Get Rid Of Business Line Of Credit Phobia . Why Asset Based Lending Via An ABL LOC Works !

Business Credit Lines In Canada . Are There Options?



OVERVIEW – Information on the business line of credit known as ABL Asset Based Lending facilities . Why this credit facility eliminates business financing fears.



The business line of credit. Many entrepreneurs often fail to achieve the financing they need if not for the reason that they simply have a bit of a phobia

around the issue. We're told that a phobia is an ' irrational fear of a specific object or activity ... leading to a compelling desire to avoid it '.
Unfortunately , we can't afford to Not address business financing!

Could that be the case with many Canadian business owners and financial managers? In discussions with them we certainly think that might be the situation . Let's try and cure that phobia. And the way in which we think we can demonstrate that is to show you that your firm is in fact very viable when it comes to business financing - it's just that you might not know where to go and what sources of lending might be optimal for your firm.

Enter the ABL , which is an asset based lending arrangement that mirrors in daily activity a commercial bank line of credit - its simply a bit easier to achieve and in many cases delivers more . That's what Canadian business financing is all about, right?

We often feel that Canadian businesses don't achieve the bank financing they need because the requirements of such a facility, as low priced as it is, are simply too narrow to allow your business to ' fit in’. Your firm needs to fit what the finance and credit folks call ' THE BOX '- If you don't fit you don't belong.

Bank commercial credit lines, as opposed to our ABL solution , require that you can produce sound financials- Repayment is clearly linked to your balance sheet and cash flow. While the approval process in Canadian banking can only be described as somewhat... shall we say ' rigorous' (as opposed to painful?) The reality is of course that the low rates associated with bank financing alone make that journey often worth it and Canadian banks are among the best on the planet .

So if you can pass the financial tests such as debt to equity, cash flow coverage, profitability, etc it’s definitely with it to purse Canadian chartered bank lines of credit. In the old days we spoke of the 5 C's of bank credit approval. They included your personal character and finances, cash flow capacity, collateral company and personal, capital or equity, and, dare we finish with ' comfort and confidence ' by the bank in you or your company.

But what happens when your business can't meet bank criteria? The reality is that an asset based lending solution, commonly known as an ABL line of credit is in fact the perfect solution you were looking for - you just didn’t know it existed.

Asset based credit lines are more often than not delivered by commercial non bank finance companies. The facilities revolve, just like the bank line, and the total focus of getting approved revolves solely around the value of the business assets. And what are those assets? They include receivable, inventory, fixed assets, and even real estate if that is in your company asset mix.

The ABL facility is most appropriate for firms that have assets, can’t get Canadian bank financing, and are experiencing situations such as high growth, turn around, temporary under capitalization, etc.

Asset based lending lines of credit are sometimes priced the same as bank lines if you have a large facility in the 5-10 Million dollar range, but the majority of facilities range from 250k and upwards , and are priced higher thank bank rates. If you have good assets and can produce proper financial reporting on items such as receivables and inventory you are in a position to get approved - fairly quickly all things being equal.

Have we cured that phobia about being able to get a proper business line of credit in place? We hope so. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs, and give your real scoop on ' ABL '.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS LINE OF CREDIT EXPERTISE




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/abl-line-of-credit-asset-based-lending-business.html




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

Cash Flow Financing ! Problems And Oh Yes Business Solutions !

Two Great Tips On The Cash Flow Conundrum!

Information on cash flow financing solutions and techniques for the Canadian business owner and manager . Problems can be solved via internal techniques and real world working capital tools.




Cash flow financing for your business. We're sharing some solid solutions and tips for business finance problems and challenges .. i.e. Solving The Conundrum!

Whether your financing challenges are temporary, or seem to be occurring all the time the Canadian business owner and financial manager is always looking for a fix to that dilemma. So our focus on strategies and straightforward business financing methods that... you got it... fix the problem.

Tip # 1 - Don't pay anyone! Well we're kidding of course, but a better way of saying what we intended to mean is that you can manage a lot of your cash by using an internal solution... payables management. The trick of course is having key vendors and supplies that value your business and want to work with you to keep your business - somewhat of a classic win / in scenario, don't you think.

The ability to turn your stated 30 day terms into 60 and 90 days with your vendors allows many companies to actually become self financing. That's almost cash flow nirvana - not borrowing and growing your business. It's no secret that some of the largest companies in the world pay firms such as yours slowly just to optimize their corporate cash flow. The nerve of those guys.

Our final point on this technique is simply that you don't want to end up ruining a key supplier / vendor relationship, so a proper sharing of the facts keeping in mind the value of the relationship is critical.

Tip # 2- Accelerate collections, finance receivables, and better yet... do both! When we talk to clients about their cash flow financing challenges it’s often about their customers owing them money and not paying. The internal things you can do to fix this problem are of course to be more firm with collections and enforce your terms. Big companies hold shipments to their clients, so you should not be afraid to also. We'd also consider raising prices to clients that don't pay. Just keeping a constant watch on your days sales outstanding or collection period is going to make you a true ' Master' of business solutions and solving those working capital problems .

You might also want to offer a discount for prompt payment.

One key point here is that you need to have some decent gross margins when it comes to offering a typical 2% discount for prompt payment. But don't forget also that you can take those same funds you receive and take discounts with your own suppliers. Another key concept here is to understand your borrowing rates and bench mark them against discounts you might offer for prompt payment

Solutions for cash flow abound in Canada. It's all about picking the right one for your firm. They include:

Receivable finance
Working capital term loans
Asset based lines of credit
Business commercial bank facilities
Tax Credit Monetization
Supply Chain Finance
Securitizing your receivables or contracts

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business problems via real world solutions.

7 PARK AVENUE FINANCIAL
CASH FLOW FINANCING EXPERTISE



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/cash-flow-financing-problems-solutions-business.html






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

Confused About Financing Costs And Rates ? Here’s The ‘ Skinny’ On Business Loans And The Real Cost Of Finance

Canadian Business Financing - Rates, Costs and Implications


OVERVIEW – Information on the cost of finance in Canada . Financing costs, either rates or implications of business loans and asset monetization play a critical role in the business decision




Financing costs and ' rates’ re: business loans are top of mind for Canadian business owners and managers searching for some sense of stability and reliability in running their business as bench marked against the cost of finance. Let's share some ' skinny '

around these issues.

A good place to start is to give some solid thought around whether your financing will cover off the current need, and take you into the intermediate and long term when it comes to growing or expanding your business.

There are about 6 ways to ensure your business has the short term financing you need. Let's look at some of them... with a focus on ... COST!
The average business owner can be forgiven for not viewing their supplier as a form of financing, along with considering the benefits and costs around this continual relationship.

Let's use the example of a supplier who offers your firm payment terms of 2/20 net 60. That of course means that you can pay them in 60 days, or takes a 2% discount if you pay in 20 days. If you use a sample $ 10,000.00 invoice the arithmetic around that transaction will tell you the opportunity cost of not taking that discount is almost 19%!

By the way... Opportunity cost? It's the cost of passing up the next best choice when making a decision.

In Canada bank loans offer the lowest cost of finance when it comes to business borrowing. In the current low rate environment of 2012/2013 typical borrowing rates are in the 4-5% range. The challenge in Chartered bank facilities is getting approved, as well as ensuring you have the right facility in place. Those include: unsecured cash flow loans, business credit lines, installment loans and term loans for the purpose of asset purchases.

Probably the best advice we can give clients in reference to bank loans and their costs is to simply understand the alternatives, especially if you either don't qualify or are in the position of having your loan called. I.E. The Special Loan scenario!

A lot of the financing that banks provide in Canada can also be achieved via commercial finance firms. While rates might be higher and more emphasis is placed on collateral you can often achieve all the financing your firm needs. By the way, why are rates higher from commercial finance firms? Probably because they get their funds from the bank!

Receivable financing in Canada is more common place everyday. Many misconceptions exist around financing costs associated with ' factoring ‘. It's also important to remember that A/R finance allows you avoid long term debt and giving up equity - those are important considerations. If you understand the miscellaneous charges, the advance rate, and the discount rate on Receivable Finance in Canada you may well embrace the benefits, which are:

Immediate cash flow
Bulge financing
Growth potential
Strengthened balance sheet


Two other subsets of short term financing in Canada are Inventory finance and Leasing. Inventory finance is generally done within the context of an asset based credit line, which comes at higher than bank rates.

Leasing/equipment financing in Canada offers competitive rates for all asset classes commensurate with your asset class and overall credit quality. The industry has a solution for every asset, and rates from 4-24% cover the spectrum of asset financing in Canada. While you will probably pay more for leasing than a bank term loan the appeal is staggered cash outlays, obsolescence protection and fewer financial covenants /restrictions.

So our bottom line today? Simply that each category of financing required comes with a different measure of cost, risk, liquidity and in many cases, restrictions. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with the cost of finance for your business.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS FINANCING EXPERTISE

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/financing-costs-cost-of-finance-rates-business.html






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

Why You Should Care About Business Solvency! Business Cash Flow And Working Capital Solutions In Canada

Understanding And Solving Canadian Business Solvency


OVERVIEW – Information on tools , techniques and solutions around business solvency in Canada . Cash flow and working capital tracking is easier than you think !



Business Health - We're pretty sure dedicated business owners and financials managers care about their business health, and solvency, as much as they care about their personal issues.

And the results of not caring about overall financial health and liquidity in your business are of course disastrous, up to and including business failure. It also goes without saying (but we’ll say it!) that you're in a position to survive and grow when you have business working capital and access to solutions that provide those funds.

The symptoms of poor cash flow should be obvious to every business owner; they include:

Vendor / supplier concerns
Slow receivables
Faulty financial reporting

and on it goes!

When you are on top of things and you have the ability to attract financial solutions. That's a much better position to be in than being ' hat in hand ' in front of a bank or a commercial finance company when your firm is probably closer to ' dire straits ' than poised for growth .

What then are some of the solutions for business working capital and solvency? They in fact are more numerous than you think, and they often can be used in combinations. They are:

Receivable finance
Sale Leaseback Financing
Asset based bridge loans
Comprehensive non bank asset based lines of credit
Purchase order / Supply Chain Financing
Chartered bank business credit lines/term loans

The challenge of course is to ensure which solutions suit your company and when. Here's where you need to take the ' big picture ' outlook as to the business working capital solutions that more perfectly suit your firm’s situation.

To ensure which solutions work you of course need a solid handle on meaningful information from your financials. Unbelievably not every business owner/manager knows how to either pull together the data, or interpret it.

Simple relationships in your financial statements make your banker or non bank lender somewhat of an ‘oracle '

when it comes to predicting business failure. We recommend to clients that they become their own oracle!

Business relationships of the numbers in your financials are both long term and short term. The common word for these relationships is ' ratios’, we prefer our own terminology of a ' relationship '.

When you look at some of the shorter term ' relationships ' in your financials you are really looking at two things; and they are so obvious most owners/managers can't see the forest for the trees.

What are those two things? They are ' changes' and ' movement '. Just keeping track of simple changes in operating expenses, day’s sales outstanding, inventory turns, etc will make you the oracle of your business future. And whether it’s a balance sheet or income statement relationship we assure clients there's meaningful data in them there numbers!!

When you both have a handle on, and care about your cash flow solvency the solutions to growth and operations challenges will become a lot more clearly.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with Canadian working capital solutions.

7 PARK AVENUE FINANCIAL
CANADIAN CASH FLOW FINANCING AND BUSINESS SOLVENCY SOLUTIONS




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/business_solvency_cash_flow_working_capital.html

Are You In The Game ? Confessions Of A Cash Flow Manager On Time Tested Canadian Business Financing Solutions

Are You Happy Solving Your Firms Cash Flow Equation?


Information on cash flow financing alternatives in Canada . Business working capital solutions.



Call us biased but our preference on cash flow financing for Canadian business is to learn from an expert. The rookie thing never seems to work ..! One of the most famous industrialists of all time once said ' the only irreparable mistake in business is to run out of cash ... when you run out of cash they take you out of the game.

No Canadian business owner or financial manager wishes to be ' taken out of the game ‘. So lets look at some of the analysis, as well as ' the fix ' when it comes to financing your working capital.

We always are a little of wary in initial discussions with clients around how they are doing when they are only focusing on just profits and sales, which are great by the way . But the juggling act around sales growth and profits, to use one analogy, also revolves around the spinning knives of cash on hand.

Confusion reigns supreme around even the terminology on cash, cash flow, and working capital. Naturally actual real cash on your balance sheet, i.e. your bank account, is your business lifeline .Cash flow on the other hand revolves around the changes in your working capital accounts, which, by the way, includes payables also.

Your working capital, on the other hand, is really the value of our working capital accounts, ie receivables and inventory, and how they relate to your payables.

Financing solutions for Canadian business working capital are numerous.

Cash flow and working capital solutions include:

Bank operating lines of credit

Receivable Financing

Working capital term loans

Unsecured cash flow loans

Asset based lines of credit

Supply chain /P.O. Financing

Which of these solutions work best for your firm? Although sales generate cash it’s used to support your vendors, payroll, utilities, etc, and etc. ! Those sales however convert to receivables, and those can be easily monetized by all of the solutions we note above, with the exception of the working capital term loan.

Term loans are debt, and if you don't necessarily want to take on more debt and interest expense its more often than not best to use financing that converts inventory, receivables, and purchase orders to cash .

Oh and by the way, that sure beats putting more equity into your company, or selling assets. (Selling non performing assets or looking at a sale leaseback is not necessarily a bad thing by the way).

Remember today’s motto though, don't run out of cash or you ability to access cash. The most serious signs of cash flow doom are usually quite obvious: serious losses, inability to access traditional financing, lack of assets to finance new cash flows.

Can we learn anything else from those confessions of a cash flow manager? Understanding the past sometimes help, so knowing your historical peaks and valleys is a good thing, and your ability to plan and demonstrate future cash flow needs sure helps!

And the tools you'll need? Very basic: cash balance and aged receivables and payables. A look into future sales projections sure helps.

In summary, while stretching suppliers or bringing in new ownership and equity work, they aren’t desirable. Sales are good, in fact they are great, but focus on financing solutions and mgmt tools that convert working capital assets to cash.

Speak to a trusted, credible and experienced Canadian business financing advisor on your firms ability to achieve the right type of cash flow financing to compliment sales and .. hopefully, profits.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS CASH FLOW FINANCING EXPERTISE



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/cash_flow_financing_business.html

Why Is AR Finance So Inexpensive In Canada . Factor Receivable Funding For Your Business - Not What You Thought!

The Devil Is In The Details Apparently When It Comes To Financing Your A/R In Canada


Information on AR Finance in Canada . How To Truly Understand Cost Of Factor Receivable Funding For Your Business.


Are you nuts? AR Finance... inexpensive? That was the reaction of one client when it came to discussing factor receivable funding in Canada for business.

The reality is that receivable financing in Canada is probably one of the most misunderstood areas of business financing when it comes to benefits, mechanics, and, as we said, cost.

We'll come to the issue of ' cost ' in a bit - let’s make sure we have got the benefits and mechanics under our belts first! AR Finance is Canada is, simply speaking, flexibility for short term working capital financing. It's mechanics, though relatively simple, provides Canadian business owners and financial managers with a large measure of cash flow and working capital when it comes to new orders and contracts, increased need for working capital as inventories and receivables grow, and , simply speaking, keeping your daily operations running smoothly.


It's of course your A/R that provides the backbone behind the capital that you need, allowing you the leisure of actually, as they say, working on your business, not in your business... and boy is that a difference as we all know.

One key benefit either overlooked or misunderstood is simply the fact that your factor receivable funding facility has the ability to grow as your business revenues grow.

And don’t forget , the key concept of AR finance in Canada is that your company isn’t taking on debt when you finance your receivables ; you're simply monetizing one the most key assets of any business, your receivables. A good analogy is that you are basically turning a Business To Business model into a cash business. As you sell, and invoice you receive cash the same day. Your facility of course fluctuates exactly similar to a business credit line, so factor receivable funding for your business goes up and down every day, just like a bank line of credit. You are of course paying for only what you use.

Many miscellaneous benefits accrue to your firm when you consider this method of receivable financing. They include:

- Ability to only draw down the amount of financing you need - It's a pay per use method for working capital

- Same day financing of your sales revenue

- Typical advances for A/R funding are 90% of your receivables

- A good facility will have per diem pricing

- Little or no emphasis on personal guarantees

- All North American receivables can be financed, and foreign A/R is financed via credit insurance which can be easily arranged


So, back to our client who said' ARE YOU NUTS ‘? As it pertains to AR costs of course!

Your business should be focused on profit and turnover. By having a constant supply of working capital and access to cash flow you have the ability to increase sales and profits. Many firms also have the ability to achieve overhead reduction as a competent AR partner firm performs these services for you.

