Do You Know Everything About Business Loan Interest Rates ?

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A Guide To Business Loan Interest Rates

Business loan interest rates bring out a variety of comments and emotions when we talk to our clients ! Naturally those emotions vary and their feelings seem to run deep!

There is a lot to consider when looking at a financing transaction and costs of funds in small business loans is certainly one of them. We're also quick to point out to our clients that in many cases ' access to capital ' is as important as ' cost of capital '.

No secret here that commercial lenders , Canadian banks included , look at the overall risk profile of a business. They have excellent ways of breaking that down ! In all fairness to underwriters though the risk scenarios are actually very objective and don't come with a lot of that emotion we've been talking about .

The key drivers of risk tend to be balance sheet quality, profitability, current debt structure, and that all important cash flow.

In many cases a company is simply growing more quickly than its current financing can handle - Financing must be rearranged to handle the new growth, and that new financing might well involve new forms of either traditional of commercial financing from options not previously considered by business owners.

What Are The Basic Forms Of Business Financing ?

Traditional and alternative solutions include:

Bank Term Loans & Business Credit Lines

Non bank asset based loans and business credit liens

A/R Financing

Inventory Financing

Purchase Order Finance

Tax Credit Financing ( SR&ED)

Equipment Leasing / Equipment Loans

Working Capital Loans ( Short Term / Long Term )

Commercial underwriters will look to both the past and future financial health of your business. In most cases, certainly in the small to medium sized business sector the personal credit history of owners will also be to some level scrutinized. Important to note that alternative lenders place much less focus than the banks on personal credit history of owners.

For example in equipment leasing a large emphasis is placed on the asset quality of equipment being financed.

We can make a broad statement that traditional financing offers the lowest interest rates to business clients.

The harsh reality though is that thousands of business either can't access enough bank capital, or in some cases can't qualify for any financing .

Therefore alternative financing, which comes at higher rates ( not always, but more often than not ) provides in many cases all the business capital your company needs.

The Best Way To Succeed with Business Loan Interest Rates

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success who can assist you in obtaining the most financing at rates commensurate with your needs and overall risk profile.




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 area 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.
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

Asset Based Lending In Canada : Heard About Canada’s Newest Business Line Of Credit Solution ?

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Keep Your Company Moving With An Asset Based Lending Operating Line Of Credit - Your Competitors Do !

OVERVIEW – Information on asset based lending as Canada’s newest form of business lending via an operating line of credit . Why this solution works for your firm

Asset based lending in Canada. Every business keeps an eye on its competitors - that's what business is about. You've been watching those competitors and it's quite disturbing .So what does the competition know about this new type of business operating line of credit? Let's dig in.

Ever wondered by some of your competition out there seems to be enjoying what seems like unlimited cash flow for their sales and growth and expansion.

We think we know the reason why, and it’s called asset based lending - 'ABL' for short .This type of business financing, relatively speaking is new to Canada and supercharges cash flow and liquidity.


Naturally our clients, being the conservative types they are wonder aloud about several key issues, as in:

What are the qualifications for this type of financing?

What is the min and max deal size - Spoiler alert - there's no max, but there's a min!

What are some of the costs of this type of financing?


Let's cover those issues off in an effort to ensure you understand the power of asset based lending and why this type of operating line of credit could be your savior in business financing.

Qualifications? Just one - Business assets! Otherwise asset based lending doesn't work. The asset based line of credit competes with the operating line of credit offered by Canadian chartered banks. It is provided by non bank institutions that are specialized in asset based lending.

But what about banks, ask our clients? Banks are specialized in financial statements! What we mean by that of course is simply that charted bank business lines of credit in Canada focus on overall financial statement quality - the key underpinnings are solid financial statements reflecting profit, equity, liquidity, and overall solid cash flow. It's great business credit, if you can get it.

On the other hand the asset based lender only wants to know one thing - well two actually, do you have assets and are they managed well. What are those assets - they tend to be receivables, inventory, and in some cases equipment and real estate.

These assets mentioned above secured an operating line of credit which is margined on a regular basis. What interests our clients is of course the margining of those assets, and asset based lending does that very well.

