Canadian Equipment Leasing - How To Get The Best Lease Deal!

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Strategies for Successful Equipment Financing

Information on Canadian equipment leasing finance . Achieving the best finance solution for an equipment loan requires knowledge of these key aspects of lease financing

As a Canadian business owner and financial manger you need a certain amount of skill and knowledge to successfully source and negotiate a Canadian equipment leasing strategy. Equipment financing in Canada can be simple or complicated – the business decisions you make around the financing and acquisition of your asset involves a number of factors which have to do with credit quality of your firm, the way in which you will account for the lease, as well as any business or legal considerations around the transaction.


From the viewpoint of your lessor we can probably safely say they are most interested in simply getting paid back, so the ability to present your firm as a reasonable credit risk will allow you to get the asset and amount you want approved, and, as what seems most important to many of our clients, you will get what we would like to call a ‘competitive rate and structure. You also want to know if you are making the right financing decision as opposed to considering an outright purchase or some type of term loan for your asset financing.

So at the end of the day you want to know what type of lease and benefits are available to your firm, and who is the best ‘lessor partner’ for this particular transaction.


We meet with many clients who spend countless hours, if not longer sometimes in talking to a large number of lease companies on any given transaction. What they don’t understand ( other than wasting their time ) is that lease companies in Canada are organized by asset and credit quality, and many lease firms are funded in different manners, and in some cases offer only one type of lease , which is not necessarily the lease financing you might need for your asset finance decision.

So how do you wade through all this clutter and noise? It might be proper to consider working with an expert who knows the Canadian lease industry, and is a trusted, credible and experienced advisor to your firm in this area.
When we meet with or get a call from clients who have been out in the market ‘ shopping ‘ for a lease it becomes very clear that they appear very un organized and have spent an inordinate amount of time .

Also, they are looking for ‘ all ‘ the ‘ benefits’ of lease financing in Canada, when in reality only a certain number , or even a limited number of those benefits might apply to their transaction . Countless firms recount stories of having paid too much for a lease or having focused on an option that ultimately had limited benefit to their firm.

Again, understand the market, or work with someone that does.
Your ultimate goal in a lease financing strategy in Canada is to ensure you have, at the start, outlined what makes sense for your firm regarding the lease structure and the appropriate partner. Firm you need to work with.


When you are soliciting lease pricing you should do that selectively with firms who are interested in your overall credit quality, asset type, and dollar size of your transaction. We tell clients to get a ‘market sense ‘of the type of lease financing that is available as the industry has the ability to use jargon that can be considered confusing to say the least!


One strategy you can use is to outline a basic lease financing request and solicit a number of bids – by clearly showing who you firm is, the asset you wish to finance, and the dollar value of the transaction, and the type of lease you require (there are two types) you can quickly eliminate a lot of wheat from the chaff!


In summary, understand what key benefits you want to achieve from a Canadian Equipment Leasing transaction get a sense of who can deliver on those options, and ensure you have a level playing field for lease firms you might want to work with.





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

What’s Your ABL Finance IQ? Info On Canadian Financing By Asset Backed Lenders !

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Business Asset Based Lines of Credit

Information on ABL finance in Canada . What is this type of asset backed financing and who are the lenders that offer this business line of credit? Asset based lines of credit work!

We're pretty sure that most Canadian business owners consider themselves knowledgeable about their business and options they have in both operations and financing. But seriously, how much do you really know about ABL finance - were you aware that asset based lines of credit is the ' new financing ' paradigm shift in Canada .

So who exactly are these assets backed lenders and why can they take your firm to new heights in growth? There isn’t a day when we don’t read of many ABL ( asset based lending ) transactions happening here in the U.S. - for tens of millions of dollars.

Is that happening in Canada but we just didn’t know it? Well yes and know, in case you haven’t heard we've got a smaller economy, but we can assure readers that ABL Financing is becoming a mainstream solution to Canadian working capital and cash flow needs .

Did you know that in the last decade over 10 Billion dollars of ABL financing was taking place in Canada on an annual basis? Right under your eyes!

But we're realists and we fully realize that many Canadian firms aren’t aware that asset backed lenders exist, let alone are using them. Ours therefore is to inform!!

We do forgive some quasi well informed clients that have a perception that ABL finance was a financing of last resort so to speak. The reality is that ABL does in fact finance many firms that are challenged and can’t obtain traditional bank financing.

But, and its a big but, thousands of firms in Canada utilize asset backed lenders for their operating lines of credit to facilitate growing their companies, expanding into new lines or geographies, acquiring competitor, or simply re financing their company in a manner that works better!