Many clients we have spoken to have had to turn away sales volumes and large contracts because of financing inability .We see that all the time. With AR Finance you are now in a position to basically accept unlimited orders and contracts.

Do you believe you could enhance relationships with key suppliers by paying those cash or taking their offered discount? We sure think you could, and that’s a key benefit of factor receivable funding. That type of business activity also enhances your overall firm’s commercial credit rating, which should be important to you in the long run.

Got a lot of time on your hands as you run your business? We sure don’t, and you'll find that you'll be focusing a lot less on seeking external financing if you've got a solid A/R funding business solution in place.

So expensive? We let clients decide. But if you want to see how the true cost of AR finance fits into your business speak to a trusted, credible and experienced Canadian business financing advisor today.

7 PARK AVENUE FINANCIAL
CANADIAN A/R FINANCING EXPERTISE

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.webpage66.com/ar_finance_factor_receivable_funding_business.html

Got Your Cash Flow Financing Priorities Straight? Working Capital Business Solutions

Canadian business financing solutions for growth and operations


Information on cash flow financing management in Canada. Access to business working capital comes from outside.. and within!



Do you have your cash flow financing priorities straight? Pretty simple question, right? But when we talk to clients about what's important to them when it comes to business working capital they tell us they spend a lot of time on this issue, but are concerned that they don't have the resources or information the need to get the help they desire.

And when it comes to size, it unfortunately counts; because small and medium size firms in Canada just don't have the same access to ' financing talent ' for the liquidity to fund their operations. And it’s a two edged sword, gravitating between survival and growth.

What Canadian business owners and financial managers can do is to in fact spend their time a bit more wisely on what solutions make sense for their firm. And by the way, some of those solutions, as we'll discuss, are internal, not necessarily external! The obvious ones are spending properly, trying to self finance from within (yes you can by the way) and ensuring you have got some controls and tools in place to manage your cash flow financing needs and information.

After 2008 and 2009 world wide financial debacle many Canadian firms simply hunkered down and managed their availability of business working capital credit, but boy was it tough.

Growing your business requires working capital. We (hopefully) all agree on that. You need to have solutions in place to finance inventories and convert receivables into access to cash.

As we have always maintained you don't need to be a rocket scientist to manage working capital and improvements to it. One business pundit describes it as a ' block and tackle approach '! That approach is as basic as it comes - collecting money from your suppliers, generating better terms with your vendors and key suppliers, and turning those inventories.

That's what we were talking about before when we talked about the internal solutions, as opposed to the external ones. At that point you're simply focusing on your ' day’s working capital ' and your collection period days. That A/R and inventory that you carry should be at the top of your cash flow priorities list.

One problem clients constantly talk to us about is that as a small and medium size firm you have little negotiating power, perceived or otherwise, with larger customers and vendors. The big guys tend to want better terms if they are your customer, and they want prompt payment if they are your supplier. Talk about the proverbial ' rock and hard place!

That's when external cash flow financing solutions come into play in Canada , They include bank facilities, asset based lines of credit, receivable financing, inventory finance, supply chain financing, and monetization of tax credits and unencumbered assets .

Want help with some of those cash flow priorities. Speak to a trusted, credible and experienced Canadian business financing advisor today





7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS CASH FLOW FINANCING EXPERTISE




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/cash_flow_financing_working_capital_business.html

Looking For Help For A Business Financing Acquisition In Canada ? Managing Mergers With Finance Solutions That Make Sense.

Looking for Merger or Acquisition Financing?

Information on financing mergers and acquisition situations in Canada . M&A business finance solutions.


Financing an acquisition in Canada. Or is it a Merger that needs a solid business financing solution? There are probably a good handful of technical or financial differences around the differences between a merger and an acquisition, and we of course all know it’s rare that you would have a perfect alignment of the planets - two companies that have identical business, equal asset strength, and income statements that are perfectly complimentary. That's the perfect world.

But Canadian business owners know it's not a perfect world and that such ' perfect storm' scenarios exist.

We can also make the case that years ago mergers and acquisitions were financed on the basis of asset values. These days it's safe to say there are lot of goodwill and analysis of future cash flows that play a large part in the total financing equation.

When we meet clients and talk to them about their M&A needs a few basic reasons always emerge as to some essential deal basics? In some cases the firm being acquired might be in somewhat of a 'death spiral ' due to mismanagement or its inability to wrestle with present economics. Heaven forbid, but we also even see crisis type situations.

Other scenarios that are part of the M&A profile includes owners ' cashing in' , family business scenarios, and growth opportunities that can't be realized by a firm without additional help, or financing.

So what do you need to consider when it comes to financing that acquisition or merger? It's important to understand both your internal and external resources, and to ensure you understand the different options you might need to complete an appropriate financing. We say ' appropriate ' because we often seen mergers and acquisition financing that have been the solution, but far from the right one.

This is exactly the right time you should be looking at your team - which might include a Canadian business financing advisor, your lawyer, accountant, etc. Here's where issues that might seem over technical to non financial types can hopefully be clarified in a common sense manner. They might include goodwill valuation, deprecation policies, asset valuations, etc.

Although you need financing for the merger it’s also important to understand what the borrowing capabilities will be for the new entity, and what form they might take. Solutions such as asset based lending, the gov’t CSBF loan, subordinated debt, and vendor take backs can all play a key part in a successful acquisition financing. It's precisely at this point that issues such as leverage can make or break ongoing business success. Putting one ' over - borrowed' company together with another leads to... well... you know... business failure.

For help in managing thru and completing an acquisition or merger speak to a trusted, credible and experienced Canadian business financing advisor.





7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS ACQUISITION FINANCING



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/financing_acquisition_finance_mergers_business.html

Is ABL Financing The Radical Change You Need In An Asset Based Credit Line For Your Business

The Canadian Asset Based Business Credit Line


Information on ABL financing in Canada . Why is the asset based business credit line a game changer for Canadian business .




ABL Financing is a ' game changer '. Let's take a look at some of the reasons why and the background around the business asset based credit facility.

If you're the financial manager or business owner of any sized business in Canada it would appear you're more often than not searching for working capital. The assets in your business can offer that flexibility when they are turned into a business line of credit facility that the financial folks term an ' ABL '.

The good news is that more and more firms in Canada, everyday, discover that the flexibility provided by this financing arrangement. When Canadian firms can't find a suitable traditional bank lending arrangement for working capital needs ABL emerges as a solid solution of choice.


All your firm needs with respect to qualifying for such a facility is any mix of accounts receivables, inventories, equipment or real estate. A typical ABL facility is a combo of 2 or more of these asset categories. The asset based credit line in fact gives the business increased borrowing flexibility versus a cash flow based solution from, for example, a bank .

Why is that? It couldn’t be simpler, in that assets such as receivable and inventory are margined at higher values than they are with the Canadian chartered bank offering. Again, its collateral, not ratios and covenants that count when it comes to an asset based credit line.

Is there a quick way for the Canadian business owner to rationalize a move to ABL? While no financing methods is always perfect , all the time the appeal of ABL is that it does not really focus on covenants - really the only thing that drives borrowing is the overall liquidity of your assets, whether you are growing or not.

Another key positive is that an asset based line of credit can pretty well increase automatically as your business grows - That’s because your assets would tend to grow at the same time.

We've said no single method of business working capital financing is the panacea of perfection. So business owners should realize that Asset based credit typically involves more month end reporting on those assets.

And while most asset based credit lines cost more than bank financing they can, on occasion be actually cheaper.

The ABL market in Canada consists of a fragmented bunch of firms, some niche based and Canadian owned, while others are divisions or subsidiaries of U.S. banks and mega corporations. The industry services companies of all size, from start ups to major corporations. It should come as no surprise that some of the largest and well known corporations in Canada and the U.S. use ABL financing so don't feel you are doing missionary work in business financing! ABL is here and it just might be the radical ' game changer ' when it comes to financing your firm.

Speak to a trusted, credible and experienced Canadian business financing advisor on how asset based credit lines can fund your daily operations, acquisitions, and growth.







7 PARK AVENUE FINANCIAL
IS AN EXPERT IN CANADIAN ASSET BASED
LINES OF CREDIT




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/abl_financing_asset_based_credit_line_business.html

Can ABL Financing Be Your Business Finance Peace Of Mind ? Getting Comfortable With A Revolving Credit Facility

Is An Asset Based Line Of Credit For Your Firm . It May, and May Not Be!

Information on ABL Financing in Canada . Why an asset based revolving credit facility might be your business savior .


ABL financing, basically a business revolving credit facility, has the ability to provide a significant amount of ' peace of mind ' when it comes to the worries and challenges that confront business owners and financial managers.

And that doesnt matter whether you are a start up or a major Canadian corporation. And everything in between. Because that's who is using asset based lines of credit these days.

But is ABL finance right for your firm? Let’s discuss, and recap. Companies who consider an ABL facility find themselves constantly challenged by understanding what is happening to their cash flow.

These days you may, or may not have a current secured lender in place to handle those financing challenges we're talking about. One aspect of deciding whether to go the Asset based revolver route is often some sort of seasonality - we can call them ' bulges ' in your business.

That seasonality, those ' bulges ' drastically affects cash flow and income, which can fluctuate wildly in any company. The asset based line of credit allows you to generate cash flow during those bulge periods, while at the same time allowing you to keep your operating and debt service obligations up to date.

That's of course critical when you are wrestling with fluctuating working capital situations.

Timing of cash flows in business is paramount. The three things that almost always affect your timing in working capital and cash flow in business are receivables, inventory, and , on the other side of the balance sheet, payables.

Asset based lending via an ABL financing business line of credit often can provide the solutions when the door is closed at Canadian chartered banks for firms that don't meet bank criteria. It's a case of a business having a high potential for viability and growth, but has less than stellar income statements and ratios typically required by our banks in Canada.

So how does a company get the door open to financing when they have been locked out by more traditional solutions? The answer is an ABL revolving credit facility, focusing on assets that when properly monetized, can enhance the cash flow situation.

ABL therefore becomes a ' smoothing out' solution because you draw down on cash flow, daily, as needed, based on your assets and sales/receivables. It also can be used; by the way to assist in the financing of new fixed assets, or even buy a competitor .It's those assets that help the strategy work.

ABL financing works because it applies higher borrowing formulas to your business assets. Companies that are in service or non intensive capital industries will always be a bit challenged in an ABL revolving credit facility simply because the main asset monetized are only receivables.

Other challenges in getting a proper asset line of credit in place might be the type of inventory you carry, or any specialization attributed to your assets or industry.

So, right for every one. Perhaps not. But if you have A/R, inventory, receivables, purchase orders and are looking for a new way to monetize those assets ABL financing might be the business revolving credit facility for your firm. And peace of mind? As the commercial says ' Priceless'.

7 PARK AVENUE FINANCIAL IS AN EXPERT IN ABL FINANCING





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/abl_financing_revolving_credit_facility_business.html

Can ABL Finance Eliminate Sleepless Nights ? Here’s How An Asset Based Lending Business Line Of Credit Can Help

Looking For A Solid Business Line Of Credit?


Information on why ABL asset based lending is the business line of credit of choice for Canadian firms looking for business credit alternatives .



A cure for sleeplessness? Well, we're not really saying that ABL asset based lending via its business line of credit facility is your cure to what we might term as ' business insomnia ', but we do meet many Canadian business owners and financial managers who profess to have some sleepless nights worrying about how to finance their business on an ongoing basis .


So why then is an ABL facility a solution to less worrying about Canadian business financing. It's important therefore to understand what asset based lending vis a vis a business credit line is, and why it's getting more broad appeal everyday in Canada.

ABL is a secured credit facility collateralized against various assets of your firm. You essentially borrow against all those assets under that collateral facility. So the question then begs to be asked, ' why is this any different than a facility from a Canadian chartered bank?" It's a reasonable question, and the answer we guess is two words ' more ' and ' easier. By that we mean that 9.9 times out of ten you are going to be able to achieve much more liquidity under an asset based business line of credit. And with respect to ' easier ' the asset based lender focuses on assets, not cash flows, covenants, ratios, outside collateral, etc.

The assets that you typically borrow against are inventory; accounts receivable and any fixed assets such as plant, machinery, etc that aren't already encumbered by another lender or lessor.

How then does this business credit facility generate more financing for your firm, or perhaps a better expression is the potential ability to generate additional cash flow . The answer is that it's all in the margin, because typically your business A/R is margined at 90%, unlike the bank 75%. Inventory and assets are appraised at the commencement of your facility and you can enjoy significant draw down ability with them anywhere typically form 0-70%. (Every business/industry is a little different, so borrowings differ according to type of inventory, asset, industry, etc)

Essentially, as we have demonstrated, the assets in your businesS form the borrowing base for all ongoing borrowings. You can hopefully immediately see that you have much greater access to liquidity and that as your business grows so does your facility. Clearly we have demonstrated that your sales growth is automatically funded by that commensurate growth in client receivables and inventory if in fact your firm has an industry position.

There are various technical aspects to how your ABL business line of credit is monitored and funded. Areas of concern to the ABL lender include warranty returns, credit notes, and inventory composition re raw materials, work in process, finished goods, etc.

We strongly encourage you to take a hard look at ABL credit as your key working capital revolving facility. Will you sleep better? We hope so, knowing that your business is financed properly and poised for growth and profits. Speak to a trusted, credible an experienced Canadian business financing advisor today.

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/asset_based_lending_abl_line_of_credit_business.html

Don’t Make Mistakes In Sources Of Capital And Financing For A Canadian Business Loan. Debt Or Equity? What’s Best?

Financing Sources And Their Implications in Canadian Business Finance

Information on how the Canadian franchisee entrepreneur can be successful in franchise financing in Canada . Key elements for franchise loan approval .


You're looking for sources of capital and financing for you Canadian business. A Loan? An equity arrangement? A monetization of assets ? What works best is of course the nagging question that continuously faces Canadian business owners and financial managers.

Many Canadian businesses who contemplate equity type arrangements simply aren’t ready, and it’s also the most expensive form of financing when you consider the ownership dilution that comes with that strategy.

There is usually never an easy or obvious method to get rid of financial challenges. In fact if you're looking at bank financing, which is of course ' debt ' you may well find that the bank feels that more equity from yourself is in fact required in order to obtain that debt. That's a bit ironic sometimes!

Are there any tools available to help the Canadian business owner understand both the cost of debt and equity? There are, of course.

Whenever any Canadian firm looks for financing outside the business there is a cost to the owners. Naturally if you borrow in terms of term debt the additional interest financing costs reduce profits. Selling equity of course reduces no profit, but, and it’s a big one, ownership is proportionately reduced.

We are always preaching to clients that many forms of business financing outside of equity in act do not reduce earnings if in fact you're monetizing assets and have a healthy turnover in key areas such as receivables, inventory and fixed assets relative to overall sales. That’s why we're big proponents of strategies such as A/R financing, supply chain financing, asset based lines of credit, etc.

Earnings and cash flow analysis is a solid way of evaluating debt and equity alternatives.

What then are the key areas you should always focus on when it comes to debt vs. equity analysis? Some solid ones are overall risk with respect to your ability to make payments under any debt scenario.

And whether its debt or equity consider what flexibility you have with respect to any covenants the lender or equity partner might insist on. Always watch your leverage, there is only so much debt your firm can manage and handle.

The irony in either borrowing or looking for some equity is that you're usually in one of two positions, success, or failure! That one never escapes us, as we meet clients who are successful and have a need to finance new growth or expansion, of alternatively, they are currently losing money and have some real deficiencies in their company that need to be fixed.

When you are looking for debt you can be sure the lender will focus on working capital coverage, leverage, and operating efficiencies. Equity lenders will focus on management, growth potential, and why your business is unique.

If you want to properly understand available sources of capital when it comes to business financing, a loan, or an equity arrangement consider speaking to a trusted, credible and experienced Canadian business financing advisor.




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/sources_capital_financing_business_loan_equity.html

Guilty As Charged ! It’s OK To Be Accused Of Exploiting Commercial Equipment Lease Companies In Canadian Business Financing

This Is Why You Should Lease Equipment !

Information on why Canadian business should use commercial equipment lease companies as the most popular method of asset acquisition .



Guilty as charged? You should be. We’re recommending it! We're talking about exploiting commercial equipment lease companies in Canada for your financing needs.

We're told that exploitation is ' utilization, especially for profit'. That’s what we think you should be doing when it comes to considering lease financing in the Canadian marketplace. Let's explain why and how.

Naturally when we talk about ' exploiting ' we think it’s fair to say it has to be to a mutual advantage, i.e. the lessor and you the lessee should be in a win win scenario. It’s all about maximizing the benefits.

To put it simple lease companies solve financial challenges you may be facing in acquiring assets.

We constantly preach that to get into the ' exploitation' mode that we're talking about here you have to know the lay of the land.

Therefore it’s important to understand who the players are in the industry and how they differentiate themselves from each other. That could be a full time job in some cases, and apparently you've got one already! ... so it makes sense you want to attach yourself to a lease financing expert who can clearly differentiate the players with respect to their financial offering , their deal size, credit criteria, and types of equipment lease offered.

So in what ways can you exploit lease financing to your advantage. There are several, and if we had to summarize them they would come under the categories of economics, working capital preservation, balance sheet and income statement benefits, as well as just ease of acquisition.

When it comes to economics its all about cost of ownership, and the lease versus buy decision. You have to do some basic analysis around why you want to lease finance and that often boils down to the actual use of the equipment at the end of the lease, not at the beginning as most think!

We constantly see business owners and financial managers in Canada doing a not too bad job of finalizing a lease transaction at inception, but they often fail to consider mid term and end of term economic implications .

One of the great economics with commercial equipment lease companies in Canadian busines is the sale leaseback - it’s a strategy that replenishes your working capital and maximizes your owned, unencumbered assets.

Issues such as taxes and depreciation often fail to excite the business owner as lessee. And count us in that group also! But we do caution clients to discuss accounting, tax and deprecation benefits around business lease financing and how they might positively impact your financial statements.

If you’re an astute lessee you can save hundreds, and often thousands of dollars based on some simple understanding of lease rates, why they are important and why they might not be.

Clients don't always believe us but a low monthly payment or interest rate doesnt mean anything when it comes to other aspects of your transaction such as down payment, skip payments, end of term obligations, calculation of a buyout, etc.

There's an old joke among lessors who maintain they will give you any interest rate you want as long as you sign ' their ' lease contract!


Exploit commercial equipment lease companies to your advantage. Maximize benefits; minimize the downside by some careful analysis. Not feeling qualified? No problem. Speak to a trusted, credible and experienced Canadian business financing advisor. Let’s get exploiting!

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/commercial_equipment_lease_companies_business.html

Equipment Loans And Leases In Canada ! Which One Of Three Options in Business Leasing And Financing Works For Your Firm?

Leasing Business Assets Makes Sense - 80% Of Canadian Firms Utilize This Financing Strategy



Information on equipment loans and leases in Canadian business asset financing . Which leasing options works for your firm?



The need is often there, but the solution might not be always as obvious as it seems. We're talking about equipment loans and leases in Canada - those unique structures that allow business leasing strategies used by your firm to acquire financing for the assets it needs... to operate, survive, and grow!




When Canadian business owners and financial managers are faced with the challenge of fixed asset finance their oft immediate option is the traditional business loan. This might be a bank term loan for example. The criteria, we in the industry call it ' the credit bar ' might often be fairly high to achieve the types of term financing you need on structures that make sense for your firm.




So, if that was Plan A, and Plan A doesn’t work, whats left? The answer, quite simply is equipment leases for business financing. Rates and terms are quite competitive to the bank, and Canadian business, in general we feel, seems to think that lease financing proceeds with less of a ' hassle '.




Your equipment needs might be from several aspects of your business, computing, machinery, office equipment, etc. All of those assets of course run your company; they're important.




We spoke of the bank term loan as an option, the other more obvious one might have been a cash purchase , using the funds ( if they are there !) to acquire the equipment outright . However, using that capital in this manner if often a classic ' mismatch ' of funds; your firm, incorrectly so, is using short term cash for long term asset acquisition. Bottom line, not a good thing. The reality is you want to use those funds for operating and revenue growth.

That then brings us to what we feel what might be the optimal solution in business financing for assets, ' leasing '. Your new found ability to acquire assets with little or no down payment, bundle in other costs such as shipping, installation, warranty, etc becomes a solid new strategy for asset finance for Canadian business owners.

When utilizing lease finance you are in effect leveraging your cash flow, getting the most out of it, all the same time matching outflows of cash with future inflows of sales and profits arising out of the use of those operating fixed assets you are financing. Our strategy clearly works best for companies who find they need to constantly refresh assets such as computing, or shop floor equipment.



Oh, and by the way, thousands of businesses that don't qualify for bank term loans for assets do in fact always qualify for lease financing. Transactions are structured on a combination focus on the value and use of the asset, your current and future cash flows, etc .Oh, and by the way, your lease payments can generally be expenses and set off against tax obligations.



We spoke of three options in Canada under equipment loans and leases financing scenarios. Those three options are capital leases, operating leases and sale leaseback of assets you own already. Each of these options has different benefits, and gives your firm different rights and obligations. Speak to a trusted, credible and experienced Canadian business financing advisor to identify which of these 3 options make sense for your firm.




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/equipment_loans_leases_business_financing_leasing.html

Lot’s To Gain & Nothing To Lose . 4 Tips On Best Leasing Companies For Asset Business Financing

Canadian Equipment Lease Financing Advice


Information on leasing equipment companies in Canada . What to thoroughly investigate prior to financing business assets .



Since when is some good information that helps you save money and get a good deal in business not a good thing? That's our feeling, so when you are looking for leasing equipment companies in Canada for the financing of business assets here's 4 tips on just that!

Many Canadian business owners and financial managers often consider equipment financing a relatively simple process. It is, if you know who to deal with, what to ask, and what some of the pitfalls might be.

That simplicity is often masked by some key tips and strategies you can employ to save you thousands of dollars, both now, and later. It's frankly all about business decisions that you need to make both now, and later at the end of your equipment lease. In general terms these considerations can be lumped into several categories - financial, risk, tax, accounting and legal.

All of a sudden that lease for the new computer system might not seem so simple, right? At the end of the day you want to ensure you have made the right decision, so as to warrant that financing your assets was better than purchasing or borrowing for them . Until you understand our 4 key tips you can’t make that decision! So let’s dig in!


First of all, exactly what are you looking for? We can see the puzzled look on our clients face already. ‘Haven’t we already told you, a lease!)? But what we mean is that there are different types of leases in Canada, in some cases you want to spend a decent bit of time investigating operating leases, which have different consequences before, during and at the end of the term of the lease. In many cases these payments will be lower, but you will be faced with 3 different options at the end of the term of the lease, for returning, purchasing, or extending the transaction.

If you want a simple finance ' lease to own' that becomes a much more straightforward transaction.

Tips # 2- Who do you actually deal with? In Canada leasing equipment companies are thriving - there is solid, healthy competition and business is quite frankly booming. Your choices on who to deal with are several - independent financial firms who are non bank in nature. Banks in Canada have again embraced leasing so you are in a position to talk to a bank leasing entity also. Their rates and terms are excellent of course, except for one caveat which we will discuss shortly. Suffice to say the ' credit approval’ bar is a bit higher in bank leasing in Canada.

You can also deal with captive or vendor finance firms, who typically are aligned with the manufacturer of the equipment. They are clearly
incented to finance you, because they also make the product!

One very solid solution is to also deal with a lease finance intermediary. Good ones (yes, there are not so good ones) can ensure you have access to great rates, terms, and structures, also saving you a lot of time. Respected intermediaries will bring a tremendous amount of value to your transaction, so check their ethics and reputation and experience. Ask for examples of transactions completed.

TIP# 3 - Lets talk about who to deal with for business financing of your lease transactions if in fact you choose the independent lease company route. Naturally you want to be aligned with firms that have a good reputation, can provide competitive rates and funding, and if they in fact have the capital to complete your transactions. (They borrow money too don’t forget!) Documentation is key in good leasing equipment companies, look for straightforward doc's.!

Tip # 4- If you do in fact choose a bank leasing firm find out how the lease transaction fits into your general borrowing agreement . By financing with a bank have you restricted your ability to borrow more in the future for operating needs?

Got a lot to worry about these days in business, and business financing. Who doesn’t?! Consider talking to a trusted, experienced and credible Canadian business financing advisor on your asset financing needs. As we said, lots to gain, nothing to lose.




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/equipment_leasing_companies_business_financing.html

Feel The Freedom ! Success With Canadian Franchise Financing Business Lenders

Our Only Competitive Edge In Business Financing Is Experience !

Thinking Of Entrepreneurship ? Pain Free Franchising Finance



Information on franchise financing solutions and lenders in Canada . Business financing made sense for entrepreneurs .


The ' freedom ' of owning your own business, one that has already proven to be successful is surely exhilarating. That’s why it’s so all important to ensure that you're aware of the options and mechanics that franchise financing lenders utilize for a business financing when it comes to franchising in Canada.

It’s a broad spectrum ! From newer immigrants to Canada to seasoned corporate executives there is no doubt that a franchise purchase represents the new ' Canadian business dream '.

Let's examine some key issues when it comes to financing your purchase, including which the franchise financing lenders are in Canada, and how you can avoid the disappointment of doing it wrong the first time.

Several elements of your personal and past business life come into play when a franchise lender looks at your business proposal. One of them quite frankly is your personal credit history which must be reasonable. ‘What’s reasonable?' ask clients who sit down with us to discuss their franchise purchase and business financing options.

Actually the playing field is very level here, not a lot of mystery as some clients assumes. In Canada two credit bureau agencies dominate the credit history market. All Canadians who borrow or who have borrowed in the past have a 'score '. The passing score in Canada tends to be 650. So you can easily check your score by yourself and determine whether you are in the striking range.

Another typical question we always get revolves around the type of franchise you purchase. Do franchise lenders actually favor certain franchises over others? (Think doughnuts, hockey, and a Canadian franchise name that comes to mind as an example!) We have even seen some studies recently that indicate that there are some internal publications at some financial institutions in the U.S. and Canada that favor certain franchises over others.

We think it goes without saying that some brand names are more attractive , seeming have the ability to be more successful vis a vis cash flow generation and profits, and are viewed as a ' better bet '. That having been said we've worked with numerous clients who have successfully financed franchises that are either new concepts to Canada or less well known. So don’t take a less known name as a ' no' when it comes to franchise financing success probability.

The reality of financing franchises in Canada is that it’s hardly a huge ' collateral ' play. Involved in your purchase are franchise fees, leasehold improvements, and numerous soft costs that quite frankly aren’t at the top of the collateral desired meter!

So your ability to package and present a deal properly, inject some equity into the deal (the proverbial ' down payment ‘) and demonstrate a decent opening balance sheet and cash flows is critical. A solid business plan that meets and exceed the lenders qualifications can be prepared efficiently by any Canadian business financing advisor who is worth their salt!

So, franchise lenders. Who are they in Canada? The banks do the majority of franchise financing in Canada, but the secret here is that the vehicle used to approve your financing is done under a government program called the BIL /CSBF loan. It works perfectly for your needs on franchise financings under 350k. One major international firm also finances franchises under special arrangements with selected franchisors.

You should rarely count on your franchisor to assist in the financing process, other than some guidance and suggestions. So if that’s the case, who can you turn to? Consider talking to a trusted, credible an experienced Canadian business financing advisor who can tailor a financing to your specific needs, and entrepreneurial success!


Stan Prokop - founder of 7 Park Avenue Financial -


http://www.7parkavenuefinancial.com



Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 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/franchise_financing_lenders_business.html