So how much can you borrow / draw down? Typical structures are 90% of receivables, 50-75% advances on inventory (yes you heard us correctly) and working capital financing provided on the appraised value of hard assets that are unencumbered - i.e. the real estate and equipment if you have them and need financing for them.

Facility sizes for asset based lending tend to start at 250k and above - otherwise the facility , if under that amount, tends to be a receivable financing facility , which by the way works quite nicely also . There really is no maximum amt you can borrow as long as your business assets back up the drawdown.

Circling back to our final client question - cost. We can make a general statement that if your deal size is significant, i.e. over 5m you can generally achieve rates that are comparable with the bank.

Facilities under that amount are more expensive than bank financing - but , guess what ,you get all the liquidity you need, which has its benefits are growing your business, turning your assets faster, enhancing relationships with suppliers, and taking on more business than you ever could before .

Looking for an operating line of credit -? ABL could be your solution - Speak to a trusted, credible and experienced Canadian business financing advisor today on this new form of financing your working capital.


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

Business Cash Flow Financing In Canada : Your Call Of Duty To Your Company ?

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Is Your Company Staying Afloat When It Comes To Business Cash Flow Needs & Financing Solutions You Require?

OVERVIEW – Information on cash flow financing solutions for Canadian companies . Your company needs cash flow for business growth and profits

Business cash flow needs have us all in agreement, right? We need it to stay afloat? That's much better than the sinking option!

These days business cash flow financing needs is pretty well right near the top of your worry pile. We're going to cover off measuring the problem, and fixing the problem via traditional and alternative finance solutions. Let's dig in.
Oh, and by the way, alternative is fast becoming traditional, but more about that later!

In talking to clients about business financing and business cash flow we always get the distinct impression they feel their business is unique - and that may be so but the truth of the matter is that the cash flow financing challenges you face are being faced by everyone else in and out of your industry.

You're forgiven for thinking your business cash flow financing challenges are unique, probably because of the mix. What do we mean by the mix? Simply that each h company and industry has difference levels of inventory, receivables, payables, all of which factor uniquely into the working capital challenge. That creates different challenges at different times.

In fact, whether you like it or not, about 80%, yes 80% of all you assets are in receivables, inventory, and to some extent prepaid. That's for most firms, unless perhaps you're in a service oriented business only.

Your ability to ' turnover' these assets is what makes your business successful, or not.

Each industry has different gross margins, and if you have great gross margins then you can withstand a bit less turnover that is required in inventory and receivables. If you are in a low gross margin business turnover is absolutely critical. And you measure that turnover by three key metrics, inventory turns, days sales outstanding or collection turnover, and finally days payable outstanding.

Turnover drives working capital and many business owners kind of know that, but more often than not aren't focusing on improving that turnover.

So, staying afloat. There are a number of cash flow financing solutions that allow you to address cash flow financing for your business. If it was a perfect world (apparently it's not) you would have all the liquidity you need from you bank, but bank financing is always a challenge for business, and in many cases inventory is not part of the financing mix that is available.


There are some great cash flow for business solutions available to help you succeed in Canadian business financing.
That includes:

Financing receivables

Business credit lines from banks or commercial asset based lending

SR&ED Tax Credit Financing

Working Capital Cash Term Loans

Sale Leaseback financing


Most business owners don't know they can access cash flow financing via the financing of Purchase Orders (p o' s) and contracts. They allow you to consider orders significantly higher than you could have ever handled in the past.
And, finally firms with relatively good financial standing can access unsecured cash flow working capital term loans via non bank lenders.
So what’s it all about. We think we have been fairly clear, and hope you agree. It's about understanding your cash flow financing challenges, measuring them via the turnover of working capital accounts, and finally, accessing any one of the number of solutions we have provided.

Speak to a trusted, credible and experienced Canadian business financing advisor as to what makes sense for your firm.

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

Equipment Lease Companies In Canada : Inside The Hunt For Lease Financing Solutions For New & Used Equipt Acquisition

Ready To Save Save Thousands?

Here’s How When Utilizing Lease Financing & Equipment Finance Strategies

OVERVIEW – Information on solutions offered by equipment lease companies in Canada. Lease financing solutions , structured properly can save your firm thousands of dollars when you’re acquiring new or used assets

Lease financing solutions help resolve the financial conflict that comes about when your firm wrestles with the balancing act that comes out of acquiring new or used assets. But how does the owner/financial mgr know how to manage this process, much less locate the best financing company to do business with? The maze of what is known as equipment financing in Canada. We've got answers, so let's dig in!

When business folks think of ' saving '... it's really simply the act of managing a resource such as your capital and putting it to work in the best manner

But do you have to give up something to get a solid equipment financing approval with a structure that makes sense to your company. We don't think so, and we will show you how to navigate, successfully!
Top experts remind us that the best way to be successful in achieving the benefits that lease financing bring to the table is to simply ' visualize ' them. More often than not in lease financing you are focusing on getting a return on investment on your acquisition, and structuring it financially in a way that makes sense.

Can you, as we maintain, save thousands of dollars on an equipment lease when you ' do it right'? We believe you can. But first you have to focus on ‘why’ you’re financing the equipment and why certain lease companies in Canada may or may not be your best bet when you finance.

You finance equipment for some very basic reasons - lets cover them off... and we get rid of the most boring one first, accounting! The accounting treatment of a lease is very important and often misunderstood or not properly address when we discuss the issue with clients. For instance, if you can keep the lease off balance sheet you have just delivered a greater return on asset value to the owners or shareholders of your firm. That's a key measurement used by owners, lenders and investors when they look at your firm.

If you firm are capital driven, i.e. asset intensive, meaning you need lots of capital to run your business then structuring the right type of lease will have immeasurable positive effect on your performance and operating ratios.
Many operating lenders structure your credit agreements around your ratios, and properly handled and accounted for leases can be a real positive in this regard.
Financial and cash flow reasons also drive business behavior when lease financing in Canada. It's all about:

Working Capital Preservation!

Even negotiating a lower down payment or a higher balloon payment at the end of your lease can save you many thousands of dollars, depending on the size of your transaction. Those savings can be re invested into the company to generate further sales and profits.

Have you made the mistake of acquiring technology on a lease and then having to write down the book value of the lease half way through the transaction when you have just discovered, surprise, surprise! That your technology is now obsolete!
Matching the tem of the lease with the useful economic life of the lease can save you thousands in potential equipment write downs in the technology area - think computer investments, telecom systems, etc.

We hate it, but most of our clients are focused on only one thing, which is the proverbial lease rate. Unfortunately equipment lease companies in Canada know this and can do a real number on your firm when it comes to camouflaging the true rate in a lease - this is done by quoting you payments calculated in arrears, getting first and last payments in advance, increasing the size of a security deposit, or charging you per diem rates for project type financing when leasing is required.

Got all the time in the world? Then investigate every nuance of Canadian lease finance and try and address all of those issues and strategies.

A better answer? Speak to a trusted, credible and experienced Canadian business financing advisor who will structure the right lease that focuses on benefits that are real to your firm, saving you thousands in the process. That's a solid plan to save money!


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 '





Stan Prokop

Business Line Of Credit Strategy Required? Check Out Asset Based Lending

The Dirty Little Secret Your Banker Won’t Tell You About Asset Based Lending As A Business Line Of Credit Alternative

OVERVIEW – Information on a business line of credit facility known as ' asset based lending ' - Check out this Canadian business financing solution for you cash flow and sales growth needs

A business line of credit alternative comes with a dirty little secret. That secret? Canadian banks aren't the only ones to offer full blow credit lines that allow you to margin receivables, inventory, equipment, and even purchase orders! That solution by the way is called ' asset based lending'.

Can you blame someone for not telling you about a good thing? No surprise then that asset based lending is the dirty little secret in asset finance that that bankers in Canada don't necessarily want to let you know about.

So we're sharing that secret with you and touch on why it's such a powerful non bank financing strategy. Let's dig in.


Understanding why asset based financing is so different requires the need to understand what we are comparing it against. The comparison is of course an operating line of credit with a Canadian chartered bank. They are great, low cost, and run smoothly on a daily basis. If... and we repeat if... you can get one and get it increased as you need it.

Your ability to access a business line of credit with the bank focuses in on everything you probably feel isn't necessary. You have assets; you have growth, so what’s the problem. The chartered banks, in their wisdom allocate these lines of credit based on yes... the assets... but as importantly ratios, covenants, personal guarantees and outside collateral.

Nobody does a better job and at the lowest cost than our Canadian banks. They do that because they are lending you my money which is on deposit at their bank. So all power to safe lending practices, and that's why Canadian banks are some of the strongest in the world.

That brings us back to: asset based lending in Canada and why this type of asset finance is a powerful working strategy. And could it be simpler. Not really. It focuses on the two things you have always had... assets and growth potential for sales and profits.

Asset based lending is the ability of your firm to borrow, daily, as you need it , against receivables, inventory, as well as equipment and real estate if they factor into the picture . It supports your business credit needs, and does not, we repeat, does not overly focus on the bank requirements we mentioned.

Dirty little secret # 2 - Some of the Canadian banks actually have small boutique divisions of asset based lending! In our experience these divisions don't communicate properly with regular commercial bank divisions around what their offering is- that’s just our opinion.

So who actually offers this type of asset based lending. In Canada it's a relatively small handful of firms, some of which are U.S. based, and who have a tremendous expertise on the things you already have, inventory, receivables, and purchase orders and contracts.

Asset finance can cost the same as the chartered bank offering, in ,many cases it costs a bit or a lot more, depending on the size of your transaction .A business line of credit via an asset based line of credit generally starts at 250k and goes up to anywhere up to 50 Million or more!.

Accessing and navigating the maze of this boutique financing is difficult for the Canadian business owner and financial manager. The solution? Speak to a trusted, credible and experienced Canadian business financing advisor on why asset based lending is the secret you want to know more about.

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 '



Stan Prokop

Working Capital Financing In Canada - Yes You Can When It Comes To Successfully Accessing Business Lending Solutions

Working Capital and Business Lending in Canada Without the Voodoo!

OVERVIEW – Information on alternatives to working capital financing needs in Canada. Accessing the right business lending improves your firms success in growing sales and profits

Business lending in Canada . Is it all just voodoo? We don't think so, and there are solutions you can investigate to achieve maximum working capital & cash flow financing. It's time to get your business on track - so let's dig in.

There seems to a lot of ' optimism ' in small and medium sized businesses - we hear and read about that every day. But it's tough to sift through all the smoke and mirrors, dare we call it voodoo? and get a sense of where working capital and business lending is at here in Canada.

Optimistic? Most business owners & financial mgrs these days are in fact bullish about their businesses. In some cases though external industry and competitive and economic issues have some folks hanging on for life!

If you are forecasting and planning your cash flow needs, say on a 12 month basis your biggest challenge is often how you do get that liquidity squeezed out of receivables, inventory, and purchase orders and contracts. That has been and still is the real challenge - it's all about that cash flow is king guy!

When looking at your cash flow and financing needs you need to focus in on several key issues and determine how they fit together - typically those issues your ability to collect your receivables and how you are financing them, what your sale growth is going to be, and what type of longer term capital do you need for things like equipment, real estate, etc. Naturally all that has to be benchmarked against how you are currently financing your company.

Looking at new equipment while at the same time conserving working capital? In certain cases you might have to spend a considerable amt. on new assets to keep up with the competition. That's where equipment/lease financing is key to minimizing cash outlay while keeping your asset needs up to speed. Typically new assets help grow sales and profits.

There are great solutions for working capital via creative business lending in Canada. When we meet with clients they typically are looking for one solution, the ' holy grail' so to speak. In reality we show them that a number of solutions, possibly combined, can get you where you want to be in Canadian business financing.

Those solutions include receivable financing. Heard about factoring but not sure you like how it works... then consider confidential invoice financing... allowing you to bill and collect your own receivables.
Don't also forget to investigate two sources of govt financing - One is the Canada Small Business Guaranteed Loan program, which finances a combo of equipment or leasehold needs. Those companies investing in R&D should take advantage of SR&ED financing. That allows you to monetize your SR ED claim, without waiting for the federal and provincial governments to cut your cheque.

Have contracts upcoming, worried about financing them. Investigate purchase order and inventory financing... despite the myth it really is available!

Finally, as an alternative to traditional bank financing consider an asset based lending facility... it combines the power of receivables, inventory and equipment... with your firm borrowing against those assets on a daily basis as you need the working capital . It grows automatically as you grow sales.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash and loan 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 '



Stan Prokop