Business Financing Companies For Lines Of Credit & Loans

Business Financing Loan Programs That Make Sense

Business financing choices for medium-sized companies and small business credit term loans or a line of credit often seem like huge hurdles when it comes to funding accessibility for owners/financial more. It's all about ' working capital when it comes to funding, and business owners will often lament the lack of choices in funding and capital solutions. Our thoughts? In fact, you probably have more choices today than you ever did for your cash needs! Let's dig in.


Is there ever a time when a company doesn’t need funds. Whether it's acquiring new assets, considering expansion into new markets or products, or simply paying daily operating expenses there’s always a need for financing solutions.


There is always a business loan requirement! At 7 Park Avenue Financial we will often recommend and prepare a business plan for our clients as a key part of any financing strategy.

Your timeframe of reference is critical to assessing and acquiring your financing solutions. Typical timeframes are of course ' short term' for daily needs such as a line of credit, or ' long term ' as it relates to capital assets or investments in R&D. In the long term, you might be considering simply refinancing your current business is funded - that perpetual mix of owner equity and debt - and the right combination of those two.



In the middle, there are often' bridge loan' needs for a variety of circumstances. These solutions can fill the gap that comes from the dynamic changes in your business.



From a small business perspective, many firms are in start-up or early stages, The Govt of Canada has one of the best programs that thousands of firms utilize every year. This loan is now up to $1,000,000.00 in loan cap, provides a govt guarantee to your bank for 90% of your loan, and comes with great rates and flexibility that even some more traditional forms of financing can't deliver on, i.e. any penalty pre-payment, longer terms, etc.



As we've stated, there is a ' new normal ' in Canadian business financing. That new normal includes the rise of numerous alternative finance solutions. Those combined with traditional bank financing offer a large slate of funding solutions.

So How Do Business Loans Work In Canada?

Looking for a simple list of business financing solutions available to your firm? Here they are! The Canadian ' SME ' sector has access to traditional and alternative finance solutions for small business financing as well as larger firms.

What are the best financing options for a business?

A/R Financing/ Invoice Factoring/ Confidential Receivable Financing



Inventory Loans



Bank credit lines



Nonbank asset-based revolving credit lines



Govt Guaranteed Business Loans - This is The Small Business Administration Program Of Canada ( This Program Is excellent for start up funding for small business ) This program is the best example of ' government financing ' and is used by thousands of companies every year. The program is also excellent whereas grants for small businesses may be cumbersome and difficult to obtain from a timing perspective.



Tax Credit Financing (SR&ED / FILM)



P O / Contract Financing



Equipment Financing



Unsecured cash flow loans/ Mezzanine financing



Franchise Loans



Sale Leasebacks



Royalty Financing



Working Capital Loan / Merchant Cash Advance - These viable short term loans arose out of the use of credit cards by business owners.



Many financing solutions identified here can also be combined with ' BDC Funding '. All of our referenced business finance sources are not ' equity financing ' and don't dilute owner equity. The road to venture capital and private equity financing is a long and arduous one and most companies are not ready for that journey.

Whatever financing program or strategy you employ interest rates will vary depending on whether your loan or asset monetization will cost will vary.

Documentation and your firm's ability to provide the basics such as financial statements, owner background, etc. are keys to a good financing package. Let's not forget a realistic cash flow budget also.

This broad range of financing solutions allows your firm to grow, hire people, and become key players in their industry. Looking at a number of solutions will allow you to identify business loan requirements and which finance solutions might work together.

To implement any financial solution you need to understand where your ' financing gap' is and which solutions will work when it comes to either taking on debt or simply monetizing your assets to the maximum, while still employing prudent leverage.

Are you aware of all your financing choices? If not seek out and speak to a trusted, credible, and experienced Canadian business financing advisor who can assist you with your loan and line of credit needs.




