In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.
Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.
Wednesday, September 28, 2011
On Top Of The Latest Trends In Canadian Growth Financing ? Working Capital & Purchase Order Finance Alternatives
No Jargon Get It Done Today Finance Solutions for Businesses in Canada
Information on growth financing alternatives in Canadian business . How working capital solutions such as purchase order finance can provide alternatives to business challenges .
Staying on top of any aspect of your business is important, and that includes ensuring you understand some of your alternatives when considering growth financing and working capital solutions. We're talking about everything from standard solutions such as working capital term loans all the way out to the end of the spectrum, the new kid on the block, purchase order financing.
When the SME sector (small and medium sized businesses in Canada) can't meet the requirements of a Canadian chartered banking solution then what are some of the alternatives. The last couple of years have been somewhat brutal on manufacturing companies, balance sheets have been hit and breakeven, let alone profits have been touch to achieve for many.
A total solution for many firms is to utilize a Canadian asset based lender to address numerous challenges at the same time. Let's examine a typical situation which many clients have found themselves in over the last couple years. They might have secured debt via a bank revolver or term loan, coupled with challenges around CRA arrears and accounts payable which have ballooned due to an overall working capital shortage.
In this type of case, as profiled above the growth financing comes from an all encompassing working capital facility to replace the banking solution, This type of financing margins receivables to 90%, provides a healthy margining of inventory previously not available ( anywhere from 30-70%). In more rare cases a straight cash flow loan might be added to the facility to further enhance the working capital
The bottom line is that the asset based growth financing solution solves a number of problems around collateral, size of the facility, and general health of your firm. Most importantly it addresses your company's ability to grow again and fund that growth at the same time. In effect we've achieved a hybrid type solution that many small and medium sized firms sorely require.
And what about that purchase order financing concept. Actually it’s not a concept; it’s a viable solution that gains more traction everyday. The P O finance solutions bridges the gap between fulfilling your contract or purchase orders from the time you receive them to your ability to get final payment from your end user customer. In some cases, but not all, purchase order financing involves a foreign supplier, either in the U.S., Europe or Asian. Your P O financier makes payment to your vendors, on your behalf, taking the products, inventory and receivables from that transaction as security. It is a more expensive form of financing but provides a valuable bridge to sales growth success.
So, is staying on top worth it? We think so, therefore you will want to ensure you have thoroughly investigated all solutions available for growth financing in Canada. Speak to a trusted, credible and experienced working capital financing advisor who can assist you in identifying solutions that make sense... for you!
Stan Prokop - founder of 7 Park Avenue Financial -
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :