Lease Versus Buy : Hacking Into The Equipment Financing And Leasing Decision Business

The Subtle Science Around Lease Vs Buy Decisions And More….

OVERVIEW – Information on equipment financing in Canada and How Canadian business owners assess the lease versus buy decision when contemplating leasing new or used assets

Equipment financing decisions in Canadian business often start at the ' lease versus buy' decision point. Leasing business assets is a strategy used by the majority of Canadian businesses. We're examining that initial decision to finance as well as uncovering other information not generally understood. Let's dig in.

While business owners/financial managers, and rightfully so, reflect on the use of acquired assets and the profits or benefits they will generate it's also important to understand the financial impact on your financial statements.

What factors impact that initial decision to either buy the asset or finance it? They include:

Your ability to access financing approval

Any Tax issues that will play into the finance decision - as well the balance sheet effect of your transaction needs to be considered relative to any ratios and covenants that current senior lenders might require

Your ability to justify the cash flows on the transaction

Naturally if your firm has the available cash and is able to not impact your current credit lines negatively simply buying the asset is an option. Many business owners still hold onto the concept of ' pride of ownership' and do not wish to take on additional debt. They simply depreciate the asset over its useful life.

Businesses also have the option of financing assets under a term loan, and can deduct the interest on the loan on their tax filings.

Getting back to ' leasing ' though 2 key options remain. Companies can utilize an 'operating lease', or a 'capital lease ' to acquire the asset. Operating leases involve your lessor taking a position in the asset whereby when the asset is returned at the end of the term they will dispose of it for profit or refinance it with another client. This type of transaction reduces your overall cost and gives you of course full use of the asset during the lease term. Your actual lease payments are tax deductible

It should be noted that new accounting rules worldwide have somewhat discouraged the ‘off balance sheet ' aspect of operating leases.

By far the majority of equipment financing in Canada is done under a ' capital lease ' scenario. Here your company has ownership as well as use of the asset and you are in effect financing the entire purchase- unlike our operating lease scenario. Interest financing costs are deductible under the capital lease scenario.

The actual financing costs in leasing are dependent on your firm’s financial strength as well as the overall value of the asset.


While equipment leasing is utilized by many it is certainly not understood by all. Businesses lose a significant amount of money by not understanding their obligations during and at end of term. You should ensure the lessor contacts you prior to the end of the term and agrees on final disposition and termination of the lease. Otherwise a new lease term might begin with additional financial commitments by your company.

For those firms that have entered into operating leases they must carefully consider which of the three options they will choose under an operating lease that comes to full term. Those options are to return the asset, purchase it for fair market value, or agree to a defined extension of the lease. Even simple issues as the cost of returning and shipping the asset back to the lessor are often overlooked and can become costly. Miscellaneous charges such as admin paperwork and de-registration of the lessors security filing should also be considered and attended to.


The bottom line? The lease vs. buy decision should not be taken lightly. If you're focused on getting the proper information to acquire your business assets with the right finance 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 your equipment financing and leasing needs.



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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT FINANCING AND LEASING EXPERTISE



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

The Business Finance Challenge : Inside The Quest For Commercial Loan Financing In Canada

8 Secrets To Canadian Business Financing Success

OVERVIEW – Information on business finance solutions in Canada . Commercial loan financing comes with some prerequisites . Understanding various loan and asset monetization options for the Canadian business owners

Commercial loan financing in Canada is all about the right solution as well as timing for business finance needs. Top experts tell us (and business owners know it intuitively) that access to capital is a major issue for firms in the SME (small to medium enterprise sector). Are their some ' secrets' to improving success in your business finance needs? We think there are. It's all about knowing some of the basic rules. Let's dig in.

1. Personal credit history - Commercial lenders and banks place a fair bit of emphasis on the owner’s personal financial profile. The essence of this revolves around the perception that you will run your business finances in a similar manner to how you run your personal finances. While personal credit scores will never be the only reason you are declined for financing it's certainly a factor and gets part of the vote

2. Collateral - Many forms of financing involve collateral, both within the business and outside the business. Knowing and being able to negotiate the true value of your collateral is a key component of business financing. In certain cases it either makes sense, or will be required, to have collateral properly valued and appraised. That's important for both the borrower and the lender



3. Cash flow generation - Banks in particular, but in fact all lenders place a certain amount of emphasis on cash flow if only for the reason is that it's what pays back loans! Successful businesses can properly demonstrate their past, present and future cash flows as they relate to growth, debt repayment, etc.



4. Understanding your Options - Many business owners feel somewhat ' doomed' when raising funds for their business if only for the reason they don't understand their options. Here it's important to get a handle on whether you're able to take on debt on your balance sheet or if the focus is on monetizing assets you already own. In other cases you're looking for working capital solutions such as business lines of credit that monetize A/R and inventory.


5. Sourcing the right lenders - Confusion can reign supreme for business owners/managers if only for the reason that there seems to be a multitude of financing sources. These include large institutions such as banks and insurance companies, as well as commercial finance firms that are either Canadian or U.S. owned. In some cases it makes sense to source local financing if the needs of your business demand a closer relationship with the lender.


6. Identifying the need - Debt / Cash Flow / Asset Monetization - The search for business capital involves understanding the true need of your business. Those needs typically revolve around survival, growth, turnaround, merger and acquisitions, or management buy outs.

7. Government sources of funding - While some business owners write off the govt in their minds as a source of financing two great programs exist. They are the Govt Guaranteed Small Business Loan and Canada’s SR&ED program. It makes great sense to check out the benefits of these two programs as they relate to your financing needs.


8. Alternative vs. Traditional Financing - In recent times a number of alternative non banks sources have risen to the top of the pile in business finance solutions. While they (not always) more often than not have a higher cost they can provide all the capital your business might need.

While the word ' No' will crop up often in your business finance search your chances of success increase greatly in understanding our 8 tips on your quest for business finance success. 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 your commercial loan financing needs.


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 100 Million $ of financing for Canadian corporations . Info /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 '



7 PARK AVENUE FINANCIAL = CANADIAN COMMERCIAL LOAN FINANCING AND BUSINESS FINANCE EXPERTISE




Stan Prokop

Asset Based Lending In Canada : Let’s Talk About Why ABL Is The Business Bank Alternative

Eleventy Jazillion Ways To Finance Your Company : But This One Works




OVERVIEW – Information on asset based lending in Canada . Know alternatively as ‘ ABL ‘ this form of line of credit financing is the business bank alternative to working capital and cash flow financing

Asset based lending in Canada provides Canadian business borrowers with a ' one stop ' solution for their line of credit needs. Also called " ABL' for short, it’s a business bank alternative. Let's dig in.

Although business borrowing costs are at all time lows the main reason business owners/financial managers consider 'asset based’ credit lines is simply the flexibility and additional borrowing power they provide for your business. It's a welcome relief for firms that can't always access any, or enough Canadian chartered bank financing.

By the way, some of the most recognized and large firms also use ABL credit lines if only for that same flexibility they provide. They have made the choice to replace bank borrowing with commercial finance borrowing even though they categorically qualify for bank credit.

Sizes of asset based credit lines range from 250k on the low end to tens of millions on the high end, with numerous players - both Canadian and U.S. based providing Canadian borrowers with these facilities.

Cost is of course always a discussion point when it comes to business borrowing. Although large credit worthy firms can borrow almost at the same or better prices than bank offerings the truth is that the majority of ASSET CREDIT facilities will always be more expensive. It's a case of balancing costs against the benefits of all the financing you need for working capital and cash flow based on your revenues and assets. As with any type of business financing you have to balance costs with access to capital and flexibility, as well as the time it takes to get approved. (ABL financing can happen in a matter of a few weeks if the borrower has all the proper up to date financials and asset lists)

Because the asset based lender uses very clear formulas based on your receivables, inventory, and equipment your borrowing power will always fluctuate with your needs. Typical ABL collateral financing is 90% for receivables, and pre determined generous formulas for inventory and equipment based on their real world value.

In some cases firms also used asset based credit to acquire a competitor or re-arrange existing debt. In other cases ABL is simply a temporary bridge loan to get your company to where it needs to be without taking on more debt .Business owners/mgrs quickly pick up on the fact that if sales are growing and there are receivables and other assets to back them up they have just discovered they now have all the financing they need.

Canadians are always recognized as being conservative - if only for that reason some firms never check out asset based lending as a good choice for their business - for whatever reason they associate not having bank financing in place as a stigma. Not the case these days as many forms of alternative finance are in fact the new ' mainstream'.

Let us not forget ratios and covenants. ABL lending is either covenant or ratio light, or non existent. It's your assets that back up the facility - not ratios. Banks love ratios! In fairness though reporting requirements are often more stringent when it comes to ABL borrowing. So be prepared to provide updated A/R, inventory and payable agings on an ongoing basis. Monthly is an absolute minimum but weekly reporting might also be required. It's the trade off you make for the non bank alternative.

If you're looking for someone who understands your business borrowing needs and you finally want to choose a non business bank alternative 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 borrowing needs.



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 100 Million $ of financing for Canadian corporations . Info /Contact :


http://www.7parkavenuefinancial.com/asset-based-lending-business-bank-abl.html


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

Tax Credit Financing And SRED Finance In Canada :Thinking Differently Via A SR ED Loan

Alarm Clock Ringing OnYour SR&ED Claim? It’s Time To Cash Flow It

OVERVIEW – Information on tax credit financing in Canada. A SR&ED loan has Canadian firms thinking differently on their r&d capital investment. SRED finance works by maximizing the cash flow timing around your claim . Here is how and why

SRED Financing in Canada is all about using tax credit financing for the right reasons. Maximizing Canada's r&d program via a SR ED loan is all about reaping the final benefit of the program - ' Cash ' Let's dig in .

It's important to view financing your SR&ED credit as an option that's your choice as a business owner/financial manager. It's simply one more way to assist in both the R&D portion of your business as well as your general financial health. Simply speaking, being eligible for the program makes you eligible for the financing.

Refundable SR&ED credits are of course for privately owner companies in Canada. They, along with their counterpart, film tax credits are administered by CRA - Canada Revenue Agency.

Financing your SRED claim is all about cash flowing your refund - many businesses that utilize the program are at various stages of what we can call their ' life cycle '. In fact many firms that choose to monetize their claim are in start up or very early stages of development. It's at these times that cash flow and working capital are most important.

What then are the typical uses of cash when financing your R&D claim? Typically they include:

Funding additional research - many companies have an ongoing R&D program annually

Utilizing the funding to move their R&D into new markets - aka Revenues!

General working capital needs - payroll, supplier commitments

Financing growth via new orders/contracts, etc

Some clients we meet often speak of the additional time commitment required to prepare the claim. Naturally a lot of that time commitment can be eliminated by both having documentation in place, and even more importantly ' tying your horse '

to the right SR&ED consultant - it's these folks that prepare the claims for this industry. Naturally a good consultant will maximize your claim.

Utilizing the right consultant adds legitimacy to your claim - and categorically speeds up the process both in writing your claim and ensuring it moves through the govt processes at 'warp speed ' .

Businesses will appreciate that not all govt programs move at warp speed!!







By the way, if you're looking for proof of the benefits of the program you need only understand that thousands of firms just like yours (including your competitors) reap almost 3 Billion dollars a year in refunds.

A SR ED loan is all about needing, and getting your money now. It's your chance to beat the ' waiting game ' as refunds can take anywhere from 3-12 months depending on the complexity, size and filing time of your refund claim. In fact the entire finance process, when you're working with the right firm can take only a couple weeks to receive funding.

SRED Finance typically monetizes 70% of your total claim. For example a 200k claim will net you 140k in loan proceeds. Really the simply way to look at it is to view the SR ED claim as an account receivable of your business - and you're simply borrowing against that asset . By the way the financing costs of a SR&ED loan are built into one final balloon payment at the end of the loan - this is a bridge loan with no monthly payments.

If you're looking to ' think differently ' on your SR&ED refund and want to consider the benefits of financing that claim today 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 cash flow needs.



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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN SR&ED TAX CREDIT FINANCING EXPERTISE



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 '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.




Stan Prokop

Business Acquisition Loans In Canada : Simple Rules And Financing Options

Captain’s Log : Existing Business Acquisitions

OVERVIEW – Business acquisition loans in Canada . Information on financing options for purchasing an existing business

Business acquisition loans in Canada require some key considerations for those contemplating acquiring or merging with another company, not the least of which are purchase price amount. In the SME (small to medium enterprise) sector various financing options exist to consummate your transaction. Let's dig in.

Experts agree that a poorly executed purchase of a company often has the buyer too focused on price without planning around terms associated with the financing, as well as a poor focus on future sales growth.

While it's no ' cake walk'

around your finance options there does exist several key alternatives around successful finance execution of your purchase. Safe to say the global 2008-2009 financial crisis didn't help, with lenders such as banks changing borrowing rules on almost every aspect of their business, including mergers and acquisitions.







Your equity (aka ' down payment ‘) on the transaction will typically be in a large range of 10-50%. Ultimately the purchase price will depend on some combination of down payment / seller financing/bank financing/third party commercial financing company. It's safe to say that down payment/equity needs have risen over the last few years.


Anytime the seller chooses to participate more in your transaction (known as the ' vendor take back) your chances of total finance success increases. Note though that some banks and finance firms will also possibly view the seller take back as potential debt - it varies among lenders. Sellers tend to secure their ' VTB' typically with a promissory note of some type. A typical rate range is in the 5-10% area.

When it comes to interest rates and financing costs associated with business acquisition loans those will vary depending on what source of capital you choose - traditional or a commercial alternative lender.

If there was a ' perfect world ' ( apparently it isn't )

scenario around the target company that firm would have minimal or no debt , a solid asset base, and demonstrable past , present and future cash flows. Those are key areas that will drive your financing cost... and success. When those criteria are proven your transaction is an excellent candidate for Canadian chartered bank financing - if they are missing other sources of finance will often have to be considered.

A good way to look at your financing challenge around purchasing a business is to think of it in ' layers'. More often than not it might include several of those layers of capital. Here it's important to have a strong sense of value of the assets and how cash flow will be generated for debt repayment and growth of the business.

Firms with little or no assets can still be financed if they have receivables, cash flows, or both. More often than not these are ' service based' firms. One can assume that unsecured cash flow loans are more challenging to acquire!

Many purchasers often forget the Government Small Business Loan as a source of finance. The one limitation is the maximum loan amt., which is 350k, clearly defining the size of the transaction that it can successfully complete. Nevertheless it’s a solid alternative.

What then are the key sources for financing options for your acquisition? A summary is:

Canadian chartered banks
Government Crown Corporation Bank
Govt Small Business Loan
Asset based lenders
Specialty Lenders - receivables /inventory/ asset bridge loan solutions
Cash Flow / Mezzanine finance solution

At the end of the day a well thought out financing strategy will help your chances of success in getting a solid deal structure in place. 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 identifying financing options for a merger or acquisition strategy.


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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS ACQUISITION FINANCING EXPERTISE


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 '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with start ups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.




Stan Prokop

Cash Flow Problems In Business Finance : Eliminate That Flying Blind Feeling

Looking For Some Positive Disruption In Your Working Capital Solution Needs ?

OVERVIEW – Information on solving business finance cash flow problems in Canadian business. Financing solutions for working capital is all about recognizing the problem and sourcing the right solution before it’s too late

Business finance and the challenges that come with financing your company can easily make the business owner/manager feel like he or she is ' flying blind’. So when it comes to cash flow problems business owners would welcome some ' positive disruption' in their finances. Luckily a number of solutions, as well as mgmt techniques can help. Let's dig in.

' All tied up ' is really a solid expression for the working capital/cash flow challenge - if only for the reason that your investment in inventory and receivables is in fact tied up on you balance sheet - as opposed to those funds being in your bank account

Top experts tell us that working capital performance varies greatly between SME (small / medium sized businesses) firms and larger corporations. It's interesting that one way that larger firms improve cash flow is by using the clout they have with clients to delay payables - which is a key factor in improving cash flow!

It's important you have a handle on a few tools that help you measure cash flow performance and needs, as well as identifying times that external financing is needed. That financing for your cash flow needs can come from a variety of traditional (Canadian chartered banks) and ' alternative ' sources. Those sources include:

Invoice Financing / Factoring/ Confidential Receivable Financing

Working capital term loans

Non Bank Asset Based Busines Lines of Revolving Credit from Commercial Finance Companies

Financing Refundable Tax Credits

P O / Contract / Sales Royalty Financing




While alternate forms of financing will always cost more they provide the capital you need to fuel your business.

Using Confidential Receivables Financing as an example a business can access 90% financing on its total receivables. With proper collection processes in place this puts cash in your bank today. The higher cost of financing can be significantly offset by using that cash to take vendor discounts or negotiate better pricing, as well as giving the owner/manager confidence that they can take on more business without the dreaded cash flow problem worries that come with growth.

Naturally every industry is different relative to cash needs - service businesses for example are less capital intensive and typical financing needs revolve around receivables only. Larger mfg firms need full blow business credit lines to cover off inventory and other asset needs. Leasing assets is a great way to offset the cash flow investment required to facilitate asset growth.

The bottom line? No matter whether your firm is a start up, SME rising, or larger corporation it's important to ensure you've got access to some ' positive disruption' in cash flow needs. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success , avoiding that flying blind feeling in running and growing your business.




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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS CASH FLOW FINANCING EXPERTISE


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 '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






Stan Prokop

Business Loans : Playing Catch Up With Capital Funding Solutions In Canada

To Do : Check out Business Loan Alternatives In Canada







OVERVIEW – Information on business loans an alternative financing solutions in Canada . Solving the quest for capital and needs for Canadian business owners from start up to high growth

Business loans and capital funding
for Canadian business is often ' top of mind ' for owners/financial managers in the SME sector. But what are the differences in types of loans, and, even more importantly, is a loan really the solution to your financing need. Let's dig in.

Borrowing for that ' loan always conjures up Canadian chartered banks as a possible solution to your financing needs. Business people tend, for some reason, to view the bank as their ' supermarket ' for financial needs .However banks are very reluctant to finance start up or newer businesses without collateral. Remember also that when it comes to equipment and other asset needs (i.e. technology, etc) equipment lease financing is a very solid alternative. No or minimal down payments and favorable amortizations make leasing the chosen provider for almost 80% of all businesses in North America.

Let's get back to that 'start up ' or early stage company need. One area the banks do come through on is the Government Small business guaranteed loan, which has Ottawa guaranteeing a large portion of your loan to Canadian banks who participate in the program. Each year billions are funded via this loan.

For businesses that invest in R&D thousands of firms take advantage of the SR&ED refundable tax credit program. Your SR&ED credit can also be monetized in the form of a bridge loan, eliminating the waiting period for your refund.

Another reason for popularity of this program is that it only finances two asset categories - equipment and leaseholds. Typically leasehold improvements are very hard to finance, ergo the popularity of the Small business loan. Although Cdn business tends to associate ' government ' with red tap and delay there is NO direct contact with the govt - its all done via your bank.

Many businesses are profitable, growing, and sometimes a combo of both. While owners/financial managers associate finance needs with a ' loan ' in reality they should be looking for a business line of credit that satisfies working capital and daily cash flow needs. It's important to know the difference between loans and asset monetization!

