Canadian Business Financing - 7 Park Avenue Financial: September 2019

Sunday, September 29, 2019

Do You Know The Factors Affecting Business Financing & Business Lending

Actionable Business Financing & Business Lending Tips

Business financing ! You've heard the rumour , namely that business lending is more available than ever. Whether it's small business funding or medium to larger corporations we hear capital is almost unlimited.

But for those firms that for a variety of reasons can't qualify for all, or even some of the financing they need from traditional sources such as Canadian chartered banks there is hope - in the name of asset based financing options.

Let's backtrack a bit and understand that a company, from a lenders perspective will always be identified relative to what stage of the company ' life cycle ' it is in. That might come in several stages , going all the way back to pre-sales revenue r&d to initial start up . It's a long journey to that ' high growth' stage . And it's not hard for the entrepreneur to dream about that final stage of business maturity where traditional financing sources are unlimited.

Have we forgotten anyone. Yes, we have , and it's prudent to mention that many companies, for a variety of reasons, are financially challenged and have poor financial performance and some serious cash flow or debt problems . Suffice to say the good news here is that even these firms can be financed or re-financed , as numerous alternative financing solutions are available .

Many firms often find themselves in the position of taking on larger orders or contracts that typical small business funding solutions can't deliver on .

3 OPTIONS FOR Alternative Financing

Purchase Order Financing - This is an increasingly popular method for a company to support purchase orders or contracts from new or larger clients. Without having to raise new equity or debt your order is financed by the lender based on who your client is and also ensuring you have a legitimate supplier .This financing can be achieved very quickly and makes sense when traditional finance doesn't work.

Accounts Receivable Factoring - This type of finance allows you to cash flow invoices immediately after you make a sale or deliver your services . The general credit worthiness of your clients allow you to get advances on your sales typically in the 80-90% of invoice value. Naturally this eliminates waiting to get paid, which these days seems to take anywhere from 30 to ..d are we say it.. 90days!

Simply speaking A/R financing is a cash flow accelerator!

Non Bank Business Credit Lines - Alternative financiers offer credit lines based on your inventory, receivables and equipment as a lump sump collateral . In our experience these credit line almost always exceed the amount you would receive under typical bank margining of these assets.

SUMMARY - If your business is growing , or even experiencing challenges investigate non bank solutions that will allow your firm to be in a constant position to access capital based on specific needs.
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 success in business lending.

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 !

7 Park Avenue Financial provides value added financing consultation for small and medium sized businesses in the area of cash flow , working capital , and debt financing .

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

Saturday, September 28, 2019

Do You Know Your Business Finance Alternatives ? Alternative Funding Options To The Rescue !

Improving Business Finance Alternatives

Business finance alternatives actually depend on one key thing . Know what that is ? It comes down to knowing where your company is at re it's stage of growth. That's a long spectrum as financing alternatives start way back to business start up , and go all the way to mature businesses who have stopped growing and might be generating all the cash they need.

In some cases company might be challenged and undergoing financial stress re debt load, lack of cash flow, etc . That's why it's important to know your options while understanding where in the journey to business financial health your firm stands.

Bottom line - there are business financing alternatives! Many firms find themselves in a position that yields a double edged sword - they are growing too fast, business feels good, but.. they are constantly out of cash. One of the most common solutions to that problem is asset based lending , which typically means considering the move to non bank asset based lending solutions . And there are several of them - They include:

Non bank business lines of credit

Basic A/R or Inventory Finance

Purchase Order Funding

Tax Credit Finance

Sale Leaseback

Short term unsecured working capital loans

Term Loans ( Cash Flow Based )

As you can see, there is a lot of flexibility in mixing and matching alternative financing solutions.

Naturally the conundrum faced by many business owners and financial mgrs is even more simple - they don't know where to go or who to talk to for assistance in evaluation financing solutions. They are busy running their company , and aren't dialoguing with lenders at either banks or commercial finance companies !

That's of course the reason why companies can benefit from a business financing advisor - they are guaranteed to understand the full spectrum of alternative business funding . Suddenly they can see answers to challenges such as taking on major new contracts or having the ability to offer clients extended payment terms.

A company experiencing severe financial stress can also utilize a trusted, credible and experienced Canadian business financing advisor to see the way out via a restructuring and refinancing process.

Businesses that are start up in nature, or who are in the process of generating their first revenues can benefit from non traditional funding sources also - Solutions such as Govt Guaranteed Small Business Loans, Equipment Financing, etc are tried and true solutions for start ups.

Looking For An Expert In Business Finance Alternatives ?

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record who can assist you with your business funding 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

' Canadian Business Financing With The Intelligent Use Of Experience '

Wednesday, September 25, 2019

Business Funding Expert Tactics For Your Company

Winning Business Funding Strategies For Your Business

Business funding expert tactics are critically valuable for any business owner or financial mgr . We read daily that business financing is widely available these days - that's mostly true but the type of funding you require and all the issues surrounding collateral, personal guarantees, etc must be overcome in the proper manner.

