The Government Of Canada Business Loan : A Better Way Via Unsecured Business Loans

Govt SBL Small Business Loans Fix The Burning Desire To Start Or Grow A Business

OVERVIEW – Information on the government of Canada business loan . These guaranteed unsecured loans are the entrepreneur/business owners solid route to starting or growing a business

Unsecured business loans , via the Government of Canada business loan program almost always (and done properly) satisfy the need of the entrepreneur/business owner to start or grow a business. It has become a great way to quench the burning desire of entrepreneurs to finance or begin a business. Let's dig in.

When business people become aware of the program all of a sudden the goal of financing a business becomes within reach. That is not to say of course that numerous other challenges exist (location, staff, generating revenues to budget), they do, but the idea of obtaining the cash flow you need in a form that is very competitive is all of a sudden very appealing.

Not having the right or enough financing in place can often backfire relative to owner credibility - in business 2nd chances are hard to come by in many cases.

The appeal of the program essentially revolves around the fact that it provides competitive financing, up to 350k, for businesses that can't access traditional capital from Canadian banks. Rates for the program are in the 3% over prime range, and at today's low rates that’s very appealing for start up or SME COMMERCIAL FINANCE needs. By the way, the size of your firm, projected or actual, must be under the 5 Million dollar range on an annual basis.

Government SBL small business loans are offered by INDUSTRY CANADA, a part of our federal govt in Canada; but they are administered and approved by Canadian chartered banks. The government provides credibility to your loan via a guarantee to the banks for a substantial part of the loan. What bank doesn't like that?!

When we meet with clients requiring this type of loan it's often necessary to instantly clarify what the loan finances. That is new or used equipment, leasehold improvements, and real estate. What it does not cover, much to the disappointment of many, is working capital, refinancing existing loans, and inventory. Those needs can of course be accomplished by other finance sources including:

Leasing
Receivable and Inventory Cash Flow Financing
Sale Leasebacks
Tax Credit Monetization of SR&ED claims
Asset based ABL lines of credit

To qualify applicants need a reasonable personal credit history, a business plan and cash flow forecast that reflects the potential success of the program, and basic info that would in fact be part of any other business financing loan - i.e. incorporation details, details of use of funds, a premises lease, etc?

If you're looking for the ' better way ' in business start up or growth financing seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with capital needs.


Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN GOVT BUSINESS LOAN AND UNSECURED LOANS EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Asset Based Line Of Credit : Your Solutions To Your Mountain Of Pain Via ABL Business Credit Lines

Don’t Click Here If You’re Satisfied With Business Credit Line Financing

OVERVIEW – Information on the asset based business line of credit . How this ABL solution differs from traditional bank lending . Assessing the highs and lows of this method of revolving credit facility

An asset based business credit line is one solution to what many business owners / financial managers tell us is their ' mountain of pain '

when it comes to revolving credit facilities that make sense for their company. ‘ABL ' asset based lending is the one alternative to achieving a working capital line that makes sense. Let's dig in.

There are subsets of asset based credit that also work for many businesses in Canada. The primary one is invoice financing, which focuses specifically on accounts receivable, and unlike ABL, does not take into account borrowing against your inventory, equipment, and other assets. While invoice factoring works for thousands of firms it falls down when the business owner/manager finds that way of financing the business as too inflexible.

Getting into the wrong facility can become either too expensive or in some cases cumbersome. If there's one primary reason businesses shy away from invoice financing it’s because they don't want the financing to have any involvement with customers, suppliers, etc.

We can commiserate with these clients because the ability to keep how you finance your company private is probably how you want to run your business. If there is one other perception of invoice financing on its own it’s that many firms simply don't understand what it does and, as importantly, how it works and how it is priced.

How are commercial finance firms offering ABL credit able to compete with banks? Top experts tell us that the ' risk spread ' on banks lending to smaller firms is less attractive than lending to large commercial borrowers.

Asset based lenders fill the void that exists when small to medium sized businesses find they are unable to secure ' traditional' loans.

So that brings us around to the ASSET BASED BUSINESS LINE OF CREDIT, which finances your a/r, inventory, and equipment under one revolving credit facility . In many ways is the perfect alternative to ' credit hungry ' Canadian business.

Top experts tell us that thousands of firms are now fully utilizing asset based lending facilities - primarily in the start up and SME Commercial market place, while many would also be surprised at major corporations that utilize this type of business borrowing.

This ' bundling ' of your assets into one borrowing facility provides liquidity and borrowing power that is more often than not 100-200% more than you could achieve at a bank facility. It is also well suited to Canadian businesses that sell into the U.S. as no real distinction is made between U.S. and Canadian receivables if you're working with the right partner.

And paramount to all of this is the fact that the facility is ' CONFIDENTIAL ' with respect to your business running on its own, billing and collecting your own receivables.

If you're looking to understand the key advantages of the ABL business line of credit vs. your ability access bank finance seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in removing that ' mountain of pain ' around working capital needs in Canada.



Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN ASSET BASED FINANCING EXPERTISE



Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Financing A Franchise Purchase In Canada : Your Franchising Loan Trust Factor Starts Here

Stuck At The ‘What To Do Phase’ Of A Franchise Loan In Canada?

OVERVIEW – Information on financing a franchise purchase in Canada. What are the most effective means of obtaining a franchise loan in the Canadian marketplace

Financing a franchise purchase in Canada often involves a ' trust factor ' that is being sought by the franchisee when it comes to choices and alternatives in accessing the right capital for the business purchase. That purchase can be from the franchisor directly, or from an existing franchisee that has the authorization to sell his or her business. Let's dig in.

Often the franchisee is simply stuck at what we call the ' what to do ' phase of the business purchase decision. While many regard Canadian chartered banks as the solution for the buying of the franchise the hard truth is that this type of business financing is rarely done directly by the bank.

When it is it requires the purchase of one of the larger and well known names in the franchise industry. This eliminates hundreds of other franchises where the franchisor has not established a relationship directly with a bank program.

What then are three solutions available for the entrepreneur who wishes to enter this industry? One is what we just mentioned, purchasing one of the larger ' names ' in the business where established programs are in place. (By the way, that doesn't guarantee approval, it gives you only the right to apply!).

The second solution is to work with a specialty franchise finance lender which again has some constraints around what and who they are willing to finance. The third solution? It's to cobble together some financing via commercial finance firms that might consider financing specific assets such as equipment, leaseholds (difficult to finance), as well as working capital needs.

But wait... there's more!

One tried and tested solution is to utilize the Govt Small Business Loan, aka the ' SBL '. While not originally intended to finance the purchase of a franchise it has become the ' go to ' method of franchising finance for thousands of entrepreneurs.

What makes the govt loan so attractive is that it is easier to get approval for by virtue of the fact that the govt guarantees the majority of the loan to the bank. Rates are also attractive, and that includes the ability to prepay without penalty. Additionally not personal collateral is attached to the transaction, and those leaseholds, often difficult to finance, are fully financeable under the program.

Franchise purchases up to 350,000$ are financeable under the SBL. Basic requirements are a good personal credit history, a positive personal net worth, as well as being able to demonstrate and provide a strong loan package that includes a business plan, cash flow projection, etc. Remember the bank (and the govt) is not an equity partner with you, they simply want to be repaid from projected cash flow/profits.)

If you're looking for franchise capital and are reluctant to pledge personal assets, home, etc seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your financing needs. It's virtually the end of your ' what to do ' phase in financing a franchise purchase in Canada.




Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

http://www.7parkavenuefinancial.com/financing-franchise-purchase-canada-loan.html





Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Business Loans And Bank Line Of Credit Options In Canada

Canadian Bank Financing Solutions And Alternatives ( The Elephant In The Room )

OVERVIEW – Information on the role of bank and commercial financing companies in Canada for business loans and the search for a bank or non bank line of credit in Canadian business financing needs

Business loans or a bank line of credit have Canadian business owners and financial managers facing a double edged sword - We're calling it ' choice ' and ' challenge ', and the current popularity of the phrase ' the elephant in the room ' begs the discussion around how business feels about bank and bank alternatives . Let's dig in.

There is a lot of talk among (mostly older!) business people around the ' loyalty ' they have to Canadian banks and other commercial finance sources. Major studies and top experts clearly show that loyalty is declining and the overall experience business has with accessing financing is at a minimum ' troublesome '.

Automization, credit scoring, and digital forms of borrowing have continue to create a maze of both confusion and options for the business borrower. The SME COMMERCIAL FINANCE sector, as well as start ups faces challenges in sourcing a bank relationship manager that can provide capital and revolving credit facilities that meet the need.

While larger ' credit worthy ' customers have access to almost unlimited capital at incredibly low current rates , including the luxury of having banks compete for their business , the start up and SME Commercial Finance sector is often unable to access this capital for credit quality reasons .

