Alternative Financing In Canada : Cashing In On SME Commercial Finance Solutions

Alternative Financing Is Not The Wild West Anymore – Here’s Why & How SME Commercial Finance Solutions Work

OVERVIEW – Information on alternative financing solutions in Canada . SME finance needs are often not being able to be fully met by traditional banking solutions

Alternative financing in Canada may seem to some like a bit of the ' wild west ‘, but the reality is that SME finance has dramatically changed the landscape of the commercial loan market in Canada . What are some of these solutions, what do they cost, and how do they work? Let's dig in.

Commercial finance firms and alternative financiers are for the most part unregulated businesses. While that might seem to some as that ' wild west connotation the reality is that they simply arent subject to a lot of the reporting and lending rules that Canadian chartered banks are subject to .

These firms are also perceived as more ' nimble ' and the bottom line is that they are more willing and likely to lend to businesses (and in a much speedier fashion!) - The trade off is usually a higher cost of borrowing. In essence it's a question of ' access' to capital, not ' cost' of capital.

Though borrowing rates are still at historic lows in Canada there's no mad rush by traditional lending institutions to finance firms that are in start up mode, or experiencing ' challenges '.

We think the real trick of understanding the world of alternative finance solutions (a/r financing, inventory finance, tax credit financing, sale leasebacks, equipment financing, po /contract finance / asset based lines of credit, sales royalty financing, merchant advances) is really all about how to manage the cost and debt and ensure these financing mechanisms are used properly to generate cash flow and profits.

Some top experts in the U.S. have actually termed these alternative finance firms as ' shadow banks ‘. Whatever one calls them they certainly deliver capital quickly.

Alternative finance solutions in the SME sector almost always work best when they are funding sales and assets. Being able to monetize those to aspects of a business is really the key to working capital solutions.

A/R Financing is probably one of the clearest ways to explain the alternative lending solution in Canada. As businesses generate sales it's a pure reality that commercial business customers will not pay your firm for anywhere from 30-90 days.

The ability to cash flow this liquid asset (receivables) within 24 hrs and use the capital to pay suppliers, purchase inventory, thereby selling more is a great use of capital. Picking the right A/R financing solution (we recommend CONFIDENTIAL A/R FINANCE) allows the business to bill and collect its own receivables, mirroring the exact way in which a traditional bank credit line would run.

If you're focused on ' cashing in' on new business financing alternatives 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 your borrowing needs .




Stan Prokop - 7 Park Avenue Financial :

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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN ALTERNATIVE FINANCING SOLUTIONS


Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

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

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Business Financing In Canada : Knowing Loan Alternatives Is Preventive Medicine For Your Company

Looking For All Seasons Business Financing ? Kicking The Tires On Loan Alternatives

OVERVIEW – Information on business financing and loan alternatives in Canada . Knowing the ‘ credit box ‘ is key to successful debt and asset monetization financing

Business financing , and loan alternatives, in Canada is either at one time (or constantly!) sought by owners/financial managers. If loan options are not understood chaos can reign supreme. Let's dig in.

Unless you're solely in the retail business cash flow, working capital, and debt alternatives should be on the table. We're constantly amazed at the amount of time new clients have spent chasing down financing in areas they will never qualify for - these might include VC equity, Private Equity, etc.

Not knowing how to obtain loan financing, and more importantly, knowing what finance sources you qualify for are key points to consider. There's a great analogy that Queen Isabella was the first VC, having financed Chris Columbus - and probably without a business plan! Key requirements are that some sort of equity be in place and with products and services that have future cash flow potential.

Private equity groups are on the other hand looking for no early development firms, and typically favor niches in certain industries they are familiar with. Whether it’s a VC or a Private Equity Group prepare for: DILUTION OF OWNERSHIP!

Early stage businesses, including start ups should take advantage, or at least investigate the Government Small business loan option. Getting someone to cover off and guarantee your loan is always difficult, so if the Canadian govt is willing to do that... check it out.

Business owners can be forgiven for not breaking down their financing needs into different loan types - that might be:

Lines of Credit - bank revolving credit facilities / non bank asset based lines of credit (typically these finance receivables and inventory)

Term loans - secured / unsecured cash flow loans

Equipment Leasing

Asset Monetization - tax credit financing, sale leasebacks, etc

In every case the owner / manager needs to understand if they fit into the ' credit box ' that defines any particular loan or asset monetization. Those ' fit factors’ include: length of amortization/ amount borrowed/collateral/personal guarantee requirements/ down payments

Business owners in our observation seem to have a desire to blanket the market with their loan / financing request. This often backfires for the simple reason they don't understand the particular ' niche ' that commercial finance company or bank or alternative lender specializes in.

So can we summarize key aspects to ' all seasons' financing? Key areas to focus on are:

Understanding lender specialties

Ensuring proper documentation is immediately available - i.e. business plans, cash flow forecasts, and owner information

Being prepared and knowing finance alternatives is in fact the ' best preventive medicine ' for your financing needs. Consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you avoid ' tire kicking' in Canadian finance.




Stan Prokop - 7 Park Avenue Financial :

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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Startup Loans : Don’t Read This If You Don’t Want To Know How The Canada Government Business Loan Works

Confused About Govt Business Loans ? You Shouldn’t Be

OVERVIEW – Information on startup loans in Canada. Start Up financing via the government business loan provides key financing to make your venture successful

Startup loans in Canada bring one of the largest challenges any entrepreneur/business person will face. That challenge in many cases can be complete eliminated via the Government Business Loan - often called the ' SBL ‘. Yet confusion many times still reigns supreme when it comes to this program, how it works, how to access it, and... Oh yes, how to be successful.

As we have hinted, SBL loans allow you to get within reach of the initial financing you need fro any business start up. A startup can take many forms - starting from scratch, buying or acquiring a franchise, even buying an existing business and ' starting over ' (sometimes called a ' restart '). In other cases other financing can already exist that you have arranged and the govt business loan simply supplements that.

Many of the challenges you face on financing are preceded by other issues you have already faced prior to financing ; for example selecting a business location, negotiating a premises lease, doing your due diligence and research on your transaction , etc.

Putting the right finance solution in place for your venture means two things, arranging initial financing and ensuring and allowing you will have some working capital and cash flow for your ongoing operations and growth .

One of the main misconceptions of govt business loans in Canada is that they in fact can provide working capital and cash flow. They can't!! The program is specifically formulated to address only 3 asset categories -

Equipment

Leaseholds

Real estate

In the case of purchasing an existing business or franchise an appraisal of existing assets and leaseholds provides the basis of collateral for your new SBL startup loan.

In business you don't necessarily get all the chances you need to be successful, so government loans provide a solid base on which to start, operate and grow your company or franchise.

We've been somewhat amused for years because clients always want to discuss or focus on ' interest rate ' on any new financing they are seeking for start ups. While a rate must be competitive and allow you to of course pay the loan the reality is that start up financing outside the govt loans is difficult , if not outright possible to achieve . Yet the SBL program provides a very competitive rate (3% over prime) and even allows you to repay without penalty. Even traditional financing won't allow you to do that.

SBL loans work fundamentally because they are government guaranteed. Canadian chartered banks which offer and specialize in the loan like the program because the majority of the loan is guaranteed by the Canadian government. Almost 8000 businesses annually take advantage of the program.

If you are looking to turn dreams into reality for your Start up seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with this and other finance solutions.





Stan Prokop - 7 Park Avenue Financial :

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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN GOVERNMENT BUSINESS LOANS AND STARTUP FINANCING EXPERTISE





Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Business Financing In Canada : Time To Break Up With Cash Flow Problems

3rd Down 110 To Go On Cash Flow Financing Strategies ?



OVERVIEW – Information on business financing and cash flow challenges and solutions in Canada . These strategies get your business to the revenue and profit goal line





Business financing in Canada, especially when it comes to cash flow challenges often feels like ' 3rd down, 110 to go “for the Canadian business owner and financial manager. It just might be time to ' break up ' with those challenges and focus on solutions. Let's dig in.

It's important to of course understand what in fact the cause of the problem is when it comes to working capital needs. In business these are often known as the ' drivers ‘of cash flow. When you know what those drivers are it's much easier to focus on solutions - the right solution.

Naturally your profits itself is one of those key drivers , as well as your depreciation policy .Not every business owner knows that the basic finance definition of profit is simply your income plus depreciation over any given period of time, i.e. quarterly, annually, etc.

However, it’s the levels and your management of current assets and current liabilities that are also key.

Let's get back to those current assets and liabilities - it's there that lies your greatest challenge as well as they key to financing solutions. Increases in accounts receivable and inventory drive cash flow needs. And you ability to slow down payables also makes you more cash flow positive. Naturally that must be done while keeping key suppliers and lenders generally satisfied with you as a customer.

How then do business finance current assets - Typical ' traditional' solutions include Canadian chartered bank lines of credit and term loans? When those cannot be accessed numerous other solutions are available - they include:

A/R Financing

Inventory Finance

SR&ED tax credit monetization (if you are filing ' SRED' claims)

P O / Contract financing

Sale Leaseback financing

Non bank asset based lines of credit

Unsecured cash flow loans

Remember also it's how you manage these assets that is the ultimate scorecard of your business cash flow needs - the ability to turn over receivables and increase inventory turns makes you a cash flow winner and less reliant on external financing .

Fixed asset needs also plays a key role in your overall management - it is highly not recommended to purchase or finance assets out of credit lines as that is a classic mis matching of uses and needs of cash . The optimal solution is Lease Financing, allowing you to spread payments over the general useful life of the asset. 80% of Canadian businesses use lease finance at one time or another.

Many industries have specific cash flow needs - your firm might be highly capital intensive, or, at the opposite extreme a service business with no major assets.


In many cases cash flow needs are driven by what we call ' the bulge ‘. It might be the seasonality of your business, or perhaps a large new order or contract that places extreme cash flow pressures on your business. Here's where early planning and the ability to match a business financing solution to your need are key.


If you're looking to fix or improve present and future cash flow needs, while avoiding that ' 3rd down 110 to go ' feeling , seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success . It's time to ' break up ' with cash flow problems and move on!



Stan Prokop - 7 Park Avenue Financial :

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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS CASH FLOW FINANCING EXPERTISE








Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

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

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '


























Stan Prokop

Small Business Guaranteed Loans In Canada : Here’s Enlightenment On This Federal Loan Program

SBL Loans In Canada Are Right At The Top Of The Food Chain In Financing For New And Existing ‘ Small ‘ Businesses

OVERVIEW – Information on small business guaranteed loans in Canada. How the Federal SBL loan guarantee program works and when it works best



Small business guaranteed loans in Canada , vis a vis the federal ' BIL ' program often require some ' enlightenment ' on a handful of issues . Let's dig in.

Bar none, the federal SBL program is one of the absolute best financing initiatives for a new or existing small business in the SME sector in Canada.

Why then is 'enlightenment'

required. More often than not that comes in several categories:


Many entrepreneurs simply have not heard about the program

They misunderstand the type of financing required

They don't know where to go or who to reach out to in order to simplify the process

They think the gov't is involved (It is but it isn’t what you think!)



Financing options in Canada come typically under term debt or revolving debt (for example - a business line of credit). It's important to not that the SBL guaranteed loan is a term loan, with fixed repayments at an attractive interest rate. Typical terms are 3-7 years depending on what is financed.

When we talk to clients about federal loans we sometimes get the feeling they are like deer caught in the headlights. That feeling more often than not comes from the issue that they perceive a lot of what we could call ' TRANSACTION COMPLEXITY ‘.

We don't buy into that, as the entire process is in fact very straightforward and well documented. It's a sensible program that requires that you supply the following in order to get approved:

Business plan/ executive summary
Cash Flow
Information on the owners - (mgmt experienced/ personal credit history, etc)
List of items to be financed
Proof of a business premises lease where the business will be located

Those items we've noted allow the loan to evaluated, and if they are submitted completely that should typically just take only several days.

But what about the ' government aspect’ ask our clients? The answer we give is often a surprise. While this is in fact a federal program out of INDUSTRY CANADA the reality is that the borrower never meets, talks to, or corresponds with anyone in government. That's because Small business guaranteed loans are administered by the banks under the direction of the government.

That leads us to the concept of ' guaranteed loans’. What's that all about then? , ask the client. Well here's the scoop on that. Small business SBL government loans in Canada are guaranteed against default by the borrower for the majority of the loan. Borrowers are only personally liable for 25% of the loan if there is a default issue.

Two other quick points:

The maximum loan size is $ 350,000.00

The only items the program can finance are ASSETS and LEASEHOLD IMPROVEMENTS

If you're looking for some ' enlightenment ' on small business loans in Canada as a guaranteed by the government seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success in loan financing that suits your business needs.



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.

Info re: Canadian business financing & contact details :

7 Park Avenue Financial = Government Guaranteed Loan Expertise In Canada






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:
7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769
Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

Stan Prokop

Financing For Small And Medium Business Enterprises In Canada Hasn’t Disappeared .Good Luck Might Be Around The Corner

What’s The Secret Around The SME When It Comes To Financing?




OVERVIEW – Information on the financing of small and medium enterprises in Canada . Business solutions come from various sources based on needs and qualifications




Financing for small and medium enterprises in Canada is a classic business conundrum. Many clients we talk to believe it simply doesnt exist, in other cases it’s a case of a business life of disappointment. Let's clarify some winning, and well as some losing strategies in the ' SME ' sector in Canada when it comes to raising capital and financing assets for your business. Let's dig in.


Part of the challenge of SME (small medium enterprise) financing is size. Avoiding the obvious ‘is size important’ joke we were reading a column in yesterday’s Canadian business daily. The columnist was touting the benefits of a SMALL CAP (cap = capitalization) company.

Many business owners and financial managers in Canada will be very surprised to know that a small cap stock in Canada is one that has a value of less than several hundred million dollars. Enough said... all of a sudden financing your firm seems even a greater challenge, because it would appear you're not even small cap!

Truth be told though there are thousands, perhaps hundreds of thousands of businesses in Canada in the SME sector with revenues in the 1 - 25 Million dollar range. And guess what? These businesses are growing the Canadian economy, being acquired, and merging with similar firms to get more scale.

Most stats tell us that this is really the backbone of the economy given the big guys don’t seem to be hiring a lot these days, unless you're an outsourcing consultant!

So what are the types of financing that the SME needs, and where can he or she be successful in finding it? Financing needs include term loans, revolving credit facilities, equipment financing, rental solutions, as well as on occasion some equity capital.

The major challenge of SME's in Canada is their ability to access traditional bank financing. Unlike in the U.S. it is extremely difficult for the SME business owner to access the loan products offered to larger established corporations.

The main two traditional financing products offered by banks to the SME sector are the Govt Small Busines Loan which maxes out at 350,000.00$ ( not bad don't you think?) and working capital , term and equipment loans offered by Canada's crown corporation bank.

If there is one bright light in SME Canadian business financing it's the alternatives offered by non bank commercial lenders. Although they are always priced to risk these solutions are varied and include:

Equipment financing
Bridge loans
Sale Leasebacks
Receivables financing
Non bank asset based lines of credit
SR&ED Tax Credit Financing
Franchise finance

The bottom line is that the SME owner doesnt necessarily have to have the external collateral, stellar financial statements, and impeccable personal credit histories that come with traditional financing solutions.

For SME COMMERCIAL FINANCE solutions that make sense for your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with the SME conundrum.



Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

7 Park Avenue Financial = SME Commercial Financing Expertise In Canada






CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Phone = 905 829 2653

Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com
















Stan Prokop

Is A Business Advisor The Magic Bullet To Monetizing Assets And Originating Loans For Companies In Canada?

All The Business Financing You Need Today ? You’d Have It Already If You Could Do It Alone


OVERVIEW – Information on the role of the business advisor in Canada. When it comes to loans and financing options how can expert advice help your company



Business Advisor needs? That is the question faced by many business owners in Canada, as well as financial managers when it comes to financing their business through loans, asset monetization, and other strategies.

Although we say it somewhat tongue in cheek, the reality is that if you had all the financing you need you certainly would have it in place already, without any help from an ' expert '. What then is the role, value and cost of advice when it comes to growing (or saving?) your business. Is the right advisor your MAGIC BULLET? Let's dig in.

Many business owners and managers we meet intuitively have a sense of the current state of affairs of their business. They often think they know where they need to be when it comes to growth and financing needs... where things fall apart is their inability to understand which of a multitude of finance options are available. In some cases it’s a lack of knowledge, in others it just time and resources.

Enter the Canadian business financing advisor. The key role here is quickly established - identifying and carefully explaining all options, and then executing on them.

