Balance Sheet Financing : Removing The Handcuffs Of Your Business Financing Challenge

Reviewing The Situation : 6 Ways Lenders Can Finance Your Balance Sheet Via ON/OFF Strategies

OVERVIEW – Information on balance sheet financing in Canada. Balance sheet lenders enhance your working capital and cash flow needs when you understand unlocking the right assets with the right financial solution

Balance sheet financing , done properly , can remove the feeling of ' handcuffs' that business owners/financial mgrs have when they realize that proper finance solutions is in many cases what’s holding back growth.. let alone survival. There are 4 different ways in which you can ' mine ' the balance sheet with a view towards resolving the problem. We're... you guessed it... reviewing the situation. Let's dig in.

Understanding your options financing your balance sheet is critical. While the majority of solutions you have available , such as pure debt are recorded and have an effect on your balance sheet we should mention that some firms still rely on ' off balance sheet financing' .

Typically this is done via an ' operating lease' strategy although international accounting rules have certainly put a damper on the popularity of this financing mechanism. The essence of the transaction is as follows - the lease is shown as having no debt, or equity, just expenses via the monthly payments.

The flexibility of end of term operating lease choices allow you to either return the asset or purchase it at that time. Some of the largest name corporations in the world have used this strategy for decades to enhance the leverage they need to show to owners/shareholders

Some more sophisticated methods of off balance sheet financing include R&D partnerships and joint ventures. Typically these are not for SME COMMERCIAL FINANCE needs.

The other ' OFF' balance sheet strategy is the sale leaseback - allowing you to ' sell back ' an asset (typically equipment or real estate). This monetizes your equity in the asset, allowing you to reduce other debt or to simply use the strategy for cash flow/working capital needs.

We've covered off 2 methods of ' off balance sheet financing' - the operating lease and the sale leaseback. Now let's turn our focus to the ' ON ' button!

Knowing your balance sheet accounts allows you to both unlock and manage cash.

Strategy 1? Asset turnover. Your ability to better turn over receivables and inventories is key. This lowers your required investment in these two accounts... and geneates cash! We would note that the tremendous popularity in A/R Financing is in effect an ' off ' balance sheet finance solution - taking your receivables and turning them into instant cash as you generate sales.

A quick example? Take a company that has a million dollars in sales and receivables of 125k. That equates to a 45 day turnaround in collections. If you were able to get that to a 35 day turnover the extra cash generated is 27.5k.

Strategy 2? It's all about financing long term assets properly. Your ability to buy equipment, technology, even real estate puts a tremendous cash drain on your business. Never, we repeat never, should you finance these assets with short term operating cash. Equipment leasing and term loans should be considered

Strategy 3? Manage your payables by making maximum use of vendor terms and discounts and pricing.

Strategy 4? Manage your term debt properly. Ensure you have the cash flows to support loan amortizations and finance long term debt by investigating types of leases (capital/operating) and loans (secured/unsecured).

If you're interesting in financing solutions such as:

A/R Finance
Inventory loans
Bank and non bank ( abl ) credit lines
Sales leasebacks
Equipment leasing
PO Finance
Securitization
Royalty finance


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 balance sheet (ON/OFF!) financing 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/balance-sheet-financing.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

Business Financing In Canada : Dealing Successfully With Cash Flow Finance Challenges

You Don’t Need Dumbledore For Cash Flow Finance Secrets & Solutions – Here’s Why

OVERVIEW – Information on cash flow finance solutions in Canada . Successful business financing involves a strong understanding of your sales / revenue cycle and the timing of cash inflow/outflow

Business financing in Canada sometimes might well seem as if you need some help from Dumbledore - the legendary J.K. Rowling character who knew ' pretty much everything ' , while at the same time having access to spells and other devices.! The reality? Cash flow finance is an integral part of your sales and collection cycle; when the business owner understands that he or she is in a position to improve cash flow and determine which lending arrangements work best. Let's dig in.

Two solutions are essentially possible for the business owner/financial manager. The first solution is often the hardest, impractical at the worst of times, and time consuming. We're talking about taking on term debt or raising equity capital. Good luck with that and tell those friendly Venture Capitalists and Angel Investors

that we said ' hi ' - We'll toil on in the real world.












The second solution? It's often the most practical- and it involves simply understanding your sales cycle and determining how and when you generate cash flow and what solutions can accelerate that process! The true secret of business? We sometimes think it boils down to simply turning real sales revenues into actual ' cash on hand '.

You firms ability to generate cash in a manner that you can always predict is often the real reason cash flow is such a challenge So the more you are able to both control and manage and predict cash flow ( through a cash flow budget perhaps?) is the real road to business financing success. Those abilities will also put you in a better position with decision makers at banks and commercial financing sources.

While your accountants are no doubt great at capturing the ledger transactions in your businesses ' operating cycle ‘ it doesn’t show cash traveling through your company. This whole situation is even more acute for companies that have long term contracts, or who have a long mfg cycle.

As you have hopefully seen, the best thing about your business (sales and profits) are rarely emphasizing or capturing the cash flow challenges your company faces. So when you put aside all your cash outflows in marketing, or R&D, as well as operating expenses, and also understanding the investment you need to make in inventories and carrying receivables... suffice to say... Cash flow mgmt and finance becomes JOB #1.

Solutions available to business owners/mgrs for cash flow finance are varied. They include:

Bank credit
Non bank business credit lines
Inventory Finance
Sale leaseback Financing
Tax Credit finance
PO / Contract Financing
A/R Finance /Invoice Discounting/Confidential Receivable Financing

We've determined you don't need the services of that wizard ' DUMBLEDORE ' with his array of magic ; His title was apparently ' Head of Transfiguration ' but prudence dictates contacting a trusted, credible and experienced Canadian business financing advisor who can show you how to successfully deal with cash flow finance solutions might just well be a great alternate strategy


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 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

Financing A Company In Canada : Cream Of The Crop Cash Flow Finance Solutions

You Can Only Spend Real Cash!

OVERVIEW – Information on cash flow finance solutions in Canada . Financing a company requires this knowledge around available business credit offerings and how and why they work

Cash flow finance in Canada demands that your firm has the expected cash flows required; business owners and financial managers quickly realize that you can only spend real cash! When that ' cash on hand isn’t available in financing a company finance solutions are required. We're covering off the ' cream of the crop '

in those business fixes. Let's dig in.












The essence of cash flow financing, unlike asset based loans is the requirement that your firm demonstrate past and projected cash flows along with earnings and margins that are manageable.

The uses of cash flow finance are varied - typically these solutions are used to fund your daily operations- in some cases they can also be used to acquire a business. The ability to obtain financing today, as opposed to sometimes in the future is what will differentiate your business from the competition.

Business owners/mgrs of course also have to obtain to access other forms of financing - this might mean either selling equity or taking on debt. At the core of being successful in financing a company is the requirement that you can identify why and when you have cash flow fluctuations. Various forms of temporary cash flow loans allow you to take advantage of different operating conditions. Although higher rates come with non bank loans they do provide the speed and convenience of access to real capital.

Acquiring business assets requires an outlay of capital for either outright purchase of the equipment or the need to allocate cash to lease/loan payments. It's critical for business owners to be able to develop a realistic cash flow budget that shows the ongoing changes in receivables and inventories and payables.

Top experts tell us that the capital needs of Canadian business to grow assets and operations almost always exceeds cash inflows - that brings us back of course to our theme ' you can only spend real cash '! Those realistic cash budgets and appropriate financing solutions are what’s required to ensure you can acquire the assets you need to be successful. Don't forget also that assets you acquire in your business should be bringing a higher return than the actual cost of financing

When your current operations can't finance the opportunities you seek in your business you need to focus on the ' cream of the crop ' financial fixes that companies rely on - They include:


Equipment Leasing
Asset based Loans
Working Capital Term Loans
Unsecured cash flow loans

Short term financing can be accessed via:

A/R Financing
Bank credit lines
Non bank asset based business credit lines
Tax Credit Financing
Royalty Finance
PO /Contract financing

If you're focused on assessing and obtaining the best financing available for your firms current and future needs 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 financing that provides access to ... real cash!


