SBL Financing . Stop Worrying And Learn To Love The Canadian Government Small Business Loan

Canadian Business Finance solutions via SBL loans


Information on SBL government small business loan financing in Canada . Benefits and Overview of program requirements



The Government small business loan in Canada - AKA ' SBL FINANCING. What a great way to stop worrying about how you'll finance some of those key business needs when you're a start up or SME sector company in Canada .

Worrying about business financing surely ranks right up there when it comes to business owners and financial managers looking for the right type of finance for their firms.

The solution in fact might be right in front of you, via the Federal government (INDUSTRY CANADA) small business loan program. You're able to access financing up to 500k if you can demonstrate you qualify, have the right documentation, and know how to fast track an approval without some of the frustration experienced by many Canadian business owners and financial managers.

Is the SBL loan a good option for your business? We'll let you decide but we're pretty sure we think you'll find that when credit is tight and other forms of finance are unattainable you may have just found the perfect solution. It's simply a case of knowing the rules, and as we've said in the past, creating a short roadmap to business finance success.

So when does some of that ' worrying ' come in? It usually happens when you don’t have some key knowledge or professional assistance in the area of SBL financing. Having an advisor assist you can play an important role in your overall business financing success. It simply that role that assists you in ensuring you qualify and can access for the Government small business loan in Canada. And if you are working with the right advisor services will only have to be paid for on Success; talk about a win / win situation!

So how can you validate who is or is not an expert in SBL finance. You want to ensure you are working with a seasoned advisor who has raised funding for business and can demonstrate that track record. So validate their credentials, experience and save yourself a lot of time and definitely a bit of money. You actually are fully entitled to ask the advisor for references from the SBL lending community.

So what then is the value of such an advisor? First of all it's time saving, but secondly its more of a guarantee of success based on the advisors knowledge of what makes an application successful.

In our experience there is a lot of myth or misinformation around the program. Here's the truth around some of those myths and misinformed issues:

Everyone business person or company legally allowed to borrow money in Canada is theoretically eligible for the program. You do have to have reasonable net worth, credit status and experience in business.

All business sizes are not eligible for the program; in fact you have to have projected or real revenues under 5 Million dollars.

Real estate is in fact eligible for the program max, it 500k. Other assets such as equipment and leaseholds top out at 350,000.00$ max under the program.

So, a bottom line today? It's simply ' stop worrying' and spend some time to get the real ' skinny ' on SBL financing under the government small business loan in Canada . Speak to a trusted, credible and experienced Canadian business financing advisor on making the program work for you.

7 PARK AVENUE FINANCIAL
CANADIAN SBL LOAN FINANCE EXPERTISE






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

Looking For Business Purchase Financing In Canada ?. Buying An Existing Company? Finance and Buy Tips .

Benefits And Tips On Canadian Acquisition Financing

Information on business purchase financing in Canada . Buying an existing company ? Tips on how to finance and buy a business.


Business purchase financing. When you or your firm has made the decision about buying an existing business in Canada you need some solid information around how to finance your transaction.

Why buy a business in the first place. Many clients we speak to are fortunate enough to have what we might call an ' inside track' on a company or business that would accept a favorable offer based on current situation.

The obvious benefits around our ability to buy a business that is established already is simply the fact that there’s a revenue stream, a client base, and assets and location that are already in place . That certainly beats a start up scenario and all the work and challenges that go with that.

Also, business purchase financing also has the ability to structure a financing deal with the owner remaining in a subordinate position via a VTB, i.e. a vendor take back. Naturally the skills and expertise of the owner and current management team might also have a significant value to your own efforts to grow the business, at lease for an interim period.

Is it easier to arrange funding for an established business versus an existing business? There's never a clear answer to that one, but many people do believe your chances of success are much higher when you buy an established concern; and if you're a lender looking at a transaction such as this it also means you're more positive than negative, wouldn't one think?

Naturally cash flows and profits of an existing business are positive in the context that you can demonstrate immediate cash flows and profits to repay loan financing. In some cases you might be purchasing a franchise and you will need the support of the franchisor to make that acquisition. Once again the ' branding ' and ' reputation' around that franchise is clearly positive as opposed to negative.

Valuation is a challenge when it comes to both purchase and financing when buying a business. A higher valuation will mean you might have to finance a goodwill component, which is difficult in an asset based transaction. On the other side of the coin we meet clients who are interested in buying a distressed business that has been trending down - valuation is cheap and they believe they can engineer a turnaround. Easier said than done sometimes.

Valuations on the business can be supplied by the owner, or you can arrange your own through a qualified advisor or appraiser. That's particularly important when it comes to an asset based business.

Key issues to consider in the valuation and financing of the business are quality of the financials, revenue trends, cash flow generation - i.e. does the business use cash or throw off cash? ( The latter is better!) You or your accountant and advisor need to ' normalize ' the financials, making the assumptions on how the business costs will look after you take ownership.

In Canada businesses can be financed with term loans, asset based lending, franchise financing if applicable, and even the Government Small Business Loan if its a smaller transaction under 350K.

Speak to a trusted, credible and experienced Canadian business financing advisor on how to properly structure and complete buying a business in Canada.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS PURCHASE FINANCING EXPERTISE



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 :

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

Do You Like Easy ? Leasing Company Solutions In Canada For Your Capital Lease Asset And Operating Needs

Who Doesn’t Want Easy When It Comes To Asset Finance !


Information on leasing in Canada . Why Canadian business chooses the benefits of capital and operating structures for lease assets in Canada .



Easy. Leasing. What business owner or financial manager doesnt like easy , and when it comes to capital or operating lease assets that's exactly what is happening these days.

It couldn’t be any more basic; it’s you, your lessor, and the use or ownership of an asset. The majority of Canadian businesses prefer what's known as a capital lease, aka ' lease to own ' , The industry sometimes makes this a bit confusing as other terms for this transaction include ' financial lease ' , ' full payout lease' and ' finance lease '.

The bottom line, in that type of transaction you're simply signifying your choice of taking ownership at the end of the leasing term, of the asset or assets in question.

Why then do thousands of businesses in Canada, in fact almost 80%, so it would appear we're probably in the millions, choose the lease of assets as their Canadian business financing mechanism of choice .?

When you think of it, it really comes down to 4 basic reasons. First of all there is the necessity to acquire assets to run their business that they might otherwise not be able to purchase outright. Or perhaps they don't qualify for a bank term loan,

The other reason is termed ' risk shifting ' as your lessor shares the risk of ownership during the lease term.

Thirdly we have tax and accounting benefits that accrue to the Canadian business owner.

The fourth reason. IT'S EASY!!!! ... and convenient.

Almost all asset classes can be financed in Canada , but a great example of 'Easy 'when it comes to financing your business assets is computers , software and tech assets in general.

What business owner today wouldn’t be reluctant to lay out huge sums of cash when it comes to both cost as well as the constantly changing technologies of the tech world?

In fact that very subject, technology asset finance is why thousands of firms opt for the other type of lease available in Canada. That’s the ' OPERATING LEASE ‘and it’s simply a lease that can be renewed, extended, or upgraded during the lease term. That ability to make lower lease payments for only using and then returning the asset has a lot of appeal to chief information office in medium size or larger corporations.


Clearly there is an element of ' pride of ownership ' when it comes to fixed assets for your company. But it’s a changing world, and if you can achieve use and profits of the asset in an economical fashion its clear that leasing is probably for you.

Various techniques can be used when it comes to figuring out the ' lease vs. buy ' conundrum .Just make sure you use an apples to apples comparison tool, and that you understand your cost of capital and the real interest rate you are being offered.

So, ‘EASY’ when it comes to lease assets. You bet. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital and operating leasing needs.

7 PARK AVENUE FINANCIAL
CANADIAN LEASING AND ASSET FINANCE EXPERTISE



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 :

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

Surprised ? Here’s The # 1 Enemy of Business Cash Flow and Working Capital . You Shouldn’t Be!

Here’s A Clear Picture Of Your Cash Flow Needs And Solutions

Information on business cash flow and working capital financing in Canada . A strategic overview of what hurts and helps Canadian business owners when it comes to financing their company .


A business cash flow killer. Enemy # 1 when it comes to working capital for Canadian business?

Are you ready? Hopefully it won't be a surprise, but the number one killer of cash flow and working capital for Canadian business owners and financial managers is: Sales!

While most ' experts' say that its poor management that creates business failure we are pretty sure we can make a case that it’s the poorly timed financing of cash flow that comes a very close second! That goes, by the way, for a start up as well as established medium to large corporations.

The reality is that you need to understand your sales cycle and how it impacts cash flow; at the same time you need some sort of ' road map ' to business financing success. So whether its equity or debt financing you have to realistically and creatively address your cash and working capital needs.

Let's examine some ' real world " (that’s the world most of us toil in everyday) solutions to measuring and generating capital for your business.

So let’s get back to that enemy, which you probably always thought of as your friend: Sales revenue! In reality that sales revenue is a huge consumer of cash, because there's a whole series of steps that go ahead of generating that sale and collecting your receivables.

So what is that whole sales or cash flow cycle? Its the time and dollars that are spent on marketing, ordering products and services, making and delivering those products and services, invoicing them, WAITING... yes WAITING .. And then, voila! payment from your client . In most companies in Canada that can take anywhere from 30 - 100 days, and we can assure you most firms fall closer to 100 days than 30.

As you are on that journey to deliver your product and service you are spending money, and waiting, all along the way.

So how does the Canadian business owner / manager help stifle the cash flow enemy? One immediate quick solution you won’t like is to reduce sales revenue and focus totally on collections. You'll be business cash flow perfect but stomped out of business by your competitors, who are growing sales and employing solid cash flow financing methods.

The better solution - develop good financing and controls throughout your sales cycle , understand your cash flow metrics, and get creative with alternative methods of sales financing .

You can actually generate cash throughout your sales cycle by employing solid Canadian business financing techniques. They include bank lines of credit, receivable finance, offering customer financing solutions via a qualified third party, employing supply chain finance strategies, and turning your company into an immediate cash flow machine with asset based business lines of credit.

So, sales and revenue growth. The enemy? Certainly not the case if you have some solid controls and solutions in place. Speak to a trusted, credible and experienced Canadian business financing advisor on working capital solutions for your business.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS CASH FLOW FINANCING EXPERTISE




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 :

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

Make Equipment Leasing Your Asset Financing Choice. Liquidity 101 With Lease Finance In Canada

Canadian Equipment Leasing Solutions . Right Time? Right Now!

Information on equipment leasing in Canada . Reasons why lease finance is the business owners asset financing strategy of choice.


Equipment leasing in Canada. As a business owner or manager you prefer to maintain or enhance liquidity, as opposed to cash outflow. Inflow is good, and that’s why asset financing via lease finance continues to be Canadian business's method of choice for financing assets.

More sophisticated and larger companies spend a lot of time on areas such as ' cost of capital ' and equity versus debt scenarios. The SME business owner in Canada, probably, on the other hand just wants to know that he or she is conserving cash when it comes to fixed asset financing. It's as basic as that.

While some analysis by either segment of business in Canada (smaller firms / larger companies) may show that a lease might have a higher financing rate as opposed to a loan or cash acquisition the focus preference of most is pretty simple - extra cash flow!

You certainly don't have to be a sophisticated financial analyst used by the larger corporations to grasp the fact that the extra cash flow and working capital you save by making a lease payment over time can be reinvested in your company to operate and grow your business. So, yes, if your bank line is at 6% and your lease rate is at 8%, as an example because your company can use funds not spent to maintain cash liquidity.

A typical lease payment in Canada has one or two payments in advance, sometimes called a ' down payment ‘, or ' security deposit ‘. A loan scenario might easily involve a 10 - 20% deposit, while at the same time having potential negative tax implications for your firm.

And while yes of course it’s all about ' cash ' being ' king’ other aspects such as a longer term and residual lease structures also make asset financing via lease finance preferable.

Private, non public companies need to always maintain a strong focus on their overall capital structure, but they don’t really have the same focus as public companies who are generally obsessed with debt to equity ratios because of their public persona and shareholder concerns.

We must also never forget that some companies simply can’t obtain proper asset financing because of their overall credit situation. That's where lease structuring comes in, and more often than not a transaction can be structured with some creative solution that ultimately leads to financing and credit approval.

It's no secret that over 80% of North American firms (we guess that includes Canada!) utilize equipment leasing for their business needs. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your lease structure needs.





7 PARK AVENUE FINANCIAL

CANADIAN LEASE FINANCING EXPERTISE




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 :

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

Why Is AR Finance So Inexpensive In Canada . Factor Receivable Funding For Your Business - Not What You Thought!

The Devil Is In The Details Apparently When It Comes To Financing Your A/R In Canada


Information on AR Finance in Canada . How To Truly Understand Cost Of Factor Receivable Funding For Your Business.


Are you nuts? AR Finance... inexpensive? That was the reaction of one client when it came to discussing factor receivable funding in Canada for business.

The reality is that receivable financing in Canada is probably one of the most misunderstood areas of business financing when it comes to benefits, mechanics, and, as we said, cost.

We'll come to the issue of ' cost ' in a bit - let’s make sure we have got the benefits and mechanics under our belts first! AR Finance is Canada is, simply speaking, flexibility for short term working capital financing. It's mechanics, though relatively simple, provides Canadian business owners and financial managers with a large measure of cash flow and working capital when it comes to new orders and contracts, increased need for working capital as inventories and receivables grow, and , simply speaking, keeping your daily operations running smoothly.


It's of course your A/R that provides the backbone behind the capital that you need, allowing you the leisure of actually, as they say, working on your business, not in your business... and boy is that a difference as we all know.

One key benefit either overlooked or misunderstood is simply the fact that your factor receivable funding facility has the ability to grow as your business revenues grow.

And don’t forget , the key concept of AR finance in Canada is that your company isn’t taking on debt when you finance your receivables ; you're simply monetizing one the most key assets of any business, your receivables. A good analogy is that you are basically turning a Business To Business model into a cash business. As you sell, and invoice you receive cash the same day. Your facility of course fluctuates exactly similar to a business credit line, so factor receivable funding for your business goes up and down every day, just like a bank line of credit. You are of course paying for only what you use.

Many miscellaneous benefits accrue to your firm when you consider this method of receivable financing. They include:

- Ability to only draw down the amount of financing you need - It's a pay per use method for working capital

- Same day financing of your sales revenue

- Typical advances for A/R funding are 90% of your receivables

- A good facility will have per diem pricing

- Little or no emphasis on personal guarantees

- All North American receivables can be financed, and foreign A/R is financed via credit insurance which can be easily arranged


So, back to our client who said' ARE YOU NUTS ‘? As it pertains to AR costs of course!

Your business should be focused on profit and turnover. By having a constant supply of working capital and access to cash flow you have the ability to increase sales and profits. Many firms also have the ability to achieve overhead reduction as a competent AR partner firm performs these services for you.

Many clients we have spoken to have had to turn away sales volumes and large contracts because of financing inability .We see that all the time. With AR Finance you are now in a position to basically accept unlimited orders and contracts.

Do you believe you could enhance relationships with key suppliers by paying those cash or taking their offered discount? We sure think you could, and that’s a key benefit of factor receivable funding. That type of business activity also enhances your overall firm’s commercial credit rating, which should be important to you in the long run.

Got a lot of time on your hands as you run your business? We sure don’t, and you'll find that you'll be focusing a lot less on seeking external financing if you've got a solid A/R funding business solution in place.

So expensive? We let clients decide. But if you want to see how the true cost of AR finance fits into your business speak to a trusted, credible and experienced Canadian business financing advisor today.

7 PARK AVENUE FINANCIAL
CANADIAN A/R FINANCING EXPERTISE

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 :
http://www.7parkavenuefinancial.webpage66.com/ar_finance_factor_receivable_funding_business.html

A SR&ED Bridge Loan . Never Thought Financing Your SRED Tax Credit Claim In Canada Possible? Here’s How .

See How Easily Your SRED ( SR&ED) Claim Can Be Financed

Information on SRED financing in Canada. A SR&ED bridge loan for your refundable tax credit claim can be monetized for immediate cash flow and working capital .

SRED. aka ' SR&ED'. The dust seems to have finally settled on the SRED Tax credit claim program in Canada. To put it mildly it was a ‘winter of discontent ‘by all parties.

That means a couple of things of course, one of which is that it's ( more or less ) back to business as usual for the thousands of Canadian firms who utilize the SR&ED refundable tax credit program ; it also means that if you haven’t previously then you can also finance that claim . If only for one reason - immediate cash flow!

Sred financing , and yes , even the SRED program itself seemed to quietly slow down last year as the federal government took a hard look at the program . That same program was a critical part of the financing of thousands of firms in Canada who strive for innovation in their products and services.

And that’s everything, by the way, from start to up major established corporations. In fact only 20% of the users of the program were larger corporations , so we can only imagine the rumblings in ' SR&ED land ' for the 80% of firms who find themselves in either start up or early revenue mode, or perhaps they have just been in business a few years and are starting to ' ramp up ' in revenues.

While confusion seemed to reign supreme in ' SRED ' the reality is that the program took a hard hit in popularity as everyone with a vested interest made a hard stand on where they stood on the program . That included the government, of course, the SR&ED consultants that actually prepare you claim (most firms don't prepare their own claims “and industry economists and pundits who questioned the payback on the governments billions of dollars spent on these non repayable tax credits.

And for the firms who in fact finance their claims for cash flow and working capital via a SRED financing bridge loan for their claim in Canada that cash looked like it might be going away.

Nothing likes a happy ending, and there seems to be a general status quo on the program, although some changes were made to areas such as the ' CAPEX ' portion of the program.

All's well that ends well, we guess, so it’s back to ensuring that if you wish to finance your claim and accelerate working capital benefits that choice is all yours .

Claims are generally financed at 70% loan to value, and a properly structured SRED financing typically takes the form of a bridge loan collateralized by your claim. No payments are made for the duration of the loan, and your firm receives the balance of your claim, less financing costs once the good folks in Ottawa and your respective province approve and fund your claim per their guidelines.

Speak to a trusted, credible and experienced Canadian business financing advisor on a bridge loan for your SR&ED tax credit today.

P.S. Claims can also be financed today for your next years spend. Don't forget to look into that benefit also.





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 :

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

Got Your Cash Flow Financing Priorities Straight? Working Capital Business Solutions

Canadian business financing solutions for growth and operations


Information on cash flow financing management in Canada. Access to business working capital comes from outside.. and within!



Do you have your cash flow financing priorities straight? Pretty simple question, right? But when we talk to clients about what's important to them when it comes to business working capital they tell us they spend a lot of time on this issue, but are concerned that they don't have the resources or information the need to get the help they desire.

And when it comes to size, it unfortunately counts; because small and medium size firms in Canada just don't have the same access to ' financing talent ' for the liquidity to fund their operations. And it’s a two edged sword, gravitating between survival and growth.

What Canadian business owners and financial managers can do is to in fact spend their time a bit more wisely on what solutions make sense for their firm. And by the way, some of those solutions, as we'll discuss, are internal, not necessarily external! The obvious ones are spending properly, trying to self finance from within (yes you can by the way) and ensuring you have got some controls and tools in place to manage your cash flow financing needs and information.

After 2008 and 2009 world wide financial debacle many Canadian firms simply hunkered down and managed their availability of business working capital credit, but boy was it tough.

Growing your business requires working capital. We (hopefully) all agree on that. You need to have solutions in place to finance inventories and convert receivables into access to cash.

As we have always maintained you don't need to be a rocket scientist to manage working capital and improvements to it. One business pundit describes it as a ' block and tackle approach '! That approach is as basic as it comes - collecting money from your suppliers, generating better terms with your vendors and key suppliers, and turning those inventories.

That's what we were talking about before when we talked about the internal solutions, as opposed to the external ones. At that point you're simply focusing on your ' day’s working capital ' and your collection period days. That A/R and inventory that you carry should be at the top of your cash flow priorities list.

One problem clients constantly talk to us about is that as a small and medium size firm you have little negotiating power, perceived or otherwise, with larger customers and vendors. The big guys tend to want better terms if they are your customer, and they want prompt payment if they are your supplier. Talk about the proverbial ' rock and hard place!

That's when external cash flow financing solutions come into play in Canada , They include bank facilities, asset based lines of credit, receivable financing, inventory finance, supply chain financing, and monetization of tax credits and unencumbered assets .

Want help with some of those cash flow priorities. Speak to a trusted, credible and experienced Canadian business financing advisor today





7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS CASH FLOW FINANCING EXPERTISE




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 :

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

Its 11 P.M. Do You Know Where Your Business and Debt Financing Is? Funding Canadian Business Via Proper Debt Finance Solutions

What Type Of Business Debt Financing & Funding Is Right For Your Company . Debt Finance 101 !

Information on business debt financing and funding in Canada. What is the right amount and type of debt finance for your company.





Business debt financing and funding for Canadian companies. When other forms of financing such as equity or more esoteric arrangements aren’t available the Canadian business owner and financial manager turns to debt funding via a number of different short or long term debt finance strategies.

There is sometimes a fair amount of pressure to take on new debt to satisfy production, sales and marketing growth. The question very simply becomes - how much debt can your firm handle, are you aware of the different debt options and which one or ones might be best for your firm?

There's a great little analogy about why those lenders you might be looking to borrow from are somewhat cautious on occasion .It's apparently rooted in the fact that when the first caveman made a loan of a spear someone it was never returned, and when it was it was broken . The reality in Canadian business financing, we feel is when both the lender and the borrower have created a solution satisfactory to both.

And sometime debt is not always the answer. We find clients gravitating to debt solutions when they start to experience serious fluctuations in cash flow. When that cash flow and working capital is properly managed, or assets are properly monetized you might find yourself thinking less of taking on debt.

It's a fundamental discussion point in business that leverage, i.e. taking on debt aggressively can either pay off or put your company out of business. Talk about two different sides to the story!

The reality also is of course, that when you take on more debt to grow or fix the company you might find in fact that opposite has occurred and you are feeling somewhat restricted in the flexibility you may have once had in growing your business.

