What Are The Best Business Financing Options ?

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Sources of Business Finance In Canada

Financing sources in Canada for Canadian business must seem sometimes as if it's a matter of truth or fiction for Canadian business owners and their financial mgrs. That certainly the feeling we get from clients talking to us at 7 Park Avenue Financial .

So if those sources of business finance exist ( THEY DO !) let's take a look at what is available for the commercial borrower, hopefully eliminating some of the ' turbulence' associated with the search for business funding.

Sources of Business Finance

We will focus primarily on sources of capital that essentially are available immediately for borrowers - they include:

Trade Credit From Suppliers

Bank Solutions

Equipment Lessors

Working Capital Providers - A/R Finance / Inventory Finance / Purchase Order Finance / Short and Intermediate Term Working Capital Loans


Businesses should never forget that supplier/vendor financing is one of the best and cheapest forms of capital and cash flow. Why ? Quite frankly it is much easier to obtain, is rarely, if ever ' secured' or ' collateralized ‘and typically carries no interest penalty


You should not forget that delaying payment to suppliers is a ' cash flow positive ' , but, and it's an important but, you never want to have that strategy deteriorate the relationship you have with a key vendor. Furthermore if your firm has the cash the cost of not taking a payment discount also must be measured .


So why is prompt payment to a supplier/vendor such a key cash flow / profit variable ? You can check with your accountant but let’s say you bought 10k of product from a supplier and were able to successfully negotiate a 2% NET 60 payment term. Calculating the discount foregone and the proceeds from the use of the money you might find that’s an 18% savings rate -so if you can borrow for less than that you clearly are ahead of the game. Bottom line - never underestimate the power of supplier financing from a payment and cash flow perspective.


While banks might be consider as a first choice ' go to ' when it comes to financing sources under consideration many firms looking for ' SME ' Commercial Finance solutions will often find they don't qualify for some of all of the funding they need to run and grow the company .

Business lines of credit from banks are low cost and flexible - but they require require appropriate bank collateral and the understanding from yourself that there might be some restrictions on your financials re additional borrowing from others, etc. If your company meets cash flow and ratio and covenant requirements from banks they are certainly the lowest cost and excellent source of intermediate capital for loans on equipment, fixed assets, and a revolving line of credit.

One of the most popular forms of finance , growing constantly in popularity, is A/R financing . Why? Simply because it provides significant capital without additional equity and allows you to avoid long term debt. Essentially you are monetizing your current assets, ie receivables .

Yes a/r finance has a higher cost, and we spend a lot of time in speaking to clients around the fact that the old stigma of A/R factoring disappears more and more every day. The old alternative is fast becoming the new traditional!


The benefit of A/R Finance also includes that fact that your sales in effect become an ATM machine, generating true cash as you sell products/services. This type of business finance also is an effective way to manage seasonal bulges in your business.


Inventory financing is typically done in combination with a bank line of credit, but is even more effective when in conjunction with a non bank asset based line of credit.Good inventory financing strategies are available if your firm has quality products; good inventory turns, and is not of a perishable type - i.e. food.


Equipment financing is a solid use of intermediate financing. It allows you to avoid large cash outlays, replenish assets and technology, is easier to obtain from a financing approval point of view, and allows you to simply pay for assets over their useful economic life. A huge portion of all businesses in North America lease both new and used equipment .

The bottom line in Canadian business financing options ? You can eliminate the turbulence that comes with business finance challenges by understanding what sources are available for what maturity. Simple as that.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success , assisting you with your needs for financing sources in Canada to run and grow your company.



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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

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

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


Stan Prokop

Business Loans In Canada : Real World Working Capital Financing Sources

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Business Loans In Canada – No Alternative Facts Here !

Just Clear Info On Financing Sources & Solutions

OVERVIEW – Information on working capital & business loan financing sources in Canada . Identifying the right funding sources enhances chances of business and profit growth

Business loans in real world scenarios don't rely on 'alternative facts ' when it comes to achieving the right solution in working capital finance sources, as well as other types of funding your company might need . Looking for some solid 'real' facts on Canadian business financing? Let's dig in.
The one guarantee we provide clients is telling them that business financing is never a question of why, it's usually ' when ‘!
Working capital and cash flow are of course the heart of every business.

The challenges of obtaining that financing become a question of time. Cash flow is required for your regular ongoing business, as well as your growth strategy. In most cases your company is part of a regular cycle - you buy inventory, your produce things, you sell, bill and collect. In a perfect world your suppliers give you unlimited time to pay, and unlimited credit limits. And of course your customers pay you in exactly 30 days. Guess what? It's not a perfect world!

