Eliminate Commercial Finance Pressures With An Asset Based Lender

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Information for Canadian business owners and financial managers around a financing mechanism to solve for commercial finance pressures. Why an asset based lender might be your Canadian business financing solution.

Do commercial finance solutions seem out of reach - want a simple solution? Go visit a Canadian chartered bank and get all the business credit you need! Unrealistic... maybe, maybe not, but one sure fire solution for your problems might be an asset based lender.

For many years now the non bank asset based lenders have been working with firms such as yours on credit facilities that fit the real world need of your company when it comes to inventory, receivables, equipment and real estate.

Canadian business owners and financial managers are probably asking themselves why they haven't heard of this before - we'll hit you with another shocker, some of the Canadian banks even have internal divisions of asset based lenders that compete with their regular commercial banking business!

Anyway, the bottom line is that this Canadian business financing solution might be your ultimate cash flow and working capital solution.

For the uninformed asset based lending is essentially a revolving line of credit which provides you with working capital, cash flow to cover your operating expenses and growth needs. Why is it different then from a typical bank type operating loan? Simply because there is only one focus, the assets. And because the asset based lender is a specialist in commercial finance and the value of your assets you ability to draw on those assets intensifies greatly - in many cases you will obtain 50-100% more leverage on your current assets than you ever have before.

Again, why is this so different - its because the focus is on your personal credit, your company's current or past challenges... its solely on, you guessed it..' the assets'!

In certain cases even a purchase order financing type facility can be put in place, and more often than not the asset based lender will accommodate what we term as ' bulges' or unusual temporary needs of your business based on seasonal cash flow, large new orders or contracts, etc.

As a business owner we think you can see that the total focus now seems to be on your future sales ability and the overall bench strength of your assets. It certainly is not untypical to receive 90% financing on receivables and 50% or often more on your inventory as ongoing advances for your cash flow needs. We also tell clients that unencumbered equipment can be factored into the facility also, so you in effect have a fixed asset that provides you with working capital. That's creative financing!

Clients always asked what the approval criteria are - the truth is that the criteria that an asset based lender requires are significantly less demanding than those imposed by bank, the latter focusing on rations, covenants, external collateral, strength of persona guarantees, and on it goes.

Commercial finance made easy is a great by line for an asset based line of credit. After a standard business financing application and submission of back up date which would include aged receivable, inventory listing, equipment list, recent financial statements, etc you would typically receive an expression of interest. After initial due diligence on your overall asset size and quality typical security documentation and registration takes a couple of weeks.

Speak to a trusted, credible, and experience Canadian business financing advisor who can provide you with clarity on cost, process, and most importantly, the benefits of an asset based line of credit or working capital facility.

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 .


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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing With The Intelligent Use Of Experience '

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

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

Stan Prokop















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


Article Source: http://EzineArticles.com/5405332

Everything You Need to Know in Negotiating a Term Loan

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The article provides insights as to criteria used by banks and other finance firms in the negotiation of customer term loans. The focus is on 'be prepared'.

Most business owners and financial managers know the story - the bank has the money, you need it. Term loans can be a tough negotiation for any business owner. Part of that is simply because the final conditions imposed upon the bank can be somewhat restrictive.

As simple as it may seem, the business owner has to think like the banker - that allows one to reverse the negotiation stance to some degree. Also, it's all about 'strategy'.

We would point out also at the outset that there are a number of banks, and an equally larger number of independent finance firms that offer term loans. The business owner should ensure he is aware of the market players, and who offers what. The goal tends to always be the same though - get the largest loan at the best rate. Not easy to achieve!

Business people as we have said, should have a solid strategy in the entire process, and believe me it's a process.

Borrowers can benefit by doing research into the banks current market and objectives in commercial finance. There will be issues and objections raised by the bank on the owners submission - they should be dealt with in a manner that keeps the loan submission positive in nature. Thousands of books are written on the art of negotiation, and no business owner can expect to reasonably get the full amount with all terms that he or she asked for.

Term loans are generally for long term assets. They are paid by future cash flows and earnings. That bring two bear two key source of information that should be properly prepared - what has the business done financially, and what has it he potential to achieve - i.e. a forecast.

Banks focus on cash flow - so they will want to carefully look at what the risk is to those future cash flows. Business people should be prepared to talk thoroughly about their own particular industry, many industries are currently out of favor - example: automotive; many are sought and in favor: 'Green' industries - (solar, et al).

The owner should anticipate what risks the bank or other lender will perceive in their industry - they should be prepared to talk to those risks. Owners should also remember that although they need this term loan now for this asset, that the bank will also want to look into what else they might need in the future, which might have the ability to restrict the cash flow somewhat.

Unfortunately more often than not the lender looks to historical cash flow to reflect future cash flow - therefore is a company has lots of changes in sales and profits over the years the why's and wherefores around these need to be discussed and presented.

While the focus is definitely on cash flow the balance sheet will definitely come under scrutiny. Weaknesses in the balance sheet need to be tabled and discussed.

Banks love 'ratios'. We have called them 'number relationships' in previous articles.

It is highly recommended that the business owner review and understand some of those 'ratios 'which will come under scrutiny. Typically those are liquidity, operating, and fixed asset coverage ratios.

In summary, all banks and other finance firms have very similar and basic analysis models around term loans - they involve industry and financial statement analysis, focusing as much on the past and future as the present. It behooves business owners and financial managers to understand some of those metrics used by banker, which should, in the long run, limit loan restrictions and get the business owner the capital he or she needs.


7 Park Avenue Financial :

http://www.7parkavenuefinancial.com


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


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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing With The Intelligent Use Of Experience '

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

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

Stan Prokop






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


Article Source: http://EzineArticles.com/3658324

Are You Eligible For The Canadian Government Small Business Loan

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Information on the 'SBL ' - commonly know as the government small business loan. This program offers some of the best rates, terms and structures for small business financing needs in Canada

Many business owners in Canada in the SME sector aren't fully aware that they are already qualified to take advantage of the SBL loan program in Canada. The Government Small Business Loan is an initiative of the federal government in Canada that helps thousands ( in fact over 7000+ in 2010 ) of Canadian businesses to securing business financing on terms that rival those of the big boys when it comes to attractive rates, and structures.

There are many misconceptions about the program and that is why we feel quite sure that you may already qualify and probably just didn't know it! Let's examine some of these very basic and reasonable qualifications of the program, and let's help you maximize the benefits already utilized by thousands of firms just like yours.

'Government ' isn't necessarily the most popular word at any time when it comes to your day to day business. However, that's misconception number 1, simply that this loan program is in fact operated in the private sector, by Canadian banks, not the government directly. So where does the government come in then?, ask clients. Simply that they are in fact guaranteeing the majority of the loan. Actual funding is done through your bank.

The challenge we work through with on a daily basis is that not all banks or bank employees rather are always familiar with the details of the program. So many clients who are keenly interested in availing themselves of this financing in fact get mixed signals on how the program operates, its benefits, and mostly importantly, how to start the process and get approved quickly!

Let's cover off some of the basic facts. To be eligible for the program your Canadian business, either incorporated or a proprietorship, must have revenues not exceeding 5 Million dollars. Start ups are eligible for the program also.

Most Canadian business owners who start from scratch are keenly aware of the financial challenges that are faced when financing a start up, or a franchise. That's really the spirit of the Canadian government small business loan program... it's providing financing to businesses and business owners who otherwise might not be able to acquire the financing they need.

Owners of the business must have reasonable good credit... in terms of the credit bureau beacon score that all Canadians possess that score should be in the 650+ range. Contrary to the belief of some this is not financing for people with poor credit.

What does the SBL government small business loan finance? That's another area of what seems constant confusion when we talk to clients. In fact the program only finances equipment and leaseholds. Software by the way is included in the equipment category. We meet many clients that are under a major misconception on SBL's - namely that the financing is cash and working capital. It absolutely is not!

How can any business owner in Canada not want to take advantage of financing that can help build and grow their business? Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in being successful and unlocking the benefits of the government small business loan program. That's SBL for short!



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

Article Source: http://EzineArticles.com/6596730

Small Business Loans In Canada : The Secret Language Of The SBL Loan

The Problem With Govt Loans Isn’t What You Think


OVERVIEW – Information on government loans in Canada . What is the real secret to achieving success with the SBL Small Business Loan?






Small business loans in Canada , via the Govt SBL loan might not be what you think. The problem with achieving financing success with the program is really about understanding the secret language of the small business loan. Let's dig in.

No loan financing in the SME sector (Small to Medium Enterprise) gets more attention than SBL small business loan. It provides real capital, in fact billions of dollars a year, to close to 8000 new and existing businesses in Canada in the Canadian marketplace.

Capital in the program is used to either start a business (including a franchise by the way), and to grow and expand a company. One aspect of the ' secret language ' of the program simply knows what the loan can be used for. It's only for equipment, leasehold improvements, and real estate. By the way that ' equipment ‘category covers technology such as computers, telecom equip and application software.

Although the total program size is dwarfed by big business in Canada it still is a key component of the Canadian business finance landscape.

Another aspect of the ' secret language ' of the SBL loan is the fact that business owners and entrepreneurs need to understand that it is a real, and viable alternative to business capital when they cant access it from the bank.

Looking for some irony

in your business life? Well here is some, while the Canadian chartered banks wont typically lend you funds to start a new business or franchise without personal collateral they are happy to do that when the Govt backs up your loan . By the way... we're not complaining... we're ' just sayin' ...!

How does the business owner/entrepreneur ' decode' the approval process of SBL language? It's not as hard as you think. You should be able to demonstrate your business experience, provide a business plan and cash flow that make sense (and show repayment ability), and be able to put a minimum of 10% down as your equity injection in the business.

Yes of course government loans in Canada are debt - they are in fact structured as term loans on your balance sheet - but its good debt when you're improving your business, acquiring assets, and generating profits. By the way, the actual rates and loan structures of the small business loan are simply very attractive, including the limited (and dreaded) personal guarantee.

Government loans are a great finance tool when you can build and grow your sales.

A lot of business failures simply revolve around not enough revenue via their marketing plan.









Consider Government loans in Canada, particularly the SBL small business loan as a way to get a new or existing business to the next level. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success in helping you achieve SBL loan approval/success.



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
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

7 Park Avenue Financial = Govt SBL Loan Expertise

Stan Prokop

How To Get Government Loans In Canada . The Small Business Loan Demystified

What’s So Top Secret About Gov’t Business Loans ?


OVERVIEW – Information on government loans in Canada . How does the business owner and entrepreneur secure a Small Business Loan – aka the ‘ SBL’



Government Loans in Canada? The Canada Small Business loan program is an ongoing major initiative by the Canadian Federal government to provide capital financing to new and existing businesses that meet the criteria of the program.


The program is very popular in Canada, primarily because it a business loan that the business owner may not have been able to achieve elsewhere.


Many business owners and financial managers either aren't aware of the program, or, as is more often the case, don't understand the requirements of the program and how to ensure a proper approval in a timely manner. Naturally, rightfully or wrongfully so, there exists a perception that any government type funding program is extremely paperwork and administratively burdening to the business.


There are several key basics that allow a business to ensure that they are in fact qualified to pursue the program. Those basics are as follows:



1. The company must be a private corporation - public firms are not eligible


2. The company must be under 5 Million dollars in revenue


3. The loan must ' flow through' a registered administrator of the program - In Canada this is typically a chartered bank - this is one of the key perceptions of the program, in that the banks ' administer ' the program, but they don't own it


4. Only three major asset classes are covered under financing in the program - they are as follows: Equipment, Leaseholds, and Real Estate

The government, as we have shown, doesn't lend the funds, but it guarantees the funds to the bank


Almost every type of business in Canada can qualify for the loan program.The challenge of course, as always, is ' How does my firm get approved?!'

If a business owner or manager feels they are not capable of providing a proper submission to the bank it is highly recommended that they used the services of a trusted financing advisor or intermediary.


We cannot overemphasis that the key to dealing with the government and the bank is that it is critically important to have all the necessary paperwork in a properly submitted and, hopefully, professional package.


What does that ' paperwork ' include? Companies should ensure the package reflects the current financial position of the company, ( START UPS WELCOME !) a proper business plan and or executive summary, and miscellaneous personal data surrounding the bank and government requirements - i.e. statement of net worth, proof of no tax arrears, etc.


Most importantly is the need to position a proper purpose of the loan re dollars, timing, use of funds, etc


Most business owners don't realize the true benefit of doing everything once, the right way! In lending and loan approval that is important. You can re- submit and renegotiate, but that is not an optimal strategy for business financing success.


In summary, the bottom line is ' do it once, right '. Looking for expertise and assistance? Seek a trusted, credible and experienced business financing advisor with credentials in this area.




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 = Government Small Business Loan 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

Small Business Loan Financing In Canada . Government SBL Loans Or Other Financing Challenges . We Know Why .

Are Your Canadian Business Financing Challenges In Derecho Mode?

OVERVIEW – .Information on small business loan financing in Canada . Whether it’s the government SBL loan or any type of commercial financing mistakes can be made!


Small business loan financing in Canada . Do your financing challenges feel like a constant ' Derecho'? That's the term for a ' massive system of storms' and that's the feeling many clients we talk to seem to be experiencing - a lot of turbulence with potential devastating impacts - to financial liquidity and business survival!

But putting the weather analogy aside we are more convinced than ever that it's simply quality information and guidance that Canadian business owners and managers want when it comes to business finance solutions that they need, and make sense. Let's dig in.

No one disagrees that the searching for finance solutions isn’t stressful, or time consuming. That why professional, experienced advice is worth its weight in gold we think.

Case in point. The other day we caught an article in a Canadian publication entitled ‘5 Tips For Getting a Small Business Loan '. Although targeted at Canadian companies it was clear that the writer was U.S. based. Even more troubling... did we disagree with one of her points? Absolutely not - we disagreed with all 5!

Let's take a look at those .Oh and by the way, we will be putting those in the context of the Canadian business owner, with all due respect to our U.S. friends.

1. The article stated that banks are cautious on' new ventures '. While we agree that start up financing on any scale is a challenge there are numerous solutions, if applied properly that satisfy the need of the owner. These might include Government SBL loans, which is bar none, the best financing in our opinion for any start up. Other forms of very successful ' new venture ' financing include A/R financing, tax credit monetization, equipment finance, and PO/Supply chain solutions.

2. The article then went on to say you need the right type of bank. Clearly that's a U.S. oriented comment, where it’s incumbent on the borrower to also check out his bank for solvency also! That isn’t the case in Canada. So... what is then the ' right' bank for you. Our reality - it’s the banker and not the bank, so aligning yourself with an experienced credible commercial banker does not require any particular allegiance to any one bank. Focus instead on people, not pillars.

3. Are they kidding?! Unfortunately they weren’t. The article stated that business plan and proposes should be revenue oriented. We'll give that writer a bit of credit for referring to cash flows also.

4. Next point - long term growth. The article stated that you should be focusing on future financing needs also. While there is a small amount of verity in that comment the reality is that business plans and financing for current needs is complicated enough a process without bring in future financing needs which raise more questions than answers.

5. Last point. The article said that plans and financials should be crafted to appeal to a wide variety of banks, investors, capital providers, etc. Our thoughts - stay focused, not wide. Prepare documents on financials that focus on the current need and clear repayment.

We are hereby forgiving Canadian business owners /financial managers for feeling overwhelmed and confused with misinformation around proper requisites and planning for solutions needed. Align yourself with a trusted, credible and experienced Canadian business financing advisor who can assist you in taking your finance challenges out of Derecho mode!

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 SMALL BUSINESS LOAN FINANCING




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

Here’s 10 Answers And Tips For Government Guaranteed Loans In Canada . The SBL Small Business Loan .. Works!

Government guaranteed loans in Canada seem to present a bit of confusion to many clients and business owners we talk to. The gov’t small business
Loan, commonly called the 'SBL ' is a solid financing mechanism, if, and only if, you understand the requirements and benefits of the program.

If we have to summarize where things go wrong in the program it pretty well comes down to key issues as follows:

What amount of equity does the borrower have to put into the deal?

How does the credit status of the borrower affect the loan approval?

What documentation is needed for the program?

Does your business or venture have to be profitable?

Where does the government actually fit into the loan process - P.S. It doesn't !

Is the program the same everywhere?


Lets highlight 10 key questions we're often asked and we’re e quite sure the above issues will be covered off nicely.

1. Is the loan in anyway a grant? Absolutely, positively not! While there are various ' grant ' programs in the Canadian business environment, the SBL loan program is a term loan, fully repayable. The concept of ' free money ' is titillating, but that’s certainly not what we're talking about today.

2. What exactly is ' SMALL ' when it comes to the program? Small in fact means for existing businesses or start ups that your revenues can't exceed, or be projected to exceed 5 Million dollars. Simple as that.

3. How does owner personal credit factor into the program? The answer is that the borrower, i.e. the owner or owners of the business must have reasonable personal credit history. Canadian credit bureaus rate us on a score basis, and in the case of SBL loans a score of 650+ is recommended.

4. What is required in a loan submission? From a documentation point of view you need a business plan or strong executive summary, and some solid financial projections. For non finance types these can easily be prepared by your accountant or an experienced Canadian business financing advisor.

5. Where in Ottawa do you apply? The answer is, you don’t. The program is underwritten by Ottawa, actually INDUSTRY CANADA, but the program is administered on a daily basis by Canada's banks. IF YOU CAN FIND A BANKER WHO KNOWS AND UNDERSTANDS THE PROGRAM!

6. How does the guarantee work? The loan is substantially guaranteed by the government, to your bank, and allows Canadian business owners and financial managers to access loans and financing they otherwise might not qualify for.

7. How does the program work? That’s a bit of an all encompassing question, but the quick answer is that you submit and work with a local banker to complete your transaction, and the loan is funded through your business operating account. The guarantee owner’s sign for on these loans is 25%, which is clearly a highlight and major benefit of the program.

8. What collateral is required? The collateral of the transaction is essentially what you're borrowing against, which is typically equipment, computers, software, and leasehold improvements. You can actually buy real estate under the program, but that's a bit rare in general.

9. What’s my rate? That’s the typical client question, and the good news is that the program has great rates for start up, young, or small firms. The rate is 3% over prime, which, as stated, rivals that of larger corporations in many cases.

10. What’s the repayment term? Typically its 5-7 years, and no prepayment penalties kick in if your loan is properly structured.


Who can help you achieve success under the government small business loan program? Your accountant or a Canadian business financing advisor can work with you to provide the right package, ensure that you qualify, and utilized industry and program knowledge to guarantee business financing success.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your needs around Canadian government guaranteed loans.

7 PARK AVENUE FINANCIAL
CANADIAN SMALL BUSINESS LOAN FINANCING EXPERTISE




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/government_guaranteed_loans_small_business_loan.html

Don’t Fail to Investigate Canada Government Grants and Loans – The Small Business Loan Program Works!

If you are either a start up (pre revenue) firm or an established small or medium (we’ll define medium a bit later) sized company in Canada you should be investigating, and using the Government of Canada small business loan program.

Why? We will give you 4 reasons - Great terms, rates, structures and qualification criteria. Could you ask for anything better in Canadian business financing - we don’t think so and we have been a fan of the program now for years.

Many clients or callers requesting information on the program (the formal name is BIL / CSBF) often utilize the terms ' grants ' when requesting info on the program. The BIL /CSBF program is not a grant. It is a special business financing program sponsored by Industry Canada (those good folks in Ottawa ....). The program was developed by the government to assist the thousands of firms who might not qualify for what the finance folks call ' traditional financing ' - aka ' the bank!”.

We also promised you we would qualify the term ' medium sized firm ' when it comes to qualifying for the program .In the case of the Small Business loan program any firm under 5 Million dollars in either actual or projected revenue still qualifies for the program . Naturally your firm has to be privately owned, and be considered a ' for profit ' business. (We’re all ' for profit ‘!)

As we said, many customers call looking for ' grants ' - we're all for free grant money also - we are sure it exists out there somewhere, we just have never found it. Actually, let’s clarify that, two great programs, S R ED, and film tax credits are non repayable credits you can easily apply for if you qualify for either of those credits .Those two programs are a discussion for another day though.

Typical client questions always include - how much can we get or apply for??... What are the rates and terms? and whats the process involved ? Get ready for a short, simply and basic primer in all those three areas!

The Canada government small business loan has a maximum cap of 350,000.00 dollars. However, if you chose to use this financing for real estate you can actually receive 500k. We note that for many years the program had a cap of 250k and during the global recession (2008-2009) the government raised the limit on the program.

Many firms who are either new or have challenges might think the rates and structures are onerous under the program. Exactly the opposite... financing is at only 3% over prime, and from a term perspective you can go from 5 - 7 years, we typically structure 5 years as a reasonable term.

Penalties to pay back if you're successful - There are none!!

There isn’t a day when we don’t spend time advising clients on what can be financed under the program... that’s where a lot of mis information exists. The program only covers equipment, leaseholds and real estate. We would add that software is included in the equipment category.

So who is using the program - Almost 8000 businesses did in 2010 - so you can be sure that the program works and is robust.

The greatest challenge around the program in our opinion has been the confusion on where and how to apply. We've completed transactions in a week and then heard from clients that they have spent months floundering on their processes in this type of financing. Speaking to a trusted, credible and experienced Canadian business financing advisor in the area of government small business loans will get you on the fast track to some of the best financing available in Canada today.




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.7parkavenuefinancial.com/canada_government_grants_loans_small_business_loan.html