Naturally along the way, whether you are doing it yourself or with professional expertise there is a minefield of turbulence. That comes to a certain degree from the fallout of the 2008 world wide financial implosion/recession, with many Canadian business owners still believing we're not quite out of the woods on that one.

Then there are the issues with your current lenders, as well as your overall relationships with suppliers and vendors, etc.

Financing issues tend to address either your existence or survival, or alternatively growth. The role of an experienced business finance advisor is to understand what resources and assets are in place for your firm, and how they can be maximized based on the future plans of your firm.

Nothing is as important as understanding your current financial position. When you understand the current capital structure of your balance sheet, the quality and size of the assets, your operating cycle (days receivable, days payable, inventory turns) and how these assets either eat up or can be monetized into cash you are immediately ahead of the game.

Some very basic issues need to be addressed by yourself or your expert advisor. They include understanding who you are currently borrowing from, their collateral, and any issues that surround your relationship. In many cases we discuss with clients the company is ' off side ' on ratio, covenants, loan and interest payments, etc. In many cases its time to replace that financing with something else.

The good news about ' growth ' is that it's a bit more fun to address when it comes to traditional and alternative financing solutions. Understanding your gross margins and your working capital needs can 99.99% of the time bring a fix to financing growth.

Don't underestimate the needs of a trusted, credible and experienced Canadian business financing advisor when it comes to originating finances you need to operate and grow your company. After all, if you didn’t need that help, and if you understood every option available you'd be there already, right?!




Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


7 PARK AVENUE FINANCIAL = TRUSTED CREDIBLE AND EXPERIENCED CANADIAN BUSINESS FINANCING EXPERTISE




CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
























Stan Prokop

Franchise Business Loan Financing In Canada . Here’s Your Version Of Private School

What Happens When Franchise Business Loans Work?



OVERVIEW – Information on franchise business loan financing in Canada. What special info and insights and expertise is require to successfully finance the franchisees’ entrepreneurial dream and vision



When Franchise business loan financing works in Canada it's easy to see why the franchisee and entrepreneur feels like they just go all the benefits of a private school education. We won't weigh in on the benefits of private versus public education of course; we will say though that if you have the right financial advice, info, and industry expertise contacts you're well ahead of the pack. Let's dig in.

Key to understanding franchising finance needs is the ability to obtain the right type of term loan, credit line, or other type of financing that 's related to a franchise - for example equipment financing.

A lot of those types of borrowing facilities also relate to the amount of personal equity, the proverbial ' down payment ' that comes from your own financial resources. In fact a lot of the up front charges related to a franchise acquisition can generally not be financed - they might include things like franchise fees them, incorporation costs, etc.

Many clients we work with initially under estimate the total amount of financing they need for their purchase from the franchisor. A lot of that pain and embarrassment can be avoided by clear up front discussions with your franchisor as to the total amount of capital required to facilitate a successful acquisition, allowing you also to run and grow the business. A good example here might be a credit line if your business in fact needs one. Business such as the hospitality industry often operate on just a cash basis, which necessitates less working capital.

In some cases the franchisee might be considering the re-purchase of an existing franchise... That's a whole different other 'kettle of fish' - as you're dealing with the owner of an already existing franchise. Key here it to determine the right valuation of the business, as well as clearly uncovering the motivations of the seller who now wants to sell the business. While there are some 100% legitimate reasons for selling, it’s also evident that many franchisees realize they can obtain the sales and profit potential they had hoped. Bottom line you don't want to be purchasing a franchise that is somewhat in ' death spiral ' mode.



A well crafted business plan, prepared by yourself, your franchisor, or an experienced Canadian business financing advisor will allow you to see all the inflows and outflows of cash from day one.

It's a great tool for any business, but for the franchisee it's critically important as they must achieve certain revenue milestones to meet royalty fees, payments on a term loan, etc. Just having a sensible sales and cash flow forecast prepared allows you to see when you're reaching breakeven and profit goals you have set.

Seek out and speak to a trusted, credible and experienced Canadian business financing/franchising advisor who can assist you with your own version of ' private school' info when it comes to successful franchising success.



Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

7 PARK AVENUE FINANCIAL = CANADIAN FRANCHISE BUSINESS LOAN FINANCING EXPERTISE




CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com






















Stan Prokop