Eliminate Commercial Finance Pressures With An Asset Based Lender

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Information for Canadian business owners and financial managers around a financing mechanism to solve for commercial finance pressures. Why an asset based lender might be your Canadian business financing solution

Do commercial finance solutions seem out of reach - want a simple solution? Go visit a Canadian chartered bank and get all the business credit you need! Unrealistic... maybe, maybe not, but one sure fire solution for your problems might be an asset based lender.

For many years now the non bank asset based lenders have been working with firms such as yours on credit facilities that fit the real world need of your company when it comes to inventory, receivables, equipment and real estate.

Canadian business owners and financial managers are probably asking themselves why they haven't heard of this before - we'll hit you with another shocker, some of the Canadian banks even have internal divisions of asset based lenders that compete with their regular commercial banking business!

Anyway, the bottom line is that this Canadian business financing solution might be your ultimate cash flow and working capital solution.

For the uninformed asset based lending is essentially a revolving line of credit which provides you with working capital, cash flow to cover your operating expenses and growth needs. Why is it different then from a typical bank type operating loan? Simply because there is only one focus, the assets. And because the asset based lender is a specialist in commercial finance and the value of your assets you ability to draw on those assets intensifies greatly - in many cases you will obtain 50-100% more leverage on your current assets than you ever have before.

Again, why is this so different - its because the focus is on your personal credit, your company's current or past challenges... its solely on, you guessed it..' the assets'!

In certain cases even a purchase order financing type facility can be put in place, and more often than not the asset based lender will accommodate what we term as ' bulges' or unusual temporary needs of your business based on seasonal cash flow, large new orders or contracts, etc.

As a business owner we think you can see that the total focus now seems to be on your future sales ability and the overall bench strength of your assets. It certainly is not untypical to receive 90% financing on receivables and 50% or often more on your inventory as ongoing advances for your cash flow needs. We also tell clients that unencumbered equipment can be factored into the facility also, so you in effect have a fixed asset that provides you with working capital. That's creative financing!

Clients always asked what the approval criteria are - the truth is that the criteria that an asset based lender requires are significantly less demanding than those imposed by bank, the latter focusing on rations, covenants, external collateral, strength of persona guarantees, and on it goes.

Commercial finance made easy is a great by line for an asset based line of credit. After a standard business financing application and submission of back up date which would include aged receivable, inventory listing, equipment list, recent financial statements, etc you would typically receive an expression of interest. After initial due diligence on your overall asset size and quality typical security documentation and registration takes a couple of weeks.

Speak to a trusted, credible, and experience Canadian business financing advisor who can provide you with clarity on cost, process, and most importantly, the benefits of an asset based line of credit or working capital facility.


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 13 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info & Contact Details :


http://www.7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

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

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


Stan Prokop








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

Article Source: http://EzineArticles.com/5405332

Business Financing In Canada : Unlocking The Mysteries of Commercial Finance Funding

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Tips on successfully securing business financing in Canada

Information on business financing in Canada . Commercial finance solutions require certain information and strategies for funding success . Here's why.. and how

Business financing is a challenge anytime, from the entrepreneur's dream of a small start up to major corporate needs.

The current economic downturn makes the above noted challenge even more daunting. Whether a firm is established and doing well, or experiencing financial distress or working capital or growth needs - the challenge remains the same.

What is the 'challenge'? Simply speaking it is identifying the proper financing solution , determining whether the solutions is a short term fix or a long term solution , and then, most importantly executing with experience the proper financing solution.

The business owner must be able to properly position the current shortcoming as both an opportunity and risk appropriate.

Proper financing begins with the owners and his advisors ability to identify the current financing challenge. The owner and advisors must provide a compelling reason for the lender to assist in an appropriate financial solution.

Who are these 'advisors'? Typically they are internal financial staff, i.e. CFO/Controller, etc, or alternately third part accountants and experienced financial intermediaries with a track record of success.

Business Financing is complex - However at the end of the day the financing solutions are actually very well defined - They are as follows:

Leases and Term Loans

Working Capital Loans

Asset Based Lines of Credit

Bank credit lines

Non bank credit lines

Receivables purchasing

Inventory Lines of Credit

Purchase Order Financing

Unsecured cash flow loans / Mezzanine finance

Commercial mortgages

Tax Credit financing

The business owner, and their advisor, should have a very clear focus - That focus is as follows: What is the best financing solution on either a short term or an intermediate/long term basis for the business. Does the business owner or executive clearly understand all the financial options available - what are the criteria for these different options - what are the rates/terms and structures for each option. 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 cash flow 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

Funding A Business In Canada – Busting Those Urban Legends On Financing And Commercial Finance Options

De-Stressing Your Business Credit Crunch Via High Functioning Financing Solutions

OVERVIEW – Information on properly funding a business in Canada . Exploring various commercial finance issues and solutions for Canadian companies

Funding a business in Canada at times must seem like sorting through urban legends

and myth vs. reality. Financing choices via banks or commercial finance firms seem either plentiful or non existent at times! We'll review some basics around ' de-stressing' your ' credit crunch' with a view towards high functioning finance solutions that make sense for your firm. Let's dig in.


The reality in Canadian business financing is that your firm will often experience at times a contraction in business financing capability. That might be from external reasons - i.e. the 2008 world depression debacle, or simply challenges in your own business re profit/loss etc.

The harder reality is that small firms tend to be much more vulnerable, and many business owners/financial managers look to newer non bank finance solutions for business credit. Those that seek bank credit typically look for either revolving credit lines or term loans of some type.

Many business owners certainly would agree that the ' bank relationship' concept is often more of a myth than reality , as concepts such as mgmt depth, business strategy etc are often misplaced by commercial credit scoring with a focus on ratios . The hard reality of Canadian business banking is that there is no real distinction in services and credit appetite, unlike the U.S. where choice abounds based on a different banking system.

Many businesses are looking towards Asset Based Lending (‘ABL ' ). This is a direct replacement for bank credit lines, providing working capital finance based almost solely on your business assets - not the ratios!

There are some interesting and popular subsets of asset based lending such as A/R financing, Inventory finance, etc. The ' harder assets' of your business, i.e. equipment or real estate can be addressed by equipment leasing or sale leaseback strategies which are tremendous popular.

It should never be forgotten that both owner equity and credit from suppliers often round out financing needs for many businesses in the SME (small to medium enterprise) sector.

In our opinion if you're looking for a true ' urban myth ‘spend some time looking for ' government grants ‘. While some ' grants ' (aka ' free money’?) exist they rarely can finance a business and often require ' matching ' of some sort.

The two government financing scenarios that are clearly NOT myth are the Canadian Government Small Business Loan and the SR&ED refundable tax credit program. These two programs fund over 10,000 businesses every year for amounts reaching 10 Billion dollars. No urban myth with these two programs.

For real world financing in Canada it's highly recommended to ensure you have both a business plan/cash flow forecast and a total focus on cash flow and debt repayment reduction in those documents. Naturally track records and business assets/collateral always help! Start up entrepreneurs take note!

If you're looking to de- bunk some Canadian business financing urban legends with a view towards time mgmt ( and ' de-stressing ' !) 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 commercial finance options and solutions that are ' high functioning' for your business.




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 COMMERCIAL FINANCE & FUNDING 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

Eliminate Commercial Finance Pressures With An Asset Based Lender

Do commercial finance solutions seem out of reach - want a simple solution ?... go visit a Canadian chartered bank and get all the business credit you need! Unrealistic... maybe, maybe not, but one sure fire solution for your problems might be an asset based lender.

For many years now the non bank asset based lenders have been working with firms such as yours on credit facilities that fit the real world need of your company when it comes to inventory, receivables, equipment and real estate.

Canadian business owners and financial managers are probably asking themselves why they haven’t heard of this before - we'll hit you with another shocker, some of the Canadian banks even have internal divisions of asset based lenders that compete with their regular commercial banking business!

Anyway, the bottom line is that this Canadian business financing solution might be your ultimate cash flow and working capital solution.

For the uninformed asset based lending is essentially a revolving line of credit which provides you with working capital, cash flow to cover your operating expenses and growth needs. Why is it different then from a typical bank type operating loan? Simply because there is only one focus, the assets. And because the asset based lender is a specialist in commercial finance and the value of your assets you ability to draw on those assets intensifies greatly - in many cases you will obtain 50-100% more leverage on your current assets than you ever have before .

Again, why is this so different - its because the focus is on your personal credit, your company's current or past challenges... its soley on , you guessed it ..' the assets'!

In certain cases even a purchase order financing type facility can be put in place, and more often than not the asset based lender will accommodate what we term as ' bulges' or unusual temporary needs of your business based on seasonal cash flow, large new orders or contracts, etc .

As a business owner we think you can see that the total focus now seems to be on your future sales ability and the overall bench strength of your assets. It certainly is not untypical to receive 90% financing on receivables and 50% or often more on your inventory as ongoing advances for your cash flow needs. We also tell clients that unencumbered equipment can be factored into the facility also, so you in effect have a fixed asset that provides you with working capital. That’s creative financing!

Clients always asked what the approval criteria are - the truth is that the criteria that an asset based lender requires are significantly less demanding than those imposed by bank , the latter focusing on rations, covenants, external collateral, strength of persona guarantees, and on it goes .

Commercial finance made easy is a great by line for an asset based line of credit. After a standard business financing application and submission of back up date which would include aged receivalble, inventory listing, equipment list, recent financial statements, etc you would typically receive an expression of interest. After initial due diligence on your overall asset size and quality typical security documentation and registration takes a couple of weeks.

Speak to a trusted, credible, and experience Canadian business financing advisor who can provide you with clarity on cost, process, and most importantly, the benefits of an asset based line of credit or working capital facility.
--
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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/commercial_finance_asset_based_lender.html

How to Take Advantage of Commercial Finance Factoring Services 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!

__________
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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details:
http://www.7parkavenuefinancial.com/commercial_finance_factoring_services.html