Recognize These Symptoms? It Is Time For New Business Financing And Capital Strategy Options!

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Canadian Business Financing – Techniques and Solutions

Canadian Business Financing . Or lack thereof?! Are there some symptoms for finance capital  strategy options we can look for, and fix for small business in Canada? We think there are. While some search for angel investors and venture capital at 7 Park Avenue Financial we focus on real-world accessible financial solutions.

 

Here's one for you. How many business owners would associate overdue receivables, poorly moving inventory, or underused fixed assets as a symptom of too much financing? We're pretty sure that few business owners (or even their financial managers) would associate those symptoms with having too much capital!

 

SYMPTOMS OF THE NEED FOR ADDITIONAL BUSINESS CAPITAL

 

Then of course there is the other side of the coin, which is what clients always are looking for - business loan and business financing solutions.  That might be bank loan/bank financing or a business finance solution via an alternative financing source - of which there are many. So what would some of those symptoms be?  They are pretty obvious more often than not:

 

Little or no cash on hand

 

Vendor payment issues

 

Manufacturing timing/shipment issues (You can't make ' em fast enough!)

 

Also, by the way, if you feel you are getting too little of a return on investment on all your assets its pretty clear that might be a symptom of a capital strategy problem.

 

THE ABILITY TO ACCESS CASH FLOW AND WORKING CAPITAL

 

It's safe to say that the right amount of cash flow, working capital, and other assets would probably fix any challenges your firm is facing. Naturally, every business is different; for example, a service company requires little fixed assets and tends to be more cash flow based.

 

  

UNDERSTANDING YOUR COMPANY'S DEBT TO EQUITY RELATIONSHIP IS KEY   

 

Here is one for you. Did you know that some analysis around your fixed capital can actually help you solve your problems? Take a good look at your long term debt and equity on the balance sheet and measure that relationship once in awhile - yearly would be a minimum timeframe.

 

MONITOR CURRENT ASSET ACCOUNT TURNOVER   - RECEIVABLES AND INVENTORY FOCUS

 

We're still looking for some other symptoms though, right. Here are some more.  If you feel on an ongoing basis that you’re experiencing large increases in receivable and inventory growth you are a strong candidate for some hard analysis of some new financing and capital options. It's those 'investments ' in receivables and inventory that devour your cash flow, forcing you to address new financing options. For the SME owner, those large growths in A/R and inventory actually mean you will probably be able to take less out of the company in the form of dividends, mgmt. bonuses, etc.

 

By the way, if you are looking at new purchases of assets ensure those assets will generate profits, not eat up capital or create losses. That's just common sense.

 

CONCLUSION

New Business financing options can be addressed if you have a strong handle on a very few basic calculations - those include some rudimentary things like expense per day, receivable turnover, inventory turns, etc.

 

Oh, and by the way, lenders of short term and longer-term capital are looking at those same things in your balance sheet, so being able to talk to those issues will help you... a lot. Note also that a business plan and cash flow projections will assist you in accessing financing more quickly versus being unprepared!

 

So whether your company is early stage or simply high growth and growing .. speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with capital options  and business loans in the short or long term (and crisis) situations.

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

Business Turnaround Financing Sources Options And Techniques

Feeling Like An Honorary Member Of The Business Financing Outsider Club?

OVERVIEW – Information on business turnaround financing services and strategies. Knowing which options are available for turn around finance is your deal breaker in business survival and success

Options in business turnaround financing services leave many clients we meet feeling as if they are business financing outsiders. Knowing they have to focus on some sort of ' financial recovery ' without knowing their sources of potential financial capital can leave owners/mgr's in a very undesirable ' limbo'. We're reviewing some financial options, techniques and go to strategies for the desired turn around. Let's dig in.

Suffice to say that in business financing knowing the problem is a huge part of the solution. While the worst case scenario is going out of business the desired solution is financing that works.

Various types of finance sources exist, both traditional and alternative to help companies in times of need when there is an operating loss or current financial structure does not allow you to pay suppliers and lenders, much less grow.

While owner or new outside equity might sometimes me desired, or even mandated that type of capital is often hard as you're turning around your business. One strategy explored by many is the possibility to merge your firm with another strategic partner or... dare we say it... competitor. In many cases declining sales and be assisted in ways such as cost cutting and operational efficiencies such as asset turnover.

Having solid cash flow projections and a realistic business plan is key to a solid turnaround strategy. That coupled with a solid understanding of current business assets and their value is the key to bouncing back financially. How you generate revenue is key in understanding potential turnaround financing solutions.

Financing solutions that properly address turnaround strategies include:

Unsecured cash flow loans

A/R Financing - Proper refinancing of sales receivables will always get you more cash

Inventory loans

Asset based non - bank business lines of credit (loan advances for these credit lines are much more generous than traditional Canadian chartered bank alternatives

Sale leaseback strategies - In many case proper appraisals of fixed or current assets may well be required by external sources

PO Financing

Sales/Royalty financing

Proper financing of your current assets (A/R / INVENTORIES) allows you turn inventories into receivables into cash in an ongoing cycle. ASSET TURNOVER IS KEY!

In many cases turnaround financing is a temporary fix - typical time frames are from 12-24 months; naturally business owners should be focusing on the long term plan also. Survive and then thrive might well be the mantra!

Outside collateral and personal guarantees of owners will almost always (unfortunately) be on the discussion table. Also, it's important to note that cash flow also comes from effective payables mgmt., as well as limiting extended terms to your customers.

Some of the strategies mentioned above involve your ability to maximize asset turnover and recognize proper valuation of your assets. Simple strategies such as the ' sale lease back ' of asset you already own can bring in valuable capital to pay off or re-arrange debt.

In any turnaround strategy it's important to address any government debt such as CRA arrears, HST, etc. New ' turnaround ' financing will often address this govt debt first because of the ' super priority' the govt has on all businesses.

Once new financing is in place your focus should be on managing cash flow and balance sheet activity. Just the ability to properly forecast a realistic future cash flow need goes a long way in arranging new financing. While lenders always have a long term focus on ' getting out' and getting paid the business owner/mgr's skills in showing control and minimizing risk is key.

If you want to become an insider, as opposed to your current business financing outsider status 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 business turnaround financing services / options.


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 TURNAROUND 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

Business Credit In Canada . Knowing When You Need Financing Options And Sources

How’s Your Business When It’s On The Operating Table ?


OVERVIEW – .Information on business credit and financing options for Canadian business. How does the owner / manager assess the need for finance options and sources of capital in Canada




Business credit financing options in Canada. Sources are capital are consistently sought by owners and managers of Canadian firms. One way to assess the type of financing you need is by putting your company on the ' operating table '. Let's examine some basic techniques, strategies and real world solutions that will provide meaningful answers to the eternal question ' Where's the money '. Let's dig in.

Whether you call it an 'art' or a ' science ' the answer to the type of Canadian business financing that you need lies in looking at your companies practical situation and looking for quite easily found ' clues ' your over solvency and liquidity in terms of day to day operations and growth .

A top priority for the business owner / manager is to ensure they understand current and long term solvency of their firm. It's that overall solvency that allows you to get credit from banks and commercial finance firms offering a wide variety of non - bank solutions. Those non bank potential financing solutions include:

A/R Finance
Inventory Financing
Asset based business lines of credit
Sale leasebacks
Equipment financing
Bridge loans
Unsecured Cash flow loans
Tax credit monetization
Supply chain /PO Finance

When your company is on that operating table don't forget to check the patient for ' circulation’. However the circulation we're talking about is how your current assets circulate - typically that’s the flow of your cash to inventories to receivables and back to... you guessed it... cash! Your circulation is excellent if you're collecting your A/R to terms and turning inventories over promptly.

It's another reality that short term cash, liquidity and solvency issues don’t fix your long term capital structure. Always be cognizant of the amount of debt you are carrying relative to owner equity.

Three great ' buzzwords' to keep thinking of as you assess your solvency and financing options are:

Trends
Changes
Movement of cash

Business credit in the short term typically revolves around inventory and A/R turns.

While all business owners we meet consider their firms unique the reality is that you can easily benchmark your balance sheet and operating results against others in your industry.

Ownership of assets such as equipment and real estate requires that you seriously consider your ability to generate profits and cash flow - notwithstanding that the assets themselves are the actual collateral for the debt.

We're always impressed by business owners/managers that maintain on going income and current asset information - aka ' budgets'. These allow you to assess current and seasonal needs. They are great tools to impress and secure bank financing in Canada.

Certain types of financing can help the business owner address unrealistic debt burden. Many businesses in Canada are simply weak because of what we can only call ' inadequate financing '.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in assessing business credit needs and identifying financing options and sources of capital and cash flow.



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 Financing Options






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

Recognize These Symptoms? It Time For New Business Financing And Capital Strategy Options !

