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Business credit line operating loan 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 managers don't really understand all their options for a source of credit in this area of Canadian business financing.


And yes, there are two kinds of business line of credit 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 key benefit of a bank operating loan and commercial line of credit from a traditional lender is that it is short term in nature and provides maximum flexibility around business borrowing based on the pre-set credit limit designating the amount of funds your firm can borrow at any given time.

Canadian chartered banks offer a revolving line of credit in order to allow your company to bridge payables as receivables are collected. Most Canadian business owners will immediately recognize that more and more clients are delaying payments in order to enhance their own cash flow. The ability to delay payables is a method by which any firm can increase cash versus taking on a business loan.

Bank facilities are priced based upon interest charges on funds used via the ' operating loan ' process. Naturally, balances are paid down as cash inflows are received by the company. When borrowing from a bank a company must satisfy terms and covenants within the approval. Banks view business credit lines as ' short term ' commercial borrowing, and a bank will typically constantly revisit the approval to evaluate ongoing risk - this is part of the regulatory and fiduciary responsibility of Chartered banks in Canada.




Bank facilities are secured, with the most common security being inventory and accounts receivable. Banks consider these types of facilities ' demand loans ', allowing the bank at any time to ' call ' the loan and, you guessed it .. ' demand ' payment in full. Banks register their security on these loans via the appropriate lien filings in the jurisdiction where the business operates. These ' secured loans ' are a large part of bank lending in the Canadian economy, for businesses both small and large, public and private.


KEY POINT - Although Canadian banks secure the operating line of credit via short term current assets ( a/r and inventory ) it is important to understand that the bank will almost always take collateral on all the assets of the company, as they would enforce security by liquidating both short term and long term assets. Those long term assets typically will be equipment and, if applicable, real estate.



From an accounting point of view, the bank line is designated as a liability on the company financials, typically shown as a ' current liability ' given the bank views this as a loan that revolves within a one-year business cycle.

Many businesses in the Canadian economy operate with heavy seasonality being a part of their revenue recognition model. Business lines of credit are a great ' gap bridging ' when seasonality occurs in your company. As a company's CASH CONVERSION CYCLE increases more dependence will be placed on a line of credit for business.




Having that access to bank credit should best be viewed as a strategic tool in your financing of day to day operations. Having the credit facility in place lets you know you have access to business capital at future points in time. Business owners and financial managers should view the ' operating line ' financing of their firm as a part of their overall financing structure, as the company will typically require long term debt in some form, whether that be term loans or equipment financing.

Unsecured Credit Line For Business 

There is an important distinction between ' term loans ' and ' credit lines '. Term loans place major emphasis on the overall credit profile of the borrower - the focus will be good balance sheets, profits, and reasonable owner equity compared to the debt load. The 'credit line ' on the other hand focuses on ongoing financial performance and asset turnover.

We can make the case that the credit decisions and the amount of time it takes to get approvals in each case differ. Also, those term loans or cash flow loans ( also called ' mezzanine loans' ) come with monthly installments and a one time receipt of funds.

The obligation to make those monthly installments is different from the flexibility of the revolving facility that has no fixed payments - although it should be understood that lines of credit are best viewed by the bank when they ' revolve '. In a perfect world, the revolver facility should at some point be paid down in full and then borrowed against on an ongoing basis.

SMALL BUSINESS CREDIT LINE ? CREDIT LINE FOR BUSINESS NEEDS ?

HOW TO GET A BUSINESS CREDIT LINE

INFORMATION REQUIRED FOR BANK CREDIT LINE APPROVAL

At 7 Park Avenue Financial we focus on a complete package for clients looking for traditional bank financing. A typical package would include:

Articles of Incorporation
Financial Statements
Bank Statements
Aged payables/receivables
Inventory List
Cash flow Projection
Business Plan or Executive Summary


Generally, companies in early-stage/pre-revenue situations will have difficulty in establishing lines of credit. Companies not showing a profit or having inexperienced management  teams will also be challenged in accessing revolving credit.

KEY POINT - Understanding qualification criteria, timelines, loan costs, and miscellaneous fees are crucial to being successful in obtaining bank credit. Understanding bank requirements around loan covenants, debt to equity ratios, and the proper amount of owner equity contribution in the business is key to successful bank negotiations if an advisor is not used. That debt to equity ratio typically desired by a bank is in the 2 to 1, or 3 to 1 range - implying the bank wants to see the proverbial ' skin in the game ' of owners.

We advise clients to always have a backup plan in place for alternative financing solutions when time is of the essence and financing is critical.

THE ABL NON BANK BUSINESS CREDIT LINE

The other alternative, gaining more traction every day in Canada is the Asset-Based Credit Line.        " ABL " )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.
For companies that have a higher debt to equity ratio, or fluctuating profits and cash flow that is erratic at times- For that reason, it is the perfect facility for a business line of credit. The ability of a company to generate working capital by being able to cash flow the assets they have in the business.

At 7 Park Avenue Financial we have found that the ABL solution can assist companies in various categories of financial health - those that require restructuring and turnaround as well firms who require financing significantly more than a bank is willing to provide. That allows firms to grow without being impeded by the covenants and other restrictions a bank might place on a borrower.

Business credit line operating loans give a company the flexibility it needs to manage day to day operations through the ' operating cycle ' of the business - namely the time it takes for a dollar to flow throughout the company from the sale to cash collected. Depending on what industry the company is in that might be a significant amount of time - business experts call it the ' cash conversion cycle '.

Common users of non-bank business credit facilities will often include manufacturers, distributors, retailers, etc although services based companies can also utilize the asset based facility. Outstanding balances of the credit line will fluctuate based on sales revenues and cash needs.



Operating loans via asset-based lending allow a company to borrow a much larger percentage of margin based on the value of the assets. The collateral in the receivables, inventory, and equipment is called a ' borrowing base ' and provides funding on an ongoing basis based on sales revenues and ongoing operations.

In Canada the majority of the banks offer an asset-based business credit line operating loan, but these boutique divisions withing the bank are much smaller and many borrower feel that bank ABL's mirror traditional bank lending - which may or may not be the case in our experience here at 7 Park Avenue Financial. Remember also that banks operate in a highly regulated capacity, while the vast majority of non-bank commercial loan provides in asset-based lending are private firms that are self-regulated. Some ABL lenders in Canada are subsidiaries of foreign corporations wishing to establish a commercial lending base in Canada.




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 operating loans and business lines of credit 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 an overemphasis on the personal credit of owner’s banks insist that the owner demonstrate personal creditworthiness and external assets as backup collateral.

carries.

BENEFITS OF THE ASSET BASED BUSINESS CREDIT LINE OPERATING LOAN

1. Companies take comfort in the fact that they have a steady supply of cash flow based on revenues generated - as revenues grow a company must invest more capital in receivables and inventory which have a time component attached to their conversion to cash

2. Any company that has some level of seasonality or ' bulge ' needs can access liquidity during times of large orders and the necessity to build inventories

3. Rapidly growing firms experiencing ' hyper-growth ' often cannot access traditional bank finance but ABL solutions allow the constant

4. While banks place significant reliance on covenants and operating ratios for financing approval the asset based lender is ' collateral-based ' and instead focuses on regular monitoring of business assets to maximize borrowing power

5. Many asset-based lenders have special niches of expertise in a variety of industries and will frequently customize a borrowing solution outside of the ' credit box ' of a Canadian chartered bank.

6. In some cases, an asset based lender will consider an ' over advance ' of the facility - allowing the company to temporarily borrow beyond the approved limit. A firm's cyclical nature will often be the driver in a request for an over advance - a classic example is when sales are slower but there is a need for inventory build-up due to seasonality. In other cases a borrower might be viewing an opportunity to acquire a large amount of product at special pricing.




At 7 Park Avenue Finacial, we strive to provide a balanced approached to the bank vs non-bank credit line facility debate.

So it's important for ABL borrowers to understand that the cost of business credit lines in the asset based lending environment will almost always be more expensive, and must be factored into the final borrowing decision. Many companies feel that need to constantly update their reporting places some level of burden on the company. Asset based credit lines provide the lender with the ability to control the business cash account when the borrowing base is lower than the approved operating line of credit amount.



Asset credit lines also differ substantially from a bank business loan 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 search for operating finance and a business credit line operating loan is a boom, and not a bust, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your operating loan and corporate loan 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

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 areas 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial







Stan Prokop
7 Park Avenue Financial/Copyright/2020

Business Credit Line Operating Loan Solutions Canada

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WHAT IS THE DEFINITION OF 'RESTRUCTURING CAPITAL'?

Restructuring capital options in business turnaround financing services leaves many clients we meet feeling as if they are business financing outsiders. Knowing they have to focus on some sort of ' financial recovery ' without knowing their sources of potential financial capital can leave owners/mgr's in a very undesirable ' limbo'.

We're reviewing some financial options, techniques and go-to strategies for the desired turn around. A company may also benefit from capital and a restructure process even if they are not severely financially challenged - not all business owners might recognize that point - that it is not always bad news but an opportunity to look at how you operate and optimize the firm sales and asset turnover.

If your firm's efforts are successful in this whole process the company will be poised to both survive and grow, even when general conditions are more difficult or on the other hand severe, such as a recession, etc. Pandemics included. Let's dig in.



In order to effect a proper turnaround in restructuring in business both time and financial skills are required to assess the overall liquidity of the company. That involves a detailed examination of the 3 parts of a business financial statement ( balance sheet/income statement/cash flow statement ) and some modelling and ' normalizing ' of those financials. More often than not negotiations with current and new lenders are a large part of a restructure. Here the focus is on both the position of owners as well as external lenders.

WHY RESTRUCTURE? CORPORATE RESTRUCTURING 101!

There are a number of reasons why a business restructuring process might be required. In some cases it is necessary to understand the true value and price of the company. In other cases mergers and management buyouts might be under consideration. Even more common is the fact that a company in some sort of financial distress might require a turnaround finance solution. Finally, a company might be raising equity - therefore the need for a ' re-jig ' of the balance sheet.

The key point is simply that business conditions have changed and the company must respond with the best type of refunding based on current conditions. Balance sheet ratios might be out of line or creditors and senior lender might be considering a ' workout ' situation of some kind. The bottom line is that the financials must be ' remodelled ' in order to assess new financing, probably with the help of a restructure company/business advisor .