This latter group has to gravitate to a number of non bank solutions that provide capital but often have a higher cost - that’s the ' trade off ' - Those solutions include A/R Financing, Inventory Finance, Asset based ABL business credit lines, Tax Credit Monetization Sale Leasebacks, and Purchase Order and Royalty Financing . Companies that have successfully sought these options have provided portions of their assets to acquire the capital they need, notwithstanding that banking is often the ‘preferred ' option. The simple bottom line - Canadian business borrowers are willing to consider options.

We've also dealt with many clients who simply want to change their bank because of either an account mgr relationship issue or loan covenants that don't make sense. (To the bank they seem to make perfect sense!)

Price and costs of finance is often the key motivator in changing a bank relationship. The challenge of the bank relationship manager is to sell a total value added relationship , which can often be limited because of issues such as geographic coverage, etc.,

Timing of approval and access to capital is a big issue, many business borrowers simply can't wait for the time it takes for a bank to make a decision - that allows many commercial finance companies that offer other solutions to be viewed as a viable alternative. In many cases such as ABL financing, tax credit finance, PO /Trade finance these firms are highly specialized and viewed as the expert in certain niches.

Many of these non bank alternative solutions also can co exist nicely with a bank relationship - however some can't when it comes to collateral, etc.
If you’ve been reluctant to discuss the ‘ elephant in the room ‘ i.e. the bank or non bank financing solution seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with a total financing package, bank or non bank, that makes sense within your firm and industry.




Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS LOAN EXPERTISE


Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Creative Business Financing Options In Canada : A Thumbs Up Overview

Looking For Some Traction In Canadian Business Financing

OVERVIEW – Information on creative business financing options in Canada . A combination of traditional and alternative loan strategies to finance growth

Creative business financing options are constantly sought by business owners/financial managers and entrepreneurs. Whether they are a start up or established business it's a constant struggle to get a handle on ways to strengthen the business... financially. So how does business get some real ' traction' in financing? Let's dig in.

Access to the right financing sources, either alternative or traditional helps you strengthen your business. It's unfortunately often too easy for the business owner/mgr to feel like the company has ' hit the wall '

which we've found unfortunately prompts some ' undesirable behavior' which might inlcude delaying payments to key vendors relationships, using CRA obligations for your working capital source (not a recommended alternative finance strategy!), and perhaps worst of all for true entrepreneurs - being unable to take on large contracts, new business, experienced employees, etc.

The big guys view the whole process of growth as ' scaling' a business. How then does the owner/entrepreneur ' scale ' their business in the SME COMMERCIAL FINANCE space? The answer revolves around:

Understanding core finance strategies (working capital / term loans / asset monetization, etc)

Being able to address financing for immediate and long term growth

Knowing they key issues that will both inhibit your ability to access cash flow financing is key.

Key to execution of a finance strategy is knowing your options - they are in fact just a few short categories here - monetizing your assets, taking on term debt, or accessing unsecured cash flow financing.

The actual solutions? They are a combo of traditional and alternative financing strategies - In some cases only one is needed, in most cases its a cobbling together of a couple of options to address multiple needs of your business.

Revolving bank lines of Credit - TRADITIONAL

Unsecured Cash Flow Loans - TRADITIONAL

Working capital term loans - TRADITIONAL

Govt Guaranteed SBL Loans - TRADITIONAL

Equipment Financing - TRADITIONAL

Sale Leaseback/ Bridge Loans - ALTERNATIVE

Asset Based ABL Business Lines Of Credit - ALTERNATIVE

A/R Financing / Factoring / Confidential Receivable Financing - ALTERNATIVE

INVENTORY FINANCE - ALTERNATIVE

SR&ED Tax Credit Monetization - ALTERNATIVE

PO / CONTRACT Financing - ALTERNATIVE

Sales Royalty Financing - ALTERNATIVE


Which of those 12 traditional or alternative finance options works for you. Will one or a combination allow you to give the ' thumbs up '

to finance success? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with balancing proper loan needs and solutions.


Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCE OPTIONS EXPERTISE






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Receivable Finance In Canada : Get Back On Top With Financial Factoring

Looking To Overcome Your Fear Of Receivable Financing & Factoring?

OVERVIEW – Information on receivable finance in Canada . Financial factoring allows business owners/managers to get back on top of cash flow and working capital challenges

A lot of receivable finance in Canada happens via financial factoring. For those business owners and financial managers that aren't fully familiar with this method of Canadian business financing there is that potential element of fear of the unknown. We think some basics, as well as some recommendations are in order, allowing you to get back on top of business financing challenges. Let's dig in.

