Commercial Factoring And Receivable Financing Strategies in Canada

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Is Commercial Receivable Financing & Factoring the Rock Star Of Alternative Finance? We Think So & Here's Why!

Information on commercial factoring receivable financing in Canada. You need to know the cost and benefits of this type of alternative financing to augment cash flow & working capital needs

Canadian business owners and financial managers can be forgiven for getting confused when they hear about ‘commercial factoring ‘of accounts receivable as a financing strategy that is recommended for both growth and business financing survival. Part of this confusion comes simply from the fact that this relatively new business financing strategy goes under several names – those names include invoice discounting, receivable financing, etc. In reality they all of course are talking about the same financing strategy – which is the sale of your receivables for immediate cash to another party, generally a ‘factoring company ‘.

The sale of these accounts receivable causes two occurrences, a profit for the factoring company, (generally between 1-2%) and immediate cash for your firm, which is the seller and owner of the receivables your firm has generated.

In Canada we feel the main challenge for the acceptance of this strategy is the entire concept of who collects the receivable, i.e. your firm which sold the product or service, or the factoring company. The Canadian business marketplace has been somewhat slower to accept commercial factoring as a true traditional business financing strategy because of the optics of who collects the receivable. In years gone by it were only ‘financially troubled’ firms that utilized this strategy. That has clearly changed and factoring of various types is utilized by small start ups to some of Canada’s major corporations.

When we meet with clients who are considering a receivable financing working capital facility it is very easy to explain the immediate benefits - these of course include working capital and cash flow generation. However the type of facility you enter into, what firm you work with, and how this facility works on a day to day basis is really the essence of the key points that we focus on when a client contemplates this type of financing.

The ‘cost ‘of factoring should be a key discussion point in contemplation of such a financing. Unless you are a large already very credit worthy corporation your factoring costs will range from 1-2% per month. Factors that should take into account are the length of time that your customers take to pay yourself, and your ability to sustain the additional financing costs. There is a bottom line here, and that is simply hat you should have sufficient gross margin on your product or service that allows you to bear these additional costs.

Customers think of these costs as the ‘ interest rate ‘ on the transaction – this is really not valid because commercial factoring is not a debt financing per se, it is simply the liquidating of your receivables at an agreed upon discount . At the end of the day whether it’s perceived as a ‘ rate ‘ or a ‘ discount ‘ it still needs to be build into your profitability and cash flows budgets .

Is commercial factoring and receivable financing a recommended strategy? It is if you can immediately benefit from cash flow and working capital. It makes even more sense when you can utilized those funds (often received the same day as you invoice) to take advantages of supplier discounts and improved purchasing power. We have known some customers that have gained 100% cash flow benefits by immediate sale of their receivable, while at the same time utilizing those funds to reduce almost all of their discount factor fees. That’s true cash flow power.

Is there a bottom line? It’s simply that you should investigate commercial factoring, determine which benefits might work for you – while at the same time assessing costs and how the facility will work on a day to day basis. If it makes sense at that point work with a trusted, credible and experienced advisor to implement this relatively new cash flow solution for Canadian business .



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

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 .

' 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

Understanding Business Cash Flow

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The term ' cash flow ' is widely used and somewhat widely misinterpreted. Its a specialized term in business and has often confusing definitions. The most pure form is the cash flow statement for any firm. At its simplest its a ' cash in' and ' cash out' analysis. Key to this analysis though is the timing of the receipt of funds. Any good business cash flow statement or projection will show projected inflows and outflows over a period of time - usually annually.

We mentioned wide misinterpretation. That is because it is often confused with other accounting terms such as 'profits ', ' income ', and 'revenue'. Naturally real cash is the life blood of an business. We don't pay our bills with ' revenue'!.

So, yes, our firm makes things, we sell them, and eventually we receive payment. During that time we are paying out cash to employees, suppliers, and also waiting to get paid ourselves. We are only able to pay our bills as a business with real cash!

When businesses prepare a cash flow statement they list their monthly expenses, both fixed and estimated, and then focus on anticipating when customers will pay invoices, thereby generating cash. Naturally there has to be some solid work around any assumptions in that whole process - for example:

Are the projected sales going to be realized

Will the payments from those sales be made on time

How much can be drawn out of the business in the meantime

As most business owners who have borrowed already know this type of document is probably the most important one that the bank or finance company wants to see.

Business owners therefore need to properly understand the total ' cash flow cyccle ' That cycle consists of purchasing inventory, booking receivables around the sales that are made, and then collecting hose receivables. Simply right? Not really, the true challenge is in the following: ' TIMING'!

Many textbooks in finance have been written around the mis-timing of the cash flow cycle - where large and once great companies went bankrupt by misunderstanding the subject of our article.

Most lay people find it very difficult to comprehend that a company that is profitable can go bankrupt. As we have discovered that can absolutely happen as financial managers confuse profits from a sale from receipt of cash from a sale. If the cash pipe is ' blocked ' problems will occur!

In summary, any business owners or financial managers understanding of the business cycle and proper cash flow will add value to the success of the business from a financial perspective.

Stan Prokop is the owner of 7 Park Avenue Financial. The firm originates business financing for Canadian firms, and is a specialist in business financing and working capital and cash flow financing alternatives.

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

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

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 .

' 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/3519667

How To Effectively Use Canadian Lease Equipment Financing

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There's Reasons Why Equipment Leasing Works ? Here They Are !

Information on canadian equipment leasing and financing solutions in Canada. The ability to acquire equipment, technology and other assets is key to long term business success in todays competitive environment

Canadian equipment Financing has never been more critical to get in the current business environment. When speaking to Canadian business owners and financial managers they tell us that they want the ability to achieve asset acquisition for plant equipment, computers, and other fixed assets in an easy and reliable fashion. They also tell us they don’t want this type of financing to interfere with other financing they either have in place or are contemplating.


Canadian lease financing can deliver on all those customer needs. Naturally transactions come in all sizes, from 5k to Fifty Million dollars. If your transaction is smaller, generally fewer than 50k Canadian business owners are often pleased to find the simplicity of the financing. Why is that? It is simply because those computers we referenced above in our article also worked their way into the lease financing industry! Technology has made it very easy to process and application, verifies customer information, issue simplified documentation, and ensure all other miscellaneous processes are completed in a timely fashion. Canadian vendors are happy to see that when their customer finances a transaction they are paid promptly, thereby increasing their own revenues, cash flow, etc.

It clearly is a win win strategy for all parties, you as the customer, the lease firm, and your vendor or manufacturer.


Management time is everything in business today, and clients are pleased to hear that all those miscellaneous things they didn’t wan to worry about, (but are important nonetheless) are often taken care of in the lease transaction. That includes payment of the taxes, which is now spread out on a monthly basis, as well as often the installation, maintenance contract, etc.


On most occasions a first, or first and last deposit are required on your lease, but lets be honest and realize that is a very nominal cash outlay as opposed to laying out tens or hundreds of thousands of dollars for equipment purchases .


We spoke of your cash outlay –naturally this emphasizes another key feature of Canadian lease equipment financing, which is simply that your payments are very easily matched against your benefits of the asset acquisition – If your firm needs new IT ( information technology ) such as computers, telecom, etc , you clearly have now realized that the leading edge of technology and computer power seems to change every day .Therefore matching your equipment lease term and payments to your expected useful life of new personal computers or servers is a great financing strategy .


Do you have alternatives to acquire the equipment – of course you do. Leasing is never viewed as the panacea of Holy Grail of equipment and asset acquisition. But if you benchmark and compare the benefits of leasing against paying cash, or negotiating larger of new banking and term loan facilities some of the key benefits of leasing will become very attractive to the Canadian business owner very quickly.


So if your company requires lease and asset financing look beyond the way in which you may have acquired assets in the past and consider lease financing as a great alternative and complimentary strategy to your business and profit growth.

Speak to a trusted, experienced and credible advisor or firm who will ensure you understand your various lease financing options.




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

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 .

' 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

SR&ED Financing : The Doctor Will See You Now!

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SR&ED Financing ? Why ? Immediate Cash Flow For Your R&D Capital Recovery Refund Claim

Information on SR&ED financing in Canada. Understanding how your SR ED refund can be monetized and what the benefits are is key to maximizing your r&d capital invesment

SR&ED financing is an immediate financing strategy to convert your filed Canadian SR ED claim into working capital and cash flow for your business.

If your company needs additional cash flow the SR ED financing strategy is a great source of financing and working capital of an ' alternative' nature. Naturally Canadian business owners and financial managers can wait up to 18 months (sometimes longer?) for your non repayable SR ED refund, but if you need the capital you can access those funds now.

SR ED financing is absolutely a boutique, somewhat unknown type of financing in Canada. We recommend that you work with a trusted SR ED advisor who can both maximize your claim (usually 70% of the total value of your claim) and assist you in ensuring the claim can be financed in a relatively short period of time. In claims for our customers that process usually takes 2-3 weeks with your full co operation of course.

Almost everyone agrees that the SR ED grant, which, as noted, is non - repayable! is one of the best government assistance programs in Canada . In our firms opinion both the SR ED grant and the Canadian governments CSBF loan program are the two most clear and viable financing assistance strategies for Canadian businesses.

When we meet with customers to discuss their cash flow and working capital challenges customers always ask us what SR ED financing funds can be used for - the simple answer is any general corporate purpose. We also point out that your claim, in order to be financed, must demonstrate that you have no CRA (the old 'Revenue Canada ') arrears for any government super priorities such as source deductions, GST arrears, etc. We would point out thought that although your claim might not be able to be financed with those arrears in place that you still should file your claim for funding as the claim will reduce or eliminate your arrears, depending on how much is owing to CRA and the value of your filing.

In certain cases we work with customers to pay any of those government arrears out of the financing of the claim - that’s a good thing!

Business that finance SR ED claims clearly understand the value of the program - it gets your firm a significant refund in any research your firm does in products, processes, software, etc .

It is our understanding that over the last couple years the government has sent out cheques for 1.6 Billion dollars in funds for SR ED claims, so:

1. Why wouldn’t your firm consider filing a claim for your funding?

2. Why wouldn’t you consider a SR ED financing strategy for immediate funding of that claim?!

When we meet with customers and ask them what they will use the proceeds of the SR ED financing for they indicate that it will be for very basic working capital requirements - suppliers, payroll, further investment into their R&D processes, purchases of equipment, etc.

SR ED financing is typically in the 70% LTV range, by l t v we mean of course loan to value. That simply means that for every 100.00 of Sr Ed calim you can immediately access, on approval, 70.00 of your total claim. The balance is remitted to our firm once Ottawa and Ontario approve their respective parts of the claim. Naturally there are the financing costs which are typically taken out of that last 30% that is due your firm.

There is no real maximum on the amount of SR ED claim that you can finance, in our own experience claims are generally under one million dollars, but that is not a hard and fast rule.

We referenced working with a good Sr Ed financing advisor who can both maximize your cash out of the claim financing, and steer you through the process as well. In certain instances your bank might have a general security agreement on the claim, (even though they are not financing it?!) so a release is required from the bank, which is generally easy to obtain once we explain what we are trying to achieve.

Many firms ask us what the general criteria are for Sr Ed financing approval. It is essentially a standard business application process; however we clearly note that the emphasis is on the amount and quality of your claim, with significantly less reliance on your balance sheet and income statement. That is because the Sr Ed financing is secured by your actual Sr Ed filing - it’s as simple as that.

Naturally it helps if your overall business outlook is generally positive, or if you are on track to recovering from any setbacks such as a financial loss, or balance sheet issue, etc

Cash flow and working capital needs? Filing SR ED’s? Then consider your Sr Ed financing options!


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

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 .



' 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 Lines of Credit Canada

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Is This Type Of Business Credit Line The Future of Business Borrowing For Many Companies In Canada



Information on asset based lending lines of credit in Canada. These facilities are an alternative to bank credit lines and are used successfully by companies in every industry

Asset based lending in Canada is a solid financing alternative for firms that require financing for the traditional build up of accounts receivable and inventory that come with sales and revenue growth .

More and more Canadian firms who purchase product overseas or in the United States marketplace are finding of course that to achieve economics of scale in pricing and shipping they have to purchase in significantly larger quantities, and also allow for shipping time. And, even more critical is the questions of how to address the supplier’s payment request which often includes hefty deposits or full payment in advance.



Although established firms have access to operating liens of credit with Canadian chartered banks even these facilities often cannot provide the full financing resources that come with strong, explosive, or seasonal bulges in revenue growth.



Enter asset based lending, or the actual facility which is called an asset based line of credit. The simple definition and explanation is as follows – it is an operating or revolving line of credit facility that totally focuses on the assets of your firm, those being primarily inventory, receivables, and fixed assets such as equipment.



When your Canadian firm applies for a chartered bank line of credit there is a very strong focus on your operational metrics and your overall all balance sheet and income statement rations. A line of credit is set up with your bank that is very much related to your firms tangible equity, its debt load, historical cash flow, etc. ( Yes, we said historical cash flow! Which means that the banks focuses on how you have generated cash and profits in the past! That is little solace to the mfr, wholesales or distributor in Canada that needs cash flow now to fulfill order, contracts, etc.



The asset based line of credit places only a small reliance on those issues, what if focuses on instead is the true current value of your inventory, receivables and unencumbered equipment assets. Asset based lending specialists have a very strong sense and experience around the true liquidation values of your inventory , receivables, and fair market values of your equipment .

Therefore the final amount of the asset based line of credit you are approved for is often, almost 99% of the time, larger that a bank facility. That allows you to draw down immediately on the values of those assets, generated more cash flow. Many companies who have bank lines in Canada actually do not even have an inventory component in those facilities – so just the fact that you can now generate today cash flow out of inventory values is a huge cash flow benefit.



While asset based lending in the U.S. and, more recently in Canada was considered a non – traditional form of business financing it has clearly now entered the mainstream. You would be very surprised at the medium and large corporations in Canada that utilize this type of financing.



Different financing strategies achieve different benefits for each company. The main benefits of this type of financing facility are:

Easier to set up , get approved, and administer



Although facilities are set up with an initial cap the reality is that as your assets grow via increased sales the facility grows also – Why? Because, as we said, its asset based, not covenant or ratio based



Higher advance margins are place on receivables, usually 90%, and inventory, which in many cases hasn’t been or couldn’t be financed before is now immediately financeable



The facility usually always includes a/r and inventory , but more often than note has a fixed asset equipment or real estate component also



ABL facilities, which is the acronym these financings are known as, are specialized financings. They are an alternative to bank or traditional financing. They are becoming more popular everyday, and business owners are encouraged to speak to a specialist who is trusted, credible and experienced in this exciting new area of Canadian business financing.




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

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 .

' 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 Financing In Canada : Critical Deal Factors

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What's Up With Equipment Lease & Loan Strategies ? We've Got The Dirt!

Information on equipment leasing in Canada. Knowing the critical deal factors involving equipment leases and loans allows you to acquire assets in a cost efficient matter

Equipment Leasing and financing in Canada can seem complex to many Canadian business owners and financial managers in Canada.


Let’s share and discuss some of the absolute key things you need to focus on to know that your firm has a competitive deal and that you have received pricing and transaction flexibility commensurate with your needs and original business goals for this type of financing .



First, and foremost – pick your partner. There are tens and actually hundreds of small and large lease firms in Canada. Some are Canadian, some are foreign subsidiaries, and some are small, while others are larger than large – think Canadian banks as an example , as they play a large role in the industry and compete with independent commercial finance firms

If you have all the time in the world to stop your business and investigate various aspects of lease financing in Canada, and who your best partner firm might be, then by all means go ahead, we’re actually jealous! But if you don’t have that luxury simply speak to a trusted credible and experienced business financing and lease specialist to determine what firm most suits your needs re rates and structures and flexibility.



Secondly, we’re talking about equipment leases and equipment financing – but did you know that you are also required to know about the type of lease you want – either a lease to own, or what is termed an operating lease. In the case of an operating lease you are opting to use the equipment, and have no stated intention of owning it. However a properly structured operating lease will in fact give you the flexibility to return the equipment, upgrade it, or even purchase it for fair market value. You can now start to see some of the benefits hopefully of choosing to deal with an expert in this area of Canadian business financing.



Payments are another key issue in lease financing in Canada. You naturally want a competitive rate – the answer to that is very simple. If you properly demonstrate through your application that you have the ability to repay and that your firm needs the equipment to generate revenues and profits then quite simply you deserve and should get a good rate. Leasing rates in Canada range from prime plus one to in the high teens based on overall credit quality and asset that you are financing, plus the term of your lease.



Let’s look at a quick simple example of how you can save thousands of dollars by simply ensuring you have a competitive deal in place. Lets say you are buying some equipment for your manufacturing facility and that it costs 110,000.00 . Let’s assume you either wish to, or have been requested to put 10k down, so we’re financing 100,000.00. You estimate the equipment will last you 5 years. Your vendor is quoting you a rate of 9.5% - that would mean that your monthly payments are 2083$.



Let’s now assume you speak to a leasing specialist and he determines that you actually qualify for a rate of 8.5%. . Your new payment is now in the 2037$ range. That’s only 46$ you say, but over the term of the lease you are approaching close to three thousand dollars in savings. Don’t always focus on rate, but ensure at the same time you are getting a competitive rate commensurate with your credit quality.



In summary, lease financing is a solid equipment acquisition strategy. You need to understand the Canadian lease equipment environment, choose a solid lease partner firm, and focus on obtaining the best rate, term and structures for your acquisition – one that meets your business goals around growth and profit generation around the asset being financing. Speak to an experienced advisor in this area to ensure you are entering into the right type of lease transaction.



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

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 .

' 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