Confidential Cash Flow Factoring - Turn Accounts Receivable Into Your Best AR Finance Strategy

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We are going to demonstrate how a little known, and in our opinion almost a secret strategy can called confidential cash flow factoring can turn your accounts receivable into a virtual cash flow machine, turning past AR finance obstacles into cash flow solutions!

Search engine analysis will show you that thousands of Canadian businesses search everyday for what they hopefully believe will be valuable information around the most popular method of business financing today. Those businesses, of all types and sizes by the way (even the largest corporations in Canada) want to know why cash flow factoring offers unlimited unlocking of cash flow based on your sales and receivables.

Initial explanations and overviews to clients sometimes become bogged down in key issues such as the cost of this method of AR finance, and, equally important, is the unwillingness of some clients to accept how invoice discounting (that's another name for this type of financing) works.

Canadian business owners and financial managers want to like a good thing, at the same time they want to know how it works and how they avoid any pitfalls. Lets discuss the ' how it works ' portion first and then share with you the method we believe eliminates the major pitfall perceptions viewed by many firms considering this type of financing.

We'll focus on small and mediums sized business - the larger corporations have access to all sorts of financing and external finance strategies - while the small and medium sized businesses in Canada tend to rely on their own cash flow to fund their ongoing growth and working capital. In fact many firms realize they have potential to grow sales and profits, but cant because of that lack of working capital.

Back to the 'how it works'! Cash flow factoring of accounts receivable is the ongoing sale, in whole or in part of your sales invoices as you generate them and deliver products and services to your customer. The invoices are purchased at 1- 3% discount from yourself, and you receive cash, 99% of the time the same day, for those sales. So, in effect all your sales now fuel that cash flow machine you have turned your company into.

So far, so good, right? Where complications arise, especially in Canada, is the fact that this type of financing requires your client to be notified of the process, directly, or indirectly, and payments are required to be forwarded to your factoring finance firm. Canadian business, in our eyes, has a reluctance to involve their customers in their internal financing policies, and challenges. As a result, many firms are skeptical of entering into AR finance of this manner.

Is there a solution? We told you there was - it's a breakthrough called confidential invoice discounting. This type of financing comes at the same cost, allows you to bill and collect your own receivables, and gains all the benefits of that cash flow factoring machine we turned your company into.

Speak to a trusted, credible, and experienced Canadian business financing advisor who can put you into a proper AR finance facility, allowing you to reap the benefits of cash flow invoice financing, while at the same time allowing competitors, customers, and vendors to remain exactly where you want them to be, outside your financing strategies and challenges! Let's let your competitors try and figure our how you're doing so well in both growth and profits.

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


Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

You Can Finance A Tax Credit? Are You Kidding? Financing Film, Media and SRED ( SR&ED ) Credits In Canada

The Art Of Tax Credit Financing – Easier Than You Think!



Information on the financing of tax credits in Canada . Film financing, SRED research and Media credit claims can all be financed for cash flow and working capital finance solutions







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Are we kidding? Definitely not! Canadian business owners, including those in the film and video industry in this case can access much needed funds when it comes to film tax credit financing and SRED (SR&ED) finance. And that includes media tax credits also, as that is probably one of the fastest growing aspects of the entertainment industry.



The good news is that you don't need any secret techniques to complete the monetization of tax credits in Canada. Frankly, compared to some comparable U.S. programs it could not be easier and more straightforward.



As we have noted, today we are primarily talking about 2 specific tax credits when it comes to financing - the first is the ' SRED' program, and , at the opposite end of the spectrum an industry fraught with excitement ( and frustration?) , film, TV and digital media projects.



Let’s do the SR&ED recap first! We can safely say that, more than ever, its all about the quality of your claim. The ' advisors' and ' SRED Consultants ' are a mini industry in Canada - in effect they are the brain trust preparing the majority of claims in Canada.



The majority of transactions completed by these consultants and advisors bill their work on a contingency basis, in other words they are assuming a large part of the risk on the acceptance and approval of the claim. It's of course up to you as a business owner/manager to source a consultant that’s capable and experienced, as different industries have different nuances.



It's their work that will be viewed by your CRA office when it comes to legitimacy and amount requested. The fact that the SRED credit is a non repayable cheque from the government allows thousands of Canadian corporations to access billions - yes that’s billions with a ' b ‘, of dollars that is used for further research , working capital, basically any general corporate purpose .



Timing is always a discussion point in SRED claims. First time claimants typically might have their claims audited from both a combination of technical and financial accuracy. That of course always comes back to the quality of your claim.



Let's move on to the subject of... ‘Cash '. Not all SRED claimants know their SR&ED claim can be financed. And the good news, it’s hardly a complex proposal. A basic business application that includes your firm’s financials, a copy of the SRED claim, and some supporting information on the claim and you company is all you need. SRED loans are typically done at 70% loan to value, simply meaning that for every $ 100,000.00 of claim your loan amount be in the 70k range. And the monthly payment? 0. Yes Zero. That’s because your loan is repaid when you receive your government chq - the remaining 30% comes back to you less financing costs.



One of the most dramatic changes in SRED financing is that fact that you can even get accrual financing these days. That simply means you can cash flow your claim prior to filing it, as you spend and recoup funds. Now that’s creativity.





Canada is a leader in film, TV and digital media incentives. And those incentives, aka the ' tax credit ' can be monetized. And that includes, as we have noted the digital media tax credits that are starting to be a huge part of the industry. The largest factor in the make up of the digital credits is the emphasis placed on recovering your actual labor expenses. Simply speaking, you're recovering, via a non repayable credit, a majority of your salaries on your projects.



Using Ontario as an example it is safe to say that your actual programmers, contractors, employees, etc must reside in Ontario. That makes sense, but the Media tax credit is available in pretty well all the provinces of course.



Generally speaking your film, TV and media claim has significantly less risk from an audit or claw back perspective. In other words, you just have to prove you spent the money which can easily be verified via your payroll records, etc.



The process for financing film, TV and media credits. Same as our SRED. A basic application, copy of your claim and supporting data, etc. And those same financing criteria remain intact, relative to amounts financed, etc.





Our bottom line today? Film tax credit financing, SRED finance, and Media tax credits are viable cash flow assets for any owner of the credits. Use them to grow your company, complete your projects, or start another project. Speak to a trusted, credible and experienced Canadian business financing advisor today.

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


Click here for 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 .

' 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

Cash Flow Financing ! Problems And Oh Yes Business Solutions !

Two Great Tips On The Cash Flow Conundrum!

Information on cash flow financing solutions and techniques for the Canadian business owner and manager . Problems can be solved via internal techniques and real world working capital tools.

Cash flow financing for your business. We're sharing some solid solutions and tips for business finance problems and challenges.


Whether your financing challenges are temporary, or seem to be occurring all the time the Canadian business owner and financial manager is always looking for a fix to that dilemma. So our focus on strategies and straightforward business financing methods that... you got it... fix the problem.


Tip # 1 - Don't pay anyone! Well we're kidding of course, but a better way of saying what we intended to mean is that you can manage a lot of your cash by using an internal solution... payables management. The trick of course is having key vendors and supplies that value your business and want to work with you to keep your business - somewhat of a classic win / in scenario, don't you think.


The ability to turn your stated 30 day terms into 60 and 90 days with your vendors allows many companies to actually become self financing. That's almost cash flow nirvana - not borrowing and growing your business. It's no secret that some of the largest companies in the world pay firms such as yours slowly just to optimize their corporate cash flow. The nerve of those guys.


Our final point on this technique is simply that you don't want to end up ruining a key supplier / vendor relationship, so a proper sharing of the facts keeping in mind the value of the relationship is critical.


Tip # 2- Accelerate collections, finance receivables, and better yet... do both! When we talk to clients about their cash flow financing challenges it’s often about their customers owing them money and not paying. The internal things you can do to fix this problem are of course to be more firm with collections and enforce your terms. Big companies hold shipments to their clients, so you should not be afraid to also. We'd also consider raising prices to clients that don't pay. Just keeping a constant watch on your days sales outstanding or collection period is going to make you a true ' Master' of business solutions and solving those working capital problems .


You might also want to offer a discount for prompt payment. One key point here is that you need to have some decent gross margins when it comes to offering a typical 2% discount for prompt payment. But don't forget also that you can take those same funds you receive and take discounts with your own suppliers. Another key concept here is to understand your borrowing rates and bench mark them against discounts you might offer for prompt payment

Solutions for cash flow
abound in Canada. It's all about picking the right one for your firm.

They include:


Receivable finance

Working capital term loans

Asset based lines of credit

Business commercial bank facilities

Tax Credit Monetization

Supply Chain Finance

Securitizing your receivables or contracts


Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business problems via real world solutions.

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

Click here for 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 .

' 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

What’s Your ABL Finance IQ? Info On Canadian Financing By Asset Backed Lenders !

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Business Asset Based Lines of Credit

Information on ABL finance in Canada . What is this type of asset backed financing and who are the lenders that offer this business line of credit? Asset based lines of credit work!

We're pretty sure that most Canadian business owners consider themselves knowledgeable about their business and options they have in both operations and financing. But seriously, how much do you really know about ABL finance - were you aware that asset based lines of credit is the ' new financing ' paradigm shift in Canada .

So who exactly are these assets backed lenders and why can they take your firm to new heights in growth? There isn’t a day when we don’t read of many ABL ( asset based lending ) transactions happening here in the U.S. - for tens of millions of dollars.

Is that happening in Canada but we just didn’t know it? Well yes and know, in case you haven’t heard we've got a smaller economy, but we can assure readers that ABL Financing is becoming a mainstream solution to Canadian working capital and cash flow needs .

Did you know that in the last decade over 10 Billion dollars of ABL financing was taking place in Canada on an annual basis? Right under your eyes!

But we're realists and we fully realize that many Canadian firms aren’t aware that asset backed lenders exist, let alone are using them. Ours therefore is to inform!!

We do forgive some quasi well informed clients that have a perception that ABL finance was a financing of last resort so to speak. The reality is that ABL does in fact finance many firms that are challenged and can’t obtain traditional bank financing.

But, and its a big but, thousands of firms in Canada utilize asset backed lenders for their operating lines of credit to facilitate growing their companies, expanding into new lines or geographies, acquiring competitor, or simply re financing their company in a manner that works better!

So why is Canadian business migrating to this new form of business financing? Simply because it’s more creative and flexible than the more formulaic approach that our great friends at Canadian chartered banks take.

And what is the cost of this type of financing. More often than not that’s questions number one when we sit down with clients. We'll put on our lawyer hat and say ' it depends ' which isn’t quite the answer we think you were looking for..!

The reality is that ABL financing is based on size of facility, who you are dealing with, your overall asset quality (abl finances receivables, inventory and equipment and real estate) as well as your firms overall credit situation - i.e. good / bad/ugly. (Yes ABL finances ugly.

One or two more things to know to fill up and increase your intelligence quotient (IQ!) on lenders that offer this financing . Simply that many are non bank independent finance companies , some are U.S. based but doing great jobs here, and some are Canadian but smaller in size - but still able to satisfy the majority of Canadian firms .

Well that’s it... Oh! Did we forget something? Oh yes. What is ABL by the way!! Simply a revolving line of credit that lenders against the value of your current and fixed assets on a daily revolving basis. It's a business line of credit!

Looking to fill up more on your ABL IQ? Speak to a trusted, credible and experienced Canadian business financing advisor who will help you determine if this facility is the best thing that ever happened to your business financing needs.


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


Click here for 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 .

' 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

5 Revolutionary Breakthroughs In Working Capital Business Loans & Cash Flow Canada !

New methods of working capital financing in Canada

Information on working capital and cash flow business loans and non – loan solutions for Canadian business

Mission impossible? We're going to try and re program your business brain around some innovative ways to look at working capital and cash flow solutions for Canadian business - and it might be a loan scenario... and then again it might not?

And about that word ' revolutionary ‘... we’ll leave that up to you to decide. However, we're quite sure we've got some working capital and cash flow innovation coming your way.

A popular term these days is ' the liquidity gap ' - it is simply the challenge that small and medium sized businesses tend to face in Canadian business financing. When you really think about your balance sheet that liquidity gap more often than not tends to focus on the investment you carry in receivables and inventory.

Also, financing options utilized in the past - we tend to call them ' traditional financing ‘, don't seem to be available, and when they are they don’t suit your needs re size, type of facility, and external collateral and guarantees that might be required.

No one is more a fan of Canadian banks than us. We love them. Canadian business owners and financial managers seem to struggle with why they can’t get financing for the bank. We heard a great explanation of that recently.

So, have we got a great story for you? As Canadians we put our funds into a bank, we also seem to have this feeling that we should be able to get it out anytime we want it. That's the story! Because in a simplistic way the banks can't really over lend to small and medium businesses because that is not the deal it made with me as a depositor. So I apologize for that! I made a deposit; I didn't contribute to a start up hedge fund!

Anyway... working capital and cash flow solutions are clearly available from Canadian chartered banks - but repayment from you must be certain- so have those good balance sheets and additional collateral and guarantees ready.

Back to those ' revolutionary' working capital solutions we have talked about. And as we said, they might not be a pure ' loan ‘.

From our point of view some of the most innovative ways to achieve 'cash flow nirvana ' might be facilities you have never heard of. What are they?

5 of the best solutions you should consider are as follows - purchase order financing, asset based lines of credit, merchant advance loans, C I D receivable financing, and tax credit monetization.


A short recap of those? Purchase order financing allows your supplier to be paid directly by the financier. Asset based lines of credit are facilities based on current and ongoing values of your total inventory and receivables. Are you a smaller or retail oriented business? Merchant advance financing provides cash flow today for sales you make tomorrow.

Everyone has heard of factoring. But C I D receivable financing provides you with the same benefits, i.e. same day cash flow on sales, but you bill and collect your own receivables without notification to clients, suppliers, etc. And finally, got a SRED claim to be filed? Monetize it today with a SR &ED bridge loan.

Want more info? Seeing the potential benefits already? Speak to a trusted, credible and experienced Canadian business financing advisor for a working capital business loans and solutions that maximize your cash flow requirements. It's as simple as that.

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


Click here for 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 .

' 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

Power Your Business Financing with Canadian ABL Services : Why Asset Based Lending Works

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Unsurpassed Financing Flexibility With Asset Based Lending

Information on Canadian ABL services and why asset based financing and lending eliminates working capital challenges

It's always about the bank. Well ... not always... It seems that Canadian business financing continues to evolve and Canadian ABL services via asset based financing credit facilities are slowly getting to the top of the popularity pile.

Why this type of financing work well and why does is it becoming the accepted alternative to traditional Canadian chartered bank financing? We think we know why.

Although it might seem that the Canadian business and economic environment changes quickly these days we maintain that for the last two or 3 years the one thing that hasn’t changed is the ability for Canadian business owners and financial managers to get ' traditional ' financing from those great folks at the bank.

Skepticism and bank regulations in Canada seem to eliminate more and more qualified business borrower’s everyday. So it’s a struggle and if you are a small or medium sized firm in Canada the ability to grow or change your business is difficult.

Enter ABL lending in the Canadian marketplace. This type (we call it non-bank) of revolving credit facility is the new ' band aid ' for almost any size business, filling the void between traditional financing.

So why an asset is based lending facility able to work for your firm when a bank facility might not even is attainable. We guess it’s about risk and reward, in that for the same or higher cost almost any decent sized business has the ability to qualify for ABL services and financing.

The other side of the coin is also that the whole approval process is often quicker, in that there is only one key agenda item to review - your assets. Typically these assets are receivables; inventory and equipment, with real estate a borrowing possibility also, included right in your asset based lending facility.

We speak of the ' power ' of ABL. The true power lies simply in the fact that the assets we mentioned that are used as collateral are margined significantly higher than in the manner that a bank would margin those same assets. So it isn’t your financial statements strength that has the power - it’s those ' assets ' within the financials!

The broad appeal of asset based lending also lies in the fact that it’s flexible, that the other side of our ABL power equation. Your firm doesn’t necessarily have to be profitable (it helps ... but not required) and even if you face current financial challenges and setbacks you are still eligible. Even special loans clients can use ABL to escape from the restrictive claws of a special loans environment.

So whats our bottom line - it simply that if the Canadian banking environment continues to be unable to serve the demands of fast growing or challenged business... well... ABL financing services will step in and nicely fill that gap.

Ultimately it still might be your business goal to obtain a ' traditional ' facility. That’s ok of course. In the meantime thought consider the true power of asset based lines of credit as a funding option that will meet all your financing needs... today! Speak to a trusted, credible and experienced Canadian business financing advisor to eliminate that uphill financing battle you've been facing.

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

Click here for 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 .

' 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 Funding : What Factors Determine The Type Of Debt Financing Your Business Needs !

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Canadian Business Financing Strategies

Information on the advantages and potential risk of debt financing in Canada . Factors that determine business funding when non equity solutions are required to fund Canadian firms

Debt financing. When it comes to business funding that is ' non equity ' in nature the busines owner and manager can benefit from a number of business financing solutions. A good solid way to begin is to ensure which solutions are available and to ensure you understand the pros and cons of each.


When it comes to debt finance solutions it's paramount to remember that the lender, finance firm, bank etc is not sharing profits and is at risk - as such pretty well their only focus is getting paid!



In a way that’s the benefit, i.e. one of our ‘pros’ of taking on debt - You know exactly what conditions and rates come with the loan ( hopefully!) - It's just up to you to ensure you have the cash flow to repay. So broadly speaking, you're very much in control, unlike being at the whims of an equity investor.


Let's recap some of the key sources of debt financing in Canada - they include:


Bank loans

Government Small business loans

Leasing

Mortgages


Also included in our list are:


Inventory financing

Receivables factoring

Asset based credit lines

Tax Credit Monetization

Supply Chain /PO Finance


These latter 5 monetize current assets so they are in fact a bit of a hybrid.


Most companies very quickly discover that no firm can be properly financed with 100% debt, so it’s important to keep in mind the relationship between debt and equity. That equity in fact becomes the business owners risk and that’s why it's probably also prudent to manage your debt load.


What factors affect a company's ability to get debt financing? In smaller to medium sized firms the actual credit status and history of the owners is very important.


Is size important in debt financing? It sure is! Many firms constantly struggle to acquire more debt based on their growth needs. We can pretty well guarantee to clients that if the proper cash flow projections arent available, realistic and accurate that not a lot of debt financing is going to take place.


Rates are of course critical in debt financing, and are typically commensurate with the risk profile of your firm, as well as the nature of the firm or bank you are dealing with. The same pretty well goes for collateral, whether that is personal or corporate as a ' back up ' to the debt financing facility.


It's critical to exercise diligence and caution when taking on debt for your firm. Just the actual ratio of debt to equity is a good number to always monitor ... 2 Time debt to equity is a commonly respected ratio. When it’s higher than that you're force to generate extra cash just to pay and service that debt.


We're pretty sure that we make debt sound like somewhat of a burden. That is not the case though, as the right amount of debt and overall leverage can make your company more successful, and if there is one guarantee in life it’s that debt is cheaper than equity. And remember also that there are a number of non bank firms that can supply the debt you need if you are rejected by our Canadian banking system.



In many cases rates and size of the loan or loans you seek might be appropriate but the overall conditions the loan demands may not be suitable. That's when you might well seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your debt financing and funding needs.

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

Click here for 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 .

' 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