When that debt is short term in nature any refinancing becomes a bit more of a challenge. So the challenge is very simple then - take on the right debt for the right reason. Bottom line, rethink your financial structure. Naturally with more debt you do in fact increase your Return on Equity, but at the same time your breakeven point increases because of those financing costs.

Debt that is of course structured properly, against solid assets can be a good thing. And if those assets are part of revenue generation even better.

Historically in Canada companies have relied on traditional sources of capital, i.e. ' The Bank '. What more and more business owners and managers are doing are exploring newer forms of financing that might include asset based lines of credit, tax credit monetization, receivable financing and securitization, sale leaseback scenarios, interim bridge loans, etc.

The bottom line today? Speak to a trusted, credible and experienced Canadian business financing advisor about sources of capital available to your company in good... and tough ... times!




7 PARK AVENUE FINANCIAL
Canadian Debt Financing Expertise



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 :

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

ABL Financing . Recognize Early Warning Signs For The Need For A Canadian Asset Based Finance Business Credit Line?

Time for a Paradigm Shift In Business Credit Line Thinking?

Information on ABL financing in Canada. How business owners can spot trends in the need for an asset based finance business credit line



ABL Financing in Canada. How do you know when it just might be time to both discover and utilize one of Canada's best financing mechanisms for a business? There are in fact some strong signals and warning signs when it comes to switching to an asset based finance business credit line.

It kind of sneaked up on us, but asset based finance is growing and becoming more popular everyday in Canada as a business finance mechanism. While banks and other lending institutions focus on cash flow and ratios and covenants the asset based line of credit lender sits quietly in the corner and focuses just on one thing- ' Assets '!

We're going to discuss how you can recognize some key early warning mechanisms around when to consider this method of finance, but the simple rule of thumb is that you have to have assets such as accounts receivables, inventories, lien free fixed assets, and even real estate... well lets just stay... you qualify! That’s why wholesalers, retail organizations, and manufacturers and service companies of all types are gravitating to ABL finance.

We're always surprised when we hear clients say they haven’t even heard of ABL. More so when you consider some of the largest companies in Canada have abandoned bank facilities and moved to ABL. While for the larger company asset based finance business credit lines can in fact cost less and be more flexible, the reality is that for the small to mid size sector the cost of such a facility will in fact be more than bank credit. But, consider this, if you don’t qualify for the amount of bank financing you need that lower interest rate doesn't mean much when you're forced to restrict growth and focus almost all day on managing cash flow in an often crisis type mode. That's when reasonable financing costs should be the least of your problems.

Let's get back to some of those early warning signs that just might signify your need to check out a new paradigm in business lines of credit. Sales revenue has a direct relationship to working capital needs. Because those higher sales and growth opportunities bring higher levels of receivables and inventory and of course higher levels of payables.

Velocity, aka ' speed'. It not becomes a greater challenge to turnover assets to generate that working capital. It's up to the Canadian business owner and financial manager to, as you're growing establish what is acceptable in inventory levels, A/R collection days, as well as, oh yes, paying those suppliers.

Two ways for you to monitor your financial cash flow and working capital needs over time are to keep a simple track of working capital to sales and working capital turnover itself. The former is calculated simply by taking your current assets and dividing them by sales for, say, an annual period. Working capital turnover is measured by taking you sales and dividing them by your working capital for any period. You then track those!

Let's say you kept track of your working capital turnover and notice the ratio is trending lower. That means poor working capital performance, and you probably are feeling this via cash flow pressures.

When you utilize an ABL Financing facility you will find those assets can be monetized faster, with more liquidity in margining, resulting in higher borrowing power for working capital needs.

Speak to a trusted, credible and experienced Canadian business financing advisor when you feel your firm just might be exhibiting signs of a need for a better way in a Canadian business credit line via asset based finance.




7 PARK AVENUE FINANCIAL

ASSET BASED LINE OF CREDIT EXPERTISE







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 :

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

Getting Business Working Capital Financing Right . Ideas ,Tips And Solutions For Cash Flow Finance In Canada

Addressing Cash Flow Inside and Outside Your Business!

Information on sources of working capital financing in Canada and how to measure and asses your cash flow finance needs .



Is there life after business working capital financing and cash flow runs out? It's unthinkable but the reality is that business failure looms in the horizon when companies in Canada (and everywhere else by the way)run out of cash , or improperly manage asset accounts.

So how do you cope with cash flow challenges and what does the Canadian business owner and financial manager need to do to address this financing challenge.

As a starter, whether business people like it or not (certainly owners and financial managers) you have to have a grasp on your overall liquidity situation. This essentially becomes a matter of relationships , understanding how the relation of your current assets ( receivables, inventory , cash on hand ) are relevant to your cash flow success.

Not every analysis of some of these relationships is going to be relative to your firm all the time. The reality is that different industries have different financial profiles and it becomes a case of understanding where your company fits into the industry profile. And by the way, we never met a client yet who didn't think their firm was a bit different!

When you look at cash flow solutions you're looking at really two areas of focus, one is the overall solvency of your firm, and secondly the amount of risk you're prepared to take in making investments, taking on debt, and growing their company.

That's of course the inner view. The outer view is from lenders and suppliers, who are looking inside your company relative to your debt paying capability and your overall financial health, now and somewhat into the future. They have a vested interest in doing that based on what products of services they are supplying. And lenders don't even get us started on that...! The bottom line is they are looking to get repaid!

So business working capital financing then becomes a measure of looking at your balance sheet, i.e. your company resources... and addressing the various types of assets you have and how to monetize them to meet your operational goals. Any look into your balance sheet is a 'static one’... it's where you are at one place in time .It basically reflects how you're performing today. That income and cash flow statement basically show you how you got there.

So it's therefore important to understand some of those structural relationships when addressing cash flow financing.

In Canada your choices for working capital financing are one, or a combination of the following - receivable financing, sale leaseback financing, inventory financing, cash flow term loans, and bank and asset based lines of credit.

Which one of the above makes sense for your firm and how do you satisfy those working capital objectives? Speak to a trusted, credible and experienced Canadian business financing advisor today on how to best meet your business finance needs for growth and operational survival.




7 PARK AVENUE FINANCIAL
CANADIAN WORKING CAPITAL AND CASH FLOW FINANCING EXPERTISE



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 :

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

Finance Software? Computers ? Little Known Facts on Computer And Telecom Asset Financing

Leasing and Financing Your Tech Assets


Information for Canadian firms wishing to finance software and computers . The right computer and technology financing can be critical to your firms growth and success




Finance Software? Yes you can. Financing computer and telecom assets? Yes ... you should!

Never has the challenge and importance of financing your needs for Information Technology, software services, and telecom assets been more important. Safe to say also that it's a bit of a minefield around properly acquiring those assets. One of the reasons is that quite simply those needs change over time... and, oh yes, they tend to cost a lot more often than not!

As we seem well out of the collapse of the financial markets in 2008 -2009 (we kind of hope/think!) the importance, and access to that capital and those creative solutions seem once again at the head of the table, so to speak.

More sophisticated corporations tend to call it the ' technology sales cycle ', while companies in the Small to medium Enterprise sector in Canada simply call it a ' financial need '!

As you can see, we have a theme going here, and its basically you not only have to know ' what to buy” ... that's your problem, but from who to buy it from and finance it ... and that's where we can shed some light on some of those ' little known tricks ' we've mentioned. And when you master some of those tricks you quite clearly will be achieving a better ROI, as well as the cash flow conservation and budgetary pressures that come with investment in technology assets.

The whole concept of financing tech revolves around one basic premise - you want to be able to acquire the technology you need and at the same time be able to access flexibility, because boy do things change in tech!

So why should you consider the finance of software, computers, etc. Simply because it eases cash flow going out of your business. Many new innovative solutions also revolve around ' pay per use ' program. Quite simply the computer industry has taken the photo copier model and allowed you to pay for computing, printer and telecom power when you use it.

Don't forget to also investigate CLOUD and ASP solutions which also can save you tens perhaps hundreds of thousands of dollars in computer hardware investment.

So let's get back to a couple of those tricks of the trade. Cash conservation is one of them, so don’t forget to explore all options when it comes to staggered or flexible payments, and even operating leases which years ago were the ultimate in optimal tech financing - perhaps less so now because of accounting changes, but they are still a cash flow conservations strategy.

When you're budgeting for technology assets don’t forget to keep in mind the total solution, and ensure that solution can be financed. That's when the bundling of software, installation, delivery, maintenance etc can again save you thousands of dollars in outflows of cash. And by the way, one of the premises of leasing anything is the old maxim - ' IF IT APPRECIATES, BUY IT, IF IT DEPRECIATES FINANCE IT. Could any saying be more applicable in computer financing? As a business owner you want to be able to match the productivity benefits with your payments - over time. It's as simple as that.

Canadian business owners and financial managers sometimes have a fear of being ' locked in' to a particular vendor or product. The financing of that technology allows you upgrade and change flexibility to somewhat to a certain degree eliminate the whole issue of obsolescence.

Matching your financing solution and source to computer financing needs is important. If you want to explore those ' tricks of the trade ' and little known facts on methods of financing tech assets speak to a trusted, credible and experienced Canadian business financing advisor .





7 PARK AVENUE FINANCIAL
CANADIAN TECHNOLOGY FINANCING EXPERTISE



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 :

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

Don’t Utilize Receivable Finance .. Until You’re Read This . Mastering Tricks Of The Trade In Business AR Financing

How Much Do You Really Know About A/R Financing In Canada?

Information on understanding how business ar financing works and how receivable finance is priced .





Receivable finance in Canada. The business battlefield is littered with firms who either don't understand business AR financing from a pricing or a mechanics perspective, or, heaven forbid, have hooked themselves up with the wrong partner firm.

It's that proverbial fork in the road, and let's assumes the Canadian business owner or financial manager has taken it - he or she has opted to solve cash flow problems that have hampered growth and entered into an invoice financing facility.

But were the costs of the facility properly addressed, and are you working with the right lender ?Those two issues alone , when properly solved, or addressed, give you working capital and cash flow piece of mind.

You can make a huge mistake in receivable finance in Canada by not taking a bit of time to, as we say ' peel back the onion ' and ensure you understand that cash costs and mechanics of business AR financing.

So what issues should you consider when picking the right finance firm for your AR financing? Just like any other business or consumer contract you might look at you'll find that you need to address ' the fine print ', which typically isn’t the favorite thing we like to do, right?

Some of those miscellaneous charges can add up- for example some finance firms might want you to guarantee a minimum amount of financing business during any period - that might be a month, quarter, etc. A fee might be assessed if you have lower turnover.

The actual ' interest ' or financing charge is a subject of great discussion when we talk to clients about A/R finance. In general terms the amount of financing you do, the quality of your customer base, and to a certain degree the overall financial strength of your firm play a key role in pricing.

But business owners will find that the industry does in fact place a huge amount of importance on your A/R portfolio itself, not your own firms general credit worthiness. And that’s a good thing.

Also watch for the miscellaneous items that can add up, they include wire transfer charges, service fees, admin fees, - OMG it's almost as if we're banking in Canada !

If you're dealing with the right firm you'll find that you can finance all your Canadian and U.S. receivables without any issue. We do point out to clients though that if your receivables have a foreign component you may require some sort of credit insurance - which by the way isn’t a bad thing anyway.

