Business Financing Solutions In Canada : Your Capital & Funding Fix Just Might Be In

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Are All Business Financing Solutions For New & Growth Businesses Equal ? We Think Not !

OVERVIEW – Information on business financing solutions in Canada. Funding options vary according to the type of capital you need and whether traditional or alternative financial options are available

Business financing solutions in Canada clearly demonstrate that the types of loan and cash flow financing you need are clearly not equal in value and accessibility to business owners and financial mgrs. Here's why. Let's dig in.

Many different types of business finance solutions exist - the challenge revolves around your ability to ensure you're pursuing the right type of loan or cash flow financing solution.

Many business owners/entrepreneurs aren't familiar with the Canadian govt small business loan program. We can call it the ' bread and butter ' in terms of the phrase ' government loans'. Clarification is required here because it's not the gov't that actually funds the loans, it's Canadian banks with the loan guarantee in place from the federal gov't.

For Canadian business owners timing is pretty well ... everything! That’s why with careful preparation of your submission a loan can be approved in a matter of days

Getting back to our theme of ' timing is everything ' an even more accessible solution for owners/mgrs is the working capital term loan. Often provided on an ' unsecured ' basis these loans are based primarily on the cash flow within your business bank account. There is a lot less paperwork required and funding can occur within days.

Many businesses, particularly in the SME sector (small to medium enterprise) require purchase order funding solutions when they receive orders and contracts far in excess of their normal financing capabilities. P O Financing allows companies to access new markets and larger customers, enhancing revenue growth. Most times even international orders of almost any magnitude can be financed if your firm has a qualified buyer and a legitimate supplier.

Those govt loans we referred to, specifically what most folks call the ' SBL ' program only finance two asset categories - equipment and leaseholds. Because of that most firms also require a business credit line, in some cases called an ' ABL ' line. These revolving facilities are provided by traditional financiers such as banks, and, somewhat unknown to most, commercial finance companies often referred to as 'asset based lenders '.

What information is required in order to assess your firm’s qualifications under most types of financing? It's not as complex as it might see. Traditional applications often include just financial statements, but can also be augmented by a business plan or cash flow forecast.

In all cases you should be prepared to demonstrate the type of collateral that requires financing (which might include just your sales), mgmt experience, and a solid understanding of how loans or cash flow facilities will be repaid or revolve

So yes, it’s true, not all business financing solutions are equal when it comes to benefits or qualifications. Seek out speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
to determine your exact needs and potential solutions.


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 : Timing Your Loans & Funding Needs For Maximum Success In Capital Solutions

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Thinking Of Testing The Water On Business Financing Solutions ?

OVERVIEW - Information on business financing in Canada . Issues facing companies who require loans and other capital funding and cash flow solutions to survive and grow their business

Business financing needs in Canada might be requiring you to ' test the water ‘. But the question that begs to be asked is what amount of capital do you require for your company and, equally important, what is the desired or best funding solution. Let's dig in.

Full scale business might well be required for larger financing - we're typically talking 1 Million ++ $, and that includes solid executive summaries, cash flow forecasts, etc. But in the ' SME “market (small to medium enterprise) (where a lot of action takes place!) that's definitely not necessarily the case.

We'll point our though that any business owner/financial mgr who can't provide basic info such as financial statements, owner info, background story, etc is somewhat doomed to failure in achieving their company financing goals. In some cases a third party business financing advisor/consultant might be the best person to move your financing needs forward.

Keep in mind also that whether it’s a small or large amount of due diligence you will always be required to submit a proper application and relevant back up info - Example - aged receivables, payables, articles of incorp., , tax obligations, etc

Naturally new capital can come in the form of new owner equity (not what we are talking about here today) or debt and asset monetization solutions. ( That's what we're talking about today )

What then are the basic financial solutions available in SME COMMERCIAL FINANCE ? They typically include the following:

A/R Financing - (includes factoring, Confidential Receivable Financing)

Inventory Finance

Bank credit lines / term loans

Non bank full business credit lines – ‘ ABL’ loans

Equipment Finance/sale leasebacks

Govt of Canada Guaranteed Small Business Loan Program (this just in! New limit is $1,000,000.00)

SR&ED Loans- Refundable tax credit financing

Royalty Finance

Franchise Loans

Unsecured cash flow loans


Our experience tells us that timelines often drive the financing need, with, unfortunately many clients demonstrating reactive as opposed to proactive financing searches. Some transactions definitely require more time than others to successfully be completed, and unfortunately some firms don't have the financial resources to control their destinies! Aka ' running out of cash!

Can we provide a guarantee around your business financing needs? Yes we can! We guarantee that your financing search may well become time consuming and frustrating and challenging! Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you with your business finance 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

Business Funding Sources In Canada: Clarifying the Capital Financing Connections You Need

Is Your Business Funding Situation As Clear As The Great Molasses Flood of 1919? Not Any Longer

 

 

 

 

 

 

 

OVERVIEW – Information on business funding sources in Canada. Which financing source offer the right type of debt or cash flow capital that your company requires

 

Business funding sources in Canada often has business owners/financial mgrs looking for the right ' connection' they need when looking for capital and financing solutions. Often times the situation seems clear as mud... or molasses? Let's dig in.

Molasses? We're referring to the Great Molasses Flood of 1919 in Boston - where a large molasses tank burst, streets were flooded and 21 folks lost their lives! That of course isn't the same level of anxiety that business people experience around finance choices, but it often sure feels like it.

How then does the owner/mgr, particularly in the SME (small to medium enterprise) space make those right ' connections' - and, as importantly, what can they expect. It's critical of course to know what any source of capital delivers on. That changes with the current financial profile of your company and the perceived risk that lending sources associate with your business... or industry.

When owners/mgrs start the financing process and are looking for the right connection to capital they are often most concerned about the cost of that capital. These days, depending on the risk profile your company generates that rate can be 2.5% per month, or 2.5% per annum. Most clients we meet want the latter!

What then are those key factors that lenders utilize when you're on the hunt for sources of financing? They primarily are:

Size of your company

Stage of Growth - i.e. start up, early stage, growing, mature, etc

Assets on the balance sheet

Cash flow generation potential

Industry and your reputation


Many owners/mgrs we meet are often incorrectly focused on the actual type of financing they need. In fact they don't even understand the wide level of choices they have in cash flow financing and debt financing.

Those sources? You'd be amazed at your choices, including:

Cdn chartered banks

Receivable and Inventory Finance providers

Asset based lenders - financing both assets and credit lines

Leasing companies

Sale leaseback specialists

Mezzanine finance

Royalty finance solutions

PO / Contract finance

Merchant cash flow advances

Naturally some solutions are shorter term focused and provided a temporary fix, while other solutions can bring working capital and cash flow finance in the millions and could be considered long term finance strategies. Safe to say it's important to know whether you're in need of a temporary ' fix ' or a long term capital solutions. That allows you to position your company and negotiate from a level of strength

If you're looking to avoid that ' clear as molasses' feeling we described seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with financing and capital needs.


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 - 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

Financing Business Growth In Canada : Loans & Capital Strategies

The Fine Line In Growth Financing For Your Business

Information how owners/financial managers can obtain the right loans and capital for their business. Financing business growth properly determines your growth success

Financing business growth challenges in Canada requires the right type of loans and capital strategies. Does your firm have what it takes? And talk about the fine line of knowing how much debt to take on, how fast your company can grow ( before imploding ) and whether in fact other strategies that don't require debt can work for your business. Let's dig in.

Running out of funds in your business will often lead to difference levels of financial distress. Again, that's our ' fine line again, growing, surviving, or failing - the ultimate business tightrope.

Smaller businesses, including most the SME COMMERCIAL firms in Canada are private and have to forget about raising capital and stock publicly. It's great for large well known and successful companies, and close to impossible for the rest.

While it's definitely possible to run your business on negative cash flow for a period of time that strategy ultimately ends when you're at the point of being unable to meet operating expenses and loan/creditor commitments.

5 basic sources of capital exist for your business - some of them internal. They include:

Suppliers/landlords

Canadian chartered banks

Asset based lenders

Equipment finance firms

Commercial finance companies providing receivable financing/inventory loans - Their services include factoring, confidential receivable financing, tax credit financing, sale leasebacks, etc

Thinking/Dreaming of growing your business? Cancel that strategy if the patient (your company!) exhibits the following symptoms:

Slow payments/Delayed payments to your suppliers
Negative business credit report items
Poor operating ratios - dso/inventory turns, etc
Negative industry issues

The challenge of growing your business when it comes to proper financing is hard enough in good times when you're making money; your industry is thriving, etc. That challenge can often border on the seemingly impossible if your overall financial picture isn’t positive

Your overall balance sheet health will often drive what type of financing you need. It is in fact relatively easy to obtain growth financing if your firm has assets and realistic growth possibilities. That's because asset based loans totally focus on the collateral in your receivables, inventory and equipment.

Asset based loans and lines of credit typically ' replenish automatically as your business grows and turns over its assets.

Looking to walk that ' fine line' tightrope in growing your business...properly? Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in financing business growth.


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 - 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 Loans : Playing Catch Up With Capital Funding Solutions In Canada

To Do : Check out Business Loan Alternatives In Canada







OVERVIEW – Information on business loans an alternative financing solutions in Canada . Solving the quest for capital and needs for Canadian business owners from start up to high growth

Business loans and capital funding
for Canadian business is often ' top of mind ' for owners/financial managers in the SME sector. But what are the differences in types of loans, and, even more importantly, is a loan really the solution to your financing need. Let's dig in.

Borrowing for that ' loan always conjures up Canadian chartered banks as a possible solution to your financing needs. Business people tend, for some reason, to view the bank as their ' supermarket ' for financial needs .However banks are very reluctant to finance start up or newer businesses without collateral. Remember also that when it comes to equipment and other asset needs (i.e. technology, etc) equipment lease financing is a very solid alternative. No or minimal down payments and favorable amortizations make leasing the chosen provider for almost 80% of all businesses in North America.

Let's get back to that 'start up ' or early stage company need. One area the banks do come through on is the Government Small business guaranteed loan, which has Ottawa guaranteeing a large portion of your loan to Canadian banks who participate in the program. Each year billions are funded via this loan.

For businesses that invest in R&D thousands of firms take advantage of the SR&ED refundable tax credit program. Your SR&ED credit can also be monetized in the form of a bridge loan, eliminating the waiting period for your refund.

Another reason for popularity of this program is that it only finances two asset categories - equipment and leaseholds. Typically leasehold improvements are very hard to finance, ergo the popularity of the Small business loan. Although Cdn business tends to associate ' government ' with red tap and delay there is NO direct contact with the govt - its all done via your bank.

Many businesses are profitable, growing, and sometimes a combo of both. While owners/financial managers associate finance needs with a ' loan ' in reality they should be looking for a business line of credit that satisfies working capital and daily cash flow needs. It's important to know the difference between loans and asset monetization!

Alternative or ‘non bank’ lenders offer multiple solutions for ' loan ' needs. These financings include bridge loans, tax credit loans, and asset based business credit lines that work just like a bank facility - in fact they almost always are more generous when it comes to borrowing power. They also move... quickly! Additionally non bank and alternative lenders are open to taking on more risk, which of course means a higher cost of borrowing.

Looking to waste some time? You then must be one of those business owners /mgrs who focus on equity or venture capital. The hard reality is this type of financing is probably only suitable for a couple thousand businesses in Canada, if that , among the millions of small and medium sized businesses. However, if you're able to demonstrate hyper growth and unique products and services an equity investment is possible, although it’s important to remember debt in the form of loans is always cheaper than giving up ownership in your business.

Companies that have strong sales and purchase orders or contracts can also take advantage of PO Financing or Sales Royalty finance solutions. These monetize sales, and when you've generated receivables these can also be financed without the necessity of taking on debt via a ' loan '.

If you're looking to get properly ' caught up ' with business loans and the different types of capital and funding available to your business seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you take that one of your ' TO DO ' list!


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 . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS LOAN FINANCING EXPERTISE


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 Loan And Capital Needs In Canada : First Hand Tips On Loans

From Scared Amateur To Successful Business Loan Recipient – Here’s How

OVERVIEW – Information on successful capital raising in Canada . Getting a business loan boil down to these issues . Secrets and common sense on loans for Canadian businesses

Business loan chances of success in Canada can be significantly improved, both in variety of options and success when the business owner/financial manager has some basics down. That changes the ' amateur ' to the ' pro ' when it comes to financing your business in the Canadian marketplace. Let's dig in.

Although larger corporations, both private and public don’t often require personal guarantees of owners that certainly isn’t the case in the SME COMMERCIAL FINANCE area. In fact both the actual issue of the guarantee and the personal credit history of the business owner/owners will affect both rate and overall approval potential in the majority of ' traditional ' ( aka ' the bank ' ) financing .

Business owners are encouraged to ensure they can convey their personal financial issues in a manner that both protects themselves to a degree as well as helps in getting financing approval at good rates. It common for owners to try and avoid pledging personal assets - in effect separating their business and personal finances - and that's a good thing!

The concept of ' Collateral ‘is critical to business loan success. In many cases it’s either a key ' requirement ' or in some cases a ' driver ' of successful capital resolution.

It's important to differentiate between different types of assets - in certain cases its fixed assets/equipment; in other cases your collateral is your working capital accounts. These are receivables, inventory, and any tax credits that might be financeable. (The most common tax credit financed is the SR&ED refundable tax credit). Don't forget also that purchase orders and contracts are financeable under the right circumstances.

What type of ' business loan' finances new or existing assets? It could be a bank term loan; a Govt guaranteed Small business loan, or even a bridge loan that is supported by hard assets. An equipment lease is not a ' loan ' per se but is always financing hard assets, including technology. The Government Small business loan provides up to 350k in asset and leasehold financing to thousands of businesses in Canada every year.

And those ' Current Assets' on your balance sheet. Financing of those should be done via:

A/R Financing

Bank revolving credit lines

Asset based non bank business lines of credit

SR&ED Tax credit financing

If there is one ' tip ' around loans its understanding the concept of cash flow. Proving you have positive cash flow allows you to be eligible for unsecured cash flow loans. Business plans you might prepare to show the merits of loan financing to your business must include an emphasis on cash flow generation, and repayment ability.

The ability to recognize and identify the type of financing your firm is eligible for is key to capital funding success. It also saves a lot of wasted time. Identifying the right ' traditional' or in some cases ' alternative ' lender in a timely and credible fashion is key. A good analogy is that you wouldn’t go to a fast food restaurant expecting ' haute cuisine ' food and service

If you're looking to change ' amateur' to ' pro ' status in business loan and asset finance seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with capital needs.





Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :



Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

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 '

Stan Prokop

Business Financial Solutions In Canada : Untapping Capital

Is Lack Of Financing Hindering Your Ability To Capitalize On Growth Opportunities

OVERVIEW – Information on business financial solutions in Canada . Access to capital helps Canadian firms grow their business if proper financing is accessible

Business financial solutions in Canada (or lack thereof!) are the key in allowing business owners and financial managers to capitalize on growth initiatives. Let's dig in.

The myriad of finance offerings in the SME Commercial Finance sector can be a double edged sword. That's because lack of information , knowledge, of clarity around who is offering these solutions often confuse business people when in fact they are meant to solve growth problems That , coupled with the fact that many industries vary in the types of financial solutions that fit them best makes matters even more confusing .

A good example is a type of finance that's often the most sought by small businesses and even retailers - Inventory financing. This type of capital need is driven by the need to purchase and turn over inventory and is a key part in the ' bridge ' between client order, delivered product, and the generation of receivables, which in turn still have to be collected!

