What Are Sources Of Business Finance In Canada

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Sources Of Finance For Business Growth / Survival/ Expansion

Sources of business finance is all about options and having business owners identify the need and importance of solutions to funding their company in challenging times . Certain times are more challenging than others .

Although it's not necessarily ' easy ' for larger corporations, or public companies to raise capital , SME COMMERCIAL FINANCE solutions  are probably even more challenging.

What Are Cash Flow / Debt / Working Capital Options For Your Company ?

Canadian business financing options come with a combination of benefits an risks.
Part of the challenge is your being able to determine whether your company needs operating capital or long term capital in the context of asset financing or permanent working capital.

When it comes to ' operating capital ' a company might still be in somewhat of a ' start up ' mode, so there are the typical expenses for starting a company - these might include product development, marketing, legal and accounting, leasehold improvements, etc.

Two critical areas in that early stage that we have mentioned have some unique financing solutions available. The Canadian Govt' SRED program ' funds a significant portion of r&d capital . As well these claims can be financed, accelerating the cash flow, via a short term SR&ED FINANCING LOAN that has no payments during the term of the loan.

Your SR&ED claim is most successful when it is prepared by a qualified SRED consultant who can maximize the benefits of the program. We cringe when business owners or financial managers tell us that the program is ' just too much paperwork ' because they are clearly forsaking a true capital injection into their business. Many of those consultants will actually prepare your claim at their own time and expense risk, offering you a contingency agreement on those funds. The bottom line: check out this program.

Leasehold improvements are always difficult to finance and Industry Canada helps finance thousands of businesses under the Canadian Govt Small Business Financing Loan program. The features and the benefits of the program , which include a gov't guarantee to your bank are numerous, and the overall rates, terms and structures it provides have even larger companies envious of the Canadian Small Business Financing Loan . By the way, we call them ' SBL'S ' !

Many clients of 7 PARK AVENUE FINANCIAL advise us they have turned to what is known as ' love money ' or ' friends and family ' loans and investments .

We're not big fans of utilizing so called ' love money ‘, and are even less enamored by clients who are actually prepared to collapse personal registered savings or mortgage their homes to start a business. While its important to have some ' skin in the game' as the expression goes its our recommendation that you incorporate your business and strongly seek out traditional and alternative financing to fund your business .

Your business has 2 types of financing available that not all business owners and their financials mgrs recognize. These two types of financing include supplier financing via extended terms, as well as offering cash discounts to client for prompt payment .

Sources Of Canadian Financing For Small & Medium Sized Companies

Receivable Financing is one of the most popular ' alternative finance ' solutions used in Canada. Also called ' factoring ' or ' invoice discounting ' it turns your sales revenues into an automatic cash flow machine . At 7 Park Avenue Financial we recommend our clients utilize ' Confidential Receivable Financing ', allowing your firm to bill, collect, and automatic cash flow your sales/receivables.

Other forms of both traditional and alternative financing include short term working capital loans, more commonly known in the past as MCA'S or merchant cash advances . These loans provide short term ( typically 12 month ) loans geared to your sales levels, and will often be in the range of 10-20 per cent of your annual sales .

Businesses requiring equipment should always consider utilizing lease financing for their new and used equipment needs. We tell clients at 7 Park Avenue Financial that over 80% of North American business utilizes lease finance.

A relatively newer form of financing known as ' royalty finance ' is a hybrid of debt and equity finance.

In Canada venture capital and private equity is generally very difficult to obtain for most start up ventures - we caution clients to not dwell too long on these options unless you're committed to a long haul in effort!

The overall combination of your company size and credit quality will tend to drive the top picks applicable to your firm re numerous sources of financing available, either traditional or alternative.

Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success for the sources of business financing and options available to your company.




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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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

' Canadian Business Financing With The Intelligent Use Of Experience '

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

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

Stan Prokop

Equipment Finance Brings A Ton Of Creativity To Your Business : Here’s How Asset Leasing Services Work

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We’ve Just Made You A Triple Threat When It Comes To Acquiring New Or Used Assets For Your Business

OVERVIEW – Information on equipment finance in Canada. Here’s how leasing services for acquiring new and used assets can benefit the business owner/financial manager

Equipment finance in Canada makes your firm a ' triple threat ' to your competition. Why ? It’s pretty basic - You can effectively stretch your dollars, extend your budgets, and acquire equipment and facilities with the most minimum investment of funds. That is simply because you are matching investment of your funds with the useful economic life of the asset - what else could make more sense. Let's dig in.

