Business Capital Solutions In Canada : Accessing Proper Cash Flow & Commercial Financing

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Cash Flow Solutions - What Are The Types Of Capital For Your Business

Business capital requirements in Canada often boil down to some fundamental truths the business owner/financial mgr/entrepreneur needs to address when it comes to financing for businesses.

One of those truths? Knowing the true state of their financial condition and what financing they do and don't qualify for when it comes to meeting commercial lending requirements in Canadian business.

Business Loans In Canada

Whether you are smaller or start-up firm looking for information on how to get a business loan or a larger established firm looking for growth financing or acquisition opportunities we're highlighting 3 mistakes that commercial loan seekers like your company need to avoid making when addressing, sourcing and negotiating your cash flow / working capital and commercial financing needs.



1. Understand the true condition of your company finances - These are almost always successful addressed when you spend time on your financials and understand how your financial statements reflect your access to commercial loans & business credit in general



2. Ensure you have a plan in place for sales growth and financial needs as it relates to commercial financing



3. Understand that actual hard facts about cash flow which is, of course, the lifeblood of your company



Can you honestly answer or feel optimistic about all those 3 points. If so, pass Go and collect $ 100.00!



An excellent way to address your company's finance plans is to ensure you understand growth finance solutions, as well as how to manage in a downturn - i.e. not growing, losing money, etc ; It's never fun to fund yourself in an economic or industry downturn such as the COVID pandemic of 2020!



When we talk to clients of new or established businesses it seems they are almost always talking about sales, so the ability to understand and focus on the differences in their profits and cash fluctuations is critical.



How do cash flow and sales plans and projections affect the type of financing you require? For one thing sales growth usually starts out by consuming your cash, not generating it. A poor finance plan will drag your business down, and addressing financing simply gets tougher and tougher.



Three basics always emerge when it comes to your search for the right business capital and financing.



1. The amount of financing you need



2. The type of financing (debt/cash flow/asset monetization) The business loan interest rate will be dramatically affected by whether you choose traditional or alternative financing solutions. Private business loans in Canada come from non regulated commercial finance companies most often known as ' alternative lenders '. These lenders are typically highly specialized in one ' niche ' of business financing and may be Canadian firms or branches of U.S. banks and non-bank lenders



3. How the financing is structured to be manageable with your day to day operations

What Finance Company In Canada Can Meet Your Borrowing Needs & Why Is Capital Important In Business 

Let's identify and break down key financings your firm should know about and understand if they are applicable and achievable to your business. They include:



A/R Financing / Factoring / Confidential Receivable Finance



Inventory finance / floor planning / retail inventory



Working Capital term loans



Unsecured cash flow loans



Merchant working capital loans/advances - these loans are geared toward short term cash needs and are typically one year in duration. Loan amounts are typically 15-20% of your annual sales revenues.



Royalty finance



Asset based non bank business lines of credit



Tax credit financing (SR&ED bridge loans)



Equipment Leasing / Sale leasebacks - Equipment financing in Canada is used by almost 80% of all companies looking to acquire new, and used assets.



Govt Guaranteed Small Business Loan program - Government Loans in Canada are sometimes referred to as ' SBL', aka Note: BDC Finance solutions are available from this Canadian non-bricks and morter crown corporation. A small business loan via the government-guaranteed loan program comes with true flexibility around term loan duration, market rates, no pre payment penalties, and of course the low personal guarantee that is required by borrowers. These two ' government ' loan solutions are often perfect for financing a new business.



If you're focused on not making mistakes in your business finance needs and want to capitalize on the solutions your competitors are probably already using seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and commercial financing needs.



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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



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



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

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
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 Cash Flow Financing : Which Commercial Loans & Which Lenders?

Does Your Firm's Cash Flow Support Additional Borrowing? 1 Is The Magic Number!

OVERVIEW – Information on business cash flow financing in Canada . Commercial loans come from a variety of lenders. Does your firm have what it takes?

When business owners and financial managers contemplate additional borrowing for their firm they must think it terms of whether the business does, or will have, enough cash flow to make the debt repayments. We can further assure business owners that the bank or lending institution is thinking the same way!


