6 Reasons To Consider Business Equipment Financing . Asset Finance Power Tools For Your Company

Immediate Asset Finance Cash Flow Savings


Information on asset finance . Why business equipment financing from Canadian leasing companies works for your firm . 6 Reasons to lease .




Business equipment financing continues to be by far the most popular method of asset finance for the Canadian company wishing to make fixed asset acquisitions. Virtually every type of asset class can be financed, and the lease finance industry as a whole is not prejudiced when it comes to industry types - every industry utilizes this financing mechanism.

The ability of Canadian companies to realize the benefits of this key aspect of Canadian business financing makes it more popular everyday. Leases are often confused or lumped in together with equipment loans and it’s at this time you need to know some of the basic aspects of accounting, tax and legal when it comes to differentiating between the two.

Operating leases tend to sometimes bring the most amount of confusion to the table, simply because when they are not structured properly they could be treated as a loan and additional debt on your balance sheet.

Let's examine 6 powerful reasons to use business equipment financing in Canada. Reason # 1 is certainly not our most favorite, but it tends to be the clients, and that’s simply the issue surrounding rates and payments.

Clients like both of those to be... low! While many other aspects of equipment leasing in Canada tend to be as important business owners and financial managers always seem to be looking for the most economical way of acquiring assets. There is an old joke among leasing companies that is unfortunately at the expense of you the lessee. It's simply that any firm can guarantee you the lowest rate, if, and it’s a big if... you sign their lease contract. That of course infers that many other scenarios come into play when it comes to the proverbial monthly payment.

The reality also is that when you focus in on rates only you miss many of the value add dimensions of business lease. some of which are equally as important as we have said. Bottom line, don't always thing asset finance via leasing is a commodity!

Reason # 2 to consider is the whole issue of assets, or fear of assets. Naturally you want to also separate the issue of the price of the asset from the financing - car dealers are masters of that one when it comes to intertwining them as we as consumers know. Leasing allows you to focus on the asset itself and the productivity that comes from it. Leasing provides a great return on investment when you consider the asset in terms of return on investment and cash outflows.

Reason # 3- Managements pay cheque ! What do we mean by that? Simply that many medium size and larger corporations compensate management on finance lingo such as EBITDA. Depending on how your management is measured when it comes to economic performance and ROI the right type of lease strategy can enhance that calculation. Another quick example, operating lease transactions reduce capital outlays.

Reason # 4- It’s all about the money ... or the cash flow conservation. Quite frankly many firms have to lease, they don’t have a choice, because when it comes to working capital you are conserving it via a business equipment financing strategy. Down payments are also eliminated or diminished. 100% financing is very often achievable via lease asset finance.


Reason # 5- Your balance sheet. Properly structured operating leases, aka the ' lease to use ' option can enhance your balance sheet. Even if bankers and other lenders add the assets back in them quite often will not add in the entire original balance. Technology acquisitions in Canada in computing, telecom, etc are perfect for operating leases, as they eliminate technological obsolescence.

Do we have a final reason today? We sure do, and it’s simply the issue of convenience. An asset finance company can approve and structure a proper lease for your firm in a matter of days. Small transactions in the industry are actually often approved and financed within 24-48 hrs! You can easily these days perform a lease vs. buy calculation and also bundle in numerous other services into your transaction.

Consider speaking to a trusted, credible and experienced Canadian business financing advisor to ensure you're focused on our 6 great reasons to consider business equipment financing.







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/business_equipment_financing_asset_finance_company.html

Does Canadian Franchise Financing Success Mean Everything To You ? Tips/Info Franchising Company Lenders / Loans

We can pretty safely bet that after you have made a decision to purchase a franchise in Canada that franchise financing becomes, at least temporarily, one of the most important priorities in your life. Let’s examine some tips, info, and strategies allowing you to work through, successfully, the finance company and the various lenders and loans available to yourself.

In speaking to many clients it’s quite clear that the type and style of franchise they wish to purchase is often tied to their perception of their ability to close financing on that purchase. And when we look through the business news these days it seems that all types of businesses, from start up to large corporations have formidable financing challenges.

The reality is though, that if you have priced your franchise purchase properly relative to your own personal situation, which includes your credit history... that you should be in a position to acquire the financing you need.

So what are the ingredients to that success? Some of the key basics are a ' proper' proposal and your ability to commit some capital to the business. Clients are always concerned about how much owner equity they will have to put into the business - In Canada our experience is that typically is in the 10 - 40% range, with 10%being the absolute minimum.

Franchise financing is sold on the basis of your business plan. That document does not have to be as formal as you think, but it should include the essence of what you are trying to achieve. Those basics include info about yourself, your work and career history, your personal financial situation. The document should then cover off details on your franchisor, the business model they operate under, and finally, and perhaps most importantly a credible financial projection.

We're often asked how much detail goes into the financial projection for the franchise financing company or bank. The simple answer to that is that you should be demonstrating in a clear fashion how the loan or loans will be repaid.

We encourage all clients, via vigorous discussion to ensure they are in a position to defend their sales and cash flow projections - and, as importantly, are prepared to answer any questions the lender might have. A clear presenation,backed up by your confidence and experience are key to franchise financing loans that are successful.

Contrary to the beliefs of many franchisees in Canada your franchisor typically doesn’t play a large part in the actual financing of your franchise. In certain cases they possibly might have some sort of program in place with a finance partner, but that somewhat rare in the mainstream of franchises that sell in the 100-350k range.

So how are these financed then? Good question! One or two specialty franchise finance firms provide acquisition loans in the industry. These typically are for the largest brand names and when ticket size of the purchase is quite significant.

The reality is that the government, via the Canadian BIL / CSBF program has evolved into one of the largest financier of this business segment in Canada. The program has been adopted by hundreds, probably thousands of business owners to facilitate franchise financing loans. And for good reason, low financing rates, great terms, structures, and maximum flexibility on repayment.

In many cases financing of your franchise is complemented by specialty equipment financing for certain assets, as well as working capital loans when that is prudent and feasible. We always remind clients think in terms of acquiring the franchise, and then focusing on ensuring it will be financed properly on an ongoing basis. Running out of money right out of the gate is not recommended! That’s where your business plan and financial projections must be realistic.

Don't let the financing of your franchise overwhelm you - speak to a trusted, credible and experienced Canadian business financing advisor on a finance strategy that makes sense for your particular situation.



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/franchise_financing_company_lenders_loans.html

What Type Of Start Up Business Financing Loans Are Available For A Canadian Company ? Startup Loan Info

Solving the startup financing challenge in Canada


Information on start up business financing in Canada . Starting a company? What type of loan/loans are available , and what do you need to do to successfully complete a startup finance strategy that makes sense.




We're all for hard work and facing challenges, but boy do we respect anyone setting up a business today and looking for start up business financing . What type of company loan/ loans and finance facilities are available for the Canadian entrepreneur?

We can pretty safely say it’s always been tough to finance a start up but in more challenging economic times you can easily assume a hard job just got harder. So what types of financings are available to Canadian entrepreneurs, and as importantly, what do you need to do to get properly prepared to complete loan/loans?

Many of our clients cringe when we ask them for their business plan - its seems a daunting task for many, and certainly doesn’t have to be. Even a very strong executive summary will often do the trick - information about yourself, your background, your new business, and, most importantly, what we call the financial potential. That potential of course relates to being able to pay back your borrowings!

Want to overcome obstacle #1 then, that business plan. Simply speaking, get someone else to do it, an experienced, credible and trusted Canadian business financing advisor. That recommendation can come from a business peer or friend, a banker, or your lawyer and accountant. These people are on the front lines of start up business financing for your company and others.

So what are some of actual borrowings available for start up Canadian companies? They include the Government small business loan - commonly called the SBL. Another government crown bank provides working capital loans that are true cash loans that are in effect unsecured - they require only your promise to pay, and of course that of your new business .

Other methods of financing your start up include receivable financing, aka ' factoring ', which provides instant cash on every sale you make, albeit at a cost. But ask yourself this, whats more important to you at this time, ' the rate ‘or access to capital? In the majority of cases we think its access to capital. Many firms that are retail or consumer oriented have gravitated to merchant cash advance financing, in effect loans made against your future sales. (A little bit of every future sale is used to repay you loan).

Having realistic sales and cash flow projections often makes or breaks the new start up in Canada. The reality is that many clients we meet with bring us unrealistic sales projections, and, on top of that those projections don’t have realistic cash flow attached to them.

Case in point, the business entrepreneur shows revenue of 100k cash coming in of 100k in that same month. Guess what though, it’s not a perfect world, and the reality is that cash, if you are selling to a business, will come in stages in 30, 60, and we shudder! even 90 days. So get realistic on cash flow, and have your plan B ready!

Many physical assets you need can be financed via Canadian lease financing. But be careful to ensure you have the right type of lease in place, and that the rates are commensurate with your overall credit quality, and that the terms and structure of the lease... you guessed it... make sense! (Don’t lease computers for 7 years!)


Many clients we speak to don’t realize the 100% OPM doesn’t work .OPM is of course ' other peoples money ', and Canadian business owners need to address the fact that they require a reasonable personal investment into the business. Whats reasonable? That question comes up pretty quickly !There is no one single answer ; as an example the government SBL small business loan requires a 10% equity injection by the owner . In the cases of lease financing 10-20% down typically are reasonable requests from the lessor.



So whats our bottom line if start up financing in Canada. First, its boy do we respect your entrepreneurial spirit! But pay attention to those details we have discussed, and seek the services of a trusted Canadian business financing advisor who can make that road you have not traveled before a much more pleasant journey, and distance!



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/start_up_business_financing_company_loans_loan.html

How To Finance Working Capital – Imagine Your Canadian Company had the Credit & Financing It Needed

It almost seems like a pipe dream, does it not? Actually having the cash flow and financing you need. And yes, don’t take it personally; even the big guys have that same challenge. Let’s examine how your company can assess and address methods to finance working capital, accessing credit and financing in a manner that works.

A good way to look at things is both externally and internally. From the internal perspective it’s a question of knowing the amount of working capital you need - as well as managing your day to day current assets (primarily A/R and inventory) in a way which optimizes cash flow.

And from the external perspective it’s about assessing solutions, but more importantly, solutions that work. It's those inflows and outflows that count. Probably the simple way to look at it is simply knowing your operating costs, while at the same time collecting sales, i.e. your A/R, efficiently as possible.

When clients tell us they have made mistakes in their decision to finance working capital we can almost guess what happened. They have mis-matched funds, meaning that cash flow and working capital from operations may in fact have been used to pay for fixed assets.

It's easier said than done, but the ' normal ' way to finance your business is short term lines of credit, typically through your bank. But credit and financing is difficult for small and medium sized firms that can’t meet all the criteria required by a chartered bank.

One solid option is injecting what we can call permanent working capital into the business. In effect it’s a cash flow loan, payable in fixed monthly installments. This type of transaction is typically available through Canada's government owned business bank, and you have to have a solid proof of historical cash flow to show you can repay the term loan, which is typically unsecured!

We spoke of matching funds, properly. That’s important. So if you are considering asset purchases utilize lease financing, minimizing your cash outflow of course, and allowing your company to structure a long term lease payment that matches the useful life of the asset you're purchasing.

Smaller and medium sized business, mostly smaller, tend to mix the personal finances of the owner with the business. That has positive and negative effects. In the last few years the merchant cash advance loan has become popular for many smaller businesses, retail in particular. It allows you to monetize, or ' cash flow ' today, future sales.

When address the need to finance working capital it’s recommended you have a handle on the assessment tools. It's not as complicated as you might think. Calculate your days sales outstanding, as well as a similar calculation for inventory. Those two calcs will show the total time it takes for a dollar to flow through your company. You have to bridge that gap now with cash flow financing.

General rules of thumb indicated that you need to have 2 dollars of receivables and inventory for one dollar of payables. That’s never been our favorite calculation because it simply reflects the build up of those current assets. We're more concerned about turnover,

So how do Canadian firms assess working capital solutions? In many cases it all comes down to two issues, the size of your cash flow need, and your firms overall credit quality. Simply speaking larger firms with solid financials can access bank credit.

Smaller and medium size firms have numerous options, some are short term in nature, and many times they come with a higher cost, but, and its a big but , it allows you generate all the cash flow you need to grow your business .

So what are those solutions? They are receivable financing, inventory financing, purchase order financing, tax credit financing, and asset based lending. Some, or a combination of these solutions will allow you to finance working capital properly and access credit you need to grow and profit.

Speak to a trusted, credible and experienced Canadian business financing advisor on how these solutions work, what they cost, and how they can, either singularly, or grouped, solved the Canadian working capital and credit enigma.



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 .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/finance_working_capital_company_credit_financing.html

Don’t Strike Out With Canadian Leasing Finance Companies – Hit Home Runs Via A Financing Equipment Company

Sports analogies don't always work, but this time we think it’s quite appropriate. Striking out, i.e. losing when you are considering financing equpment strategies in Canadian lease finance should not be part of your preferred ' home run ' strategy when you work with a lease company.

The exhilarating feeling of the ' home run ' in equipment finance comes from completing a transaction for a new or used asset, knowing that you have achieved solid success , i.e. your ' home run ' based on a final great approval, rate, lease term, and flexible structure .

Strike outs rather, come from that other feeling, the sinking one, realizing that you have been pushed into a transaction that doesn’t make sense. Many lease finance firms in Canada are only happy to put you into a final structure that fits their approval and security criteria, not necessarily yours.

So, keeping our sports analogy in place, how do you create a winning streak for financing equipment success in Canada? We believe its simpler than you think, if, and its a big if sometimes, you are ‘armed and dangerous’ relative to knowing your lease options , and what leasing finance benefits accrue most favorably to your company .

First it’s all a questions of ' fit '. In Canada there are three general categories of a financing equpment company. They are small, medium and large... ticket that is. (Almost feels like buying a suit, doesn’t it?!) So when you have a new or used asset to finance remember that you should be working with a firm that specializes in your size and asset type. Why spin wheels approaching , talking to , and asking for a lease quote for a new computer system for your office when the lessor is only looking at transactions several million dollars and over - bottom line its a waste of your time, and theirs .

Step 2 simply understands lease products. In Canada, we keep it relatively simple... (The U.S. has tax leases, trac leases, leverages leases, synthetic leases, etc!) But us Canadians can generally get by with capital or operating leases. A simple way to remember both is simply lease to own, ( capital ) or lease to use, (operating ). Knowing the type of lease you want can save you a lot of time, plus potentially thousands in interest rate and total payments made savings.

The 2 other areas of Canadian leasing finance that you should be knowledgeable about are lease options, and approval criteria. When you investigate leasing finance is aware of critical issues such as down payments, security deposits, the total all in rate, hidden registration fees, etc. Bottom line; spend some time on certain areas of the fine print when that makes sense.

We done necessarily agree, but most clients think that rate and monthly payment is the ultimate home run criteria in Canadian leasing company negotiations . We haven’t told them that in Canada, unbeknownst to most customers, you actually get to pick your own rate.

How? Simply because rates are provided based on credit criteria, and knowing your firms credit and how to present it generally allows you to gain the best rate possible without much negotiation. The good news is that Canadian firms with great credit can get lease financing, and firms with less than great credit, i.e. financial challenges can also achieve lease approval through a more structured approach - i.e. a shorter term, or perhaps a down payment.

Well that’s it. Hopefully you feel confident now as you step up to the bat that you can achieve a financing equpment home run. Its simple , just remember our basic tips around lease types, how rates are determined, and types of leases and how the industry is segmented in Canada .

P.S. See you at the World Series!



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 .Info re: Canadian business financing & contact details :

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