Funding For Business Via Working Capital Finance Solutions

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YOUR COMPANY IS LOOKING FOR BUSINESS CASH FLOW FINANCE!

WORKING CAPITAL LOANS AND FUNDING SOLUTIONS

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

Financing & Cash flow are the  biggest issues facing businesses today

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

CALL NOW - DIRECT LINE - 416 319 5769

EMAIL - sprokop@7parkavenuefinancial.com

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

 

DON'T LET WORKING CAPITAL FINANCE CHALLENGES BE THE SCHOOL BULLY!

 

Working capital finance in Canada.  Talking to clients about working capital on some days feels like they have entered the world of Dante's Inferno, via his famous quote 'Abandon All Hope Ye Who Enter'!

 

Talk about the feeling of the entrepreneur who is unable to take advantage of critical business opportunities and growth projects leading to business success now and in the long term!

 

WHY WORKING  CAPITAL FINANCE?

 

Working capital financing is financing your business can use in addition to any business credit lines - It allows you to purchase materials and fulfill sales orders to generate sales revenues. If your business has strategies around growth initiatives which might involve launching new products into new markets or conducting research and development under Canada's SR&ED program.

 

The ability to utilize working capital solutions to improve profit and asset turnover allows a business to maintain good supplier/vendor relationships as well as being able to utilize short-term financing for new employee hires.  Businesses that are service industries and not capital intensive/asset intensive can access business financing solutions without the need for further equity injections into the business.

 

Cash flow needs  revolve around your company's everyday operations - that's the need to pay wages and salaries, supplier and vendor obligations and managing the gap in payables and receivables - the working capital cycle / cash conversion cycle. Business success is all about the knowledge around access to necessary funding to operate and grow your company.

 

 

HOW DOES YOUR COMPANY UNLOCK SALES AND ASSETS FOR FINANCING 

 

So when it comes to funding for business in Canada does it seem to you that you’ve got that 'tied up' feeling when it comes to unlocking sales and assets and turning them into cash flow?  That doesn’t have to be the case, so let's dig in on the role of working capital in ensuring business success.

 

IT'S ALL ABOUT ASSET MONETIZATION

 

The concept of assets ' tied up ' is key to understanding working capital financing solutions. Ultimately you want to monetize current assets and allow those funds to flow through your business - growing your company.

 

HOW DOES THE BUSINESS ACCESS CASH IMMEDIATELY

 

Two types of what we can call ' instant cash ' immediately come to mind.

 

The first is of course assigning your receivables to a bank via a Commercial business line of credit via revolving credit facilities.

 

If your firm qualifies rates are low and you're typically allowed to borrow 75% of month-end margined trade credit receivables. The margining formulas are simple - you can draw down on your line of credit on any accounts under 90 days old.

 

Accounts receivable over 90 days is typically viewed as 'uncollectible', as a result, your bank is reluctant to finance those specific accounts as part of a receivable working capital facility for a small business. Maintaining your working capital ratio and focusing on good asset turnover is key to the success of any business advice you may receive!

 

  

LET RECEIVABLE FINANCING GIVE YOU CASH FLOW TRACTION  

 

 

 

 

  

THE WORKING CAPITAL REVOLUTION - ARE TRADITIONAL BUSINESS FINANCING MODELS OUTDATED?

 

  

Lender approval for accounts receivable financing is one of the quickest forms of business credit approval. Invoice financing funding options are among the fastest-growing funding solutions for Canadian companies.

 

At 7 Park Avenue Financial Confidential Receivable Financing is our most recommended solution - allow firms to invoice and collect their own receivables with no third-party notifications. It is one of the best small business lending options available to firms looking to monetize growth.

  

 

HOW DOES RECEIVABLE FINANCE WORK   

 

This method of working capital finance differs from the bank solution in Canada. Instead of pledging your receivables essentially the same security agreement is used to denote the sale of your receivables on a one or ongoing basis. While this method has a different pricing model, (it’s higher!)  It allows you to borrow 90% of your A/R value, which is significantly better than bank limits.

 

It goes without saying, but we'll say it anyway! .. that proper management of current liabilities such as accounts payable as a key part of your business expenses is also a key part of your business's overall funding.

 

 

YOU CAN COMBINE ALL YOUR ASSETS INTO ONE BORROWING FACILITY - IT'S CALLED ASSET-BASED LENDING!

 

 

The A/R Discounting model can also be combined with inventory and equipment financing for any small business as well as larger more established companies, allowing you to maximize borrowing power on all your unencumbered assets. When combined in this manner it becomes what is known as an ' ABL ‘; an asset-based line of credit working capital facility. It's a solid solution for small business funding needs. Even a real estate component can be added into your facility for company-owned premises - thereby creating even more borrowing power.

 

MORE  WORKING CAPITAL FINANCING OPTIONS

 

Both receivable discounting and asset-based credit lines, or traditional bank credit allow you to reverse your ' slow growth ' policy if that’s because of a lack of working capital funding for business - and they are solid alternatives to a business loan. At 7 Park Avenue Financial, we call it ' monetizing the balance sheet.

 

  

THE BENEFITS OF SHORT-TERM FINANCING OPTIONS FOR BUSINESS  

 

All of these types of facilities do one thing - they reduce the time gap between building or selling something, and collecting your cash from clients. It is important to note that in all these facilities described, you are only paying what you are using, so the ability to draw down on working capital is always there.

 

 OPTIMIZING SHORTER-TERM WORKING CAPITAL FOR MAXIMUM EFFICIENCY 

 

In some cases a cash working capital loan for working capital needs might be the best solution for your firm - it might be a short-term business working capital loan that typically has 12 months to 2 months term and less stringent approval requirements ( these are an outgrowth of merchant cash advances ) - in other cases, it might be a permanent term loan based on the cash flows of the business. A solid owner credit score is typically required here.

 

These solutions have repayment schedules that are typically tailored to your funding needs and will hopefully ensure your overall capital ratio of debt to equity is maintained within reasonable guidelines for your industry.

 

Interest rates in the asset-based lending environment are typically higher - at 7 Park Avenue Financial we caution clients to focus on access to capital when considering the necessity of taking on a higher interest rate. That additional access to capital will typically help generate sales and profits.

 

While a business plan is not always required for the types of financing and small business loan we are discussing they certainly can help in many cases. Business plans prepared by 7 Park Avenue Financial meet and exceed the requirements of any bank or commercial lender and are cost-effective and delivered in a timely manner.

  

 

  

KEY TAKEAWAYS - UNDERSTANDING WORKING CAPITAL FINANCING OPTIONS

 

     

The working capital requirements of a business are all about cash flow

 

All types of business and sizes of businesses require working capital financing solutions to fund day-to-day operations

Long term asset and major investments should not be made with working capital - long-term debt should be financed by term loans and other long-term initiatives

Businesses with any level of cyclical or seasonal aspects to sales require good working capital alternatives

Small businesses accessing working capital funding must be able to demonstrate good personal credit/credit score of the business owner

 

Working capital loans help companies manage cash flow around short-term expenses

Different types of working capital funding are available

Managing working capital effectively is key to business long term growth

 

CONCLUSION - WORKING CAPITAL FINANCE FUNDING FOR BUSINESSES

 

It’s quite easy for small businesses to feel ' tied up ' when it comes to cash flow financing around your business needs for more capital and appropriate business loans.

When it comes to working capital finance funding for the business you have orders, projects, and contracts... the only thing lacking is the capital to move forward!  Get the breathing room you need in cash flow financing -

 

Call 7 Park Avenue Financial,  to a trusted, credible and experienced Canadian business financing advisor with a track record of solving funding for business success.

 

" The only place where success comes before work is in the dictionary" - Vidal Sasson

 

 

  

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

 

 

  

What are the benefits of working capital financing?

