Do You Know How To Finance Your Business - Finance Companies & Banks & Goverment Funding Options

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How To Finance A Business: Solutions You Might Not Have Considered !

Keeping your company rolling - It's all about how to finance your business
in both good and challenging times . Every business owner and financial mgr recognizes there will always be ' cash crunch ' time at sometime down the road .

Prudent business people know that they should always be exploring financing options , especially when they are considering major growth opportunities , expanding into new markets or products, etc.

A key part of the business funding challenge is your firms finance itself on a daily basis - that's all about meeting supplier obligations , managing receivables and ensuring you have the optimal funding in place. A business bank loan will often be the most perfect solution , if your firm qualifies !.. for day to day business lines of credit . Bank interest rates are low and revolving credit lines help in finance inventory and receivables .

In some cases it it a question of working capital to finance that build up in a/r and inventories. Your firm might consider a short term working capital loan - these are extremely popular these days. Alternatively a long term ( typically a 3-5 year ) term loan injects that permanent working capital you have been looking for, into the business.

Large orders and contracts - The good news is your firm has or can secure large new orders or contracts previously not available. The challenge? How do you finance these when a typical business bank loan is not the solution ?

One solution is purchase order or supply chain financing . That type of solution allows you to buy and pay for the resources or staff that you need and helps cover the major cash gap that occurs considering the time you get the order to the time your firm gets paid .

Expanding sales and profits is the goal of the majority of business owners and finance mgrs in Canada. In a number of cases that means ' capital intensive ' and cash must be conserved while at the same time acquiring the assets you need to grow revenues. Equipment financing is probably the most popular method of financing assets , and in fact experts tell us that 80 per cent of all firms at one time or another utilize lease financing options .

Banks also provide equipment loans, typically these are ' term loans'. and often don't provide the flexibility to upgrade or swap out the asset. We urge clients to perform the ' lease vs buy' analysis when considering acquiring new assets

Government funding ? Absolutely ! Thousands, yes thousands of firms each year take advantage of the Canadian government small business loan program, wherein the government guarantees a large portion of your financing to the bank providing the loan. This program has great rates, terms, and yes, even flexibility . By the way, in many cases it's the ultimate start up financing vehicle, and even covers buying an existing business in most cases.


Make Business Finance Work For You

Our bottom line ? Your firm will always at sometime down the road require extra financing. If you need help to explore the options offered by commercial finance companies , or government loans , seek out and speak to a trusted , credible and experienced Canadian Business Financing advisor
with a track record of success who can assist you in ow to finance your business.








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 area 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 Loans Canada : Which Financing Sources And Finance Companies Work Best For Your Company?

Which Of These 5 Types Of Business Loans Work For Your Company ?

Spoiler Alert : There’s Even More Alternatives Than These !

OVERVIEW – Information on business loans in Canada . Numerous types of financing sources from banks and finance companies are available . What works best for your business?

Business loans in Canada , unfortunately, don't come in a one size fits all package. So which financing sources make sense for your company, whether it’s a Chartered bank solution of those offered by mainstream or specialized niche finance companies? Let's dig in.

Along with ' variety ' a business loan also comes with different terms, conditions and structures. We're not trying to complicate the situation but the business owner/mgr quickly sees that the challenge in this form of Canadian business financing revolves clearly around knowing what your needs and are matching those needs to your firms situation.

What distinguishes ' loans ' from other forms of financing (equity, or current asset monetization) is fixed terms and typically, but not always, fixed interest rates. Current low rates of course make the financing cost scenario very attractive.

Business owners are also encouraged to understand the difference between ' secured' and ' unsecured ' loans. Safe to say an ' unsecured' loan is difficult to obtain unless fairly strict financial criteria are met.

When it comes to SME COMMERCIAL FINANCE needs one of the best examples of an ' unsecured' loan is the Govt Guaranteed Small Business Loan. It provides financing up to 1,000,000.00 for two asset categories that meet most needs for start up and growing businesses. Those asset categories are ' equipment ' and ' leasehold improvements'.