When businesses enter into bank loans or other institutional loans the payments are, 99% of the time fixed and specified. The business owner and financial manager must ensure those payments can be made. If the company has over relied on debt it is viewed as highly leverage by the lender.
So how can a business owner determine if the company has the cash flow to support the debt? More importantly how does the lender do that calculation?
The calculation that banks and other term lenders focus on is called 'Times Interest Earned '. The business owner (and the banker) can calculate that formula very simply.

The Times Interest formula is calculated as follows:

Net profit before taxes, plus interest expense / divided by interest expense


The calculation becomes an absolute number. If the number is in fact '1 'that means that the company has in fact made just enough to pay the exact interest expense for the year. We would point out that this calculation is always usually done on an annual basis.
So is '1' the magic number? The answer is no, and the answer should be intuitive to the business owner. That is because a times interest of 1 means there is absolutely no cushion for anything going wrong, and all business owners no about Murphy's Law!

So if earning decline or if the company takes on additional debt our ' times interest earned ' number become unsatisfactory - that is to say that we have determined there is not sufficient cash flow to service the debt.


We have determined '1' is not a great number then, well what is? The answer, as in many facets of business, is of course 'that depends '. Many industries differ and there is not really any specific number that is viewed as the Holy Grail by lenders. What we have found though that higher is better than lower. When the number is hovering around 1 both the business owner and the lender, should and will, respectively, have some concern.
We point out also that income, as a key component in our calculation varies between companies in final calculation re tax rate and other accounting adjustments. Some lenders and business owners also add deprecation to the profit because it is not a real cash expense.


Another quick calculation business people can perform is to calculate the cash flow number as a per cent age of debt. This calculation is often done by lenders to ensure long term debt is not being miss-used. If a company has a high percentage of total debt to cash flow it should be a strong indicator to the company owners that growth will be constrained, as all cash is going to debt, not growth. Therefore new equipment, inventory, receivables, etc will suffer in terms of growth.


In summary, business owners, by doing actual current calculations, as well as projections, can easily calculate their 'times interest earned' and cash flow as % of debt. This will allow the business to position loan repayments positively with their lenders, at the same time providing them with insights into how the bank or other lender will view payment capability.


Seek out and speak to a trusted , credible and experienced Canadian business financing advisor who can assist you with your business loan , cash flow financing and asset monetization 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

Business Financing & Commercial Loans Canada : Is Growth Finance Your Rise Or Fall?

Did Ben Franklin Have It Right On Canadian Business Financing ?

OVERVIEW – Information on growth finance options in Canada. Business financing and commercial loan options in Canada

Business financing in Canada just may have been on our friend Ben Franklin’s mind we have wondered. He said ‘Drive thy business or it will drive thee ‘. So when it comes to growth finance or commercial loans that make sense for your particular company needs do you as owner/ mgr/entrepreneur feel like you're in fact ' driving the bus'? Let's dig in.

Business veterans know that in the economy, or even in certain industries there are times of boom and bust. The conundrum is often quite clear - we keep hearing about all that excess capital around, waiting to be accessed, if only we knew how to break through those hurdles of access!

Naturally every owner/mgr wants to achieve the best terms possible when it comes to a commercial loan or asset monetization facility. The actual list of funding alternatives might in fact be longer than you think. One of the reasons for that is the emergence of numerous financial alternatives to traditional bank financing that in previous times it was pretty well the only ' go to '. A somewhat succinct list of key finance alternatives for your company might be as follows.

A/R Financing/factoring/Confidential Receivable Finance

Inventory Loans

Non Bank Asset Based Revolving Lines Of Credit

Tax Credit Financing

Equipment Financing/Sale Leasebacks

PO Financing/ Contract Finance

Unsecured Cash Flow Loans/ Mezzanine Finance

Royalty Finance





Do any of these solutions sound like they can solve your firm’s financial challenges in the commercial loan area? If there's one secret to business financing access it's the fact that the boy scouts seem to have gotten it right. BE PREPARED!

Entrepreneurs /mgrs that we often meet are simply not aware of bank lending criteria - they just don't get why commercial bank solutions are not available for their needs. (By the way - the banks criteria isn't all that difficult to comprehend - it includes years in business, strong cash flows, a clean balance sheet, profits, and outside collateral)

Your goal might be to simply fund daily operating needs, or in some cases fuel new growth potential. In other cases the road to ' organic growth' might be complemented by an acquisition of a competitor.

While new ' equity ' capital is in fact a real option Canadian businesses requiring SME COMMERCIAL FINANCE needs must realize that the road to ' going public' is paved with many broken dreams - as only the smallest portion of firms are eligible for the type of criteria mandated by those VC folks.

If you're looking to ensure that external financing can contribute to the

rise of your business, (not the fall!) seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your growth finance 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

SME Business Loan Finance : Best And Worst Strategies For Commercial Loans Success

Two Ways Of Looking At Your SME Business Financing Needs – Yours and Your Lenders!







OVERVIEW – Information on achieving success in SME Business loan finance in Canada . Knowing how banks and finance companies you’re your business allows owners/managers to access the right commercial loans for your their company at the right time

Commercial loans and SME Business loan finance comes with two different optics - one is of course the eyes of the owner/financial manager, the other is the bank or commercial finance company. No surprise to many that these two views often differ! Let's examine some best and worst strategies for achieving Canadian business finance success.

The criteria for firms in the SME (small to medium enterprise) sector are in some ways different from lending criteria for larger private and public corporations. One key factor in that area is owner equity which is often a lot less on the balance sheet of SME firms.

At the same time these firms need to purchase or replace key fixed assets or new technologies. This is often best addressed by looking at lease financing options, as equipment finance allows companies to minimize cash outlays. The even better news about leasing assets is that almost every type of credit profile can still access asset financing in this manner. Companies with weaker balance sheets may be asked to either increase a down payment of shorten the lease term, but they still can be approved.

Because SME firms rarely are able to, or in fact want to access additional equity they are relegated to only two other options - taking on debt or monetizing their existing assets. In rare cases a ' hybrid ‘third solution might be in the form of a solution that provides debt and has an equity component to it - for example a convertible loan or warrant scenario.

What then are the financing options available? Part of the solution is simply understanding where your firm is at on the start up or growth stage. Typical scenarios include those where sales are starting to grow but profits are not fully being achieved, if at all! The reality is that it’s at this time that business funding is often needed the most but in fact is least accessible in the eyes of the business owner. The lender, typically ' the bank' has already weighed in and criticized your balance sheet or lack of profits and positive cash flows.

Key solutions at this point in the road include:

A/R Financing
Inventory loans
Non bank asset based lines of credit
Tax credit monetization (Financing your SR&ED credits)
PO/Contract financing
Sales/Royalty finance

Because banks in Canada are both highly regulated public companies they can rarely provide all the financing you need based on their inability to fully secure loans to your firm. That's their story and they are sticking to it.

Even firms that are profitable and achieving some measure of return on equity banks will rarely lend to firms that are offside on the total debt/equity issue. Although it can be frustrating at times it is important for busines owners to know how banks look at your financials - if only for the reason you can understand the arithmetic and decline yourself!!

Banks focus significantly on cash flow and collateral security and debt to equity relationships on your balance sheet. Banks are very focused on identifying any risk - it's as simple as that. It's important therefore if you're in start up or growth stages that you manage your working capital and asset turnover to the utmost. That's all about inventory turns, collecting your receivables promptly, and managing payables and supplier relationships.

It's at these times that the owner/manager is best to explore commercial finance company solutions that are both traditional and alternative in nature. While pricing will always be higher it will provide you with the capital you need.

Have we forgotten anyone? Oh yes, the government!

Besides the aforementioned SR&ED program which provides billions in refundable tax credits ( these can be financed ) there is also the Small Business Govt Guaranteed Loan program, providing financing up to 350k for assets and leasehold improvements.

If you're focused on acquiring the best financing strategies for commercial loan financing 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 SME business loan finance needs.

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 :

http://www.7parkavenuefinancial.com/commercial-loans-sme-business-loan-finance.html



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 Financing Plan Challenges : Solving The Commercial Loans And Finance Needs Conundrum In Canada

Here’s Your Clean White Canvas For Canadian Business Financing

OVERVIEW – Information on commercial loans and other finance needs in Canada. What the business owner/entrepreneur needs to know about the business financing plan challenge in Canada

Business financing plan
challenges rarely come with a ' clean white canvas' when it comes to options sought by Canadian business owners/financial managers seeking commercial loans or other forms of finance for their business. Let's take a ' start from scratch' viewpoint. Let's dig in.