Canadian Business Financing – Techniques and Solutions


Information on business financing options in Canada . Get the right capital and strategy for your company’s needs

Business financing in Canada. Or lack thereof?! Are there some symptoms for finance capital options we can look for, and fix? We think there are.

Here's one for you. How many business owners would associate overdue receivables, poorly moving inventory, or under used fixed assets as a symptom of too much financing. We're pretty sure that few business owners (or even their financial managers) would associate those symptoms with having too much capital!

Then of course there is the other side of the coin, which is what clients always are looking for - business financing solutions. So what would some of those symptoms be? They are pretty obvious more often than not:

Little or no cash on hand

Vendor payment issues

Manufacturing timing / shipment issues (You can't make ' em fast enough!)

Also, by the way, if you feel you are getting too little of a return on investment on all your assets its pretty clear that might be a symptom of a capital strategy problem.

It's safe to say that the right amount of cash flow, working capital, and other assets would probably fix any challenges your firm is facing. Naturally every business is different; for example a service company requires little fixed assets and tends to be more cash flow based.

Here is one for you. Did you know that some analysis around your fixed capital can actually help you solve your problems? Take a good look at your long term debt and equity on the balance sheet and measure that relationship once in awhile - yearly would be a minimum timeframe.

We're still looking for some other symptoms though, right. Here's some more. If you feel on an ongoing basis that you’re experiencing large increases in receivable and inventory growth you are strong candidate for some hard analysis of some new financing and capital options. It's those 'investments ' in receivables and inventory that devour your cash flow, forcing you to address new financing options. For the SME owner those large growths in A/R and stock actually mean you will probably be able to take less out of the company in the form of dividends, mgmt. bonuses, etc.

By the way, if you are looking at new purchases of assets ensure those assets will generate profits, not eat up capital or create losses. That's just common sense.

New Business financing options can be addressed if you have a strong handle on a very few basic calculations - those include some rudimentary things like expense per day, receivable turnover, inventory turns, etc.

Oh, and by the way, lenders of short term and longer term capital are looking at those same things in your balance sheet, so being able to talk to those issues will help you... a lot.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with capital options in the short or long term (and crisis) situations.

Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/business_financing_capital_strategy_options.html

Options And Sources Of Canadian Business Financing - Raising Business Finance

Canadian Business Finance Alternatives



Information on sources of business financing for Canadian companies . Raising finance capital can be achieved with a variety of options that are both traditional and alternative in nature.



Let's be honest. What business owner or new entrepreneur doesn't want options and sources of business financing for Canadian companies or new ventures. Raising finance for any firm is a challenge - the larger corporations seem to have it down pat, but what about the small and medium sized business owner.

Let's examine some options on how you can get capital for your business, and at the same time review some of the benefits, and risk, around some of these options.

Looking for capital revolves around your ability to determine whether you need operating capital or long term capital in the context of asset financing or permanent working capital.

Operating capital is required for the combination of start up expenses, as well as ongoing cash flow and working capital financing. These initial funds are used for product development, marketing, legal and accounting fees, as well as leasehold improvements to your facility or store.

Most Canadian businesses involved in any sort of research and development around their product are probably eligible for Canada's SR&ED, aka ' SRED' credit. It’s a non refundable cheque from federal and provincial authorities.

Your SR&ED claim is most successful when it is prepared by a qualified SRED consultant who can maximize the benefits of the program. We cringe when business owners or financial managers tell us that the program is ' just too much paperwork ' because they are clearly forsaking a true capital injection into their business. Many of those consultants will actually prepare your claim at their own time and expense risk, offering you a contingency agreement on those funds. The bottom line: check out this program.

Leasehold improvements are generally very difficult to finance if you are starting a business, and even if you are already established and generating revenue. That's why it's important to investigate Canada's Small Business Loan Program, technically referred to as the BIL/CSBF program. It finances leaseholds to a maximum of $ 350,000.00 and offers rates, terms and structures that even larger corporations would be envious of.

We're not big fans of utilizing so called ' love money ‘, i.e. funds from friends and family. We're even less enamored by clients who are actually prepared to collapse personal registered savings or mortgage their homes to start a business. While its important to have some ' skin in the game' as the expression goes its our recommendation that you incorporate your business and strongly seek out traditional and alternative financing to fund your business .

Some sources these two types of financing include supplier financing via extended terms, sale of receivables which is commonly called invoice discounting , merchant cash advances ( cash flowing future credit card sales ) equipment financing for hard assets, or even more sophisticated royalty arrangements that might be a hybrid of both debt and equity in your business.

In Canada venture capital and private equity is generally very difficult to obtain for most start up ventures - we caution clients to not dwell too long on these options unless you're committed to a long haul in effort!

We also point out that the size and credit quality of any business, start up or established still offers numerous sources of financing, either traditional or alternative. Speak to a trusted, credible and experienced Canadian business financing advisor on sources of business financing and options for raising capital for your venture.



Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing
.Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/sources_business_financing_raising_finance_options.html

The New Shape of Business Financing and Commercial Lending Options in Canada

A Mini White Paper On Canadian Business Financing

Information on the state of Canadian Business Financing and commercial lending . Who is offering and competing with who and what types of options are available to Canadian companies seeking asset and working capital financing .




Turmoil in economic times presents all sorts of challenges for Canadian business owners and financial managers. As challenging as business financing has become so called ' tougher times' a new breed of financing services and players in Canadian business financing offer new and different types of financing for business needs.

Most people would agree that the Canadian chartered banks had what we could call the protective turf in Canadian business financing for many decades. Our observation? Boy has that changed, and new dynamic and innovative offerings are available for every type of business, from start up to large corporation.

A good way to thing of business financing in Canada is simply by thinking of the offering as either from a regulated player, or a non regulated player. Banks are a good example of regulated players, while firms such as equipment finance companies or asset based lenders tend to be unregulated.

Types of financing that might have been unimaginable in older times are now viewed as new and extraordinary relative to business financing needs.

Many larger industrial corporations - i.e. G.E, G.M., etc. have in fact become major players in Global and certainly Canadian financing. Commercial lending and financing is no longer of course just offered by Canadian chartered banks. In Canada it is some major insurance companies and pension funds that are the ones funding the Canadian equipment financing industry.

Different financing firms have different niches, but in many cases competition has become fierce and it’s quite often a challenge for the companies seeking Canadian business financing to differentiate from who is offering what.

When we think of the financing needs of larger companies in Canada we can be forgiven for thinking that this is the real bread and butter of bank commercial lending in Canada.

Captive finance companies also provide a significant amount of financing in Canada. They play a significant role in many transactions that otherwise might not be able to meet more stringent bank criteria. The good news is that many captive finance firms have branched out in Canada to offer inventory financing, purchase order financing, asset based lending, and equipment finance - not just for their parent companies, but for a large measure of Canadian business. And that’s a good thing!

When Canadian business has a strong knowledge of both the finance offering and the competition for that offering that leads to better rates, terms and structures for your firm, the borrower.

Canadian banks , viewed as the strongest and best run in pretty well the whole world haven’t necessarily stood around watching their business financing and commercial lending decline . They have expanded into the U.S., purchased independent commercial lease financing and auto financing firms, and rebranded these firms into their own offering.

Many smaller companies in Canada, those ranging under 5 Million dollars in revenue utilize independent commercial receivable financing firms, known as ' factors' to finance their working capital needs. The need for this and other types of creative financing is huge because of the general strict credit criteria of the Canadian chartered banking system.

Other non bank financing services in Canada generate premium pricing for the companies offering these services. We think they do this by paying more attention to the real needs of Canadian firms seeking commercial lending. When asset based lenders or receivable and P.O. factoring firms have the right discipline they have proved themselves to be very successful and strong competitors of the Canadian banks.

Canadian non bank finance firms have a number of nonproprietary finance offerings that allow premium pricing, and servicing the SME (small to medium enterprise) sector provides strong growth opportunities.

So how does the ever changing Canadian business financing landscape affect you, the potential borrower? The bottom line is that a variety of finance offerings allow you to maintain an open door to get the maximum amount of financing your firm needs. Smaller firms have the ability to use lease asset financing, receivable financing, tax credit financing, purchase order financing from a variety of competitors.

Take hands on approach to your finance needs by speaking to a trusted, credible and experienced Canadian business financing advisor who can help you manage the relationships you need to have in place to access business financing options that make sense for your firm.



ABOUT THE AUTHOR -

Stan Prokop
7 Park Avenue Financial
www.7parkavenuefinancial.com

Technology Financing – Options and Strategies for IT And Solar Assets In Canada

Financing technology, whether it be IT ( information technology ) assets, or the new kid on the block, solar finance , requires a combination of access to capital and solid expertise . Let's examine some key options and strategies in tech finance that will provide your firm with the growth potential you need. Oh, and by the way, this pertains to whether you are a user or a vendor of these assets.

Key issues that come into play are valuation of assets, useful economic life (ouch! isn’t that an accounting term?!) and types of financing available in the Canadian marketplace.

Clearly tech financing covers a variety of industries, we're focusing today primarily on computing and solar industries, but our comments are broadly applicable to a number of other asset types.

One of the key challenges in financing technology is simply the fact that the majority of goods and services provided and utilized by your firms either depreciate rapidly, or , unfortunately slowly become obsolete. There is a great analogy that tech assets are like a mines assets, they are depleted and are ' replenished by development '. A true analogy!

Financing tech assets must take into consideration the obsolescence factor - a good example of course if pc's, laptops and servers which easily can depreciate 30% per annum. Creative financial arrangements around these types of assets is critical and we'll discuss that a bit also.

Software and services, often financeable, are other solid examples of high technology assets that require specific options and strategies. These products are high gross margin to the seller and when financed properly provide both benefits to the user and profits to the vendor/lessor. Factors that drive software financing are upgrade cycles, continued proliferation of PC'c and mobile products into all facets of business, as well as the obvious productivity gains these products provide.

Tech and Solar assets can be either finance or purchased. When these assets are financed key issues for financial and credit scrutiny include interest coverage and cash flow, valuation of the technology re type of financing desired.

In the U.S. Surprising almost half the country's employed work in IT and other emerging tech areas such as solar, wind, etc. We're quite sure Canada's numbers would be too far off that.

For computer IT assets typical lease and other financing terms rarely go over three years... it’s simply a question of the useful life of these types of assets. Solar projects require alternative strategies, since they typically have a longer payback.

Financing transactions in IT and Solar industries tend to be cash flow, and not asset based when it comes to lending and financing transactions. These type of transactions clearly aren’t ' asset based lending ' in its traditional form. Upgrades are common in computer, they aren’t in Solar.

It is important for both borrowers and vendors and lessor to separate financing from licensing and technology issues - the intellectual property in the asset being financed rarely, if ever transfers to the borrower.

Key options and strategies in technology financing typically include operating leases, providing the user with significant flexibility.

When either financing tech and solar sales, or utilizing and acquiring such assets consider working with an experienced, credible and trusted Canadian business financing advisor who should be selected on the basis of experience, knowledge, and references .


Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/technology_financing_options_strategies_solar_it.html

Financing A Franchise In Canada ? Here Are Clear Finance Options For Approval From Lenders

Pretty well everyone agrees these days that the franchise option is one of the best ways to purchase and run a business. That's the easy thing we can all agree on... but what about financing a franchise and making sure you have a solid knowledge and assistance around finance options and who the lenders are in the Canadian marketplace.

Don't despair. Let's cover off some key basics, tips, strategies, and solutions around your decision to buy a franchise in Canada and become an entrepreneur in the true sense of the word.

After all the euphoria is over re: having made that decision to purchase a franchise a minor problem usually occurs - the cost, and how to finance that cost ?!

It's safe to say you need to pick an ' affordable ' franchise. That’s not as negative sounding as you think, since a large portion of your franchise cost can be financed depending on which financing option you choose. However, lets be clear, there are only two components to any business purchase, debt (what you borrow) and equity (what you put in).

A good rule of thumb these days is a 30 -40% owner equity contribution. That ratio isn’t one that is cast in stone, but is one that we see works constantly for many of our clients.

Remember also that as large as that financing challenge might be that you actually simply have to show that the funds you borrow can be repaid through your cash flow and profit projection. Actually cash flows pay back lenders, not profits. More about that shortly.

In a franchise purchase there are what we call ' soft costs ' and ‘hard costs’. The soft cost traditionally is things like the franchise fee - usually the largest soft cost on your project. Naturally it makes sense the hard costs are things like equipment, leaseholds, even perhaps real estate in some cases.

Financing soft costs is a challenge for any business in Canada. So typically the franchisee should cover them thru his portion of the equity injection. But what about those leaseholds and equipment?

Here's the great news. Financing a franchise in Canada is mostly done through a unique and specialized government loan program called the BIL / CSBF program, monitored by Industry Canada, and administered by Canadian banks under the auspices and watch of the federal program.

Is the BIL a great program? We let our clients be the ultimate judge, but in our humble opinion it provides, bar none, the best finance options for a huge amount of the Canadian franchise industry. The bottom line on the program? Simple. Great rates, terms and flexible structure, and are you ready, a limited personal guarantee. Even the big boys in business in Canada cannot often escape that one!

When clients ask us for some basic key tips and advice on dealing with a franchise lender, or even isolating who these lenders are we always revert back to BOY SCOUT MOTTO 101 - BE PREPARED! Being prepared is simple, but requires a razor sharp focus on having a crisp business plan in place, some financial projections that guess what, make sense! It should be a document that covers your experience, highlights your purchase, and most importantly, shows how you will succeed financially - i.e. pay back the lenders based on the financing options you have chosen. Simple as that.

Are the BIL finance options the only method to finance a franchise? Definitely not, there are some independent finance options out there, and in many cases we supplement the overall financing plan with equipment loans and working capital financing, which also has to be addressed early on in your planning.

If you are committed to purchasing a franchise you need clear guidance and assistance on financing a franchise successfully. You don’t get a lot of chances to do things right in the world of finance, borrowing, etc. Speak to a trusted, credible and experienced Canadian business financing advisor to ensure you maximize those finance options to your benefit.

P.S. Good luck in your new role as a Canadian entrepreneur.






Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/financing_a_franchise_finance_options_lenders.html

Financing A Franchise In Canada ? Here Are Clear Finance Options For Approval From Lenders

Pretty well everyone agrees these days that the franchise option is one of the best ways to purchase and run a business. That's the easy thing we can all agree on... but what about financing a franchise and making sure you have a solid knowledge and assistance around finance options and who the lenders are in the Canadian marketplace.

Don't despair. Let's cover off some key basics, tips, strategies, and solutions around your decision to buy a franchise in Canada and become an entrepreneur in the true sense of the word.

After all the euphoria is over re: having made that decision to purchase a franchise a minor problem usually occurs - the cost, and how to finance that cost ?!

It's safe to say you need to pick an ' affordable ' franchise. That’s not as negative sounding as you think, since a large portion of your franchise cost can be financed depending on which financing option you choose. However, lets be clear, there are only two components to any business purchase, debt (what you borrow) and equity (what you put in).

A good rule of thumb these days is a 30 -40% owner equity contribution. That ratio isn’t one that is cast in stone, but is one that we see works constantly for many of our clients.

Remember also that as large as that financing challenge might be that you actually simply have to show that the funds you borrow can be repaid through your cash flow and profit projection. Actually cash flows pay back lenders, not profits. More about that shortly.

In a franchise purchase there are what we call ' soft costs ' and ‘hard costs’. The soft cost traditionally is things like the franchise fee - usually the largest soft cost on your project. Naturally it makes sense the hard costs are things like equipment, leaseholds, even perhaps real estate in some cases.

Financing soft costs is a challenge for any business in Canada. So typically the franchisee should cover them thru his portion of the equity injection. But what about those leaseholds and equipment?

Here's the great news. Financing a franchise in Canada is mostly done through a unique and specialized government loan program called the BIL / CSBF program, monitored by Industry Canada, and administered by Canadian banks under the auspices and watch of the federal program.

Is the BIL a great program? We let our clients be the ultimate judge, but in our humble opinion it provides, bar none, the best finance options for a huge amount of the Canadian franchise industry. The bottom line on the program? Simple. Great rates, terms and flexible structure, and are you ready, a limited personal guarantee. Even the big boys in business in Canada cannot often escape that one!

When clients ask us for some basic key tips and advice on dealing with a franchise lender, or even isolating who these lenders are we always revert back to BOY SCOUT MOTTO 101 - BE PREPARED! Being prepared is simple, but requires a razor sharp focus on having a crisp business plan in place, some financial projections that guess what, make sense! It should be a document that covers your experience, highlights your purchase, and most importantly, shows how you will succeed financially - i.e. pay back the lenders based on the financing options you have chosen. Simple as that.

Are the BIL finance options the only method to finance a franchise? Definitely not, there are some independent finance options out there, and in many cases we supplement the overall financing plan with equipment loans and working capital financing, which also has to be addressed early on in your planning.

If you are committed to purchasing a franchise you need clear guidance and assistance on financing a franchise successfully. You don’t get a lot of chances to do things right in the world of finance, borrowing, etc. Speak to a trusted, credible and experienced Canadian business financing advisor to ensure you maximize those finance options to your benefit.

P.S. Good luck in your new role as a Canadian entrepreneur.