Confusion reigns supreme when business owners often construe a ' line of credit' as a loan, when in fact you're just cash flowing your current assets - accounts receivable and inventory. These loans fluctuate and while there is a rate attached to the borrowing costs fluctuates as you draw down or pay down the revolving facility.

Non bank business credit lines are available via what’s known as an Asset Based Line Of Credit. Known as ' ABL's they actually combined your fixed assets with your receivables and inventory, all into one fluctuating facility.

Various subsets of asset based financing are also not really ' loans' .They include Accounts receivable financing/factoring and inventory finance facilities.

Two traditional forms of loans are mortgages and equipment loans. These are typically larger facilities to secure buildings and land or shop floor assets or technology. A lease is not a loan, but it also has a fixed term and rate. Most clients we meet are happy just to get approved for a lease or a loan, and often don't understand some of the accounting distinctions between the two!

The providers of ' loans in Canada are banks, commercial finance companies, insurance companies, and, as we noted, the government.

Owners and mgrs can quickly see that any number of combinations of business loans from the right financing sources can meet their operating and growth needs. In most cases it's a simple fact of knowing what amount of financing you need, being able to demonstrate your firms financial condition, and ensuring you understand which finance companies or bank can fit your needs. Not feeling like you can go it alone? 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 financing needs.


Stan Prokop
7 Park Avenue Financial :

http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS LOAN 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 Financing Loans From Finance Companies In Canada : Heres Your New Rules

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

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

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


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

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

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

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

or lack thereof.

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

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

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

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

A/R Financing

Inventory Finance

SR&ED Tax Credit Monetization

Purchase Order Finance

Equipment Financing

Asset based business credit lines


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

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

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




Stan Prokop -

7 Park Avenue Financial :

Finance Companies And The Bank : Your Pre Flight Plan For Canadian Business Financing Has Changed

We’re Not In Kansas Anymore Dorothy .. Canadian Business Financing Has Changed


OVERVIEW – Information on changes in Canadian business financing . The solutions and roles of finance companies and banks have changed dramatically





Canadian business financing has changed. As we learned in the classic Wizard of OZ MOVIE what you expect in one world might not necessarily be the case. Sorry about that Dorothy!

Simple as that. So whether it’s ' the banks ‘, or commercial finance companies in Canada you need a 'flight plan ' of sorts, more than ever, for the finance challenges your company faces. Let's dig in.

Most business owners and financial managers recognize that the access to the financing they need is vey much dependent on the current state of the credit markets, economy, etc. As an owner/manager of a business you keep hearing about all the ' capital ' that is out there, it just doesn't seem to be anywhere close to you!

When accessing credit through banks or finance companies in Canada it’s all about terms, rate and structure that suit your specific business. That then needs to be broken down into the right delivery - from either a Canadian chartered bank, a commercial finance company or asset based lender, and in a small amount of cases equity financing from VC’s, PEG's ( private equity groups ) etc.

By the way, probably only one of every 500 or so firms is actually a candidate for equity type financing in Canada, so valuable time is often wasted pursuing this route. However, if you're one of those 500 Congrats!

So how do you know which funding alternative makes the best sense for your firm. It's important to realize what ' stage ' your company is in, which ranges from pre revenue start ups to mature growing companies , and in the middle of all the SME COMMERCIAL area - the latter probably being the largest sector.

Use of funds is important in consideration of financing. That might be all the way from acquiring another business, to acquiring new assets, monetizing cash flow, etc.

There is a very basic ' flight plan ' you probably should follow in seeking financing. That includes thing such as being prepared for the right timelines, as it ALWAYS takes longer than you think, so starting early is important. Knowing your competition is financed is also helpful as certain industries qualify much better for certain types of financing.

As we are focusing on non equity type options, it's important to know what debt financing makes sense, how it works, and what asset monetization strategies cost.

So what in fact are those potential sources of financing from banks or commercial finance firms? They include:

Bank lines of credit / term loans

A/R Financing

Inventory Finance

Purchase order/supply chain financing

Asset based loans/bridge loans

Equipment Financing/ Sale leaseback strategies

Monetizing SR&ED tax credits

Government Small business loans

Cash flow/mezzanine loans

Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in matching and sourcing the right amount of financing for your company.






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 FINANCING SOLUTIONS FOR DEBT AND ASSET MONETIZATION







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

Financing Cash Flow Needs : Raise Your Game In Solutions Via Finance Companies

Eliminate That Suspended Animation Feeling When It Comes To Canadian Business Financing

OVERVIEW – Information on solutions from finance companies and banks on financing cash flow in Canada . Solutions vary by industry and your firm’s overall financial position



Financing cash flow for Canadian businesses often has the business owner/financial manager having that ' suspended animation' feeling; not knowing where or how they can address their financing needs. So how does one ' raise the game ' in this critical aspect of business and what solutions do banks and finance companies provide to solve the challenge. Let's dig in.

If the owner/ manager aren’t managing his or her way through a cash flow crisis these days they probably are working on how to grow their company and out do the competition. Challenges often arise from several areas; they might include:

Taking on new larger contracts

Managing payables/vendors

Sourcing new equipment need to modernize or run the business

While your accountants can help pin point the problem they more often than not can't provide the solutions

Where does that badly needed cash flow in your business go then? Sometimes it relates to your firms ability to generate a profit. Remember also that paying your suppliers promptly actually is a negative cash flow, although it's a fine line in managing key vendor relationships.

When bank financing is not available in the SME COMMERCIAL FINANCE area the challenge is to look at solutions provided by a commercial finance company. That might be a specialized or alternative solution, or a traditional one - i.e. ' banking '.

A short summary of available solutions includes:


Receivable Financing/Confidential A/R Finance
Inventory Finance
Revolving bank credit facilities
Non bank asset based lines of credit
Equipment financing
Sale leaseback utilization re existing owned assets
Tax Credit Monetization
PO/SUPPLY CHAIN/CONTRACT Financing
Working Capital Term loans


The ability to prepare a simple cash flow forecast will often help highlight the type of solution you need - your business financials and over all health will further qualify what financing you are eligible for - either traditional or alternative.

Remember also that simply managing assets better - i.e. faster receivables collections, better inventory turns, etc will allow you to better qualify for external financing, as well as minimize the amount of debt you have to take on. Remember also that a commercial finance company can also provide solutions that monetize existing assets, so you aren't necessarily burdened with extra debt.

Raising your game in Canadian business financing can be achieved by monetizing assets and taking on loans / debt that make sense for your firm’s future path. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in eliminating that constant feeling of ' suspended animation' via an action plan for financing cash flow.



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 CASH FLOW FINANCING EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

Stan Prokop

Business Cash Flow Is A Cause For Alarm ? Here’s One Solution In Addition To Bank And Finance Companies Alternatives

Separating The Wheat From The Chaff In Cash Flow Financing alternatives

Information on 2 kinds of business cash flow solutions. Finance companies and banks , and your own management can accelerate working capital inflows






BUSINESS CASH FLOW or the lack thereof can provide some hard lessons for the Canadian business owner / financial manager. How does the owner/manager separate the ' wheat from the chaff ' when it comes to solutions offered by finance companies and banks. What other solution can be addressed, outside of seeking external financing? Let's dig in.

You won't find too many business people disagreeing with the fact that cash flow and access to working capital is important. It's easy to see the cash going out, it's more challenging to manage the cash coming in.

When it comes to financing solutions to address our subject manner they are more numerous than you might think. Canadian commercial finance companies offer a plethora of solutions outside of bank finance. They include:

Receivable financing

Inventory Financing

PO/Supply chain financing

SR&ED Tax credit bridge loans

Asset based lines of credit

Mezzanine financing

Royalty financing


Generally non bank solutions cost more, but it can also be quite easily said they are more attainable than Canadian commercial bank approval for your financing needs. Borrowers in the SME (small to medium enterprise) commercial finance sector must have a least a couple years of business success when it comes to accessing bank credit.

If your company can demonstrate it has real financial statements, profits, some equity in the business, and reasonable personal credit histories of the owners ... well... from the banks perspective... You're in. Bank credit lines are great solutions for the proverbial ' overdraft '.

So we have tabled two external paths in financing cash flow. But wait! There's More! as our favourite K-TEL announcer used to say. In reality if you are growing at a modest rate your access to cash flow can easily come from within.

From within? Simply speaking it’s about focusing on better asset turnover in the areas of inventory and accounts receivable. Putting a simple system in place to verify and manage your day’s sales outstanding in A/R, or your inventory turnover will allow you to bring cash in more quickly.

We referenced your business growing at a ' modest rate'. In reality if you are in high growth mode, or have large , perhaps seasonal , bulges in your business you will most likely be forced to address external financing , no matter how well you manger current assets. That’s simply because sales growth is hungry, it eats cash as you build up A/R an inventory and wait for clients to pay.

Often the best solution for a company that can’t access bank credit but has solid growth possibilities is in fact asset based lending. This solution, typically via commercial finance companies, margins inventory and A/R on an ongoing basis, giving you all the business cash flow you need.

If you business is asset intensive it's important also to consider asset financing solutions that won't deplete working capital. That typically involves looking at a lease financing or sale leaseback solution.

If you're looking to separate wheat from chaff in business cash flow alternatives seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your firms growth 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 - 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 Cash Flow Financing Expertise






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?


CONTACT:


7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653

Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

Stan Prokop

Can Finance Companies Help You Multitask When It Comes To Cash Flow And Accounts Receivable Turnover?

Solid Takeaway’s On A/R Financing In Canada

OVERVIEW – Information on accounts receivable turnover and how solutions from non bank finance companies allow the business owner to accelerate the business operating cycle




Non bank finance companies in Canada provide various business financing solutions to the Canadian business owner/manger. One of those is the financing of accounts receivable turnover. However, negotiating the landscape of A/R financing in Canada tends to be confusing - this is due to a proliferation of players, somewhat confusing terminology, and solutions that do different things in different ways.

Our preference for our clients is to allow them to have a financing solution in place that allows them to multitask - and that multitask is simply all about doing a few things at once that are very important to your business - grow sales, turnover assets, and generate profits. Now that's multi-tasking! Let's dig in.

Part of the challenge in ensuring you have the right working capital and cash flow financing in place is to differentiate this method of financing your assets from other methods of financing your company. A/R financing is not related to the concept of a term loan - it's simply a method of financing your sales as you wait for clients to pay you. And these days those clients seem to take forever, as everyone seems to be in the same boat... slowing down payables.

Generally speaking A/R financing suits every business that sells on commercial credit terms. And by the way, your a/r can consist of services if your company does not sell a product per se. Simply speaking, as soon as you have earned and provided those services and have properly billed them they can be financed.

The concept of A/R financing in Canada revolves around ' selling' your sales to your finance partner, as opposed to providing them for collateral to a Canadian chartered bank. So while the net effect is the same (cash flow!) each type of financing is ' papered' differently when it comes to the legalese and documentation surrounding this method of business finance.

While a bank charges you ' interest ‘on borrowing against your a/r line commercial finance companies purchase the asset (the receivable) at a discount to its 100% value. Generally speaking in Canada the cost is 2% per month. The nuances around how your transaction is priced relate to the general health of your business, the size of your monthly sales, and the overall general credit quality of your customer base.

Typically any sale in North America can be financed, and if your firm has foreign receivables they can be financed also, it's just that they will require some credit insurance to be in place.

So is this all something new in the Canadian business financing landscape. Not really... as companies in North American, and starting in Europe have done this for hundreds, yes hundreds of years .

What then are the key benefits in this method of cash flow finance? They include same day immediate access to cash as you generate sales, the ability to attract larger clients and contracts because you now have ' financing ' in place, as well as having the general comfort level that you can meet operational requirements such as payroll and term loan and lease obligations.

What the Canadian business owner /manager often misses in assessing this method of financing is the overall opportunity cost of funding their business. Some people maintain that it's a method of financing your business by simply lowering your prices, as that cost is in essence the cost of your financing. Don't forget also though that if you don't have A/R financing in place, from either a bank or finance companies that you are in effect being the bank for your clients. And if you review your business plan carefully and your overall goals and objectives we're quite sure you did not intend to be the bank for your clients!

Don’t forget also that the new found cash flow in A/R finance solutions allows you to take discounts with suppliers, negotiate better pricing from vendors, and avoid late charges on your payments to key vendors and suppliers.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in accounts receivable turnover financing.

P.S. Don't forget to ask about CONFIDENTIAL RECEIVABLE FINANCING... allowing you to finance, bill and collect your own receivables without any third party interference


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 = Accounts Receivable Turnover Financing Expertise


Have A Question / Comment On Our Blog Or Canadian Business Financing Alternatives ?


CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

Stan Prokop

5 Methods Of Canadian Business Financing In Canada . Which Finance Companies Are For You?

The Money Is Out There – Here’s How ! And Where!


Information on access to Canadian business financing . Which finance companies and loans and services best suit your firm today?





Canadian business financing... It works when you have business owners and financial managers in Canada that know how to be successful with the right type of finance for their company - as well as a lender or institution who wants to share that success with yourself .

For the business owner the reward is growth and profit, for the lender its repayment with a reasonable rate of interest commensurate with credit risk.

When we speak to clients about financing choices its all about ensuring you understand the alternatives. Let's examine 5 of those.

One of the newer methods, relatively speaking, that Canadian firms use to finance growth is the selling of their receivables as they generate sales. This form of financing goes under a number of names: receivable financing, invoice discounting, factoring, etc. By employing this method of finance they immediately generate typically 90% of any sale into direct cash, with the other ten per cent, less financing costs, coming to them when their client pays.

Although there is a strong perception in the Canadian marketplace that this type of financing is expensive. It becomes less expensive when business owners utilize that cash to sell more, take supplier discounts, and purchase more effectively with new found cash. In truth this method of financing, quite frankly, works best when you are partnering with the right finance firm and have the right type of facility in place.

An even lesser known method of Canadian business financing is what is known as purchase order or supply chain financing. This works best when you have legitimate orders from bona fide clients and have a need to be able to pay your supplier significantly in advance of your own firm receiving final payment from your client.

PO and SUPPLY CHAIN finance can really float you through a busy season or time of year.

Smaller firms and retail organizations have a real challenge in financing their firms. This is because they traditionally don’t have the assets that are sought after by banks and other finance firms when it comes to working capital and cash flow financing. So the solution here becomes bridge loans that are typically collateralized by inventory and cash flows. Typically you would supply 3 months of recent bank statements to show inflows and outflows of your business.


80% of all North American businesses employ equipment financing in that it allows you to have up to date assets that won’t become obsolete during the time you need them for production, operations, etc.

Almost anything can be leased and financed, and all credit qualities are eligible based on the creative structuring offered by lessors in Canada.
As a business owner your choice becomes whether you enter into a capital lease or an operating lease, depending on the ultimate disposal of the asset at the end of the lease term.

That method of financing, i.e. lease finance brings us nicely into # 4 in our list of 5 methods of business finance. Here the concept is customer financing - i.e. offering a finance program for your clients when you have a product that can in fact be financed. Setting up a program with a qualified partner allows you to sell more, generate cash flow on the sale immediately, and be perceived by your client as a full service vendor that truly adds vale to their operations.

Finally, don't forget the government SBL loan, which is, bar none, the best available financing for new or established firms with fewer than 5 Million dollars of revenue. Great rates, terms and structures, and a solid solution for financing equipment and leaseholds.

Speak to a trusted, credible and experienced Canadian business financing advisor on putting together a package or financing request that properly positions your firm for financing success.

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/canadian_business_financing_finance_companies.html