The type of business financing you need is key to the issues of collateral, guarantees, lender covenants, etc . Broadly speaking the types of business financing can be broken down into ' traditional ' and ' alternative ' and within those two categories are working capital, cash flow and debt solutions . Depending on whether your firm is experiencing the proverbial ' cash crunch ' or if it's simply looking for growth capital , it's that type of question that dictates what type of funding works best.

Established companies typically are long past the ' friends and family' approach to business finance ; they therefore must be prepared to travel the loan application road to business finance success.

Your ability to either monetize assets or repay debt will drive your decision towards the right cash flow solution. Both traditional and alternate lenders will want to know what your current secured debt structure looks like. They are of course looking for repayment ability and what type of collateral matches the finance solution your firm needs.

The Business Funding Expert Plan to Business Capital

The initial finance discussions are always best handled when you're well armed with what business lenders look for - that might include a well thought out cash flow and a business plan that profiles the strengths and prospects of your company . In the old days we called this ' source and use ' of funds , and it's at the heart of the business cash flow question.

Other key parts of the overall business application might well include personal financial info on the business owner/owners , copes of recent bank statements, articles of incorporation, etc,l

We spoke of how the type of financing you need will drive the optimal business finance solution . And by the way, in many cases the optimal finance solution might include a cobbling together of various solutions.

Business financing solutions available to your firm include:

Short Term Working Capital Loans

Term loans - typically 3-5 years and cash flow based

Chartered bank lines of credit

Non bank asset based lines of credit - these facilities finance receivables , inventory and equipment and typically provide twice the amount of capital as a bank line of credit

A/R Financing - aka ' factoring '

Inventory Financing

Tax Credit Finance

Equipment Finance and sale leaseback strategies

Commercial mortgages

If you want to ensure you're on the right track to business capital 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

' Canadian Business Financing With The Intelligent Use Of Experience '

Monday, September 23, 2019

Do You Know Everything About Business Loan Interest Rates ?

A Guide To Business Loan Interest Rates

Business loan interest rates bring out a variety of comments and emotions when we talk to our clients ! Naturally those emotions vary and their feelings seem to run deep!

There is a lot to consider when looking at a financing transaction and costs of funds in small business loans is certainly one of them. We're also quick to point out to our clients that in many cases ' access to capital ' is as important as ' cost of capital '.

No secret here that commercial lenders , Canadian banks included , look at the overall risk profile of a business. They have excellent ways of breaking that down ! In all fairness to underwriters though the risk scenarios are actually very objective and don't come with a lot of that emotion we've been talking about .

The key drivers of risk tend to be balance sheet quality, profitability, current debt structure, and that all important cash flow.

In many cases a company is simply growing more quickly than its current financing can handle - Financing must be rearranged to handle the new growth, and that new financing might well involve new forms of either traditional of commercial financing from options not previously considered by business owners.

What Are The Basic Forms Of Business Financing ?

Traditional and alternative solutions include:

Bank Term Loans & Business Credit Lines

Non bank asset based loans and business credit liens

A/R Financing

Inventory Financing

Purchase Order Finance

Tax Credit Financing ( SR&ED)

Equipment Leasing / Equipment Loans

Working Capital Loans ( Short Term / Long Term )

Commercial underwriters will look to both the past and future financial health of your business. In most cases, certainly in the small to medium sized business sector the personal credit history of owners will also be to some level scrutinized. Important to note that alternative lenders place much less focus than the banks on personal credit history of owners.

For example in equipment leasing a large emphasis is placed on the asset quality of equipment being financed.

We can make a broad statement that traditional financing offers the lowest interest rates to business clients.

The harsh reality though is that thousands of business either can't access enough bank capital, or in some cases can't qualify for any financing .

Therefore alternative financing, which comes at higher rates ( not always, but more often than not ) provides in many cases all the business capital your company needs.

The Best Way To Succeed with Business Loan Interest Rates

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 obtaining the most financing at rates commensurate with your needs and overall risk profile.

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

' Canadian Business Financing With The Intelligent Use Of Experience '

Saturday, September 21, 2019

Here's What Really Matters in Business Refinancing

Back To Basics In Debt Refinancing

Business refinancing
.. its a fact of business that commercial loans must be reexamined to ensure new or better financing is in the best interests of your current business position. And its a hard fact of reality that certain circumstances for a company to refinance business loans.

Changes will always occur in your business and owners and financial mgrs must evaluate the cash flow and debt position of the company.

So what some of those reasons that loans are refinanced, or new financing structure is brought into the company? In some cases certain gains in the value or assets of the business allow owners to take out equity, or in some cases totally ' cash out '. Current management might be focusing on a management buyout or some form of succession planning might be taking place.

Interest rates play a key factor in business refinancing - in a perfect world rates might have declined and allow your business to refinance under better terms. In other circumstances loans are refinanced to either reflect a more positive cash flow - or more often than not new credit lines are required to reflect the growing need for working capital due to higher sales , larger contracts, etc.

In many cases merger and acquisition opportunities arise . Here loans are combined, and new financing structures might be introduced to reflect positive financial statements for the combined business.

Currently there is a large popularity around short term working capital loans , allowing companies to generate immediate cash needs without taking on the burden of significant long term debt. Lease financing is often restructured to reflect the useful life of assets, which can either depreciate or appreciate based on the nature of the asset.

