Recognize These Symptoms? It Is Time For New Business Financing And Capital Strategy Options!

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Canadian Business Financing – Techniques and Solutions

Canadian Business Financing . Or lack thereof?! Are there some symptoms for finance capital  strategy options we can look for, and fix for small business in Canada? We think there are. While some search for angel investors and venture capital at 7 Park Avenue Financial we focus on real-world accessible financial solutions.

 

Here's one for you. How many business owners would associate overdue receivables, poorly moving inventory, or underused fixed assets as a symptom of too much financing? We're pretty sure that few business owners (or even their financial managers) would associate those symptoms with having too much capital!

 

SYMPTOMS OF THE NEED FOR ADDITIONAL BUSINESS CAPITAL

 

Then of course there is the other side of the coin, which is what clients always are looking for - business loan and business financing solutions.  That might be bank loan/bank financing or a business finance solution via an alternative financing source - of which there are many. So what would some of those symptoms be?  They are pretty obvious more often than not:

 

Little or no cash on hand

 

Vendor payment issues

 

Manufacturing timing/shipment issues (You can't make ' em fast enough!)

 

Also, by the way, if you feel you are getting too little of a return on investment on all your assets its pretty clear that might be a symptom of a capital strategy problem.

 

THE ABILITY TO ACCESS CASH FLOW AND WORKING CAPITAL

 

It's safe to say that the right amount of cash flow, working capital, and other assets would probably fix any challenges your firm is facing. Naturally, every business is different; for example, a service company requires little fixed assets and tends to be more cash flow based.

 

  

UNDERSTANDING YOUR COMPANY'S DEBT TO EQUITY RELATIONSHIP IS KEY   

 

Here is one for you. Did you know that some analysis around your fixed capital can actually help you solve your problems? Take a good look at your long term debt and equity on the balance sheet and measure that relationship once in awhile - yearly would be a minimum timeframe.

 

MONITOR CURRENT ASSET ACCOUNT TURNOVER   - RECEIVABLES AND INVENTORY FOCUS

 

We're still looking for some other symptoms though, right. Here are some more.  If you feel on an ongoing basis that you’re experiencing large increases in receivable and inventory growth you are a strong candidate for some hard analysis of some new financing and capital options. It's those 'investments ' in receivables and inventory that devour your cash flow, forcing you to address new financing options. For the SME owner, those large growths in A/R and inventory actually mean you will probably be able to take less out of the company in the form of dividends, mgmt. bonuses, etc.

 

By the way, if you are looking at new purchases of assets ensure those assets will generate profits, not eat up capital or create losses. That's just common sense.

 

CONCLUSION

New Business financing options can be addressed if you have a strong handle on a very few basic calculations - those include some rudimentary things like expense per day, receivable turnover, inventory turns, etc.

 

Oh, and by the way, lenders of short term and longer-term capital are looking at those same things in your balance sheet, so being able to talk to those issues will help you... a lot. Note also that a business plan and cash flow projections will assist you in accessing financing more quickly versus being unprepared!

 

So whether your company is early stage or simply high growth and growing .. speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with capital options  and business loans in the short or long term (and crisis) situations.

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

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial

How To Obtain Business Financing In Canada

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Could You Put Some New Business Financing To Good Use?

Business financing in Canada has never been as important as in recent times - A company can fail in the best of times, whether it's poor finance practices around your existing financing strategy or simply the inability or lack of knowledge around business capital , cash flow, and working capital solutions . At 7 Park Avenue Financial we believe any firm can benefit from a better overall financing strategy.

And boy have things changed ! Long gone are the days when funding a company simply revolved around low interest long term bank loans, when approval seemed cumbersome but ultimately successful.



7 Park Avenue Financial's vision was founded specifically on that landscape that changed. No secret that these days not all business borrowers fit the mold of traditional financiers such as the Canadian chartered banks.

