Asset Based Lending In Canada: Constructing The Right Business Loans Via Commercial Finance Companies

5 Things You Didn’t Know About Asset Based Lending in Canada

OVERVIEW – Information on asset based lending in Canada. Business loans from commercial finance companies are a solid potential substitute for bank operating loans – Here is how and why

Asset based lending in Canada – We’re discussing 5 things you didn’t know about ‘ABL Financing ‘in Canada. Let's dig in.



1. What is Asset Based Lending?

2. What does it Cost

3. How does it Work

4. For what type of firm is it perfect for

5. How to get such financing!

Asset based lending and financing for your business is simply the utilization of your business assets for maximum business financing based on your business needs. Business owners and financial managers should understand that this is a replacement or specific financing as an alternative to either traditional financing ( via a Canadian chartered bank ) or to firm who are unable to get financing that might otherwise be called traditional .

Firms in that category might include start up operations, or firms that have had business challenges. ABL financing is the utilization of your current, and in some cases your long term business assets for the leveraging and monetization of working capital and cash flow. The current assets are almost always accounts receivable and inventory, and longer term assets in some cases might include equipment or real estate that your firm may own – example an owner occupied premises.

All assets must be unencumbered, that is to say that they should not have any liens or registrations against them, otherwise it would be difficult, if not impossible, to structured an asset based loan. Typically the asset based lender pays out any existing creditors and takes a charge against the assets being financed.

Does asset based financing differ in cost to traditional financing. We have to use your lawyer’s typical answer (it depends) but the reality is that in Canada the costs of asset based lending are all over the map. In some cases they are actually lower than chartered bank financing; in most cases they are more costly. When we indicated to clients that a financing of this type is more costly we point to clients that they have to balance any additional costs against what they are receiving. And what they are receiving quite often is simply the maximum working capital they need based on their asset and growth needs .That can rarely be achieved these days in the current challenging economic crunch .

So how does ABL financing work. A few simple key points will help you better understand how this type of financing might work for your firm on a day to day basis, and, as importantly, for long term growth. They ‘key word’ here is ‘Asset’! ABL financing focuses on the real true market value of your assets. Many other traditional types of financing, i.e. a bank line of operating credit, etc, is in fact focused on many other metrics such as the lenders perception of what industry you are in, and typical financial ratios and metrics such as cash flow coverage analysis, debt to worth ratios, etc,etc,etc!

Asset based lending puts those items aside. Using specialized industry experience, analysis, and in some cases appraisal of your assets you are provided with the maximum amount of capital those asset categories can achieve. So, as an example if you have 500,000.00 in account receivable you can borrow $500,000.00. That typically is not how traditional financing works. We often point out quite frankly that asset based lending is in fact becoming a traditional financing method for Canadian business of all size.

So who is this type of financing for? The answer becomes very simple. It is for industries of all types in Canada – Typical transaction on the small side are $250,000.00 and deal sizes are in the multi millions when it comes to large facilities. In some cases sky is the limit and some of Canada’s largest corporations have adopted this financing method. Asset based lender are specialist in understanding what your business is about, what are its cash needs and cyclicality, and what type of optimal structure works for your firm .

How does your firm investigate asset based lending on the Canadian business scene? Since the financing is rarely front page mainstream news then it is highly recommended that you work with a trusted, credible and experienced Canadian business Financing Advisor with a track record of success. The Canadian landscape is cluttered with small firms, mega corporations out of the U.S., as well as boutique divisions of other well known institutions you know of but were not aware this type of financing was being offered to Canadian business.

So what’s out bottom line – its simply be informed, work with an expert, understand your cash needs on an immediate and long term basis, and consider structuring such a facility for your growth and benefit .



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

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

Funding Businesses In Canada : The Right Business Financing & Loans For Your Company

The Problems With Business Financing : Will You Secure Yours?

OVERVIEW – Information on funding businesses in Canada. Business financing requirements differ both in size and type of traditional and alternative finance loans and asset monetization solutions and strategies

Funding businesses in Canada often revolves around one question - what is the ' right ' business financing for your company and what loans and other solutions make the most sense and are most applicable. Once you've found that potential financing solution one other question looms - Can you secure that financing! Let's dig in.

Having the right type of financing in places allows owners/mgrs/entrepreneurs to focus on what always seems to be one of their main goals - growing sales revenues.

The ability to fund your company and accelerate what is known as the ' cash conversion cycle ' allows you to control the amount of funding you need. If you can limit the amount of capital your business requires or consumes that obviously allows you to not have to consider outside equity, and in most cases simply control your borrowing costs and amounts. That's a good thing.

What then are the key financial borrowing resources you can rely on to fund your business - The main ones include:

A/R Financing

Inventory loans

Chartered bank revolving lines of credit/ term loans

Equipment Financing/ Sale leasebacks

Commercial mortgages

Royalty Financing

PO/Contract Financing

Mezzanine Finance/ Unsecured Cash flow loans

Non bank asset based credit lines

The one category that always deserves and gets a lot of attention in your business is the whole working capital conundrum. The ability to manage, and finance your key most ' liquid ' resources (cash, inventory/receivables) makes or breaks a business.

While the typical ' go to ' is the bank thousands of businesses find they don't qualify for the credit quality that banks demand. That's when alternative financing sources must be considered. If you can't fund your daily operating needs all the way through to collecting customer invoices a cash flow crisis of some sorts looms. Even managing payables with a total focus on maintaining vendor relationships while delaying cash outflows to the extent you can becomes a major win or lose scenario for business owners/mgrs.

The reality is that every business and every industry requires some form of internal or external financing. Companies that are larger and fast growing differ in needs from startups or companies just starting to get revenue traction. In some cases once in a lifetime opportunities to either secure a new contract or even acquire a competitor present themselves.

If you're focused on the ' right ' solution for financing your company and the goal is to secure that 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 in your needs.





Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

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 Cash Flow Loans In Canada : Smart Money Operating Financing Solutions!

Finding Business Financing Solutions Slow & Painful? Listen Up!

OVERVIEW – Information on operating financing needs and solutions for Canadian companies. Business cash flow loans and alternatives are key to long term success

Operating financing for Canadian businesses often plays ' hard to get ‘! So when it comes to business cash flow loans how to owners, mgrs and entrepreneurs beat that ' slow and painful' feeling? Let's dig in.

No one seems to dispute the need for cash flow as being absolutely vital for health of a business. We're the first to admit that great sales and great profits (paper profits?) are great and desirable, but the lack of working capital or access to future capital is also key to your long term business future.

Top experts tell us that a solid majority of businesses in Canada say it's tough to access cash flow solutions and capital. They also say it's tougher to collect money from their customers more and more!

In the short (not the long run) it's perfectly possible for your company to survive as you hit hard cash flow bumps in the road, often called ' bulge needs '. That's partly because the owner/mgr is still relatively in control - he or she can juggle payables, adjust non fixed cost, etc. However, it’s that long run you lose a lot of control and financing options available as conditions deteriorate or start to look permanent.

Another great irony of business is also the fact that even if your business is profitable it can run out of cash.

The whole concept of cash ' coming in' and being controllable seems relatively simple. At the heart of the matter is the simple premise that you're taking in more cash on a regular basis than you're spending. That whole concept is essentially the 'liquidity' in your business, sometimes becoming ' lack thereof'!

Few businesses that are new, emerging, or in the SME COMMERCIAL area in general have a problem with too much cash these days. In fact their issues revolve around accessing credit. It's that access to credit and liquidity that in fact allows you to continue to increase sales.

The hard reality of business financing in Canada today is that borrowing also becomes more expensive when your company no longer has access to bank credit, so it's at this time that finding the ' right ' solution to your business is key.

Part of the solution to the Canadian business finance conundrum is knowing how much you need to borrow, and whether that comes in the form of taking on more debt, or perhaps the better solution of monetizing existing assets. Simple cash flow planning and forecasting can help you identify the right solution for your business. That ' what if' becomes more important than ever.

And those solutions to operating financing nirvana? They include:

A/R Financing/Factoring/Confidential Receivable Financing

Inventory loans

SR&ED Tax credit monetization/PO and Contract Financing

PO Finance

Sale Leasebacks

Unsecured cash flow loans

Non bank asset based lines of credit


It's also safe to say that if your business is profitable and you are managing assets properly you will be generating a little more cash all the time. That then limits the need to over borrow. If profits aren't currently in your picture you of course need a solid turnaround plan.

Want to eliminate that often ' slow and painful ' journey into business finance alternatives? Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you on the ' smart money ' path.




Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com


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 Needs? Perfecting Your Working Capital & Cash Flow Financing Requirements

Looking For A Backup Plan In Business Finance?

OVERVIEW – Information on business finance solutions in Canada . Working capital and cash flow financing needs will almost always require a backup plan in order to perfect the financing you need to grow your business. Here is why and what solutions are available

Business finance solutions for your company often require a ' backup plan'. Why? Simply because when it comes to working capital and cash flow financing needs there is almost never enough. How then does the owner/mgr/entrepreneur perfect those requirements? Let's dig in.

Similar to consumer debt it should be no secret that there’s good 'debt' and ' bad ' debt. In your company there is only so much equity in the business, and in many cases it's either impractical or impossible to acquire more debt given that the financing interest can't be supported. That's the whole concept of successfully understanding ' leverage ' - i.e. knowing how much borrowing your company can take on... before failing.

The good news about the ' right' financing solutions for your business is that they allow you to grow sales and profits outside of your current capital base. It's safe to say that companies that can both grow, and control their growth are the perfect target for all sorts of business finance solutions that make sense.

What are some of those financial solutions? They include:

A/R Financing
Inventory Loans
Bank revolving credit facilities
Non bank asset based lines of credit
PO Financing
Royalty finance
Unsecured cash flow loans
Equipment Financing/sale leasebacks
Commercial mortgages

Many different companies require financing that's most suited to their industry. Capital intensive firms that require large amounts of asset financing are different than service companies who have a small or no asset base.

That whole issue of debt versus equity is also a key part of the whole business banking equation in Canada. Companies that can't meet the typical debt to equity ratios that banks insist on are forced to consider alternative forms of financing - the good news being that those are more abundant and creative every day.

While our Canadian banks are reluctant to let your debt to equity ratios go the wrong way alternative lenders focus on assets and asset monetization. A good example? That would be the Asset based line of credit, commonly called ' ABL’ in the industry. That credit facility takes your inventory, receivables, as well as fixed assets and combines those three asset categories together into one ' borrowing base ‘, based on their real values . Almost 99% of the time this type of facility can easily double your current bank credit lines, or provide full cash flow financing when you have no operating loan .

Does your business have a backup plan and clear line of sight

on business finance and working capital and cash flow financing solutions? If not consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can help you perfect those arrangements.




Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

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 Financing In Canada : Putting Some Chemistry Into Your Loan And Cash Flow Needs

Looking For Some Business Financing Magic?

OVERVIEW – Information on business financing in Canada. Various types of cash flow and loan needs can work together to provide you with the finance solutions you need to run a business successfully

Business financing in Canada shouldn’t rely on any sort of ' magic ' when it comes to getting the right type of loan or cash flow solution for your business.










In fact when things work well you're more likely to rely on some real ' chemistry'

among the right type of financing solutions for your balance sheet. That chemistry, or interaction of various parts of your balance sheet that will deliver on that ' magic' that business owners/financial mgrs are looking for. Let's dig in.

In many cases financial solutions you are looking for don't even require major increases in sales or expense reductions. The right loan and asset monetization strategy simply accelerates the cash you need to run your business. It's actually a basic business goal - more cash / less time!

Business owners and financial mgrs are constantly challenged on some finance basics. They include managing the assets you already own, ensuring they are properly financed, knowing what options are available for borrowing, and recognizing the benefits that comes with either equity or debt financing, both of which have their own merits. Today we're focusing solely on debt financing and monetizing you assets and sales.

Those businesses that manage their cash flow and working capital better than others are able to show higher levels of cash and hopefully profits!

Short term working capital needs revolve around financing your current assets. Strategies here include:

Bank lines of revolving credit
Non bank asset based credit lines
A/R Financing/factoring
Inventory Loans
Tax Credit Loans (SR&ED)
Purchase Order/Contract Financing
Royalty Finance


Until business owners/mgrs understand how much they need to finance daily operations they will never be successful in cash flow mgmt. And managing those assets such as A/R and inventory in a better fashion will always lower financing costs. Given that most businesses buy on commercial credit terms even managing payables more efficiently leads to better cash flow.

So how much financing do you in fact need for your company? If your business is getting ' larger' and growing ' faster’ you should very much be focusing on financial solutions that fill the gap.

Longer term financing needs can be addressed via other solutions. They include:

Equipment Financing
Sale Leasebacks
Working capital/cash flow term loans (That becomes permanent working capital)

If you recognize the need to focus on the right type of chemistry, and dare we say financial ' magic ' in 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 loan and cash flow needs.


Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com


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

Operating Loan Search ? Boom Not Bust Business Credit Line Strategies

There Ain’t Room Enough In This Town For 2 Kinds Of Business Credit Lines ! Or Is There?

OVERVIEW – Information on different solutions for a business Credit Line. Are You Aware of Your Operating Loan Needs and Options?

Business credit line arrangements are often sought by companies that are new, established, or growing (that pretty well covers all the scenarios!!) their businesses. The operating loan is often the heart of a company's financial arrangements yet many business owners/financial mgrs don't really understand all their options in this area of Canadian business financing.

And yes, there are two kinds of credit line arrangements your company can undertake, and time has proven there's room enough in town for both of them, but which suits your firm. Let's dig in.

About those two arrangements. There is of course traditional Canadian bank operating lines of credit. These come with typically a maximum ' credit limit' that you can borrow up to based on historical benchmarks of cash flow, sales levels, and quality of receivables and inventory. Banks of course prefer receivables to inventory as they are more liquid and manageable - and quite frankly they aren't in a position to do much with inventory if something goes awry in your business arrangement with the bank.

The other alternative, gaining more traction everyday in Canada is the Asset Based Credit Line. These facilities are offered by commercial finance companies and mirror bank arrangements really only when it comes to how you access funds and how the facility revolves. In almost all other cases differences are a bit more dramatic.

The solid advantage of an operating loan is the fact that you are only using credit when you need to - the facility revolves and interest is only charged on the funds you are using at any given time. Banks tend to structure these facilities as ' demand loans' which means they can be ' called' at any time. Trust us that's not a call you will always want to take!

To effectively access an operating loans of this type you need to ensure you have some key basics nailed down. They include perhaps a business plan or executive summary, but always your historical as well as up to date financials and a cash flow forecast. While asset based line of credit lenders don't place over emphasis on personal credit of owner’s banks insist that the owner demonstrate personal credit worthiness and external assets as backup collateral.

Asset based lenders focus on the hard and liquid assets of your business, and typically lend significantly more than the bank - offering up of course more liquidity, but it's important to note that that always comes at a higher cost of borrowing than the bank. Typical margins on asset based credit lines tend to be 90% for receivables, and a pre set % for your inventory based on a hard look at the type of inventory your business carries.

Asset credit lines also differ substantially from banks in that they will almost always lend against your fixed assets as a part of your borrowing line. That's a key difference, especially in companies that are capital intensive.

If you're looking to ensure your business credit line search is a boom and not a bust 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 operating loan needs.



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com


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 Financing In Canada: Your Secret Code To Cash Flow Finance & Funding Assets

Looking For A Reality Check On Business Financing Success?

OVERVIEW – Information on business financing in Canada. Cash flow financing and funding assets requires a clear knowledge of market solutions that fit your business, industry, and financial model

Business financing in Canada requires, more than ever, some ' financial intelligence'

on behalf of the owner/financial mgr/entrepreneur. The ability to know how you are funding assets in the short and long term is what cash flow finance is all about. And it might just be time for a reality check! Let's dig in.

Naturally the more you understand your business financial position and the options available to finance your company positions you for success. How you use your business financial intelligence comes from understanding your numbers. Looking for a ‘ secret code ‘ – In fact top experts tell us that those companies that use their business financial intelligence properly when it comes to financing their business stand head and shoulders above their competitors

Financing your company comes from understanding what your real profit is, what the assets on your balance sheet are truly valued ( and therefore financeable ) at, and how those two parts of your business always come back to ... CASH FLOW!

Warren Buffett has another term for all that - He calls it ' owner earnings' and says it’s combo of operating your business on a daily basis , investing in new assets, and ensuring owners also have the ability to properly take money out of the business.

It's easy for most business owners to understand that they need cash to pay bills, buy new equipment and invest in the future - in some cases with real R&D expenses.

When a business is growing it's very easy to focus less on cash flow - when early warning signs start to emerge around cash flow and funding problems it’s time to consider all your business finance alternatives .

Those alternatives? They include

A/R Financing

Inventory Finance

SR&ED Tax Credit Loans (R&D refunds)

Non Bank Asset based lines of credit

Equipment Finance/ Sale Leasebacks

Purchase Order Finance

Unsecured Cash flow loans

Those solutions are of course the alternative to Canadian chartered bank solutions. While alternative financial solutions we've mentioned are typically more expensive they are much cheaper than looking for new owner equity. While the debate seems eternal on whether Canadian banks support the SME sector in Canada it's comforting to know there are in fact more new options than ever before.

Business owners/mgrs that run their business soundly around things like accounts receivable turnover, inventory turns, and proper financing of new assets will always have the upper hand in negotiating new finance solutions. It's also easier because when things head in the wrong direction new forms of financing are more easily negotiable.

If you're looking for a true reality check on your business financing options in Canada 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 financing needs.



Stan Prokop - founder of 7 Park Avenue Financial –
http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com


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