If you are a traditionally financed firm you have access to bank capital for revolving credit lines based on your business needs. But for a growing number of Canadian firms that access to traditional bank capital is not available. Many firms simply can't meet the numerous basic requirements that our banks demand for those low cost traditional bank financing scenarios.

You therefore probably need help in identifying sources of business financing that work for you. The solutions actually are quite numerous - its becomes a question of:

What funding solution best suits your need

What are the costs involved

Does your business model suit a particular financing solution

Working capital financing comes in several forms - it can include:

Non bank asset based lines of business credit

Inventory loans

A/R Financing

Sale Leasebacks

SR&E tax credit financing

P O Finance

Working Capital Term Loans

Merchant loans

One of the most important things you can do for working capital business financing is to ensure that the type of financing you source matches your needs. What we mean by that is that you should match short term needs with short term financing. Factoring, aka ' A/R Financing ‘might be a good example. If your receivables aren't financed, and you need cash to meet inventory and supplier commitments that type of financing is immediate and addresses your needs. Why would you enter into a five year term loan at fixed payments for a short term capital need or requirement?

Understanding your current asset mix and turnover are key to successful business growth & cash flow turnover. Those assets can quickly be monetized into a working capital facility that comes in a variety of methods. The reality is that your inventory and accounts receivable grow lock step to your sales and your ability to finance them on an ongoing basis will give you access to , in essence, unlimited working capital .


There are some solid technical rules of them around how you can generate positive pricing for working capital facilities. By calculating and analyzing some basic financial ratios (we call them relationships) in your financial statements you can get a strong sense of what’s available in working capital business financing and what pricing might be involved. Those ratios are your current ratio, your inventory turns, your receivables turns or days sales outstanding, a, and your overall debt to worth ratio. Depending on where those final ratio calculations come in will ultimately allow your working capital financier to put your firm in a low risk, medium risk, or high risk band of pricing?

The bottom line - Pricing and solutions vary, and your ability to convey the positive aspects of your business to the working capital lender will ultimately lead to a final pricing and solution.

If you're looking for ' facts ' on business financing speak to a credible, experienced and trusted working capital business financing advisor to determine what solutions are the best for your firm.


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 13 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



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

Working Capital Business Financing Sources

Information on how business owners can access working capital business financing. What solutions to business credit best fit your short term or long term growth and profit objectives?

Working Capital business financing is never a question of why - it's just simply a matter of when! Working capital and cash flow are of course the heart of every business. The challenges of obtaining that financing become a question of time.

Perhaps you need cash for for your regular ongoing business cycle - that's the simple one - you buy inventory, your produce things, you sell, bill and collect. In a perfect world your suppliers give you unlimited time to pay, and unlimited credit limits. And of course your customers pay you in exactly 30 days. Guess what? It's not a perfect world!

If you are a traditionally financed firm you have access to bank capital for revolving credit lines based on your business needs. But for a growing number of Canadian firms that access to traditional bank capital is not available. Those scenarios require a special expertise in identifying sources of business financing that work for you. The solutions actually are quite numerous - its becomes a questions of which solution works for your firm, what are the costs involved, and does the solution fit within your business model.

The business financing we are talking about can take many different forms - it might include an asset based line of credit, inventory financing or purchase order financing, a sale leaseback on unencumbered assets,, working capital term loans, or accounts receivable financing, otherwise known as factoring.

One of the most important things you can do for business financing is to ensure that the type of financing you source matches your needs. What we mean by that is that you should match short term needs with short term financing. Factoring might be a good example. If your receivables aren't financed, and you need cash to meet inventory and supplier commitments that type of financing is immediate and addresses your needs. Why would you enter into a five year term loan at fixed payments for a short term capital need or requirement?

The best way to think of short term financing is to focus on the current assets part of your balance sheet - those items include inventory and accounts receivable typically. Those assets can quickly be monetized into a working capital facility that comes in a variety methods. The reality is that your inventory and accounts receivable grow lock step to your sales and your ability to finance them on an ongoing basis will give you access to, in essence, unlimited working capital.

There are some solid technical rules of them around how you can generate positive pricing for operating facilities. By calculating and analyzing some basic financial ratios (we call them relationships) in your financial statements you can get a strong sense of whats available in working capital business financing and what pricing might be involved. Those ratios are your current ratio, your inventory turns, your receivables turns or days sales outstanding, a, and your overall debt to worth ratio. Depending on where those final ratio calculations come in will ultimately allow your working capital financier to put your firm in a low risk, medium risk, or high risk band of pricing?