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 CASH FLOW FINANCE 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

Lease Back Financing In Canada : Exploring Sale Lease Back Transaction Benefits

Attn: People : 7 ( Count Them!) Reasons To Consider Sale Lease Back Financing

OVERVIEW – Information on lease back financing in Canada . Exploring the majoring benefits of a successful sale leaseback transaction as part of your cash flow strategy

Lease back financing in Canada has been around for decades - it's a proven strategy to obtain financing for your firm on assets you already own. The sale leaseback transaction allows your company to still use the asset (typically equipment or real estate) while buying it back over the term of the lease. We're examining those proven benefits. Let's dig in.

The main driver for business owners/mgrs to utilize this form of financing is the need to free up capital for use in the business - simple as that. Depending on the way you use the capital there is typically an improved balance sheet when it comes to some of the ratios that banks and other commercial lenders like to see.

Also, since you temporarily don't own the asset you don't have that additional depreciation expense. When the funds from the transaction are used to increase sales it’s a true ' double whammy'!

What are some of the issues then in properly executing the lease back?

They include:

The need to properly assess the true current value of the equipment - this benefits both you and of course the lender and is often achieved via a third party appraisal . In our experience our clients often feel the asset in question has more value!!

The requirement to ensure that the interest rate and cash outflow on your lease payment makes sense from a cash flow perspective to your business - Here picking the right amortization ( lease term ) is key

The actual final buyback payment must be negotiated fairly

For larger transactions it might well be considered to discuss the transaction with your lawyer and or accountant. In the SME COMMERCIAL FINANCE sector personal guarantees of owners on the transaction may well apply.

Let's recap, with a total of 7 solid benefits of lease back financing.

1. Equity in your business is freed up so that owners and or creditors can make maximum use of capital

2. The company can still use the asset/assets in question

3. Capital from a sale leaseback transaction can be used to achieve and even greater return on equity

4. Debt your company currently has can be paid down or in some cases eliminated - capital could also be used to purchase new assets

5. If the leaseback transaction involves real estate your business is simply addressing capital through its core business - you're probably not in the real estate business

6. In certain circumstances your company can maximize efficiency in times of low interest rates for refinancing

7. Numerous tax/accounting/financial statement benefits can accrue from properly executed leaseback financing

These transactions work best when they are balanced in terms of the needs of the lender, and your firm, the borrower. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you complete a transaction that makes sense for your firm.





7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :

http://www.7parkavenuefinancial.com/sale-leaseback-transaction-lease-back-financing.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

Investigate Canada Government Grants and Loans - The Small Business Loan Program Works!

YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS !

You've arrived at the right address ! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the biggest issues facing business today

ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - INFO@7parkavenuefinancial.com


If you are either a start up (pre revenue) firm or an established small or medium (we'll define medium a bit later) sized company in Canada you should be investigating, and using the Government of Canada small business loan program.

Why? We will give you 4 reasons - great terms, rates, structures and qualification criteria. Could you ask for anything better in Canadian business financing? We don't think so and we have been a fan of the program now for years.

Many clients or callers requesting information on the program (the formal name is BIL / CSBF) often utilize the terms 'grants' when requesting info on the program. The BIL /CSBF program is not a grant. It is a special business financing program sponsored by Industry Canada (those good folks in Ottawa...). The program was developed by the government to assist the thousands of firms who might not qualify for what the finance folks call 'traditional financing' - aka "the bank!".

We also promised you we would qualify the term 'medium sized firm' when it comes to qualifying for the program. In the case of the Small Business loan program any firm under 5 Million dollars in either actual or projected revenue still qualifies for the program. Naturally your firm has to be privately owned, and be considered a 'for profit' business. (We're all 'for profit'!)

As we said, many customers call looking for 'grants' - we're all for free grant money also - we are sure it exists out there somewhere, we just have never found it. Actually, let's clarify that, two great programs, S R ED, and film tax credits are non repayable credits you can easily apply for if you qualify for either of those credits. Those two programs are a discussion for another day though.

Typical client questions always include - how much can we get or apply for? What are the rates and terms? And what's the process involved? Get ready for a short, simply and basic primer in all those three areas!

The Canada government small business loan has a maximum cap of 350,000.00 dollars. However, if you chose to use this financing for real estate you can actually receive 500k. We note that for many years the program had a cap of 250k and during the global recession (2008-2009) the government raised the limit on the program.

Many firms who are either new or have challenges might think the rates and structures are onerous under the program. Exactly the opposite... financing is at only 3% over prime, and from a term perspective you can go from 5-7 years, we typically structure 5 years as a reasonable term.

Penalties to pay back if you're successful - There are none!

There isn't a day when we don't spend time advising clients on what can be financed under the program...that's where a lot of mis-information exists. The program only covers equipment, leaseholds and real estate. We would add that software is included in the equipment category.

So who is using the program? Almost 8000 businesses did in 2010 - so you can be sure that the program works and is robust.

The greatest challenge around the program in our opinion has been the confusion on where and how to apply. We've completed transactions in a week and then heard from clients that they have spent months floundering on their processes in this type of financing. Speaking to a trusted, credible and experienced Canadian business financing advisor in the area of government small business loans will get you on the fast track to some of the best financing available in Canada today.

Stan Prokop is founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com

The company originates business financing for Canadian companies and is a specialist in working capital, cash flow, and asset based financing. In business 6 years the company has completed in excess of 45 Million dollars of financing for Canadian corporations of all size. For information on Canadian business financing and contact details please see: http://www.7parkavenuefinancial.com/canada_government_grants_loans_small_business_loan.html

Article Source: http://EzineArticles.com/6209137




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/6209137

Bank Business Loans And Alternative Business Finance In Canada

Eligible For More Business Financing Than You Think ? Check Out This Telescopes View

OVERVIEW – Information on bank business loans and alternative finance solutions in Canada,

Finance challenges in Canada , in the minds of many business owners and financial mgrs, are solved through bank business loans. But the new reality is that you might be eligible for more business financing than you thought, and if bank solutions aren’t accessible a brave new world of alternative finance is out there... Let's dig in.

In a perfect world ( apparently it's not ) the ability to have all the cash flow you need, or to be able to access unlimited business credit lines is the objective of most businesses when it comes to running/growing your company . That challenge of ensuring that sales revenue exceeds operating expenses and commitments to lenders will ultimately decide the success of your business.

You become more ' eligible' for business financing, via banks and other commercial lenders when you best understand what exactly your capital needs. We're focusing on debt and financing your assets in our discussion, not equity raising which is a whole other discussion!

The essence of working capital and cash flow financing revolves around the concept of selling your products and services and having to wait 30-60 days for your client payments. (30 days? We only wish!) Business owners and mgrs who wish to finance their business properly need to be capable of creating cash flow budgets that reflect those inflows and outflows of cash.

In a large majority of circumstances the cash flow you generate will always come from receivable collections, and that A/R is typically the largest, or one of the largest assets on your balance sheet. Financing that large asset can come in a number of ways:

Bank credit facilities
Commercial A/R Financing
Asset based non bank business lines of credit (‘ABL Solutions')

Owners/mgrs will find that if that focus on solid receivables mgmt those external solutions we have identified will become more eligible for approval in the amounts required. As an aside we all know that Canadian chartered bank financing is low cost and flexible, but when that bank solution is not accessible numerous other alternative finance vehicles exist.

In addition to the aforementioned A/R financing and asset based credit lines owners can look to:

Sale leasebacks - selling and leasing back assets is a proven cash flow strategy used by corporations of all sizes

Refundable tax credit loans (via the 'SR&ED'program)

Royalty finance

Purchase Order Financing

When you need to replenish new assets companies from start up large public company status consider EQUIPMENT FINANCING as the most popular method of financing assets from which you company will benefit over time. It’s a matching of cash outflows to asset benefits.

Along with receivables another often critical asset category is inventory. Bank and asset credit lines can include an inventory component, and firms who sell on cash such as retailers have access to inventory credit lines. As a caution inventory finance is not the easiest to obtain and careful appraisal of your inventory quality and turnover is key.

Although we're always seeming to preach asset mgmt and financing techniques to clients we're the first to recognize the importance of growing sales. Firms that can’t grow or are in a constant decline in sales revenues are often perceived as being in a death spiral of sorts. However that challenge of growing sales we point out to clients is also often one of the reasons cash flow is tight due to the higher investment you need to make in A/R and inventory and fixed assets.

If you're focused on ensuring you understand what financing you are eligible for and what are the traditional bank business loans and alternative methods of finance that make sense for your business 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 your 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 :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS BANK LOAN AND ALTERNATIVE FINANCE 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 '






Stan Prokop

Accounts Receivable Finance In Canada : Eliminating Potential Danger In Receivables Lending Solutions

A Peek Inside Accounts Receivable Financing In Canada: Receivables Lending Deconstructed

OVERVIEW – Information on accounts receivable finance . Here are the issues to understanding receivables lending solutions in Canada

Accounts receivable finance solutions in Canada require some level of ' deconstruction' to understand both the benefits, and pitfalls receivables lending offerings. Let's dig in.

A/R financing in the Canadian marketplace is a ' non bank' solution, allowing businesses to finance their receivables for cash flow and working capital needs. They key difference from bank financing is simply that the cost of this financing is expressed as a ' fee ' as opposed to an ' interest rate' solution via traditional Canadian chartered bank offerings.

The ability to get ' same day ' cash for sales you generate is appealing to Canadian business owners/financial mgrs. One of the appeals of this type of financing is that the amount received on the receivables is almost always more than a bank would advance. (Typically 90% - that remaining 10% is simply a holdback reserve that you receive when your client pays your invoice)

At its simplest accounts receivable finance works almost always as long as you have commercial ' business to business' invoice sales that reflect product and or services your firm has delivered on.

Receivables lending solutions should never be viewed as 'debt ' or ' equity' financing. All you are doing is monetizing existing assets - your A/R.

Cost is always a factor when owners / mgrs consider financial solutions. Recall we indicated invoice financing is billed as a ' fee ' and that fee is typically 1.5-2% of your sales. (The fee will always be a function of how long your receivables are outstanding - prudent owners/mgrs can therefore reduce financing costs by effective A/R mgmt)

The benefits of a receivables lending solution are many - they include the ability to grow your business at almost any level of growth: additionally you can improve supplier relations and take payment discounts from your own vendors, thereby enhancing key vendor relationships. In many cases if your firm has good margins and can absorb growth financing costs you're in a position to take on larger contracts or even sell to the government as well as large corporations who tend ( intentionally ?) to pay SME firms much more slowly . ( Hint – it’s their version of cash mgmt!)

Have we forgotten anything? Oh yes, those potential ' dangers ' in acquiring the right solution. They include understanding the following basics:

Ensuring you understand whether you or your commercial finance firm is responsible for bad debts - your ability to extend credit properly and manage collections reduces financing costs

Being able to articulate your customer base to enjoy better pricing - size and invoice age are factors that will help determine your pricing

Working with the right company - many of the offerings in the Canadian marketplace are focused on specific industries - example: Trucking; working with a firm that understands your industry... you guessed it.. helps.

Finally, the majority of receivable finance solutions that are non bank in nature in Canada require that your clients be notified of the finance process. Our recommendation? Consider a Confidential Receivable Finance solution that allows you to bill and collect your own accounts.

If you're interested in a solid ' peek ' into A/R financing solutions in Canada , with a focus on best solution that suits your firm while eliminating pitfalls seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success that 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 = CANADIAN RECEIVABLES LENDING & 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 '

Stan Prokop