Banks and many commercial lenders shy away from inventory as a financeable asset only because they simply don’t have the expertise to manage and fund such an asset class. However, this has created opportunities for other lenders to focus on this niche, and create an entire market around inventory financing.

The most common method is to make inventories a part of an overall business credit facility. While that can be a Canadian chartered bank if your company is ' credit worthy ' more often than not the proper solution is an asset based line of credit , known as the ' ABL ' which includes inventory as party of your financing margin , together with receivables and equipment .

Bank term loans are low cost and have great term amortizations, but because they are cash flow and covenant based in our banking system they are more difficult to achieve. While the Canadian govt backed loan program, (‘CSBF’) provides thousands of businesses a year with billions in financing it only finances two asset classes - equipment and leaseholds. Popular misconceptions that this loan can provide working capital or inventory financing - the simple answer - It does not.

We spoke of that bridge from the time your firm takes and order to when you get paid from clients. Receivables are a part of that bridge and this asset can typically be financed at 75-90% of total A/R value. Receivables financing is accomplished through a bank facility, or, as common these days, via invoice finance. Our recommended solutions to clients is ' CONFIDENTIAL RECEIVABLES FINANCE ' if only for the reason... you guessed it... is that it’s CONFIDENTIAL.

In Canada equipment lessors and commercial mortgage firms can satisfy the bulk of capital options for equipment and real estate. They are typically long term in nature, 5-20 years respectively.

While personal equity and outside equity capital aren't often the most desirable methods to attract capital the best solution is simply choosing the right debt or asset monetization solution that meets your company and industry needs .

If you want to explore business financial solutions in more detail, with a view towards growth seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in tapping into second stage financing solutions.



Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCE SOLUTIONS EXPERTISE








Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
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 '

Stan Prokop

Cash Flows . Timing Is Everything When It Comes To Financing Business Cash Flow And Capital Management

How’s Your Timing .. when it comes to business cash flow ?


OVERVIEW – Information on cash flows and working capital for Canadian business . Financing business cash flow requires and understanding of timing and accessing solutions that work for your company or industry .



Working Capital is an area of business that requires solutions that revolve around timing.

Timing is everything when it comes to the fundamental problem of managing and solving the cash flow conundrum!

Let's examine some of those solutions using the example of a company trying to grow... which is what it's all about is it not?!

This is when what we could call your ' cash flow cycle ' needs to be both understood... and addressed. That's because the concept of timing has just kicked in ... your have produced your goods or provided your services and a specific amount of time has lapsed as you now generate revenues via invoicing... and wait for payment.

It's no secret that that whole cycle varies between each company and industry. But whether your cycle is 30 days or 120 days the effects of that timing require certain activities to be financed. The timing around this cycle, as well as the solutions that your bring to bear makes or breaks your overall liquidity and solvency - aka ' Survival'!


Example of the need to finance that cycle are should be quite clear - your firm must buy supplies or inventory, at the same time taking on payables. Wages and salaries must be covered and then you're in the waiting game when it comes to delivery and acceptance of your goods and services, as well as final payment from your clients based on your credit terms. It's therefore no secret to the business owner to see that using our example it can easily take those 30-120 days for a dollar to in effect flow through your company. Again... it’s ' timing'!

When you look at your balance sheet you see that the ratios of current assets and liabilities have also changed dramatically. You’re unfortunately less liquid and this can only be solved by financing the shortages you have carried. Of course your customer could pre pay you in advance for orders, or pay you ' cash on delivery ' but that's not the perfect world we dream about.

Financing business cash flow is all about monetizing and managing your assets. Solutions in Canada include:

Receivable financing
Commercial bank lines of credit
Asset based lines of credit
Sale lease backs
Tax credit monetization
Purchase Order and Supply Chain financing


Utilize one or a combination of solutions to manage the ' patterns' of financing that your business needs. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist your with putting together a solution that addresses the timing of cash flows and capital in your business.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS CASH FLOW FINANCING 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 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_flows_financing_business_cash_flow_capital.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