3 Ways To Supercharge Access To Business Lines of Credit And Asset Loans

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Innovative Solutions To Working Capital Challenges - We've Got Them !

Information on business lines of credit and asset loans . Numerous strategies are available for your company's cash flow & working capital needs

Canadian business financing
has a new success story when it comes to business lines of credit and asset loans. Although it’s clearly been around for awhile we run into tens of clients who haven’t even heard of the solution, but boy do they know they have a business financing problem! The ' supercharger' we are referring to is an ABL; an asset based business line of credit.


Let's make sure you understand the basics first - and it’s actually quite simple. An ABL facility is a revolving line of credit, which, surprise, surprise, is typically offered by an institution other than a bank! That’s what really surprises some of our clients. These business lines of credit, or asset, or asset loans are credit facilities that support your receivables and inventory, just as they would if your firm qualified or had access to a Canadian chartered bank facility.


Can we add a little more ' supercharging' to the mix - yes we can. The Abl facility can actually include equipment and real estate which can be bundled into the facility if your firm has those assets for additional leverage. So what is happening is that you as a Canadian business owner or financial manager are using your ' asset rich' status and monetizing that into temporary working capital and cash flow. That’s a good thing.


So who in Canada is already ' supercharging' their credit facilities outside of the bank environment? Literally thousands of companies, including some of the largest corporations in Canada. We would point out though that the general lower end of this type of facility typically is 250k, but after that the sky is the limit with respect to transaction size.

There is a common perception out there that this type of financing is for companies that are experiencing financial challenges - and to be fair , because the program is asset based these business lines of credit and asset loans are available to firms who are doing well, and those not doing well or experiencing dire challenges . That accessibility for corporations and industries of all types is what is fueling the asset based line of credit facility growth in Canada.


It's never a perfect world, so we advise clients to expect a higher cost of funds than that of a Canadian bank facility - but at what cost would you pay more for a facility that margined all your assets, including fixed assets and real estate. When proper value is agreed upon with your firm and the asset based lender you can actually margin and utilize cash flow on your unencumbered equipment and equity in real estate.


In summary, first, you can supercharge your working capital and cash flow via an ABL facility, which is a direct alternative to any method you are utilizing today. Secondly, your liquidity could literally double if you are in a position to monetize some of your equipment and or real estate, without taking on any additional debt!

And, thirdly the facility does not exclude any type of firm from applying, so you can take advantage of Canada's newest form of financing today! , thereby accelerating your growth and profits.

Seek out and speak to a trusted , credible and experienced Canadian Business Financing advisor who can assist you with your business funding needs.




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

Asset Loans & Accounts Receivable Financing : How To Achieve Cash Flow Perfection

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Removing Scarcity In Canadian Business Financing

OVERVIEW – Information on different types of asset loans and accounts receivable financing in Canada . Which type of business funding works best for your firm?

Asset loans and accounts receivable financing are often sought after innovative financing solutions you probably have been hearing about. They are ' subsets ' of asset based lending in Canada, and are helping thousands of firms achieve that ' cash flow positive ' feeling. Let's dig in.

Despite its new found popularity it's been safe to say that alternative financing is still just finding its feet in Canadian business - growing in traction and popularity every day. We're going to clarify some of the myths around this type of funding for your company as well as focusing on key benefits.


One of the main differences of an asset loan is that typically it is financed through a non bank arrangement. You should seek this type of loan if you are unable to generate sufficient working capital to finance your business in a traditional Chartered bank environment in Canada. While Canadian banks by far provide the lowest cost and often most flexible form of capital for your business it's unfortunately not available to all those who apply!

Asset loans that encompass ' operating facilities ‘are structured, around the various asset categories of your business - the two main asset categories are:

Accounts receivable

Inventory

As well fixed assets / equipment balance sheet assets can also qualify for asset based credit lines in conjunction with A/R and inventories.

Leveraging fixed assets/equipt/real estate your company owns simply enhances your overall borrowing power. It's the true underlying current value of your A/R, inventory and equipment that provides you with true borrowing power - much less reliance is placed on balance sheet ratios, loan covenants, outside collateral, etc., those latter three items being the key part of any bank type facility, and is clearly focused on your historical and present cash flow generation.

The irony is , of course that historical cash flow ratios do not work for many companies who are experiencing temporary challenges and who require ' bulges' in working capital to fund their growth and operations.

Asset loans, and asset based lines of credit focus on the collateral. Many clients we deal with have the collateral in A/R, inventory, purchase orders and new contracts, equipment, etc but can’t satisfy traditional cash flow lending requirements. They then are the true prime candidates for an asset loan, an asset based line of credit, or at its simplest and most basic form, a receivable financing that fully margins their accounts receivable with no set limit on future growth.

So now we understand what the facility is. How does it work on a day to day basis you might ask? The answer is simply that it’s a facility that goes up and down, frankly every day, with your borrowing needs. As your receivables and inventory fluctuate you draw down against their current value. This optimizes the amount of cash flow and working capital available for sales growth and profit generation.

The security mechanisms around these facilities are very similar to any type of bank financing. Additionally approval is often much faster as a simple first charge lien is placed on the assets being financed.

Advances rates on accounts receivable and inventory are established and as cash is advanced and then repaid by your customers the cash is turned over to pay down your revolving balance. It’s as simple as that. The true beauty of the facility is that as you grow your facility grows with you.

These working capital facilities, predominately A/R an inventory based are becoming more traditional in nature ever day. If you're a business owner or financial mgr looking to eliminate the term ' scarcity ' in your business financing and growth needs seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can get your firm back on the road to cash flow perfection .


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

Sale Leaseback Strategies In Canada : Asset Loans Via The Lease Back Bridge Loan Work !

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Whatever Happened To Sale Leasebacks ? Answer: Nothing ! They Still Work

OVERVIEW – Information on sale leaseback strategies in Canada . Asset loans via a bridge loan / lease back provides valuable working capital and cash flow when you need it most

A sale leaseback bridge loan in Canada is often the answer to a working capital or cash flow shortfall. The fact of the matter is that every business, probably yours, has its own story as it relates to business financing needs. Utilizing asset loans on equipment, real estate and other assets you own (i.e. technology, etc) is a time proven fix to capital and funding needs that are often driven by short term fluctuations in your business. Let's dig in.

Hopefully everyone understands the lease back concept. It couldn't be simpler. Your firm refinances, via a bridge loan or lease an asset or assets that you already own and are unencumbered by any liens. Typically your goal is to continue to use and benefit from the asset, as title reverts back to your company at the end of the lease or loan.

Depending on what asset/assets you are refinancing an appraisal often will protect both the seller and the financier. The concept of ' fair market value ' is key in asset loan refinancing. Be forewarned though that often lenders will take a prudent approach and in some cases focus on liquidation value as opposed to market values.

Owners and financial mgrs should also understand there are some accounting issues that come with bridge loan leaseback financing. This involves your balance sheet as well as issues that might come up in original cost, book value, etc. Although the majority of business assets ( depreciate ( unfortunately !) the reality is that certain fixed assets, as well as real estate of course could appreciate and grow in value over time.

Sale leasebacks are structured in various ways, but it's a short list. Typical transactions use capital lease paperwork. Term loans via a bridge loan can also be utilized, and in the case of real estate commercial mortgages are often utilized. Remember that notwithstanding what we call the transaction, or how it is ' papered ' and ' collateralized ' the reality is that you still use and benefit from the asset , while at the same time benefiting from the cash and working capital received under the leaseback.

While there might be cheaper ways to borrow cash or monetize owned assets the reality is that asset loans deliver on raising cash when it's often most needed. Remember also that in many cases this type of strategy allows you to re-do' your overall financing strategy as it relates to debt load, ratios, and bank covenants. It's a real win win when your use of funds is used to generate further sales and profits.

If you're focused on refinancing assets via the lease back strategy seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you understand risk and benefits.



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

Lease Financing In Canada : Equipment Finance & Asset Loans

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Does Business Asset Acquisition Seem Tougher Than Climbing Mt. Everest ? Problem Solved

Information on lease financing in Canada. Equipment finance is a strategic part of asset loans in Canada. Here's why and how it works!

Lease Financing – Canada continues to view this option as a major source of capital expenditure financing in Canada financing in Canada. More and more companies are gravitating to leasing as an effective financing option for their equipment needs.

Canadian business owners and financial managers need to be aware of the types of lease financing out in the marketplace, with respect to documentation, rate, term and structure, and of course, most importantly, approval .

The term for most leases in Canada, based on our firms experience tends to be between thee and five years. With respect to what asset type can be leased, probably the better questions is to ask ‘what can’t I lease ‘? That’s is because almost every type of asset can be lease financed. Leasing firms do like to focus on equipment and assets that are ‘revenue producing ‘in nature – i.e. those assets that will generate sales and profits for your firm – that’s because the lease is of course paid from the cash flow out of those profits and sales.

Many business owners do not, unfortunately, have a solid understanding of what types of leases they can enter into. Doing your basic homework in this area will save you potentially thousand of dollars over the term of the lease, based on estimated asset values and the type of lease you enter into. (There are two types – capital and operating).

When we ask business owners and financial managers why they lease more often that not the answer comes back relating to preservation of capital. In today’s difficult financing market Canadian forms want to preserve cash and credit lines for other basic business needs.

Other firms are very focus on how the optics of the lease will affect their balance sheet – many larger firms focus solely on operating leases, where the asset remains off their balance sheet as debt, and the payments are reflected as an operating expense. When debt to equity ratios and cash flow coverage ratios are important to your firm, your bank, or your shareholders then leasing via an operating lease becomes a very effective financing tool.

Leasing tends to be ‘fixed rate’ financing. Given today’s relatively low interest rate environment it of course makes a fair bit of sense to lock into a good low rate for the next three to five years.

There isn’t a day goes by when we don’t hear of in the radio or the financial press concerns about inflation. When costs go up in an inflationary environment the business owner takes solace that his lease payments are fixed and at a respectable rate.

We spoke previously of capital conservation – more often than not leasing is 100% financing – on occasion a customer may be required to provide a first, or first and last payment, and sometimes a down payment, but in general business view leasing as 100% financing. That’s a good thing relative to cash flow management.

When we talk to business owners about leasing we frequently use the term ‘options ‘. That is because leasing lets you have a final vote in your capital expenditure financing. Properly structured leases allow you to return equipment, buy it out at end of lease, or extend the term of your lease if you feel the equipment will be used for another specific period of time. Many lessors will even allow you to go ‘month to month ‘.

Naturally in today’s competitive environment it makes sense to stay ahead of technology whether that is computers or plant equipment or rolling stock. Leasing allows owners to use the asset and ensure that you have access to newer assets if your firm needs them – upgrades are very common in lease financing in Canada.

We spoke of ‘approval ‘previously .Since most lease financing is done outside of the banks in Canada independent finance companies focused on lease financing work hard to generate an approval for your asset financing. Typically a lease finance approval can be obtained in a week or so as long as you have the required information, which is generally an asset description of quote, and the basic financial information on your company, i.e. your financial statements.

Investigate the benefits of leasing by talking to an experienced and credible advisor who can ensure your firm is maximizing those lease finance benefits!


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

3 Ways To Supercharge Access To Business Lines of Credit And Asset Loans

Canadian business financing has a new success story when it comes to business lines of credit and asset loans. Although it’s clearly been around for awhile we run into tens of clients who haven’t even heard of the solution, but boy do they know they have a business financing problem! The ' supercharger' we are referring to is an ABL; an asset based business line of credit.

Let's make sure you understand the basics first - and it’s actually quite simple. An ABL facility is a revolving line of credit, which, surprise, surprise, is typically offered by an institution other than a bank! That’s what really surprises some of our clients. These business lines of credit, or asset, or asset loans are credit facilities that support your receivables and inventory, just as they would if your firm qualified or had access to a Canadian chartered bank facility.

Can we add a little more ' supercharging' to the mix - yes we can. The Abl facility can actually include equipment and real estate which can be bundled into the facility if your firm has those assets for additional leverage. So what is happening is that you as a Canadian business owner or financial manager are using your ' asset rich' status and monetizing that into temporary working capital and cash flow. That’s a good thing.

So who in Canada is already ' supercharging' their credit facilities outside of the bank environment? Literally thousands of companies, including some of the largest corporations in Canada. We would point out though that the general lower end of this type of facility typically is 250k, but after that the sky is the limit with respect to transaction size. There is a common perception out there that this type of financing is for companies that are experiencing financial challenges - and to be fair , because the program is asset based these business lines of credit and asset loans are available to firms who are doing well, and those not doing well or experiencing dire challenges . That accessibility for corporations and industries of all types is what is fueling the asset based line of credit facility growth in Canada.

It's never a perfect world, so we advise clients to expect a higher cost of funds than that of a Canadian bank facility - but at what cost would you pay more for a facility that margined all your assets, including fixed assets and real estate. When proper value is agreed upon with your firm and the asset based lender you can actually margin and utilize cash flow on your unencumbered equipment and equity in real estate.

In summary, first, you can supercharge your working capital and cash flow via an ABL facility, which is a direct alternative to any method you are utilizing today. Secondly, your liquidity could literally double if you are in a position to monetize some of your equipment and or real estate, without taking on any additional debt! And, thirdly the facility does not exclude any type of firm from applying, so you can take advantage of Canada's newest form of financing today! , thereby accelerating your growth and profits.
----
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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/business_lines_of_credit_asset_loans.html