Business Finance In Canada : When A Bridge Loan Or Specialized Lending Just Might Work !

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Business Financing At The Speed Of Light ? You Decide !

OVERVIEW - Information on specialized lending solutions in Canada. Business finance requirements might often include a bridge loan in the firms financing mix . Here's why

Business finance in Canada , according to most business owners and financial mgrs we talk to, doesn’t seem to happen at the speed of light! So when the type of loan and cash flow needs your firm requires isn't happening as quickly as needed are there alternatives. There are. Let's dig in.

In certain situations the concept of a ' bridge loan ‘might just make sense. These loans are a form of specialized lending that will often provide a fix for the small to medium sized company that needs interim financing.

Why? Simply because they close the time gap, while at the same time providing the liquidity you need for survival, growth, etc. Timelines associated with bridge loans tend to be in the 1 year range, with many solutions involving extension options.

The alternative to shorter term bridge loans and specialized financing solutions might sometimes be equity investments, but that type of solution comes with longer timelines and ownership equity dilution.

What then are some of these solutions? They include:

A/R Financing facilities
Inventory Loans
Sale / leaseback loans on unsecured assets
Working Capital loans
SR&ED Tax credit loans
Asset based non bank credit lines
Purchase order financing

Most bridge loans are ' secured' so they must take into account any existing financing your company has in place with any other lenders, which might often include a Canadian chartered bank.

Financing rates for specialized lending solutions will almost always come with higher financing costs. That is usually the case, but not always; larger firms who are more stable can often obtain bridge loans at more normal interest rates.

Typical bridge loans are more often than not provided by commercial finance companies / niche lenders. These firms serve the SME / MIDDLE MARKET of Canadian business financing needs.

Startup companies rarely fit the profile of companies who qualify for bridge financing, which typically is based on assets such as receivables, inventory, equipment, real estate, etc.

If you're focused on an interim ' bridge ' solution to capital and cash flow 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 your specialized lending needs.


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

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 Financing In Canada : Equipment Finance & Asset Loans

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Does Business Asset Acquisition Seem Tougher Than Climbing Mt. Everest ? Problem Solved

Information on lease financing in Canada. Equipment finance is a strategic part of asset loans in Canada. Here's why and how it works!

Lease Financing – Canada continues to view this option as a major source of capital expenditure financing in Canada financing in Canada. More and more companies are gravitating to leasing as an effective financing option for their equipment needs.

Canadian business owners and financial managers need to be aware of the types of lease financing out in the marketplace, with respect to documentation, rate, term and structure, and of course, most importantly, approval .

The term for most leases in Canada, based on our firms experience tends to be between thee and five years. With respect to what asset type can be leased, probably the better questions is to ask ‘what can’t I lease ‘? That’s is because almost every type of asset can be lease financed. Leasing firms do like to focus on equipment and assets that are ‘revenue producing ‘in nature – i.e. those assets that will generate sales and profits for your firm – that’s because the lease is of course paid from the cash flow out of those profits and sales.

Many business owners do not, unfortunately, have a solid understanding of what types of leases they can enter into. Doing your basic homework in this area will save you potentially thousand of dollars over the term of the lease, based on estimated asset values and the type of lease you enter into. (There are two types – capital and operating).

When we ask business owners and financial managers why they lease more often that not the answer comes back relating to preservation of capital. In today’s difficult financing market Canadian forms want to preserve cash and credit lines for other basic business needs.

Other firms are very focus on how the optics of the lease will affect their balance sheet – many larger firms focus solely on operating leases, where the asset remains off their balance sheet as debt, and the payments are reflected as an operating expense. When debt to equity ratios and cash flow coverage ratios are important to your firm, your bank, or your shareholders then leasing via an operating lease becomes a very effective financing tool.

Leasing tends to be ‘fixed rate’ financing. Given today’s relatively low interest rate environment it of course makes a fair bit of sense to lock into a good low rate for the next three to five years.

There isn’t a day goes by when we don’t hear of in the radio or the financial press concerns about inflation. When costs go up in an inflationary environment the business owner takes solace that his lease payments are fixed and at a respectable rate.

We spoke previously of capital conservation – more often than not leasing is 100% financing – on occasion a customer may be required to provide a first, or first and last payment, and sometimes a down payment, but in general business view leasing as 100% financing. That’s a good thing relative to cash flow management.

When we talk to business owners about leasing we frequently use the term ‘options ‘. That is because leasing lets you have a final vote in your capital expenditure financing. Properly structured leases allow you to return equipment, buy it out at end of lease, or extend the term of your lease if you feel the equipment will be used for another specific period of time. Many lessors will even allow you to go ‘month to month ‘.

Naturally in today’s competitive environment it makes sense to stay ahead of technology whether that is computers or plant equipment or rolling stock. Leasing allows owners to use the asset and ensure that you have access to newer assets if your firm needs them – upgrades are very common in lease financing in Canada.

We spoke of ‘approval ‘previously .Since most lease financing is done outside of the banks in Canada independent finance companies focused on lease financing work hard to generate an approval for your asset financing. Typically a lease finance approval can be obtained in a week or so as long as you have the required information, which is generally an asset description of quote, and the basic financial information on your company, i.e. your financial statements.

Investigate the benefits of leasing by talking to an experienced and credible advisor who can ensure your firm is maximizing those lease finance benefits!


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

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 : Unearthing Working Capital & Cash Flow Loans

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Survey Says … Your Company Needs Business Finance Working Capital & Cash Flow Solutions

OVERVIEW - Information on business financing in Canada. Knowing when and how to access working capital and cash flow solutions is key to growth and profits

Business finance solutions
in Canada require a good knowledge around your ' current assets ‘. These assets are the key to working capital and cash flow solutions and are tied directly to your ' liquidity ‘. Let's dig in.


Because most firms sell on credit the fundamentals of A/R financing are critical for business owners/financial mgrs. Your ability to time ' cash in' versus ' cash out ' will ultimately determine a good part of the financial success of your business.

Although some might consider a ' cash flow shortage ' an extreme negative the reality might well be that your firm’s success and growth have simply necessitated a higher investment in current assets - namely receivables and inventory. (That’s not to say that cash flow shortages don't necessarily not mean poor mismanagement or poor financing of your assets!)

Needless to saying avoiding the working capital crunch requires some solid knowledge and planning. Remember also that your ability to plan and finance around business capital needs should be your goal. That planning can also revolve around both ' internal ' and ' external' strategies - new financing isn't always the key. That’s the essential business choice - borrow externally, financing your current assets, or raise new owner equity. The latter is often not desirable or in fact possible.

As we have said, never forget also that a good focus on solid A/R collections strategies and inventory turnover and management is key. Often forgotten is the ability to generate positive cash flow from better payables and supplier credit line mgmt.

So what are those current asset financing strategies? They include:

A/R Financing

Bank business credit lines

Non bank asset based revolving credit facilities

Tax Credit finance

Purchase Order Financing

Inventory Loans


All A/R financing solutions have a cost to them, whether they are traditional (' bank ') or ' alternative in nature. solutions such as Confidential Receivable Financing offer the same benefits as bank credit lines for those firms not eligible for that type of facility.


What then is the essence of solid cash flow and working capital finance? We think it’s the owner/finance mgr ability to:

1. Know the difference between internal or external solutions to business capital

2. Knowing how your overall all cash flow operating cycle works

3. Understand the various traditional or alternative capital solutions that will provide liquidity to your business

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help your firm ' unearth' the right capital solutions.



Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

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 Finance In Canada : Can These Loans & Asset Financing Solutions Help & Save Your Company

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Is Your Firm Aware of these 5 ( Count ‘em) Types Of Business Financing Loans

OVERVIEW – Information on different types of loans and asset financing in Canada . Various business finance solutions offer different rates, terms and structures when it comes to growth and survival

Business finance loans in Canada require that the business owner/financial mgr has a clear understanding of the various types of asset financing that can bring survival and success to the company . In fact there are at least 5 types of business loans that can be tailored to company needs. Let's dig in.

At the heart of the matter is the requirement that you understand whether the solution will be asset based or cash flow based.

The revolving business credit line is a common solution for most firms. These loans follow the ongoing growth of assets in your business - primarily those ' current assets ' - i.e. receivables, inventories. When it comes to these lines of credit Canadian banks look to stability in the assets and the overall health of the company.

When your firm cannot fully demonstrate that capability the alternative option is an 'ABL ' - it's the same asset based credit line, but focuses instead very much on the asset quality and turnover. Inventory is often the ' elephant in the room ' in revolving credit lines, given its true turnover and quality.

An offshoot of asset based financing is ' A/R Financing ‘, generally called ' factoring'. Its total focus is on your receivables and is utilized by thousands of firms in Canada - large and small.

Receivables are typically generated from contracts and purchase orders your firm receives. Not all owners/mgrs know that the actual Purchase Order itself can be financed. In PO Financing the focus shifts to the quality of your customer and your company’s ability to fully satisfy and complete the order. While typically a more expensive form of financing it allows many businesses to take on business much larger than their current financial profile will allow.

Commercial mortgages and sale leasebacks on existing properties are viable ways to bring cash flow into your business. In acquiring a property your company turns rent checks into real equity, and sale leasebacks on property already owned can generate valuable working capital while retaining ownership in the building or property.

True cash flow loans can also enhance a company's liquidity and survival. They can be secured or unsecured but always come back to your firm’s ability to prove cash flow generation. Lenders call that ' cash flow coverage’. While in the past typically these loans have been for larger firms numerous short term working capital loans are available today that might fit your current cash flow conundrum.

When cash flow loans are ' unsecured' they are often called ' mezzanine ' solutions. While they come with covenant and ratio requirements if your company has a track record of success this type of financing will enhance growth and profitability.

That's the roundup. So would any of the following solutions help your company?

Business credit lines
Inventory Finance
Purchase Order financing
A/R finance
Cash flow loans

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with solutions that work.





Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

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 : The Not So Secret Truth On Interest Rates & Loans

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The Easy Way To Understand Business Finance Interest Rates In Canada

OVERVIEW – Information on business financing solutions in Canada and how interest rates are priced for loans by traditional and alternative lenders

Business Financing interest rates in Canada are often both misunderstood by business owners and financial managers. Is there an easy way to understand how finance solutions are priced? It's certainly not always only about ' fixed' or 'variable ' - that's for sure. We think so. Let's dig in.

Fundamentally it's all about your risk profile but don't forget also there are a variety of both traditional and alternative lenders in Canada- all of whom have different lending guidelines and structures.

Companies who qualify for bank financing in Canada (Spoiler alert - not everyone does!) tend to focus on amortized life of loans and the fixed/variable conundrum. The current low rate environment is a boon for those who qualify for bank financing.

Covenants, ratios and documentation required should always be a part of any commercial borrower’s consideration. Whether it's a bank or a commercial finance company we've certainly observed that the majority of borrowers tend to prefer to deal with a lender with a local presence.

Is size everything? Quite frankly when it come to loans or cash flow finance solutions ' size ' does play an important role in both rate and approval . Interest rate pricing will vary based on credit facility/loan size as well as the amount and type of debt you have on your balance sheet.

It's important to understand that different types of financing in Canada support different goals - that might be one of combinations of growth, working capital, expansion, and even acquisition. In many cases firms opt for a complete refinancing of existing facilities.

What then are different types of business financing that support your firm’s goals? Note also they all have different rates and structures. Solutions for your business include:

A/R Financing

Inventory loans

Sale Leasebacks

Equipment financing

SR&ED Tax credit financing

Commercial mortgages

Non bank asset based lines of credit

Bank credit lines / term loans

Royalty financing

Unsecured Cash flow loans

Your company’s track record and financials will play a key role in obtaining any commercial financing Note also that you firm might have a ' Senior lender ' - typically a bank or commercial finance company, as well as utilizing the financing services of other ' niche ' based lenders, some of whom are profiled above in our list .

While some may view alternative finance solutions as ' expensive' remember also that they will always be cheaper than surrendering equity ownership? Alternative financing solutions can help firms who are challenged or on the verge of distress, which obviously is a key factor in higher rates

It's always about the ' risk ' undertaken by our traditional or alternative lender. If you want to better understand the not so secret truth about business finance interest rates 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 the best loans and finance solutions that match your firm’s needs.



Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com


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 Capital Sources In Canada : Financing Your Cash Flow Needs

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The Boy Scouts Had It Right : BE PREPARED when it comes to Business Financing Needs

Information on business capital sources in Canada . Financing needs for Canadian companies come in the form of loans and cash flow solutions tailored to your needs

Businesses that are growing require sources of capital. The capital in a company of course comes from the owner or borrowed funds. Generally speaking business owners prefer to borrow rather than sell equity in the company, as that sale of equity dilutes the ownership position, i.e. they own less of the pie! New equity can come from friends and family, venture capital firms, and angel investors. These parties are looking for good management, integrity, owner financial stake, and growth potential.

However, in the current difficult financial environment many lenders are in fact insisting that business owners put more of their own money into the company. There is never an easy answer when it comes to the debt or equity question.

When businesses borrow funds there is a cost to that capital - as interest on that debt reduces over-all profits. New equity in the company of course does not reduce those earnings, however the profits are distributed more widely and the earnings are proportionately reduced.

Borrowing funds of course comes with risk, as those loans must be repaid. Business owners sometimes get caught in the trap of financing long term projects with short term money - they are therefore at the mercy of having to always roll over that debt, and potentially also seeing rates go up, sometimes dramatically. Also, a business can carry only so much debt, at which point cash flow becomes a potential problem if the company is over leveraged.

Currently rates are very low for businesses that have access to capital. Therefore in many cases it might make sense to lock into longer term loans in the current attractive rate environment.

When the business owner has made the decision to purse business loans the old Boy Scout model works very well - BE PREPARED ! Business owners that do their homework will usually be successful. Lets not forget the banks and finance firms are actually in business to loan funds. Naturally collateral, or additional collateral certainly improves the chances of debt financing success and loan approval.

Debt and equity financing as a sources of capital should be used for the right reasons - expansion, seasonality of business, increased inventory and working capital that will increase sales. Funds that need to address business inadequacies such as poor management, financial losses, falling sales, etc are very difficult to come by!

In summary, business owners should carefully consider the positive and negative effects of additional debt or equity capital. Once they have made an informed decision, either on their own or with a trusted business advisor they should consider the cost of that capital and how it is best achieved.


Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

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

Government Loans In Canada : Govt Small Business Loan Eligibility Explained

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Is Your Business Eligible For A Govt Guaranteed Business Loan ? Answer : Probably

OVERVIEW – Information on government loans in Canada . The Govt Small Business Loan Program is a great financing solution for many companies. Eligibility is explored and clarified

The Govt Small Business Loan in Canada (by the way, it’s not that small) is misunderstood by many business people and entrepreneurs. Are government loans right for your business? Are you eligible? We're cutting through the chaff for those answers. Let's dig in.

Whether you are starting a business or already growing one the government loan program is potentially an excellent way to achieve that goal. Unlike traditional bank and alternative financing solutions they have the backstopping of Industry Canada, who sponsors and monitors the program.

The govt is a guarantor for the majority of your loan!

What is often misunderstood is that the Govt/Industry Canada is not involved in the daily admin or approval of individual loans. They have chartered our banks to run the program. Major misconception: Removed!

What does the business owner/entrepreneur need to consider when considering a Govt guaranteed small business loan. Issues to consider are:

What will the funds be used for (This program is only for equipment/fixed assets, leasehold improvements, and real estate)

The amount of the loan requirement - (The program was recently increased to 1 Million dollars!)

Term of the loan - (typical terms tend to be 3-5 years, occasionally 7 years for longer life assets)

Qualifications of the program - ( The owner must be able to commit to a partial equity/down payment position in the loan - Typically there is no other ' senior lender' in place - Owners must have decent personal credit and are often judged on their business experience and past business expertise)

Always remember that these loans are not the only alternative for business owners and financial mgrs to consider. Both traditional and alternative financing is available for many of your business needs - These other solutions include:

A/R Financing

Inventory loans

Non bank asset based lines of credit

Equipment financing

Sale leasebacks

Commercial mtge refinancing

SR&ED Tax Credit Loans

Royalty Finance

Unsecured cash flow loans

Working capital loans

The attraction of the Government guaranteed Small Business Loan is of course the guarantee of the govt on your loan. Without the aid of an advisor many business people find the process cumbersome with the expertise of an expert.

Both the attractive rates of the Small business loan program as well as the uses of funds make these loans very desirable. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your loan and cash flow needs.


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

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