Business Capital : You’re In The Right Place For Loan Financing And Other Corporate Credit Needs

Looking to Fast Forward To Successful Business Financing ?

OVERVIEW – Information on accessing business capital successfully in Canada . Whether its loan financing or asset monetization , accessing the right solution is knowing your alternatives and what’s required to move forward

Business capital . It's almost always time to step outside when it comes to loan financing and other debt and cash flow facilities available to Canadian business. And ' step outside ‘ ? We of course referring to ' External Financing '! Let's dig in.

While it's certainly possible to be 100% self financing (many are but not by choice!) the reality is that any business with growth plans or asset needs will at some time require ongoing external financing. In the case of those businesses having ongoing losses some level of capital is needed to replace those funds.

How should the business owner/financial manager look at external financing? It simply a three pronged choice:

Equity Capital

Debt

Asset Monetization

We've noted in the past that many firms spend just a little too much time chasing down equity given that only the smallest amount of firms even qualify for consideration, let alone approval, for private equity, VC money, etc . Be realistic on your chances and focus on achievable.

Earlier stage firms are often in the most challenging area - needing loan and asset financing the most but being in the ' least able to qualify ' category. However, many alternative forms of financing can address business capital needs at this stage - they include:

P O / Contract Financing

Receivable Financing

Equipment Finance - (Lease financing can address all forms of credit quality)

Non bank asset based lending facilities

Sale Leasebacks

Tax Credit Refund Financing - Sr&Ed loans

Govt Guaranteed Small Business Loans



Not being able to access the type and amount of business capital the firm needs forces many owners to be in the unfortunate situation of mixing business and personal credit - i.e. credit card debt, collateral home mortgages, collapsing savings.

Top experts tell us that 90% of all business loans made to firms in the SME COMMERCIAL area are made by banks and commercial finance companies. That's where the business owner should be focusing. The other 10% of loans and financing is provided by credit unions, government programmes, and credit card borrowing.

To best access the right amount of loan / asset financing you need it's critical to have a clear loan package available. That includes potentially (but not always) a business plan we well as financial statements, cash flow projection. That cash flow by the way is probably most required and least provided by most!

If you're looking to a good ' fast forward ' towards successful business capital and loan financing seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success .
At that point you're in the right place!


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

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS CAPITAL & LOAN FINANCING EXPERTISE







Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Commercial Loans In Canada Don’t Need To Be Imaginary : Loan Financing And Asset Monetization Done Right

Don’t Be ‘ Out Of Control ‘ When It Comes To Canadian Business Financing

OVERVIEW – Information on the timing and access of commercial loans in Canada. Loan financing and asset monetization depending on knowledge of sources of capital and understanding and being able to assess your company’s present and future financial health




Commercial loans and loan financing / asset monetization sometimes seems like an imaginary concept for Canadian business owners and financial managers.

Feeling ' out of control ' in the area of understanding what finance is required for your business is a dangerous risk. While it is a challenge to understand where your company is going financially the challenge increases exponentially when it comes to assessing the following:

What will your company look like from a financial perspective?

What types of debt can your firm take on and how will it be paid back - certain businesses need more assets than others, and its that ' CAPEX' requirement re owned or financed equipment that is crucial in asset intensive industries. A high amount of debt in any company enhances financial risk and financial distress.

Assets you need in the long term are typically financed through term loans and lease financing- while day to day cash flow/working capital comes out of daily operational performance, Short term financing comes from:

Canadian chartered bank facilities
Non bank asset based lines of credit
Inventory/ AR financing programs (we consistently recommend Confidential Receivable Financing)


Is cash flow sufficient to handle your growth plans, and is future growth going to be similar to historical growth ( Knowing your sales profit and cash flow potential, as well as your ability to manage working capital and assets gives the owner/manager a strong handle on managing future financial performance)

What is your business really worth?

Naturally proper financial statements and projections go a long way towards being successful in accessing commercial financing. You are also in a position to avoid surprises such as cash crunches and bulges in sales and cash flow needs. Owner/manager financial ability often comes down to managing current assets such as inventory and receivables.

The worst case scenario often occurs when commercial loans and financing are required on an ' urgent ' basis - at that point it’s knowing your sources of capital, what they cost, how they work, and how they are structured. At this point your ability have a strong handle on your financial health is key.

Many clients we meet often underestimate the time it takes to get proper loan financing in place. That easily leads to that ' out of control ' feeling we have mentioned. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can take you from ' imaginary'

to ' reality' when it comes to loan financing and asset monetization in Canada .







Stan Prokop - 7 Park Avenue Financial :


http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :



7 Park Avenue Financial = Canadian Commercial Loan Expertise








Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653

Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience






Stan Prokop































Stan Prokop

Business Finance And Loan Financing In Canada. Can Amazingness Be Guaranteed

Do You Know The Driving Forces Of Canadian Business Financing - Not Everyone Does


OVERVIEW – Information on business finance and loan financing in Canada. What Challenge and Solutions are available ?



Business finance in Canada. When it comes to loan financing in Canada we're the first to admit we hate it when people flog a dead horse, as the expression goes. (Is that even politically correct to say?)

So we promise that this will be the last installment on the revelations we got when we participated in a CEO survey for BDC. The subject - Access to financing and nothing interests us more than that!

While a survey posts questions and responses we thought it even more prudent to add some real world commentary and throw in some solutions.

It was no surprise to us of course that 62% of Canadian business owners and financial managers found financing their business both difficult and ‘somewhat difficult '. Bottom line, half of your competitors are in the same boat as you, so don't feel overly bad.

The survey also revealed that many businesses are out there seeking equity financing of some form. While only a very minute amount of Canadian firms are successful in seeking VC or Private equity financing many business owners/managers still feel there firms are candidates for some sort of equity finance . Sadly few get to the goal line. Naturally if you've got the greatest story every told, sales, profits, and high growth potentials those friendly VC guys will be all over you. Good luck with that.

So if equity or quasi equity financing isn’t in fact available for your firm you've basically got two other solutions - take on term debt or our favourite, monetize and finance existing assets.

As a business owner are you sure that you have explored every aspect of asset and cash flow financing. These include:

Receivable Financing

Equipment Finance / Sale leasebacks

Secured/Unsecured cash flow loans

Monetizing your Financing SR&ED Tax Credits

Government SBL loans

Asset based lines of credit

Oh and lest we forget, the best but hardest to get - Commercial bank financing from our Chartered banks and government crown corporations


More often than not you're eligible for any or most of the above simply because your business is growing. As our survey noted if you're downsizing your company, outsourcing, or finding your business in a death spiral financing is going to always be more of a challenge. Not impossible, but a challenge.

43% of all Canadian business respondents in the survey indicated they were either unsuccessful or only partially successful in getting the financing they received. A good example of a solid solution as per above? Many companies don’t meet qualifications for bank financing these days, simply because their ratios and covenants are out of order. However, they are absolutely eligible for an asset based line of credit from a non bank commercial lender. The upside? This solution actually gives you more financing than you would obtain from a chartered bank facility. Trust us!

The main categories for business finance needs in the survey are those that clients talk to us about everyday. They include:

Equipment and Technology Assets

Inventory finance

Lines of credit

Leasehold improvements


Your peers and competitors in the survey indicated they didn’t receive access to financing because of the size of their firm, their inability to meet ' ratios’, or inability to provide solid personal guarantees and additional collateral.

While our great banks in Canada provide over 64% of all financing to business make sure you explore the firms and type of financing that provides the other 36%.

43% of all companies in Canada maintain they utilize a trusted, credible and experienced Canadian business advisor or firm to help them with their financing needs.



Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

7 Park Avenue Financial = Canadian business finance and loan financing expertise


CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com

Stan Prokop