economy turns itself around going into 2011 most of are clients are finally focused on growth again .But how is that growth to be financing, since lending standards and criteria at institutions such as the banks don’t appear to have been liberalized at the same pace that your company hopes to grow at!

That’s where our trend prediction comes in. Asset based lending focuses on your assets and growth opportunities - it doesn’t focus on rations, tangible equity in your company, rations, covenants, cash flow coverage, etc, etc, etc!

So you are picking up on the opportunity, let’s see how things work. Asset based lenders keep it simple, they lend a very high value against your ongoing assets. What are the typical assets lent against - you can almost guess what they are. They are receivables, inventory, unencumbered equipment and real estate.

The big mystery around asset based lending in Canada, based on conversations with our clients, is that business owners don’t really know or understand who these firms are. So we'll tell you.

They are specialized firms, both Canadian and U.S. based, that focus solely on providing credit facilities and business finance loans with your assets as security. They take the same security as a Canadian chartered bank would, and you manage your facility on a day to day basis, drawing down cash as you need it. Funds are wired into your account as you need them, based on... guess what ... assets! That really is the one key difference that our clients pick up on, that the total focus of this type of assets financing is the collateral itself.

We already know your next question... because we've heard it a hundred times before. Its' how much can we get ‘... followed by what does it cost.
Speaking in general terms your receivables are financed at 90% of their value, and because of the nature and marketability of different types of inventory this type of collateral is margined anywhere from 25-75% . Recall we had noted that unencumbered equipment can be drawn against also. Typically an appraised current market or liquidation value is agreed upon with you and the asset financing provider.

Costs vary around this type of financing. On occasion it is competitive with bank financing - and giving you twice the liquidity - but more often than not it’s more expensive. You offset those costs by greater access to credit facilities that will grow your business and profits.

Speak to a trusted, credible and experienced Canadian business financing advisor who can walk you through the Canadian landscape of business finance loans in the asset based lending area. You'll quickly find, we think, that our prediction is becoming more true every day, asset based financing is hot! And here to stay.
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Stan Prokop - founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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