Financing A Company : The Case For The Best Business Loans & Cash Sources

How To Finance A Business : We’re Talking ‘Local & Organic ‘ !

OVERVIEW – Information on financing a company in Canada . The right business loans and cash sources are a combination of external debt and proper mgmt of company assets

Financing a company in Canada is, many top experts would say, an art as well as a science. So when it comes to business loans and cash sources we're making the case that it might make sense to go ' local and organic ' let’s dig in.

Local and organic? Isn’t that about vegetables? Well in our context we maintain that it's all about being about looking inward at your financial statements (that’s the local part) and then ensuring cash sources are available to grow your company ' organically ‘.

The pro's call this ' sustainable growth rate ' and it simply means that you're able to actually calculate how fast you can grow without raising external financing, And at some point you will need ' good ' business loans and asset monetization strategies to move forward when financing is required. (Naturally you can grow by merger and acquisition but that's another story)

Financing a company is all about getting the cash you need to either start or grow a business. Three cash sources are available - debt, equity, and sometimes misunderstood: monetizing and ' cash flowing' your existing assets such as receivables, inventory, fixed assets/equipt.

Many business owners / financial mgrs don't always fully appreciate how much their financials tell them about the company's financial needs and prospects. They don't realize the ' power ' they have to affect cash through good credit extension, collecting receivables, controlling expenses, and turning inventories.

The ability to at least basically understand how your cash flow operates , where you are spending, and how outside financing is being used/consumed is key . An example: Simply slowing down your payables will increase cash flow - but there are certain risks that come with that strategy.

So how can the owner/mgr actually affect the overall financial health of a company? Knowing what your assets are really ' worth ' is also key. The quality of receivables, inventory turns, and the true value of your fixed assets leads to many external financing strategies that can help you grow cash and profits ' organically.

Asset monetization strategies, properly used, are key to good 'organic ' financing. Examples include:

Bank credit lines

Asset based lines of credit

SR&ED Tax credit financing

Sale leasebacks

PO / Contract finance


Strategies we've just named bring no debt on to your balance sheet and enhance cash flow and hopefully... profits. Real world financing always comes back to... you guessed it... Cash!

Knowing how you can extract internal (‘organic ') cash, and then complement that with good external financing is how you'll measure if your business is headed in the right direction.

Looking for the ' best ' types of business loans and cash sources? 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 financing a company...properly.




Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.


Info & Contact Details :

http://www.7parkavenuefinancial.com/financing-a-company-business-loans-cash-sources.html




7 Park Avenue Financial

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


Direct Line = 416 319 5769


Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

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

Financing A Company In Canada : Cream Of The Crop Cash Flow Finance Solutions

You Can Only Spend Real Cash!

OVERVIEW – Information on cash flow finance solutions in Canada . Financing a company requires this knowledge around available business credit offerings and how and why they work

Cash flow finance in Canada demands that your firm has the expected cash flows required; business owners and financial managers quickly realize that you can only spend real cash! When that ' cash on hand isn’t available in financing a company finance solutions are required. We're covering off the ' cream of the crop '

in those business fixes. Let's dig in.












The essence of cash flow financing, unlike asset based loans is the requirement that your firm demonstrate past and projected cash flows along with earnings and margins that are manageable.

The uses of cash flow finance are varied - typically these solutions are used to fund your daily operations- in some cases they can also be used to acquire a business. The ability to obtain financing today, as opposed to sometimes in the future is what will differentiate your business from the competition.

Business owners/mgrs of course also have to obtain to access other forms of financing - this might mean either selling equity or taking on debt. At the core of being successful in financing a company is the requirement that you can identify why and when you have cash flow fluctuations. Various forms of temporary cash flow loans allow you to take advantage of different operating conditions. Although higher rates come with non bank loans they do provide the speed and convenience of access to real capital.

Acquiring business assets requires an outlay of capital for either outright purchase of the equipment or the need to allocate cash to lease/loan payments. It's critical for business owners to be able to develop a realistic cash flow budget that shows the ongoing changes in receivables and inventories and payables.

Top experts tell us that the capital needs of Canadian business to grow assets and operations almost always exceeds cash inflows - that brings us back of course to our theme ' you can only spend real cash '! Those realistic cash budgets and appropriate financing solutions are what’s required to ensure you can acquire the assets you need to be successful. Don't forget also that assets you acquire in your business should be bringing a higher return than the actual cost of financing

When your current operations can't finance the opportunities you seek in your business you need to focus on the ' cream of the crop ' financial fixes that companies rely on - They include:


Equipment Leasing
Asset based Loans
Working Capital Term Loans
Unsecured cash flow loans

Short term financing can be accessed via:

A/R Financing
Bank credit lines
Non bank asset based business credit lines
Tax Credit Financing
Royalty Finance
PO /Contract financing

If you're focused on assessing and obtaining the best financing available for your firms current and future needs 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 financing that provides access to ... real cash!


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 CASH FLOW FINANCE 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

Secrets To Business Loan Success In Canada . Financing A Company The Right Way

A business loan when you're financing a company... your company..... can be a heck of a challenge in Canada. Let's focus in on some proven ' secrets ' to Canadian business financing success.

Loans are for different purposes, and that’s actually our first point, the ability to focus in on the differences in the type of financing you believe you need. That comes down to the differences between equity and debt.

We often talk to clients who have spent a lot of time putting together a package or business plan that feels like it is focused on equity or some sort of venture capital, when in fact its a debt financing, or ' loan ' that they are really attempting to close .

Bankers and other commercial debt lenders in Canada focus on collateral and cash flow . The private equity and angel type investors focus in on in things like product sales, customer acquisition, and exit strategies... What a difference!

So in focusing on your plan of attack, when it comes to a business loan, emphasize collateral (internal and external), some basic ' ratio' analysis, and historical financial statements or projections.

When we look at plans and packages that customers have shared with us they seem to focus on product and market ... what they really should be focusing on is management, profitability, and repayment of loans via cash flow generation.

When approaching Canadian banks for financing, either by you or with an advisor focus not on the bank, but the banker. Our experience is that good business bankers are in many ways a part of your team in the long run. Remember also that unlike 20 years ago, your banker probably does not have the authority to approve a loan, so you need their support and the ability to piggy back on their credibility with the underwriters.

Are there a couple of tried and tested rules for business loan packages -?

Here's a couple:

It's actually impossible to give a bank or another commercial lender too much info

Consider Canadian financing strategies when you don't need the capital or a loan, not when you’re in dire straits

Be prepared to answer all the gaps in your package - loan approvals flow towards zero risk

Loan packages should identify the amount of funds you need, the term, use of funds, and repayment ability. 99% of the time your repayment will come from internally generated cash flow and profits.

Canadian business owners and financial managers deserve business credit. The challenge is ensuring you know how it looks on the ' inside ' when it comes to dealing with your bank or any other commercial lender.

Extra assistance needed? Speak to a trusted, credible and experienced Canadian business financing advisor for a business loan when financing a company in Canada. A little expertise in finance goes a long way.






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_loan_financing_a_company_canada.html