In a perfect world you want to be able to move either to another A/R finance firm, or to a bank or other lender without penalty. Customers have a bit more negotiating power than they know when addressing this issue, and it should clearly be discussed up front at the time of entering into the facility.

Finally, make sure you understand the differences between a bank facility, a working capital term loan, and invoice financing, aka ' Receivable Finance '. The characteristics of a business AR financing facility are different - it's not a loan, it’s not a collateralized facility such as with a bank, it’s simply the ongoing sale of your invoice sales as you generate them, with the option of financing which sales you wish when you wish. It's simple as that.

Oh and by the way, we’re all for minding our own business, so be sure to consider a facility that allows you to bill and collect your own a/r without notification to suppliers, clients , etc . It’s our absolute recommended facility .

So is this method of Canadian business financing the answer to your current and future cash flow problems? As we said, it can be, if you take some time to master some of those tricks of the trade.

Speak to a trusted, credible and experienced Canadian business financing advisor today on how you can best understand and utilized business AR financing.





7 PARK AVENUE FINANCIAL
Canadian A/R Business Financing Expertise






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 :


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

Looking For Help For A Business Financing Acquisition In Canada ? Managing Mergers With Finance Solutions That Make Sense.

Looking for Merger or Acquisition Financing?

Information on financing mergers and acquisition situations in Canada . M&A business finance solutions.


Financing an acquisition in Canada. Or is it a Merger that needs a solid business financing solution? There are probably a good handful of technical or financial differences around the differences between a merger and an acquisition, and we of course all know it’s rare that you would have a perfect alignment of the planets - two companies that have identical business, equal asset strength, and income statements that are perfectly complimentary. That's the perfect world.

But Canadian business owners know it's not a perfect world and that such ' perfect storm' scenarios exist.

We can also make the case that years ago mergers and acquisitions were financed on the basis of asset values. These days it's safe to say there are lot of goodwill and analysis of future cash flows that play a large part in the total financing equation.

When we meet clients and talk to them about their M&A needs a few basic reasons always emerge as to some essential deal basics? In some cases the firm being acquired might be in somewhat of a 'death spiral ' due to mismanagement or its inability to wrestle with present economics. Heaven forbid, but we also even see crisis type situations.

Other scenarios that are part of the M&A profile includes owners ' cashing in' , family business scenarios, and growth opportunities that can't be realized by a firm without additional help, or financing.

So what do you need to consider when it comes to financing that acquisition or merger? It's important to understand both your internal and external resources, and to ensure you understand the different options you might need to complete an appropriate financing. We say ' appropriate ' because we often seen mergers and acquisition financing that have been the solution, but far from the right one.

This is exactly the right time you should be looking at your team - which might include a Canadian business financing advisor, your lawyer, accountant, etc. Here's where issues that might seem over technical to non financial types can hopefully be clarified in a common sense manner. They might include goodwill valuation, deprecation policies, asset valuations, etc.

Although you need financing for the merger it’s also important to understand what the borrowing capabilities will be for the new entity, and what form they might take. Solutions such as asset based lending, the gov’t CSBF loan, subordinated debt, and vendor take backs can all play a key part in a successful acquisition financing. It's precisely at this point that issues such as leverage can make or break ongoing business success. Putting one ' over - borrowed' company together with another leads to... well... you know... business failure.

For help in managing thru and completing an acquisition or merger speak to a trusted, credible and experienced Canadian business financing advisor.





7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS ACQUISITION 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 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 :
http://www.7parkavenuefinancial.com/financing_acquisition_finance_mergers_business.html

This Just In! Get Rid Of Franchise Finance Fear Once And For All . Financing Franchising Opportunity In Canada

Financing A Franchise In Canada – Don’t let fear of the unknown stop you now!

Information on franchise finance in Canada . How the Franchisee can overcome fear of financing franchising opportunity with the right info and strategy .




Franchise finance in Canada. The good news is that when it comes to financing franchising opportunity in Canada there are some proven methods for removing the ' fear ' or concern about not being approved for the purchase finance of your new business.

At the core of every successful franchise finance transaction in Canada is a solid business plan. And although you use this plan for financing the reality of it is that it has a lot of other value also. Most franchisors that have credible organizations in Canada, or who are U.S. owned can in fact provide you with some solid general assistance in the area of what should be in that plan .

Also, don't be fazed about the cost or time involved in putting together such a plan if you don't have a financial background. The cost of a crisp decent plan is in fact quite moderate and one can be completed in a relatively short period of time.

We find a lot of prospective franchisees have talked a lot about buying the franchise, and how much money they will make, while at the same time haven’t discussed the franchisors experience in their network of units in Canada when it comes to financing their stores. Oh, and by the way, we're even more surprised by many franchisors who don’t qualify their franchisees with respect to general credit worthiness, or net worth or business experience, but that’s another topic for another day. It would appear to us that if you're a franchisor you're only as strong as your weakest link!

Many franchisees in Canada have a fear of financing approval simply because they don't understand their options. There are only 4 options in Canada, and if you arent aware of all of them then we can certainly commiserate with you when it comes to being doubtful for financing success.

Oh, and what about those 4 methods. They are as follows:

You can self fund the entire transaction - not recommended, but if you can we're jealous!

You can use the vehicle in which thousands of franchises are financed - the Canadian government BIL/CSBF program

You can fund via a specialized commercial finance firm that specializes solely in financing franchising opportunities with well known franchisors

You can use a combination of any of the above scenarios and compliment that with equipment financing, merchant financing, or a traditional working capital term loan.

The key to a successful transaction is pretty simple, and it will remove all your fears if done properly. It’s to understand the level of personal financial commitment that you can bring to the table, along with planning venture with a proper business plan, and finally, soliciting the help of an experienced, trusted and credible Canadian business financing advisor who can assist you with the steps involved.




7 PARK AVENUE FINANCIAL

CANADIAN FRANCHISE FINANCING EXPERTISE





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 :

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

Is ABL Financing The Radical Change You Need In An Asset Based Credit Line For Your Business

The Canadian Asset Based Business Credit Line


Information on ABL financing in Canada . Why is the asset based business credit line a game changer for Canadian business .




ABL Financing is a ' game changer '. Let's take a look at some of the reasons why and the background around the business asset based credit facility.

If you're the financial manager or business owner of any sized business in Canada it would appear you're more often than not searching for working capital. The assets in your business can offer that flexibility when they are turned into a business line of credit facility that the financial folks term an ' ABL '.

The good news is that more and more firms in Canada, everyday, discover that the flexibility provided by this financing arrangement. When Canadian firms can't find a suitable traditional bank lending arrangement for working capital needs ABL emerges as a solid solution of choice.


All your firm needs with respect to qualifying for such a facility is any mix of accounts receivables, inventories, equipment or real estate. A typical ABL facility is a combo of 2 or more of these asset categories. The asset based credit line in fact gives the business increased borrowing flexibility versus a cash flow based solution from, for example, a bank .

Why is that? It couldn’t be simpler, in that assets such as receivable and inventory are margined at higher values than they are with the Canadian chartered bank offering. Again, its collateral, not ratios and covenants that count when it comes to an asset based credit line.

Is there a quick way for the Canadian business owner to rationalize a move to ABL? While no financing methods is always perfect , all the time the appeal of ABL is that it does not really focus on covenants - really the only thing that drives borrowing is the overall liquidity of your assets, whether you are growing or not.

Another key positive is that an asset based line of credit can pretty well increase automatically as your business grows - That’s because your assets would tend to grow at the same time.

We've said no single method of business working capital financing is the panacea of perfection. So business owners should realize that Asset based credit typically involves more month end reporting on those assets.

And while most asset based credit lines cost more than bank financing they can, on occasion be actually cheaper.

The ABL market in Canada consists of a fragmented bunch of firms, some niche based and Canadian owned, while others are divisions or subsidiaries of U.S. banks and mega corporations. The industry services companies of all size, from start ups to major corporations. It should come as no surprise that some of the largest and well known corporations in Canada and the U.S. use ABL financing so don't feel you are doing missionary work in business financing! ABL is here and it just might be the radical ' game changer ' when it comes to financing your firm.

Speak to a trusted, credible and experienced Canadian business financing advisor on how asset based credit lines can fund your daily operations, acquisitions, and growth.







7 PARK AVENUE FINANCIAL
IS AN EXPERT IN CANADIAN ASSET BASED
LINES OF CREDIT




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 :

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

Is This The Golden Age Of Business Capital In Canada? Financing And Funding Your Company Credit Needs

Canadian Business Financing


Information on accessing business capital in Canada . What types of credit financing and funding does your firm need and where do you find solutions that work .




Business capital in Canada. Is this in fact the ' GOLDEN AGE ' for Canadian companies seeking business credit and funding. We're not 100% sure ourselves ; we read that rates are low and capital is abundant - while at the same time clients tell us it's never been as tough to satisfy lender criteria or access innovative capital solutions.

The reality is that many business owners who arent in the Financial Post top 1000 in Canada spend a lot of their time ' finding ' financing .The goal seems kind of easy - find enough financing for your business at a cost that makes sense and gives you the amount of risk that the Canadian business owner and financial manager are prepared to live with.

That ' risk ' of course comes with the fact that too much debt, and might we add the wrong kind of debt and cripple a firm.

At the end of the day we can maintain there are essentially 5 ways to finance your firm - two of them, raising equity and issuing a bond or debenture are NOT the subject today. What we're talking about is innovative ways of supplier financing, lease and asset financing, and business lines of credit from banks or independent commercial finance companies.

Many businesses don’t fully realize of focus on the fact that supplier credit is in fact a key driver of your firm’s cash flow. Just negotiating long terms with your key vendors allows you to generate positive cash flow - That’s a fine line though as you ultimately need the support of suppliers. The last thing you want is for them to turn the ' credit tap ' off.

Yes, you can buy the fixed assets you need for your firm - but over 80% of companies in Canada in fact lease their assets. Whether its trucks, cars, computers, telecom equipt and heavy machinery the business owner has the option of leasing assets for anywhere from, typically, 2-5 years. That allows you to use up the ' useful life' of your equipment and match it to cash outflow vis a vis the payments.

Accounting has specific rules around the type of leasing arrangements that you enter into, primarily revolving around whether you are entering into a capital lease ' to own', or an operating lease ' to use '.

Bank and commercial credit business capital in Canada supply businesses with revolving lines of business credit and funding. They allow your firm to draw down and pay back up, based on pre set limits, the amount of funding you need for your business. The security of course is the assets of the business.

As a business owner you have to choose the right amount of debt and equity. The finance guys call that your ' capital structure’. Is there a perfect mix or ratio for that? The answer is... not really; it depends on the risk, flexibility, and amount of control you have in any particular financing.

So, is it the Golden Age of business borrowing. Our opinion is... not really. But you do have options and there are probably many innovative ways to finance your firm you have not contemplated. These include receivable finance, inventory financing, and asset based lines of credit, securitization, lease financing, and tax credit monetization. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your business capital and funding needs in Canada.



7 PARK AVENUE FINANCIAL
Canadian Business Financing Expertise




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 :

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