Is This The Golden Age Of Business Capital In Canada? Financing And Funding Your Company Credit Needs Unlock The Secrets To Business Capital In Canada

Tweet

 

YOUR COMPANY IS LOOKING FOR  BUSINESS CAPITAL!

YOUR GUIDE TO CANADIAN BUSINESS FUNDING

You've arrived at the right address! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the  biggest issues facing business today

ARE YOU UNAWARE OR   DISSATISFIED WITH YOUR CURRENT  BUSINESS  FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

 

 

NAVIGATING THE BUSINESS CAPITAL LANDSCAPE IN CANADA

 

Business capital in Canada. Is this in fact the  ' GOLDEN AGE ' for Canadian companies seeking financial capital and business credit and funding?

 

 

WHAT IS  BUSINESS CAPITAL  

 

While most  business owners and entrepreneurs think of  ' money ' as being capital, and  cash that is in the business for generating a profit and return on investment, in general terms capital is actually the value  and financial assets of the business which might mean everything from hard assets to patents and intellectual property in the business

 

While your business can generate a return on capital from the ongoing operations of the business a company also has the choice of raising more equity as well as taking on debt to fund the business.

 

So capital can come from a number of sources:  owner investment, equity via angel investors, VC's, and private equity firms as well as traditional or alternative financing firms such as banks and alternative finance lenders - the new kid on the block in the Canadian business landscape.

 

Working capital and debt capital are often the most sought-after Canadian business financing solutions

 

We're not 100% sure ourselves; we read that rates are low and capital is abundant - while at the same time clients tell us it's never been as tough to satisfy lender criteria or access innovative capital solutions for their business needs -  especially for the small business owner as well as medium-sized corporations looking for information for funding needs.

 

The reality is that many business owners who aren't in the Financial Post top 1000 in Canada spend a lot of their time ' finding ' financing. The goal seems kind of easy - find enough financing for your business at a cost that makes sense and gives you the amount of risk that the Canadian business owner and financial manager are prepared to live with. At 7 Park Avenue Finanical we want to provide the help that business owners and their financial managers are looking for in their search for funds.

 

That ' risk ' of course comes with the fact that too much debt, and might we add the wrong kind of debt can cripple a firm.

 

5 WAYS TO FINANCE YOUR BUSINESS 

 STRATEGIES FOR SECURING BUSINESS CAPITAL

 

At the end of the day, we can maintain there are essentially 5 ways to finance your firm when it comes to business loans and your capital structure  - two of them, raising equity and issuing a bond or debenture are NOT the subject today.

 

What we're talking about is innovative ways of supplier financing, lease and asset financing for capital assets , and business lines of credit from banks or independent commercial finance companies.

 

 

DON'T FORGET SUPPLIER FINANCING! 

 

Many businesses don’t fully realize of focus on the fact that supplier credit is in fact a key driver of your firm’s cash flow. Just negotiating long terms with your key vendors allows you to generate positive cash flow - That’s a fine line though as you ultimately need the support of suppliers. The last thing you want is for them to turn the ' credit tap ' off.

 

EQUIPMENT LEASING FOR ACQUIRING NEW AND USED ASSETS

 

Yes, you can buy the fixed assets you need for your firm - but over 80% of companies in Canada in fact lease their assets. Whether its trucks, cars, computers, telecom equipment and heavy machinery the business owner has the option of leasing assets for anywhere from, typically, 2-5 years. That allows you to use up the ' useful life' of your equipment and match it to cash outflow vis a vis the payments.

 

Accounting has specific rules around the type of leasing arrangements that you enter into, primarily revolving around whether you are entering into a capital lease ' to own', or an operating lease ' to use '.

 

 

 

THE BUSINESS LINE OF CREDIT IS A KEY FUNDING TOOL FOR DAY-TO-DAY OPERATIONS  

 

Bank and commercial credit business capital in Canada supply businesses with revolving lines of business credit and funding. A credit line allows  your firm to draw down and pay back up, based on pre-set limits, the amount of funding you need for your business. The security of course is the assets of the business, allowing you to constantly replenish working capital

 

 MONITOR YOUR DEBT-TO-EQUITY RELATIONSHIP  

As a business owner, you have to choose the right amount of debt and equity. The finance guys call that your ' capital structure’. Is there a perfect mix or ratio for that?  The answer is... not really; it depends on the risk, flexibility, and amount of control you have in any particular financing.

 

 SOURCES OF BUSINESS FINANCING 

 

So, is it the Golden Age of business borrowing?  Our opinion is... not really. But you do have options and there are probably many innovative ways to finance your firm and achieve access to capital that you have not contemplated ; from government programs to commercial financing.

 

These include:

A/R Financing

Inventory Loans

Access to Canadian bank credit

Non bank asset based lines of credit

SR&ED Tax credit financing

Equipment / fixed asset financing

Cash flow loans

Royalty finance solutions

Government Of Canada Small Business Loan Program  - Guaranteed federal business loan -  Arguably the best financing program for a startup and franchise acquisition

 

THE STARTUP FINANCING CHALLENGE - STARTUP TO SCALE UP!

 

Financing a new business start-up in Canada is always a challenge - In connection with their own savings and investment into a business many entrepreneurs recruit friends and family type investments - as well as explore crowdfunding options.

 

The majority of start-ups in Canada, if not 99% or more do not qualify  or meet the criteria for business capital from  venture capital or angel investors

 

Many startups can benefit from local ' business incubators ' that are more often than not in the high-tech sector. These organizations don't provide financing per se, but they will often provide mentorship,  job creation, and sharing of facilities and hosting.

 

While ' grants ' are often sought after funds from the federal and provincial government in Canada this can be a time-consuming process, and often assistance from grant writers is required to source funds in areas such as r&d, productivity, etc. Talk to the 7 Park Avenue Financial team about grant financing strategies when grants require matching funding.

 

Business loans are available for the majority of small and medium-sized established businesses in Canada the startup has a large challenge in accessing financing. Good credit ratings and solid personal net worth will often attract some bank financing, but the best program by far, from a business loan perspective for startups is the Canada SBL loan - Recent changes to the program in 2022 increased the loan cap to over 1.1 Million dollars, and several different types of the financing were added to the program. The loan guarantee is provided by the federal government to the bank or credit union. A business plan should be provided with your financing request. SBL loans are one of the best financing solutions for small businesses in Canada, and the government loans out billions of dollars every year to thousands of firms.

 

 CONCLUSION - TAKING YOUR BUSINESS TO THE NEXT LEVEL 

 

Talk to the 7 Park Avenue Financial team - we know that the majority of businesses can access venture capital and Angel investments - Government funding and grants can consume management time - Let us show you how debt and cash flow financing solutions are available to your business today can work to take your business to new heights.

 

Speak to 7 Park Avenue Financial,  a trusted, credible and experienced Canadian business financing advisor for small business owners, who can assist you with your business capital and funding needs in Canada.

 

  

 

  

 FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION

 

 

 

What is the most effective form of business for raising capital?

 

Although a sole proprietorship or partnership can raise capital and borrow money the best form of business organization is the corporate legal entity. Equity capital can come from venture capital firms but venture capitalists or private investors will want a sizeable portion of the ownership of the business - as the goal and exit strategy of the VC is an initial public offering. Financial institutions prefer to deal with corporate entities as opposed to individuals when business lending is required. Economic growth is often easier to achieve by a company versus a private individual.

 

 

What is business capital in finance?

Capital in business financing is value creation and is often primarily identified only as cash and business assets. The financial statements of a business complete a full picture of balance sheet assets and profits.

 

What are some types of capital in business?

Different types of capital in business include debt financing, allowing companies to borrow from different sources such as banks, alternative lenders, and the government at interest rates commensurate with overall credit quality and type of financing.

Business owners have the choice of selling equity in the business via private financing or public equity offerings versus additional personal investment.

Working capital finance funds current assets such as accounts receivable and inventories and profit-generating assets can be financed on a long-term basis.

  

Business Financing Cash Flow On Auto Pilot ?

Tweet

What Is Cash Flow Financing?

Business cash flow financing for many firms in the SME sector involves the necessity to turn receivables into liquidity for the company, in effect we're talking about ' invoice cash ' , that is the sort of financing that clients here at 7 Park Avenue Financial are looking for - i.e. cash flow lending That term is synonymous with cash flow challenges that hit many firms all the time. How then does the use of an AR finance company assist in meeting that challenge?

Sooner, rather than later is the need for business owners who want cash flow to support their company requirements. In many cases certain industries demand a lot more cash for companies that participate in the sector. That might mean more focus on capital assets or even research into new products and services.

