Business Financing Advisor Needs? Worth Their Weight In Gold Corporate Financial Advisors

Why You Don’t Need A Business Financing Advisor : Or Do You?

OVERVIEW – Information on the services of a business financing advisor. What are the benefits of using corporate financing advisors to source operating and growth needs

Business financing advisor needs arise around the different timeframes your company finds itself in. The size of your firm and the 'stage of life' are key components of understanding the need (or lack of need) for funding and longer term growth.

Do you actually though need corporate financial advisory help? You categorically do not if you:

Understand all your finance options and can access all funding sources with your own expertise – you understand all sources of traditional and alternative business finance

Are profitable and cash flow positive and can grow at any rate you wish

Have all the working capital needs you require


Not in that category? Let's dig in!

The majority of business owners/financial mgrs we meet are focused on the challenges of improving their business from a finance and funding perspective. They are looking for the competitive edge.

The debate rages on as to whether the Great Recession of 2008-2009 still has lingering after effects on the ability to access capital. Closer to reality is the fact that bank credit requirements (in Canada) haven't changed. They requirements are clear: good financials, collateral, solid business plans and owner financial commitment.

When business can't for any reason access the bank capital they need they are confronted with how to expand their companies, refinance, and get a business credit line that makes sense. Many new ' niche' alternative financing sources are available to access capital.

Enter, stage left, the business financing advisor. He or she typically has a background in both SME COMMERCIAL FINANCE
needs as well as having worked with, or for larger firms who seem to master finance requirements with resources often not available to small or mid market firms.

More often than not your needs in the start up to SME stage are focused on specific transactions and needs. The goal? Improve your chances of success and timing in business finance needs! Those needs are in the areas of:

Bank credit lines

Asset based lines of credit

Current Asset Financing ( a/r , inventory, tax credits)

Real estate financing

Acquistion finance

Equipment Financing

Sale leasebacks/bridge loans

Purchase Order Financing

Sales/Royalty Finance



The requirements you need to assess a good business financing advisor? They are experience, credibility, expertise, track record, and cost.


So, do you need a business corporate finance advisor? It's your call. Tuition is very costly in the school of experience when it comes to making the wrong choices. Big business today is big on ' outsourcing’. SME firms should consider outsourcing their financing needs, utilizing a corporate financial outsider to help them access opportunities and advantages in the new landscape of business financing 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 100 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING ADVISORY 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

Financing Strategy 101: Get One

Have You ‘ Merkeled’ Your Business Financing Options & Strategies

OVERVIEW – Information on Canadian business finance solutions that are most successful when a proper financing strategy complete with proper option and solution analysis is undertaken

A financing strategy in Canadian business is a requirement in ensuring proper business finance options and strategies are examined, understood, and implemented. Unfortunately many owners/mgrs with SME COMMERCIAL FINANCE needs have ' merkeled' the situation.

Merkeled? That's what the leadership of German Chancellor Angele Merkels' leadership style has been called on domestic issues - a ‘do nothing, makes no decisions....’ style. Our recommendation on a strategy for a financing process? Get one! Let's dig in.

Larger successful companies get that way because they ' allocate capital' and financing properly. Smaller and medium sized companies can adopt the same processes and strategy. - If they don't understand their financing options and needs the ability to be ' damaged' in some way is highly possible.

Typically most businesses can be categorized as ' start up’... ‘growing’ and ' mature'. The business owners/mgrs need to known when they need financing and why is critical. Whether its experience or skills in finance or simply not having the time an outside advisor can add real value. That might be your accountant, banker, or a Canadian business financing specialist/expert.

It's critical to understand how the basic financing process works when you're looking to take on debt or monetize assets you already own for cash flow or working capital. (Equity capital is a whole other kettle of fish). Key issues are timing and the ability to keep your business running while you seek financing.

Many clients we meet have serious cash flow problems which alters the type of strategy that is required to guarantee immediate and longer term success. The positive news around Canadian business financing options is that they are in fact numerous and often no one single method of financing can address completely all the needs for growth, operations, or even buying and acquiring another business.

Looking for an immediate ' short list' of financing options for your business. They will typically include one or most often a mix of the following:

Bank facilities

A/R financing

Inventory loans

Asset based business lines of credit (they combine current assets such as receivables, inventory and equipment into one borrowing facility that fluctuates with your needs

SR&ED refundable tax credit loans

Purchase Order/Contract financing

Commercial mortgages

Sale leaseback/bridge loans on existing assets

Unsecured cash flow loans

Working Capital term loans

Sales/Royalty finance

If you're concerned that you've ' Merkeled' your financing strategy to run and grow your business 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 capital and cash flow 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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCE 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




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 Credit Lines In Canada : How To Assess What Type Of Facility Works For Your Company

Feeling ‘Questioningly’ About Business Lines Of Credit?

OVERVIEW – Information on how business credit lines can be accessed by Canadian companies seeking revolving lines of credit and what types of facilities should be considered

Business credit lines in Canada often have business owners and financial managers feeling ' QUESTIONINGLY’. We're told that use of that term leaves issues ' open to controversy' and demands information and clarification. Which type (there are only 2!) of facility works for you and are is your firm eligible for one or both? Let's dig in.

As the debate rages around the ability of companies to access SME COMMERCIAL FINANCE needs the one thing that is clear is that the commercial lending landscape has changed. Many alternatives available to business are often misunderstood or simply not known to the owner/mgmt team. Do Canadian firms realize that probably way less than 1% of firms looking for VC/Private Equity/Angel funding ever succeed. We often doubt it.

That brings us back to... ‘CHOICES’. Only 2 real solutions are available regarding the need for a revolving credit facility. Those solutions:

Canadian Chartered banks

Commercial Finance Companies offering Asset Based Credit Lines


Banks enjoy ' top of mind ' when it comes to source of financing - it sure helps when Canadian banks enjoy the reputation of having the best capitalization and financial strength in the world. Working with the right banker (notice we said banker, not bank) not only gives you access to credit lines but also term loans, leases, etc) that’s the good news.

The issue? The stability of the banking system requires that loans be solidly backed up by collateral, cash flow, personal guarantees, and the banks insistence that certain... shall we call them ' relationships' on your balance sheet stay intact. Any one of those can knock your firm out and have your company classified as ' unbankable’

The problem that our clients have is that they are often using cash and not producing it! That's why our second solution, the asset based line of credit... aka the ' ABL' is a perfect alternative for business credit line needs.

Instead of focusing on ratios and formulas for cash flow coverage this type of facility focuses on your business assets. Your receivables, inventory and even fixed assets (yes your fixed assets!) are combined into one borrowing facility that allows you to draw on funds as needed. Surprisingly the borrowing leverage on these 3 different asset accounts is even more generous than bank lines - although they almost always come at a higher borrowing cost

If you're looking for clarification on ' QUESTIONINGLY ' when it comes to business credit lines and borrowing alternatives to your firm 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 borrowing 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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS CREDIT LINE 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

Financing Sales : Time Sensitive Methods To The Right Business Loans To Finance Your Company

Breaking News : Financing Sales Challenges Explained Once And For All

OVERVIEW – Information on financing sales revenue challenges for Canadian companies. Business loans and asset finance strategies allow you to ‘ do more’

Financing sales growth is ' time sensitive ' if only for the reason that the majority of business owners/mgrs want to do that now - not at some point down the road. What type of business loans and asset monetizing strategies work best when your focus is ' growth - faster the better!' Right or wrong very slow or nonexistent growth often has companies stagnating. The fix? Let's dig in.

The ability to finance revenue growth is in truth a two edged sword. That's also where business financing challenges come in. And the options you have basically come down to three choices -

New owner equity - usually difficult, costly, and undesirable

Taking on Debt - has to be the right debt

Monetizing your assets - a preferred strategy if done properly

Larger more sophisticated companies have already figured out the magic formula. They call that ' sustainable growth models ' and are constantly looking for the right amount of leverage they can take on. Those formulas measure profits, how assets are turned over, and what amount of business debt won't topple the firm. Those larger companies also want to take out cash regularly in the form of paying out to owners or shareholders.

Those same tools are also available of course to businesses seeking SME COMMERCIAL FINANCE options. These smaller firms toil daily in the real world to grow sales, stay in business, and pay bills. They are more often than not also looking for outside financing to manage those 3 challenges.

Clients we meet searching for sales financing strategies come down basically into two categories - ' bankable'... or ' unbankable'.

Which one is your firm? If your firm is bankable it's critical you can demonstrate profits, acceptable debt rations, outside collateral and 'reasonable' high growth.

Thousands of firms in the small/ medium sector of Canada's economy find themselves ' unbankable' to the extent they have no bank financing, or limited. Many owners/managers feel that the big corporations seem to be favorited. Top experts in one study said that 1/3 of all SME businesses don't have the financing they need - 65% of owners/mgrs saying financing new sales is ' difficult'.

The solution? More often than not its ' alternative lending' - a broad category of the new Canadian business financing landscape that covers many niche players offering unique forms of financing.

Those financing solutions? They include:

A/R financing credit lines

Asset based non bank full credit lines (sales growth generates receivables and inventories which can be easily financed)

SR&ED tax credit financing

Leaseback loans on existing owned assets

Inventory Finance

Purchase Order Financing

Sales/Royalty Financing

Govt guaranteed loan program

The challenge becomes knowing how these solutions work and identifying which one is for your firm.

Because many owners/mgrs in the Canadian business financing marketplace aren’t familiar with all these options it's often best to seek the services of a trusted, credible and experienced Canadian business financing advisor who can assist you with ' engineering ' the right solution to finance your firms growth .


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


7 PARK AVENUE FINANCIAL = CANADIAN SALES FINANCING BUSINESS LOAN 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

Borrow Against SRED Claims - Use (SR and ED) Tax Credits and Finance For Cash Flow!

In the world of finance more often than not today is better than tomorrow, and when it comes to borrowing against your SRED claims your ability to monetize SRED tax credits for working capital is the ultimate win win situation. Here is why!

The Canadian governments Scientific Research and Experimental Development (aka 'SRED', 'sr&ed') program provides in the area of 4 Billion dollars per annum to Canadian businesses in the form of a non repayable tax credit cheque. The only reason you wouldn't get your cheque is if you had corporate tax arrears, and that's still a good thing we think, because at lease then the government offsets your tax arrears with your credit. (By the way, we don't recommend tax arrears as a financing strategy!)

Your company is using the program for all the right reasons, i.e. improving products and services, staying competitive, etc. But many firms either haven't heard of or lose sight of the fact that the SRED tax credits can be even more 'accessible ' if you will, when you borrow or finance your claim.

Turning your SREd tax credits into valuable cash flow and working capital moves you one step ahead of your competitors we have always maintained to clients. Why. It's simply the old finance adage that a dollar today is worth more than a dollar tomorrow, as it can be re invested in your operations for a variety of reasons.

A typical question we get from clients considering the financing of a SRED claim is ' what are we allowed to use the funds for?'. And of coruse they love the answer, which is simply for any general company purpose you choose - typically that becomes reduction of working capital, clearing up or lowering payables, and just general day to day operations.

Financing your SRED claims in essence ' invigorates your working capital.

So who finances these claims and how would be describe the process. Is it complicated; easy, how long does it take? Those are the typical client questions in consideration of SRED finance.

We can make a broad pretty safe statement that banks in Canada don't finance sr&Ed claims for your tax credits. If they do, it is in conjunction with other security and arrangements you have with your bank. Most firms we talk to either have approached their bank, been declined, or simply have not been aware that sr Ed credits can be financeable.

We recommend you speak to a trusted, experienced and credible Canadian business financing advisor who is knowledgable in the area of SRED tax credit finance. That will shorten your process, maximize the amount you can receive under you claim, and in almost all cases simply reduce the time and effort you might normally expend to investigate SRED financing.

The reality is that a SRED finance expert can usually originate a full financing of your claim in a manner of a couple weeks, allowing for simple basics such as an application, review of your actual SRED technical filing, etc.

So, can you borrow against SRED claims? The answer is of course yes. Should you? That's your decision, but if you need cash flow and working capital today from a non repayable government tax credit that you certainly know what to do now. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your tax credit 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 100 Million $ of financing for Canadian corporations


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.





Article Source: http://EzineArticles.com/5910297

Are Working Capital Loans What Your Company Really Needs? What Type Of Finance Company Can Help?

Information on working capital and cash flow solutions. Loans might not be your only alternative when looking for a finance company to increase your access to liquidity for growth and survival









The shock has probably worn off by now.

We're referring of course to the business owner and financial managers realization that sales don't equal cash flow and that your management of working capital might just be your key to short and long term survival.