Many businesses try online lenders - yet while the applications and loan process is viewed as online there is a distinct lack of personalization that your company and industry might need. Even worse is that the multitude of on line lenders simply confuses the business owner, if not downright deception in a few circumstances.

In the case of the short term working capital industry, which evolved out of the U.S. Merchant advance loans many Canadian borrowers have found they can approach and get approved by several lenders.. in effect they ' stack ' new loans on top of each other

When investigating on line solutions we encourage clients to ensure they are dealing with a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success to eliminate any disastrous financing.

A proven solution towards the path of solid business financing is simply to analyze short and long term cash flow needs ( a cash flow plan ) that allows your company to understand where liquidity is needed.

An ' informed ' business borrower armed with proper knowledge around the types of financing and cost of their financing needs is the best scenario to strive for. In many cases your industry will typically benefit from a type of financing used by many of your competitors and that can assist your own firms funding journey.


While many owners/ mgrs and entrepreneurs in general focus on sales revenue growth as the key metric to success that motivation has to be complemented with good cash flow management & financing solutions geared to your cash flow and asset monetization needs .


Sales will drive a lot of your financing choices and will in many cases dictate or suggest what type of debt finance or asset monetization you will utilize. While it's important to be optimistic about sales growth that same revenue issue can be a source of stress when it comes to cash flow.


One reason why ? Simply because building inventories and receivables and investing in new assets are cash uses, not sources, as our good friends accountants would say.


While cash flow and sales budgets are important and reflect good mgmt the real world dictates that Murphy’s law will often kick in , which might mean:

Large New Sales or Contract Opportunities

Seasonal cash flow needs

Loss of a major customer

What Is The Best Solution To Finance Sales Growth ?

ANSWER : A traditional or alternative business line of credit ( tradional = non bank )


1. Canadian Chartered banks


2. Non bank commercial finance asset based credit lines



It often also takes new/used assets to build and grow a business, i.e. equipment, machinery, rolling stock, technology a la computers, software, etc. In that case equipment lease financing is your best bet as it conserves cash flow and matches the benefits of the asset in question to cash outflows. From start up to mega corporations 80% of businesses of all size utilize lease based asset financing.

Business Financing For Smaller Companies / New Companies

Newer businesses, mostly start ups should consider the Canadian Govt Small Business Loan - aka the ' SBL ' loan. That loan is guaranteed by the govt and only requires a 10% personal guarantee against the loan which can be anywhere up to 1 Million dollars depending on the asset you wish to finance.


Cash flow concerns boil down to liquidity. The 2nd most liquid asset you have on your balance sheet is receivables. Collecting them promptly and financing them properly is key to business success.


For those firms that can't access or get approval for the amount of business credit line they need numerous solutions are available, the most popular often being A/R financing via a ' factoring' or 'Confidential Receivable Financing ' program. This solution monetizes sales as you generate revenues - instant cash. Key advantages include: instant liquidity and no additional debt on your balance sheet.


Businesses in the SME sector in Canada (small to medium enterprise) will never have too much cash. Increasing sales, buying assets, hiring people drains cash- sometime slowly, other time not so slow!


Some other solid real world solutions to cash flow and loan needs include:


SR&ED Tax Credit Financing


Sales Leasebacks


Unsecured cash flow loans


Short Term Working capital loans

Mezzanine Financing ( Unsecured cash flow term loans )


Financing a business in Canada, in ordinary, or extra-ordinary times takes some time, knowledge and access to funding solutions that are in your firms best interest . Stay educated and ensure you are working with someone who is on your side when it comes to maintaining finance solutions tailored to your business health. At 7 Park Avenue Financial we call that ' Financing With The Intelligent Use Of Experience '.

What's Alternative Financing In Canada ? Capital & Cash Flow Sources

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Alternative Financing Options For SME Commercial Finance Needs

Alternative financing options and sources is all about the right capital and cash flow from sources you can depend on to grow your company's sales and profits.These lending options tend to come with fast approvals although non bank lenders demand a higher rate of return based on the flexibility of their capital and the eligibility requirements .

Any current economic upheaval notwithstanding, it's safe to say that after the 2008-2009 recession businesses in the SME ( small to medium enterprise ) sector in Canada had greater difficulty in obtaining proper traditional bank financing . The ability do do business and raise business credit had many firms wondering what the commitment was to this key segment of Canada's economy.

Bank lending guidelines focus on key elements such as accountant prepared financial statements, personal guarantees, outside collateral, and performance ratios / covenants your company must abide by . That can be a challenge.

Alternative Financing Canada

 

The business line of credit is typically a major necessity for any company . when access to credit lines dry up your company is more often than not able to support ongoing sales and daily operations.

So what can small and medium sized businesses do ? Whether its start up funding, or growing a business the landscape of Canadian business financing has changed. Experts tell us that the reasons alternate capital sources are growing is a combination of regulations in commercial lending and technology. Many new lenders can provide access to financing previously only offered by Canadian chartered banks.

While in some cases banks are pulling back to certain types of lending new technologies and many new commercial finance companies are providing complementary financing to run and grow business.

At 7 Park Avenue Financial  we talk to new clients about the differences and benefits of traditional versus alternative finance solutions . Many firms have to utilize non-traditional business credit and business loans.

Though these sources of credit may not be perfect for every business, they are at least options to keep your company going through rougher economic times when you have been, as the saying goes ' de-banked'

Alternative Sources of Business Loans

 

Asset based loans - These facilities rely heavily on the hard collateral in your business, typically equipment, rolling stock, real estate, etc.

Non bank revolving credit lines - These business credit lines, often called ' ABL's " are used to manage the cash flow gaps that arise out of the need to carry inventory, collect receivables, pay employees and suppliers, etc. Similar to bank lines the carrying cost is calculated on the ongoing balance . The best way to operate these type of facilities is to make sure they ' revolve ' - hence the term ' revolving line '.

Another key benefit of the non bank asset based line of credit is that they can easily be increased as your sales and working capital needs grow.

Inventory Loans - Using inventory as collateral is often best facilitated in the context of the asset based credit line . The facility combines inventory and a/r financing to create an important source of ongoing cash flow.

Sale Leasebacks - Equipment your firm owns can be leased back to create valuable working capital,with your firm still maintaining full use of the equipment.

Equipment Financing - 80% of all North American businesses ( that includes Canada !! ) utilize lease financing to minimize capital outflows for new and used assets. Yes, used equipment can be financed !

SR&ED / Film Tax Credit Financing - Tax credits for the Government Scientific Research and Experimental Development program can easily be monetized to recoup valuable investments your company makes in R&D

Receivables Financing / Factoring - The ability to cash flow your receivables on an ongoing basis is one of the fastest growing parts of the alternative finance area . Our recommended solutions to clients of 7 Park Avenue Financial is Confidential Receivable Financing, allowing your firm to bill and collect your own a/r and be able at the same time to cash flow sales immediately as you generate revenues.

Royalty Finance - Royalty finance is quasi form of equity financing and allows your firm to raise funding based on sales

Purchase order financing - P O Finance is similar in many respects to a/r financing, but takes the whole process one step further , allowing the P O lender to pay your supplier for products related to legitimate purchase orders / contracts.

Working Capital Loans/Cash Flow Loans - Technology has allowed many firms to apply to short term working capital lenders who offer loans, typically 12 months in duration based on only your sales volumes. This type of financing is a key part of the whole wave of what the experts call ' FINTECH '. These loans fill a short term void and are typically based on loan amts equivalent to 10-15% of your annual sales volume. Other names for this type of loan is ' peer to peer / B2B ' financing.

These shorter term working capital loans/advances arose out of Merchant Advance industry in the U.S. , having spilled over into Canada . Those loans, called " MCA's " typically work best for retailers . In effect this area is a ' shake up ' of ' old school ' traditional financing. While these solutions are available to both public and private companies the majority of these types of financing revolve around private firms who want to both survive and grow their business.

We're not 100% sure that banks are abandoning small and medium sized lending - although many of our clients certainly feel so! But post the 2008 global recession it's safe to say business financing in Canada has changed. That's why the amount of capital available via private alternative finance firms should be often appealing to business owners and financial managers.

To explore the numerous capital and cash flow sources available via commercial alternate finance sources seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success, who can assist you with business loans that makes sense for your company / industry.



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

Isn’t Working Capital Bad For Your ( Business ) Health ?

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Understanding And Measuring Business Capital Needs - The Working Capital Conundrum !



Information on how understanding how working capital needs affects for business financial health - Cash Flow 101 !

We can hear our clients now! How possibly could working capital (isn’t that cash flow?) be bad for my firms financial health. Let’s talk about that.

The technical financial folks define working capital as a very basic calculation that even the non financial business owner can do - simply deduct your current liabilities from your current assets ( from your balance sheet statement) and, voila ! Congratulations, you have working capital. Hopefully that number is a positive number, because when it’s negative you're technically insolvent and that's a subject and solution for another day!

Anyway, our working capital number is positive - that’s good, right. Not necessarily, and that’s the premise of our info we share here , because if you have positive working capital your funds are tied up in receivables, inventories and pre paid items .

It is therefore very important to understand what makes up working capital, how you can monetize or cash flow it, and most importantly, but often totally overlooked , how you can measure business capital and working capital .

The essence of measuring your working capital revolves around turnover, days sales outstanding, inventory turns, and payables days outstanding.

The good news is that you can very easily calculate and track these measurements, and we can virtually guarantee they will better assist you to understand why your investment in working capital is very much a teeter totter of good news/bad news.

Do you like to travel?

Money does also, and considers how long it takes for a dollar to travel through your company. From the day you place an order, purchase product, pay for product, bill a receivable, and yes, collect that receivable that total cycle can be easily 200 days, if note more. That’s a lot of travel, so you hopefully can see our premise here that your investment in your working capital accounts is not necessarily a great thing.

Your business is composed primarily of inventory, receivables, and payables, (also fixed assets). We therefore strongly suggest to clients that they understand the turnover and overall return they are getting from these key asset accounts.

You would understand your working capital situation somewhat better if it were not for those pesky issues that you can’t control - business owners and financial managers recognize them well and run into them every day. They are sales growth and decline, your fixed costs that you have to pay and manage no matter what, and any financial distress you may be experiencing from past external factors - i.e. a bad year, etc,

The holy grail of business capital and working capital financing is when you have strong controls on internal asset turnover and at the same time you have access to external working capital via bank lines, asset based lending facility, loans, grants, etc.

We constantly remind clients that if they are turning over their working capital accounts more efficiently all the time its in effect a measure of the true success of your company - think of it, you're buying things, paying supplies on time, and customers are paying you on time and ordering more goods and services. A quick tool for measuring your progress in this area is simply to take your receivables days and inventory days, subtract your payables days outstanding, and if that number is improving , or going down you are winning the 'working capital is bad for your health' premise we have presented.

As a Canadian business owner you are both granting credit and requesting credit (customers and suppliers respectfully). Understanding business capital in this manner will allow you to finance better internally and borrow via banks, finance firms, asset based lenders, etc.

Speak to a trusted, credible and experienced business financing advisor about our ' health’ problem and what your tools and solutions might be for better business success.



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

Business Financing Sources In Canada: Are Cash Flow & Capital Loans What Your Company Needs Today?

Business Financing More Confusing Than A Fun House Mirror ? Here’s Some Solutions

OVERVIEW – Information on business financing sources in Canada. The cash flow and capital from the right loans helps grow sales and profits

Business Financing Sources must seem like a ' fun house mirror' for Canadian business owners and financial mgrs. They want to know the potential sources of working capital financing & other funding so they can profit from sales and growth opportunities. The challenge? Knowing what's available and what's appropriate for their company! Let's dig in.

Operating capital is viewed as one of the most critical aspects of ongoing financial liquidity; simply put, the ability to meet your short term and long term obligations. The solution for that more often than not is a traditional (or alternative finance!) business credit line. The more access you have to this type of financing helps guarantee chances of overall financial success. It's a simple bottom line - accessing capital and cash flow to expand and grow.

The textbooks of course to a great job of defining working capital. However the real world use and understanding of that term differs somewhat!

Finance books tell us working capital is calculated by subtracting current liabilities from your current assets. The major current assets are receivables and inventory. When we meet with clients to discuss their working capital needs we focus more so on two issues within those working capital components that the finance textbooks don't really often touch on!

They are:

- Turnover of working capital

- Margining of working capital

So the key point for business owners is not really what the text books says, it is that you need to be able to understand how to convert these assets into cash ! We do of course agree thought that positive working capital (what you have) is better than negative working capital (what you owe)!

Sitting down and working through changes in their working capital is one of the most valuable tools in understanding your current and future cash flow needs.

A fine balancing act is created, one in which you are liquidating your receivables and inventory on an ongoing basis, but at the same time managing to keep your short term obligations to suppliers current.
Another hard reality of business financing is that working capital varies by company and in general by industry. The amount of turnover in inventory and A/R varies considerably in every business.

We have discussed the definition and importance of working capital. So what are the sources of those funds? In a perfect world your company should have that aforementioned overdraft or operating line of credit with the bank.

The is the cheapest and lowest cost method of financing short term cash and working capital needs in Canada. The challenge is of course being able to meet the banks criteria for lending, which include personal guarantees, additional collateral possible, and imposed loan covenants and ratios.

A growing and more popular solution is asset based lending, this has little focus on the bank qualities demanded by Chartered banks and is more focused on what we discussed above, your firms ability to margin and leverage current assets and turn them over more quickly, thereby increasing sales and profits, albeit at a higher financing costs.

Other solutions to the business financing need include:

A/R Financing

Inventory Loans

Equipment Leasing

Bridge Loans/Sale Leasebacks

SR&ED Tax Credit Financing

Ultimately each Canadian business owner must understand their working capital needs and determine which solution works best for them.

Plan for growth, and seek out and speak to a trusted, credible and experienced Canadian business financing advisor to understand what sources of capital are available and which work best for your company.



Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com


7 Park Avenue Financial

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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '


ABOUT THE AUTHOR

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

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


Stan Prokop

Alternative Financing In Canada : Capital & Cash Flow Sources For Business Loans Your Company Needs

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Looking for the Alternate Universe in Business Financing ? Alternative Financing 101

OVERVIEW – Information on alternative financing sources in Canada. Business loans for access to capital and cash flow come from both traditional and alternate sources of funding – Here’s why and where !

Alternative financing in Canada doesn’t necessarily reside in an ' alternate universe '. That expression is of course the ' what if ' arising from your current circumstances, in this case achieving the right capital and cash flow from sources you can depend on to grow your sales and profits. Let's dig in.

Whether its start up funding, or growing a business the landscape of Canadian business financing has changed. Top experts tell us that the three reasons alternate capital sources are growing is a combination of regulations in commercial lending and technology: The bottom line is new players and new ways of accessing financing versus traditional bank financing.

While in some cases banks are pulling back to certain types of lending new technologies are serving companies who consider themselves ' underserved'

In many case commercial finance companies are simply providing similar or complimentary services to funding previously only served by banks.

Examples of alternate financing we discuss and work on with our clients include:

Asset based loans

Non bank revolving credit lines

Sale Leasebacks

Equipment Financing

SR&ED / Film Tax Credit Financing

Receivables Financing / Factoring

Inventory Loans

Royalty Finance

Cash flow loans

In effect is a ' shake up ' of ' old school ' traditional financing. While these solutions are available to both public and private companies the majority of these types of financing revolve around private firms who want to both survive and grow their business.