In Canada working capital rates range from 8-9% per annum to 1-2% per month, depending on what assets are financed and how they are financed.

So whats our bottom line in working capital business financing? It is simply there are alternatives available and you as a business owner of financial manager can assess those alternatives in terms of short term needs or long term needs. Pricing and solutions vary, and your ability to convey the positive aspects of your business to the working capital lender will ultimately lead to a final pricing and solution. Speak to a credible, experienced and trusted working capital business financing advisor to determine what solutions are the best for your firm.

Stan Prokop is founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com

The company originates business financing for Canadian companies and is a specialist in working capital, cash flow, and asset based financing. In business 6 years the company has completed in excess of 100 Million dollars of financing for Canadian corporations of all size.

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


Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/5001337

Financing Sources In Canada : Tracking The Real Payoff In Cash Flow AR Finance

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Here’s Your Breakdown Of Financing Sources For Cash Flow And A/R Finance

OVERVIEW – Information on financing sources in Canada that augment working capital . Cash flow and AR Finance solutions are at the heart of sound company financing practices

Financing sources for cash flow and a/r financing are at the heart of the sometimes complicated business of cash mgmt and working capital financing . We're breaking down the basics. Let's dig in.

The ultimate effect of poor business financing strategies is of course failure of the company; the ability of the business owner / financial mgr to manage inflows and outflows of capital also has a key effect on profitability. Many businesses in the SME commercial segment of the Canadian economy don't even practice rudimentary cash flow planning - doing that successfully and regularly allows owners/mgrs to get a better handle on their expenses and receivables.

Proper mgmt of your business operations allows business to generate more sales or take on more contracts, and also make any necessary investments in R&D or equipment needed.

Bank lines of credit, which requires typically collateral over all the assets of your company , while providing usually all the credit line you need to run your business also has some limiting factors, not the least of which is the fact that the bank won't allow other senior or junior lenders to access that collateral security .

However, no one denies the fact that bank capital provides the lowest cost of flexible ' interest only ' financing when it comes to revolving lines of credit. Key factors that allow you to be approved for bank credit lines are of course clean financials that exhibit profit and a healthy balance of debt and owner equity. And did we forget to mention personal guarantees of the owners?

Short term financing sources also are internally manageable. We're talking about your ability to manage trade creditors and suppliers. After your business establishes itself with suppliers, large and small, payables mgmt allows you to extend cash flow needs by delaying payables via extended terms.

Don't forget also that managing your own receivables and cash flow leads to higher profits, lower bad debts, and less reliance on outside financing.

Many owners/mgrs, particularly in start up or early stage growth augment cash flow by using personal resources such as credit cards, home equity, etc. While thousands of firms compliment cash flow needs with those two resources sooner or later the company must face the fact that financing a large amount of day to day expenses with personal credit probably leads to more troubling questions! That's a domino theory you don't want to explore.

Financing your sales via the sale of your accounts receivable, aka ' factoring’ is a very specialized form of cash flow financing. A/R finance allows you to access cash as soon as you generate a sale and issue an invoice. A properly implement AR Finance strategy (our recommendation is a CONFIDENTIAL RECEIVABLE FINANCE strategy) will finance unlimited growth and sales and does not come with all the requirements of Canadian chartered banks.
Other short term sources of capital include :

Inventory loans
Sale Leasebacks
SR&ED Tax Credit Financing

If you're looking for the payoff in proper financing sources for your business 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 cash flow 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 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-sources-cash-flow-ar-finance.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


Fax = 905 829 2653


Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '








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

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




Stan Prokop

Business Finance In Canada: Stop Struggling With Loan Needs Via These Financing Sources

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Is Your Business Financing Strategy On Code Yellow : Here’s How To Get To Code Orange!

OVERVIEW – Information on financing sources in Canada for business finance loan needs . Choosing the right funding is critical to growth success

Business finance in Canada comes with a lot of challenges : While Jeff Cooper in 1989 was definitely not talking about financing sources and loan prospects in the Canadian marketplace he seems to have invented something that could well benefit business owners/financial mgrs.

That ' invention'? He's credited with encouraging the mind set of Code Yellow... allowing you to understand you might be in danger. His suggestion? Move to a ‘Code Orange ' mindset - that which you're prepared to take action! Let's examine ' Code Orange' in business financing! Let's dig in.

Knowing how much funding you require, and where to go for that funding is the essence of proper capital needs. Do you realize that those funding sources are in effect boiled down to 3 essential areas, with numerous options within those?

