Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.

Wednesday, November 30, 2011

Looking To Fund Your Business ? 5 Tips On Start Up & Small Business Finance Companies And Banking In Canada

Strategies for Working Capital and Financing Success

Information on how to fund your new or established business in Canada . Advice for Working with finance companies for loans and banking success for cash flow and working capital needs .

It sometimes seems that when you're bigger things always seem a bit easier - not always but most of the time.

That’s why when you are looking to fund your business and you're a small to medium sized business owner or financial manager knowing which firms and finance companies are appropriate to deal with seems like a challenge. And business banking from a borrowing perspective seems like a huge challenge.

And another thing, if it’s not all the time, it’s sometimes, because at certain points in your company's growth and history you are looking for business funding of some sort. What are the options - who can you turn to? Never fear... real world advice is here!

Business financing to either start or grow your business is available in a variety of ways and solutions. Let's examine 5 key topic areas.

The number 1 solution, as perceived by many business people is banks and commercial credit unions. However, perception is certainly not always reality as many have discovered. However if you are in a position to demonstrate to the bank that your own pockets (i.e. your own money!) is committed to the business then they are certainly a good place to start.

Want to know who we think is the absolute best bank in town? We’re sure you do, and here’s the answer, its one that houses a banker who is committed to grow and understand your business.

One of the best programs offered by the bank is co sponsored by the government, it’s the SBL loan program, providing you with great rates, terms and structures, and even limited personal liability for the financing.

Point # 2 -There isn’t a day when we don’t get a call asking us for some assistance on government grants. There are probably hundreds , if not more , of government grant programs - our own opinion is that they are often difficult to qualify for and at the same time chances of approval on non repayable funds is , suffice to say, slim . We will add though that the SR&ED program is probably the best program in this area, although its not a grant per se. Check it out though if you feel you qualify.

Grant programs are often targeted to very specific cultural or environmental issues , and many come with strings attached, such as matching funds only, etc.

So focus on getting sources of capital to borrow, not give you!

Point # 3- Talk to a Boy Scout. That’s because that organizations motto of ' BE PREPARED ' runs very true in business. Your ability to present yourself, your background, your historical, present and future financials is critical to obtaining business financing from finance companies and banks in Canada. Many clients seem either overwhelmed with how to do this properly, or quite honestly just aren’t qualified. We are all experts inn our own area of expertise, right?

Solid professional assistance from your accountant or Canadian business financing advisor is steps away, and at a nominal cost, all things considered.

Tip # 4- We all know whats in it for us when we borrow funds in a banking or non banking facility. But whats in it for the lender? Never forget that point. Finance companies in Canada are based around risk and reward. Most business owners don’t realize that business financing in Canada is available from a rate of 3% per annum to 3% per month. All types of assets can be financed or monetized. Companies in bankruptcy proceedings can even borrow at low rates. It’s all about the assets, the rate of return, and how you put together your business funding request.

Tip # 5- Always is prepared to deliver on some level of owner equity, i.e. your own contribution into the business. That can be via a cash injection, retained earnings in the business, or assets that aren’t already collateralized.

So, Canadian business financing. It comes in many forms. Receivable financing, equipment finance, working capital cash flow loans, asset based lending, franchise financing, tax credit finance, etc. Speak to a trusted Canadian business financing advisor on how to fund your business, and which finance companies and banking partners are appropriate for you.

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


Tuesday, November 29, 2011

Lot’s To Gain & Nothing To Lose . 4 Tips On Best Leasing Companies For Asset Business Financing

Canadian Equipment Lease Financing Advice

Information on leasing equipment companies in Canada . What to thoroughly investigate prior to financing business assets .

Since when is some good information that helps you save money and get a good deal in business not a good thing? That's our feeling, so when you are looking for leasing equipment companies in Canada for the financing of business assets here's 4 tips on just that!

Many Canadian business owners and financial managers often consider equipment financing a relatively simple process. It is, if you know who to deal with, what to ask, and what some of the pitfalls might be.

That simplicity is often masked by some key tips and strategies you can employ to save you thousands of dollars, both now, and later. It's frankly all about business decisions that you need to make both now, and later at the end of your equipment lease. In general terms these considerations can be lumped into several categories - financial, risk, tax, accounting and legal.

All of a sudden that lease for the new computer system might not seem so simple, right? At the end of the day you want to ensure you have made the right decision, so as to warrant that financing your assets was better than purchasing or borrowing for them . Until you understand our 4 key tips you can’t make that decision! So let’s dig in!

First of all, exactly what are you looking for? We can see the puzzled look on our clients face already. ‘Haven’t we already told you, a lease!)? But what we mean is that there are different types of leases in Canada, in some cases you want to spend a decent bit of time investigating operating leases, which have different consequences before, during and at the end of the term of the lease. In many cases these payments will be lower, but you will be faced with 3 different options at the end of the term of the lease, for returning, purchasing, or extending the transaction.

If you want a simple finance ' lease to own' that becomes a much more straightforward transaction.

Tips # 2- Who do you actually deal with? In Canada leasing equipment companies are thriving - there is solid, healthy competition and business is quite frankly booming. Your choices on who to deal with are several - independent financial firms who are non bank in nature. Banks in Canada have again embraced leasing so you are in a position to talk to a bank leasing entity also. Their rates and terms are excellent of course, except for one caveat which we will discuss shortly. Suffice to say the ' credit approval’ bar is a bit higher in bank leasing in Canada.

You can also deal with captive or vendor finance firms, who typically are aligned with the manufacturer of the equipment. They are clearly
incented to finance you, because they also make the product!

One very solid solution is to also deal with a lease finance intermediary. Good ones (yes, there are not so good ones) can ensure you have access to great rates, terms, and structures, also saving you a lot of time. Respected intermediaries will bring a tremendous amount of value to your transaction, so check their ethics and reputation and experience. Ask for examples of transactions completed.

TIP# 3 - Lets talk about who to deal with for business financing of your lease transactions if in fact you choose the independent lease company route. Naturally you want to be aligned with firms that have a good reputation, can provide competitive rates and funding, and if they in fact have the capital to complete your transactions. (They borrow money too don’t forget!) Documentation is key in good leasing equipment companies, look for straightforward doc's.!

Tip # 4- If you do in fact choose a bank leasing firm find out how the lease transaction fits into your general borrowing agreement . By financing with a bank have you restricted your ability to borrow more in the future for operating needs?

Got a lot to worry about these days in business, and business financing. Who doesn’t?! Consider talking to a trusted, experienced and credible Canadian business financing advisor on your asset financing needs. As we said, lots to gain, nothing to lose.

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


Monday, November 28, 2011

Why Canadian A/R Finance Is Your Optimal Business To Business Lending and Cash Accounts Receivable Finance Strategy

Use A Confidential Receivable Finance Strategy to Beat The Cash Flow Problem !

Information on Canadian accounts receivable cash financing . Why this business to business lending strategy can work for your firm.

It's a simple fact, if your business is growing a business to business company such as yours needs a ' business to business ' lending solution. That’s even more of a pronounced need when your growth is outpacing your financial means. That's when Canadian business owners and financial managers look for an efficient , yet flexible means of financing their growth the solution of cash accounts receivable financing often comes up .

Let's explore why this solution might in fact be the ' optimal' one when it comes to business finance.

Of course it’s safe to say we can’t save the patient if we don’t know that the cure is. So let’s examine exactly what this solution does. In cash flow financing, aka ' factoring', aka' receivables financing' its all about generating working capital and cash flow. It’s on paper a very simple procedure... we dont make it complicated... many do! You simple agree to sell your receivables, as you generate them for an immediate cash advance.

If you utilize the U.S. method of this type of financing you also have the ability to remove all or at least a part of your bookkeeping, collection and risk from your company’s daily procedures. While that is a good thing in fact our recommended and favorite solution for this method of business financing is a confidential receivable finance facility that in fact allows you to bill and collect your own receivables without any notification to your suppliers, clients, etc. More about that later though!

We also mentioned that this business to business lending solution allows you to sell, and generate cash flow for your sales as you make them. One technical point we should clarify is simply that it’s your choice, you certainly don’t have to finance all your A/R, and you can finance it 15 or 30 days from your billing if you choose, if you need cash flow.

So, cash flow. How much exactly do you receive when you sell an invoice or your ongoing A/R in a regular manner? We can typically say that in Canada you will receive 97 -98% of your receivable. That’s based on a 30 day terms of sale. You receive approximately 90% when you make the sale, and the balance is paid to you when your client remits, lets that 2-3% discount fee which effectively becomes the finance charge.

So, why in the heck would you do this? For the following reasons: Many firms simply don’t have the balance sheet or personal resources to finance growth. When you grow so does your inventory and receivables. They become an investment, and cash accounts receivable financing turns that investment into cash flow on your balance sheet. M\

Additionally many firms in Canada use ' trade credit’ as offered to their customers to maintain strategic relationships, i.e. keep their clients. You are now in a position to offer, should you choose, extended terms to your client - because, as we said, you get paid as soon as you generate sales under our business to business lending solution.

In many cases we talk to clients that have one of large opportunities. It could be a large contract, new major sale to a new client, etc. This solution gets you to the goal line.

So, the bottom line? It's simply that a true business to business lending solution such as receivable finance gives you very predictable working capital - bottom line your company is now liquid, and that’s a good thing.

Speak to a trusted, credible and experienced Canadian business financing advisor as to how you can implement a confidential cash A/R financing solution that makes sense, and works!

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 :


Sunday, November 27, 2011

4 Tips For Best Lease Of Equipment And Commercial Leasing Rates For Canadian businesses

Canadian Equipment Lease Financing

Information on how Canadian companies can get the best commercial leasing rates and terms . What you need to know about lease of equipment strategies when using winning lease finance strategies.

Let's discuss some ' inside edge' tips, secrets and strategies on how Canadian business owners and financial managers can get solid commercial leasing rates when they consider lease of equipment and asset financing in Canada .

We'll focus on 4 specific areas, but at the same time we'll delve into other aspects with one main focus - saving you money.

So, first of all, what are 4 critical areas for you to assess when financing an asset. For a starter be familiar with the type of firm you are dealing with. It's not necessarily about their reputation of stability, (although that’s a good thing!)... It’s as much about the type of firm relative to the asset you are financing. Ensure you are working with a firm that has an appetite for your asset type and dollar size... and credit quality. Your firms overall credit quality drives commercial leasing rates on equipment to a great degree. Many players in the industry can actually approve your firm for asset finance without a tremendous amount of financial disclosure - typically that means financial statements.

On the other hand, you can often attain better pricing if you provide a solid financial package that includes historical financials, year to date interims, or even forecast of sales, profits, cash flow, etc.

In Canada there are hundreds of financing entities that consider lease equipment as a service they provide. Knowing who they are, what they do, and how they approve transactions is valuable information that will ultimately affect your pricing.

Tip # 2 today... it’s all about ' end of term'. Do not, we repeat do not consider the lease of equipment without understanding your end of term options. For many lease companies the entire strategy around their pricing is not reliant on the ‘ interest rate ' on your transaction, instead its all about what happens 36, 48, or 60 months out when your lease is up .

There are numerous ways that lease finance companies in Canada maximize lease profits ( from you !) by structuring end of term purchase options, renewals and notifications around those renewals, as well as the most basic, disposing of the asset at an additional profit . Bottom line, understand end of term!

Tip # 3- Fees. They are all over the place these days. Many are reasonable and warranted, such as commitment fees if appropriate (sometimes they are not!), registrations fees, appraisal fees, pre auth banking admin fees, etc. As we said, many are reasonable, some are not, but all are negotiable to a certain extent. Understand the total cost of your financing is the bottom line.

Tip # 4- the down stroke. Down stroke? That’s the industry terminology for down payment or security deposit. Ensure you have the financial effects of this type of payment factored into your overall lease pricing. If a down payment is require prior to final approval ensure your firm understands what will happen if the transaction is not approved.

Canadian equipment lease financing is one of the most powerful strategies used by 80% of all businesses in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor on how you can maximize the benefits while getting the best commercial leasing rates of equipment lease finance in Canada.

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


Friday, November 25, 2011

How To Increase Chance Of Loan Approval For Canadian Government Business Loans – SBL Loan Advice

Something Worth Considering ! Government Business Loans

Information on Canadian government business loans . How entrepreneurs, business owners and financial managers can increase chances of loan approval for the Small Business SBL Loan .

Odds. We can't speak for you but we like them when they are stacked in our favor! So is there a way to increase your chances of loan approval for the SBL Loan... Canadian government business loans? We know there is! and we’re going to show you how.

Some folks might consider us biased, but we think it's very obvious that the Canadian BIL/CSBF program is, bar none, one of the best programs in Canada for small business, and that’s including start ups by the way. First of all, its about those great rates, terms and structures, as well as limited personal liability, but primarily because with a basic understanding of key program requirements you can find yourself ' APPROVED ‘ ( that’s one of our favorite words by the way) in a matter of days .

So what’s all this about stacking the odds in your favor? Most Canadian business owners and financial managers we meet, including those entrepreneurs starting a business have in some cases not heard of the program. However, more importantly those that have view the words such as ' government' ' bank’ with a bit of trepidation, sometimes based on real world experience.

The reality is that if you understand the key requirements of the program you are in a position to better address those issues, in effect ' finesse' them and tilt the odds of approval in your favor. Doesnt it make sense that if you understand the requirements, and present them in a professional manner you would be in a position to garner a full approval for your financing?

We feel sorry for the business owners and entrepreneur, including franchisees that show up at our door with tales of being declined or having spent too much time facilitating their SBL Loan financing. And suffice to say we even know their story before they tell it to us... simply that they failed to provide the right documentation in a coherenet understandable manner.It's a simple case of positoning yourself, your business, and your business financial future . That is often done by a strong business plan or executive summary.

Having to continually go back and address the providers of government business loans with additional information can of course create a negative spin on your financing request. That's not good.

In Canada the SBL Loan program is run by INDUSTRY CANADA. That’s the federal government by the way! We are sure they are nice people, but guess what? The bottom line is that you will never meet them as the Canadian government business loans are administered by your local bank.

The odds of increasing your chances of loan approval for an SBL loan improve directly in relation to the knowledge and quality of your banker. We're sorry to say that many bankers often exhibit signs of not being knowledgeable about the program or even supportive of the general spirit of the program. And by the way, that spirit is just one thing - providing your new or existing business with up to 350k in financing for equipment, leaseholds, software, real estate, etc on terms you would never normally achieve under normal business financing. Enough said.

If you want the complete attention of your banker have a solid package. There are only 4 or 5 things required in that package, so it’s hardly rocket science.

Want even better odds? Speak to a trusted, credible an experienced Canadian busines financing advisor who can fast track you to SBL loan success.




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


Thursday, November 24, 2011

What’s The Cost And Return on Franchise Financing In Canada.? Franchising Loans & ROI Explained

What’s The Cost And Return on Franchise Financing In Canada.? Franchising Loans & ROI Explained

Information on franchise financing in Canada. How to factor the cost and return on investment of franchising finance loans into your business acquisition .

When we talk to clients about their concerns of getting franchise financing in Canada they also want to focus on whether the cost to finance that franchise is in effect a good ' return on investment ', in relation to both their own personal investment in the business as well as ongoing returns on that equity based on the ongoing profits of the business and the risk involved in this type of business, i.e. franchising!

The amount of capital you need to raise relative to your franchise loan varies in Canada. Factors that are critical here are the amount of capital that in some cases your franchisor might insist you put into the business. Another key factor is of course the amount of funding you are able to raise based upon your own personal financial situation, one factor of which is your personal credit rating. Clearly the majority of franchises in Canada are regarded as ' small business' so it makes sense that the banks and other firms that participate in franchise financing are focusing on you personally as well as your overall business prospects.

Canadian chartered banks, contrary to popular opinion, do participate in franchise financing in Canada. In fact in our opinion you could call them the major lender to the industry. But what many clients don’t understand when looking for franchise financing in Canada is that the bank lending in the franchising industry is done under the auspices of the Government Small Busines Loan, which is perfect suited to the type of financing you probably need.

So how much do franchises cost. We can safely say that they range in price for very nominal amounts such as 10k or so for a small service based franchise to millions of dollars for such large brand names... think ' golden arches' as an example .

Cost factors of your franchise vary with respect to how well your franchisor is doing in Canada, or perhaps it’s often the case of a franchisor in the U.S. who wishes to expand or introduce their presence in Canada.

We mentioned the government small business loan as a prime source of financing for the cost of your franchising proposal. This loan actually maxis out at $ 350,000.00 but in our experience that amount finances a huge amount of the franchise opportunities in Canada. They are great loans because they offer sensible maturities of 5-7 years, solid interest rates and nominal fees attached to the overall financing. The initial franchise fee itself is not financeable under the program, so typically our clients fund that portion themselves, which of course counts as their overall equity,

It's important to start sourcing your financing for your new franchise early on in the process. The bottom line, it’s never too late to start looking at your financing options available, including our aforementioned SBL loan.

So where does the capital come from relative to your own investment in the business.

Typically we see these funds coming from a clients own personal savings. That might also come from a severance situation based on the clients exit from ' corporate life ‘. In some cases you may choose to collapse savings, registered, or otherwise.

We encourage customers to understand the concept of financial leverage when it comes to R O I, or return on investment. Measure risk against reward; ensure you can withdraw a reasonable amount as a salary from the business, based on your financial projections.

And that ROI! Compute and analyze it just as you would any investment, such as a stock. Let’s say something costs 100% and you earn a 6% dividend. That’s generally a reasonable amount. So if you sell that investment 12 months latter your ROI is 6%. Think of that stock as being your business and the dividend being your business profits. Measure risk and reward and factor in the time and commitment you need to make into the business.

Franchising financing in Canada can be as difficult or easy as you make it. Speak to a trusted, credible and experienced Canadian business financing advisor who is expert in financing the cost of your franchising. And here's to your great, hopefully, Return on Investment!





Tuesday, November 22, 2011

Put An End To Canadian Asset Finance Problems! Use Smart Lease Financing & Capital Leasing Strategies

Bank Finance Challenges For New Assets ? – Here’s A Solution

Information on lease financing in Canada. Use smart asset finance strategies and these tips to win with capital leasing solutions that make your firm a winner in asset financing .

Safe to say that Canadian business owners and financial managers have enough to worry about these days, so asset finance via lease financing for capital acquisition of equipment, hardware, software, etc shouldn’t be one of them!

The benefits of lease finance have been pretty clear to Canadian businesses for many years. And when we say ' Canadian business' that means in the case of capital leasing strategies every size of business in Canada, from start up to major corporation.

The industry in Canada has tended to segment itself into 3 size categories, simply speaking small, medium and large ticket transactions. In Canada billions of dollars of capital has been invested into the industry and those funds are used to finance your equipment needs- everything from hard assets and the soft costs that are associated with them, up to and including software, cloud computing, well, you name it!

There is always an ongoing debate as to the cost of lease financing versus buying an asset outright with your own funds, versus leasing it. It's the proverbial ' lease vs. buy' that many of us are faced with even in our personal finances when we decide to buy a new car, etc. Depending on the variables in the lease vs. buy template we suppose that in certain occasions leasing might be more expensive. But whets the alternative when you think about it, because that involves using a large amount of your business cash or operating line of credit, or applying at the bank for a term loan and not getting approved.

When we speak to clients about capital leasing its loud and clear that they utilize this time worn asset finance strategy simply because it’s easily obtained. It’s as simple as that. In reality a large part of the industry, certainly in the small ticket area - i.e. 1-50k operates only on an application only basis, no financial stats required. Naturally in larger transactions you do need a solid application that includes historical and interim financials, info on the owners, etc.

When you are looking to achieve a solid rate, term and structure around your asset finance transaction it’s important to receive a quote that is clear. We are not impressed by some in the industry that tend to use a smoke and mirrors strategy around getting your business, as the industry in Canada is quite ' hot' and ultra competitive these days. In reality there’s only 5 key elements to your transaction - term of the lease, rate, payment, end of lease obligation and value of your transaction. So understand them and make sure it’s an ‘apples to apples ' comparison. Utilizing the services of an experienced lease financier in Canada can often save you thousands of dollars and speed approval.

So if for any reason bank financing is ' elusive’, and you wish to preserve valuable cash flow speak to a trusted and credible and experienced Canadian business financing advisor who can assist you in maximizing asset acquisition needs in Canada. 80% of all businesses lease finance, so welcome aboard!




'We Finance The Little Guy'

P.S. We finance the big guys also@


Monday, November 21, 2011

How To Manage Costs Of Sales Of Receivables Via Factoring – Business Cash Flow Financing Explained!

A Better Alternative – Understanding A/R Financing Costs

Information on how to understand and manage the costs of sales of receivables when utilizing the business cash flow strategy known by most business owners as factoring or invoice financing

When Canadian business owners and financial managers contemplate sales of receivables as a business cash flow strategy often the cost, and understanding the dynamics of that cost is top of mind. In general A/R financing, aka ' factoring' is somewhat understood in the Canadian business financing marketplace. And if it isn’t understood, it certainly is not as well known as to its mechanics, benefits, and how to do it the proper way.

We have often thought that it's simply that when firms are usually entertaining a new cash flow or working capital strategy it's because ' dire straits' have set in, and the company finds itself short of cash or generally unable to meet obligations on both operating expenses and other debt such as equipment leases, etc.

We have often preached that some of those basic problems can be fixed without external financing, i.e. a stricter credit granting policy, better matching payables outflows to A/R inflows.

However, when it’s absolutely certain that a new business financing strategy is required A/R financing is certainly one that thousands of firms are considering everyday. Why? Simply because it brings fast efficient cash flow to your firm through the sales of receivables. The way that A/R finance works couldn’t be more simple- that why we're often dismayed when we learn clients have been misinformed or led astray on pricing and factoring mechanics on day to day operations... simply speaking... how it works!!

If we had to simply one key benefit of factoring pricing it’s simply that you are only paying for the financing you are using. Using a simple (that’s our style by the way!) example of a 100.00 invoice it works as follows. As soon as you generate the invoice and can validate internally that you have shipped or earned the revenue for your product or service you receive a large amount, typically 90%, as an immediate payment for the sale of that invoice.

We can hear you already. ‘What about that other 10%"? The industry terms that the holdback and you get that back, less the financing cost, as soon as your customer pays. And by the way, if you have a number of accounts, and are utilizing an a/r finance strategy doesnt it make common sense to sell, or ' factor' your better paying customers. That’s because, as we have said, you only pay for what you use and your financing costs are decreased with those better paying customers.

Many of the benefits of factoring are overlooked because of the cost factor. We won’t even mention that your company now has the ability to simply survive sometimes, but more importantly, think Sales! Revenue! It's these lost opportunities that no longer are ' lost' since you are now immediately cash flow positive - what an exhilarating feeling that must be. Instead of uncollected A/R the left hand side of your balance sheet now shows ' Cash on hand’!

In Canada the ' fee' to sell a receivable is in the 2-3% range on a monthly basis. The danger is when clients compare this directly to commercial bank interest, which in many ways is the wrong analogy. And remember, there is not debt here, you're monetizing or cash flowing assets on your balance sheet. In many cases we see you now have the ability to double your revenue without taking on additional debt, if in fact that debt was available to you.

Looking for the inside scoop? Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in ensuring that sales of receivables as a business cash flow strategy , if done properly, with the right partner, is a solid path to growth and success.





Sunday, November 20, 2011

It’s 11 O’clock – Do You Know Where Your Canadian Financing & Funding For Production Tax Credits Is? Finance Your Film Tax Incentive Now

Let Film Tax Credit Financing In Canada Get Your Project To The Top Of The Mountain

Information on financing and film funding via monetization of your production tax credit . Finance your film and digital media tax incentive for project cash flow and working capital .

When we speak to producers/owners of film, TV and digital animation projects it always seems to be late. Late in respect to getting the financing they need for their projects. That's why it's never been as important a time as now to consider film funding and financing for TV and digital animation projects via the production tax incentive offered by Canadian provincial and federal governments.

The reality is that the Canadian tax credits available to you are currently some of the best administered and most generous in the world.

Using these credits is of course a solid way to help ' cash flow' your film. And with the right assistance, team and advisors you can creatively even pre-fund the tax incentive prior to final filing; of course eliminating then waiting for your cheque from the government.

And by they way, it’s certainly not a complicated process. We liken it with clients to a simply business financing application, one of course that is supplemented with key info on your production such as a budget that clearly that will be the essence of the tax credit application.

Naturally we spoke of a key advantage of the tax credit which was the ever elusive cash flow required to complete your project. But don’t forget also that its a well worn and proven saying in any business financing that ' debt is cheaper than equity ' so we can safely say that by maximizing your tax credit component you naturally enhance and retain equity , i.e. the ownership in your project . Bottom line, why give up equity when you don’t have to with a solid alternative such as tax credit film funding. And don’t forget that applies to TV and the growing digital media projects also.

Canada seems to continue to view in a very positive manner the impact the genres of film, TV and digital media have on the overall Canadian economy. Issues such as employment and future tax revenues seem to drive the overall thinking.

Canadian tax credit financing is not that fragmented as in the U.S. and other parts of the world. Each of the provinces work closely with the federal government which promotes a solid co operative effort.

Many U.S. and other producers in both digital media and other genres are opening Canadian offices. Gaming and video has become the fastest growing segment of the industry. It used to be mainly because of the Canadian $ exchange rate, that clearly is not longer the reason. Canada, aka ' Hollywood North' has clearly evolved into a major center for film, special effects, and gaming. One studio estimated that it costs 1/5 of the expense to create a VFX Green Room in Vancouver as opposed to L.A...

And don’t forget our subject matter today, which is thanks to a guy named DAVE. Dave is the acronym for the Digital Animation Visual Effects tax credit which provides, as an example a 50% tax incentive credit on labor

Because major Canadian centers such as Toronto, Vancouver and Montreal have great talent pools for the industry that allows the labor portion of the tax credit to be maximized - and that’s a good thing, translating into extra cash and working capital for your projects.

In Ontario for example tax credits are actually an ' online ' process for application, with major effort having gone into streamlining the process and approval times.

To finalize and finance your tax credit you need two critical team members, a tax credit expert who can maximize your claim, as well as an experienced Canadian business financing advisor who can cash flow and finance your tax credit for the obvious benefits we have mentioned.

So, it’s getting late. Do you know where your tax credit and financing is? Speak to a Canadian Expert for film and digital animation financing of your next production.





Saturday, November 19, 2011

Not All Canadian Small Business Financing Is Difficult - Check out the SBL Canada Government Loan Program For Financing Needs

The SBL Loan - A Low Risk/ High Reward Approach To Canadian Business Financing

Information on the Canada government SBL loan . Small Business financing for Canadian firms from start up to established companies with revenues less than 5 Million dollars.

For start up and small business in Canada (In our case today we mean sales under 5 Million dollars) there is one very obvious option to some of the most basic financing challenges, and its the Small Business ' SBL’ Canada government loan .

So what are some of those financing needs we referred to? Clients look to the program for purchasing a business, including franchises by the way, or simply the basic equipment and leasehold needs when they are constructing a building of office. We point out that almost all other types of financing in Canada often, if not always, discourage the financing of leaseholds so the ' SBL ' covers that problem off quite nicely.

A lot of business wants to stay on top (and boy is it hard) of technology, so the Canada Small Business Loan is a perfect way to acquire and finance both technology hardware and software.

And may we again note that it is often a challenge for firms to finance software, which is an intangible, so, you guessed it, the Canada government small business loan again steps up to the plate to take care of that challenge. The software that is financed under the program must be ' application' software. Firms that develop their software and who are looking for financing assistance should consider filing a SR&ED claim to recoup a lot of those funds spent in this area. (By the way, the SRED claim is a non repayable grant, so other then the taxation aspect it’s the closest to free money we can think of!)

But we digress! so lets get back to how some of this financing is done. While clients are often aware that there are thousands of firms who receive Billions of dollars under the program what they are more concerned about are how this financing work does and what timeline is involved.

Let’s examine a couple key aspects of some of those basic financing needs. We'll cover off some info about assets first. In the case of either purchasing an existing business or buying a used piece of equipment the SBL Canada government Small Business Loan requires a proper value of the asset. That is very easily covered off by obtaining an appraisal which comes at a relatively low cost. That appraisal becomes the financing value under the SBL small business loan. Mission accomplished!

By the way, when it comes down to actual numbers the Canada government loan program finances 90% of all eligible assets and leaseholds. The additional ten per cent is in effect your down payment or owner equity into the transaction.

Clients often are under the misapprehension that the program is difficult from a paperwork and timeline point of view. We take exception strongly to that because either on your own or with an SBL expert you can easily put together a basic documentation and business plan that meets all the criteria of the program. The reality is that this can all be done and submitted for approval in a manner of days. This is where working with an expert pays off because they are familiar with the small handful of technical aspects of making the application look good - which include a business plan and cash flow and ensuring certain cash flow and liquidity ratios work. It's not as hard as you think.

So, is the SBL loan program difficult? It certainly is if you have no idea what you are doing and don't know what can be financed or how to prepare a basic proposal. Consider perhaps utilizing the services of a trusted, credible and experienced Canadian business financing advisor who can assist you to take the word ' difficult' out of the equation, and replace it with that other word... Easy!





Friday, November 18, 2011

Need Some Help ? How to Buy And Finance A Franchise - Canadian Franchising Funding & Lending For The Loan You Need

Here’s A Solid Foundation For Financing Your Franchising Dream In Canada

Information on how to buy and finance a franchise in Canada . What type of franchising loan is available for entrepreneurs and how does this lending and funding work ?

It's not an uncommon question from clients: ' Where Can I get help on how to buy a franchise ‘... and equally as important what type of financing lending and funding is available under a franchise loan scenario.

By that time the entrepreneur has already gone through those pros and cons of buying a business under the franchise model. The benefits can be significant, and of course no business model is risk free so there are cons and consequences do making the wrong decisions.

In general it’s safe to say you need less capital when you ' buy ' a franchise. Other businesses not under the franchise model might come with significantly higher costs, especially if they are established, profitable, and have assets and cash flow. These businesses are often sold on what the finance folks call ' multiples ‘. Those are basically increased weighting applies to things like cash flow and profit or goodwill.

As a quick example if a business is earning for example 100k per year and the owner is selling it a typical valuation for that industry might be a 5x multiple of income . So your purchase price now becomes a half million dollars. That’s ashen a franchise purchase and the ability to get funding for it becomes a lot more attractive.

Naturally if your franchisor is doing well you're looking at buying, hopefully at a reasonable price, a proven business model, and a well known brand that is growing in popularity.

Ironically, and we certainly don’t think it has to be the case, but financing and funding for a franchise loan often becomes a huge challenge for clients we talk to . Why? For some simple reasons, a lot of them simply human nature. Buyers of a franchise don’t understand the qualifications, and they come with pre conceived notions that the banks and other commercial finance companies wont want to and don’t finance this type of business.

The reality is that franchise lending is in fact alive and well in Canada, with most lenders recognizing the huge part that franchising plays in the Canadian economy.

So how do you identify a ' favorable' financial lending solution for financing your new business? Certainly we tell clients that they shouldn’t expect a lot of help from their franchisor, whose job it is to sell franchises, not finance them with their own capital.

The majority of franchises under 350K in Canada are financed by the BIL/CSBF program, which is a government loan that is guaranteed in large part to the lenders who participate; in most cases this is Canadian chartered banks . The terms are very favorable - we repeat very favorable. They include long amortizations, great rates (we think) and minimal personal guarantees.

The challenge for the prospective franchisee is simple locating a bank or franchise financing expert who has the knowledge to package a transaction that meets the criteria of the program. Many clients tell us they were declined initially simply because their package was poorly or incorrectly prepared, and we can assure you, it not rocket science.

Not all banks and BIL/CSBF lenders are the same. So seek and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with how to buy a franchise, and finance it with a loan that makes perfect funding sense.





Thursday, November 17, 2011

Discuss Among Yourselves - Financing SR ED ( SR&ED) Tax Credits Turns Your Claim Into Business Cash Flow Loan - SRED Claims Finance

Financing Your SR&ED Claim Is Still A Great Cash Strategy

Information on SRED ( SR&ED ) tax credit financing in Canada . A SR ED loan or the financing/discounting of your SRED Credits and claims monetizes your claim into valuable working capital .

So, the excitement continues to build, SR ED tax credits are a large part of the focus on what the government of Canada should be doing to help Canadian firms with their research and development. SR&ED claims total in the billions of dollars and have come to the attention of a lot of players in the private and government sectors. It's a pretty basic discussion, revolving around the question ' Is the SRED tax credit still working for government and business.

Let's highlight some of those issues, and key info on the program, but, most importantly, lets re enforce one key point - if you have a SR&ED claim you can still finance it , all the turmoil around the program notwithstanding ! And we'll show you how.

We hate weighing in on all those debates on the program, quite simply ours is to finance! But we guess it’s important that some of the key issues should be highlighted, and of course any major changes to the program will in fact probably affect how claims are financed.

So what the problem? Simply speaking it's that prudent people want to ensure that the tax system and the innovation around things such as tax credits work.

A lot of the discussion seems to revolve around what happens after Canadian business owners file their SRED claim. Simply speaking, the discussion is all about ' commercialization ' of the work and funds that go into those SR&ED credit claims. Currently the actual credits are primarily only available to private companies and there seems to be some discussion about moving the program into the public company sector. That seems to make sense because it would seem some early stage companies actually don’t go public via an IPO or RTO simply because of the fact they would lose their valuable SR ED claim status, and the non repayable cash flow that come from that program.

A number of current factors make the up calculation of the total combined provincial and federal tax credit SRED claim. Under the current guidelines companies can receive up to 1/2 to 3/4 of all they spend on key documentable Sred.

So it’s an interesting time for the SR ED tax credit. To the many hundreds of sred consultants out there who prepare claims we can only imagine where their heads are at these days.

But as we said, the one constant of SR&ED is that you can still continue to cash flow and monetize your claim via a SRED Loan. In fact the industry has gotten more creative and many financings are now done prior to the actual filing of the claim. This concept is called accrual financing and it simply means you recoup your expenses as you spend. Now that’s a true financing benefit for firm who can use the SR ED claim cash flow to survive and grow. (And we guess hopefully commercialize their products also!)

The financing couldn’t be simpler. be prepared to document your SR&ED work through your consultant or internal team. Claims are typically financed at 70% of total value, and no payments are made during the loan outstanding period.

Consider talking to a trusted, credible and experienced Canadian business financing advisor on monetizing your tax credit for critical cash flow.





Tuesday, November 15, 2011

Want To Offer Customer Financing Programs? 3 Things You Need To Consider A Vendor Equipment Program

Use This Powerful Sales and Marketing Finance Tool !

Information on why Canadian firms should consider and offer customer financing programs via a vendor leasing initiative . Increase sales, cash flow and reduce your sales cycle with a customer finance offering.

We're all for an ' edge ' in Canadian business, that’s why we're quite sure that clients that offer customer financing programs via vendor leasing to their customers are probably doing better .. than you! Let's examine why, and how you too can get the sales edge via a vendor finance program. Oh and by the way, total cost = zero! That’s our kind of pricing!

If you speak to sales people they are the first ones to tell you that the sales cycle on many products can be a long one. But what if your firm could offer a tool that allows your potential customers to acquire your products and services in a way that removes a very large obstacle: you’re pricing! And doesn’t it go without saying that if you could in fact shorten that lead time in the sales cycle you would be closing in on the competition a lot more? We thing so, and lets examine 3 basic areas that you need to consider to set up a customer financing program.

So, consideration # 1. Have you got what it takes? If you firm are medium size to larger then you actually might want to give consideration to setting up an internal vendor finance division. Naturally that takes management expertise, as well an implied investment in operations and infrastructure. Have we forgotten anything? Oh yes, capital! As we said you can set up and offer a customer financing program for a lot of cost, or no cost. The reality is that this type of offering needs to be thought out in terms of what your customers are looking for. Things like the overall credit quality of your customer base are important.

Consideration # 2- If you choose not to develop of invest in a major program such as this what in fact are your options. I guess if we had to be totally honest (that’s our preference by the way) we can safely say that you retain most control if you set up and fund your own program. However, that just isn’t possible for thousands of firms who want to offer vendor leasing and finance, but don’t have the resources. By working with a select partner or Canadian business finance and lease advisor you can very easily ' outsource ' the program, all the while developing it for your own needs. You benefit from professional input, marketing assistance, and, oh yes, all the capital you need without any cost to your firm.

Consideration # 3 - You need to determine at the outset what you want to achieve from the program. Some key points to consider are simply how you will achieve the maximum benefits of the program from a short sales cycle, customer satisfaction, and positive cash flow. That positive cash flow is of course your benefit, as in all vendor financing your firm is paid 100% up front as soon as the customer signs off on your product as received, installed, accepted, etc.

So whats our bottom line. It’s pretty simple today, yet quite powerful. If you choose to offer customer financing there are significant benefits to be achieved. Examine the reasons you want to offer vendor leasing and finance, and then speak to a trusted, credible and experienced Canadian business financing advisor on how you can achieve these benefits to enhance your sales and cash flow. It’s as simple as a phone call away.

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 :


Monday, November 14, 2011

Balancing the Cost of Canadian Receivable Financing With The Benefits . Making Sense Of Factor Rates And The Cost Of Factoring

Make the Cost Of A/R Financing in Canada Work For You – Not Against You !

Information on receivable financing and the cost of factoring cost associated with this method of financing . How do business owners in Canada measure factor rates with the benefits of this type of cash flow and working capital financing .

It's not that hard of a business question... ‘Would you pay more for something if you thought the benefits far exceeded the cost?’ That's the ' balancing act' we refer to when we talk to clients about receivable financing, and the factor rates that are associated with that type of financing.

Most business owners today have either heard about or perhaps even looked into factoring cost when they have investigated Canada's newest form of working capital and cash flow financing.

So they already understand the basics, simply that it’s a financing mechanism that allows you to efficiently sell your receivables, aka ' your sales' as you generate that revenue. You sell them at a discount (the ' discount ‘is what we are talking about today ) to obtain operating cash flow.

So it's clear that the actual amount and size of your receivables is key to the transaction, not necessarily your overall financial health. And again, as we explain to clients, this financing is not a loan; it’s a simple monetization of your current asset, the receivable.

Typically you can reduce and stay on top of financing cost when you are able to prepare regular monthly financials, understand your cash flow ins and outs, and have a sense of what financial projections are relative to cash flow planning.

So, let’s get into the essence of our subject, factoring cost. We'll start by simply outlining the basics, which is knowing what your total A/R is, how much you wish to finance, and how this financing cost is tabulated.

The receivable financing industry in Canada calls the cost of this business a ' discount fee'. Customers tend to think of this as ' the rate '.

So how does this ' cost ' or ' rate' if you will, work? You are advanced a certain percentage of your invoices as you generate them. Typically in Canada this amount is 90%. Any invoices under 90 days old can be financed, and you should know that you can finance them whenever you want.

In Canada the rates for this type of financing run between 2-3%. A more typical rate for any deal in the 250k /mo area is 2%. Remember, that’s a discount that you sell your A/R under. In the simplest of terms you get cash today for 98% of your sale. Business owners can see that it sure is better to have a decent gross margin if you are going to give up that 2% in profits to generate cash flow.

Factors that affect your actual pricing are typically the ones that confuse clients the most. They include the ' holdback' rate we spoke of, i.e. the 10% that is held back on each invoice and remitted back to you when your client pays.

The largest factor in receivable financing factoring cost is the time it takes your customer to pay. Ensure that you fully understand the ' per diem' or daily cost of every day your client doesn’t pay. A great strategy is to finance your quicker paying customers if you can.

Miscellaneous fees are levied by many of the factoring firms in Canada. This has been a real ' bugaboo ' with us, as these fees can add up and increase you’re financing cost. Make sure you know what they are, and try and negotiate them down or out of your agreement.

Our recommended facility is the confidential invoice financing working capital facility. It allows you to bill and collect your own receivables without any notice to clients, suppliers, etc. And the cost of that? It should be the same if you are dealing with the right firm and advisor.

Daily mechanics, who you are dealing with, and reading the fine print tend to be a challenge for the business owner or financial manager that simply wants to run their business. Speak to a trusted, credible and experienced Canadian business financing advisor for assistance in understanding receivable finance costs.

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 :


Sunday, November 13, 2011

Expert Cloud Financing Via Technology Leasing - Canadian IT Computing Fresh Perspectives

New Insights Into Technology Finance For Canadian Firms

Information on technology leasing benefits for Canadian firms considering cloud financing and IT computing strategies for growth and financial benefits.

Wow. Cloud financing and IT Computing. Seems a little bit difficult to understand sometimes, right? However, the more we thought about it the more it made sense; and we think we actually were talking about these stuff years before others. That’s because one of the best analogies we've used for over 15 years perhaps revolves around the light bulb.

Let’s explain. When you're looking to purchase electricity is your main concern owning the light bulb? We don’t think so, and talk about a depreciating asset!

So that's cloud computing in a layman’s nutshell, the ability to access it computing resources as a service.

And it always comes back to time and money right? Canadian business owners and financial mangers get the fact that saving thousands of dollars via technology leasing makes sense - and don’t forget about your ability to divert time and resources into that one miscellaneous issue, running your business!

So that’s cloud financing... using the power of the internet to use software and hardware... that you need... when you need it.

Technology leasing has always made sense, because computing assets are costly, and, oh yes, they seem to change once a week or so!

So let’s examine some of those significant aspects to cloud financing via tech lease strategies.

More often than not its always about the money, and the fact that you can leverage a large amount of hardware and software resources on a much more modest investment than outright purchase is a great reason to take advantage of ' the cloud'

Financial benefits of a tech finance solution to the cloud are pretty fundamental, less power and space requirements and the fact that your IT budgets won’t be continually faced with hardware and software upgrade cost requirements.

Canadian business owners, financial manager and IT mangers would prefer to pay for what they use, and not what they are told they might need. So lower monthly payments via a tech finance lease make total sense.

It's of course not always possible to determine what those future tech finance requirements might be, so Thats where scalability comes in, your ability to add computing power, additional software licenses for your users, etc.

We don’t even want to think of the time, planning, and budget approvals involved in a lot of aspects of IT computing and technology leasing strategies. Safe to say that the deployment of these decisions happens much faster in a cloud environment. And staff can of course access these offerings anywhere because... well, it’s the internet!

The bottom line is that cloud financing has great attractiveness to Canadian firms. Less up front investment, the ability to expense the transaction in the manner of an operating lease expense and the classic upgrade abilities of technology leasing make cloud financing a ' must check into ' for almost all Canadian firms we think.

Speak to an experienced, trusted, and credible technology financing Canadian business financing advisor who can structure a tech lease offering that makes sense for your firm.

Stan Prokop - founder of 7 Park Avenue Financial -


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 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 :


Saturday, November 12, 2011

The Canada Government Business Loan – Easier Than You Think ! SBL Loans Explained

Canada Small Business Loans – Don’t Overlook How They Can Help Your Firm Information on the Canada government business loan .

Benefits Of SBL loans for Canadian businesses seeking loan financing up to $ 350,000.00

The Canada government business loan. Does it seem unattainable to you or your business? It shouldn’t be, and part of the process of getting approved for SBL loans is simply the fact that Canadian business owners need to understand how the basic process of business lending translates into Canada’s popular federal financing program.

So how popular? Well using 2010 as an example over 7000 businesses took advantage of the program, which begs the question - ' why hasn’t my firm looked into the program!’

The reality that we share with clients is that the process of obtaining an SBL loan is actually as important as being qualified and approved for the program. Let's take a look at how the government, and the bank (banks administer this program) evaluate the SBL loan financing and what you need to expect. The bottom line, we're going to show you how to avoid surprises.

Rightfully or wrongfully so we consider ourselves somewhat the champions of small and medium business in Canada. That’s why we commiserate with clients who tell us of the deep frustrations they have in getting an SBL loan approved. And talk about time. We maintain a proper SBL loan proposal can be approved in days - so why do clients tell us they have spent weeks and months stumbling thru the process.

It all starts with interest. And we are not talking about interest rate; we're talking about disinterest from your banker or advisor. (By the way, the SBL Canada government business loan has some of the best rates in town!) The two most important things to recognize at the start of your SBL process is simply that you need to have a banker onside that both understands and supports the program. Ditto with an experienced advisor if you want a proper proposal in place that meets all the criteria of the program. And there arent a lot of criteria by the way.

Clients think that the bank and the federal government (the underwriter of the program) might view their application in a very conservative manner. The reality is that a huge majority of SBL loans are for start ups, and these loans provide ultra competitive busines rates, limited personal guarantees, and great structures, even offering no repayment penalties should you choose to pay off the loan.

If we had to isolate one or two major stigma around SBL loans surely one of them would be the issue of ' bureaucracy' around the paperwork and approval. But, as we said, if you have a proper proposal in place your financing can be approved in a manner of days - its a case of ensuring your banker knows and supports the program . Since the government, via INDUSTRY CANADA, underwrites the program clients need to appreciate that the banker is responsible for providing a proper paper trail.

So what is that paper trail? It’s not as bad as you think. It’s a business plan with some solid financial projections, and some back up info on your busines, such as your premises lease, as well as documentation around the assets you wish to finance. Assets financeable under the program are all type of capital equipment, including software, leasehold improvements, and even real estate.

Don’t underestimate the fact that you need to be in a position to document your own busines skills as well as having a respectable personal credit history. Oh, and by the way, since it’s a federal loan you might want to ensure you have your personal incomes taxes filed and up to date! Common sense, right?

So, bottom line, can a seemingly complicated process become easy, and fast. Consider seeking and talking to a trusted, credible and experienced Canadian business financing advisor who can put you on the fast track to success and approval for the Canada government business Loan - Make SBL loans work for you, in a timely manner!




Friday, November 11, 2011

Don’t Fall For Wrong Info On Getting A Canadian Franchise Business Loan - Get The Bank Franchising Finance You Need

Accept No Substitutes For Real Info On Franchise Financing In Canada

Information on how to get a franchise business loan . Franchising finance with and without the bank . Finance Your Entrepreneurial dream today

Misinformation. It's everywhere it seems. That’s why we think there's some room for some solid information around a franchise business loan in Canada, with, and without the franchising bank finance you are probably looking for.

The whole issue of ' the bank ' is probably where a lot of the mystery, apprehension and misinformation lie when it comes to franchising finance in the Canadian marketplace.

When you understand how the banks participate in franchise finance and your loan in particular things get a lot clearer. We think if we lined up ten business people and entrepreneurs and asked them if they thought banks would finance their franchise... well we hesitate to guess their answers, or coments.

The reality though, approached under the right circumstances and program the fact that you are purchasing a proven business model is actually very appealing to the bank - Again, under the right program.

So where do things go wrong? One of them when we talk to clients is simply the fact that they are incorrectly assuming that the financing they are looking for will be a loan for 100% of the purchase price. We only wish!

The reality is that you must be prepared to inject certain funds; we'll call it an equity or owner investment, into your business. Under the right franchise finance program that permanent injection can be as low as 10%. Naturally certain other ratios around liquidity and debt have to make sense.

Remember also that the right mix of debt, i.e. what you owe, and equity, i.e. what you put in is the classic success story for any business financing. It's all about the right blend. You don’t want to drain all your personal resources, that’s for sure - at the same time you want to be in a position to pay yourself and your franchising finance loan and show a reasonable profit also.

We keep referring to a ' program' Specifically its the government BIL program which is administered by the banks but underwritten, or ' guaranteed' substantially by the government , to your lender, the bank!

Clients often ask us if they can get franchising assistance from a finance point of view from their franchisor. We're skeptical that happens a lot, and if it is it’s certainly in a limited fashion - so don’t hang your hopes on that dream too much!

Does being prepared make sense to you in business? It sure has to us! That’s why a very simple basic package that covers info on yourself, your new proposed business, some financial projections and other misc data make a franchise business loan happen a lot faster.

What about the financing costs for that loan ?The truth be told ( and we did promise you the truth ) is the BIL program has the best rates in Canada for any start up business, which is more or less what your new franchise is . Rates are in the 3% over prime range, and other enhancements to the overall credit package of the program are very
attractive to you, the business borrower.

Your own business background and personal credit rating play a key part of any franchise financing decision. Be prepared to demonstrate paying your taxes on time, having good payments with your creditors, etc. Typically you won’t be asked to put up additional personal collateral such as homes, savings, etc. But again, that's if you have presented your overall picture properly.

We often supplement client financing with equipment leasing on certain assets when that makes sense - that might include P.O.S. systems, computers, etc.

Want to make sure you are getting the real scoop on franchise finance in Canada. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in this area; thereby enhancing your business success potential.

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 :


Thursday, November 10, 2011

Dear Abby : What Do I Need To Know About An Asset Based Revolving Credit Facility And ABL Loan? Signed: Anxious

ABL loans Are Great Solutions For Canadian Credit Facilities

Information on why the Asset based revolving credit facility known as an ABL loan provides cash flow advantages to Canadian companies looking for a business line of credit.

Dear Anxious - A great question and now for some hopefully great answers on the subject of an asset based revolving credit facility for your company.

No doubt you have heard about the relatively newest form of business financing in Canada .What you may not understand is simply how an ' ABL ' loan is different from comparative offerings, such as the traditional chartered bank line of credit.

While is has many similarities to its competitors in daily utilization, the benefit of the facility tend to be significantly more enhanced for firms such as yours.

Typical borrowing facilities of this type are secured by two key assets, your receivables and inventory. Your goal when you enter into such a facility is clearly to optimize working capital around whats available today, and what you might need in the future. That’s where an ABL loan comes in. By giving your asset based lender the security around those two assets you create a borrowing margin immediately available to yourself.

We know you're asking yourself ' so whats so different about that ‘... ‘Haven’t you just described what a bank line of credit facility is?’? The true merit of the asset based revolving credit facility is twofold, if we're going to keep things simple.