So why is Canadian business migrating to this new form of business financing? Simply because it’s more creative and flexible than the more formulaic approach that our great friends at Canadian chartered banks take.

And what is the cost of this type of financing. More often than not that’s questions number one when we sit down with clients. We'll put on our lawyer hat and say ' it depends ' which isn’t quite the answer we think you were looking for..!

The reality is that ABL financing is based on size of facility, who you are dealing with, your overall asset quality (abl finances receivables, inventory and equipment and real estate) as well as your firms overall credit situation - i.e. good / bad/ugly. (Yes ABL finances ugly.

One or two more things to know to fill up and increase your intelligence quotient (IQ!) on lenders that offer this financing . Simply that many are non bank independent finance companies , some are U.S. based but doing great jobs here, and some are Canadian but smaller in size - but still able to satisfy the majority of Canadian firms .

Well that’s it... Oh! Did we forget something? Oh yes. What is ABL by the way!! Simply a revolving line of credit that lenders against the value of your current and fixed assets on a daily revolving basis. It's a business line of credit!

Looking to fill up more on your ABL IQ? Speak to a trusted, credible and experienced Canadian business financing advisor who will help you determine if this facility is the best thing that ever happened to your business financing 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


Click here for 7 PARK AVENUE FINANCIAL

http://www.7parkavenuefinancial.com


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

' Canadian Business Financing With The Intelligent Use Of Experience '

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

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


Stan Prokop

Surviving a Working Capital Cash Crisis – Real World Solutions & Techniques

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How To Fix Your Working Capital Challenge - Today !!


Information on working capital cash flow solutions

for Canadian firms looking for techniques and strategies to survive a financial crisis in cash flow

The alternative to surviving a working capital cash crunch, temporary or permanent is of course not surviving it and losing control of your business from a financial perspective. Let's examine real world (we like those the best - the academic guys are very nice though) techniques and solutions to cash flow challenges.


You probably know you have a working capital problem; it’s the turnaround strategy to that problem that is challenging. When you think about it your constant cash flow challenge is in fact the most obvious sign that you need a survival plan.


Many business owners also equate growth and profits and cash flow on the same terms, in reality they are all VERY different! To be fair to the Canadian business owner sometimes the factors affecting your working capital cash are external and out of your control, however they still could lead you to insolvency of some sort.


Question - would you as a business owner ever consider your bank operating line of credit (assuming you have one?) as ' dangerous'? More traditional bank lines give you an advance against your receivables and inventory, those two most liquid assets after cash. If you are committed to a bank facility you have a pre sent borrowing limit, it’s as simple as that. So if your business has good operating performance, is profitable, and you are expanding or growing carefully all that works. So how could a bank facility precipitate a working capital crisis? Simply because if your business either shrinks, or grows too quickly you are locked into pre set borrowing power. Your receivables and inventory go down, or go up if you're lucky enough to be exploding with growth, but your credit facility is still the same!


We never want to be accused of just reminding your about the crisis, we'd rather provide solutions and techniques to eliminate the working capital crunch.


So let’s address some techniques and solutions for cash flow survival. These focus around accounts receivable and inventory. Think about it, if you have A/R and inventory, these amounts are one step away from liquidity. So how do you monetize these assets on an on going basis, whether they going up or down?


In Canada the most logical solutions to restoring your cash flow normalcy are the following - asset based lending, a working capital facility, and combinations of receivable and inventory and purchase order or contract financing.


True asset based lending facilities are typically for larger facilities of several million dollars or more - they have the ability to double, if not triple your access to working capital. How do they do that? Simply because they margin on an ongoing basis all your A/R and inventory at very high margin rates, and the facility grows as those two asset categories grow. They are the ' best bet ' for surviving a working capital crunch.


Small and medium size firms should look toward working capital facilities that combine A/R and inventory lending, have no fixed upper limit, but usually come with higher financing and borrowing costs.


Finally, the average business owner and financial manager may not even be aware that contracts and large ' one of ' can be financed and inventory financing programs can be implemented on a stand alone basis.


Surviving the working capital cash crunch comes with short term solutions as we have noted, that provide immediate relief; as well.. owners can consider long term strategies such as working capital cash term loans and sale leaseback of equipment or property. Speak to a trusted, credible and experienced Canadian business financing advisor for advice solutions and techniques for cash flow survival.


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.

<a href="http://www.7parkavenuefinancial.com/stan-prokop" rel="author">Stan Prokop

What Mom Didn’t Teach You About Working Capital Business Financing

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The Real Scoop on Business Funding in Canada

Information on business financing and working capital and cash flow alternatives in Canada. It's critical to understand your business finance options

If you're like most of us Mom never really gave us a lot of advice on working capital ! That's why for such an important business financing subject we recently wrote on an older article in Canadian Business magazine that covered a total of 15 - yes that’s 15 ways) to finance your business . Perhaps these were the secrets of the Holy Grail that Mom never taught us, we thought?

The reality was that we had some strong comments and additional information on those 15 items, and we commented on 7 of them in the last article. Let's cover off those final items and hopefully get some real value on what Mom never told us about these things!

Under the category of ' government programs' the article talked about various federal and provincial programs or initiatives for business financing. Mentioned was the Community Futures program as well as the Canadian Youth Business Foundation. These are very narrow and segmented programs, in the case of the Youth Foundation, guess what, you have to be a youth, which hardly suits most business owner’s .Community Futures programs have tended to be rural in nature, have ad minimal funding allocated to them, and seem to have focused primarily on start ups that might generate employment.

Secondly, Mezzanine debt was referenced. This is of course essentially an unsecured cash f low loan provided by private finance firms. In many cases it focuses solely on cash flow as the repayment vehicle. The bad news on mezzanine debt is that it typically is available for transactions in excess of 5 Million dollars, which certainly doesn’t work for most small and medium business owner’s .For the record mezzanine financing rates are in the low to mid teens.

Private equity was out third source of capital. Typically these funds are provided by niche Canadian and U.S. private firms who focus on equity and convertible financing instruments that force the business owner to give up partial ownership .This isn't necessarily a bad thing if you get the working capital and business financing that you need, but you should absolutely be prepared to give up some ownership on these transactions, which are often quite substantial and take several months, if not longer, to complete.

Hey, let’s go public and have access to unlimited sources of capital. That’s the typical pitch made to Canadian corporations who consider this type of financing. The reality is that a true IPO listing on the TSX or Venture exchange in Canada requires a significant capitalization and track record. Ownership becomes diluted, and companies are forced into very strong levels of reporting and disclosure. Many of our clients have ' gone public' via reverse take overs of shell companies that had a listing, we have never seen this work satisfactorily, at least from a viewpoint of giving them unlimited working capital.

The Canadian Business article focused on the federal SRED program. Finally! A good one! An absolutely great program that provides billions of Dollars of capital for any firm in Canada that qualifies for research spending and adheres to the program guidelines. Sred claims can also be financed, similar to a receivable, as soon as they are filed, that supercharges the program even more from a working capital perspective.

VC money is often bandied about and sought by many corporations. Venture capital in Canada is struggling in the 2010 environment, any fundings seem to be going to firms that have been previously funded, and are getting additional capital (to stay alive?). Any Venture capital firm expects a high rate of return relative to the risk they are taking in financing your firm on an equity basis - in fact traditionally , as the article stated, the venture capitalists are looking for a 5 times return . Unfortunately for many Canadian business owners these types of fundings go to the sexier industry segments such as biotechnology, high tech, etc.

Well, that’s it. Hopefully we haven’t sounded too negative, but the general trend clearly are that the ‘ 15 ‘ options outlined in the original C B article clearly need to be grounded in a bit more reality for the average Canadian business owner and financial manager seeking capital . Speak to a trusted, credible and experienced business financing advisor who can provide you with an up to date realistic alternative on business funding.

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

Is a Sale Leaseback of My Business Assets a Good Thing?

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At various points in the economic cycle a business owner or financial manager considers a sale leaseback financing . Is that type of transaction advantageous, and what are the risks and benefits?

Many firms do not fully know about or understand the advantages of this type transaction. This is a classic alternative financing strategy that works best when it is a good deal for the lessee and the lessor. It does not work well when the lessor presumes it is a 'cash grab' by the lessee.

This type of financing should be contemplated if your firm has the following characteristics:

- Experiencing working capital challenges

- Declining profits

- Excess unencumbered assets

- High amount of debt

If a company has a high amount of debt a sale leaseback transaction can still be a very positive financing event. By structuring the the transasction as an operating lease the debt becomes 'off balance sheet '. This gives the appearance of the company being not so highly leveraged and quite often it can save the company from being in default of its loan covenants.

In many cases the sale leaseback can bring a significant amount of capital back into the firm.

So when does a firm consider such a transaction - every industry is different but if the firm is bottom line, over leverage, i.e. Debt too high, there can be advantages to an off balance sheet sale leaseback transaction.

If a company has historically had pride of ownership, and has significant assets, and is suddenly going through a high growth stage it also becomes a good candidate for a sale leaseback. Cash flows are restructured and the company gains significant new working capital.

The best candidates, overall, for this type of financing strategy are high growth companies who would prefer to invest additional cash in receivables and inventory. Naturally no lessor wants to consider such a financing if the company is in some sort of death spiral.

In some cases when assets have in fact appreciated (not depreciated in value) the company may actually be able to report a gain in earnings, as the sale leaseback transaction in excess of book value allows the company to book the sale leaseback gain into the profit account!

Many government institutions, such as municipalities, hospitals, etc may find this type of financing strategy as optimal in solving temporary budget cuts and working capital challenges.

In summary, a properly structured sale leaseback can provide new cash, enhance earnings, and in effect be a creative way to temporarily re finance the firm or institution.

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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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

' Canadian Business Financing With The Intelligent Use Of Experience '

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

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

Stan Prokop



















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


Article Source: http://EzineArticles.com/3723483

How to Take Advantage of Commercial Finance Factoring Services in Canada

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Assessing Factoring Costs & Benefits When Considering A/R Financing Solutions

Information on commercial financing factoring services in Canada. Working thru the costs and benefits of A/R finance solutions in Canada

Commercial finance factoring Services may be the solution you are looking for business financing and working capital for your firm. You may or may not be aware that this type of cash flow financing is used by Canadian firms from start up to major corporations.

So what are the benefits of such a business financing and how is your firm able to take advantage of these. The bottom line in business usually always come back to cash flow, and a commercial finance factoring service or facility ( we like to call them working capital facilities ) gives you a form of predictable cash flow . Essentially your working capital grows lock step in pace with your sales growth, and handles all those up and down fluctuations in between.

When we discuss this financing with clients we often use a term ' you pay only for what you use ‘. That is because your firm essentially controls the cash flow spigot, if we can call it that. You have the ability to finance one invoice, a number of invoices, or all your receivables. It's your call!

Invariably the discussion around factoring, also known as ' invoice discounting ‘turns to cost of this service. First of all you have to know how the financing works, at which point you can then assess the costs and the advantages.

Let's look at a quick actual example to ensure we understand the process and cost. Let’s say one of your invoices has just been issued and it’s for $ 10,000.00 - we'll use a clear example and round number in our demonstration. So what happens next? Your firm is advanced, immediately, i.e. almost same day, approx 90% of that invoice amount. So you receive $ 9000.00 at the same time your customer receives their invoice! Your factor discount, i.e. ' the fee' might typical be 2% on this transaction. So if your customer pays the invoice in 30 days (*we’ll be back o you on that one!) your firm receives the balance owing to you, i.e. the holdback, less a 200.00$ fee. ** We realize that not all customers pay in 30 days!

So what just happened here? You made a sale, you got cash immediately for 90%, and you got the balance of the cash (in our case $800.00) when your customer paid. Your cost was 200.00$.

Astute business owners and financial managers can use that immediate cash wisely and productively. You could pay a supplier invoice that you just received, and take a 2% discount for prompt payment. You have just strengthened your relationship with a supplier, and saved 2% - and wait a minute, didn’t we have a 2% factor fee. If you net those two out your financing cost has been effectively reduced to almost zero.

Are all fees in Canada the same, and do all facilities have the same sort of business model and paper flow? The answer is no, they don’t. Your final factor fee, or discount fee depends on your client profiles, how much of a facility you need, the invoice size, and, the most important - how well your clients pay. Remember you can now finance those clients that pay in 60-90 days and have tied up your working capital, but ensure they are profitable clients because at 2% per month carrying cost that erodes your profit margins.



In business it’s all about turnover and your ability to turnover your inventory and, in our case, receivables ultimately determine your financing costs to carry your A/R investment.

Think of commercial finance factoring services as your own ATM machine for cash flow. It becomes a solid potential alternative to term loans with fixed interest, or bank financing that has the requisite requirements that come with a bank deal - solid financials, profitability, guarantees of owners, external collateral, etc.

For those business owners and financial managers that want to get a bit more analytical about the numbers here is another way to look at it - let’s use our same example: If you factored 10,000 once a month all year would have had the use of 120,000.00 in total capital. So your total finance costs on that would be 2400$.

If you borrowed 120,000$ in working capital from your bank at a rate of 6% per annum on a typical 3 year term you would pay over 10,000$ in interest for the same capital . The factoring financing using that logic was cheaper than the bank by at least 8000.00$.



So whats our bottom line? It’s simply that our basic arithmetic has shown us that if we take advantage of commercial finance factoring services we are in control of our own cash flow destiny as well as having the ability to increase sales and offset financing costs with careful use of cash flow and working capital from this unique type of business financing. Speak to a trusted, credible, and experienced business financing advisor in this area to maximize the advantage!





7 Park Avenue Financial :

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

Click here for 7 PARK AVENUE FINANCIAL




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