The reality around the only two options for financing your business (debt or equity) still nevertheless provides numerous subsets of solutions within those two categories. In fact in some cases there are even ' hybrids' of those two financial choices.

So if you could start over in your financing options your understanding of where you business is in the spectrum - i.e. start up, early stage, growth, etc. is critical .Companies can burn through a lot of cash in the start up/r&d phase and those that can are encouraged to take advantage of Canada's SR&ED program if applicable. By the way, those R&D credits can be easily monetized via a Sr&Ed bridge loan, replenishing that much needed early stage cash flow.

Finance solutions for firms that are not yet profitable can also present a challenge. Although if you do have revenues those sales can be easily monetized via solutions such as A/R financing or inventory finance. Also large sales or contracts from legitimate clients can also be financed via P O / Contract / Sales Royalty finance solutions.

In some cases many Canadian firms focus on North American or overseas clients and markets. In some cases traditional finance solutions such as bank lines of credit or A/R factoring will in those scenarios require some form of credit insurance on your client base.

Debt financings suggest ' secured financing' via hard assets/term loans, etc, while some business owners prefer to ' chase ' solutions such as ' angel investments ', reverse takeovers of public companies or ' shells' or the proverbial (and somewhat elusive ' venture capitalist ').

Let's not forget the ' Government '. Along with the SR&ED program that we mentioned there is of course the Government guaranteed Small Business Loan providing financing (maximum 350k) for thousands of businesses in Canada at attractive rates and structures.

Where do many owners / managers requiring SME COMMERCIAL FINANCE solutions miss the point when they try to access traditional financing? One is simply understanding the focus of traditional lenders such as banks. Their focus? Profits and sustainable cash flow! Their fixation with your ability to paying their interest and principal is... focused! When no additional collateral can cover their preoccupation with cash flow and loan servicing it is unlikely you will get bank/traditional financing.

The good news? That ' clean white canvas' we've been talking about can deliver other forms of accessible financing - they include:

Non bank Asset based ABL business lines of credit

Lease/sale leaseback / asset bridge loan finance

Working capital solutions including Factoring/Confidential Receivable Financing/Inventory finance

If you're looking for a ' start over' strategy that works in your business finance needs seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you solve the Cdn. business finance conundrum.



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 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

Commercial Loans In Canada : No Silver Bullet Approach To Raise Capital For Business Investment

Eliminating The ‘ Dark Side ‘ Of Canadian Business : Financing

OVERVIEW – Information on commercial loans in Canada . The ability to raise capital for investment in business growth depends on a number of key factors.

Commercial loan needs In Canada: Cash and capital are two basic fundamental needs for any Canadian business. Your ability to raise capital and access funding for investment depends on some key factors. Let’s dig in.

Every counted the needs you have around working capital and ongoing cash flow? They include fixed costs such as rent/leases, wages, equipment needs, and even ongoing research and development if that's applicable to your industry. Business owners also want to ensure they are not overly exposed personally when it comes to personal assets and collateral they are more often than not required to pledge. The hard reality is that the search for cash and capital are never ending and your current situation will almost never mirror your long term needs. All those factors contribute to a feeling of entering the ‘ dark side ‘.

Many business owners and clients we meet are sometimes of the opinion there is one ' silver bullet ‘.

Top experts tell us that in fact a number of different factors determine what type of capital you require and in what amount .Those factors include:

Type of industry

Capital Intensity requirements re needs for fixed assets

Profit margins

Sources of capital can potentially be accessed quicker if you have access to people in the know - they include accountants, lawyers or a Canadian business financing advisor. Their ability to provide you with a road map to financing success increases commensurate with their expertise.

There are also huge differences in capital solutions depending on whether your firm is a start up, in business and growing, or mature and looking for new markets or acquisitions. NOTE: One of the best solutions for start up financing in Canada is the Govt Small Business Loan, aka the ' SBL '. It finances equipment and even leasehold improvements to rented premises. Having a track record in business or in a particular industry really helps here.