A world wide revolution is in fact in place on alternative financing methods such as A/R finance - a subset of asset based lending. The real surprise is that companies of all size, from start up to major corporation in fact utilize this method of cash flow/working capital financing.

Factoring is a very ' formulaic ' and is a financial solution linked to the total value of your accounts receivable. Factors such as income statement, debt to equity, and personal collateral have very little to do with approval for this method of finance, which is of course one of the reasons for its popularity. In effect your A/R always covers your ' loan ' amount, although loan is a misnomer as it’s actually a ' cash flow monetization' of your 2nd most liquid asset - Receivables. (Cash is still king at # 1!).

The broad appeal of financial factoring solutions revolves around the fact that cash is immediate on making a sale, if you choose that to be the case. Typical advances are 90%range, and that adds another layer of attractiveness given banks (if you qualify) tend to margin receivables at 75%. Bottom line - more liquidity.

Firms that might be deemed ' higher risk ' by Canadian chartered banks can still almost always secure separate non bank receivable finance solutions.

From the Canadian banks point of view the overall credit worthiness of a customer is what drives lending solutions. These are lower cost almost always, as financial factoring is a more expensive form of financing, but accessible! The bank in fact views receivables and others as ' secondary ' sources of collateral - A/R finance views it as the only source of collateral, therein the difference.

Many Canadian firms are uncomfortable with the traditional form of factoring, which almost always involves notifying your clients of the process and payment. Therefore our recommended solution is CONFIDENTIAL RECEIVABLE FINANCING - here the business bills and collects its own receivables - it’s only your firm that knows how you are financing yourself. A classic MIND YOUR OWN BUSINESS.

Businesses that want to source more capital can consider a non bank asset based lending solution, allowing them to combine inventory and equipment, plus A/R into one total business line of credit.

If you want to overcome the fear of assessing new cash flow financing solutions for your company seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your financing needs.




Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN RECEIVABLE FINANCE EXPERTISE



Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Finance Solutions Via Leasing : Leased Assets Without Tanking Your Business

The Have More vs. Have Not In Equipment Financing In Canada

OVERVIEW – Information on finance solutions in Canada. Leased assets offer numerous advantages when considering the lease vs. buy decision and that’s why these key leasing equipt .points matter

Leasing is used by over 80% of all North American businesses. But do those firms that currently choose finance solutions via leased assets really have more going for them vs. those ' have nots' who are constantly searching for an asset finance solution? Let's dig in.

Picking the right equipment financing partner and solution is as much knowing what’s going on as it is asking the right questions. One of our mentors once said ' I never learned anything listening to myself talk ‘!

Equipment leasing is a year round solution, depending on what’s happening in your company and your industry. There are numerous challenges in growing a business, and if your business and industry is dependent on new assets and technology ' refreshes' you're arrived at the right spot.

Let's take a look at questions you should be asking when it comes to the end of your ‘lease vs. buy ' decision. One of the tenets of leasing is that if an asset improves your business and has a longer life cycle, or need for change, you should be leasing. Your ability to determine the right monthly payment allows you to consider cash outflows on the lease vs. benefits you will receive from increased revenues, profits, or improved processes.


Next it's important to determine what leasing company you want to work with. This might be on a long term relationship basis, or simply for a specific one time need. The right partner firm will allow you to clearly understand cash outflows on the lease, the actual structure of the transaction, and any flexibility that might be required regarding seasonality of payment. Also, a solid partner will give you some choices around type of lease you need (capital, or operating), as well as balance sheet or tax ramifications that come with equipment finance.

The right partner will also help you understand the ramifications of the residual value of the asset at the end of the term - under certain circumstances you want to know how you can extend a lease, upgrade it, buy it out, or return the asset.

By the way, the right long term lease partner is also capable of getting a one time ' MASTER LEASE' in place, allowing you to simply add schedules to the lease as you need new assets - bottom line = quick/easy.

Also investigate your obligation around things such as insurance, marinating /servicing the asset (if required) and knowing your legal rights around what the industry calls ' end of term '.

So its clear , you can choose to be a ' have not ' in lease financing, but some key basics and working with the right partner will put you in the coveted ' have more ' camp - giving you 100% asset financing, , cash flow conservation, inflation hedge, and the ability to stay up to date with changing technology and fixed asset needs.

Leverage the knowledge and expertise of the right asset financing partner - seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your leasing finance solutions.




Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT FINANCING EXPERTISE







Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop