Business Refinancing In Canada: Your Turnaround Finance Fix Via An Asset Loan And Other Solutions

The Rise Fall and Revival Of Your Company : What would Henry Frick do?

OVERVIEW – Information on business refinancing solutions and strategies in Canada . Turnaround finance comes via an asset type loan solution or other forms of monetizing assets

Business refinancing solutions
are often required when your company has been in the rise... and then unfortunately fall situation. Turnaround finance typically requires an asset loan of some type, in combination with performance changes in your business. Let's dig in.

Challenges in the turn around abound, especially since in a turn around .especially when it comes to SME COMMERCIAL FINANCE needs, new equity/owner capital is often difficult if not impossible to acquire. So that lack of money must come from operating assets and sales. The ability to maintain sales and increase profits is of course also key.

Safe to say that owners/mgrs have to recognize the issues that arose prior to a turnaround need - they include issues such as costs in the business, mgmt/employee performance, or lower sales. Naturally those types of issues, combined with a poor asset and sales finance strategy are typically the key issues.

Key signs of a poor finance strategy being in place are your inability to buy new needed assets , inability to meet fixed cost commitments, and loan and lease default scenarios.

Many businesses get to the ' crisis ' situation without ever having prepared a proper business plan and cash flow plan. Suffice to say that now is the time to do that! That financial forecast and plan will determine where turnaround finance is needed and how it could be achieved. Those type of efforts will determine where cash will come from and how and when it will be used.

There is a great story around a fellow named Henry Frick - In 1871 he borrowed through good and bad times to acquire and grow businesses. His secret? It might well come from the actual bank notes from Thomas Mellon of Mellon bank - a bank U.S. money center bank . Those notes? They read ' land is good ... the ovens are well built, manager on job all day... keeps books in evening... knows his business’!

There often emerges a clear ' pecking order ' in who or what needs to be paid and addressed in a business refinancing. That list of key players is pretty short - government obligations, key suppliers, and utilities/rent!

For those customers with bank facilities in place they are of course forced to address the turnaround when a demand loan is called. An asset loan is often the solution that ' takes out ' the bank and provides an interim financing solution.

Turnaround finance Solutions that are available are diverse - They include:

Asset based bridge loan on assets

Asset based revolving credit facility - combines A/R, inventory and equipment and real estate into one business credit line

Tax credit finance

A/R financing

PO / Contract financing

Sale leaseback lease/loan on unencumbered assets

Sales/Royalty finance

If your business is facing operating losses and other issues requiring business refinancing seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
for help in asset loan and cash flow 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 100 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS REFINANCING AND TURNAROUND EXPERTISE

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

3 Obvious And 1 Not So Obvious Reasons To Consider Canadian Lease Equipment Financing For A Capital Asset Loan

How To Capitalize On Equipment Leasing In Canada

Information on lease equipment financing in Canada and what solid benefits Canadian business owners and financial managers can achieve via a capital asset loan financing program .


It's always a little easier to consider the obvious in business and business financing in Canada. Occasionally though we think it’s prudent for clients to ensure they consider all the benefits of certain methods of financing, some of which might not be so obvious. Let's clarify with respect to lease equipment financing in Canada, and why and asset loan or lease for capital financing purposes is often head and shoulders above any other financing alternative .

It's a given that you want to ensure any financing decision has solid reasons and benefits prior to entering into the transaction. In Canadian equipment finance the ability to finance between 90 - 100% per cent of the asset, as well as additional miscellaneous costs is clearly a huge, and obvious benefit.

In the past we have often referred to lease equpment strategies with a phrase we always thought was quite powerful... it’s simply as follows - Asset loan and capital lease financing helps you overcome ' obstacles to innovation '.

Because quite often when we sit with a client the cost of an asset acquisition is in fact the largest obstacle to innovation and growth within their firm. Simply put, if we had all the capital we needed we probably would always by the best (most expensive) fixed assets for our business.

Let’s get back to that 90-100% financing. Although many lessors tout the fact that lease finance in Canada is 100% financing the reality is that on many occasions clients are asked to put down a down payment of security deposit on the lease finance transaction. We would point out though if your firm has very good commercial credit and financials and cash flow that support your transaction you should in fact focus, if not demand! 100% financing.

So, on to our 2nd obvious reason to focus on lease equipment financing asset loan/lease. It’s all about the term. The term of course refers to the length of your lease... it can be long to ensure lower payments and reflect the assets useful economic life, or it can be shorter it means getting an approval vs. not getting one. We point out to clients that ,on balance, lease terms of less than 2 years to not make sense for the lessor... so don’t focus on too short a term!

We heard a rumor the other day... that being that ' cash is king’! If you subscribe to that rumor then equpment financing is for your firm, reducing cash flow drain and be adjusted for seasonality, delivery issues, or simply staggering payments to ensure your match benefits of the asset with cash outflows.

Those all 3 very obvious, and often discussed benefits of asset financing via leasing in Canada. We have focused on who you are dealing with, which is one of the hundreds of equipment finance firms in Canada. So our ' not so obvious ' point today is simply that by not dealing with banks , insurance companies, hedge funds, etc , all of which might hold other security over your firm you are in effect freeing up the business credit than any firm so badly requires these days . And you can further expand that business credit by considering off balance sheet financing via operating leases, which make perfect sense for larger ticket items such as computers, aircraft, etc.

So as we have said, there are a number of ' economic ' benefits to leasing equipment in Canada. To further explore some of these obvious( and not so obvious!) benefits to your firm consider talking to an experienced Canadian business financing advisor who has a trustworthy, credible and experienced reputation in Canadian equpment finance .




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 7 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 :

http://www.7parkavenuefinancial.com/lease_equipment_financing_asset_loan_capital.html