As businesses mature they need to both acquire and finance assets. Financing assets can be achieved through various means:

Traditional bank lines and term loans

Receivable and Inventory Financing

Monetization of SR&ED tax credits for companies that participate in that program

Asset based non bank business credit lines - They are known as ' ABL's

Equipment financing and Sale Leasebacks

Commercial lenders have never been more plentiful and are providing financing in various ' niches’ for SME COMMERCIAL FINANCE needs.

We constantly remind clients that angel investors , venture capitalists, and private equity groups offer equity capital for the rare 1-2% of business that qualifies for this method of capital raising - ' Equity '.

More mature firms may want to divest either divisions or founders may wish to sell their business. Acquisition financing must be matched to proper valuation and asset situations.
If you’re at the crossroads in business financial solutions consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can bring some light to the ‘ dark side’ of business : funding .




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 LOANS AND CAPITAL INVESTMENT 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

Explained : Commercial Loans In Canada : Basic Business Loan Knowledge

Afraid To Ask How These 5 Types Of Business Loans Work?

OVERVIEW – Information on commercial loans in Canada . What does the type and jargon around business loan availability mean to the owner/manager

Commercial loans availability for Canadian business owners/financial managers often comes with terminology that confuses the benefits of a business loan with its actual availability. We’ll demystify some of that jargon. Let’s dig in.

Hopefully every business manager has some basics under his or her belt around areas such as rate, collateral, personal guarantees, secured vs. unsecured, etc. These are the essence of the majority of Canadian business financing. Not knowing how to finance your firm and where will often have the business being viewed as ‘ unstable ‘


We can say that 5 types of common business loans dominate the commercial lending landscape in Canada. They are:

Business Term Loans

Lines of Credit

A/R Financing

Inventory Finance

Equipment Leasing/ commercial mortgages

Naturally depending on your overall financing needs one or all these might actually be applicable.

Business Term Loans - these are suited for longer term financing needs, and while interest rates might be variable more often than not they are fixed rates and 3-7 year terms while optimal for long term financing this method of financing your business is more difficult to access.

Banks probably provide the majority of term loans in Canada and insist, rightfully so, on clean balance sheets, profits, and cash flows. A healthy dose of outside collateral on other parts of the business or the owner’s personal assets might also be required.

The one term loan that is a lot more accessible to entrepreneurs is the Canadian Small business loan - it's a govt guaranteed loan that finances up to 350k of equipment and leasehold needs.

Lines of Credit - Corporate credit lines revolve daily around the current assets of your business, typically receivables and inventory. The strong alternative to bank credit revolving facilities is the ABL Asset based credit line - it is easier to obtain, provides more liquidity almost 99% of the time, and allows you to include all the assets of your business as borrowing power.

A/R Financing / Inventory Finance - These two ' current assets’ are often the most critical parts of your capital structure. Outside the bank environment these assets are financing under working capital credit facilities. Your ability to turn receivables as they become due and manage inventory turns is key to the financeability of these two assets. When it comes to receivables financing our recommended solution is CONFIDENTIAL RECEIVABLE FINANCING, allowing you to bill and collect your own receivables and borrow up to 90% of outstanding A/R at any given time. It's a solid alternative when bank financing isn't available... or isnt enough.

Equipt Loans -/ Mortgages - Billions of dollars of capital assets are financed in Canada through equipment lease finance. Using independent commercial lease firms allow you to access capital outside the bank are strong sources of additional credit for any business .There is really no upper or lower limit for asset financing via the equipment lease. Technology needs are well suited to lease financing and provide business owners with a fair amount of flexibility in asset acquisition and replacement.


In business it’s critical to pick the right debt or asset monetization strategy, carefully assessing how long you need the financing. Considerations should include your firms overall credit quality, the amount of liquidity you have, as well as restrictions demanded by lenders under different loan scenarios.

Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
to achieve the ' survive and thrive ' commercial loans your business requires. Knowing the basics of our 5 focus areas allows the owner/manager to access the right amount of capital at the right time and to not feel vulnerable in both tough and good times.





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 LOAN 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