Why Business Credit Doesn’t Have To Be An Epic Battle When It Comes To Loans And Sources Of Finance

Has Taking On Business Financing In Canada Changed?

OVERVIEW – Information on changing trends and solutions for business credit in Canada for the SME sector .Sources of Loans and finance alternatives have changed dramatically







Has business credit and access to financing solutions really changed that much in Canada. It has if you talk to many of the clients we meet, many of whom consider it an epic battle

to access the financing they need to run, and as importantly, grow their companies. Let's dig in.

While Canadian chartered banks are doing as great as they always have many firms in the SME ( small to medium enterprise ) sector feel the credit borrowing standards for loans and other bank solutions have in fact not eased to the extent the banks maintain they have since the 2008 global implosion.

When you think about it , it’s all about getting credit, and ‘ giving ‘ credit, as your ability to provide credit terms to clients that match their needs can make or break your business. And both of those issues, i.e. accessing credit, and supplying credit to your clients affect profits, sales, and cash flow. It’s a holy triumvirate of sorts.

So what does the business owner/financial do when they find themselves ' discouraged' by the lack of business financing solutions? One alternative is in fact just that... ‘Alternative financing ' via non bank solutions.

When it's all about ' Cash flow ' and access to credit lines, term loans and equipment financing numerous solutions are available. Some are what we could call ' direct replacements' for bank solutions; others are derivatives or extensions of what main street calls ' Traditional Financing '.

A recap of these solutions? We thought you would never ask!

They include:

Factoring

Confidential Receivable Financing

Working Capital Term Loans

Purchase Order Financing

Bridge Loans

P O Financing

Mezzanine Financing

Inventory Financing

Asset based non bank lines of credit

Securitization

Govt SBL loans

Tax Credit Monetization for SR&ED and Film refundable credits

The need for cash flow and working capital solutions is a dynamic one, we can easily call it a ' moving target ‘. Many of the alternative solutions referenced above relate to what the finance industry calls ' bulge' requirements that arise over time with the ebb and flow of business success and challenges. The bottom line - Simply that good cash flow and debt financing needs today might, and often aren't there tomorrow.

Qualifications of course vary for each alternative finance solution, but suffice to say that since they are all ' non bank' in nature they are infinitely more achievable when you have assets, sales, and prospects that can be substantiated.

Is business credit important to Canadian owners and financial managers? It is if you believe cash flow is king. Never ' bank' on the fact that your firm is un- financeable - 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 fighting that epic battle for loan and finance success in Canada.



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 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 Financing ? Looking To Close A Deal in Acquisition Or Merger Finance In The SME Sector .How An Advisor Get’s You There!

Going It Alone In Business Financing Or Acquisition Finance?


OVERVIEW – .Information on the value and benefit of a business financing advisor when completing a merger or acquisition finance transaction in the SME sector in Canada



Business financing in Canada. Going it alone has its benefits in business and life, but not necessarily so when you don't have the assistance and expertise to complete the financing you need, forge an acquisition, or complete a merger of sorts. That’s when a (good) advisor or intermediary is worth their weight in gold. And he who has the gold...!

The goal seems clear at the start - make an intelligent decision on purchasing or merger with a target, achieving via negotiation the right price, and then completing financing as needed.

Part of the challenge is that top experts agree that the SME sector in Canada that the huge ‘small to medium enterprise’ segment comprising of hundreds of thousands of firms is somewhat under serviced. Bigger and or public companies tend to have all the advisors and assistance they need , but the Canadian business owner or manager looking for reasonably priced but expert assistance is somewhat under served.

It's apparently a free country though, and you can go it alone but that seems mostly driven by a distrust of sorts of the type of expert advice that is out there, and at what cost.

So how can the right intermediary or advisor help? It boils down to several key areas that include helping you validate criteria, putting and analyzing the proper information together, putting forth a deal structure that works, and finalizing the finances you need . So by now it hopefully seems clear that an expert, that ' expertise ' is key to picking someone to work with you.

A good way to do that is ask for the Track Record

of transactions closed and completed, along with the type. That record of success will hopefully reflect size of deals completed, a reputation of professionalism and confidentiality, and the ability to interact successfully and professionally with everyone involved in your deal or financing.

Certain advisors or intermediaries might request ' exclusivity ' on the deal. That's certainly ok and happens a lot; we're personally in favor of people getting paid for tangible results - end of story.


The issue of fees /overall compensation/ work fee- retainer becomes a stumbling block for all parties on occasion, understandably so. What can you do to address these sorts of points? Numerous structures are available to ensure both everyone feels comfortable with who they are dealing with and how success will be measured. That might come in the form of a one time all inclusive Success fee, or combinations of an initial work fee/retainer, or in some cases a monthly retainer, the latter being our own least favorite.

The issues around overall price and value of the compensation of an advisor or intermediary really boils down into several categories.

They include:

Time spent on any transaction

The level of overall commitment to a deal or financing

The overall risk and reward of getting a deal or financing done, or not done!

The concept of ‘incentive ‘as well as the useful information, advice, etc that can be brought to any deal.

Ideally you want to be working with someone who either is or can be working on a first name basis with key players on your transaction. Reputation, specialization, and experience of course create a clear message that a successful deal or financing can be completed in the most efficient time possible.