 

The benefits of working capital financing include the ability of the business to manage current liabilities such as accounts payable and fixed overhead expenses. Businesses with working capital funding in place can ensure they have funds on hand for operating capital to purchase materials and inventory required in the business. Business liquidity is a major benefit of effective working capital management and a company will pay interest only on funds borrowed or drawn under a facility.

 

What is working capital financing and why is it important for businesses?

 

 

Working capital finance is a method of financing a business that allows a company to fund day-to-day business expenses and helps a business achieve growth capital goals for business growth and business expansion.  Businesses have short-term fluctuations in cash due to the timing of cash inflows from collections and cash outflows.

Business sustainability is enhanced with effective cash management that allows a company to maintain acceptable financial ratios around debt financing and capital expenditure. Understanding the impact of inventory turns and days sales outstanding is key to the successful management of the working capital cycle in business finance.

 

What are the different types of working capital finance, and how do they differ from each other?

 

The different types of working capital finance include:

 

Working capital term loans/merchant cash advance

Business lines of credit / revolving credit facility

Invoice factoring/accounts receivable financing

Tax credit financing

Business credit cards

Sales leasebacks

PO financing

 

Each financing option has different terms of repayment and interest rates and financing costs - In some cases, some form of business collateral or personal guarantee might be required - Effective short-term debt financing solutions eliminate the need for additional equity financing by owners

 

How do businesses determine their working capital needs, and what factors influence those needs?

Businesses determine working capital needs are determined by the examination of the relations between current assets and current liabilities on the company's balance sheet.  Additionally, an effective tool for determining working capital is the ongoing preparation of cash flow and sales projections. Depending on the business model and industry factors that affect working capital loan needs and cash needs include the cyclicality of the industry, general economic conditions,  and the cash conversion cycle of a business.

 

  

What are some best practices for managing working capital, and how can businesses optimize their cash flow?

 

Best practices for managing working capital include a focus on effective credit extension and collection policies as well as ensuring maximum payment terms are negotiated with key suppliers and vendors.  The use of and granting of Trade credit is an effective business tool in reversing negative working capital situations and maximizing working capital efficiency

Business owners should also focus on the relationship between short-term working capital versus long-term capital expenditures related to long-term growth goals. The role of revolving lines of credit accessed from banks or non-bank alternative financing lenders plays a key role in successful business financing strategies,

Business owners and financial managers should monitor key financial ratios on the balance sheet and income statement which helps determine working capital loan requirements. 

 

What are the risks associated with working capital financing, and how can businesses mitigate those risks?

The risks associated with working capital financing include the financing costs and interest rates associated with business borrowing.  Businesses should be prepared to potentially provide additional capital for the financing and excessive use of financing negatively impacts key financial ratios viewed by business lenders.

 

Business owners and financial managers can mitigate financing risk by ensuring they are aware of the appropriate working capital loan solutions, and by also considering diversification of business lenders. In certain types of financing the business owner's personal credit can be negatively impacted by the overuse of small business loans.

 

 

Click here for the business finance track record of 7 Park Avenue Financial

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BUSINESS FUNDING IN CANADA & BUSINESS FINANCING SOURCES

Business financing solutions in Canada clearly demonstrate that the types of loan and cash flow financing you need are clearly not equal in value and accessibility to business owners and financial managers. There are numerous types of business financing. Here's why, so let's dig in!

Any company borrowing for funds for business money will usually encounter some difficulty in taking on debt, and when there is an economic downturn, pandemics included! Whether it's financing startups or mature companies, those challenges to source business capital can be even more overwhelming.

In challenging times the ability to source debt capital is very challenging and time-consuming and the ability to work with an external business financing advisor is often recommended unless of course you and your own team are exceptionally qualified and have the management time to source capital.



Capital Funding will usually mean a combination of financing for day to day operations as well as long term finance needs. That final capital structure will be a combination of debt and equity, with lenders expecting a return on their capital and owners hoping to achieve a proper return on investment - ' ROI '.


Funding a business and acquiring assets for your business, whether that be equipment, buildings, rolling stock, and investments in technology - ie computers, software, etc typically should be acquired through proper debt instruments such as loans, leases, mortgages, etc. Matching the useful economic life of these assets to the proper finance solution is the goal! The amount of debt you take on to acquire these assets will force a dilution effect on the owners equity in the business - again pointing out the need for the right amount ... and type... of debt.


Banks and commercial funding companies in Canada are the two foremost sources of business capital and typically provide the basic financing needs you require to run... and grow the business. Financing costs are of course an expense and lower the overall pre-tax profit of your business - no secret there.

Business owners and financial managers should always be testing the cost of their debt in order to allow the company to move forward with the right goals around its costs of borrowing and return to shareholders/owners.

Many industries are very 'capital intensive ' and require a much larger amount of capital as compared to service industries, so depending on your industry, as well as what ' stage of growth ' your company is in will be the key drivers around types of short term and long term finance.

The ability to diversify your finance solutions is often recommended by experts; that might be at the start-up stage or in times of high growth. When business challenges occur that diversification allows you to consider ALTERNATIVE SOURCES OF FINANCING. In recent years many new finance solutions in alternative financing compete aggressively with traditional financing via Canadian chartered banks. It is safe to say that any type of financing, either traditional or alternative has different benefits and disadvantages that must be weighted by owners.

What Are The Best Financing Options For A Business

Many different types of business finance solutions exist - the challenge revolves around your ability to ensure you're pursuing the right type of loan or cash flow financing solution.

At 7 Park Avenue Financial many firms we work with are in the ' startup funding ' stage; new business funding for owners who have committed some of their personal capital and are looking for additional financing to start/bootstrap the business. Entrepreneurs consider every source of capital, even tapping that ' friends and family ' and ' Angel ' investors. Some consider the venture capital route which is very time consuming and expensive and typically not appropriate for the majority of startups. Those ' VC ' type deals seem most common in the technology/software area/biotech area. Often a large amount of equity must be given up by founders to receive substantial financing.

Occasionally government grants and government VC capital might be available. Companies going the VC route will have considerable pressure to quickly get to a hyper-growth stage allowing investors to recoup their investment via some sort of exit strategy.

One other source of business capital for more traditional businesses, including franchises, is the Government of Canada Small Business Loan program, providing up to $ 1,000,000 of debt for three specific categories of assets: Equipment, Leaseholds, and Real Estate.

Many business owners/entrepreneurs aren't familiar with the Canadian govt small business loan program. We can call it the ' bread and butter ' in terms of the phrase ' government loans'. Clarification is required here because it's not the gov't that actually funds the loans, it's Canadian banks with the loan guarantee in place from the federal gov't.


For Canadian business owners, timing is pretty well ... everything! That’s why with careful preparation of your submission a loan can be approved in a matter of days



Getting back to our theme of ' timing is everything ' an even more accessible solution for owners/mgrs is the working capital term loan. Often provided on an ' unsecured ' basis these loans are based primarily on the cash flow within your business bank account. There is a lot less paperwork required and funding can occur within days.



Many businesses, particularly in the SME sector (small to medium enterprise) require purchase order funding solutions when they receive orders and contracts far in excess of their normal financing capabilities. P O Financing allows companies to access new markets and larger customers, enhancing revenue growth.

Most times even international orders of almost any magnitude can be financed if your firm has a qualified buyer and a legitimate supplier. Because of that most firms also require a business credit line, in some cases called an ' ABL ' line. These revolving facilities are provided by traditional financiers such as banks, and, somewhat unknown to most, commercial finance companies often referred to as 'asset-based lenders '.



What information is required in order to assess your firm’s qualifications under most types of financing? It's not as complex as it might seem. Traditional applications often include just financial statements, but can also be augmented by a business plan or cash flow forecast. Canadian banks are typically the first ' go to ' for many business owners, and a lot of time can be spent on finding a bank, and banker, that can meet your specific needs.

Borrowers find out very quickly that banks are looking for well-performing firms that have sales, assets, clean balance sheets, and profits. Those attributes, combined with a solid BUSINESS PLAN and cash flow projection will typically lead to financing success with a bank. Canada's crown corporation non-bricks and mortar bank for entrepreneurs will also provide solid financing solutions.

In certain cases your firm might be a solid candidate for cash flow loans, often called 'mezzanine finance; with the loan secured solely by those predictable cash flows you must be able to demonstrate. These loans are often viewed as the interim bridge between debt and equity.

Both working capital term loans, as well as short term cash flow loans, are very popular in current times. Any company showing good growth is a candidate for a cash flow loan either traditional in nature, or of the type offered by a multitude of short term working capital lenders. The latter type of loan is typically a one year loan and is based on a simple formula of 15-20% of your annual sales. With these loans rates are higher as lenders are looking for higher rates of return given the loans are not collateralized.



In all cases you should be prepared to demonstrate the type of collateral that requires financing (which might include just your sales), mgmt experience, and a solid understanding of how business loans or cash flow facilities will be repaid or revolve.

We have demonstrated there are numerous sources of funding for businesses. Careful time and consideration must be given to the type of financing your business needs - different costs and risks are associated with every type of financing.


So yes, it’s true, not all business financing solutions are equal when it comes to benefits or qualifications. Seek out speak to a trusted, credible and experienced Canadian business financing advisor to determine your exact needs and potential solutions.


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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR

Stan has had a successful career with some of the world’s largest and most successful corporations. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial







Stan Prokop
7 Park Avenue Financial/Copyright/2020

Business Financing Capital Funding Solutions In Canada

Need Turnaround Financing Or A Restructuring Loan ?

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Turnaround financing and business refinance solutions are often required when your company has been on the rise... and then, unfortunately, a fall situation. Turnaround finance typically requires restructuring loan, or loans, of some type, in combination with performance changes in your business. It's all about fixing a business! Let's dig in.

Well managed companies that have a proper business plan and cash flow forecasts are rarely caught totally off guard in a liquidity crisis ( pandemics excluded ! ) and often can reverse very negative financial results. If your management team is not seasoned your company has to get help on how to survive a potential insolvency crisis.

The ability to successfully complete your business turnaround via restructuring and turnaround financing will put your firm back on solid ground. Financial recovery is ' time-sensitive ' to say the least so our ability to select and work with the right firm is ' job 1 '! Every industry has unique financing needs and you need a firm with a track record of business financial success to deliver on restructuring loans that will work to your benefit.

Leading experts such as KPMG, world-renowned for turnaround advise that turnaround and restructuring is really a 3 step or 3 phased approach for the restructuring of a company - addressing the strategic crisis, addressing the sales and profit crisis, and then the fix on your liquidity crunch for funding a business.


Challenges in the turn around abound, especially since in a turn around .especially when it comes to SME COMMERCIAL FINANCE needs, new equity/owner capital is often difficult if not impossible to acquire. So that lack of money must come from operating assets and sales. The ability to maintain sales and increase profits is of course also key to your cash flow problems.



Safe to say that owners/mgrs have to recognize the issues that arose prior to a turnaround need - they include issues such as costs in the business, mgmt/employee performance, or lower sales. Naturally, those types of issues, combined with a poor asset and sales finance strategy are typically the key issues.



Key signs of a poor finance strategy being in place are your inability to buy new needed assets , inability to meet fixed cost commitments, and loan and lease default scenarios.

Typically owners and management will notice trends in costs and sales revenue that require some sort of corrective action. In many cases, timely attention to those areas will save any sort of formal insolvency steps being taken.

This is when a hard look at your business needs to taken, and quickly. That's a look at the overall structure of the company, and that typically involves your vendors, all owners, and any other stakeholders such as key employees and of course your current lenders. You are looking for ' the fix ' and may possibly need outside help.

A good management team can often take informal internal steps to save a good business, but as we have stated, outside help should probably be considered. The ability to have time to restructure your firm on your own is always less costly and allows you to have maximum flexibility in negotiation with third parties such as banks, etc.

Implementing a Restructuring Plan and a Corporate Restructuring 

 

During this time owners and financial managers must address all the operating issues within the business, such as accounting, administration, and the management of working capital. Never has the role of financial and administrative staff been so crucial as the ability to provide financial results and cash flow forecasts for owners and lenders.



There has never been a more critical time to accelerate collection of receivables and taking a hard look at inventory turns, and the overall value of inventory, which in many cases can be in various stages of production. This entire process in well run or financially distressed companies is called the ' cash conversion cycle ' and measures the travel of money as it flows through your firm. Solving cash flow problems and timing of asset conversion to cash is key.

If a company is managing the turnaround internally on its own outside lending has to be evaluated, either through existing lenders or new sources of business capital. One of the quickest methods to accelerate cash is considering an accounts receivable financing facility, sometimes known as factoring, although the word ' FACTORING' has many versions. At 7 Park Avenue Financial we recommend CONFIDENTIAL RECEIVABLE FINANCING, allow your firm to bill and collect your own receivables while generating immediate cash flow on all sales.

An internal focus on fixing the problem allows your company to avoid formal restructuring, especially when a bank has put your account into the ' special loans ' category, often requiring a forbearance agreement to give you the much needed time we have been talking about. Those formal proceedings such as CCAA, RECEIVERSHIP, PROPOSAL TO CREDITORS, DEBTOR IN POSSESSION, etc. all involve very costly and time-consuming measures. It goes without saying, but we will say it, that negotiating financing during formal types of insolvency is highly difficult!




In some cases companies that have made an investment in r&d capital should consider factoring their SR&ED claim. Another solid strategy we've implemented is the sale-leaseback finance process, allowing you to generate cash flow from owned assets while at the same time retaining the use of those assets. Cash conservation should be a key management focus, evaluating all possible options.



Many businesses get to the ' crisis ' situation without ever having prepared a proper business plan and cash flow plan. Suffice to say that now is the time to do that! That financial forecast and plan will determine where turnaround finance is needed and how it could be achieved. Those types of efforts will determine where cash will come from and how and when it will be used.



There is a great story around a fellow named Henry Frick - In 1871 he borrowed through good and bad times to acquire and grow businesses. His secret? It might well come from the actual bank notes from Thomas Mellon of Mellon bank - a bank U.S. money center bank. Those notes? They read ' land is good ... the ovens are well built, manager on the job all day... keeps books in the evening... knows his business’!



There often emerges a clear ' pecking order ' in who or what needs to be paid and addressed in a business refinancing. That list of key players is pretty short - government obligations, key suppliers, and utilities/rent!



For those customers with bank facilities in place, they are of course forced to address the turnaround when a demand loan is called. An asset loan is often the solution that ' takes out ' the bank and provides an interim financing solution. At the end of the day it's all about being able to leverage assets via asset based lending type solutions that will allow you to put an operating plan in place while still retaining some balance sheet strength.

Asset based lending facilities which typically come from non bank lenders allow your refinance assets and move to recovery. ABL financing works in all scenarios, whether a firm is restructuring or not , and provides your firm with maximum liquidity for all assets as well as the ability to monetize sales.

SUMMARY OF TURNAROUND FINANCING SOLUTIONS :

Turnaround finance Solutions that are available are diverse - They include:



Asset based bridge loan on assets



Asset-based revolving credit facility - combines A/R, inventory and equipment and real estate into one business credit line



Tax credit finance



A/R financing


Purchase Order Financing / Contract Finance



Sale leaseback lease/loan on unencumbered assets



Sales/Royalty finance

Restructuring Advisor Assistance

At 7 Park Avenue Financial, we focus on the turnaround task at hand, helping you plan and facilitate a restructuring that works for all vested parties. That might include cash flow planning and financing, negotiating with current senior lenders and other secured lenders, as well as vendors/suppliers. Raising business capital and funding through this process requires experience and the ability to move quickly when your firm needs it most. Many firms and industries have different needs and circumstances.

At the end of the day it's all about the preservation of the true value in your company and it's future, ensuring the company transformation process works. That comes from your work on implementing costs and sales analysis, as well as ensuring you have a financing partner in place to optimize cash flow and working capital. Your ability to take action in turnaround planning to address lower sales or cash flow generation is key to the turnaround.



If your business is facing operating losses and other issues requiring business refinancing seek out and speak to a trusted, credible and experienced Canadian business financing advisor and restructuring consultant for help in asset loan and cash flow needs. Welcome to the turnaround plan !




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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



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

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR

Stan has had a successful career with some of the world’s largest and most successful corporations. He is an experienced

business financing consultant

.

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 financing 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
7 Park Avenue Financial/Copyright/2020

Funding A Business In Canada – Busting Those Urban Legends On Financing And Commercial Finance Options

De-Stressing Your Business Credit Crunch Via High Functioning Financing Solutions

OVERVIEW – Information on properly funding a business in Canada . Exploring various commercial finance issues and solutions for Canadian companies

Funding a business in Canada at times must seem like sorting through urban legends

and myth vs. reality. Financing choices via banks or commercial finance firms seem either plentiful or non existent at times! We'll review some basics around ' de-stressing' your ' credit crunch' with a view towards high functioning finance solutions that make sense for your firm. Let's dig in.


The reality in Canadian business financing is that your firm will often experience at times a contraction in business financing capability. That might be from external reasons - i.e. the 2008 world depression debacle, or simply challenges in your own business re profit/loss etc.

The harder reality is that small firms tend to be much more vulnerable, and many business owners/financial managers look to newer non bank finance solutions for business credit. Those that seek bank credit typically look for either revolving credit lines or term loans of some type.

Many business owners certainly would agree that the ' bank relationship' concept is often more of a myth than reality , as concepts such as mgmt depth, business strategy etc are often misplaced by commercial credit scoring with a focus on ratios . The hard reality of Canadian business banking is that there is no real distinction in services and credit appetite, unlike the U.S. where choice abounds based on a different banking system.

Many businesses are looking towards Asset Based Lending (‘ABL ' ). This is a direct replacement for bank credit lines, providing working capital finance based almost solely on your business assets - not the ratios!

There are some interesting and popular subsets of asset based lending such as A/R financing, Inventory finance, etc. The ' harder assets' of your business, i.e. equipment or real estate can be addressed by equipment leasing or sale leaseback strategies which are tremendous popular.

It should never be forgotten that both owner equity and credit from suppliers often round out financing needs for many businesses in the SME (small to medium enterprise) sector.

In our opinion if you're looking for a true ' urban myth ‘spend some time looking for ' government grants ‘. While some ' grants ' (aka ' free money’?) exist they rarely can finance a business and often require ' matching ' of some sort.

The two government financing scenarios that are clearly NOT myth are the Canadian Government Small Business Loan and the SR&ED refundable tax credit program. These two programs fund over 10,000 businesses every year for amounts reaching 10 Billion dollars. No urban myth with these two programs.

For real world financing in Canada it's highly recommended to ensure you have both a business plan/cash flow forecast and a total focus on cash flow and debt repayment reduction in those documents. Naturally track records and business assets/collateral always help! Start up entrepreneurs take note!

If you're looking to de- bunk some Canadian business financing urban legends with a view towards time mgmt ( and ' de-stressing ' !) 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 commercial finance options and solutions that are ' high functioning' for your business.




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 COMMERCIAL FINANCE & FUNDING 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