Traditional Versus Non-Traditional Financing - What Are the Differences?

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Business owners at either start up or sometime in the business existence need financing. Many a joke has been offered regarding financing offers when you don't need it, however if you need financing to survive that becomes a different story. Business owners must be able to assess whether they are candidates for traditional or non- traditional financing. Traditional lenders want to grow your business; they are not looking to fix your problems. When business owners have to attract additional equity the problem usually is that they have to give up a healthy piece of the ownership of the firm. So who are these 'Traditional 'lenders? It is essentially a short list:

Banks and Trust Co's
Independent Finance companies
Venture Capitalists /Private Equity Firms
Government

Let's discuss some of the basics of those traditional players. Banks are the most obvious of all traditional lenders - they focus on assets and collateral and personal guarantees of the principals. If a firm cannot meet their lending criteria it's three strikes and you are out scenario. Venture Capital firms look for healthy portions of a firm's equity. They want big gains over a longer period of time. Generally venture capital deals are very significant in dollar size. These funders are very professional and have deep pockets, backed often by large institutions.

We feel strongly that the biggest mistake firms make when contemplating venture capital is either the small size of their transaction, or that funds are being solicited for the wrong reasons. Independent Finance firms are largely collateral based. Rates are typically a bit higher than bank type rates, and specialties include leasing and asset based lending, as well as non bank working capital arrangements, commonly called ' ABL''s. Various government loans and grants are available to business borrowers. They have very good rates and good structures - the main complaint of borrowers is time to consummate a transaction. Non- Traditional Lenders: This group can be categorized in 4 categories.

Employees
Friends/Family
Private third party lenders
Suppliers

Most business owners do not realize key employees are often an untapped source of capital. They have a vested interest in their employment and careers, and often want to be considered for ownership and in succession scenarios. Management buyouts are a very common and quite successful strategy. Friend and Family is of course a sensitive area - we all know comments made around mixing friends, family and money. Care is required in this area.

Most business owners never consider suppliers as a form of potential capital. This group has a vested interest in making your firm successful - your firm is a customer, and they quite often can see the advantage of some sort of strategic alliance. Even a simple restructuring of your payments to a key supplier can bring valuable capital to your firm. In summary, there are various sources of traditional and non-traditional funds available to business owner. They certainly are not unlimited in choice, and every business has a unique need and situation that requires a special focus and assessment.

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

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop












Article Source: http://EzineArticles.com/3645694

Straight Talk On Why Asset Based Lines Of Credit Are Alternatives To Debt Financing

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The Secret Difference in Business Funding

Information on asset based lines of credit as an alternative to debt financing for Canadian business. This cash flow and working capital solution is becoming widely popular- Here's why!

Canadian business owners and financial managers continue to hear about newer forms of business financing in Canada, particularly asset based finance, and even more particularly an asset based line of credit facility.

Clients always ask us the same thing, is this a form of debt financing, and exactly what is the difference between this and a Canadian chartered bank facility . Let’s examine those questions more closely.

In general asset based finance is a broad term which in fact could refer to a number of things, We have the same problem with other terms such as working capital and cash flow, they seem to be 'catch all 'phrases for a number of types of business financing, and to make things more complicated they infer different things to different people.

So let’s be clear, using asset based lines of credit jargon we are talking about a business line of credit that a Canadian chartered bank offers, and comparing it to the new kid in town, as asset based line of credit via an independent commercial finance company.

When you firm originates an asset based credit facility you are in effect using the liquidity in your current assets ( typically those are receivables and inventory ) and in some cases pulling some liquidity out of fixed assets such as equipment and real estate . Yes, you can access cash flow on a revolving basis out of your equipment and land if in fact they are unencumbered.

We still probably have most business owners confused a bit, because they are asking themselves right now that this seems exactly what my bank does (or that you would like them to do).

So here’s the difference, asset based lenders are high specialized, they, unlike many bankers who are generalists are high focused on the actual true underlying value of your assets on an ongoing basis. By ongoing we mean daily, weekly, monthly, not long term. In the old days ( and boy do we wish the old days were here in business financing ) you met with your banker quarterly or yearly, reviewed your financials , re set the credit line, and off you went to grow, prosper and succeed.

However business banking has changed in Canada and it has become more challenging to access the cash flow and working capital you need on a daily basis. Banks are regulated by provincial and federal governments around their capital bases, what they can lend on, and are subject to concentration issues. By that we mean that a bank could not choose to lend all its capital to one industry such as autos, etc.

So the key differentiator in asset based lines of credit is simply that you are working with a company that is most often not regulated, and is staffed by specialist who has a strong handle on your asset base. That's where the good news kicks in, because you can access sometimes up to 50 -100% more in revolving credit facilities because the advances against receivables, inventory (yes inventory!) and other assets are maximized to the hilt. In essence you are working with an asset based finance lender that can provide you with maximum cash flow and work with you to give you strong insights into asset turnover and help you through special situations. And remember, this is not debt financing via term loans or additional debt on your balance sheet, you are simply monetizing your liquid assets to the maximum .

So there’s the main difference , and if this type of financing for your business seems to make sense speak to a trusted , credible and experienced business financing advisor to guide you through the next evolution in Canadian business financing .

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


Click here for 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 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop

Traditional Versus Non-Traditional Financing - What Are the Differences?

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Business owners at either start up or sometime in the business existence need financing. Many a joke has been offered regarding financing offers when you don't need it, however if you need financing to survive that becomes a different story. Business owners must be able to assess whether they are candidates for traditional or non- traditional financing. Traditional lenders want to grow your business; they are not looking to fix your problems. When business owners have to attract additional equity the problem usually is that they have to give up a healthy piece of the ownership of the firm. So who are these 'Traditional 'lenders? It is essentially a short list:

Banks and Trust Co's
Independent Finance companies
Venture Capitalists /Private Equity Firms
Government

Let's discuss some of the basics of those traditional players. Banks are the most obvious of all traditional lenders - they focus on assets and collateral and personal guarantees of the principals. If a firm cannot meet their lending criteria it's three strikes and you are out scenario. Venture Capital firms look for healthy portions of a firm's equity. They want big gains over a longer period of time. Generally venture capital deals are very significant in dollar size. These funders are very professional and have deep pockets, backed often by large institutions.

We feel strongly that the biggest mistake firms make when contemplating venture capital is either the small size of their transaction, or that funds are being solicited for the wrong reasons. Independent Finance firms are largely collateral based. Rates are typically a bit higher than bank type rates, and specialties include leasing and asset based lending, as well as non bank working capital arrangements, commonly called ' ABL''s. Various government loans and grants are available to business borrowers. They have very good rates and good structures - the main complaint of borrowers is time to consummate a transaction. Non- Traditional Lenders: This group can be categorized in 4 categories.

Employees
Friends/Family
Private third party lenders
Suppliers

Most business owners do not realize key employees are often an untapped source of capital. They have a vested interest in their employment and careers, and often want to be considered for ownership and in succession scenarios. Management buyouts are a very common and quite successful strategy. Friend and Family is of course a sensitive area - we all know comments made around mixing friends, family and money. Care is required in this area.

Most business owners never consider suppliers as a form of potential capital. This group has a vested interest in making your firm successful - your firm is a customer, and they quite often can see the advantage of some sort of strategic alliance. Even a simple restructuring of your payments to a key supplier can bring valuable capital to your firm. In summary, there are various sources of traditional and non-traditional funds available to business owner. They certainly are not unlimited in choice, and every business has a unique need and situation that requires a special focus and assessment.

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

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop



















Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698


Article Source: http://EzineArticles.com/3645694

Bank Working Capital Finance Solutions & Alternatives !

Liquidity Financing Alternatives : Available Now!

OVERVIEW – Information on working capital financing offered by banks and commercial alternative finance providers

Canadian business owners and financial managers seeking working capital finance by banks or other sources are generally experiencing growth in sales and profits. That's the good news, which is of course offset by the fact that this type of success requires additional working capital.


Liquidity has become the name of the game and ' cash is king' even today never seems like a worn cliché. Past studies by the Conference Board of Canada indicated that the key worries of business owners were working capital cash flow. (Also referenced were ' regulatory issues and competition')


So you have sales and assets... but can those assets generate working capital finance by banks or other alternatives?


For working capital purposes it's all about ' current assets ' which include typically receivables and inventory. As you invest in those two assets to generate sales your working capital needs go up, and your ability to manage and turn over those assets plays a key role in the sourcing of working capital by banks, and non bank institutions.


You should not be afraid to enter into traditional or alternative working capital solutions if you have properly managed current assets - you are simply monetizing for liquidity, and that's rarely a bad thing.


So are Canadian chartered banks the solutions to your working capital needs. Probably, possibly, maybe is our answer, meaning that if your firm is capable of meeting bank criteria for a revolving line of credit your needs typically can be met. Of more and more concern to our clients is their ability to not be able to generate sufficient financing for the sister of receivables, aka inventory!


That then takes us into an alternative for bank financing, which is the fast growing area of asset based financing, in particular asset based lines of credit. These facilities cost more, but give you total margining of the market value of your receivables, inventory, and , guess what, we'll throw in equipment and real estate if you want to temporarily margin them for working capital. And remember, your balance sheet is not taking on debt when you enter into either a bank or alternative asset based line of credit, you're simply monetizing your financials for cash flow.

The reality is that alternative methods of financing are growing more popular - yes they are more expensive, but if your firm generates sufficient margins and return on equity your ability to tap into virtually unlimited working capital can prove to be a very positive experience.
The reality of working capital finance by banks or alternative methods is always the same - you need to determine your asset turnover, there will always be times when you need a bulge in inventory and A/R to fund your growth.

Solutions for alternative working capital cash flow include:

Non bank asset based lines of credit

A/R Financing/ factoring (We recommend Confidential Receivable Financing)

Sr&ed Tax Credit Bridge Loans

Sale leaseback solutions

Inventory & Purchase Order Financing

Liquidity, that's what it's all about. Speak to a trusted, experienced and credible Canadian business financing advisor in order to ensure your traditional and alternative business financing options are first, clear, and second, available!


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

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop

Factoring and Accounts Receivable Financing Expert Tips

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Information, tips and advice on factoring and accounts receivable financing and factoring in Canada. Information focus on the importance of choosing the right firm and understanding the intricacies of this financing alternative and what pitfalls to avoid

There probably isn't a day when Canadian business owners and financial managers don't hear about factoring and accounts receivable financing as a method of financing their business in Canada. Despite its growing popularity and, we can say, relative importance in the Canadian business financing marketplace this financing mechanism is still somewhat understood.

What information do business owners need to know in order to assess if factoring, also known as invoice discounting, is a viable transaction? Also, are there mistakes and pitfalls to be avoided when considering this financing strategy?

Let's examine the answers to some of those questions. You can be forgiven for trying to figure out why factoring has increased in prominence from a time when no one had almost ever heard of it! The answer to that popularity is more simply and obvious than you might think, and its simply that Canadian chartered banks are finding it increasingly more difficult to fund accounts receivable (and inventory of course) to the extent that their customers need this financing.

When you have a situation where the actual need for financing is acute, and the benefits and flexibility seems significant it is not hard to see the rise in popularity of such a financing mechanism.

First of all, 99% of the time, factoring provides your firm with a greater level of borrowing based on your accounts receivable levels. Quite of 90-100% of you're A/R under 90 days can be financed.

So is it all good news? Not necessarily, as we are always meeting with clients that have chosen the wrong type of funding or factoring, and, even worse, find them locked into contracts they cannot get out of. That is uncomfortable for any size firm as you can imagine.

As with any newer type of financing the playing field is complex. You can be forgiven for not knowing how many factor firms are out there, how they run, what their own limitations are, and, even to a certain extent, do they in fact themselves have the funding to survive, let along finance your firm. For that reason we cannot over emphasize the need to work with a credible, experienced and trusted professional in this area.

Lets talk about some of the nuances, we can call them potential 'pitfalls 'also, of picking the wrong factoring partner. For a starter if you choose a firm who itself is not well capitalized, as we said, you might find that the financing commitments made to you cannot be honored. Canadian business has never had to think that the Canadian chartered banks could be 'out of money 'but the Canadian landscape is somewhat littered with small and medium sized factor firms that do not have the financial wherewithal to support their funding commitments in all places. That just re - enforces our idea that a trusted industry expert will guide you to the best partner for your firm.

Other issues, again, we can call them pitfalls, to look for include:

- being locked into a contract

- having the total factoring cost, or pricing, not reflected properly in your term sheet

- advance rates which don't make sense relative to the price you are paying for discounting invoices

- excessive notification and intrusion with your customers, which is very prevalent in the U.S. model of factoring (Many Canadian factor firms are branches of U.S. firms)

So let's recap. It's simply that factoring is growing in popularity. It works because it is providing funding where banks often cannot. If you don't understand who you are dealing with and the various nuances of this type of financing it becomes a burden, not a solution. Investigate this great financing mechanism, but ensure you know what you are getting into. Talking to an expert always helps - that's just common sense




Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for  Canadian companies , specializing in working capital, cash flow,   asset based financing . In business 10   years - Completed in excess of 100 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 & Contact Details :   
http://www.7parkavenuefinancial.com


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 '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop














Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/4451465

Alternative Financing In Canada : Capital & Cash Flow Sources For Business Loans Your Company Needs

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Looking for the Alternate Universe in Business Financing ? Alternative Financing 101

OVERVIEW – Information on alternative financing sources in Canada. Business loans for access to capital and cash flow come from both traditional and alternate sources of funding – Here’s why and where !

Alternative financing in Canada doesn’t necessarily reside in an ' alternate universe '. That expression is of course the ' what if ' arising from your current circumstances, in this case achieving the right capital and cash flow from sources you can depend on to grow your sales and profits. Let's dig in.

Whether its start up funding, or growing a business the landscape of Canadian business financing has changed. Top experts tell us that the three reasons alternate capital sources are growing is a combination of regulations in commercial lending and technology: The bottom line is new players and new ways of accessing financing versus traditional bank financing.

While in some cases banks are pulling back to certain types of lending new technologies are serving companies who consider themselves ' underserved'

In many case commercial finance companies are simply providing similar or complimentary services to funding previously only served by banks.

Examples of alternate financing we discuss and work on with our clients include:

Asset based loans

Non bank revolving credit lines

Sale Leasebacks

Equipment Financing

SR&ED / Film Tax Credit Financing

Receivables Financing / Factoring

Inventory Loans

Royalty Finance

Cash flow loans

In effect is a ' shake up ' of ' old school ' traditional financing. While these solutions are available to both public and private companies the majority of these types of financing revolve around private firms who want to both survive and grow their business.

Because of the number of players in the Canadian market rates are getting more and more competitive and lending structures are more flexible. It's safe to say though that non bank commercial finance firms spend the same amount of due diligence on their borrowers and in many cases they have overall lower loan losses than banks.

Not everyone today certainly understands how alternative finance firms are themselves funded - in many cases its hedge funds / pension plans, etc. The actual financing is done in 3 areas - cash flow financing, distressed loans, and direct commercial lending.

We're not 100% sure that banks are abandoning small and medium sized lending - although many of our clients certainly feel so! But post the 2008 global recession it's safe to say business financing in Canada has changed. That's why the amount of capital available via private alternative finance firms should be often appealing to business owners and financial managers.

If your business wants to explore the numerous capital and cash flow sources available via commercial alternate finance sources seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with business loans that makes sense for your company / industry.



Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :

http://www.7parkavenuefinancial.com

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 '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop

Alternative Financing In Canada : A Smarter Solution For Business Loans & Working Capital Loan Needs

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Jeopardy Category : Business Financing for a $1000

Answer : What Is Alternative Financing ?

Question : What Are My Company’s Options For When Traditional Financing can’t be accessed ?

OVERVIEW – Information on alternative financing business loans in Canada. Working capital and cash flow solutions work best when you’ve considered all your options and picked the right ones!

Business Loans in Canada come from ' traditional ' or alternative financing sources. Key point? You've got cash flow solutions from a variety of funding sources, and as in the case of our ' Jeopardy ' type question, working capital and cash flow loans exist in more abundance than ever. Let's dig in.

Historically business owners and financial managers with SME COMMERCIAL FINANCE needs worked through traditional channels, almost always being ' the bank '. Competition and efficiency in the Canadian lending markets have brought a number of new capital solutions to your business - the challenge knows which one is right for your company, and how does one access capital in this manner.

The golden solution in the past has been 'unsecured bank lines of credit ' with a focus on companies that have proven cash flow, great balance sheets, and good history for company and owners. The problem - thousands of firms, maybe yours????? can't meet all those requirements, as logical as they might seem (if you're a banker).

Numerous alternative cash flow sources have grown steadily in Canada - one of the fastest growing is in the area of receivables finance, the ability to use your sales as collateral, via your business A/R is the appeal. Some great solutions are derived from this method of financing - as an example historically your clients had to be notified of this whole process and financing. Not so fast though! Utilizing Confidential Receivable Finance allows you to generate immediate cash flow from sales revenues, while giving you the option to bill and collect with no notification to other parties.

When it comes to acquiring assets for your company (equipment, technology, vehicles, software, etc) Equipment leasing is a bit unique in that it embraces both traditional and alternative finance needs. Almost any asset can be financing with a considerable amount of flexibility when it comes to monthly payments, amortizations, pre payment, down payment, etc.

We're often asked by clients why we are so bullish on alternative financing solutions. For a starter don't get us wrong - Bank financing in Canada is low cost, has a lot of flexibility, and provides virtually unlimited access to capital. But reality sets in when many business folks come to the realization that banks prefer ' upstream ' - namely larger deals with high quality credit companies. Top experts tell us that one recent survey indicated over 40% of firms in the small to medium enterprise sector in Canada don't fully qualify for bank financing.

Solutions in alternative financing exist for:

P O financing

Tax Credit Financing (sr&Ed / film and TV)

Leasehold Improvements Financing

Condominium Corp Finance Loans

Management buy outs / acquisitions

Non bank Asset based business lines of credit

Bridge loans against real estate and equipment

Working capital short term loans

In summary, our jeopardy contestant seems to gotten it right - you have finance alternatives. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with business loans and working capital solutions that make sense for your company and industry.


Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com


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 '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop