WELCOME !

Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.



Showing posts with label 7 park avenue financial canadian business financing. Show all posts
Showing posts with label 7 park avenue financial canadian business financing. Show all posts

Sunday, March 24, 2019

Are Cash Flow Financing Challenges Managing You?










Who’s The Boss? Business Working Capital Management


Valid question, right? When it comes to your business working capital and cash flow financing who's running the show, you, or are those two culprits seemingly running your company?

We're remind of one of Yogi Berra's (many) great lines - ' when you come to a fork in the road, take it ‘! That's probably where you are now in many cases. Determining who will win the ongoing cash flow battle for supremacy.

The reality is that you can probably be forgiven for feeling ' Who's the boss ' as statistics show that 82% of business owner don't feel in control or comfortable about their cash flows. So how in fact do you regain that feeling of control that every business owner treasures.

A good start is to know what you're talking about. We've repeatedly said that cash flow is such an over used and misunderstood concept or term. We can get really technical (net income plus deprecation plus or minus changes in working capital components) but unless we're at an accounting trade show/convention that's not really what we're looking for here!

To make things more complex we can make a case that your ' cash flow ' has to do with historical, present, and future needs, making it even tougher to get a handle on.

There are some great tools and also solutions to manage your cash flow financing needs. And again, we're talking about real cash, not income statement profits. That frankly though is a good place to make a very important comment - if your cash flow statement ( it's component # 3 of every financial statement ) differs significantly from your income statement over time you probably will never really regain cash flow control/supremacy.

So lets examine some solid ways to make sure you feel good about that ' WHO'S THE BOSS' question we posed earlier.

First of all, keep your financials up to date and understand them. A small handful of key ratios or relationships you can easily, and we mean very easily monitor over time will allow you to feel ' in control ‘. Simple things like receivable days turnover, inventory turns, sales to fixed assets, etc.

It sure doesn’t hurt to do some methodical cash flow planning. Also, take a look at your overall capital structure from a viewpoint of debt and equity. This allows you to properly take advantage of market growth opportunities, even an acquisition perhaps.

We know we sound like a broken record sometimes, but understand your operating cycle; it’s the amount of time it takes for a dollar to flow thru your company. Match a financing solution to that selling cycle.

Hottest tip today on cash flow generation? It's dont pay anyone! But seriously, managing your payables and disbursements is critical, but we're the first to recognize the importance of supplier relationships. If you have a sales force you might consider paying them commissions when sales are paid, not made. Talk about incenting the collection focus!

If your assets aren’t turning over quickly focus on that. You can also monetize your current assets via bank lines, asset based lines of credit, working capital lines, receivable financing, inventory financing, and supply chain finance.

Who's the Boss when it comes to cash flow? Hopefully you. Speak to a trusted, credible and experienced Canadian business financing advisor on cash flow financing and business working capital analytics and 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


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.



Friday, March 15, 2019

What You Need To Know About Equipment Leasing Companies in Canada

















Tips on Commercial Equipment Leasing To Save You Money and Time


Information on equipment lease financing in Canada the the companies that offer equipment lease financing & equipment loans. Navigating lease financing minefields!




If you have made the decision to contact equipment leasing companies
in Canada you probably already have some sense of the advantages of commercial equipment leasing . How do you ensure you can get approved and also successfully negotiate the leasing benefits that are most important to your firm . Lets explore some money saving and time saving tips on equipment finance in Canada .

Just knowing which type of lease you need or that makes sense should be strategy number one – its not a complicated minefield of lease types – there are only two types of leases you should be looking at . The technical term for these two leasing types is capital lease, or operation lease . Which one makes sense for your firm? To make that decision simply focus on the end means – ask yourself this question – ‘ Does my business ultimately want to own this equipment, or are we more focused just for using it to generate revenue and profits for a specific period of time ?” That specific period of time might also have to do with the technology you are acquiring that down the road might be outdated or require enhancement or replacement .

So the simple rule is as follows – Negotiate a capital lease for equipment you want to keep and own, and negotiate an operating lease for commercial equipment you want to use and return . Equipment leasing companies may or may not offer your type of lease, so understand the overall market for your type of transaction .

What many Canadian business owners and financial managers don’t understand is how the pricing of a lease if reflected in both the type of lease you acquire, as well as the overall lease structure .

Example : If you firm is leasing a smaller ticket item leasing companies sense that you are more aware of the monthly cash flow and payments you are required to make . As a result the lease company can significantly adjust their rates based on your negotiations around which payment you feel you could make on the lease . A monthly payment of $ 515.00 is required for a 5 year capital lease of 25,000.00 of equipment . If the lessor tells you the monthly payment is 575.00$ per month they have just raised the rate to 14%. So focus on a combination of rate and monthly payment in your negotiations and understand how those fluctuations work .

Clients are always telling us they choose leasing financing as an options because of the focus on cash outflow . However , you should understand that often a down payment or a first and last payment might be required, so factor this type of negotiation into your lease negotiations .

It is important to get a commitment letter that spells out the overall lease payments and structure, and identifies both yours and the lessors obligations for a commercial equipment lease .

It is of course ok to get a competitive quote from another party, the challenge we find is simply that many clients aren’t capable of making an apples to apples comparison to the different rates and options provided . Ultimately as Canadian business owners we prefer to rely on an expert when we deal with any part of our business, including the crucial area of financing . As a result seek out a trusted, credible and successful business financing advisor who can assist you in a success commercial equipment lease financing transaction . This makes even more sense when a larger amount of capital expenditure is required .

If you do choose to work with an expert you will find that you might be saving many thousands of dollars on issues that might involve prepayment obligations, insurance coverage required, upgrade options, equipment registrations fees for collateralization of the lease, and assignment priveliges of both parties . So the bottom line again appears to be that consulting an expert in this area of business finance is highly recommended .

Make equipment financing a successful part of your overall capital expenditure strategy – focus on benefits that make sense for your firm, pick the right lease type, and ensure that the overall terms and pricing match your firms needs . That’s successful commercial equipment leasing in Canada.








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.