When Canadian business owners and managers are aware of the benefits of equipment finance leasing and leasing services their ability to get rates, terms and structure approvals that makes sense increase dramatically.
Equipment financing in Canada is one of the easiest methods of financing business assets, bar none. By the say, that's new and used assets, technology, software, trucks and other vehicles, factory flow assets, etc . However, at the same time the complexity of the different types of leasing and who offers lease financing can be a true challenge that you might not want to dedicate all your time toward.

So what's important about this method of acquisition - You can obtain the best leasing services and rates by focusing in on what benefits matter to your firm from a priority basis - in many cases its simply the term and rate on the lease financing .

Depending on what type of asset you are financing lease terms vary from 2 to 7 years - at the end of the day it depends on the equipments useful economic life, combined with the type of lease you structured. In Canada that is either an equipment finance lease, designating your desire for ownership, or an operating lease, designating your firm's choice to use an asset, but not ultimately own it.

Leasing is often called a 'cash flow enhancer' - little or no money down, as well as your ability to craft monthly, quarterly, or semi annual payments with can either accelerate or decelerate as you require. That's true cash flow management!


Equipment lease financing is all about benefits and use, not real pride of ownership. In most situations today assets depreciate... you certainly can't look at your investment in computers and technology and make the case those assets are rising in value!

With today's volatile finance markets, inflation, and the somewhat erratic timing of the need for your asset acquisitions isn't it a safe bet to know that the decision process becomes much easier when leasing services provide you with an effective acquisition tool.

Equipment finance leasing allows you to generate the payments you need to make for the asset from income produced by the asset - payments are made from current revenue and the equipment and assets you finance are in effect a 'pay as it earns' scenario .
Today's costs are paid with tomorrow dollars since leasing involves payment for equipment as it is used. Naturally if you chose to buy the asset outright we can make the statement that you would be using today's dollars to hand tomorrow expenses, and we advise against that in conversations with clients.

Seek out and speak to a trusted, credible, and experienced Canadian business financing and lease advisor on how you can maximize the benefits of equipment lease financing to grow revenues and profits.


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 13 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

Asset Based Lending . It’s the Superman of Business Financing In Canada When It Comes To Business Credit Lines

Debunking the 1 Business Credit Line Myth


OVERVIEW – .Information on asset based lending as a component of business financing in Canada . What type of business revolving credit line would your firm like?



Asset Based Lending – ( ‘ ABL ‘ ) There is one overriding reason why it might be your best choice for business financing in Canada. It’s kind our version of the ‘ Superman’ of business financing solution ! What is that reason? Simply that it works when other types of financing are not available or don’t fit your current financial status. Let’s dig in!

The reality is that asset based lending works for all firms in all types of industries, and is not dependent on your overall financial performance that might be the focus of a more traditional based financing. That’s a powerful statement, so let’s examine what the financing is, how it works, and answer some key questions that might help business owners and financial managers determine if this financing is the solution to many, or all of their financing challenges.

So let’s back step a bit. What is asset based financing. Focus on one key word in that phrase - assets! This method of financing simply allows you to monetize and draw on the market value of the assets of your firm. Those assets are in very predictable categories, they are receivables, inventory, equipment and real estate. If you have one or all of those your firm is a prime candidate!

In some cases this method of financing is confused with factoring. Factoring is the sale of one of those asset categories – your receivables. An asset based line of credit lends against receivables, but also includes, inventory, equipment, etc. That is the difference!

The prime difference in qualifying for such a facility is really the difference that exists when you compare this type of financing to a Canadian chartered banking relationship. That banking relationship comes with a number of requirements that are often not needed when an asset based line of credit is in fact your real and best solution. Some of those traditional requirements might be profitability, years in business, the type of industry you are in, guarantees of shareholders and owners, etc. Those qualifications are not the focus of asset based lending. However the assets are.

On a day to day basis how does this type of business financing work. It’s quite simply. You and your asset based lender determine on a regular basis, i.e. weekly, monthly, etc what your asset categories total - a borrowing based is then developed on those categories and funds are depositing into your bank account for use as working capital by your firm. In Canada a 250k facility is more or less the bottom level of this type of financing, and facilities can be arranged into the many millions of dollars.

So if you want an easy way to remember the difference between this type of financing and a bank revolving line of credit simply remember that the bank focuses on overall financial strength and cash flow, our facility focuses on assets!

Because your assets are being financing as the primary focus of this type of facility you will have to report on those assets probably on a much more regular basis , so your firm should be in a position to prepare regular reports on receivables, inventory turnover, etc. When fixed assets are being financing, i.e. unencumbered equipment you own, etc then in many cases an initial appraisal will be required. This small dollar investment though can generate thousands or hundreds of thousands of dollars in working capital. Don't Let lack of business financing in Canada be your ' KRYPTONITE'.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you facilitate the type of asset based lending that meets your needs in the Canadian business financing environment.





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 :

http://www.7parkavenuefinancial.com/asset-based-lending-business-financing.html





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


.

Analyze This! What Exactly is “ Factoring” In Canada ? Business Financing Canada Options & Cost & How To!

Be your own ‘Analyst ‘ and challenge yourself to figure out the best type of a/r finance for your firm.

Information on factoring as a business financing Canada Option . What this financing costs and how it works.



It's hard enough to worry about business financing...Canada has numerous options - receivable financing... aka: “factoring" is one of them that Canadian business owners and financial managers keep hearing about. But, and its a big but, how does this type of financing work, what are the costs involved , and what type of factoring is the right one for my firm.

It kind of seems simple when you're first told about it... your company ' sells ' its receivables to a third party finance firm - you get cash ( the same day, by the way !).

The common questions asked by clients are very predicable to us - what is the collateral for the financing, how does it work, what does it cost, and perhaps most importantly, what is the key difference between this type of financing and a bank business loan.

The clearest way to explain factoring, (also often called ' invoice discounting 'and' receivable financing ' is that you should view your receivables as the essential collateral for financing of this type.

When you sell something you of course have agreed on a ' price ' with the buyer. In Canada the ' price ' of this sale is very predictable; it ranges between 1-3% per month. Your ability to have the receivable collected in a more timely fashion therefore reduces your cost of financing.

A good way to think of how this financing works is simply to think of it as a way to ' assign’ the rights you have in that A/R to the buyer, the finance firm.
Since you have received the funds for the sale immediately on invoicing your client the right to all the funds of course belongs to the buyer of your A/R.

So all of that is pretty basic, right? Where then are some of the... lets call them ' confusion points ' in factoring and business financing Canada A/R finance. A couple of key issues come immediately to mind - the finance firm holds back on each advance a certain portion of the funds - this is called the ' holdback'. If you are working with the right firm, and believe us there are some wrong ones! then the holdback will be refunded to you as soon as your client pays. The holdback you can typically expect to receive is in the 10 per cent range ... any more than that should be a strong negotiating point on the overall facility you set up.

Oh yes, what about the cost of the financing itself. Can that be negotiated? There are some quick ways to determine if you can negotiate better pricing on your facility. In factoring and A/R finance the cost often depends on a couple basics - the size of your monthly A/R, the general quality of your accounts receivable, and your own firm’s general financial condition.

The good news is that if your company is experiencing financial challenges of any sort you probably still quality for business financing Canada factoring. However, the better you are perceived as doing will often affect your ability to negotiate a better rate.

However you might perceive the cost of factoring, you need to always remember that the use of immediate fund allows you to grow your business - in other words you're finally not the bank for your clients, and that’s a good thing. S

So view factoring and its cost in the context of the tradeoff between growing and expanding your firm with benefits that exceed the cost of this type of financing. Naturally you can choose to simply self finance your firm, but why not grow your business y using external working capital financing generated by factoring. It's easier to obtain than bank financing, and can be viewed as a long term or a temporary strategy.

Speak to a trusted, credible and experienced Canadian business financing advisor who can steer you in the right direction on this valuable type of financing in Canada.


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