RESTRUCTURING BENEFITS

Although the time of change is always a challenge for a business it is at the same time an opportunity to address long term financial stability. Arranging new financing or refinancing assets allows owners and management to position the company for future profits and growth, as well as the opportunity to address new markets, products and services, etc. Even the promise of operating more efficiently under a reorganization of any sort will benefit the company. That said it is safe to say that management will always be challenged in refinancing due to the competing interests of owners, lenders, suppliers, etc.

It is interesting to note that one industry expert has compared the debt restructuring process to a ' home improvement ' and it's probably not a bad analogy. That ' remodelling' and enhancing the outlook of the business typically will im[rove the reputation and value of the company. So whether its general economic conditions ( or a pandemic ? ) the goal of the firm is to protect assets and allow the company to survive and move forward in business operations.



Suffice to say that in business financing and a financial restructuring knowing the problem is a huge part of the solution. While the worst-case scenario is going out of business the desired solution is financing that works. Companies struggling with debt will require either a take out of current senior lenders and new debt and cash flow options, and its safe to say that some cost-cutting usually is required. Finally, even asset sales must be on the table based upon the advice of advisor/restructuring company.

CAPITAL RESTRUCTURING FROM A BANK?

Various types of finance sources exist, both traditional and alternative to help companies in times of need of a restructuring strategy when there is an operating loss or current financial structure that does not allow you to pay suppliers and lenders, much less grow. While the ' go to ' for most firms is a bank a variety of reasons preclude many firms from restructuring via traditional bank solutions; some of those issues include regulations, covenants and ratios that support the financing, and stricter margining of assets.




While owner or new outside equity might sometimes be desired, or even mandated that type of capital is often hard as you're turning around your business. One strategy explored by many is the possibility to merge your firm with another strategic partner or... dare we say it... competitor. In many cases declining sales and be assisted in ways such as cost-cutting and operational efficiencies such as asset turnover.



Having solid cash flow projections and a realistic business plan is key to a solid turnaround strategy. That coupled with a solid understanding of current business assets and their value is the key to bouncing back financially. How you generate revenue is key to understanding potential turnaround financing solutions.

WORKING WITH SENIOR LENDERS DURING THE RESTRUCTURING PROCESS

Generally, a company will have debt obligations to a senior lender. This might be one loan or a combination of loans that hold security over the assets of the company. This senior debt must be addressed so that a company can free up collateral and cash flow in discussions with a new lender/lenders.

The loans that are in place with senior lenders typically are a business line of credit, ie an ' operating line '. Security for these loans is typically all, or some combination of inventory, receivables, equipment, and real estate if applicable. In certain cases a term loan, typically ' cash flow ' based, might be in place.

Other debt that is in place, and ' unsecured ' might be working capital loans, equipment leases on specific collateral, etc. After new owner equity considerations and possibilities have taken place it is then necessary to consider reducing or refinancing debt, the potential sale of any assets, etc,

Financing Solutions In The Turnaround

Unsecured cash flow loans



A/R Financing - Proper refinancing of sales receivables will always get you more cash; optimizing current assets for their quality and turnover is key to a successful refinance strategy



Inventory Loans



Asset based non - bank business lines of credit (loan advances for these credit lines are much more generous than traditional Canadian chartered bank alternatives



Sale-leaseback strategies - In many cases proper appraisals of fixed or current assets may well be required by external sources. The sale-leaseback strategy is often a key part of any refinancing. Assets owned by the company, which might include equipment and real estate typically can be ' resold ' to the leasing company or other commercial lender. The asset, still used by the firm can be refinanced over a fixed period that allows for cash flow to both be injected into the firm as well as a monthly installment program initiated on the repayment based on cash flow projections.

The ability to generate new cash flow from long term assets is a key aspect of a sale-leaseback solution. It's an add on to your firm's other debt and operating facilities when potential financing has been exhausted and time is of the essence. It is important to determine which assets are critical to the value of the company and which assets are most suitable for refinancing.
The most common refinance assets include equipment and real estate, in some cases technological equipment such as computers/software etc can be considered for refinancing.



While traditional chartered banks might view a refinancing of an equipment loan in normal bank lending with an emphasis on financials, cash flow, profit, etc an equipment lessor, on the other hand, will focus on the value of the asset and its role and importance in your business. Established leasing companies have a significant amount of expertise in valuing assets, and will, on occasion, use the services of a third-party appraiser.



The cash raised by the leaseback is new working capital for the business and is more often than not used for general working capital purposes. The leaseback refinance strategy allows you to match the maturity of the loan with the useful economic life of the asset as it pertains to your business operations.




Leaseback refinances works simply because it recognizes the value of the owned assets in the company and monetizes them to release the cash value of those assets. Owners must ensure those assets being refinanced are key to the core operations and future needs of the business. Otherwise, those assets must be considered for sale.

Naturally larger hidden values might typically come from company real estate/owner premises where a combination of high depreciation as well as tax benefits might make great business sense to refinance and bring liquidity to the company. The building refinancing could also introduce new amortizations that might make better financial sense. Similar to unused equipment business-owned real estate must be assessed in the context of the core business of the company.

In the lease back process, it is all about the core focus of the company going forward, allowing the owners and advisor to act accordingly int he disposal or refinancing of assets.



PO Financing



Sales/Royalty financing



Proper financing of your current assets ( A/r / Inventories ) allows you to turn inventories into receivables into cash in an ongoing cycle.  Asset Turnover  is key!



In many cases turnaround financing is a temporary fix - typical time frames are from 12-24 months; naturally, business owners should be focusing on the long term plan also. Survive and then thrive might well be the mantra!



Outside collateral and personal guarantees of owners will almost always (unfortunately) be on the discussion table. Also, it's important to note that cash flow also comes from effective payables mgmt., as well as limiting extended terms to your customers.



Some of the strategies mentioned above involve your ability to maximize asset turnover and recognize proper valuation of your assets. Simple strategies such as the ' sale leaseback ' of assets you already own can bring invaluable capital to pay off or re-arrange debt.



In any turnaround strategy, it's important to address any government debt such as CRA arrears, HST, etc. New ' turnaround ' financing will often address this govt debt first because of the ' super priority' the govt has on all businesses.



Once new financing is in place your focus should be on managing cash flow and balance sheet activity. Just the ability to properly forecast a realistic future cash flow need goes a long way in arranging new financing. While lenders always have a long term focus on ' getting out' and getting paid the business owner/mgr's skills in showing control and minimizing risk is key.


When a business undertakes a restructuring strategy both the overall financials as well as how the company operates will be the focus. Financial pressures will often force a company in some way to address how it does business. The goal? Simple. Fixing the business and making it better.
The firms goal will be to ensure sales and operations can cover cash flow needs and debt repayment, trying to avoid the worst-case scenario, which is of course business failure.

' Fixing ' the business internally is certainly possible, and requires a total management focus on costs, profit potential, employee headcount and even a potential sale of a part of the business.

Remember also that in addition to reducing costs there is, somewhat ironically, costs associate with a proper restructuring. Those costs might come from asset write-offs, facility closures, and purchase of required new assets.

Certain industries will at times find themselves ' out of favour' with lenders, thereby affecting even the strong players in an industry segment. Whether its oil, automotive, or building the issues are sometimes systemic to the whole industry - even the best planning in good times cannot avoid an entire industry segment becoming out of favour with either customers or lenders.


DOES YOUR FIRM NEED A RESTRUCTURING CONSULTANT


7 Park Avenue Financial is an expert at providing alternative capital to small and medium-sized companies when traditional lending solutions may at times be not possible in restructuring a company . Via a combination of debt financing, monetizing assets for cash flow, and energizing working capital facilities the firm provides solutions to traditional funding challenges. Asset-based lending solutions, combined with lease financing/sale-leaseback strategies can save a company via creative solutions specific to a company's needs.

Non-bank alternative financing solutions fill the void left behind when Canadian chartered banks are unable to or unwilling to fund a business. If you are looking for a custom solution specific to your company or industry and asset base/business model seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with business turnaround financing services/options.




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 areas 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial







Stan Prokop
7 Park Avenue Financial/Copyright/2020

Restructuring Capital Options In Canada

Business Financing Interest Rates & Loans In Canada The Not So Secret Way To Understand Cost Of Business Finance

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What Is The Interest Rate On A Business Loan? Is There An Average Small Business Loan Interest Rate

 

   

Clients at 7 Park Avenue Financial who come to discuss their CANADIAN BUSINESS FINANCING needs are looking to compare business loans / rates and understand the rationale and qualifications around achieving best business loan rates. Small business loan rates in Canada and financing costs are certainly one key factor in understanding your financing costs to run your business, whether you are a small business or a larger corporation, and yes, even a start-up for new business financing.

Qualifications vary for different types of financing and there are numerous other key factors in the business loan decision. There also can be miscellaneous costs associated with any one type of business finance solution, and those must be considered also. Some entrepreneurs and commercial borrowers look to alternative sources of private financing such as friends and family, angel investor networks that offer rates vastly different from banks and commercial financing companies -although many of these types of borrowings tend to be ' equity ' related.

ADDITIONAL POINTS TO CONSIDER IN THE BUSINESS LOAN / INTEREST RATE DECISION

In certain types of financing the issues of down payment come into focus. Those down payment scenarios are common in several types of business finance including equipment financing, acquiring rolling stock, and of course, commercial mortgages that require owner equity. One other factor to consider, and it's always a big one in discussion with our clients is the necessity of personal guarantees on business loan transactions.

Those ' PG's ' not only affect the approval of the small business loan but can alter the interest rate as well depending on the personal credit history and net worth of the guarantor. Canadian chartered banks place a large reliance on personal guarantors. In certain cases both approval and rate might also be determined via the personal guarantee of another related or non-related party. One other key factor in the rate determination of the bank or non-bank commercial lender is the term of the loan, which might be a multi-year amortization, or, at the other end of the spectrum a short term bridge loan.

Fundamentally it's all about your risk profile but don't forget also there are a variety of both traditional and alternative lenders in Canada- all of whom have different lending guidelines and structures. Companies who qualify for bank financing in Canada (Spoiler alert - not everyone does!); Bank loans for small business  tend to focus on amortized life of loans and the fixed/variable conundrum. The current low rate environment is a boon for those who qualify for bank financing.

Covenants, ratios and documentation required should always be a part of any commercial borrower’s consideration. Whether it's a bank or a commercial finance company we've certainly observed that the majority of borrowers tend to prefer to deal with a lender with a local presence. Is size everything? Quite frankly when it comes to the interest rate for a small business loan in Canada or cash flow finance solutions ' size ' does play an important role in both rate and approval.

Interest rate pricing will vary based on credit facility/loan size as well as the amount and type of debt you have on your balance sheet. It's important to understand that different types of financing in Canada support different goals - that might be one of the combinations of growth, working capital, expansion, and even acquisition.

In many cases firms opt for a complete refinancing of existing facilities. What then are different types of small  business loan  financing that support your firm’s goals? Note also they all have different rates and structures that will determine rates for small business loans.

SME COMMERCIAL FINANCE

The small to medium-size enterprise makes up the largest part of the overall economy in Canada, with well over a million businesses participating in the business landscape. At 7 Park Avenue Financial we deal with many firms who are in start-up or early phases of their growth - it's this segment that is the most challenged when it comes to finding the right finance solution as well as costs around the financing. Whether its day to day operation funding or exploration of growth opportunities cash remains .. king!

Canadian banks of course offer unlimited financing solutions coupled with the lowest costs. Unfortunately, when it comes to bank loans for small businesses thousands of firms find themselves unable to meet the requirements of a traditional lender - those requirements being clean balance sheets, profits, cash flow generation, and quality personal guarantees and external collateral. For that reason the rise of alternative finance Canada has been somewhat meteoric!

 

BUSINESS FINANCING SOLUTIONS

A/R Financing

Inventory loans 

Sale Leasebacks

Equipment financing

SR&ED Tax credit financing

Commercial mortgages

Non-bank asset based lines of credit

Bank credit lines/term loans

Royalty financing

  

 Unsecured Cash flow loans 

 

 

      

  

   KEY POINT :    

Institutions such as banks and other commercial finance companies will calculate financing around variable rates based on the prime rate - these rates are of course set around the general market and economic conditions - companies with good commercial credit history and financials will have a smaller markup to those benchmark rates. 

It is very safe to say that overall business financial history, quality of the personal guarantee, and the type of collateral held are the key determinants in business financing.

GOVERNMENT OF CANADA SMALL BUSINESS LOAN - The FEDERAL BUSINESS LOAN

 

Borrowers in the SME COMMERCIAL FINANCE sector might well find that the most accessible traditional bank type financing that comes with a low cost of funds are government-guaranteed loans with the facility offered by INDUSTRY CANADA, an arm of the federal government. This is a loan support program that is used by close to ten thousand businesses every year for firms that are primarily starting up or in earlier stages of growth.

Statistics from the government available for recent years show almost 1 Billion dollars of loan financing generated annually under the program. The program is a solid way to reduce long term capital investments with financing that matches the useful economic life of assets required by the business.

KEY FACTORS TO CONSIDER IN THE CANADA SMALL BUSINESS LOAN GOVERNMENT GUARANTEED FINANCING PROGRAM

 

Numerous attributes of the loan include the fact that the majority of the loan is guaranteed to the banks by the federal government. Typically any assets you have purchased within the last 6 months, as well as of course new assets can be refinanced or financed if new. Rates are based on a floating rate over prime and monthly payments are made on a blended basis of principal and interest. Term of the loan can be anywhere from 2-7 years - at 7 Park Avenue Financial the majority of our clients opt for a 5-year term.

Confusion around the program can sometimes revolve around the fact that only assets, leaseholds, and real estate qualify for financing under the program. Here it is important to know that Canada's non-bricks and mortar entrepreneur bank can offer cash flow and working capital loans. When you are considering either of the two government-based loan programs experts advise that you should work with a qualified Canadian business financing advisor who can assist you with your government loan needs and who has experience in the area.

The ability to submit a quality loan package utilizing the experience of an advisor helps in guaranteeing loan approval and rates commensurate with the two government offerings.

SHORT TERM WORKING CAPITAL LOANS

Cash flow/working capital financing loans are currently extremely popular in Canada. They are easily accessible, often require little or no collateral guarantee, and are usually repaid over a 1 or 2 year period. While the annual percentage rates are high on these loans thousands of small business owners have found these types of loans as cash flow lifesavers. Firms that have any sort of reasonable credit and sales history can easily qualify for these loans, on which loan amount is typically based around a maximum of 15-20% of your annual sales.

In some circles, these loans are commonly known as business merchant advance loans, and came up to Canada via a business model originating in the U.S. Your company’s track record and financials will play a key role in obtaining any commercial financing Note also that you firm might have a ' Senior lender ' - typically a bank or commercial finance company, as well as utilizing the financing services of other ' niche ' based lenders, some of whom are profiled above in our list.

While some may view alternative finance solutions as ' expensive' remember also that they will always be cheaper than surrendering equity ownership? Alternative financing solutions can help firms who are challenged or on the verge of distress, which obviously is a key factor in higher rates It's always about the ' risk ' undertaken by our traditional or alternative lender.

Our bottom line is that there is no one single interest rate on any type of business loan, but diligent borrowers, combined with advice from qualified advisors can help you achieve the most reasonable rate from any traditional or alternative lender.

WHAT'S MY RATE?! 

SUMMARY OF KEY ISSUES AROUND THE BUSINESS LOAN INTEREST RATE

1.Rates on business loans will vary from very low bank rates to higher rates offered by non-bank commercial lenders.

2. In general, each financing rate will be competitive within the loan type and lender in Canada.

3. A number of key factors will ultimately determine overall loan cost around a debt finance solution

4. There is no one 'average loan rate ' due to competing traditional and alternative lending solutions

5. The way in which a lender expresses/calculates the rate can be confusing to the commercial borrower

6. Understanding loan type and lender type will help the business owner and financial management to assess rate

7. Traditional rates by banks and insurance companies, etc will almost always be lower than alternative financing

8.When it comes to ' alternative financing access to capital and speed of funding increases as well as does the rate

If you want to better understand the not so secret truth about a Canadian small business loan and business finance interest rates, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with the best loans and finance solutions that match your firm’s needs.

Click here for the business finance track record of 7 Park Avenue Financial

Stan Prokop 7 Park Avenue Financial/Copyright/2020

Business Financing Interest Rates & Loans In Canada

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BUSINESS FUNDING IN CANADA & BUSINESS FINANCING SOURCES

Business financing solutions in Canada clearly demonstrate that the types of loan and cash flow financing you need are clearly not equal in value and accessibility to business owners and financial managers. There are numerous types of business financing. Here's why, so let's dig in!

Any company borrowing for funds for business money will usually encounter some difficulty in taking on debt, and when there is an economic downturn, pandemics included! Whether it's financing startups or mature companies, those challenges to source business capital can be even more overwhelming.

In challenging times the ability to source debt capital is very challenging and time-consuming and the ability to work with an external business financing advisor is often recommended unless of course you and your own team are exceptionally qualified and have the management time to source capital.



Capital Funding will usually mean a combination of financing for day to day operations as well as long term finance needs. That final capital structure will be a combination of debt and equity, with lenders expecting a return on their capital and owners hoping to achieve a proper return on investment - ' ROI '.


Funding a business and acquiring assets for your business, whether that be equipment, buildings, rolling stock, and investments in technology - ie computers, software, etc typically should be acquired through proper debt instruments such as loans, leases, mortgages, etc. Matching the useful economic life of these assets to the proper finance solution is the goal! The amount of debt you take on to acquire these assets will force a dilution effect on the owners equity in the business - again pointing out the need for the right amount ... and type... of debt.


Banks and commercial funding companies in Canada are the two foremost sources of business capital and typically provide the basic financing needs you require to run... and grow the business. Financing costs are of course an expense and lower the overall pre-tax profit of your business - no secret there.

Business owners and financial managers should always be testing the cost of their debt in order to allow the company to move forward with the right goals around its costs of borrowing and return to shareholders/owners.

Many industries are very 'capital intensive ' and require a much larger amount of capital as compared to service industries, so depending on your industry, as well as what ' stage of growth ' your company is in will be the key drivers around types of short term and long term finance.

The ability to diversify your finance solutions is often recommended by experts; that might be at the start-up stage or in times of high growth. When business challenges occur that diversification allows you to consider ALTERNATIVE SOURCES OF FINANCING. In recent years many new finance solutions in alternative financing compete aggressively with traditional financing via Canadian chartered banks. It is safe to say that any type of financing, either traditional or alternative has different benefits and disadvantages that must be weighted by owners.

What Are The Best Financing Options For A Business

Many different types of business finance solutions exist - the challenge revolves around your ability to ensure you're pursuing the right type of loan or cash flow financing solution.

At 7 Park Avenue Financial many firms we work with are in the ' startup funding ' stage; new business funding for owners who have committed some of their personal capital and are looking for additional financing to start/bootstrap the business. Entrepreneurs consider every source of capital, even tapping that ' friends and family ' and ' Angel ' investors. Some consider the venture capital route which is very time consuming and expensive and typically not appropriate for the majority of startups. Those ' VC ' type deals seem most common in the technology/software area/biotech area. Often a large amount of equity must be given up by founders to receive substantial financing.

Occasionally government grants and government VC capital might be available. Companies going the VC route will have considerable pressure to quickly get to a hyper-growth stage allowing investors to recoup their investment via some sort of exit strategy.

One other source of business capital for more traditional businesses, including franchises, is the Government of Canada Small Business Loan program, providing up to $ 1,000,000 of debt for three specific categories of assets: Equipment, Leaseholds, and Real Estate.

Many business owners/entrepreneurs aren't familiar with the Canadian govt small business loan program. We can call it the ' bread and butter ' in terms of the phrase ' government loans'. Clarification is required here because it's not the gov't that actually funds the loans, it's Canadian banks with the loan guarantee in place from the federal gov't.


For Canadian business owners, timing is pretty well ... everything! That’s why with careful preparation of your submission a loan can be approved in a matter of days



Getting back to our theme of ' timing is everything ' an even more accessible solution for owners/mgrs is the working capital term loan. Often provided on an ' unsecured ' basis these loans are based primarily on the cash flow within your business bank account. There is a lot less paperwork required and funding can occur within days.



Many businesses, particularly in the SME sector (small to medium enterprise) require purchase order funding solutions when they receive orders and contracts far in excess of their normal financing capabilities. P O Financing allows companies to access new markets and larger customers, enhancing revenue growth.

Most times even international orders of almost any magnitude can be financed if your firm has a qualified buyer and a legitimate supplier. Because of that most firms also require a business credit line, in some cases called an ' ABL ' line. These revolving facilities are provided by traditional financiers such as banks, and, somewhat unknown to most, commercial finance companies often referred to as 'asset-based lenders '.



What information is required in order to assess your firm’s qualifications under most types of financing? It's not as complex as it might seem. Traditional applications often include just financial statements, but can also be augmented by a business plan or cash flow forecast. Canadian banks are typically the first ' go to ' for many business owners, and a lot of time can be spent on finding a bank, and banker, that can meet your specific needs.

Borrowers find out very quickly that banks are looking for well-performing firms that have sales, assets, clean balance sheets, and profits. Those attributes, combined with a solid BUSINESS PLAN and cash flow projection will typically lead to financing success with a bank. Canada's crown corporation non-bricks and mortar bank for entrepreneurs will also provide solid financing solutions.

In certain cases your firm might be a solid candidate for cash flow loans, often called 'mezzanine finance; with the loan secured solely by those predictable cash flows you must be able to demonstrate. These loans are often viewed as the interim bridge between debt and equity.

Both working capital term loans, as well as short term cash flow loans, are very popular in current times. Any company showing good growth is a candidate for a cash flow loan either traditional in nature, or of the type offered by a multitude of short term working capital lenders. The latter type of loan is typically a one year loan and is based on a simple formula of 15-20% of your annual sales. With these loans rates are higher as lenders are looking for higher rates of return given the loans are not collateralized.



In all cases you should be prepared to demonstrate the type of collateral that requires financing (which might include just your sales), mgmt experience, and a solid understanding of how business loans or cash flow facilities will be repaid or revolve.

We have demonstrated there are numerous sources of funding for businesses. Careful time and consideration must be given to the type of financing your business needs - different costs and risks are associated with every type of financing.


So yes, it’s true, not all business financing solutions are equal when it comes to benefits or qualifications. Seek out speak to a trusted, credible and experienced Canadian business financing advisor to determine your exact needs and potential solutions.


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 areas 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial







Stan Prokop
7 Park Avenue Financial/Copyright/2020

Business Financing Capital Funding Solutions In Canada

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Eliminating The Tough Road In Accessing Business Credit Lines

Business line of credit needs may often require the business owner/financial mgr look beyond the ' norm' associated with revolving credit lines. That's where ABL asset based lending and revolving loans come in - they're the viable bank alternative. Let's not forget though that bank facilities of this type offer low cost and flexibility if they can be accessed. Let's dig in.

An ' ABL ' is the acronym for the non-bank business credit line via the asset based lending solution. With the focus on using your assets as collateral the true ' borrowing power' of the facility provides your firm with a flexible cash flow solution based solely on the balance sheet assets. The facility actually suits every type of company but is often most successful for firms that have uneven financial statement ratios, fluctuating profits, and cash flows that might not resemble true operating cash flow performance.

Many companies, but not all as we've mentioned, used the facility to facilitate a turnaround or restructuring around their overall capital structure when that is mandated by owners or lenders! Many firms that are financed by Canadian banks might find themselves on the wrong side of covenants and ratios that often can only be solved by a new third party solution.

Solutions around asset based revolving lines demand that your firm has a good handle on your overall cash conversion/business cycle. That knowledge, combined with the ability to borrow a higher amount on your overall collateral will deliver the proper turnaround in your business finances. In some cases true asset based lenders will also consider term debt if it is appropriate and feasible.

WHY CONSIDER AN ABL BUSINESS CREDIT LINE / REVOLVING CREDIT FACILITY?

Many new clients at 7 PARK AVENUE FINANCIAL aren't fully aware of the differences in ABL loans as compared to bank credit or other facilities. They have found via experience that bank credit is difficult to get given the personal guarantees, covenants, and other obligations Canadian chartered banks might impose. Accessing all the bank credit you require can easily become a full-time job! As one of our mentors used to say ' tuition is very expensive in the school of experience '!


There are a number of reasons why your firm might consider an ABL revolving line. Some of these reasons might include:

ABL Finance will provide significantly more, and immediate liquidity to the business

Firms that might be under a cash flow crunch or constantly facing bulge financing needs due to issues around seasonality, etc will find themselves fully financed

Asset based credit lines tend to almost automatically grow as your revenues rise Growing sales requires constant replenishment of working capital due to the build-up your investments in receivables and inventory consistent with any company with growing sales.

ABL financing is 'covenant friendly', with asset based lending companies place much less, or even no focus on debt to equity ratios, financial leverage, outside collateral, etc ( ABL Lenders can do this as they constantly update your overall all asset coverage around aged payables, receivables, fixed asset lists, etc - The software and reporting mechanisms ABL lenders use provides them with a total update on how your firm is doing


In summary, asset based lenders who feel comfortable with their asset security, as well as your firm's ability to provide regular updates on performance, provide a significant amount of liquidity into the Canadian business financing landscape.

Are There Disadvantages To The ABL Facility And A ABL Revolving Line Of Credit?

99% Of the time asset based lending will always cost more than traditional bank financing. The bottom line interest rate and the focus on continual reporting is the tradeoff your firm gets from it's access to maximum liquidity. However, similar to bank financing the ABL environment allows you to pay for only the credit you utilize. ABL lenders have a higher cost of financing as they are typically financed privately and have higher costs around the monitoring of collateral and reporting.


Fundamentally it's all about the cost of financing benchmarked against the ' risk ' associated with your firm or its industry. It's at these times that looking at alternatives make sense.


Revolving credit facilities are primarily used for growth; and in some cases they are a solid re-financing alternative.

HOW DOES THE ABL BUSINESS LINE OF CREDIT WORK? THE REVOLVING CREDIT AGREEMENT

The ability to constantly access and drawdown working capital/cash flow needs is the key attraction of securing the proper line of credit facility. The assets that make up and drive this type of business credit are:


Receivables

Inventory

Equipment / Real Estate (if applicable)


As these two ' current asset' levels rise and fall so does the line of credit accessibility. Technically speaking the bank, or the asset based line of credit provider determine your firms access by establishing what they call a ' borrowing base' - typically on a monthly basis


In the case of a bank facility, typical margins against these two assets are as follows -


A/R = 75%

Inventory - 50% (varies)


The asset based lenders who provide lines of credit typically offer higher margin borrowing:


A/R - 90%

Inventory - 50-75% - (varies)


We can with confidence and experience say that asset based non-bank credit lines, while more costly, almost 99% of the time offer more borrowing power.

True revolving facilities are the most typical credit line - your firm draws down on the facility and then pays the facility down as you collect receivables and generate cash. The facility ' revolves ' - hence the name 'revolver'. The key drives of that ' revolving ' tend to be the turnover over inventories and collection of receivables as the company completes its sales cycle.

Many industries find themselves perfectly suited to asset based credit; examples might be distribution companies, manufacturers, distributors, etc.

In current times many firm are service or software-based , and these firms focus on the collection of a/r or their ability to contract clients via recurring revenue streams. When you set up your facility with the asset based finance company you will mutually agree on a ' borrowing base ' which will identify the maximum you can draw down at any time. Revolving credit facilities make the most sense economically when they ' revolve ' allowing you to minimize borrowing costs which at the same time being able to access capital when you need it.

This is why good attention to your inventory turns and DSO ( the key measurement of receivable turnover ) are so critical for the ownership/management team.

Asset based lenders use bank lockbox agreements to allow them to control the overall facility and ensuring the funds you receive are used to constantly pay down the facility. Over time your ability to have the facility ' revolve ' properly will have a key place in determining facility size, rates, collateral monitoring, etc.

If your firm has a good relationship with your lender you can often negotiate an ' over adance ', allowing you to temporarily ' over-borrow ' above the approved facility size. In these cases we always recommend clients be prepared to put together a realistic cash flow projection based on the current situation and needs of the business. Those situations might arise out of the ' seasonality ' in your industry, or your ability to take advantage of special vendor pricing, etc.

One other possibility surrounding this type of facility is the potential for the asset based lender to include a ' term loan component ' in the overall structure of the facilities. Payments can be adjusted to be made separately on the loan or also utilizing the ' balloon repayment ' scenario, allowing for the loan to be collapsed when the facility is paid out by another lender.

 Suffice to say good asset coverage is required in these latter two scenarios. Although almost all Canadian banks have an ' ABL ' division Canadian borrowers will always struggle with the concept of trying to understand the difference between bank ABL and non bank ABL.

In the U.S. ' second liens' are popular, allowing lenders to be 2nd on charges of equipment already secured by another lender; this practice is very uncommon in Canada. When banks do provide ABL loans in Canada their rates are often considerably better than their non-bank counterparts - however minimum loan sizes are often in the 5-10 Million range and upward. Banks will take a more extensive look at a multitude of factors in these larger ABL loans such as overall credit quality, pricing, and the company's ability to comply with the operational aspects of loans.

It is safe to say though that on balance there is more lender risk in asset based loans given constantly changing assets of the borrowing firm, along with major fluctuations in cash flow and often struggling working capital ratios, which is why various conditions will be imposed by a Canadian bank or non-bank LOC provider. We can (again) say with confidence (and, again experience!) that conditions imposed by asset based lenders are less onerous and more flexible. To some extent the actual limit on the line of credit can almost automatically increase without further applications, etc


What then is the bottom line of your firm's search for revolving lines of credit? The key points include:


Consider the entire funding landscape currently available in Canada


Be open to looking at both bank and non-bank solutions - aka ' traditional' versus ' alternative’


Have a strong sense of your working capital and cash flow needs


Ensure you have the data to allow a bank or non-bank lender to consider the credit facility - typically that's financials, aged receivables, inventory, payables, etc

ALWAYS BE OPEN TO A PLAN B!

In certain cases your company either may not be eligible for an asset-based credit line. There are numerous other solutions that can provide a similar type of liquidity including accounts receivable credit lines, purchase order financing and inventory loans, sale-leaseback scenarios, factoring loans, etc. Each of these types of facilities has different pricing and benefits attached to them.

Certainly a sole accounts receivable line of credit is always more achievable and can meet the needs of many firms, particularly those with smaller facility size requirements. Although there is no hard and fast rule our experience at 7 Park Avenue Financial is that for firms requiring facilities less than 500k these secondary solutions we have highlighted will often do the job, particularly if your firm doesn't qualify for a true ABL through a commercial lender or the bank.

Solutions such as the factoring line of credit are easily put in place, so business owners and their financial mgr's should always investigate types of asset-based financing.

These secondary types of offerings, versus the operating line of credit, are generally easily accessed, and certainly, approvals are more quickly put in place.

In summary, if you’re focused on shortening the journey on the tough road to business cash flow and working capital financing consider all options, including speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you with funding needs... that deliver.





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 areas 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial





Stan Prokop


7 Park Avenue Financial/Copyright/2020

A Business Line Of Credit In Canada : It’s True That ABL Revolving Lines Deliver !