Alternative or ‘non bank’ lenders offer multiple solutions for ' loan ' needs. These financings include bridge loans, tax credit loans, and asset based business credit lines that work just like a bank facility - in fact they almost always are more generous when it comes to borrowing power. They also move... quickly! Additionally non bank and alternative lenders are open to taking on more risk, which of course means a higher cost of borrowing.

Looking to waste some time? You then must be one of those business owners /mgrs who focus on equity or venture capital. The hard reality is this type of financing is probably only suitable for a couple thousand businesses in Canada, if that , among the millions of small and medium sized businesses. However, if you're able to demonstrate hyper growth and unique products and services an equity investment is possible, although it’s important to remember debt in the form of loans is always cheaper than giving up ownership in your business.

Companies that have strong sales and purchase orders or contracts can also take advantage of PO Financing or Sales Royalty finance solutions. These monetize sales, and when you've generated receivables these can also be financed without the necessity of taking on debt via a ' loan '.

If you're looking to get properly ' caught up ' with business loans and the different types of capital and funding available to your business seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you take that one of your ' TO DO ' list!


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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS LOAN FINANCING EXPERTISE


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 '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






Stan Prokop

Business Finance Sources And Commercial Financing In Canada Canada : High Stakes And Higher Rewards

Business Financing In Canada : Let’s Play Ball

OVERVIEW – Information on business finance sources in Canada . Commercial financing has more baseball similarities than you might think !

Business finance sources in Canada are quite akin to some solid baseball analogies. While that might be missed by some consider the following -

Stepping up to bat

Getting to first base

Rounding Second

Home Plate = Success

Sliding into home plate

highlights the risk and yes, high rewards of financing achieved properly.

Commercial financing still presents a huge challenge to firms all the way from start up growth in the SME sector. Let's explore that analogy, allowing your company to ensure its one of the ' good players'. Let's dig in, or should we say ' let's play ball'

Unlike many sports that allow you to practice and get it right many poorly chosen business financing options can quickly take you down the wrong road. At the same time though preparing properly for the financing you need
is in act a key ingredient to business survival and success.

So... stepping up to bat ... If your firm is either in start up , or early revenue phases your ability to explore the right funding options is ' job 1 ". Options for start up rarely include talking on any form of debt, so typical initial financing includes:

Owner equity
Asset monetization - Receivable Financing / SR&ED Tax credit loans
PO/Contract financing

The one solid exception to ' debt financing' for Canadian start ups is the Government of Canada Guaranteed Small Business Loan - aka the ' SBL'. It is available without external collateral to owners/entrepreneurs who have reasonable personal credit history (i.e. Credit Bureau Score = 650+) and does a great job of financing new and used equipment needs, as well as leasehold improvements. Spoiler alert - rates and structures are very attractive and flexible

Trying to get to first base? As your firm gains business ' traction' you're in a position to take some real ' first steps ' in debt financing and asset monetization. These solutions include:

Commercial Bank Financing

Receivable Finance (Factoring, Confidential Receivable Financing)

Asset based 'on bank' business credit lines

Equipment Financing

Working Capital Term loans

Preparation for any of the above finance solutions should include up to date financial statements , aged summaries of a/r and a/p, and , equally as important, a realistic cash flow forecast. Note - Hockey stick unrealistic projections need not apply!

Rounding Second Base? This is always a critical time for business finance choices. Your firm might be in high growth mode, and may well want to entertain finance solutions such as Mezzanine cash flow finance. Alternately your firm may be experiencing severe challenges and may well have to address the need to change from traditional bank type financing to alternate lenders who are willing to take that extra risk. Here things like debt levels, CRA obligations, or the need to ' right size ' your business is key.

The home run scenario:

Canadian businesses that hit home runs have done their best and succeeded relative to financing challenges and mastering the unexpected problems along the way. Unfortunately business is never about just ' one swing of the bat ' for a home run, so if you want to ensure reaping the high rewards of a properly financed business at all times seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can ensure ' strike outs' are kept to a minimum and chances of business survival and success are maximized. Batter up!

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 100 Million $ of financing for Canadian corporations . Info /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 '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.





Stan Prokop