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

Types Of Business Credit Lines In Canada

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What Is A Business Credit Line ? What Type Is Best For My Company

Business Loans and Lines Of Credit - Revolving Line Of Credit

Business credit lines in Canada can come from different sources, 2 major sources in fact . Both of these sources are different on how they deliver your cash flow needs, their cost, and how they work on a day to day basis as you run and grow your company in good times, and less than good times!

Understanding those issues helps the business owner his/her financial manager to plot a ' key to success' strategy that helps ensure business growth and survival.

How To Get A Business Line Of Credit In Canada

A true business line of credit is offered by our Canadian chartered banks as well as what are known as 'nonbank' commercial lenders. These non bank lenders, often called asset-based lenders ( A B L ) operate outside banking regulations and are privately owned . Both solutions offer revolving facilities, except that the asset-based lines of credit are more focused on the actual assets in your business.

It is important to understand that typically your revolving line of credit is ultimately tied to your sales. As you sell your products and services you generate collectible receivables ( hopefully ), as well as turning inventory if your company sells a product vs. a service. Typical bank facilities focus on account receivable and sometimes have an inventory component tied to the borrowing formula. ( That formula by the way is known as a ' borrowing base ', which is an important concept to understand in business credit lines . Out of this borrowing base is what you will draw down on an ongoing basis your firms cash flow needs.

Asset based lenders focus and lend more against your assets, and in turn they tend to monitor your a/r and inventories more closely - as those two assets are typically the prime collateral for your asset-based loan.



KEY POINT - Asset based lines of credit, the nonbank type of facility, also can easily put your owned fixed assets into the borrowing formula. This total focus on ' assets ' great increases your borrowing power when combined with a/r and inventories.

Bank Line Of Credit Vs. Asset Based Credit Lines

While banks do require some ongoing reporting on your assets, typically monthly, sometimes only annually, they instead focus substantially on your operating characteristics of profit, cash flow, debt load, and character and personal collateral of owners.

Banks do finance inventories but are often challenged by the ability to both understand and monitor inventories - while asset lenders have developed experience in numerous industries and inventory types. Borrowing conditions for inventories depend heavily on the type of inventory and it's overall liquidation ability - as an example perishable foods are often hard to finance.

Business Credit Line Rates & Cost

What's my rate? That's the ongoing battle cry of business owners and financial mgrs when they consider line of credit needs and benchmark the offerings of their bank or asset-based lender. While your borrowing capacity can often double or triple in asset-based revolving facilities they do come at a higher cost.

Conventional bank financing is cheaper, but more challenging when it comes to the amount of approval, or whether your firm is bank financeable at all ! An interesting note is that in recent times, due in part to general competitiveness and the low rate environment asset loans have in fact dropped in overall cost.


Startup, fast-growing, as well as financially challenged companies are prime candidates for asset based lines of credit. They have limited or challenged cash flow generation performance, but require rapid access to cash flow and working capital. The conservative financial position as demanded by banks focuses on ratios, cash flow, debt to equity relationships, and owner guarantees.


It's important to note that many, shall we call them ' subsets’, of asset based loans can help deliver liquidity to your business.

Other Working Capital / Cash Flow Alternatives

Factoring/Confidential A/R financing

Inventory loans

Bridge loans

Sale-leaseback strategies

Purchase Order Financing

SR&ED Cash flow loans

Short Term Working Capital Loans ( Note - while these short term working capital loans are popular and positioned as business revolving credit lines they are in fact just short term loans based on 15-20% of your sales volume and are tied to personal credit history of the owner/owners


If you're focused on ' keys to success ' in your working capital and cash flow needs seek out a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success , who can assist you with your business finance needs.

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Turbo Charge Your Banking Via A Business Line Of Credit ABL Revolver!

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Small, medium or large? We're not talking about a coffee cup size... we're referring to the fact that no matter what your size of business your access to a business line of credit is the lifeblood of your company. That's why an ABL revolver (ABL = asset based line of credit) is potentially the solution to turbo charge your working capital and cash flow.

Let's examine how.
Clients seem to always wrestle with the fact that they don't really understand the differences between this type of business financing and banking as opposed to a 'regular' operating facility with the bank. The differences could not be more dramatic. While a bank facility (by the way, we are all for them also, when they work! ) focuses significantly on your balance sheet ratios and over all profitability, etc the ABL revolver solution hones in on one issue only - your assets and their overall quality and size. It is on that quality and size that the ABL business line of credit is structured.


Borrowing power is what business lines of credit are of course about. When you utilize the ABL approach you in effect leverage all the power of the assets, which certainly isn't like what we like to call ' traditional bank borrowing '

.
So, why would a business such as yours want to unlock that borrowing power? The reality is there are some very recurring needs for firms which choose this type of business financing. First of all they either can't get or can't get enough working capital borrowing power against their inventory, receivables and equipment. Secondly, all sorts of other problems, challenges, and yes opportunities can e overcome with an asset based line of credit.


Many examples exist of firms who have doubled and in some cases tripled their business financing access via this type of finance. The answer is simple - it's based on asset size, not ratios and covenants and external collateral.
Those include firms which have large seasonality issues, companies who which to merge with or acquire a competitor on an asset financing basis, and, most commonly, firms that view themselves in turnaround or restructuring mode when it comes to where they are at in their life cycle - i.e. coming out of a challenging economic time or negative business event (operating losses, etc).
Did we just say ' operating losses '?

Yes, the reality is that even firms who are experience operating losses and could otherwise not achieve maximum operating cash flow are excellent candidates for ABL financing. We should mention that the type of facility you get, the pricing on that facility, and how the facility works vary within ABL revolver financing depending on your overall transaction size and asset coverage.


We must never forget also that these type of facilities never bring debt to your balance sheet, you view them similarly as an operating line, in that you are just monetizing your assets for working capital and cash flow - the only difference is you've got tremendous flexibility around borrowing power - because you are borrowing against a base of receivables, inventory, unencumbered equipment, and in some cases real estate also.


In summary ABL revolver financing gives you a full service business financing, its cost effective, addresses almost every financing problem you have had related to cash flow, and is available in facilities from 250k to many millions of dollars.
It somewhat of a secret to many that some of Canada's largest corporations choose this type of financing over a traditional bank facility. Speak to a trusted, credible, and experienced Canadian business financing advisor on why ' ABL ' give you that ' turbo charge' boost in cash flow we've talked about.

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



' 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/6059576

Asset Based Lending Lines of Credit Canada

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Is This Type Of Business Credit Line The Future of Business Borrowing For Many Companies In Canada



Information on asset based lending lines of credit in Canada. These facilities are an alternative to bank credit lines and are used successfully by companies in every industry

Asset based lending in Canada is a solid financing alternative for firms that require financing for the traditional build up of accounts receivable and inventory that come with sales and revenue growth .

More and more Canadian firms who purchase product overseas or in the United States marketplace are finding of course that to achieve economics of scale in pricing and shipping they have to purchase in significantly larger quantities, and also allow for shipping time. And, even more critical is the questions of how to address the supplier’s payment request which often includes hefty deposits or full payment in advance.



Although established firms have access to operating liens of credit with Canadian chartered banks even these facilities often cannot provide the full financing resources that come with strong, explosive, or seasonal bulges in revenue growth.



Enter asset based lending, or the actual facility which is called an asset based line of credit. The simple definition and explanation is as follows – it is an operating or revolving line of credit facility that totally focuses on the assets of your firm, those being primarily inventory, receivables, and fixed assets such as equipment.



When your Canadian firm applies for a chartered bank line of credit there is a very strong focus on your operational metrics and your overall all balance sheet and income statement rations. A line of credit is set up with your bank that is very much related to your firms tangible equity, its debt load, historical cash flow, etc. ( Yes, we said historical cash flow! Which means that the banks focuses on how you have generated cash and profits in the past! That is little solace to the mfr, wholesales or distributor in Canada that needs cash flow now to fulfill order, contracts, etc.



The asset based line of credit places only a small reliance on those issues, what if focuses on instead is the true current value of your inventory, receivables and unencumbered equipment assets. Asset based lending specialists have a very strong sense and experience around the true liquidation values of your inventory , receivables, and fair market values of your equipment .

Therefore the final amount of the asset based line of credit you are approved for is often, almost 99% of the time, larger that a bank facility. That allows you to draw down immediately on the values of those assets, generated more cash flow. Many companies who have bank lines in Canada actually do not even have an inventory component in those facilities – so just the fact that you can now generate today cash flow out of inventory values is a huge cash flow benefit.



While asset based lending in the U.S. and, more recently in Canada was considered a non – traditional form of business financing it has clearly now entered the mainstream. You would be very surprised at the medium and large corporations in Canada that utilize this type of financing.



Different financing strategies achieve different benefits for each company. The main benefits of this type of financing facility are:

Easier to set up , get approved, and administer



Although facilities are set up with an initial cap the reality is that as your assets grow via increased sales the facility grows also – Why? Because, as we said, its asset based, not covenant or ratio based



Higher advance margins are place on receivables, usually 90%, and inventory, which in many cases hasn’t been or couldn’t be financed before is now immediately financeable



The facility usually always includes a/r and inventory , but more often than note has a fixed asset equipment or real estate component also



ABL facilities, which is the acronym these financings are known as, are specialized financings. They are an alternative to bank or traditional financing. They are becoming more popular everyday, and business owners are encouraged to speak to a specialist who is trusted, credible and experienced in this exciting new area of Canadian business financing.




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

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

Working Capital Lines of Credit and Loans That Work - Not Just For the Bank!

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When business owners and financial managers have successfully negotiated working capital facilities or term loans it should not be the end of the story. By that we mean that the business person needs to continually focus on what the bank or other financial institution requires, and more importantly, how they view the customer from a control point of view - i.e. are they in control or able to exert control on your business.

The balance sheet must be a top focus for the business owner - once a firm is over leveraged, i.e. borrowing too heavily, the bank generally starts positioning around their overall security or your ability to de-leverage.

Borrowers must be comfortable and knowledgeable about the use of 'triggers '. Triggers are the implied actions the bank or institution will take when things aren't working out. This can include everything from general poor financial performance to very specific pre agreed upon financial ratios. And the business owner must remember that he or she agreed to and concurred with these ratios.

Banks want to see cash flow ' flowing ' - flowing to repay their debt - so there many be triggers put in place by the bank to ensure that minimum cash flow standards are kept, and also that owners and shareholders do not withdraw excess funds.

Over time business owners will probably find, in our experience, that the bank restrictions either tighten up or loosen, depending of course on the overall comfort level the bank has with the firm. Clearly firms that seem temporarily challenged in profits and balance sheet quality will receive much more scrutiny.

Business owners can do some very solid and valuable preparatory work in negotiation of bank triggers. If they have a solid long term history of earnings this should be a very strong negotiating point with the institution. Simply by self introspection of the firm can the owner or financial manager focus on what is going to go wrong re sales, pricing, forex, etc. The owner needs to be able to talk to these issues and show how he could address them.

For a start calculate your own key operating ratios, if they are going to be discussion points with your bank or institution you might as well know your numbers now. Using 'what if 'scenarios help immensely and will position yourself as knowledgeable about your business.

Discussions with your bank need not be absolute and immediate on any time of loan negotiation - you can get a great informal sense of what the bank is thinking and work from that point forward. Try and read between the lines as to what is hot, and what a Vis is not with the bank Vis their perception of your firm, industry, etc.

In summary, business owners need to show maximum flexibility on working capital and loan negotiations. Negotiations should be from strength, accentuating the positive. Example - strong forecast sales and profits and potentially offset a weaker balance sheet. Trade-offs with the bank is also encouraged- and fewer triggers and covenants are better than more! And yes, there is more than one bank in the world, although business owners should be cautioned that shopping around is not optimal at all times, and can in fact backfire, particularly a small business. Business owner beware!


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

















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

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