Balance Sheet Financing Ingredients: All Star Business Finance

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Who Else Wants Balance Sheet Financing ? !

OVERVIEW – Information on balance sheet financing in Canada. Business finance strategies revolve around understand who funding options are available on the balance sheet and info on who provides those solutions

Business financing in Canada will often require a hard look at balance sheet financing possibilities. That document is really a tool to uncover various financing possibilities. When the business owner/ financial mgr knows the power of unlocking and utilizing the balance sheet for finance alternatives a business advantage immediately emerges. Let's dig in.

Apparently it's not a perfect world so it's key to understand what will work and what doesn’t. By the way the ability to value your business in connection with a sale or merger also is a key benefit to understanding the balance sheet. You're then in a better position to benefit from ' all star ' financing alternatives from banks or non bank alternative lenders.

One key way to benefit from knowledge of the balance sheet is understanding that in numerous cases it has the ability to unlock hidden assets and collateral for financing purposes.

Some solid examples of this are utilizing SR&ED finance to monetize a SR ED receivable. The best option in our strategy of monetizing assets is the ability of your company to cash flow items that don't necessarily reflect their true value. That excess liquidation value is the key and is often part of a SALE LEASEBACK strategy. Here unencumbered fixed assets such as equipment or real estate are ' cash flowed ‘.

What does the balance sheet in fact signal to owner/mgr’s, and as importantly, lenders! In some cases that might be an element of risk but in our example it's simply a case of allowing you to understand what those ' BAY STREET ' folks

call ' capital structure'. Simply speaking that's the right amount of debt you can take on versus the amount of owner equity in the business.

Want a better understanding of how a commercial lender will look at your business? Certain basic liquidity ratios such as knowing your inventory turns, receivable turnover, etc allows you to improve your business and negotiate better financing.


It's always important though to understand that the true power of financial statements is the ability to also understand your income statement and how it interacts with the balance sheet.

Key financing solutions around balance sheet finance include:

A/R financing

Non bank asset based lines of credit

SR&ED Tax Credit Monetization

Sale Leaseback/ Equipment financing strategies

Term loans

Inventory Loans

If you're looking to benefit from financing strategies that are probably in use by your competitors seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your finance 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