Our blog highlights Canadian Business Financing solutions via receivable finance , equipment finance, working capital financing, asset based lending, business acquisition financing,franchise finance, and tax credit monetization via SRED and Film Tax Credits. Our goal is to educate and assist Canadian businesses with their financing needs. You Are Looking For Canadian Business Financing! Welcome to 7 Park Avenue Financial Call Now ! - Direct Line - 416 319 5769
WELCOME !
In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.
Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.
Friday, May 15, 2015
Start Up Capital In Canada : Startup Business Funding For Your Big Idea
Startup Business Funding Shouldn’t Be A Flip Of the Coin
OVERVIEW – Information on the startup business funding process in Canada . What types of start up capital are needed and how are they accessed
Startup business funding in Canada and the decisions you make in start up capital choices shouldn't be ' flip of the coin ' type decisions. It's at this time that entrepreneurs wish their financing options could move at ' cosmic speed', but they rarely do. Careful review of your finance options and a thought out strategy are key. Let's dig in.
At the time you're starting to work on funding for your business the business owner/ manager is probably well past the ' big idea ' stage and is starting to explore the right options to finance the business. Now it's all about the type of financing you need as well as the rates and terms that come with that finance. Today's low rate environment is conducive to financing you can afford, and even alternate forms of ' non traditional' finance have come down in cost.
So things should be easy, right? Not quite , as traditional ' go to ' solutions for beginning a business aren't often' user friendly ' to the entrepreneurial stage of a business . Complicating things is the fact that different types of financing are needed for your business - and without expert guidance a chance for failure looms.
So what are the different types of financing often needed at the start up phase and how are they best implemented?
Types of finance solutions required include:
Working Capital / Cash Flow Solutions:
Seasonal/bulge type financing needs:
Business Credit Lines
Fixed asset needs to purchase or replenish equipment / leaseholds, etc
Real Estate - rare in start up cases but occasionally required
Funding to purchase an existing business or franchise
Refinance needs for existing debt
Rarely does ‘ Government ' come into the entrepreneurs finance strategy in starting a business, but two well used programs by thousands of entrepreneurs each year are worth mentioning . They include the Government Small Business Guaranteed Loan, as well as the refundable cash credit program under the SR&ED program for those firms that might have a research aspect to their business.
While the Government SBL Small business loan maxes out at 350k it does come with solid competitive terms and structures.
Many business owners spend a lot of time (often wasted) in the search for equity or angel or Venture Capital. These forms are most often suited only to tech firms with explosive growth potential, and will of course require you to give up significant equity in your ' big idea'.
The key elements to achieving the financing you require often revolve around a solid business plan and realistic cash flow forecast. Here it's all about your homework and moving forward with financing in the right direction. A well thought out business plan will show lenders how you plan to crawl and then walk!
Types of financing that are well suited to business start up capital requirements include:
A/R Financing
Inventory Finance
Equipment Leasing
Working Capital Term Loans
Non Bank Asset Based Business Credit Lines
SR&ED Tax credit bridge loans
Sales/Royalty Financing
PO / Contract Financing
If you're looking to avoid ' flip of the coin' decisions in critical aspects of financing a start up and growth seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your startup business funding 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 . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN START UP BUSINESS FUNDING 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
Wednesday, November 6, 2013
Erasing The Challenge Of Start Up Capital Financing In Canada : Some Deep Learning On Business Loans
Pleading Innocent On Knowledge Of Start Up Financing Strategies?
OVERVIEW – Information on start up capital in Canada. Financing a new venture via business loans and other sources is a constant challenge for the Canadian entrepreneur
Start up capital in Canada often presents a combination of challenge and mystery when it comes to financing business loans in the early stages of a business. Are you pleading innocent on that subject? That doesnt need to be the case. Let's dig in.
Very few businesses in Canada can be started without financing of some sort. The wrong amount of capital is one of the major causes of business failure, especially when those sales don't materialize that were part of your revenue forecast.
So what is the exact amount of money needed to ensure the business will have a legitimate chance to flourish. In financial terms you want to be able to both identify (and then reach) your ' BREAKEVEN POINT’, which, simply speaking is the point where you're covering your expenses and profits are in sight.
By the way, we'll forgo talking too much about cash flow today, but we'll just point out that revenues and profits don't equal cash flow, but that's a subject for another day.
So, back to our quest for capital. Some key considerations for the owner/entrepreneur include:
What does the business plan identify as the need for opening capital on the balance sheet as well as ongoing working capital line of credit needs?
What amount of financing will come from you, the owner?
What assets are required- How will they be acquired (i.e. cash, financing, leasing?)
Are their possible partners in the venture, silent or otherwise?
Will the owner’s personal credit history impair the ability to get all the financing they need
One issue that will quickly come up if the entrepreneur is considering a partner, silent or otherwise , is the fact that giving up a lot of ownership in the business in such an early stage is a costly idea - and that assumes you've got a partner you like and can work with!
Proper debt financing, structured with finance that makes sense is a solid solution to maintaining your ownership equity and realizing future returns on your initial investment based on the growth and success of the business
Also, raising money from outside investors has a lot of potential legal obligations to it, many of which aren't often properly considered by the budding entrepreneur
Personal savings are a touchy subject when it comes to financing your business. Most business owners are reluctant to put up savings and their homes. . We also caution clients to not mix their personal and business credit lives to the extent they can.
So what exactly are the sources of capital for start ups in Canada?
They include:
Lease financing, which is available for start ups by the way
Government business loans - The SBL/CSBF loan can provide 350k of business capital to acquire assets, leaseholds, technology, etc - Key benefits = low personal guarantee, not outside collateral required, solid rates and terms , early pre-payment privileges, etc
Receivable financing
Monetizing your SR&ED tax credits if you’re using this program
Cash term loans from the government crown corporation bank
In exploring all those options you should know the lender/lenders will focus on your experience, the cash flow forecast, and your personal credit history
Don’t plead innocent on start up capital financing alternatives in Canada. Seek out and speak to a trusted, credible an experienced Canadian busines financing advisor who can assist you with business loans and asset monetization that makes sense for your startup 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 = Start Up Capital Financing Expertise in Canada
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
Stan Prokop