Because of the number of players in the Canadian market rates are getting more and more competitive and lending structures are more flexible. It's safe to say though that non bank commercial finance firms spend the same amount of due diligence on their borrowers and in many cases they have overall lower loan losses than banks.

Not everyone today certainly understands how alternative finance firms are themselves funded - in many cases its hedge funds / pension plans, etc. The actual financing is done in 3 areas - cash flow financing, distressed loans, and direct commercial lending.

We're not 100% sure that banks are abandoning small and medium sized lending - although many of our clients certainly feel so! But post the 2008 global recession it's safe to say business financing in Canada has changed. That's why the amount of capital available via private alternative finance firms should be often appealing to business owners and financial managers.

If your business wants to explore the numerous capital and cash flow sources available via commercial alternate finance sources seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with business loans that makes sense for your company / industry.



Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com

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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

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

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


Stan Prokop

Business Financing In Canada: The Importance Of Debt Finance & Cash Flow Capital Solutions

Could You Put Some New Business Financing To Good Use?

OVERVIEW – Information on business financing in Canada . The right capital is accessed via debt finance & cash flow solutions that your firm can put to good use

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Business financing in Canada is important if only for the reason that the large proportion of businesses that fail do so because of poor finance practices as they relate to capital, and cash flow solutions. Could your firm put some new business financing strategies to good use? No doubt if could. Let's dig in.

While many owners/ mgrs and entrepreneurs in general focus on sales growth as key metric to success that motivation has to be complemented with good cash flow mgmt & financing.

Sales will drive a lot of your financing choices and will in many cases dictate or suggest what type of debt finance or asset monetization you will utilize. While it's important to be optimistic about sales growth that same revenue issue can be a source of stress when it comes to cash flow. One reason why? Simply because building inventories and receivables and investing in new assets are cash uses, not sources, as our good friends accountants would say.

While cash flow and sales budgets are important and reflect good mgmt the real world dictates that Murphy’s law will often kick in , which might mean huge bulges in sales or new contracts , or a decline in sales for a variety of reasons.

The best solutions to finance sales growth tend to be business credit lines. These can come from two sources:

1. Canadian Chartered banks

2. Non bank commercial finance asset based credit lines


It often also takes new/used assets to build and grow a business, i.e. equipment, machinery, rolling stock, technology a la computers, software, etc. In that case equipment lease financing is your best bet as it conserves cash flow and matches the benefits of the asset in question to cash outflows. From start up to mega corporations 80% of businesses of all size utilize lease based asset financing.

Newer businesses, mostly start ups should consider the ' SBL ' loan. That loan is guaranteed by the govt and only requires a 10% personal guarantee against the loan which can be anywhere up to 1 Million dollars depending on the asset you wish to finance.

Cash flow concerns boil down to liquidity. The 2nd most liquid asset you have on your balance sheet is receivables. Collecting them promptly and financing them properly is key to business success.

For those firms that can't access or get approval for the amount of business credit line they need numerous solutions are available, the most popular often being A/R financing via a ' factoring ' or 'Confidential Receivable Financing ' program. This solution monetizes sales as you generate revenues - instant cash. Key advantages include: instant liquidity and no additional debt on your balance sheet.

Businesses in the SME sector in Canada (small to medium enterprise) will never have too much cash. Increasing sales, buying assets, hiring people drains cash- sometime slowly, other time not so slow!

Some other solid real world solutions to cash flow and loan needs include:

SR&ED Tax Credit Financing

Sales Leasebacks

Unsecured cash flow loans

Working capital term loans

If your business can put good business financing to good use seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your capital, debt finance and cash flow needs.


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com


7 Park Avenue Financial

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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

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

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


Stan Prokop