What happens though when you can't get the credit financing you need from traditional banks / business-oriented credit unions, etc? That's where an AR Finance company comes in.
Your ability to quickly and efficiently set up a receivable discounting facility allows you to immediately remove the problem of waiting 30, 60 or even 90 days for receipt of client funds for your goods and services.

To receive full funding for your receivables from a Canadian charted bank there is of course an extensive loan and business application, with a lot of emphasis spent on historical cash flow analysis, balance sheet analysis, income statement and operating ratios, etc! Invoice cash services eliminate 90-95% of that type of waiting and negotiation.

So why then does ' factoring ‘, the more technical name for invoice cash work and in fact showing more popularity every day when it comes to  ' cash lending ' solutions. The answer is simple, an immediate flow of funds based on your sales revenues. That becomes most of the solution to what the pros call your ' working capital cycle '. That cycle, simply speaking, is the amount of time it takes a dollar to journey through your company and makes it back onto the balance sheet as cash.

When you finance through an invoice cashing - also called invoice discounting facility, you are not borrowing funds on a long term basis. Your balance sheet does not accumulate debt; you are simply liquidating current assets in a more efficient manner.

Is there one type of facility in the area of ' invoice cash ' that works better than others? We're glad you asked! We constantly recommend Confidential Receivable Financing, it's the 'non-notification' part of this solution, allowing you to bill and collect your own accounts, bank your own funds, and choose how much financing you need on an ongoing basis. It's classic ' pay for what you use ' financing when you're working with the right partner.

What Is A Cash Flow Loan? What Are My Firm's Options Financing Cash Flow?

A/R Finance is not always the ' only ' way to fund cash flow needs. Other strategies might include:

Working capital short term loans

Sale-leaseback strategies

Inventory finance

Tax credit finance ( sr&ed refunds are financeable)

Mezzanine Financing - (Unsecured cash flow loans)


Long term solutions of course involve scenarios such as new equity.




To receive full funding for your receivables from a Canadian charted bank there is of course an extensive loan and business application, with a lot of emphasis spent on historical cash flow analysis, balance sheet analysis, income statement and operating ratios, etc! Invoice cash services eliminate 90-95% of that type of waiting and negotiation.


Long term financing activities of course might involve scenarios such as new equity by owners.


So let's recap: Your business requires additional cash flow. You either have facilities in place and they aren't working, or you are self-financing and need cash flow to pay suppliers, employees, etc. Seek out and speak to a trusted, credible and experienced Canadian business financing expert who can deliver on invoice cash for your firms need.



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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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 more than 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.
Before 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

Working Capital Finance Loan Advice – What Business Credit Is Available For Your Firm

Tweet

Working Capital and Cash Flow Mechanisms for Canadian Business

Information on working capital finance requirements and solutions for business credit for Canadian businesses . Your business doesn’t need a 'loan ' Do you really need a ' loan ' and are there are alternatives to monetize assets into cash flow . P.S. Yes there are!

Have you checked the patient recently for oxygen and blood status? We're talking of course about your business, i.e.
working capital finance which is a true key measure of business credit health. Does a working capital loan need seem like a necessity as your business grows? Let's examine the why and more importantly the ' how ' of cash flow financing in Canada.

It is not hard to determine why there is such a focus on working capital finance in Canadian business - its simply because your ability to both manage, and access cash flow alternatives become the ultimate measure of short term financial health . We say short term because your overall capital structure and debt / equity relationship are of course the other piece of the business finance puzzle. Today we're focusing on short term health!

You know you are in good shape from a business cash flow perspective when you are in a position to meet your short term obligations - typically those are payables and any loan payments becoming due on a monthly basis within the year. If your cash on hand, receivables and inventory turnover are unable to meet those obligations consistently ... well ... its clear you need a working capital solution.

The reality of course is that cash flow fluctuates, and there are times when you have what is known to bankers as a bulge requirement - it is those times you need that access to working capital we spoke of.

So how do you determine what type of business credit financing you need, and, as importantly, how much. Sophisticated larger firms use the capital budgeting process to determine asset needs and why type of investment is required. It’s essentially the mix in the financing of your company - i.e. owner equity, debt, and financing of current assets, which is our focus - ' working capital'!

The good news about working capital finance is that if it is done properly it doesn’t incur debt, or reduce your owner equity - it just increases cash flow and business credit access. To some extent the term ' loan ' in working capital actually reflects a line of credit scenario, not taking more debt on to your balance sheet.

It is possible though in Canada to get a working capital term loan, for larger and medium size companies this is known as sub debt. Payments are fixed and in general the loan is unsecured and based on your cash flow ability to repay, both historically and projected.

If that is not the solution for your firm, what is then? The other solutions are a true bank operating facility, if, and sometimes that’s a big if, you meet bank criteria for lending. Other real world and more probable solutions for working capital finance business credit are asset based lines of credit , working capital facilities of a non bank nature around your inventory and receivables, or simple receivable financing via an invoice discounting facility.

In summary, working capital cash flow financing is not necessarily a ' loan ' per se, but there are options available for business credit financing in Canada. As we have shown you need to determine when you need that capital and why it’s important to have stand by facilities available. Speak to a trusted, credible and experienced Canadian business financing advisor on sourcing your proper working capital and cash flow 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


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 Financing In Canada: You Can Trust These Asset Finance Loan and Credit Solutions

Financing The Black Hole Of Business Growth & Capital Needs

OVERVIEW – Information on business financing in Canada. Asset finance strategies and the right type of loan are in constant demand for companies seeking to access credit & capital

Business financing challenges in Canada sometimes may have business owners/financial mgrs feeling like they have fallen down the ' black hole ' with that ' no way out ' feeling accompanying that.

Whether it be asset finance, a business loan, or revolving credit facility the ability to find a solution you can trust for the immediate/intermediate and long term is what good corporate finance is all about. Let's dig in.

That ' black hole' we're talking about often has to do with the stage of growth and success your company is in. No secret that start up, all the way up to SME (small to medium enterprise) firms probably face more challenges.

Their ability to add people, assets, and additional cash flow often comes at a time when traditional bank financing is unavailable, or at least unavailable in the amount they want. For those firms that are ' bankable ' it's all about ensuring that you understand the facilities provided and the ramifications and requirements of Canadian chartered bank borrowing.

Loan applications to banks, whether for operating or term facilities should be accompanied by a business plan, your financials, and cash flow forecasts. For firms that are unable to produce a proper plan or exec. summary help is available from people such as your accountant or external business financing advisor.

It's interesting that when we talk to clients about potential financing solutions their focus (understandably so because they are entrepreneurs) is typically on sales and profits. That coupled with the fact that ' profits are an opinion but cash is a fact ' often has owners/ mgrs missing the fact that cash is in fact the lifeblood of your business.

Getting back to those sales revenues though, it is in fact important to understand that the rate of growth of those sales will often dictate the amount and type of outside financing you will need. We say ' outside financing ' only because solid operating mgmt of inventories, receivables and payables can in fact add positive cash flow to your business... big time!

Many firms in mature industries that have slow or moderate growth in fact produce cash, not use it. The euphoria that comes with sales revenues success is often tempered with the fact that all your cash is tied up in working capital needs via inventory and A/R. Bottom line - it's tough to be a cash cow!

Some firms even consider selling their business too early if only for the reason that they can no longer deal with financing challenges. The ability to estimate how much cash or capital you need for people, plant and sales growth is key. Financial solutions for your business, both traditional, and alternative, include:

A/R Financing

Inventory Loans

SR&ED tax credit financing

Equipment leasing/ asset finance term loans

Sale Leasebacks

Commercial mortgages

Bank business credit lines

Non bank asset based full business lines of credit

PO / Contract Finance

Sales / royalty financing


If you feel you're either in, or capable of falling into the ' black hole' of business financing voids seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can deliver on solutions you can trust to grow.. and survive.



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 :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING






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

Direct Line = 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

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

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





Stan Prokop

Business Financing In Canada. Are You Addressing Banking And Credit Needs Incorrectly?

Business Finance Alternatives – Use As Directed


OVERVIEW – Information on business financing . How does management choose the right credit and banking alternatives that are available




Business financing choices in Canada. To many business owners and financial managers it must seem like they spend a tremendous... aka ' too much' time searching for the credit and banking alternatives they need to run and grow business.

What then are some of those decision points when your business is looking for capital of any type? Let's dig in.

Easy to say, but fundamentally it's all about finding the right financing in the amount that you need that carries an acceptable level of risk and cost. As we said, easier talked about than done.

More often than not it's about taking on the wrong kind, or too much debt and therefore risking business failure.

There are a number of ways in which business finances itself. They include:

Vendor / Supplier credit

Lease Finance

Bank Financing

Asset monetization

New equity

Many business owners often underestimate the power of supplier finance. The terms and credit needs you're able to negotiate contribute greatly to business cash flow. Supplier credit stems the outflows of cash. The bad news here is that everybody's in the same boat at the end of the day, as everyone, including your clients attempt to stretch payment terms.

Instead of paying with cash for equipment and technology assets business can choose to lease those assets on a lease or rental basis. Terms of anywhere from 2-7 years, sometimes longer, are available to leases assets such as rolling stock, computers, heavy equipment, production machinery, etc. Bottom line... any asset can be financed.

Canadian commercial banks offer significant financing choices when your firm seeks business credit. The most desirable bank facility is typically the ' revolver' allowing you to draw daily against the cash you need up to a set limit. The danger of breaking a bank arrangement often leads many businesses into a death spiral.

While in many cases it's desirable to get new equity into your company the challenge here is that it dilutes ownership at the expense of current owners.

Many owners and finance managers who focus on getting new equity don't fully realize that numerous ASSET MONETIZATION strategies exist as an alternative to equity in many cases.

They include-

Receivable financing
Inventory Financing
Tax Credit Financing
Royalty financing
SR&ED Tax credit monetization
Non bank asset based lines of credit
Sale leaseback
Bridge loans

4 or 5 key issues typically should come up in your overall financing decision. They include:

Flexibility of the financial offering
Risk
Cash flow and profit concerns
Control exerted by the lender based on the finance offer
Timing

At certain times in any company’s history it can't always get the financing it needs. Issues such as your overall leverage and your capital structure need to be addressed carefully. Growth, while always desired by almost all firms requires proper assessment of your financing needs.


Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with business credit and banking decisions that make sense today and tomorrow.



Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


7 Park Avenue Financial = Canadian Business Financing And Credit Banking Expertise


7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com

























Stan Prokop

Canadian Business Credit And Finance Solutions And Alternatives

Business Financing Challenges Giving Your Sleep Deprivation?







OVERVIEW – Information on canadian business finance alternatives . Credit solutions come in both traditional and alternative vehicles





Business finance in Canada. We recently (yesterday) read that 73% of all businesses in the U.S. were generally ' optimistic ‘about their business and the economy. These types of articles often mirror the Canadian situation. When it comes to us though it seems we're more often than not meeting the other 27% , who are somewhat less optimistic and , in the case of our article, find themselves in ' stall '

mode when it comes to access to traditional lending solutions.


The irony though is that the demand for financing seems there all the time when it comes to businesses in the SME sector, and alternatives to any sort of traditional lending are being more and more welcomed by Canadian business. As we have often said to clients ' alternative is the new traditional'.

In that same article it indicated 36% of all businesses applying for some for of financing in fact were declined by the banking system. The harsh reality in Canada is that if you are unable to meet fairly straight forward requirements of our banks (profits, clean balance sheets, outside collateral, etc) you are often not in a position to get any or all of the financing you need to grow revenues.

And talk about being negative, but 2/3 of business owners who didn’t bother to apply for financing behaved that way simply because they were sure they were going to get declined!

The majority of businesses that try to access debt or working capital do so for the right reason, they wish to grow their business, expand facilities or upgrade assets either technological in nature or in the shop/plant. As they are successful in doing that they traditionally then have more working capital and cash flow needs.

So if you the Canadian business owner of financial manager are looking to grow sales and access forms of capital what then are the options?

In Canada they include:

Receivable financing

Equipment financing / sale leasebacks

Working capital and cash flow loans - Secured and Unsecured

Non bank asset based lines of credit

SR&ED tax credit financing

Securitization

Purchase order/ Contract financing


Being successful in any aspect of business finance includes the following -

Knowing the type and amount of financing you require

Being able to predict and assess your real cash flow

Understanding the benefits, risks, and implications of any type of access to capital that you're considering

There is no one specific ' how to ' when it comes to the various complexities of growing your business when it comes to choosing the right financial solution at the right time. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in navigating the frothy seas of cash flow, debt, and working capital finance in Canada.



Stan Prokop - founder of 7 Park Avenue Financial


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :




7 PARK AVENUE FINANCIAL = BUSINESS FINANCE ALTERNATIVES





























Stan Prokop

How To Increase The Odds Of Successful Business Financing In Canada. Funding Your Company With Credit And Loan Solutions

Solving Business Credit Challenges In Canada

Information on business financing in Canada. Funding solutions for loan and asset monetization via commercial credit .


We're sticking our necks out a bit by saying that in general gambling is not a good thing but when it comes to business financing there are a lot of ways the business owner / financial manager can increase the odds

of funding their business with proper business credit and loan solutions.

It's a question of maximizing relationships and knowing at what point in time you need to seek debt or equity options. Most business owners would agree that finding the right solution is hard enough then comes the challenge of ensuring in a step by step basis that you can successfully complete that financing. In Canada some forms of business funding can be completed in hours ( example - leases for assets under 50k) while at the other end of the spectrum larger more complex solutions can take days, weeks, and unfortunately even months . Being unprepared for such timelines as is needed often leads to serious problems.

Knowing what those sources of financing are in Canada is half the battle - there typically is more than you think, and when you are focused on the right solution you have probably already increased your odds.

If we had to summarize in a fairly concise form the major sources of business financing, from a debt and asset monetization point of view (not equity) they would be as follows:

Receivable finance
Inventory Financing
Equipment Financing
Asset based lending
Traditional bank lines
Term Loans
Unsecured cash flow loans / securitization
Supply chain / Purchase order funding
Tax Credit Monetization

How then do you decide what fits when? We won’t weigh into the debate f whether there is too little or too much capital around these days, but we can guarantee the business owner/manager there somewhere out there is a solution that works for them. The business owner often focuses on Canadian chartered banks for many of the solutions we have noted above. We've done that for hundreds of years, so why change things, right?

The reality though is that many non bank commercial entities - i.e. leasing companies, non bank asset based lenders, niche players in PO finance and Tax Credits etc provide billions of dollars of financing and funding solutions for business everyday . How to get those solutions to trickle down into exactly what your business needs is the challenge.

If you feel that your total knowledge of business funding solutions is limited and have a real desire to expand the range of solutions available for your challenges seek out and speak to a trusted , credible and experienced Canadian business financing advisor who can assist you with your commercial credit and loan needs. Doing that increases ... the odds!

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS FINANCING EXPERTISE





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_financing_funding_credit_loan.html

Canadian Business Financing Options . Don’t Make These Credit Finance Mistakes

Information on Canadian business financing options . It’s all about timing and the right finance and credit choices.


Here’s How To Not Lose Control On Business Finance Options And Solutions






Canadian business financing options. Here's a question for business owners and financial managers. Do you really think you have made the right business credit and finance choices for your firm?

When we talk to clients it's often clear they are not sure they have the right finance mix for both survival and growth of their business.

Contrary to what many businesses think they actually do have a lot more choices than they think. Often times the owner/manager is focused solely on a final approval for ' any ' type of financing that seems to fix that days problem.

What the owner/manager doesn't realize is that as your business grows and matures different financing options are both required, and available. That of course covers us all the way from start up to mature!

So what are some of those mistakes that are being made... and more importantly how can you avoid them? Let’s cover off some basics.

The first point is that at certain stages of your business growth it’s all about ' collateral ' when it comes to business lending. Our point here is that different forms for finance require different forms of collateral, and in fact you quite often aren't required to put up as much collateral as you think.

One area is the personal guarantee, which in many forms of business financing is sometime very much required, and in other instances has little emphasis put on it. Quick example - in a start up environment there is going to be significant emphasizing of personal credit and net worth of the owners. However down the road your firm might be eligible for millions of dollars of asset based lending finance, and that type of financing does NOT place a large amount of emphasis on personal guarantees.

So it’s all about ensuring you don’t over pledge on collateral when you don’t need to, while at the same time recognizing that the type of financing you require is going to focus on the collateral aspect. But it might not be all of your collateral - its all about the negotiation process.

Receivable financing, which is a subset of asset, based lending in Canada and if you have solid A/R clients external collateral shouldn’t really be on the table for discussion.

A lot of business owners misunderstand how their personal finance and credit history can affect their ability to get business credit. At the same time larger firms with established collateral does not really overly focus on personal credit of owners. But we do caution the start up firm that banks and other commercial lenders view your personal credit as a signal as to how you might run your business finances. Enough said!

A third area of potential mistakes revolves around the fact that business owners are sometime poor at matching the financing they have access to with what they really need. Here it’s critical to understand how your cash flow and collateral fits into each different type of business financing, and what rates make sense for the type of financing you're trying to achieve. Quick example - for revenue generating assets solutions such as long term equipment leases make sense. Don't use cash or credit lines which typically give your working capital.

It's all about two simple choices - are you looking for debt in the form of long term loans, or are you wanting to monetize assets for cash flow and working capital . Once you understand your options its all about deciding which of these options works for you best:

Receivables finance
Bank operating lines
Equipment leasing
Working capital term loans
Non bank Asset based lending
Securitization


Our bottom line - it’s about access to knowledge and execution of the proper business finance strategy. Speak to a trusted, credible and experienced Canadian business financing advisor on your business finance needs.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS FINANCING EXPERTISE





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_financing_options_finance_credit.html

Is This The Golden Age Of Business Capital In Canada? Financing And Funding Your Company Credit Needs

Canadian Business Financing


Information on accessing business capital in Canada . What types of credit financing and funding does your firm need and where do you find solutions that work .




Business capital in Canada. Is this in fact the ' GOLDEN AGE ' for Canadian companies seeking business credit and funding. We're not 100% sure ourselves ; we read that rates are low and capital is abundant - while at the same time clients tell us it's never been as tough to satisfy lender criteria or access innovative capital solutions.

The reality is that many business owners who arent in the Financial Post top 1000 in Canada spend a lot of their time ' finding ' financing .The goal seems kind of easy - find enough financing for your business at a cost that makes sense and gives you the amount of risk that the Canadian business owner and financial manager are prepared to live with.

That ' risk ' of course comes with the fact that too much debt, and might we add the wrong kind of debt and cripple a firm.

At the end of the day we can maintain there are essentially 5 ways to finance your firm - two of them, raising equity and issuing a bond or debenture are NOT the subject today. What we're talking about is innovative ways of supplier financing, lease and asset financing, and business lines of credit from banks or independent commercial finance companies.

Many businesses don’t fully realize of focus on the fact that supplier credit is in fact a key driver of your firm’s cash flow. Just negotiating long terms with your key vendors allows you to generate positive cash flow - That’s a fine line though as you ultimately need the support of suppliers. The last thing you want is for them to turn the ' credit tap ' off.

Yes, you can buy the fixed assets you need for your firm - but over 80% of companies in Canada in fact lease their assets. Whether its trucks, cars, computers, telecom equipt and heavy machinery the business owner has the option of leasing assets for anywhere from, typically, 2-5 years. That allows you to use up the ' useful life' of your equipment and match it to cash outflow vis a vis the payments.

Accounting has specific rules around the type of leasing arrangements that you enter into, primarily revolving around whether you are entering into a capital lease ' to own', or an operating lease ' to use '.

Bank and commercial credit business capital in Canada supply businesses with revolving lines of business credit and funding. They allow your firm to draw down and pay back up, based on pre set limits, the amount of funding you need for your business. The security of course is the assets of the business.

As a business owner you have to choose the right amount of debt and equity. The finance guys call that your ' capital structure’. Is there a perfect mix or ratio for that? The answer is... not really; it depends on the risk, flexibility, and amount of control you have in any particular financing.

So, is it the Golden Age of business borrowing. Our opinion is... not really. But you do have options and there are probably many innovative ways to finance your firm you have not contemplated. These include receivable finance, inventory financing, and asset based lines of credit, securitization, lease financing, and tax credit monetization. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your business capital and funding needs in Canada.



7 PARK AVENUE FINANCIAL
Canadian Business Financing Expertise




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_capital_credit_funding_canada.html

Smarter & Faster Canadian Business Financing - Why Asset Based Lending Credit Facilities Work!

Simplify Business Credit With An ABL asset based line of credit !


Information on asset based lending as a business financing ‘simplifier’ for your operating credit needs in Canada .


We recently did an internet search for the term ' business financing ' in Canada. Last month in Canada 18,100 searches were performed for that term. WOW! We're quite sure that asset based lending could satisfy a lot of those Canadian business owners and financial mangers looking for business credit facilities that comes ' smarter and faster '. How? Let’s take a look.

Asset based lending is business to business lending , providing cash flow and revolving credit facilities for firms of all size in Canada . In truth the facilities work for firms requiring a monthly business credit line in excess of 250k, and ranging upward to tens of millions of dollars. We're quite sure that covers many of those 18,100 queries made on the internet.

Asset based lending uses your receivables and inventory by the way to provide you with a lending facility against those two assets. Because of the manner in which these types of credit lines are calculated you can be sure that 99.99% per of the time you are going to have access to more cash flow. And that's what business financing is about, right?

ABL ( asset based lending) business financing is business credit that can be used to grow your business, acquire another business, or simply speaking, fix a lot of the financial challenges that you are experiencing, almost immediately .

A key benefit often overlooked in the approval process is the fact that your firm is now in a position to negotiate better terms and prices for your products and services that you need. Why / because you have ' business buying power ' Vis a Vis your new found access to more business credit.

So when we look at those 18,100 firms that searched for business financing last month in Canada why didn’t these companies simply call you know who... Canada's chartered banks?

The quick answer to that is that they probably have tried to arrange additional or new financing with their chartered bank or credit union, but have exhausted all attempts at approval simply because they can’t meet more rigorous bank qualifications. And , unfortunately, in some cases they have even been asked to leave the bank or find themselves in the ' special loans' portfolio of the bank - we hasten to always commiserate with them that we know that’s not a ' special ' feeling you want to have in business.

In many cases the banks or other private equity type firms will suggest or request that the business owners put up additional personal equity into the business to justify new financing. Asset based lending does not require you to consider that option , simply because you already have the one thing that ABL financing needs to work smart and fast .. Assets!

So how does the ABL lender do it differently then. The short answer is that they place a lot of emphasis on understanding your business, getting regular bi weekly or monthly reports from yourselves on the basics , such as a/r, a/p, inventories, etc. This business financing expertise allows asset based lending to work in pretty well every industry in Canada - its real world working capital finance

If you want your company to be on the growth trail again , without taking on extra debt ( ABL business credit financing is cash flowing your assets, not adding debt to your balance sheet ) speak to a trusted, credible and experienced Canadian business financing advisor - let ' smarter and faster' work for your credit needs.. Today.



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/asset_based_lending_business_financing_loans.html

Heavyweight Canadian Invoice Finance Funding – C I D Credit Financing & Factoring For Your Firm

Thousands of small and medium sized businesses in Canada have gravitated to invoice finance funding as a solid alternative to their needs for working capital credit and financing. But what if, just if you had access to a facility that was a notch above those thousands of firms who use traditional factoring?

Conceptually factoring credit and financing is immediately attractive to Canadian business owners and financial managers. It provides an immediate line of credit based solely on a percentage of your receivables. Solid facilities will usually advance 90% of the total of your receivable based... most business owners are aware that banks advance against a 75% under 90 day formula .

Reporting and qualifying for your draws on receivables couldn’t be much easier - it involves simply submitting an aged A/R listing which allows for your drawdown and credit financing availability.

Since the majority , ( about 99% ) of companies and firms providing invoice finance funding are not banks clients are always asking us how facilities work, if its not a bank arrangement . It's actually quite simple. Your funds and draws against your receivables are deposited by your funding and factoring firm into your regular bank account. Payments received by your firm, from your clients, are put into a separate account in the name of your finance partner. These funds, when received from your clients, reduce the amount you have drawn/borrowed on a daily basis. The bottom line, it’s your revolving business line of credit.

Now, let's get into C I D. That's the term we use to demonstrate how you can be a winner in one of the key issues around factoring and receivables credit financing in Canada. This is the practice surrounding the key issue in standard (dare we say ' old school') invoice finance funding that came to Canada with a wave of U.S. and U.K. firms that dominate the industry.

If your competitors or peers in your industry are using this traditional method here’s what happens... your end user cusotmer is notified that you have entered in a factoring arrangment - this allows the finance firm to somehow feel safer they will get paid we guess, which is understandable .

But our choice or recommended solution for firms such as yours considering this type of financing is C I D - confidential invoice discounting. Your clients aren’t notified of your financing arrangement and there is no extra charge for this method of financing.

There are of course other key issues around understanding this type of financing - the advance rate on your receivables ( i.e. how much you get .. 80-90% is standard) , actual discount fee of financing charge on your entire facility, and our desire to ensure you understand how any miscellaneous items are charged .


So whets our bottom line then? Simply that there are some true ' heavyweight' alternatives that give you both advantage and comfort when you're considering invoice finance funding and credit financing for your receivables . Speak to a trusted, credible and experienced Canadian business financing advisor in this niche area of working capital finance.




7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS FINANCING !

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