First of all the advance rates or the amounts you borrow can be significantly more than in other more conservative facilities. It is certainly no unusual to achieve an 85-90% advance rate on your eligible receivable, those under 90 days. And when it comes to inventory, don’t get us started ; because once its clearly understood what type of inventory you carry, what the general turnover is, and how you capture and track this asset you can usually borrow anywhere from 30- 70% against your inventory line .

The other key benefit is the absence of a lot of those ratio and covenant restrictions imposed by traditional financing, including the de-focus on areas such as your personal guarantees.

Let’s keep things simple. If you weren’t getting any significant inventory margining before, and were getting standard 75% a/r advance we can safely say that many companies can increase their borrowing capacity by anywhere from 50-100% on day one .. Via their ABL loan facility.

We keep using the term ' ABL LOAN ‘, but the reality is that your company is taking on zero additional debt in a true asset based line of credit scenario . You are simply ' monetizing ' assets for liquidity. Your facility goes up and down everyday, in the true business cycle as you buy inventory, reduce payables, generate sales, and of course collect them. It’s as simple as that.

So, who is eligible for this type of business borrowing? As we said, we like to keep it simple, so the reality is that any business requiring a working capital line of credit in excess of 250k is in fact eligible. And, get this, you can be public, private, doing well, financially challenged, or even in bankruptcy proceedings. We think we can safely say that ABL financing doesn’t discriminate - if you have assets your eligible in some form for this great new trend in Canadian business financing!

Well that’s it ‘Anxious’. Want more info? Consider speaking to a trusted, credible and experienced Canadian business financing advisor on the merits and differences in asset based revolving credit facilities in Canada.

Stan Prokop - founder of 7 Park Avenue Financial -


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 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 :


Wednesday, November 9, 2011

Avoid Costly Mistakes In Financing Working Capital – Finance Solutions For A Canadian Business Cash Flow Loan

Best Choices For Cash Flow Financing In Canada

Information on working capital financing solutions in Canada. Loan or Monetization business finance solutions that can work for you.

It's a mine field out there! And some of the decisions you make around financing working capital can be beneficial, or costly! depending on the business finance loan or arrangement you ultimately choose. And whats probably worse is making that type of decision without knowing all your options.

When we meet with clients we often find we are talking about all sorts of unique situations - perhaps the company has expanded too quickly. In some cases interest expenses on long term debts and leases and equipment loans are severely eating into profits. It's of course a vicious cycle and one difficult to get out of - with those liquidity challenges around financing working capital leading to some serious problems.

The signs are usually quite clear - in hindsight, not when you're in the thick of the weeds. We often think of how easy it sometimes probably is for folks to write those ‘business cases' in MBA classes about what went wrong and why. Probably would have been a bit more difficult for them if they were like you, in the thick of it.

So what are some of those danger signs in cash flow financing and business working capital loan scenarios? Those warning signs are often called ' overtrading ‘. Symptoms include very strong growth in sales, dwindling profits, lack of knowledge around short term and long term financing options, no cash flow budges, high leverage ( that’s too much debt by the way !) and slow moving or other inventory issues . Talk about a plethora of problems!

Working capital loans are in fact available in Canada. They are limited, but available. A pure working capital loan is most commonly a term loan, for cash, with fixed repayments and terms of typically three to five years. To get this loan you need to demonstrate historical and future cash flow. Many of the problems we pointed out above in overtrading don’t really often make your firm a candidate for this type of financing. Larger companies are in the same position - these loans are then called mezzanine loans or sub debt type financings. Bottom line, those same cash flow qualifications.

There are some methods of enhancing your working capital that many of the clients we talk to don’t think about. Simply negotiating better terms with favored suppliers is a good one. Also, earlier we spoke of Canadian business owners who knew they had a problem but weren’t aware of possible solutions.

One of those solutions is a working capital facility that monetizes your inventory and receivables. These facilities, a sub set of asset based lending are more expensive usually than bank financing but boy do they solve the problem. Other alternatives are bridge loans on existing equipment, aka the infamous ' sale lease back '.

Never also forget the fundamentals - i.e. a good cash flow plan, solid inventory management, etc.

We'll never know why but every business owner seems to think their situation is unique. Sometimes it is, but more often than not these are classic business finance challenges faced by all. Speak to a trusted, credible and experienced Canadian business financing advisor on the problem, and more importantly, the solutions!

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 :


Tuesday, November 8, 2011

Which Of The 3 Equipment Lease Rates Would You Choose ? Canadian Capital & Operating Lease Payments Explained!

Canadian Equipment Lease Rates – the truth!

Information on equipment lease rates in Canada . How are lease payments calculated on both capital and operating lease scenarios . Which type of transaction has the best payment structure for your firm?

OK. Quick test. Here we go. Let’s test your knowledge about equipment lease rates, payments... as they appear to be, and how those payments look in capital and operating leases in Canada.

Let’s assume you have a $ 150,000 transaction - you are looking for a 4 year lease term, and you are being offered three lease payment choices. Those choices are:


So, now the test. Are you ready. Which payment do you choose? The answer. All three transactions are essentially the same! Its just that the type of lease you choose and how Canadian equipment lease finance companies show you that payment is really where you can save, ( or by the way , lose) thousands of dollars . Let’s explain.

First of all, threes a huge difference in the types of leases being offered to Canadian business owners and financial managers in Canada. We're actually quite lucky because the U.S. leasing industry is populated by all sorts of leases, the names even make our eyes roll, and we think we're somewhat of an expert. They include Trac leases, synthetic lease, non leveraged lease, etc.

But, we're Canadians, eh?! So we keep it simple, and for the most part you only have to choose between two types of leases in Canada, capital and operating. Its the equipment lease finance industry in Canada that sometimes tries to make even these two scenarios complicated - its our job to keep clients decisions simple, and, oh yes, understandable !

Once you have a handle on the two types of leases, and some of the ' games ' albeit legitimate that lessor tend to play you should consider yourself fully armed with respect to getting leasing payment and equipment lease rates for those two basic scenarios ; capital, which is ' lease to own', and operating, which we call ' lease to use'!

When you enter into a capital lease you have made the decision to own an asset at the end of a typically longer lease term. In Canada that is anywhere from 2-7 years, although the most typical lease terms are three years and 5 years.

Operating leases on the other hand tend to be 2-3 year terms, and the reason why is that some of the technical and accounting calculations needed to make an equipment finance lease work from an operating perspective require the calculations to be on a shorter term. But that’s ok, because its assets in an operating lease that tend to be upgraded, returned, remarketed by you or the lessor, etc.

We encourage clients to think of their lease financing needs in terms of both financial reasons and operating policy reasons. All sorts of issues come to mind when you are leasing assets in Canada, not the least of which is getting approved! Other issues such as budgets, payment flexibility also come to mind.

Oh, and back to our opening question, which would you choose again. The first calculation is a standard lease with no obligation at the end of the 48mo term. The 2nd transaction is a slick trick, and actually useful financial strategy, which is providing you with a purchase option at end of term. You can pay or extend typically. And the final is an operating lease, same asset and term, but with a 15% residual investment by the lessor.

A bottom line? As always, speak to a trusted, credible and experienced Canadian business financing advisor who can help you wade thru the myriad of equipment lease rates and structure in a common sense manner that benefits your company.

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 :