So what type of finance company or institution can help you in the access to liquidity? The reality is that every industry needs a different level of working capital. That relationship of your assets to your turnover to your cash on hand is what is going to make the final call on what type of loans you might need for your cash flow management solution.

And we will add that you might find that ' loans' or bringing on additional debt to your balance sheet is not only the wrong solution, but you have alternative non loan solutions!

The reason you are looking at your working capital situation hinges probably on two areas, your firm is growing too quickly, or you have asset management challenges or problems with inventory and receivables. So hopefully you can now see that what working capital management is all about comes down to matching the financing you need to the assets and equity you have on your balance sheet. As your business and profits grow the owner equity component grows also

So are loans the solutions to your cash flow challenge (or crisis?!). Sometimes, but definitely not all the time. The long term solution to a cash flow management solution might in fact be a working capital term loan, in effect injecting long term capital into your business. If you can qualify for this loan, which is more often than not unsecured, it certainly is an option. Larger loans of this nature are called subordinated debt, but cash flow term loans are available for almost all firms - generally the minimum being 50k, but as we noted, going to several million dollars depending on the size of your firm.

But why would you borrow externally and bring debt onto your balance sheet when the solution is inside your business, not outside? Clients are often surprised when they find out that two other solutions, and not loans, are possible.

We're talking about asset based lines of credit, which are generally non bank in nature, meaning they are offered by private finance firms. Rates on such facilities can be competitive to bank rates, but more often than not come at a premium. However your ability to, in many cases, double your working capital liquidity can significantly increase profits and sales. Just think about it, if you can double sales, keep your overhead costs relatively fixed, the additional profits you generate can easily cover your new increased financing costs.

The other solution we will mention is the sales of receivables. This type of financing brings zero new debt on to your balance sheet, improves your cash position, and provides immediate cash flow for growth. Perceived as expensive and non traditional it is gaining traction with Canadian business every day. In effect it is the trade off you have between growth and survival and additional financing cost, of a non loans nature.

In summary, working capital loans can come from external finance company sources. Alternatively you can become your own finance company by managing and monetizing your assets in a variety of ways. Speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success to determine which solutions work best for your firm.


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 100 Million $ of financing for Canadian corporations

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.











Article Source: http://EzineArticles.com/6025309

Expansion Financing In Canada : The Business Capital Funding Challenge

Panic At The Disco! Business Capital Finance Options To The Rescue

OVERVIEW – Information on expansion financing options in Canada . Business capital funding comes from the right mix of new debt, financing existing assets, or the expensive alternative – sale of ownership

Business capital funding and expansion financing raises many questions for Canadian business owners and financial managers. The whole challenge of funding your business sometimes creates that ' Panic at the Disco ' feeling. Let's examine solutions and strategies. Let's dig in.

The need for expansion financing should be raising some specific questions for owners/mgrs. These include how much funding is needed to grow the business, and, as importantly, at what rate of growth. In some cases your company might be focused on buying another firm /competitor.

The other larger question that looms involves whether you are prepared to borrow, monetize existing assets, or actually sell some equity in your business - equity being the most expensive form of capital.

That equity comes from existing owners, friends and family, and external sources such as going public. Many firms in the SME area look at avenues such as capital pools and reverse takeovers of shell companies - often having disastrous consequences if not properly thought out/planned. And of course debt is acceptable - if it's at the right rate/terms and level.

It's always interesting to watch companies go through their different stages, from start... to growth and then the ' mature' stage where capital needs are less to none. Oh to be ' mature'!

There is a strong alternative for growth expansion that should always be looked at - Asset collateralization. This raises internal funds via existing assets.

Solutions in this area include:

Asset based lines of credit

Bridge Loans via existing collateral - these are often structured as ' interest only ' payments

SR&ED Tax credit financing

Sale Leaseback

Royalty Finance

Receivables factoring



Those larger ' mature' companies we talked about look at ' cash flow coverage' as to how they manage and take on new debt. Their ability to have cash flow to cover the debt gives them ' investment grade' or ' non investment grade ' coverage. While private companies are rarely rated in this manner it's time well spend to cover cash flow forecasts.

The Bottom line:

Understand your business cash flow prospects

Understand the types of debt you're willing and able to take on

Always consider the downside/worst case

Focus on a right mix of debt, equity, or asset monetization


Avoid our ' panic at the disco ‘analogy. 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 capital expansion 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 100 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN EXPANSION FINANCING & FUNDING 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