Key areas of focus should be:

Financing contacts and reputation / negotiation skills/ unbiased advice that is not self serving/ setting reasonable expectations and no conflicts of interest. Also key is the ability to evaluate and present the financials on any deal in a positive manner.

As you can imagine a lot of time can be spent on ‘financing ‘that was never really meant to be. The ability to source and present financing that’s real and available is key. Along the way the intermediary or advisor should provide some strong level of financial/cash flow analysis, etc.

So at the end of the day consider that real value of an advisor or intermediary is the time and experience to get a deal done or on track – the right combo of compensation and success. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor to assist you with your financing, acquisition or merger 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 :


http://www.7parkavenuefinancial.com/business-financing-acquisition-merger-finance.html







Stan Prokop

AR Business Funding In Canada . Going Insane Trying To Understand Accounts Receivable Financing ?

Avoiding The Wrong Type Of A/R Financing ? Here’s How!


OVERVIEW – Information on accounts receivable ( ar ) business funding in Canada . Costs and benefits explained





Canadian business owners and financial managers hear a lot about the business funding known as accounts receivable A/R financing. But occasionally when they try and understand how this financing works, what it costs, and what the benefits are they sometimes feel like they are going a bit ... crazy !

Is there a way to uncomplicate what frankly is a pretty simple method of funding your business? We think there is... all you need is some basic clarity!

In fact one way to look at how this whole solution works is to sometimes put yourself into the position of the finance firm offering you this solution. At the essence of your transaction is the very simply concept of selling your sales, aka your ' a/r ' as you generate revenue to monetize that asset into immediate cash flow. Simple as that.

So where do business owners and managers feel themselves going a bit ' crazy ' in trying to understand the process and interpret how this affects, and benefits their firm.

In talking to clients here are the basic issues that typically need some good old fashioned clarity. They include:

Understanding who in fact is using AR Finance and how long it’s been around

What is the pricing and how does that affect profits?


What facility size makes the most sense?

Are there any risks involved?

Are some firms not able to use this financing?

Who should I deal with to ensure this type of funding makes sense to my firm?


Most of our clients probably don't want to be guinea pigs when it comes to finding out they are the first to try something - with all the risks that come with that. So the good news is that Accounts receivable finance has been around for ... hundreds of years! Starting in Europe and moving to North America. Many simply call the industry ' factoring ' and in Latin that word means ' business doer ‘. Many early settlers to North America actually had their trips and early businesses financed by these ' factors '. So... bottom line, don't feel like you're being ' leading edge ' when it comes to new methods of financing your business - everyones doing it!

You only need to understand 3 simple concepts when it comes to cost of AR finance - they are:

The discount percentage you are being offered
The amount that is advanced against your receivables (typically 90%)
The time it takes your client to pay


Once you understand those basics you're close to being an expert in receivable business funding.

The reality is that even one small sale could in fact be financed using this method, on a one time basis. But the closer reality is that typical facilities tend to be in the 100k per month range or higher. And the upper limit? Frankly Scarlett - there isn't one!

We can make the statement that no additional risks in using this method of financing exist - any risk you currently take in extending credit to clients and monitoring their payments essentially stays the same. Customers that don't in fact like ' risk ' can opt to insure receivables.

Any business that generates sales and sells on credit can in fact utilize factoring. The type of facility that we recommend most to clients is a confidential facility, which allows them to bill and collect their own sales - retaining full control and client contact.

Still going crazy trying to understand factoring in Canada. Hopefully not! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can clear the air. Quickly!

7 PARK AVENUE FINANCIAL
CANADIAN A/R 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_funding_accounts_receivable_ar_finance.html


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

Untangling Biz Financing Via ABL Capital . Overcome Business Line Of Credit Finance Hurdles !

It’s Changing Times In Business Finance . Here’s One Reason Why !



Information on accessing ABL capital in Canada . Let the asset based business line of credit help you untangle the biz finance maze



Is ABL capital a solid or maybe your ‘best choice’ when it comes to untangling the challenges your business faces when it comes to a comprehensive business line of credit? We think it's a solid finance solution and many industry experts agree. Here is why!

What is ABL? .... which of course stands for asset based lending. We ask that question only because it, and other terms such as ' cash flow ' mean different things to different people. In our terms it is a total solution business line of credit that allows you to borrow against your receivables, inventory, equipment, and even real estate, all within one revolving facility. It is as simple as that.

It's really a total solution that , in effect, is an ' evolution ' in the concept of a business line of credit. For the asset based lending company, your new partner in business banking its all about the balance sheet. That is of course compared to Canadian commercial business banking, where it’s all about the balance sheet... and your cash flow statement, and your income statement... and your personal guarantees. Those of course are what drive Canadian business banking rates to be so low and so great... if you can access them!

If we had to line up the different companies that access ABL capital its a diverse group - its larger firms that are very bankable but can access more capital at better rates , all the way down to start ups with a more limited financial history, at the same time having assets that can be financed .

We are pretty sure this doesnt exist in Canada, we certainly haven’t seen it yet, but in the U.S. there is a huge ABL capital market known as ' Second Lien '. Under these facilities the asset based lender sits on top of the senior bank facility, in 2nd position, and advances even more against the total assets already being financed by the bank. Surely that is one reason why our banking and lending practices are much more conservative in the world marketplace - we don't lend twice against the same asset!!

When we sit down and talk with clients about what can be financed and how its often practical to finance current asset accounts such as a/r and inventory via an ABL line of credit, while at the same time financing the equipment and other fixed assets under a separate facility with a finance partner/lender who has an appetite for those type of assets. That total combination of two facilities gives our client a lower ' blended cost ' of funds and at the same time increases borrowing power - talk about a ' double whammy '!

What made asset based finance popular in Canada when it comes to business owners and financial managers seeking solid biz credit facilities? A lot of it revolves around 2008/2009 when financial markets went awry and thousands of Canadian businesses started to investigate alternative methods of financing their business. And ABL sure was one of them.

And the irony in the above? Simply that companies that even theoretically qualified for more traditional financing could not get it... enter the ABL facility!

So is there a trend emerging in Canadian business lines of credit. We think there is. In the U.S. experts confirmed that in 2011 asset based credit lines almost doubled. Did that happen in Canada? We think it did, perhaps somewhat less so, but clearly the emergence of a new trend.

If your company is looking to grow (or just survive) investigate the benefits of ABL capital , making you a more effective competitor . Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in making the right decision with the right type of facility.

7 PARK AVENUE FINANCIAL
CANADIAN ASSET BASED LINE OF CREDIT 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 9 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


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





















Stan Prokop

Changing Times In Business Credit ! 10 Things You Should Know About ABL Asset Based Lending Finance

Changing Times In Business Credit ! 10 Things You Should Know About ABL Asset Based Lending Finance


Information on the newest form of business credit in Canada, the ABL Finance asset based lending facility


Business credit in Canada. Wasn't it Bob Dylan who chimed that the ' times they are a changin'.. and nothing could be further to the truth when it comes to ABL asset based lending in Canada as a new alternative for financing your business.

Asset based lending , similar to the term ' cash flow ' gets a lot of somewhat confusing definitions . So to be clear, we're talking about a true non bank asset based line of credit.

Confusion comes when business owners and financial managers refer to equipment financing, or just a receivable financing scenario. We're talking about the whole kit and caboodle! which is the ability to borrow, under one facility when it comes to a business credit line. So that of course gives you a revolving line that is margined against A/R, inventory, equipment, and even real estate, if that is part of the mix.

Historically, when ' times are good ' the good folks at Canadian chartered banks do a great job of business financing. Simple problem though, is that we find it more and more difficult to remember when times were great... they seem only constantly challenging to most of our clients.

So, enter ABL asset based financing, giving your business true cash flow generation ability.

Let's cover off 10 solid basics.

Who is using ABL? Quick answer, pretty well everybody. That covers start ups, turnarounds, firms in special loans, companies that, excuse us... are ' growing too quickly ' for traditional lenders, and yes, finally, some of the largest and most profitable and solid corporations in Canada . Enough said.

Does ABL finance really allow companies with challenges to actual work thru the turnaround? The answer is a resounding yes. Because cash flow and profits aren’t the total focus anymore, as they are with , say , our banks , the ABL solution allows you to use asset leverage to support your reorganization of emergence from a Special loans type scenario .

The question: Can Asset base lending support seasonality in business? Again, affirmative. In fact seasonality is completely covered in this form of business finance; you only pay for what facilities you use when you use them.

How important is ABL in Canada? How long has it been around? More and more Canadian business owners and financial mangers are exploring financial alternatives, and while the majority of Canadian business thinks of the banks as JOB ONE when it comes to financing, there are alternatives and it's prudent for you to know about them.

What are the clear advantages of an asset based line of credit? First of all it suits a very of business finance needs, it is not term debt, it allows for maximum borrowing against your assets, and it often provides a new discipline to your mgmt team as a bit more reporting on receivables, inventory and equipment is often required .

What are the requirements of a true ABL facility? First of all, you of course need assets; this doesn’t really work for a service business per se. Clients must have solid financial accounting to back up the reporting, and while owner guarantees are often taken, just as with our banks, lesser emphasis is places on the PG's. (Personal guarantees)

What doesn’t work in ABL? First of all, you have to absolutely ensure you're working with the right partner. Also, owner views on values of inventory, equipment, real estate, etc have to be realistic.

How are valuations on your borrowing calculated? The answer is that it’s the same manner as would a bank, i.e. a borrowing certificate formula applied typically to A/R, inventory, and equipment. A/R is typically 90% advance, while inventory ranges from 25-75% based on the nature of your inventories and their overall marketability.

Can you buy a company using an ABL strategy? Absolutely, positively, yes. Financing an acquisition using the assets of the firm you are purchasing is a creative way to finance a merger or acquisition type scenario.

Was Bob Dylan right about those ' times a changing....’? We think so when it comes to your ability to access a newer type of financing that gives you maximum borrowing power. Speak to a trusted, credible and experienced Canadian business financing advisor on how your firm can implement a better borrowing strategy based on your firms industry and circumstances.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS CREDIT AND ASSET BASED LENDING 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_credit_abl_asset_based_lending_finance.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

Restaurant Financing In Canada. From Business Plan To Finance Approval. Franchise and Non Franchise . Here’s How!

Restaurant Financing In Canada. From Business Plan To Finance Approval. Franchise and Non Franchise . Here’s How!


Restaurant Financing In Canada. From Business Plan To Finance Approval. Franchise and Non Franchise . Here’s How!



Restaurant financing in Canada. If it's your choice to enter the hospitality industry lets examine how you can increase your chances of success, from business plan to that most important element... Approval!

Quite frankly we can' think of any industry that seems to be growing more quickly, and we're of course talking about both franchise restaurants as well as independents , both of whom seem to have a solid chance of success these days.

It's not ours to judge or offer up why this industry is growing so quickly or is so popular, - reasons in fact might be that we ' seem ' to be out of a recession ( key word = seem!), the economy is getting better, and those restaurants that didn’t make it now seem ripe for the pickings vis a vis locations, etc.

Pricing is of course critical in your overall strategy. While prices of franchise restaurants are of course fixed relative to franchise cost and turnkey cost to build many non franchise restaurants can be purchased for a great price - sometimes it’s just the cost of assuming the lease from a co operative landlord.

That of course brings into play the question of equity - just how much do you need to put together a proper financing, i.e. the classic mix of debt and equity ... more simply put ... a combination of borrowed money and your own money. In Canada that seems to range from anywhere from 10 - 50 per cent. depending on a number of factors which we will discuss.

One of the most popular methods of financing a hospitality venture is utilizing the Canada BIL/CSBF loan program. While it requires a 10 per cent permanent equity injection you must be in a position to demonstrate additional access to working capital, which just makes sense as your venture ramps up on sales and working capital needs.

It is also important to demonstrate that you have some industry experience, as that seems to be a key factor in the ' KEYS TO SUCESS ' column for this industry.

It all starts with a solid business plan of course - we tell clients not to worry if they don't feel they can complete a proper plan, as that assistance can come from a Canadian business financing advisor, their accountant, or any other qualified part. And these plans have a relatively speaking nominal cost relative to the risk and important you place on getting your venture financed properly.

Key elements of the business plan are your own bio, industry info, financial projections, and an overview of your business model, whether its franchise or independent, and some info on the local competition. It's really as simple as that. Demonstrating how you will run and grow the business is also important.

Typical restaurant financing includes the finance of equipment, leaseholds, working capital, and in some cases real estate. That brings up the point of lease negotiations, which must be completed prior to your financing ... for some reason lenders like to know you have a location!!!

The double edged sword of the hospitality industry is risk and reward, the ability to be your own master.

What you don’t want to do is to be part of the falling wounded when it comes to restaurant finance in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your needs.

7 PARK AVENUE FINANCIAL
CANADIAN RESTAURANT FINANCE 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/restaurant_financing_business_plan_finance_canada.html

Business Financing In Canada . Know Your Options for Funding And Finance , Loans and Monetization

Traditional ? Alternative ? Which Finance Solutions Make Sense For Your Firm


Information on business financing and funding in Canada . What options for loans and finance strategies exist for the Canadian business owner.





Sources of business financing. What we really mean is do you as a business owner or manager really understand the type of funding your company might need, and moreover what alternative to loans and finance exist.

Capital has always been a challenge for Canadian business, more so in the SME sector. While larger corporations have Chartered banks, advisors, and access to capital pools both public and private the ' little guy ' in the small and medium enterprise sector struggles to search for capital.

It really is a bit easier than some business owners or financial managers might think - it’s about knowing whether it’s the time to take on more debt, how you balance taking on more capital, and why loans and funding, seemingly expensive, are in actuality much cheaper than equity.

Your ability to generate financing is of course what is going to make or break your growth aspirations. While there is probably no one perfect solution for all your financing needs the reality of the matter is that you can actually often ' cobble together ' finance sources that make sense when it comes to funding your firm.

As we hinted previously, you of course could consider equity investments into your firm via VC's or angel investors but the reality is these are demanding sources of capital and selling ownership at a point when you are starting to grow is in fact, quite simply, not optimal !

Let's then examine some sources of capital that are both traditional and a bit alternative. We say a bit alternative simply because many of those sources are becoming the new traditional. Talk about a paradigm shift.

Lease financing is a great example of traditional financing that works. You can use the cash to fund working capital for receivables and inventory growth. In Canada lease finance is available for firms of all credit quality and asset finance requirements. While it quite often might be a bit more expensive than bank financing it's simply less painful to acquire.

No one is a bigger fan of Canadian chartered banks than us. To companies that are well qualified they are a veritable ' buffet ' of funding and loans for cash flow, fixed asset acquisition, real estate, etc, Just make sure that you're in a position to qualify for bank financing or you might waste a lot of precious time . And remember also that the bank looks to alternative collateral, strong cash flows and balance sheets, etc.

Although the Canadian banks administer Govt SBL loans they in fact are underwritten by the government. These loans make bank financing seem quite a bit ' looser’... and thats a good thing .Because the government guarantees a major portion of your loan the bank financing on an SBL loan is flexible, competitive, and less restrictive from a pesonal covenant point of view .

The small 2% service fee on an SBL loan is, in our opinion well worth the quality of financing and funding you're receive with this product .

Are there some sources of business financing and funding in Canada you have not even considered. Some are very obvious, some less so. As an example let you customer finance your business! How? Consider an advance payment structure which also clearly identifies the commitment a client is prepared to make with you.

In the same vein as above ask suppliers for extended terms. If you're a valued client who has paid promptly in the past you've got more bargaining power than you think.

Monetize. That’s our alternative word for the day. Take a look at your balance sheet and if you have tax credits under the SRED program due your firm you can also finance those. Borrowing against a tax credit is a solid funding strategy.

Keeping in line with our monetization theme we are huge fans of receivable financing, aka factoring. By selling your receivables your balance sheet immediately becomes cash positive, there are no limits to this method of financing if you are in growth mode and the only trick here is getting into the right facility with the right partner.

Many firms who have an actual product as opposed to a service can take advantage of setting up their own vendor finance program. With a solid partner the cost is pretty well zero, and provides you with increased selling power plus the obvious fact that you have provided a true total solution to your product - you make it, sell it, and finance it! Setting up a program is a lot easier than you think.

Supply chain financing or purchase order financing is also a solid alternative funding vehicle for your firm. If you have good vendors and qualified customers the PO financier will pay your suppliers directly, assuming the risk in the whole supply chain scenario

Never forget you have options, both traditional and alternative for funding via loans and monetization strategies in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor today. It's all about the options!

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_loans_finance_canada.html

Looking For Help For A Business Financing Acquisition In Canada ? Managing Mergers With Finance Solutions That Make Sense.

Looking for Merger or Acquisition Financing?

Information on financing mergers and acquisition situations in Canada . M&A business finance solutions.


Financing an acquisition in Canada. Or is it a Merger that needs a solid business financing solution? There are probably a good handful of technical or financial differences around the differences between a merger and an acquisition, and we of course all know it’s rare that you would have a perfect alignment of the planets - two companies that have identical business, equal asset strength, and income statements that are perfectly complimentary. That's the perfect world.

But Canadian business owners know it's not a perfect world and that such ' perfect storm' scenarios exist.

We can also make the case that years ago mergers and acquisitions were financed on the basis of asset values. These days it's safe to say there are lot of goodwill and analysis of future cash flows that play a large part in the total financing equation.

When we meet clients and talk to them about their M&A needs a few basic reasons always emerge as to some essential deal basics? In some cases the firm being acquired might be in somewhat of a 'death spiral ' due to mismanagement or its inability to wrestle with present economics. Heaven forbid, but we also even see crisis type situations.

Other scenarios that are part of the M&A profile includes owners ' cashing in' , family business scenarios, and growth opportunities that can't be realized by a firm without additional help, or financing.

So what do you need to consider when it comes to financing that acquisition or merger? It's important to understand both your internal and external resources, and to ensure you understand the different options you might need to complete an appropriate financing. We say ' appropriate ' because we often seen mergers and acquisition financing that have been the solution, but far from the right one.

This is exactly the right time you should be looking at your team - which might include a Canadian business financing advisor, your lawyer, accountant, etc. Here's where issues that might seem over technical to non financial types can hopefully be clarified in a common sense manner. They might include goodwill valuation, deprecation policies, asset valuations, etc.

Although you need financing for the merger it’s also important to understand what the borrowing capabilities will be for the new entity, and what form they might take. Solutions such as asset based lending, the gov’t CSBF loan, subordinated debt, and vendor take backs can all play a key part in a successful acquisition financing. It's precisely at this point that issues such as leverage can make or break ongoing business success. Putting one ' over - borrowed' company together with another leads to... well... you know... business failure.

For help in managing thru and completing an acquisition or merger speak to a trusted, credible and experienced Canadian business financing advisor.





7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS ACQUISITION FINANCING



Stan Prokop - founder of 7 Park Avenue Financial –
http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/financing_acquisition_finance_mergers_business.html

Need Help Identifying Commercial Business Loans And Financing In Canada ? Sources Of Finance For Canadian Business

Canadian Business Financing – When .. Now… Maybe


Information on identifying business financing sources in Canada . What you need to know regarding commercial loans and finance opportunities for your company




When, and how. Do you have a handle on what business financing you need when seeking finance and commercial loans in Canada? Let's review some of those timing issues, as well as sources and solutions.



Plan A (which often quickly becomes PLAN B) for many business owners and financial managers in Canada is to highlight a Canadian chartered bank as their main option. And truth be told, commercial banking is quite competitive these days; especially from a perspective of rates, etc. (Approval is a different story!)

It's a hard core reality that you in fact, due to the above competitiveness, as well as your firms own credit quality could in fact get a better deal , structure , and rate simply by ... ' changing banks '. Is that recommended? Certainly not always, more so when it comes to evaluating the cost of a relationship.

Are there alternatives to Canadian chartered banks when it comes to commercial loans and financing in Canada? There sure are - they include pension funds, insurance companies, and commercial independent finance companies. The latter group consists of specialized small firms, niche firms, and larger Canadian and international finance corporations.

Clients ask us, when they are looking to finance externally what they need to look out for. It's a question of looking at what type of firm and financing vehicle is in fact best suited for your needs. And the factors that determine that?

They include:

Term of amortization of your financing

Why you are financing

Cost

The upside / downside of that type of finance

Short term business financing transactions in Canada tend to be 1- 3 years in length. We're often approached for very short term needs and these are difficult, but not impossible to accomplish.

Naturally longer term financing tend to be anywhere from years onward. When you consider the period or term of the loan the business owner focuses on the overall financial position of the company. The lender however focuses pretty well solely on risk and collateral.

Businesses in Canada finance for many reasons. They include expansion and growth, new markets, probably the best advice we can give a business owner, and it’s certainly the view of many lenders, that areas such as product development and working capital should be financed internally through profits and operating cash flow.

If you can’t generate enough cash internally probably one of two situations exists - your profit model is (hopefully temporarily) broken or you can't really afford the financing you think you need. Our point is simply that it’s not always external debt that is the fix to a problem . Physician, heal thyself comes to mind!

In Canada sources of financing include securitization of assets, export finance, sale leaseback of assets, working capital term loans, and monetization of assets via bank credit facilities; asset based lending agreements, and monetization of assets such as receivables or inventory on their own.

If you need assistance in identifying the why and how of business financing and commercial loans in Canada speak to a trusted, credible and experienced Canadian business financing advisor.




7 PARK AVENUE FINANCIAL
Is An Expert In Business Financing
And Commercial Loans




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_commercial_loans_canada_finance.html

Leasing Rates . What’s The Trick To Getting Best Lease Pricing In Equipment Finance In Canada?

CANADIAN BUSINESS FINANCING
WITH THE INTELLIGENT USE OF EXPERIENCE!


STAN PROKOP
7 PARK AVENUE FINANCIAL



Canadian Lease Finance Pricing – Rocket Science Degree Not Required!



Information on understanding leasing rates and equipment lease pricing for asset finance in Canada .





Leasing rates for equipment lease pricing and finance in Canada. Abracadabra! We wish it were as easy as that one word magic phrase to get the best rate for your equipment finance transaction!

But in reality its not that hard to ensure you have the best financing rates if you understand the basic underpinnings of a lease price and how certain obvious ( and not so obvious ) lessor strategies work for your favor , and what factors you can affect directly.

What isn’t hard, or magical, is why Canadian business owners and financial managers continue to embrace lease finance for the assets they need for their business.

It's simply a cost effective Canadian business financing strategy that allows your company to acquire virtually every asset your firm needs - that includes plant equipment, rolling stock, computer and telecom equipment , software, even that corporate jet ... We thought of that last one while waiting in line at the airport the other day .

Other benefits we focused on in the past in order to educate clients include cash flow management, taxation benefits, and the general ease of doing business. Oh and by the way, numerous smaller costs associated with asset acquisition can be financed also.

So what does in fact affect your leasing rates? It's a number of things, so we forgive clients for meekly asking ' whats my rate '.

Factors that affect your lease pricing at a macro level include perceptions by the lessor of your industry, your current financial strength (That’s very important) and the general asset value and remarketability of the new or used equipment that you need. All of these play a key role in lease pricing.

Is the actual pricing of a lease a disadvantage? Possibly, we certainly don’t think that’s anywhere in the majority of cases, but a careful lease buy analysis with a focus on your overall condition is highly recommended. While this can be done on the back of a napkin, numerous spreadsheet templates can get you to the goal line quickly. Even your lessor can provide you with one, but we'd suggest you ask for the formulas in the cells... just kidding.... well maybe not!

Various finance nuances exist in lease pricing. Ask your lessor if your payments are calculated in advance or arrears. The 5 elements of all lease prices are:

Term
Rate
Value of Asset Financed
Payment
End of Term Value

If you know any 4 of those you can actually calculate the last one very easily, or call us if you don’t have a lease finance calculator!

We tell every customer they get to pick their own lease rates! When the shock finally lifts of their faces we explain that your current overall financial risk profile in your financials really has determined to a large degree your current lease prices. In Canada rates range from 4-24% per annum on leases based on overall credit quality.

As a quick example, using a 100k asset over, say a 4 year term your monthly payment could vary between 2250$ and 3196$ using the above data. How important that monthly payment amount is to you based on the critical need of the asset to your company will be a final key decision driver.

One other area you need to investigate is the residuals and purchase options. They clearly define the two basic differences in operating and capital leases and can significantly affect your monthly payment.

Think we've covered it all? Well threes actually a whole litany of other things that will ultimately affect that lease price. They include prepayment penalties, upgrade formulas, commitment fees and down payments, and a handful others.

So how can Canadian business ' stay in the game' when it comes to both understanding and achieving best leasing rates and lease pricing in Canada. One option is to seek an expert, so consider talking to a trusted, credible and experienced Canadian business financing advisor who can assist you in the lease finance jungle. BE CAREFUL OUT THERE!






7 PARK AVENUE FINANCIAL
IS A CANADIAN LEASE FINANCING EXPERT





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/leasing_rates_equipment_lease_pricing_finance.html

Film And Animation Project Finance - It’s A Mad Mad World Without Canadian Film Tax Credits

Finance Your Production tax credits for film, tv and animation in Canada . Here’s why!


Information on Canadian film tax credits. Utilize your film, animation and television tax credit to finance your projects successfully .




Film and Animation finance in Canada. What producer/project owner wouldn’t agree that it's a ' mad world ' when it comes to financing a project. That's exact where Canadian film tax credits enter from stage left - they play a key component in our overall financing strategy. Let's examine that a bit.

It's rarely a perfect world, but when on exists in film financing it’s a case of equity investors making a reasonable (or great?!) return on their original investment, and those mezzanine and gap type folks also achieving a solid return on principal and interest.

Does that always happen? Of course it doesnt. Sometimes things go awry or a final component to the film financing success puzzle is required. Quite often that final component consists of Canadian film tax credits, as well as those same credits that apply to the digital animation world - the newest and probably fastest rising kid on the block .

So how can the film tax credit and the financing of same become the OSCAR of film finance? We’re still waiting for the day when the film industry acknowledges an award for most creative use of a film tax credit - we do know though there are a lot of nominees out there.

When it comes to film and animation (and television) finance in Canada the tax credit is known as a ' soft dollar 'component of your financing package. Canada current has one of the most robust and easily accessible film/animation tax credits environments in the world, and is widely recognized for that.

Simply speaking anywhere from 30-50% of your overall budget can in fact be recovered by the tax credit. And the financing of those tax credits can play a starring role in your project. Why? Because they can cash flow the actual project itself, they can play a key role in the return on equity in your project, and finally, those dollars could in fact be used to help bankroll your next project. Talk about a triple whammy.

So how in fact to tax credits accomplish those key goals for the producer.? It's not as complicated as you think, they are not refundable government monies that come from the government jurisdictions that you chose to film, produce, and post produce in. When your tax credit certificate is accepted based on your budget and spend criteria that credit becomes cash for your project - and it can be monetized as you spend or at the end of the project.

So you can choose to simply wait to get your cheque from the government (it’s a combined federal and provincial amount) after your ' spend ' is verified and audited.

In the U.S. and elsewhere it’s a battlefield out there when it comes to ongoing availability of tax credit film incentives. However, in Canada there's a sense of ‘ business as usual ' normalcy when it comes to film tax credits for movies, TV, and animation projects .

Want to examine next steps ?Its all about discussing your overall financing plan and budget with a Canadian film tax financing expert in conjunction with your tax credit budget which is usually prepared by a qualified film tax credit accountant , thereby maximizing your return in any one of the Canadian provinces .

So yes, its a ' mad world ' when it comes to film finance - use your Canadian film tax credits to assist you in your overall plan of equity, debt, print and advertising, and gap financing . You just might find the Oscar goes to film tax credits for best supporting role. Speak to a trusted, credible and experienced Canadian business financing advisor when it comes to film finance.

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_film_tax_credits_finance_animation.html

Time To Unleash An ABL Asset Line Of Credit Revolver Loan Insider Your Company? A Revolver Loan Works

What’s The Difference And Focus in ABL Financing?


Information on why an ABL revolver loan is a powerful tool in Canadian business . Finance Your Firm Via An Asset Line Of Credit



Don't you just hate them? We're talking about the ‘cash flow crowd’. That's why an ABL revolver loan via asset line of credit finance is quite simply, a way to beat that crowd at their own game.

However, all sarcasm aside, the concept of cash flow and servicing cash flow is a key driver in business credit. That's where the ABL line of credit goes against the grain. This time worn method of business revolving credit is a great solution for asset intensive businesses that cannot always meet those stringent cash flow requirements.

As we said, its all about assets, so if your firm has them, specifically A/R, inventory and equipment you're in a great position to qualify for this method of Canadian business financing for your credit line. It's been around a very long time, but quite frankly simply got more popular in recent years.

And just because it’s an alternative source of finance absolutely does not mean its anything approaching a ' lender of last resort '. The proof? Some of the largest and most successful corporations in Canada utilize it! And we’re talking public companies and private.

So why do business owners and their finance managers gravitate to an ABL revolver loan. It can be summed up in one word, flexibility. Can they be cheaper also, when it comes to financing rates? The reality for the majority of businesses is that it will be more expensive, but the trade off here is simply more liquidity. But for the record, there are numerous circumstances when ABL pricing meets or exceed that of the Canadian chartered banks. It's basically a question of overall credit quality and deal size.

Many ABL type deals are used by investors and business owners to complete a buyout transaction. That can be in the context of an acquisition or a change in overall ownership.

We do remind clients though that although the focus isn’t always on cash flow as with a bank line of credit focus the reality is that there is more monitoring and reporting when it comes to an asset line of credit finance facility . That might also include some appraisals prior to setting up the facility.

The positive trade off to that is simply that you have access to more liquidity - with receivables typically margined at 90% and inventory and equipment margins significantly exceeding Canadian chartered bank margins. The bottom line is that it’s your assets driving your access to liquidity, without being hampered by ratios or covenants.

Speak to a trusted, credible and experienced Canadian business financing advisor on why the ABL line of credit can unleash the power of liquidity for your Canadian business.






Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


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

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

Restaurant Financing In Canada - Your Hospitality Loan Finance Primer . Now You Know How!

How To Address The Financing Of A Restaurant In Canada

Information on restaurant financing in Canada . Putting the right hospitality loan in place might not be as difficult a finance challenge as you think !

Restaurant financing in Canada. Let's talk about some common sense financial approaches to getting the right hospitality loan finance in place for your chosen restaurant business. Oh, and by the way, that might be a franchise business, or it might be your own unique concept; there are advantages to both.

We use the term ' financial approach ‘. We can almost see our clients grimace when we use the term as it conjures up things like accounting, financial statements, etc. The reality is though that many entrepreneurs we meet in the hospitality industry are running on a bit too much emotion and ego and a need a little more of a financial approach to simple basics around a restaurant such as cash flow, profits, return on investment, etc.

It's really the cash flow potential of a restaurant that will determine a common sense price for you, and down the road that same metric will be a key driver in the valuation when you want to sell the business .

Getting a solid handle on the cash flow around your business allows you to be successful in several areas. Those areas include refinancing, selling your businesses, and, as we said determining if your initial investment in the business is reasonable when it comes to total return to yourself. That total return is usually viewed by the entrepreneur in two ways, the salary that he or she can take from the business, as well as the equity that the restaurant is hopefully building up in terms of valuation.

Quite frankly getting a good handle on the cash flow of the restaurant, independent or franchise... allows you to make a proper choice when it comes down to several businesses that you might be looking at .

When a lender, or yourself looks at the financial projection, or the actual financials of the restaurant they are looking to get a sense around normalizing the cash flows, as many restaurant owners take out a salary that might be higher, or lower, than the industry norm.

Be carefull in your projections, or analysis of an existing restaurant that items such as personal vehicles, salaries to family members, and advances to owner’s dont distort the true profit and loss of the business.

The ability to service lease and loan debt is critical in restaurant financing. Real care must be taken to ensure you are capturing all the debt of the business and that you feel comfortable with the overall cash flow.

The amount you are required to finance a restaurant in Canada varies, and typically it’s anywhere from 10-50% from a viewpoint of owner equity.

Due to the higher risk surrounding perceptions of hospitality loan finance care must be taken to source the proper financing. Typical financing programs that best suit Canadian restaurant finance are the SBL Government business loan, aka the 'CSBF' loan, as well as lease and equpment financing that can be easily accomplished via an independent lease finance firm.

Typical payback scenarios are 3-5 years, sometimes longer, depending on the size of the business and the loan. Leaseholds are best financed under our aforementioned SBL program.

Take a practical, not an emotional approach to your restaurant financing challenge - it will pay off in the long run. For specialized assistance speak to a trusted, credible and experienced Canadian business financing advisor for your hospitality loan finance needs.



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 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/restaurant_financing_finance_hospitality_loan.html

Lost ! Your Canadian Franchise Opportunities. Issues You Can’t Not Consider Re: Your Franchising Finance Loan

Considered These Other Issues In Canadian Franchise Financing?


Information on important aspects of a finance loan for Canadian franchise opportunities



Feeling like you may have missed out, or perhaps simply overwhelmed with the ability to a finance Canadian franchise opportunities. There are a lot of issues to consider when contemplating a franchising loan, some of which you may not have even considered or be aware of. Oh, and by the way, some of these pertain to those of you who are already franchisees and have even more unique issues to address.

Let's examine some key concepts in franchise financing. Although things have certainly gotten a lot better in the last year or so we are clearly not 100% out of the rough when it comes to the economy and lending perceptions for new and small businesses. Unless you're a master franchisee with the rights to a number of franchises then clearly you are essentially a ' Small Business '. So not withstanding the great strengths of a proven franchise business model you still face the same issues and challenges of an SME owner in Canada.

Although many current franchisees want to make some changes in their business, as well having access to the finance required it’s still difficult to achieve that flexibility.

The majority of franchises in Canada are in the ' B TO C ' (business to consumer) model. That is of course heavily dependent on the economy s a whole, and access to the financing you need. If you are a current franchisee you perhaps are in a position to simply tighten up on expenses to meet your overall working capital needs - especially if your business is suffering from a less than adequate location. In some cities in Canada demographics change, and that can drastically affect your revenues over time. Location is still critical to franchise success if you are in a business to consumer model that we spoke of.

Sometimes the solution to franchise success if you are a current franchisee is to ' upgrade ‘and revitalize your location. But what type of financing can in fact help you finance things such as leasehold improvements? The good news is that the same financing program that probably helped you acquire the business is also available for ongoing financing needs. We’re of course referring to the government business loan, aka the ' SBL '. Financing up to 350K can be accessed for things such as leaseholds, new equipment, architectural drawings, etc.

We would caution franchisees that they need to be able to sufficiently prove that any refinancing of the business must make sense in the terms of cash flow repayment. That can be accomplished by a simple cash flow plan with a focus to additional revenues achieved through your revitalization. Don't let lack of capital make you miss Canadian franchise opportunities for new and existing franchises. Ensure that you demonstrate though that you can handle the additional debt service.

There are a lot of issues to consider in financing a new or existing franchise .In some cases you might even be considering the purchase of an existing busines from another franchisee.

Speak to a trusted, credible and experienced Canadian business financing advisor for help with the issues surrounding a successful end to your franchising finance loan.





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_franchise_opportunities_finance_loan.html