On occasion the actual business owners may wish to address personal guarantees that are in place around current debt guaranteed by the business owner.

If there is a bottom line on a company's ability to refinance business loans it's simply that each industry and company has different financing needs, and those needs change over time. That covers the gamut from financing distress to high growth.

A detailed analysis of your company's overall financing arrangements will often point to the need to refinance . Those all important loan covenants or guarantees need to be reviewed to ensure proper business refinancing action can be taken . We can therefore say that refinancing in some cases can be viewed as an opportunity, so 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

' Canadian Business Financing With The Intelligent Use Of Experience '

Thursday, September 19, 2019

Buying A Company? Business Acquisition Loans

Do You Know The Surprising Secret To Buying A Company ?

Properly structured business acquisition financing loans are critical to success in buying a company or business in Canada. As a business owner and financial mgr your goal is to pay the right price and merge that with the financing you need to make your transaction work .

In some cases you might even be executing a merger or even buying a strategic partner or competitor ; in any case finance is key .

A small business acquisition loan is of course outside those large corporations , public and otherwise in Canada , that have the talent and corporate financing that they need. It's the small and medium sized sector that we're focusing on . Those Bay street boys have all the help they need. But in any case a business financing advisor is usually key to closing your deal .

Many business owners and their financial mgrs often try to ' go it alone'. finding later that road is a painful and expensive one, and one that burns some bridges along the way . So how can a qualified business finance advisor help you ?

There are several key areas that an experienced intermediary might assist you in . They include, but are not limited to:

Helping you develop criteria for your decision

Reviewing and assessing all financial info that is available

Possible assistance in pricing and valuation

Most important ? Structuring a small business acquisition loan that makes sense based on assets and cash flow. And business loan rates are important to the overall financing strategy.

Being proactive and have a key sense of timing is always key, coupled with the quality of your financing package - one that will impress either a bank or commercial lender .

What can the business owner or manager expect to pay when it comes to a Success fee or work fees? In the SME sector we suggest a nominal but reasonable work fee and a Success fee in the 1-3% range depending on the complexity of the deal.

In many cases the work fee or ' retainer' as many seem to prefer to call it can easily be negotiated to be deducted from the final Success fee.

It is also advantageous to work with someone who has a sense of your industry - that is important and has value .

In many cases if you have found the ' right deal ' , but without proper financing there is of course ' no deal '.

The amount of debt and cash flow financing depends on several key factors that include sales and cash flow history, quality of assets, and prospects for growth . The amount of capital the buyer and put into the transaction is key , as well as business background experience of owners and mgrs in the business.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor
with a track record of success who can help you buy and finance that company or acquisition.

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

' Canadian Business Financing With The Intelligent Use Of Experience '

Monday, September 16, 2019

Bank Loans & Alternative Business Funding In Canada

Alternative Business Funding Via Non Bank Loan Solutions

Alternative business funding allows many smaller firms to.. get big! For both sales growth and profit margins it's essential to have the proper business financing in place - most business owners and financial mgrs recognize that.

Is the bank the only option . Categorically no, although most business owners for whatever reason view the bank as the only solution - only to be rejected for a variety of reasons, one of which is actually ' size ' believe it or note . While our Canadian chartered banks do a great job in helping to finance large firms they have numerous criteria in place that your firm might not be able to meet.

Banks often focus significantly , especially in the SME sector ( small and medium enterprise ) on the personal credit history of owners and principals. They look for solid and high credit bureau scores , and low scores can impact your firms ability to get a loan.

Alternative funding sources allow business owners to position the business as the major reason to achieve credit approval. Business funding alternatives become more accessible in alternative finance because it's the business under the microscope , not so much the owners.

In some cases banks might even determine an entire industry, example oil , autos etc may for a time be... ' out of favor ' . Canadian business history has plenty of examples of that. Occasionally banks might deem that a major customer of your firm actually creates a 'concentration ' risk.

In today's environment business capital for cannabis firms is in high demand. Banks have been reluctant to address all facets of cannabis financing , although this has ' slowly ' , and we do mean ' slowly ' changing . Alternative funding sources, via non bank commercial finance companies provides finance solutions .

Cash flow is a major factor in assessing business loan potential . Business owners and their financial mgrs should be positioned to address the ins and outs of cash flow, ie sales growth, seasonality, collections, payables mgt etc . Many alternative funding solutions allow you to grow revenues when traditional bank financing is not available .

Solutions for More Business Capital Via Alternative Business Funding Companies

Non bank receivable financing

Inventory financing

Purchase Order Finance

Non bank asset based business credit lines

Tax Credit Financing

Sale leaseback of owned assets

We think you get the picture and you don't necessarily have to take on ' debt ' to address capital and cash flow needs, as many of our above noted solutions simply monetize assets or sales.

Be prepared when you are approaching an alternative business funder - financials, a business plan and info on current lenders is a great start.

Bottom line ? Your business has lots of funding options, traditional and alternative . Seek out a speak to 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

' Canadian Business Financing With The Intelligent Use Of Experience '