The three areas? Internal cash flow via better asset turnover and profit and margins. 2nd: Supplier/vendor/payable finance strategies. 3rd - banks and commercial finance companies.

Your business is ' well run' when you use the right combo of debt and owner equity. Debt and asset financing depends also on the size and stage of growth your business is in. When we meet with clients it relatively easy to identify what type of financing will work best for their current need. In fact 10 types come to mind. They include:

A/R Financing

Inventory Finance

Sale Leasebacks

Equipment finance

P O Financing

SR&ED Tax credit finance

Bank Credit Lines / Non Bank Asset based credit lines

Sales/Royalty Finance

Cash Flow loans

Govt Guaranteed Small Business Loans

It's in fact ' where your company is now ‘that really will determine which of these finance solutions will solve your current critical need.

Winning in business finance in Canada is really all about successfully planning ahead for your growth and operating needs. It's that mgmt mindset that moves you from Code Yellow to Code Orange!

The challenge exists because most top experts agree that no perfect financing exists, but some solutions are better than others for the current time. That's also where a cash flow forecast will always help you determine what your financing path is. It shouldn't seem a mystery to the business owner/mgr that different banks and commercial finance firms are in fact looking for your business.

In summary? You will move to Code Orange ( take action ) by ensuring you are know why and when you need funding, as well as determining the best cost and optimal use of funds. If you want to better understand what stage your business is in and what sources of funds are available seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can help you eliminate the struggle for proper business 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 10 years - has 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 re: Canadian business financing & contact details :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCE EXPERTISE


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


Fax = 905 829 2653


Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

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

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







Stan Prokop

Business 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

Working Capital Finance Evaluation : Where’s The Buffet In Your Financing Sources?

Avoiding Your Minute By Minute Cash Flow Crisis

OVERVIEW – Information on working capital finance alternatives in Canada . The right financing sources make the difference in the financial growth and success of your business

Working capital finance , we've always thought, should be somewhat like a ' buffet ' of financing sources for Canadian business owners and financial managers. These folks are trying to avoid the seemingly ' minute by minute' cash flow crunches that any business might experience. Let's dig in.


So, where's the buffet?

No one doubts the number of products and related services supplied by Canadian chartered banks - including both cash flow financing products as well as traditional term loans. Suffice to say that our banks are focused on providing large amounts of almost unlimited capital to businesses that present limited risk. Naturally thousands of businesses in Canada don't fall into this category of both need and size - therefore alternate sources of capital are as important as ever.

The alternative to bank financing for working capital and cash flow needs is the commercial finance companies that are more comfortable with risk and are less regulated than our banks. A great example of this are the ' asset based 'lenders that dominate the market.

These firms lend against collateral and assets - with much less focus on those 'ratios' and ' covenants' that our banks tend to focus on. The result? Greater access to capital and terms and structures that business owners can live with as they grow revenues and. hopefully...profits.

One of the main areas of commercial financing in Canada that is a solid substitute for bank financing is receivable/factoring finance. These solutions, coupled with creative mgmt of vendor payables will often provide the business owner/financial manager with the short term working capital they need. That includes the 'seasonal' or 'bulge' needs that many firms experience in their search for cash flow.

One area that is often misunderstood or overlooked by business in Canada is the Canadian Govt Small Business Loan. While not a good example of a ' working capital ' or ' cash flow ' solution it's a solid financing mechanism for equipment or leasehold improvement needs.

While many businesses in Canada continue to search for the holy grail of debt financing or VC finance solutions they often overlook alternate methods of financing their business that don't dilute equity , and these solutions often allow the business owner to avoid credit cards and personal collateral mortgages as the solution to capital needs.
Bottom line - separate your business financial life from your personal financial life is what we've always counseled clients.

What do both traditional and alternative business lenders focus on in assessing your overall credit needs? Cash flow projections are critical, and when properly prepared and both limit the amount you need to borrow and potentially highlight ways in which you can better manage cash.

Those same cash flow projections will typically also identify whether you need long term debt of some sort of short term cyclical working capital and cash flow. The reality of business financing is that short term borrowing are typically cheaper and don't add debt to the balance sheet.

So what are those forms of different working capital solutions? They include:

A/R Financing
Inventory Finance
Asset based non bank lines of credit
PO Financing
Tax Credit (SR&ED) bridge loans
Sales/Royalty Financing

If you're looking for the ' buffet ' when it comes to working capital and finance sources, with a view towards ending those daily cash flow crisis’s 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 proper evaluation of your cash flow needs .


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 WORKING CAPITAL & CASH FLOW 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