Commercial Equipment Loans : Financing Tips That Work Like A Charm

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Secrets You Didn't Know About commercial equipment loans

When it comes to commercial loans we're quite sure our clients agree ' good enough' is not the best attitude to take when acquiring new assets or focusing on used equipment financing. In today's competitive arena its import to acquire the best equipment financing rates and terms.

The ability of Canadian firms to acquire new assets has typically always been a challenges for small and medium enterprises in Canada. Both the pricing as well as how you finance assets on your balance sheets are key points in business finance.

80% of Canadian businesses do it right . Stats show that they employ solid equipment lease strategies as part of their overall asset strategy.

In fact the leasing marketplace is very competitive these days, and that's a good thing for Canadian business owners and financial managers. Knowing how you can save money and avoid costly mistakes is key to running and growing your business. Mistakes in poor asset acquisition can be costly.

Let's look at the example of a company that wants to acquire computer equipment and software, a 'must' for pretty well every business these days. Knowing what term to select and what type of finance lease to utilize will ultimately  reflect how much you pay both on a monthly basis and in the long term . Don't forget - computers depreciate !

Leasing companies have ' credit boxes '. That is the way that they approve your transaction when it comes to size, pricing, additional collateral, down payments, admin fees, etc. Understanding the ' credit box' is key to asset financing success.

Don't let the  benefits  of leasing financing in Canada escape your firm. Billions of assets are finance annually - your competitors finance their assets.

Commercial Equipment Loans: It's Not as Difficult as You Think

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success.  We knew you wouldn't settle for second best !







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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Click Here For 7 PARK AVENUE FINANCIAL website !

A Quick Guide To The Government Business Loan In Canada

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Government Business Loans Solve Business Credit Challenges

How do government business loans work ? If we only had the proverbial nickel every time a 7 Park Avenue Financial client asked us that questions. You guessed it.. we'd be rich!

Due to the fact that both the government and the banks are involved in the government business loan process business owners and entrepreneurs can be forgiven for not understanding how this business financing scheme ( hint - it's not a ' scheme; !) works.

Sometimes the frustration with timing and the mechanics of the loan relate simply to the fact that business folks don't understand how the program works - and it's not complicated.

So let's be clear - the Canadian government small business loan ( some folks call it the ' SBL ' ) is a program that has been in existence for many years and is administered by Industry Canada. It's a great way to acquire long term and often start up capital for a business .

The three categories of assets you can finance are:

• Equipment

• Leaseholds

• Real Estate

In some cases the loan cap is one million dollars, we typically see our clients borrowing in the 200-350k range. So that's not necessarily small.

Key Point - many franchises are financed under the program! Govt loans can be used to buy a business - franchise or otherwise.

The program requires a minimum 10 per cent owner investment into the loan amount. The government guarantees the rest to the bank,

WHAT DO YOU NEED TO GET A GOVERNMENT LOAN APPROVED ?

• A business plan/cash flow

• An equipment list

• Good personal credit of the applicant - typically a 650 credit bureau score

Looking for a way to ' fast track' your loan?  Seek out and speak to a

trusted, credible and experienced Canadian business financing advisor with a track record of success.





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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com




Click Here For 7 PARK AVENUE FINANCIAL website!



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 .

' 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.

How to Explain Receivables Financing Vs Factoring to Your Boss

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How to Determine Best Receivable Finance Solution

As a financial manager can you answer the following question - Explain receivable financing vs factoring ?

Thousands of firms in Canada are currently using the factor finance solution. Many consider this form of financing, but often they are also not really sure as to the rate they are paying and how that rate is calculated . Hint - it's not an interest rate !

Unlike bank a/r financing, which is typically part of your bank business line of credit the factoring solution is in effect the sale of your receivables as a part of the financing.

Companies use this form of business finance when they can not obtain traditional financing . They are growing and need the valuable cash flow that comes from a factor facility.

What then are the factors that determine a/r pricing when it's non bank in nature? First of all note carefully that the cost of factoring is really a discount on your receivable sale to the commercial finance firm funding your facility. So it's not a loan per se, nor is it a credit line in the true sense of the word.

Factors that will determine your ' buy rate ' are the size of the facility, the volume of invoices you have, and the general credit quality of your clients. Also, there are a number of commercial lenders and its important to work with the right firm - Some are local, some are small, some are very large, and some are non Canadian but do business in Canada.

Another key factor in factor receivables finance is your advance rate , Typically you get immediately 90% of your invoice, the balance is held back until your client pays . Larger facilities in Canada tend to be very competitively priced and solid facilities can be arrange in the 1 to 1.5% discount rate.

Commercial factoring companies also might have some misc fees associated with your facility, as do the banks themselves.

How to Determine Best Receivable Finance Solution

So the best advice on accounts receivable financing ? Simply that whether its a bank facility of a alternative solution seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record
.


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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !


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 .

' 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

Asset Based Lending Companies : What You Need To Know

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HOW DOES ASSET BASED LENDING WORK ? LIKE THIS !

Operating lines of credit , as in ' access to ' have been a challenge for many Canadian business owners and financial managers. So is there an alternative to consider ? The answer is a resounding ' yes ' , and its called the asset based loan/line of credit. We can prove it because it's working for thousands of firms in Canada.

It is somewhat ironic that many business folks have not even heard of this type of facility , i.e. what it is, and more importantly, how it works.

There is some confusion sometimes around the fact that there are a couple different versions of asset based credit lines, also known as ' ABL 's '. Even some of the name changes on this facility are confusing, such as :

Working capital facility

ABL revolver

Asset Based Lending

Etc?

In pure terms this type of credit line is simply an operating line based on underlying collateral. The most common assets for this ' collateral' are accounts receivable and inventory. But also included can be equipment and real estate. Your ability to margin all these assets turns into true liquidity - bottom line more cash flow!

Chartered banks also offer lines of credit - no secret there . The difference is that asset based lenders use higher margins on your assets and credit requirements are much less restrictive . Most commercial asset based lenders have a lot of expertise in different industries . At the same time they really want to understand your business and require a consistent level of reporting.

The reporting we refer to above is pretty standard stuff, ie receivable and payables lists, sales forecasts, etc . ABL lenders are very much less focused on those ' ratios' that our friends in banking obsess about!

Don't think of asset based credit as ' term loans' or debt . You are simply cash flowing your assets that you already have , in a bigger way!

Bottom line? Check out non bank business credit lines if you have working capital needs that traditional lenders can't satisfy. Seek out and speak to a
trusted, credible and experienced Canadian business financing advisor .






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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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 .

' 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.

Short Term Working Capital Loans Help Overcome Cash Flow Challenges In Business

The Best Business Working Capital Loan to More Cash Flow

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A SME working capital loan ( SME = small to medium enterprise ) can easily help overcome the cash flow challenges your business faces . It is really an extension of the merchant cash advance concept that originated with the financing of retail type businesses.

Let's take a look at the cost and type of financing we're talking about . Your firm's ability to maintain the proper level of cash is no doubt a continual challenge . We read everyday in the business news about the reality of an upcoming recession .. or not ... but to our clients it always comes back to running and growing their business.

So how does the short term working capital loan in fact address your finance needs? It's an alternative form of financing that focuses on your sales and the funds that travel through your bank account on an ongoing basis. Rates are higher than bank financing, typically in the 1-1.5% per month range but the bottom line is that your loan is paid from ongoing sales. This is not long term loan financing!

So is this financing in fact ' expensive '. We'll let you decide because the new found cash can be used to generate more sales, negotiate better with suppliers via effective purchasing, as well as maintaining positive relationships with suppliers and employees. They both like to be paid!

Our clients typically use these funds to grow their sales, reduce payables, etc. It's important not to confuse the benefits of short term working capital loans with other forms of cash flow financing - these include a/r financing, inventory finance, tax credit financing, etc . And let's not forget about term loans of a longer nature.

Interested? Hopefully not confused!! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist your with your business finance needs.




Click Here For Business Financing

Working Capital Financing Approaches ! Make Them Work For You

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The 7 Park Avenue Financial  Way  To Solve Cash Flow Problems

Working capital finance , properly structured, can provide the boost your business needs to both grow and operate. Businesses take on the lack of cash flow challenge for a variety of reasons :

New Market Opportunities
Special projects

Etc !

The bottom line is that properly structured business financing allows owners and financial managers to monetize the assets in the business on a short or long term basis. An example of a long term scenario would be a sale leaseback ; short term example might be the cash flowing of your accounts receivable.

It is important to know that certain types of business finance solutions are more applicable than others depending on the special needs of your business. The classic example of a cash flow challenge is when you are growing, profitable, but have a gap between cash on hand in your business and short term obligations.

Examples of working capital finance ? They include:

 Working capital term loans - Recent trends have demonstrated the important of both short and medium term cash flow loans. The overall credit quality of your business and the amount you require will drive a final solution. Loans can be secured against certain assets, or unsecured. Unsecured cash flow loans are currently very popular and have grown out of the popularity of merchant cash advances.

Business lines of credit, essentially an ' overdraft ' are often the most common sources of working capital cash flow . When these are not available from traditional bank sources other commercial asset based lenders step in to take up the slack.

A well structured business credit line is in fact a safety net for your overall cash flow needs.

Other forms of working capital financing ? They include :

1. Invoice finance - aka ' Factoring '
2. Purchase Order Finance
3. Tax Credit Financing
4. Sale Leasebacks

Bottom line ? There are numerous sources of working capital financing . Choose the right one for your firm with the assistance of a trusted, credible and experienced Canadian business financing advisor . Then get ready to grow your business!


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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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 .

' 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

What is Asset Based Lending? And Why Should You Care?

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How to Get Ahead in Financing with Asset Based Lending

How does asset based lending work ? That's a typical question we get when we're meeting with clients and discussing asset based finance solutions. While some business owners may consider it a second, or alternative option the reality is that in many cases it might be your only solution to business cash flow success.

That's because in many cases traditional finance solutions might be out of reach, for a variety of reasons, for many business owners and financial managers. Therefore mgmt should well consider funding options for alternative financial providers.

What are the reasons you might be looking for a new financing solution/solutions for your company . One might be simply: Growth! Whether you are a start up or growing into faster and more sales for your established company the reality is that traditional loans have a lot of criteria in place when it comes to applying for finance . That's when it's important to properly present your revenue and cash flow plans in a proper manner.

Some asset based lending solutions revolve around assets your business already owns . Assets such as equipment, rolling stock, real estate and yes, even purchase orders can be financed through specialized alternative finance.


You are probably starting to realize now that asset based lending is more focused on the present and future, while traditional finance requires a focus on the past such as cash flow, owner credit history, etc, While these are nonetheless important they are not the primary focus of ' ABL ' ( asset based lenders ) firms.

Flexibility is the key when it comes to these ' new world' business finance solutions. They can be used to grow your business, acquire a competitor, or expand into new markets. In many cases the ABL solution will be a refinancing of your existing debt and assets.

Depending on what type of alternative finance solution you accept in many cases no new debt is incurred- therefore being cost effective in the true sense of the word. Three common sources of asset based lending are invoice financing, purchase order finance, and inventory finance. These solutions simply increase cash flow and allow your business to grow and make good sense.

Speak to a trusted, credible and experienced Canadian business financing advisor to investigate your business finance needs.







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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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 .

' 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 Options Harder To Find Than Atlantis? Alternative Financing Is The Solution

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Solving The Fundamental Problem Of Business Financing Options . Hint .. It’s Alternative Finance Solutions

Business finance options seem harder to find these days than the lost continent of Atlantis. So when clients say that traditional solutions are no long working or accessible by them our answer is simple - consider alternative financing scenarios. Let's dig in.

Part of the problem faced by many business owners is simply time... they know they need new or better... or even ' some' business financing... they just don't know where to look for it .



In a lot of cases the entrepreneur spends a lot of time searching for equity capital and are disheartened to find out that they were so not ready for that option. By the way, equity capital dilutes ownership of course, so giving away a large piece of the pie early in your business success reduces the chances of long term return on your investment.



Many top experts feel that the equity route though is in fact better than debt or asset monetization. We respectfully disagree, as no matter how costly these solutions are... properly structured they can still allow you to achieve sales growth and profits without giving up ownership. That's our story and we're sticking to it!



No discussion on Canadian business financing can take place without talking about ' WHEN THE BANK SAYS NO ‘. We don’t think it's that complex really. As one expert puts it the business owner or financial manager fails to understand that the bank has a deal with its depositors... the money is safe and unavailable to risk start ups, early stage companies, or firms experiencing financial difficulties .



We're the first to point out that if your firm has profits, cash flow, and collateral, clean financials, etc you're 100% eligible for bank term loans and commercial revolving credit facilities.



So what are some of those alternative financing solutions that can still generate capital and cash flow for your business? They include:



SR&ED TAX CREDIT FINANCING - This financing funds your research and development

GOVERNMENT SBL LOANS

ASSET BASED NON BANK LINES OF CREDIT - (They finance inventory, receivables and equip all in one borrowing facility

CONFIDENTIAL RECEIVABLE FINANCING

SALELEASE BACK



What then is required to access these alternative financing solutions? In almost all cases just you’re current financials and a sales or cash flow forecast is a great start. You will not, we repeat NOT be successful if you, or your advisor can't articulate sales growth, receivable collections, gross margins, etc. That's just common sense by the way.



Asset monetization strategies will focus on your balance sheet. Hard assets can be refinanced through bridge loans or sale leaseback strategies.



Receivables of any type can easily be financed in Canada. This even includes contract monetization scenarios. And by the way, service companies can easily cash flow their A/R... your firm doesnt necessarily have to sell a hard asset product.



Yes, its true that we’ve spend hundreds of years searching for the continent of ATLANTIS. Our point - Alternative financing solutions can be found today, they are here, or just around the corner via the assistance of a
trusted, credible and experienced Canadian business financing advisor




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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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 .

' 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