Business Finance Sources And Commercial Financing In Canada Canada : High Stakes And Higher Rewards

Business Financing In Canada : Let’s Play Ball

OVERVIEW – Information on business finance sources in Canada . Commercial financing has more baseball similarities than you might think !

Business finance sources in Canada are quite akin to some solid baseball analogies. While that might be missed by some consider the following -

Stepping up to bat

Getting to first base

Rounding Second

Home Plate = Success

Sliding into home plate

highlights the risk and yes, high rewards of financing achieved properly.

Commercial financing still presents a huge challenge to firms all the way from start up growth in the SME sector. Let's explore that analogy, allowing your company to ensure its one of the ' good players'. Let's dig in, or should we say ' let's play ball'

Unlike many sports that allow you to practice and get it right many poorly chosen business financing options can quickly take you down the wrong road. At the same time though preparing properly for the financing you need
is in act a key ingredient to business survival and success.

So... stepping up to bat ... If your firm is either in start up , or early revenue phases your ability to explore the right funding options is ' job 1 ". Options for start up rarely include talking on any form of debt, so typical initial financing includes:

Owner equity
Asset monetization - Receivable Financing / SR&ED Tax credit loans
PO/Contract financing

The one solid exception to ' debt financing' for Canadian start ups is the Government of Canada Guaranteed Small Business Loan - aka the ' SBL'. It is available without external collateral to owners/entrepreneurs who have reasonable personal credit history (i.e. Credit Bureau Score = 650+) and does a great job of financing new and used equipment needs, as well as leasehold improvements. Spoiler alert - rates and structures are very attractive and flexible

Trying to get to first base? As your firm gains business ' traction' you're in a position to take some real ' first steps ' in debt financing and asset monetization. These solutions include:

Commercial Bank Financing

Receivable Finance (Factoring, Confidential Receivable Financing)

Asset based 'on bank' business credit lines

Equipment Financing

Working Capital Term loans

Preparation for any of the above finance solutions should include up to date financial statements , aged summaries of a/r and a/p, and , equally as important, a realistic cash flow forecast. Note - Hockey stick unrealistic projections need not apply!

Rounding Second Base? This is always a critical time for business finance choices. Your firm might be in high growth mode, and may well want to entertain finance solutions such as Mezzanine cash flow finance. Alternately your firm may be experiencing severe challenges and may well have to address the need to change from traditional bank type financing to alternate lenders who are willing to take that extra risk. Here things like debt levels, CRA obligations, or the need to ' right size ' your business is key.

The home run scenario:

Canadian businesses that hit home runs have done their best and succeeded relative to financing challenges and mastering the unexpected problems along the way. Unfortunately business is never about just ' one swing of the bat ' for a home run, so if you want to ensure reaping the high rewards of a properly financed business at all times seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can ensure ' strike outs' are kept to a minimum and chances of business survival and success are maximized. Batter up!

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
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 Finance Solutions In Canada : Behind The Scenes In Commercial Financing Options

SME Commercial Financing Options In Canada Have Not Gone The Way Of The Dodo

OVERVIEW – Information on commercial financing options in Canada . Various business finance solutions both alternative and traditional are discussed from a viewpoint of need and applicability

Business finance options have Canadian business owners/financial managers often feeling that commercial financing needs for their business have gone the way of the ' Dodo ‘ that rare bird associated with disappearing and finally extinction. Let's examine finance options that help guarantee survival and success in your business, eliminating that ' broken ' feeling. Let's dig in.


The ability of your business to get banks and commercial finance companies 'on side' is one key factor in long term success and survival. Those success milestones might be around growing your business, buying a competitor, or simply meeting the challenges of working capital/cash flow finance.

In some cases your firm needs new assets while at the same time experiencing times of challenge. It's at these times staying in control of your finances and knowing your options is key. Let's consider some ' behind the scenes' loan and asset monetization options that will provide you with the right balance of debt and ownership.


Many clients we meet have access to some sort of finance power, whether it is traditional or alternative in nature. The problem? It's not enough! In the mind of the owner/manager the more the business sells the more capital it seems to need.

The common problem in what the experts call the ' cash flow gap ' is having your sales pick up but being unable to finance inventory and receivables that arise out of those sales. When bank lines of credit are not available due to bank lending requirements alternative solutions such as invoice financing and inventory finance take up the slack. The ability of the owner/manger to know that sales raise cash at the same time allows continued focus on growth/profits.

Probably the most complimentary solution to some of the challenges we have described is the Asset based non bank line of credit. Providing a line of credit that’s based on the total combination of your receivables, inventory and fixed assets becomes a new life line of your business. More often than not it's the perfect solutions to a cash flow crisis. That same ' ABL’ (asset based line of credit') is often the only solution to a ' turnaround' story when sales have fluctuated and profits disappear. Its asset leverage 101.

The other category of business we haven't touched on is the ' start up '. Simply speaking your expectations and needs in finance rarely match those of the bank!

It's at this time that alternative finance solutions such as factoring, SR&ED tax credit financing, leasing, sale leasebacks, etc make the most sense, notwithstanding their often higher cost of borrowing.

When owners/managers deem the ' organic ' route to growth is slow the right business finance commercial financing options can help complete the acquisition of a related business or competitor. This minimizes the equity component needed, while helping to guarantee a properly completing transaction.

If you're looking for those ' behind the scenes' options that come with business success 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 required solutions.



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 = BUSINESS FINANCE 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

Commercial Financing Loans From Finance Companies In Canada : Heres Your New Rules

Super Rare Shouldn’t Be Your Description Of Commercial Financing Loans From Finance Companies & Banks

OVERVIEW – Information on commercial financing in Canada. Loans from finance companies and banks are attainable with this information

Commercial financing in Canada , if you're an owner/manager in the SME Commercial area is often dubbed as ' Super Rare '! Finance companies and banks offer a multitude of traditional and alternative loans depending on various business needs. We're covering off some of the ' new rules ' around successful Canadian business financing. Let's dig in.


As we've noted, lending to businesses in the SME (small to medium enterprise) sector seems to only happen in those TV commercials and print advertisements.

The reality though is that with some proper homework and expert assistance numerous new business financing solutions are available to run or grow your business.

For the most part the owner/manager has to reconcile to the fact that although Canadian chartered banks maintain their willingness to lend to your firm the reality quite often is that your business can't satisfy the criteria needed to achieve proper, low cost, and flexible bank financing .

Let's examine some key factors around bank loans and other commercial financing solutions. One of those is sales,

or lack thereof.

Revenues are a key driver in your ability to access business credit. Many start ups that are pre revenue or who have little revenues will find it exceedingly difficult to achieve traditional financing. It's those revenues that will create cash flow that’s mandated by banks.

Yet early stage firms can still access numerous loans from commercial finance companies. One ' hybrid' solution is the Canada Govt Small Business Guaranteed Loan Program, providing up to 350k for the purchase of assets or even leasehold improvements to your business. The ' Guaranteed ' terminology revolves around the fact that the Federal government guarantees the majority of the loan to your bank,

Canada's non brick and mortar federal crown corporation bank also provides working capital term loans and asset financing that is often complimentary to a total finance solution you require.

Other solutions that can monetize your assets into valuable cash flow include:

A/R Financing

Inventory Finance

SR&ED Tax Credit Monetization

Purchase Order Finance

Equipment Financing

Asset based business credit lines


The ability to demonstrate loan repayment is best demonstrated via a solid business plan and cash flow forecast - with emphasis on the ' cash flow ' part, not meteoric sales projections that resemble a hockey stick.

While many firms can be self financing to a certain degree at a certain point the right amount of debt , aka ' leverage ' will help grow the business faster .
A good example of ' good debt ' is equipment leasing, where certain assets you need can help you substantially grow revenues or decrease expenses.

If you're looking to ensure you've got the ' New Rules ' down on both traditional or alternative financing solutions , and you want to eliminate ' super rare' from your commercial financing thoughts seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with key needs.




Stan Prokop -

7 Park Avenue Financial :

Commercial Financing Choices : Evaluation Bridging Finance In Canada : Asset Monetization Bridge Loans vs. Equity

Ready To Triumph In Private Commercial Financing ?



OVERVIEW – Information on bridging finance solutions in Canada . Bridging finance alternatives are compared to equity capital . When do bridge loans and alternative financing make the most sense






Commercial financing for private companies in Canada, or rather, the lack of it has been a challenge for companies in the SME sector (small to medium enterprise) for some time. Let's dig in.

Remarkably even the owners of Canada's largest stock exchange, the TMX Group recently announced capital raising activity for companies whose longer term goal is to ' go public '.

In the mean time the business owner grapples with lack of bank financing, and finds himself or herself considering bridging finance solutions - those bridge loan and alternative finance solutions that are non bank in nature.

Top experts, including those TMX gurus tell us that ' bank loans and venture capital are tougher to come by '. Naturally private financing of a larger nature comes with ' control ' issues, or loss thereof, as the stats tell us that when private equity and VC's are done with your firm they often own majority interest in the business, in fact over 86% of the time!

Financing in the SME sector typically involves amts of 250k and goes up to the 10-15M dollar range. The challenge for the owner is almost always the same - debt, or equity?

The core of bank financing in Canada revolves around the ability of our chartered banks to ensure loaned funds are always secure. If a business does not have cash flow repayment power, or significant unencumbered assets then getting all the financing you need will be difficult. While the entrepreneur dreams of hyper growth the bank dreads it - there go the ratios!

The Canada Small Business Loan program is often a solid alternative for start up or fledgling companies. It's all about the government guaranteeing loans that typically max out at 350k - recent changes to the program have made this program worth watching.

The challenge with taking on debt in commercial financing is simply repayment ability - don't forget also that repayment of bridge and asset loans come at the cost of not being able to plough that money back into the business. Many businesses in Canada become so focused on their debt that the hurdles to growth and success are even higher.

Equity capital in Canada can come from several sources, in addition to the new kid on the block ' Crowd funding’ the owner can also solicit capital from Angel investors, VC's, and strategic partners.

While equity investors rely on sales projections and future valuation and operating margins the asset lender focuses on past and present financial statements. Here the focus is debt load, quality of accounting and cash flows.

Bridging finance solutions in Canada include:

Non bank commercial finance companies

Equipment lessors

Mezzanine lenders

Solutions offered by these firms include:

A/R financing

Inventory Finance

Sale Leasebacks

Royalty and Contract Financing

Franchise loans

SR&ED Tax credit monetization

Asset based lines of credit that bundle A/R, inventory and equipt into one solution

If you're looking to ' triumph' via bridge loans and asset monetization seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your commercial finance 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 :


7 PARK AVENUE FINANCIAL = CANADIAN COMMERCIAL FINANCING 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

Remove Business Working Capital Action Paralysis : Understanding Commercial Financing Options

You Are Looking For A Simpler Plan For Business Financing Solutions

Information on business working capital solutions in Canada. The right commercial financing company removes the ‘ capital’ obstacle




Business working capital often creates somewhat of a state of ' paralysis' for many business owners. They are almost ' caught in the crosshairs'

when it comes to understanding their commercial financing options and demystifying the complexity around the need for those solutions. Is there a simpler way? Let's dig in.

Top experts tell us that when it comes to the SME Commercial sector of business in Canada owners and managers often don't realize the impact of a lack of working capital and cash flow until it's a bit too late sometimes.

In some cases, quite remarkably, they are not even aware of all of the traditional and alternative options they have available to them. They also are often not aware of both government and commercial financing programs that could potentially provide them with the funding options they need.

It is of course not surprising that almost half of business owners or their financial managers tend to only think only of their existing ' bank ' as the sole source of their financing solutions. Financial advice and solutions arising out of that advice also often comes from their accountants , searching the internet for ' Canadian business Financing ', and finally engaging a hopefully trusted, credible and experienced Canadian business Financing Advisor with a track record of success in business working capital solutions .

We recently read a study that indicated that over 60% of business owners stated that at certain times of the year they always need extra funding. That of course could come from seasonality in their business, ' bulge' situations that arise out of large contracts or orders, etc.

That type of short term cash crisis always demands funds and it’s often a case of simply surviving, let alone focusing on long term growth of the business.

Fortunately, or unfortunately? many business owners/managers often rely on their suppliers and vendors as a source of cash - they of course do that by maximizing their supplier credit facilities and then delaying payments as long as they can.

Technically speaking increasing payables in fact does enhance cash flow from operations, but it is often at the risk of the key relationships you need from major suppliers and vendors.

It (almost) goes without saying that your ability to play business working capital financing is really what needs to be done. In the case of cash flow fixed term debt is rarely the solution, so the business owner should consider the following solutions:

Receivable Financing
Inventory Finance
Purchase Order/ Supply Chain financing
Chartered bank business credit lines
Non bank asset based credit facilities (‘ABL’)
Tax credit monetization

Any one or a combination of the above solutions enhances cash flow especially when you are in fact growing your business.

Understanding the impact of commercial financing solutions is key to business working capital. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in unraveling the paralysis that often comes from understanding your working capital options.





Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian companies , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded in 2004 - Completed in excess of 90 Million $$ of financing for Canadian corporations . Info re: Canadian business financing & contact details :

7 Park Avenue Financial = Canadian Commercial Financing And Working Capital Option 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

Stan Prokop

Commercial Financing For Business Credit Lines . Is ABL A Revolutionary Way To View Operating Finance Needs

Looking To Get The Upper Hand When It Comes to A Business Credit Line?

Information on commercial financing in Canada . ABL borrowing is a viable alternative to bank business credit lines for firms that can’t always access the financing they need


Commercial financing for business credit lines. Is there a revolutionary new way to look at the way businesses in Canada can access operating credit? We know there is, and it’s the alternative to the good old stand by of bank commercial borrowing. It's called ' ABL ‘. Let's dig in.

ABL’s are asset based lines of credit that are typically ' non bank ' in nature. Some of the very reasons your firm might not be able to obtain bank financing are the same reasons you're the perfect candidate for a business credit line via ABL.

Non bank commercial entities offer asset based loans that operate in a very similar manner to bank revolving credit facilities. All these facilities monetize your current assets -typically A/R and inventory. The asset based credit line takes it two steps further:



1. It often includes fixed assets which increase your borrowing base, but the facility revolves in the same manner

2. Borrowing margins are significantly higher - Receivables typically financed at 90% - Inventory in the 30-70% range depending on quality and mix of the asset in question

Business owners who are growing or have their debt to equity and cash flow ratios temporarily out of whack are also very appropriate candidates for this method of financing. Dont get us wrong though - you still have to have qualified commercial receivables to decent clients, as well as inventory that have the appropriate amount of turnovers and can be liquidated by the asset based lender if needed. Hopefully that is never going to be the case though!

Asset based financing started in the United States, and is also prevalent in Europe. It continues to gain a strong foot hold in Canada, but clearly there are fewer players involved. This often makes it challenging for the Canadian business owner and manager to access the right partner . Some expertise in picking the right partner is highly recommended.

Clients often question us on minimum and maximums size of transactions for business credit lines that are non bank in nature. Typically $ 250,000 is the minimum, and all things being equal there is no upper borrowing limit if your firm has the assets to qualify.

Many businesses are pressured either via banks or other lenders or their equity investors to put additional equity into the company. ABL business credit allows you to eliminate the ' equity ' component of your overall financing strategy. As a result it’s good for larger retailers, tech firms, manufacturers, distributors, almost ever industry is a candidate.

Is it all ' apple pie and motherhood ' when it comes to ABL credit? Not all the time, as this method of financing is typically (not always) more expensive and you have to be prepared to report a bit more regularly on the assets being financed. That’s because they are the sole collateral for your borrowing! Debt to equity and cash flow coverage don't really play a role in this type of borrowing.

The average business owner, financial manager, CFO rarely feels they have the ‘upper hand ‘ when negotiating day to day credit facilities. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you select between bank and ABL facilities in a manner that suits your company best.


Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.

Info re: Canadian business financing & contact details :

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

7 Park Avenue Financial = Commercial Financing & Business Credit Line Expertise













Stan Prokop

Talking Points For The Canadian ABL Business Credit Line . It’s Commercial Financing That Works!

Why You Should Consider An Asset Based Line Of Credit

Information on the Canadian ABL business credit line facility . A unique commercial financing facility based on your assets.



We hear the term a lot these days. A ' talking point ' is simply a ' succinct statement designed to be persuasive '. Let's examine some key talking points on commercial financing in Canada, very specifically the ABL business credit line. (ABL is the acronym for asset based lending).

Part of our job seems to always be simply defining ' ABL ' in our context, because it's often a catch all term or various single asset finance categories, for example receivable financing.

Instead we're talking about what is referred to as a ' comprehensive ‘business credit line, one that lends against a combo of inventory, receivables, equipment. Although low interest rates are what often attracts clients to a more traditional Canadian chartered bank line the reality is that thousands of firms simply can't access traditional bank credit.

Although the Canadian economy has somewhat slowed down financing needs are as large as ever, whether you're a start up, an early stage company, or a mid market or larger corporation.

In the U.S. this form of financing is very developed, in Canada it's been a different story with various players, mostly non bank, not regulated firms have come and gone, and returned back to the Canadian space to deliver this commercial financing product.

‘Are there times when the ABL business credit line is a perfect solution for business finance”? is a typical client question. Probably the most common time for your firm to consider it is when you are in a restructuring phase. This is when the power of this business financing truly emerges because at a time when you company needs it most and can't qualify at the bank ABL business credit typically increases the funding to your firm.

The caveat tot that last statement is simply that you need to have the ' assets' on which that increased lending is based - That's the ' A' in asset based financing!

It's at this point that we always find ourselves explaining the differences in this financing relative to traditional bank commercial facilities. Those facilities are much focused, it’s the triumvirate of profitability, cash flow, and a very decent balance sheet; oh and by the way, you require all three!

It's the flexibility in structure that is most appealing to clients considering this method of finance. All of those ratios, covenants, outside collateral, personal guarantees tend to be either non existent or very minor ' talking points' when it come to an ABL facility. So when you are attempting a ' turnaround ' the asset based line of credit, simply speaking, is turning with you.

Another great talking point for our proposed new facility is that it can almost always facilitate peaks and bulges in your business; those temporary spikes in working capital needs are sometimes difficult to resolve in a more traditional chartered bank facility.

If there is one final ' talking point' to add it’s simply that the ABL business credit line is probably the best finance method to support sales growth when you are capital structure constrained. So as the Canadian economy improves you aren't penalized by previous challenges you have undergone.

Speak to a trusted, credible and experienced Canadian business financing advisor on what you need to know about this innovative method of business finance in Canada. Understand the requirements and take advantage of the benefits!






Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/abl_business_credit_line_commercial_financing.html