Factoring Finance Companies : A Smarter Way To Evaluate AR Receivables Financing Solutions

7 Key Considerations For The Right A/R Financing Solution

OVERVIEW – Information on A/R Receivables credit solutions in Canada . Factoring finance companies offer different ‘ flavors’ of AR Financing . What does the business owner /financial manager have to consider in picking the proper solution?

AR receivables credit solutions
come in a variety of manners and offered by a multitude of new and established ' factoring ' finance companies and other commercial finance companies in Canada. There are 7 key considerations in picking the optimal solution for your firm - utilizing these solutions is a smarter way to ensure you have properly evaluated financing that is right for your firm. Let's dig in.

A/R financing is all about financing you need for your daily cash needs. As opposed to a bank ' interest rate ' on your borrowing a fee is charged. Using a 10,000.00 invoice as an example a typical fee would be in the 150$ - 200$ range. (Assumes you sell on 30 day terms and are collecting from your clients).

While a factoring finance fee will almost always compute to a higher cost of borrowing vis a vis a bank ( it's not a real apples to apples comparison ) A/R commercial factoring facilities have a more generous borrowing power ( typically 90% ), plus you are achieving the key benefit of receiving cash as soon as you make a sale.

The truth is that pricing from Canadian factoring companies differs greatly, notwithstanding that some of the key fundamentals remain the same - i.e. size of your monthly sales/ client credit quality, age and collectability of your client invoices, as well as any ' special ' services provided with the financing. Some firms actually require you to finance all you A/R, which to us seems like an unfair option!?

It's critical to remember that this is not a loan per se, and it's certainly not equity financing. Bottom line its cash flow financing based on your sales. In meeting clients and discussing this finance option we compare it to a retailer who offers credit card payment options - the retailer is paid immediately by the credit card firm.

Let's circle back to our 7 Key Considerations in choosing among factoring finance companies:

1. Responsibility for Bad Debts - Care needs to be given around whether your firm is still responsible for uncollected accounts - this issue also is a component of your overall pricing

2. Client profiles - Issues for discussion typically should include type of clients, geographical location

3.Number of Invoices issued per month and overall Days Sales Outstanding Profile - smaller invoices typically cost more to administer in an A/R finance solution , Also your ability to prove you collect accounts effectively will absolutely lower financing costs

4.Annual financing volume - As in any industry some firms only prefer financing receivables when annual volume is at least several million dollars in revenue ; a normal monthly entry point is typically in the 250K range from a monthly A/R total balance


5. Specialized Knowledge - While Commercial factoring companies offer financing to any firm that sells on business credit a handful of firms are focused on specialized verticals, giving them a higher level of expertise in understanding your business.


6. Systems/software/ online solutions - There is substantial ' back office ' work in processing your daily / weekly or monthly funding needs. Ensure your chosen partner has the systems and people expertise

7. Collections -

In our humble opinion this could clearly be one of your main considerations. While for decades 99% of all factoring in Canada involves notification to your clients many business owners/finance mgrs don't realize an alternate solution exists. That solution? Confidential Receivable Finance! It allows you to bill and collect your own accounts with no notification of any kind to clients.

If you're looking to assess a proper AR Receivables solution for your cash flow needs and don't have the time or expertise to walk the minefield of factoring finance companies in Canada 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 evaluating and implementing a proper finance facility for your cash flow 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 A/R FINANCING & FACTORING 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

Turnaround Restructuring Financing In Canada : Constructing Your Restructure Loan Process

Surviving And Winning With Turnaround Financing In Canada

OVERVIEW – Information on the turnaround and restructuring financing process. For success a restructure loan process involves numerous key concepts outlined herein

Turnaround restructuring financing in Canada is a classic ' survival ' strategy to fix... save a business. Numerous key aspects to the loan/borrowing process will help you construct the right solution. Let's dig in.

There no time more than in a ' turnaround ‘when confidence is needed in the view of any commercial lender. Simple basic concepts such as a realistic cash flow forecast become more important than ever. That cash flow forecasting, along with your ' plan ‘allows you to survive in the short term and plan for intermediate/long term.

In some cases your firm might be in that dreaded category of ' Special loans' at a Chartered bank. Here day to day cash will be managed both by yourself and your banker. In many cases we see clients are at the absolute top of their credit facility with no additional borrowing power in sight. Here is the time that most businesses must consider alternative financing as new business credit from existing banks/lenders is near impossible.

There are numerous, shall we call them ' non financial' attributes to owner/mgmt behavior in a turnaround. These include:

Mgmt depth/experience
Evidence of financial controls/ability to produce required information
Ability to work with new lenders/advisors

In the majority of turnaround cases new commercial lenders will replace current secured creditors. Never has there been more importance at this time to ensure assets are properly valued. These typically almost always fall into the categories of inventory, receivables, equipment and occasionally real estate. Various non financial assets might also play a role, i.e. patents, contracts, etc.

A large majority of turnarounds loans are in the category of ' ASSET BASED LENDING ‘, Your firm and the lender will focus on present assets and asset growth that will also demand more interim financing . Example - financing to cover off growth in sales/working capital requirements.

When constructing your turnaround process you can also assume that in some cases there might be more than one lender. Other lenders might include equipment financiers, A/R financing firms , bridge loan specialists, real estate lenders, etc .This whole process involves ' carving out ' specific security for specific specialized lenders.

As we have hinted the turnaround financing process has different timelines attached to it. Short term survival must be balanced by long term re-growth of your business. Suffice to say in the short term cash is king... controlling and managing it! Issues such as collecting receivables on time and focusing on payables mgmt are key. It's all about asset turnover of A/R and inventory. If vendor / supplier relationships are key to your success before they surely should be top of mind now.

In certain cases it also might be prudent to sell non core assets - this might be real estate or equipment. Naturally no required operating assets should be sold! While owners might be reluctant to pledge new outside collateral in some cases that comes under discussion.

If your firm requires ' turnaround ' expertise in any aspect of its business financing seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your restructure loan process 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 TURNAROUND FINANCING EXPERTISE





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

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

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

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











Stan Prokop

Account Receivable Funding Is The Recipe For Your Cash Flow Finance Requirements

No Secret Phone Call Required For This Version Of Accounts Receivable Financing – It’s ‘Confidential’ !

OVERVIEW – Information on account receivable funding as a viable cash flow finance solution for Canadian businesses. Exploring the Confidential A/R financing solution

Cash flow finance solutions allow your business to comfortably strengthen your firm’s decision ability as well as financial future. One method employed by thousands of business owners/financial managers is account receivable funding, and in particular we're talking about Confidential Receivable Finance, allowing you to bill and collect your own receivables. And no ' secret phone call ' is required! Let’s dig in.

Planning your cash flow with the right external financing solution allows your business to better identify growth opportunities as well as avoiding the proverbial ' cash flow crunch' that comes with the ebb and flow of sales.

And the right solutions will always help you ensure profits without the risk of lacking working capital. While businesses have numerous traditional and alternative capital raising mechanisms those needs must also be properly communicated to any lender.

If your firm has ' sales ' it's always a candidate for A/R financing. Thousands of firms that can't attract a bank finance solution have the comfort of knowing their sales can be financed via receivables funding. This is short term financing at its best, allowing you to pledge / sell your customer accounts to fund obligations such as payroll, inventory/materials, and... growth in those sales! It's critical to understand that this solution is not a ' loan ' - there are no fixed payments - it’s a continuous revolving credit facility.

The confusion that exists between bank A/R financing and non bank financing lies in the way the collateral (i.e. your A/R) is documented. In the case of the bank its ' pledged ' while Confidential receivable finance via a 3rd party commercial finance firm stipulates specific receivables are ' sold' as opposed to pledged. Simple as that.

While a non bank solution will always be more expensive than the bank it’s a solid, effective way to finance your business. And more often than not it's a ' bridge' to getting back to a formal chartered bank relationship. which in the case of financing receivables is , in essence ' Unsecured Financing '.

There's a whole range of reasons thousands of Canadian businesses gravitate towards 3rd party commercial receivables finance. Has your business ever been in any of the following categories?"

Banks refused to grant you the amount of business credit you need

You have a bank line but it’s not enough!

Your firm is relatively new

One or a few customers represent a large portion of your sales - (known as 'concentration ')

How then does CONFIDENTIAL RECEIVABLE FINANCE work? At the core is the fact that, unlike traditional ' FACTORING' offered by 99% of commercial A/R financiers, no notification is required to your customers. So financing is clearly on the ' honor system '

given that you've received funding for your accounts and are obligated to pay back when your clients pay. Business owners are quick to see the positive impact of maintaining 100% of their client relationships, from sales to final invoicing and collection.

If you feel your firm can benefit from a winning recipe for A/R funding seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your cash flow finance 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 :

http://www.7parkavenuefinancial.com/cash-flow-finance-account-receivable-funding.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


' 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

Funding A Business In Canada – Busting Those Urban Legends On Financing And Commercial Finance Options

De-Stressing Your Business Credit Crunch Via High Functioning Financing Solutions

OVERVIEW – Information on properly funding a business in Canada . Exploring various commercial finance issues and solutions for Canadian companies

Funding a business in Canada at times must seem like sorting through urban legends

and myth vs. reality. Financing choices via banks or commercial finance firms seem either plentiful or non existent at times! We'll review some basics around ' de-stressing' your ' credit crunch' with a view towards high functioning finance solutions that make sense for your firm. Let's dig in.


The reality in Canadian business financing is that your firm will often experience at times a contraction in business financing capability. That might be from external reasons - i.e. the 2008 world depression debacle, or simply challenges in your own business re profit/loss etc.

The harder reality is that small firms tend to be much more vulnerable, and many business owners/financial managers look to newer non bank finance solutions for business credit. Those that seek bank credit typically look for either revolving credit lines or term loans of some type.

Many business owners certainly would agree that the ' bank relationship' concept is often more of a myth than reality , as concepts such as mgmt depth, business strategy etc are often misplaced by commercial credit scoring with a focus on ratios . The hard reality of Canadian business banking is that there is no real distinction in services and credit appetite, unlike the U.S. where choice abounds based on a different banking system.

Many businesses are looking towards Asset Based Lending (‘ABL ' ). This is a direct replacement for bank credit lines, providing working capital finance based almost solely on your business assets - not the ratios!

There are some interesting and popular subsets of asset based lending such as A/R financing, Inventory finance, etc. The ' harder assets' of your business, i.e. equipment or real estate can be addressed by equipment leasing or sale leaseback strategies which are tremendous popular.

It should never be forgotten that both owner equity and credit from suppliers often round out financing needs for many businesses in the SME (small to medium enterprise) sector.

In our opinion if you're looking for a true ' urban myth ‘spend some time looking for ' government grants ‘. While some ' grants ' (aka ' free money’?) exist they rarely can finance a business and often require ' matching ' of some sort.

The two government financing scenarios that are clearly NOT myth are the Canadian Government Small Business Loan and the SR&ED refundable tax credit program. These two programs fund over 10,000 businesses every year for amounts reaching 10 Billion dollars. No urban myth with these two programs.

For real world financing in Canada it's highly recommended to ensure you have both a business plan/cash flow forecast and a total focus on cash flow and debt repayment reduction in those documents. Naturally track records and business assets/collateral always help! Start up entrepreneurs take note!

If you're looking to de- bunk some Canadian business financing urban legends with a view towards time mgmt ( and ' de-stressing ' !) seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with commercial finance options and solutions that are ' high functioning' for your business.




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 COMMERCIAL FINANCE & 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

Financing SRED Credits: Cash Flow Optimization Via A SR ED Tax Credit Loan

The Silver Lining In The Dark Cloud Of Waiting For Your SR&ED Claim Refund

OVERVIEW – Information on the benefits and utilization of a SR ED Tax Credit Loan in Canada. Financing your SRED Credits is a smart way to accelerate your SR&ED refund

Financing SRED (SR&ED) credits in Canada is one key way in which business owners/manager participating in the program can ' optimize ' the benefits of this popular program. We're maintaining that a SR ED Tax Credit Loan is in effect a great ' silver lining in the dark cloud “of ... waiting for your refund. Let's dig in.

There are also other ways in which you can, effect, monetize your SR&ED filing each year. It's your way of course to take part of the 3 Billion $+ the federal and provincial governments typically spend on the program each year. The double whammy of receiving a refundable tax credit while at the same time maintaining your competitive stance is clearly a key driver in utilization of the program.

Whether it's simply filing your claim, or financing it your company is constantly in a 'waiting game’. In fact certain deadlines for filing and having your claim adjudicated are in fact cast in stone in Canada Revenue Agency rules. Their service standards are clearly laid out. By the way the financing of your refund allows you to leap frog the timelines in question.

Optimizing your claim, including considering a SR ED tax credit loan revolves around the proper preparation of your refund claim. While a very small portion of firms prepare and write their own claims typically this work is most effectively completed with the services of a ' SR&ED Consultant.

A good consultant will also lend credibility to your SRED finance loan application in that their work in areas of writing the narrative to your claim, as well as properly itemizing the costs is to key our ' optimization ' them . Who wouldn’t want to have a goal of ' fast tracking ' CRA' in areas of eligibility, expenses incurred, and co-coordinating the filing with your accountants. That ' notice of assessment ' followed by your refund cheque is clearly the goal line!

It's important to note that since SR&ED refund claims are filed only when you have completed your year end financials and corporate tax return this simply enhances the temptation of accelerate your refund via a SR ED tax credit loan.

Very few could argue that the funds you receive under the program (typically in the general range of 35% of all monies incurred in R&D) is valuable cash flow. Many firms who are start up or early revenue will attest to this!

Financing SRED Credits is of course an option, not a requirement. Only firms who are looking to accelerate cash flow should consider the SR ED tax credit loan. You need to give consideration to the overall timing of your claim as well as the actual need for funds. Typically your firm would use the proceeds of a SR&ED bridge loan for general working capital purposes in any area of their business

Financing your refundable sred tax credit couldn’t be simpler. The loan is structured as a bridge loan for 70% of the total value of your claim. No monthly payments are required, as financing costs ' accrue’, thereby making the loan even more attractive from a viewpoint of cash outlay. And by the way, you can start financing yesterdays SRED, today’s claim, and next years claim... whenever you wish.

Looking to ' optimize' the benefits of the Canadian govt R&D program? Finance your refund with the assistance of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your cash flow 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
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

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

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









Stan Prokop

Business Credit In Canada In A Nutshell : Funding Sources 101

The Great Business Financing Treasure Hunt : Digging Up Finance Solutions In Canada

OVERVIEW – Information on business credit options in Canada . Funding sources for firms in the SME sector are available if you utilize this information properly

Business credit in Canada
often feels like a ' treasure hunt' of sorts for Canadian business owners/financial managers. The reality in the search for those funding sources that will work for your company is that, like many aspects of business, some key basics apply and help to guarantee success. Let's dig in.


There's always an interesting debate around whether businesses in the Small to Medium Enterprise (SME) space either require financing, or, more importantly, are getting serviced properly by banks and other traditional lenders. While that debate rages on top experts agree that at the end of the day is important for owners/managers to understand options and qualifications.

While business credit needs in Canada relate to ' the business' most owners often are surprised to find that their personal financials play heavily into any borrowing situation. It's probably a bit closer to the truth that while personal credit history won't be the only or the major cause of a decline in funding approval for your business it clearly carries a vote. Bottom line - ensure you understand the dynamics of your personal financial situation as it relates to guaranteeing your loan / getting approved.

A hard fact of life basic for business funding is that ' time in business' counts. Starts ups and early stage companies know this all too well and of course traditional lenders such as Canadian chartered banks place heavy focus on operating history. Sales and sales growth hopefully translate also into profits and cash flow and asset acquisition so ensuring you can demonstrate revenue generation potential is key in any business finance plan.

Do business owners/financial managers really properly assess challenges in the following two areas?

1. The amount of financing they need

2. The type of financing they require

We've never been fully sure of that, if only for the fact we've seen many clients telling us they have spent time and money chasing down sources of financing for fixed assets, working capital, or even real estate from lenders that were totally inappropriate for their requirements or financial situation...

The concept of ' collateral' plays heavily into any traditional or alternative lending solution; in many cases hard assets can even backstop working capital and cash flow solutions.

Many businesses that have ' written off' their chances of getting financing from a bank , at bank rates often forget they might be eligible for the Canadian Govt Guaranteed Small Business Loan ( 350k max) which is offered through banks . We're of the strong opinion it’s important to focus on a good banker, not any specific bank.

As we have hinted, numerous non bank financial solutions are available to the business owner - they include:

A/R Financing
Inventory Finance
Asset based business revolving credit lines
Tax credit financing (Primarily SR&ED Refundable tax credits)
Equipment Leasing/ Sale leasebacks
Bridge Loans
Purchase Order Financing
Sales/Royalty finance

Business owners are very quick to share reasons they have been declined for financing needs - Those all too common issues are collateral, personal credit history, industry out of favor, lack of proven cash flow , owner equity issues, etc. All of these issues can often be addressed via numerous financial solutions not always generally known to business people.

If you're focusing on being successful in the treasure hunt for business credit and funding sources in Canada seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who is committed to successful financial solutions to the Canadian SME Commercial marketplace.




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

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


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 BUSINES CREDIT AND FUNDING EXPERTISE






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





' Canadian Business Financing With The Intelligent Use Of Experience '






















Stan Prokop

Asset Based Financing In Canada : The Simple Design Tweak For A Business Credit Line

The Chase Is On For Business Line Of Credit Solutions and Alternatives





OVERVIEW – Information on asset based financing in Canada. These types of facilities are strong alternatives to business credit line needs . Here’s how ‘ABL’ facilities can work for your company









Asset based financing in Canada is really another term for a ' simple design tweak' in the business credit line requirement your firm needs for cash flow/working capital operations. Clearly in the current environment ' the chase is on ' for alternate methods of financing your business. Let's dig in.

The Canadian chartered bank requirement for a revolving credit facility for firms both large and small is very clear - track records and financial statements that measure up in every way, from clean balance sheets, profits and cash flow coverage. But what if your firm can't meet one, much less all those criteria? One solution is the ' ABL ' - commonly called the asset based line of credit.

These facilities mirror bank financing and typically secure the same assets - i.e. receivables and inventory. Asset financing credit lines differ however in that they can, at your option , also include fixed assets/equipment and even real estate as a part of that revolving credit line. Talk about an increase in business borrowing power.

There is no need for business owners/financial managers to struggle in understanding how the asset credit facility differs from a bank line - Bank lending in Canada is steeped in what banks consider time tested methods of analyzing risk - i.e. debt ratios, covenant breaches, etc. Canada's strong banking system also imposes a lot of regulation on banks. Asset based credit facilities are typically offered by commercial finance firms that are not regulated via the constraints imposed on banks by gov'ts and shareholders.

The concept of the uses and needs of a business credit line in Canada is based around what lenders call your ' borrowing base' - namely the pool of assets that is being financed. Typically the current assets, i.e. A/R and inventory form the majority of your borrowing base. Typically these asset categories will fluctuate based on sales and asset turnover, i.e. days sales outstanding and inventory turns.

It's always important to remember that neither a bank line nor an asset based credit line are ' term loans'. Your business credit line fluctuates daily and does not add debt to the balance sheet - suffice to also say there are no fixed payments or amortization schedules.

Certain types of business present challenges to the need for a credit line - some examples might include construction industry exposure or government receivables. Also, for many companies ' inventory' is a key asset and a large part of the ' current asset ' mix. While banks might often be reluctant to finance certain inventory the asset based lender takes another approach, preferring to determine market values of inventory and advance based on that assessment.

If your company is looking to explore business credit line options and alternatives via either a bank or asset based financing solution seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your 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 BUSINESS CREDIT LINE AND ASSET BASED FINANCING EXPERTISE


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

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com

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.





' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop