Business Financing In Canada : Against All Odds You Can Improve Chances Of Business Finance Solution Success

Foraging For Business Financing In Canada ?

OVERVIEW – Information on business financing alternatives in Canada . The right finance solution for Canadian business must match sales, assets, and overall financial viability

Business financing in Canada. It is easy sometimes for the business owner/financial manager to feel they are ' foraging ' for solutions. There's probably no problem with that, although we're highly recommending that you learn as you gather! Let's dig in.

Feeling tired on exploring those finance solutions? Are the odds stacked against you?

Given bank loans, government guaranteed loans, niche solutions offered by commercial finance companies, and all those equity solutions that dilute capital (angel/VC funding, crowdfunding, etc) what really is the right solution that is achievable for your business?

Those equity solutions (as opposed to debt and asset monetization) are really only suitable if your business can achieve hyper growth, market dominance, etc. Not for everyone.

Sometimes it's also difficult for the owner/manager to decline a finance solution when in fact it might be the wrong one - that’s painful business financing and we see a lot of that when we talk to certain clients.

More often than not it’s a ' cash flow ' solution that is required. Those outflows simply aren't matching the inflows! , and the degree of seriousness of that problem has taken many a business down.

The best cash flow and working capital solutions are those that fix temporary and intermediate problems. In many cases they are not the long term fix that that equity capital can provide - from owners or outsiders.

We're the first to advise clients that working capital problems can be overcome by a lot of internal work, not necessarily requiring external financing solutions - that comes via selling more, generating higher profits , and focusing on asset mgmt and debt reduction .

What are though those external financial solutions to business financing, cash flow and working capital? They include:

Bank credit lines

Asset based lines of credit - full facilities or invoice or inventory finance separately or together

Tax credit monetization

Equipment financing/sale leasebacks

Tax Credit Finance bridge loans

The right financing solution can be identified, allowing a turnaround of sorts to commence.

There is a huge difference in the cost and access to financing that larger profitable companies have versus those struggling in the mid market SME Commercial sector in Canada. The reality is that smaller firms are ' credit scored ' in a fairly formulaic way - larger businesses get a bit more attention.

It' critical to understand why your firm can't get the financing you think it needs, but as important to know what the alternatives are. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can reverse that ' foraging ' feeling.



Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING EXPERTISE








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


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

An Asset Based Bank Line : The Somewhat Radical Power Of Business Credit

No Engineer Required For Asset Based Financing In Canada

OVERVIEW – Information on the business credit solution known as the ABL asset based bank line . It’s non bank in nature and supplies businesses with all the liquidity they need based on assets and growth.

Business credit needs sometimes give owners/managers the feeling they need an ' engineer ' of sorts for financing such as an asset based bank line. In their mind they want a financing for now, and the future that ' fits right ' and is chock full of the advantages they need to run and grow their business.

Because some or all of the finance solutions you need arent necessarily available from Canadian chartered banks one alternate solution is the asset based ' ABL ' line of credit. It's one solution that puts your firm, the borrower in the drivers seat when it comes to unlimited capital relative to your growth needs. That's a radical statement of sorts, so let's dig in.

Many clients we meet with initially are very reluctant to step ' outside the box ' when it comes to what they consider to be ' traditional ‘working capital and cash flow needs. However, in case you haven’t noticed, times are changing!

While traditional bank lines come with the lowest cost in Canadian business financing they can be limiting when it comes to the limits the bank might place on leverage - or in other cases being unable to address the seasonality and bulges in your business.

The asset based non bank ' ABL ' credit line does come with some obligations on your firm’s part. One of them is the need to report more often, always monthly but sometimes even more on the assets part of your business. Typically that's simply aged schedules of receivables, inventory, and fixed assets. We would submit that if your company can't produce these efficiently on an ongoing basis there's probably other problems lurking on your financials.

The revolving credit facilities you need are often the most sought after part of the Canadian business financing puzzle. The asset based credit line has the potential to solve all your liquidity problems if structured and managed properly.

Companies that have higher debt , as well as balance sheet ratios that don't meet bank requirements but still have current assets ( A/R & INVENTORY ) have just discovered that they now have access to all the liquidity they need , albeit at an often higher cost .

When we explain the ABL asset based solution to clients it’s a function on focusing on the two different ways to look at a revolving credit line. The banks focus on cash flow, historical, present, and future. The asset based lender takes an ' alternate' approach, instead focusing on the hard assets in your business, monetizing them into one revolving facility. These types of facilities are also widely used in buyouts, acquisitions, and general refinancing of a business.

If you wish to explore the somewhat ' radical ' power of the asset based bank line and feel you need more ' business credit ' and flexible 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 financing needs .



Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN ASSET BASED BUSINESS CREDIT LINE EXPERTISE





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


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Canadian Business Financing - 7 Park Avenue Financial

This week our Blog on Canadian Business Financing surpassed 100,000 Pageviews . We thank those that take the time to view the blog as well as those that contact us for Business Finance Needs


CLICK ON THE SCREENSHOT -->

Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :


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


' Canadian Business Financing With The Intelligent Use Of Experience '

Business Finance Funding & Refinancing In Canada : Much Ado About Something

Problem : Business Finance Funding & Refinancing In Canada

OVERVIEW – Information on business finance funding and refinancing in Canada . Business rescue solutions are available for owners/managers who take the time to understand the reality around possible options

Business finance funding in Canada, unfortunately for many owners/ financial managers (especially those in the COMMERCIAL SME sector) is, to paraphrase our friend Shakespeare

... MUCH ADO ABOUT SOMETHING. That something is the challenges faced by companies who require, among other things refinancing and monetization of assets. Let's dig in.

If there is any good news it's that the options available simply require some patience and expertise. By that time typically the business has started to grow into revenue. They have passed the ' friends and family' phase, including popular options today such as ' crowdfunding'.

Business financing is all about sales, assets, and cash flow. Without all of those in some measure options such as additional equity capital must be explored.

In Canada those firms that are involved in R&D in some manner have the unique benefit of being able to utilize the SR&ED refundable tax credit program ; they are now able under that fed./prov. program to recover a large majority of their r & d spend . Even more good news is that program is 100% financeable, allowing firms to monetize / cash flow those credits and eliminate the waiting period for the refund.

What then must the owner/manager do to access the right funding at the right time? The answer is the business equivalent of ' going back to school ' - You need to educate yourself on the different methods of financing available , how they work, and what they can do, or not do, for your firm.

A quick recap of the basic funding options is as follows:

Bank credit lines / term loans

Inventory & A/R financing

Asset based non bank business credit lines - “ABL’S"

Working Capital Term Loans

Govt Guaranteed Small Business Loans

SR&ED tax credit monetization

Purchase Order Financing

Bridge Loans/ Equipment Financing/ Sale Leasebacks

Royalty / Sales Financing

After you understand the basics of each of those offerings it's important to ensure you can supply the information needed to ensure you qualify for one or a number of those offerings. That might include a business plan, cash flow forecast, and asset schedules around receivables, inventory and fixed assets.

With respect to being prepared it's very safe bet that that if you can demonstrate control and knowledge of your business finances you're in a much better place when it comes to finance funding approval.

If you want to address the problem of refinancing or funding your business and want some help in the time it takes to source the right solution seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can shorten that timeline.



Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING EXPERTISE



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


' Canadian Business Financing With The Intelligent Use Of Experience '






















Stan Prokop

Sale Leaseback Asset Finance : 7 Reasons To Consider The Leaseback Financing Solution

Note To Self : Check Out Sale LeaseBack Financing

OVERVIEW – Information on the benefits of sale leaseback financing in Canada . Asset finance, via a lease back , can bring significant financial benefits to any business considering the transaction

Sale Leaseback is an often overlooked form of business asset financing in Canada. How does this financing work, and, more importantly, what are the benefits. Let's dig in.

Let's explore those potential benefits around the ' lease back ' of business assets, including by the way, real estate.

1. Some leasebacks could bring significant balance sheet and tax advantages to your firm. Although probably the majority of transactions are structured as term loans or capital leases it is of course possible to structure a deal as an ' operating lease ' - allowing the monthly payments to become an immediate expense. Depreciation benefits may also come to bear.

2. The possibility to structure a lease back can really be undertaken at any given time. If there is not immediate financing need (there usually is though!) your company has the opportunity to do a transaction when market conditions on rates are optimal. Today’s current low rates are clearly an example of that

3. The concept of considering lease backs is sometimes just all about focusing on what your business does best. The pro's call it ' core competency. As an example many Canadian chartered banks have sold off their prestigious bank towers on Bay St, utilizing capital in other parts of their business. Pride of ownership is sometimes, unfortunately, a thing of the past in today’s competitive environment.

4. Many transactions in this area focus on elimination of debt - this often improves borrowing ratios which more traditional lenders focus on and allow capital to be deployed in other areas relative to growth, more profits, etc

5. Employing assets via a leaseback will often improve your firms overall return on investment.

6. The unique nature of this type of financing allows you to still use the assets you need - i.e. equipment, real estate, etc - you just don't own them.

7. In many cases the selling of an asset allows owners to take out equity in their business - More often than not, in the case of real estate the assets are in a separate legal entity anyway.

Although some might view this method of financing as ' alternative ' in nature in reality its as much ' traditional' in nature. Final rate pricing and structure depend on the overall asset and credit quality.

So should you check out sale leaseback financing? If any, or several, or all of our 7 benefits can help your firm 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 you asset finance solutions.



Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN SALE LEASEBACK FINANCING EXPERTISE









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


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Tax Credit Incentives Financing : Best Thing That Happened To Your Film – Animation – TV Production In Canada ?

Masterminding The Why And How Of Film – Television – Animation Tax Credit Financing In Canada

OVERVIEW – Information on financing film, animation , and tv tax credit incentives in Canada . The finance of your refundable media credits help cash flow your project

Financing film, TV, or animation tax credit incentives in Canada is somewhat akin to masterminding successfully productions in these three areas of entertainment. Canadian federal govt and the provinces provide these credits which are modeled closely to those tax incentives provided for by other countries, particularly those Hollywood folks. Let's dig in.


The tax and employment benefits around movie, TV and digital animation projects have encouraged Canadian governments to provide some of the best funding available in the world. As an example let's look at Production Services Tax Credit, which is just one incentive that is financeable.

The federal portion of this credit (there is often both a federal and a provincial component to each type of credit) pays for 16%, as an example, of the labor on any project,

As we noted the true power of cash flowing refundable tax credits revolves around maximizing all that is available. In that case producer/owners of projects should always consider the matching programs offered by the provinces. In this case the provinces (primarily Ontario / BC / Quebec - but pretty well all have credits available) actually compete very aggressively against each other for a piece of your action! Foreign producers have to then make a choice on where they will film, or in the case of digital animation, produce their project.

When it comes to Transmedia projects utilizing all or in part animation Ontario, Quebec and British Columbia have a very attractive

To make our point, combining the provincial program with the federal one can often pay for anywhere from 30 - 70% of your total labor cost on a production, Ontarios (again, as an example) animation credit is called ' OCASE ' and can be layered onto your applicable federal credits.

But wait, there's more!

In certain cases, let's use Ontario as an example, if you film outside of major metropolitan centres such as Toronto, additional credits are applied.

The actual work around preparing your tax credit for financing ( if you so choose to finance/cash flow the credit ) is really a combination of effort with a good film tax credit accountant

as well as your lawyer, who typically on his or her part sets up a separate corporate entity for each project .

It's typically your tax accountant or lawyers work to get the actual ' tax credit certificate' as well as maintaining the financials and legal filings just as they would for any other type of business.

So the actual cash flowing of these tax credits? We thought you would never ask! Refundable TV, film and animation credits can be financed at anytime, i.e. prior to filing, after you file, or even after your project is completed. Typical advances on the credits are in the 70% range. The appeal to the producer /owner is that they help cash flow any current project, or help you fund your next one. Further appeal arises around the way in which these are financed - no monthly payments and structured as a temporary bridge loan.

If you're interested in masterminding the financing of a film, TV or animation tax credit seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you cash flow the credit.




Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN FILM TAX CREDITS FINANCE EXPERTISE






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


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Business Financing In Canada : Knowing Loan Alternatives Is Preventive Medicine For Your Company

Looking For All Seasons Business Financing ? Kicking The Tires On Loan Alternatives

OVERVIEW – Information on business financing and loan alternatives in Canada . Knowing the ‘ credit box ‘ is key to successful debt and asset monetization financing

Business financing , and loan alternatives, in Canada is either at one time (or constantly!) sought by owners/financial managers. If loan options are not understood chaos can reign supreme. Let's dig in.

Unless you're solely in the retail business cash flow, working capital, and debt alternatives should be on the table. We're constantly amazed at the amount of time new clients have spent chasing down financing in areas they will never qualify for - these might include VC equity, Private Equity, etc.

Not knowing how to obtain loan financing, and more importantly, knowing what finance sources you qualify for are key points to consider. There's a great analogy that Queen Isabella was the first VC, having financed Chris Columbus - and probably without a business plan! Key requirements are that some sort of equity be in place and with products and services that have future cash flow potential.

Private equity groups are on the other hand looking for no early development firms, and typically favor niches in certain industries they are familiar with. Whether it’s a VC or a Private Equity Group prepare for: DILUTION OF OWNERSHIP!

Early stage businesses, including start ups should take advantage, or at least investigate the Government Small business loan option. Getting someone to cover off and guarantee your loan is always difficult, so if the Canadian govt is willing to do that... check it out.

Business owners can be forgiven for not breaking down their financing needs into different loan types - that might be:

Lines of Credit - bank revolving credit facilities / non bank asset based lines of credit (typically these finance receivables and inventory)

Term loans - secured / unsecured cash flow loans

Equipment Leasing

Asset Monetization - tax credit financing, sale leasebacks, etc

In every case the owner / manager needs to understand if they fit into the ' credit box ' that defines any particular loan or asset monetization. Those ' fit factors’ include: length of amortization/ amount borrowed/collateral/personal guarantee requirements/ down payments

Business owners in our observation seem to have a desire to blanket the market with their loan / financing request. This often backfires for the simple reason they don't understand the particular ' niche ' that commercial finance company or bank or alternative lender specializes in.

So can we summarize key aspects to ' all seasons' financing? Key areas to focus on are:

Understanding lender specialties

Ensuring proper documentation is immediately available - i.e. business plans, cash flow forecasts, and owner information

Being prepared and knowing finance alternatives is in fact the ' best preventive medicine ' for your financing needs. Consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you avoid ' tire kicking' in Canadian finance.




Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING EXPERTISE




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


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop