How To Borrow Against Sred Claims- Use Your sr ed (SR&ED ) tax credits & Finance For Cash Flow Today!

In the world of finance more often than not today is better than tomorrow, and when it comes to borrowing against your sred claims your ability to monetize sr ed tax credits for working capital is the ultimate win win situation . Here is why!

The Canadian governments Scientific Research and Experimental Development (aka ‘sred’, 'sr&ed') program provides in the area of 4 Billion dollars per annum to Canadian businesses in the form of a non repayable tax credit cheque. The only reason you wouldn’t get your cheque is if you had corporate tax arrears, and that’s still a good thing we think, because at lease then the government offsets your tax arrears with your credit. (By the way, we don’t recommend tax arrears as a financing strategy!)

Your company is using the program for all the right reasons, i.e. improving products and services, staying competitive, etc. But many firms either haven’t heard of or lose sight of the fact that the sred tax credits can be even more 'accessible ' if you will, when you borrow or finance your claim.

Turning your sr&Ed tax credits into valuable cash flow and working capital moves you one step ahead of your competitors we have always maintained to clients. Why. It's simply the old finance adage that a dollar today is worth more than a dollar tomorrow, as it can be re invested in your operations for a variety of reasons.

A typical question we get from clients considering the financing of a sred claim is ' what are we allowed to use the funds for?’. And of coruse they love the answer, which is simply for any general company purpose you choose - typically that becomes reduction of working capital, clearing up or lowering payables, and just general day to day operations.

Financing your sred claims in essence ' invigorates your working capital.

So who finances these claims and how would be describe the process. Is it complicated; easy, how long does it take? Those are the typical client questions in consideration of sred finance.

We can make a broad pretty safe statement that banks in Canada don’t finance sr&Ed claims for your tax credits. If they do, it is in conjunction with other security and arrangements you have with your bank. Most firms we talk to either have approached their bank, been declined, or simply have not been aware that sr Ed credits can be financeable.

We recommend you speak to a trusted, experienced and credible Canadian business financing advisor who is knowledgably in the area of sred tax credit finance. That will shorten your process, maximize the amount you can receive under you claim, and in almost all cases simply reduce the time and effort you might normally expend to investigate sred financing.

The reality is that a sred finance expert can usually originate a full financing of your claim in a manner of a couple weeks, allowing for simple basics such as an application, review of your actual sred technical filing, etc.

So, can you borrow against sred claims? The answer is of course yes. Should you? That’s your decision, but if you need cash flow and working capital today from a non repayable government tax credit that you certainly know what to do now!

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sred_sr_ed_claim_claims_tax_credits_finance.html

How To Get And Finance A Franchise Purchase In Canada

The decision to both get a franchise opportunity and then finance a franchise purchase are of course intertwined. Is picking the right franchise more important than financing the new business venture ? - we're not sure – probably equally as important - but let’s look at some solid tips and info on franchise financing in Canada, how it works, and how that choice or pick you just made can be translated into a successful entrepreneurial career.

There is a whole industry known as ' franchise consultants ' that have the skills and ability to help you assess which type of business best suits yourself. If you talk to these people it always comes down to matching your basic personality to your business strengths and interests. Your ability to match those against a solid business opportunity in the franchise industry will ultimately be your success.

We're the first ones to agree that when you pick a franchise that matches your skills and overall financial capacity your chances of profit and success greatly improve.

So, you have made you finance decision, now how do you get and finance a franchise purchase. In Canada there is one major program our clients use to qualify for franchise financing - it’s a loan program called the CSBF / BIL program, which is the way in which the majority of franchises are financed in Canada. Utilizing this program properly will guide you ultimately to a well financed business that should allow you to meet your personal and business goals.

Your ability to get a franchise purchase closed successfully requires you meet the requirements of your franchisor, i.e. your new business partner so to speak, as well as the lender. You need to understand your initial costs, which are often a combination of soft costs and hard costs. In our experience you will have greater challenge financing the soft costs; they include the franchise fee, and other misc items that are not tangible assets.

The BIL/CSBF program we mentioned covers assets such as fixtures, equipment and also leaseholds. Your ability to finance leaseholds under a franchise loan is very important, as these items are typically not able to be financed under conventional means.

Money. Yours and the lenders. By that we are referring to your ability to put a reasonable down payment, or what the lender calls ' equity ' into your transaction. And, you're right. We already know your next questions, because it’s been asked a thousand times: ' How much do I have to put into the business to get and finance a franchise purchase properly ‘. Answer : It depends, but a typical franchise investment should be in the 30 -40% per cent range to allow you to have the right combination of both debt ( i.e. borrowed funds) and equity - which is your cushion that allows you to maintain proper leverage around how much debt the business can manage .

One mistake many new franchisees make is that they finance the business from an opening purchase perspective, and aren’t focusing on ongoing working capital needs, which is in our opinion just as important.

In summary, use you own skills or that of a consultant to match your strengths and experience and personality to a franchise that will work for your from a personal and financial goal perspective. Speak to an experienced, credible and successful Canadian business financing advisor on how to best structure the finances around your purchase. Utilize the BIL/CSBF program to the maximum that you can, as it provides solid terms, minimal guarantees, and great rates and flexibility.
P.S. Keep us posted and congratulations on your new role as business owner and entrepreneur.

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

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/how_to_get_and_finance_a_franchise_purchase.html

The Key To Working Capital Financing - Asset Based Lenders

Wondering how your competition seems to have all the working capital financing they need and you don’t - the key to that answer might just be asset based lenders and the asset based lines of credit they offer to Canadian businesses such as yours.

Let's examine how this relatively new and unique method of business financing can totally alter your business financing success.

The acronym for this type of financing is A B L ; simply speaking its daily cash flow provided against your current, and sometimes now so current assets . What do we mean by that? Simply that this facility allows you to margin your receivables, inventory, and in most cases, should you choose, fixed assets and real estate. You are probably saying to yourself that you could arrange financing on your own re those fixed assets and real estate - but we are talking about using those assets as collateral for your daily revolving line of credit. So you aren’t borrowing, you are not bringing debt on to your balance sheet, you are just leveraging your ' assets ' (that’s the 'A' in ABL!) for daily cash flow and working capital.

And why are we claiming that this type of working capital financing just might be your key to business success. Simply because you have probably found it has been challenging to get the full amount of business credit you need. In some cases you might have discovered its been a challenge to get business lines of credit of any manner.

So if your competitors are using this type of financing today, who exactly is eligible for it, and is your firm a candidate. The answer is simply that if your firm has a combination of 250k in working capital assets you are immediately eligible for asset based lines of credit. We would add that firms with smaller asset sizes can still monetize those receivables via invoice financing or discounting, but that’s not our key focus for today’s information exchange .

So now you now the offering are out there. But why should you consider it. Simply because your firm might be in one of a number of special situations - that includes issues such as your need for increased daily operating cash, you wish to merge with or finance an acquisition, you have been unable to obtain inventory financing elsewhere, you are growing to quickly for traditional Canadian chartered banking financing, etc ! We are pretty sure you get the picture now!

The benefits to this type of business financing must by now be pretty obvious. It’s all about access to working capital financing and cash flow that you couldn’t access before. Assets that couldn’t be financed are now financeable, and inventory financing, previously limited or unavailable now looms on your growth horizon.

Who are these asset based lenders, and what is the cost of this financing? We'll leave that one for another day, but if you want to investigate asset based lines of credit for your firm ( remember , your competitor probably already has ) then speak to a trusted, credible, and experienced Canadian business financing advisor who will assist you with identifying benefits and the best solution for your current strained needs in business finance .
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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/working_capital_financing_asset_based_lenders.html

Stop Dreading Working Capital Financing – Cash Flow Lending and Loans That Make Sense

Managing and getting working capital are two different things, and worrying about cash flow financing and what type of lending and loans are out there is of course another, and probably the issue that concerns your firm most.

Let's looks at some key issues around sourcing working capital for your Canadian business, although we are quite sure our information applies universally. How you have managed or are managing your internal financing is directly related to what solutions you have available.

Let's also be clear on what we are talking about, which is essentially your current assets and current liabilities. The accounts consist of receivables, inventory, your access to credit lines, and on the other side of the balance sheet your accounts payable. You want to have sufficient funds to satisfy your short term creditors, i.e. your suppliers, make any long term loan payments you have, and, most critically access cash for day to day working capital and growth.

We have mentioned how you manage your cash flow. Most business owners we meet do it intuitively, i.e. your business has a flow or rhythm around paying suppliers, billing your product and services, and finally creating receivables and getting paid. We also find working capital an interesting term, because in reality the accounts we mentioned, i.e. a/r and inventory are in effect tied up . They are unable to be monetized or cash flowed, and that’s why you need working capital solutions.

Most business owners don't know the technical term for monitoring their cash flow and working capital. A great tool is called the cash conversion cycle; another is called the DuPont Cycle. Each of those two tools provide you with some very rudimentary calculations you can make to monitor how fast a dollar travels through your company, and what effect on your profits and returns faster turnover has . Check those two out!

So, we've done a fairly good job of identifying our issue and problem... you were probably looking for solutions, right? The good news is there are several. The optimal solution in any business is to have your suppliers finance your firm - your cash flow increases when you don’t pay suppliers and are billing and collecting your own receivables. However, slow down payables to an extreme is not a recommended solution, certainly in terms of your supplier’s way of thinking!

The solutions to cash flow financing in Canada are as follows: asset based lending, receivable financing, purchase order financing, and working capital term loans. All these solutions are either very suited to your firm or not applicable.

Our favor rite and probably most recommended client solutions asset based lending; it’s simply a revolving line of credit on which you borrow daily against A/R and inventory. Yes, we said inventory. And these facilities are not loans per se; they are simply credit lines you access for your assets. Smaller firms should consider C I D invoice discounting, it’s our recommended solution, allowing you to bill and collect your own receivables but monetize them when you want. That’s true cash flow financing.

Whatever your challenge speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in accessing working capital and cash flow financing that most makes sense for your business growth and profits .


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Stan Prokop - founder of 7 Park Avenue Financial -


http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/working_capital_cash_flow_financing_lending_loans.html

Work With Equipment Leasing Finance Companies For Industrial Equipment and Computer Financing Needs

The decisions need to be made - namely should you lease or buy your new industrial, business equpment or computing technology. And are equipment leasing finance companies your best solution for your business financing needs.

Sooner or later all companies in Canada need to choose between leasing equipment, understand the benefits of that finance decision, and most importantly know who to turn to or partner with for their leasing acquisition financing needs.

Let’s make sure you understand why you should carefully consider the key benefits of lease financing and ensuring you have made the best equipment acquisition decision. While it's a U.S. statistic, we're pretty sure that it’s the same here in Canada - namely that sooner or later over 80% of all business chooses lease financing as a business option for acquisition needs.

That eight out of ten ratio is a powerful one, so why in fact did those firms choose this method of business financing. The answer is actually quire easy, Benefits! Let's examine he key benefits you should focus on, and, as importantly, ensure you understand the costs, any risk, and the processes involved in making a solid leasing decision. It's all about doing your homework, being prepared, and working with the right parties.

So let’s first recap those benefits. The bottom line is flexibility, and with this type of financing what else could be more suitable. Simply because whether you are a start up, or Canada's largest corporation, whether you are leasing a photocopier, shop floor equipment, or computing technology... you guessed it, equipment leasing finance companies do that... for your firm !

Worried about your equipment or assets becoming obsolete - (think computers!). Don’t worry; simply match your lease to the term of the expected useful life of your computers, telecom equipment, software, etc. Worried about being burdened with asset disposition at the end of the lease term. Don't be. Simply enter into an operating lease that allows you full control in returning, keeping, or even upgrading that asset.

It of course always comes back to cash flow, and we can assure you that it’s easier to make a 3k monthly payment than to write a cheque out of your operating line of credit for 100k. Whether it's computers, industrial business equipment, or your corporate jet it’s always about cash flow and working capital conservation in business. Having just come through the 2008-2009 recession cash flow and its conservation still remains king.

There are many slick tools to determine whether you should lease or buy assets - they are available everywhere. We always encourage clients to make an informed lease versus buy decision for their asset financing needs. And, getting back to those benefits, numerous accounting and tax implications also play favorably to the leasing decision.

Are there any disadvantages to lease financing? We don’t really call them disadvantages, but there is no perfect holy grail for business financing, and when you lease you should understand of course the agreement is non cancelable, might have miscellaneous admin fees attached to the transaction, and on occasion a down payment or first and last months payment might be required for credit reasons .

So, whats next then? If you want to meet your equipment leasing finance needs seek companies that are your best partner for asset size, your firm’s credit quality, and suited to your geographical needs. Don't have a lot of time to investigate the process? Simply speak to a trusted, credible and experience Canadian business financing advisor who will work through the process with you, successfully.




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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/equipment_leasing_finance_companies_computer.html

How To Obtain The Best Receivable Financing In Canada and Why Factoring Receivables Works Best When Its CID!

Your mission, should you choose to accept it? It's finding a financing receivable strategy that works, is cost efficient, and allows you to mind your own business when it comes to this popular method of Canadian business financing!

Factoring receivables gains daily momentum in Canada - If you feel either confused, mis informed, or just generally out of sync with how this type of financing works and what it costs lets get you up to speed.

It's actually not as complicated as you thing - on a daily, week, or monthly basis, (it’s your call) you provide your invoices and proof of delivery and shipment . And then here's the good news, you receive cash, the same day, for those funds. Actually, to clarify, the amount of the advance on your invoices is actually 90% - you receive the rest of the funds, i.e. the ten per cent, when your customer pays - less the financing charge.

And we know from experience that clients want to always know and talk about that financing charge, so let’s clarify that point right away. First of all did you know that some of the largest corporations in Canada utilize this method of financing receivable portfolios? Their cost is often either the same as traditional bank financing, and in some cases less.

However the majority of business in Canada that seek out factoring receivables actually pay anywhere from 1 - 2.5% per month for the cost of factoring. But let’s be clear here, receiving those funds when you invoice allows you to maintain a totally positive cash flow, and at the same time continue to grow sales and profits. We also point out to clients that they are now in the enviable position of taking 2% discounts on all their qualified purchases with their suppliers, and, if they are really smart, can negotiate better terms and pricing from their suppliers on product.

We referenced the term C I D when it came to our favorite, and recommended financing receivable solution. So what exactly is C I D? It's a unique form of factoring, that by the way, costs the same as other types of factoring receivables financing. However, unlike traditional A/R financing it allows you to bill and collect your own receivables on a confidential basis. Your suppliers, clients, etc are simply not aware of how you are financing your company, and we think that’s important. C I D is the acronym we provide for Confidential Invoice Discounting. So again, to clarify, you are financing your business on a confidential basis - your competitors who use this type of financing are not. That’s your key advantage, and we think it’s significant.

Selecting a receivables financing partner can be a challenge - simply because there’s hundreds of small and larger firms out there with difference criteria. You have to be able to distinguish between recourse and non recourse factoring, and if the firm even offers (or has heard about!) C I D financing. Other factors (pardon the pun) to consider are the size of your portfolio, misc fees that add up quite frankly, and must be understood or negotiated. And pricing is reflected to a certain degree by the size of your monthly receivable financing. A/R portfolios of 250k per month generally receive better pricing and structures.

Interested? Confused? Hopefully not the latter, but if you are seek out a trusted, credible and experienced Canadian business financing advisor who will steer you through the financing receivable maze - we're sure you'll come out the other side well informed and with a factor facility that works best.
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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/factoring_receivables_financing_receivable.html

Striking Gold With Film Tax Credits – Finance Ontario and BC Film Production Incentives

Prospecting for gold is probably tough, but we're quite sure prospecting for financing for your film, TV or digital animation projects is tougher. So why not get that ' striking gold ' feeling via Ontario and BC film production incentives and film tax credits.

The film industry in Hollywood North ( aka Canada ) is alive and very well thank you , and the generosity and relative straightforwardness of Canadas film tax credit system has sure helped in that regard .

There continues to be almost not a day when we don’t hear or read about various film tax credit debacles in the U.S. - ( The last title we say the other day read as follows " Officials prepare for a battle over whether to scarp 40M a year tax breaks for movie and tv ...' ) . That story originated out of Connecticut , and we're not pointing fingers at any particular state, its just that Canadian film tax credits for Ontario and BC Film production incentives seems to be a lot more easier and straightforward .. I guess we're biased a bit!

Canadian film tax credits and the financing of those tax credits have been in place for many years now. Each province has a film tax credit (there are 10 provinces in Canada) and the credit is in conjunction with CRA, which is the Canadian equivalent of the IRS in the United States.

As we have noted before Canada maintains that the money, jobs, and resultant tax revenue from the industry more than offset funds granted via tax credit certificates for the three parts of the industry - film, TV, and digital animation. (Actually there are some other credits for music and publishing).

Producers and project owners in both U.S. and Canada that choose to domicile there projects in Canada ( i.e. film them here, post produce them here, etc ) are in the enviable position of receiving funding for their projects from anywhere, in general .. from 30- 45% of their total budget . Yes, its still up to you as producer to arrange the other 55-70% but don’t say you haven’t a good start when you receive non repayable funds in the amounts that we have highlighted.

So you've 'struck gold ' with your tax credit certification? Is that all there is? Definitely not, as most producers and project owners choose to finance those credits for valuable cash flow and working capital.

By working with a trusted, credible and experienced Canadian business financing advisor you can get solid assistance in qualifying your claim, determining eligibility, getting your credits certified, and , finally, last but not lease , financing these valuable credits for cash flow and working capital for your current or next project . If that isn’t ' striking gold... we don't know what is!

--

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/finance_film_tax_credits_ontario_bc_production.html

Have Ontario CRA Sred R & D Tax Credits ? Finance Yours Today For Advantages Of Cash Flow !

Maximize or minimize ? What's best in Canadian business. In the case of taxes it’s minimize! In the case of cra sred R&D tax credits it’s maximize for advantages of cash flow!

Whether you are in Ontario or quite frankly in any of the rest of Canada how could you not afford to file a sr&Ed claim for the R & D your firm does on its innovative products and services? We are of course talking about the Canadian Scientific Research and Experimental Development tax credit program which provides refundable funds for a very significant portion of the funds your Canadian business spends every year in this key area the economy - i.e. the competitive edge area!

And, getting back to our maximize or minimize issue, recent figure suggest that almost 4 Billion (yes that’s billion with a b!) of cheques are going out every year to Canadian businesses such as yours. As we have said in the past, we are pretty sure you want those cheques to be cashed by your firm and not your competitor, since the funds don’t have to be paid back.

So, lets assume you are aware of the program, (many aren't) and lets further assume you are using the program either on a first time basis, or, if you're very lucky, you're a repeat offender! You therefore should be aware that your claims can be financed so you can take advantage of cash flow and working capital that would be beneficial to your firm today.

Many sred consultants (they are the specialized firms that prepare these claims) tell us that a proper preparation of your claim can exceed your initial estimates of what you can received by sometimes 11-200%. So you ability to create CRA SRED R & D tax credits that are of solid quality , file the claim, and then finance it for working capital simply accelerates all the benefits of the program .

Do you have to finance your claim? ask clients often? Naturally the answer is definitely not, but we certainly think you should consider it. Think of your claim as simply an account receivable, which of course it is. It's just that it's a very high quality receivable because it is a non repayable cheque that’s due your firm from the federal and provincial government. So in considering financing the claim you can of course simply wait for your cheque , or you can monetize, or 'factor' , or ' discount ' the claim . (All those terms are interchangeable and mean the same thing.)

Are CRA SRED R&D tax credits difficult to finance if you want the advantages of cash flow. Well, consider we a bit biased but we don’t think so, it’s a simple business financing application, with the additional back up being your sred claim and the required ability for your firm to be able to offer the tax credit up as collateral.

Speak to an experienced, trusted, and credible Canadian business financing advisor today to get more info on either the program itself of the financing of those R &D tax credits.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sred_cra_ontario_r_d_tax_credits.html

Can A Franchise Finance Business Loan Be Creative ? Here’s How Canadian Franchise Finance Works!

Is it actually possible to get ' creative ' when considering a franchise finance business loan for you new Canadian role as an entrepreneur in franchise financing? There are some tried and trusted rules we use in the franchise lending area, but a little creativity has never hurt anyone we believe!

If you haven’t considered how to finance your new business in the franchise industry then we feel it’s probably a little too late in some ways, as your ability to finance your business properly we think has a lot to do with the ultimate growth and success of your business. There are very focused lending sources for the franchise area of financing in Canada - the trick of course is to know what they are and more importantly how you can navigate the ' maze ' successfully.

The reality is that if you have some industry experience in your new business and a proper finance plan you have a much better chance of financing your business properly.

So, who can you turn to in terms of creativity and resources for franchise financing? Clients are amazed when we tell them the most creative partner in franchise financing in Canada is none other than the Canadian government !How could that possibly be? Simply because a program guaranteed by the government and administered by the banks could not be any more creative than this.

The program is the ' BIL ' loan program, and it provides you with financing up to 350k for your new business. Are the terms onerous? Hardly! The essence of the program is a 5-7 year term loan, with great rates, limited personal guarantees, and some other elements of flexibility. If that isn’t creative then we don’t know what is!

Naturally all the creativity in a business loan of that type for your franchise finance scenario should not be reliant on just one lender - the other lender is someone you know very well. Yourself. That's simply because when you look at the total financing of a franchise in Canada the two components are simply debt (the funds you have borrowed) and the equity, or money you have put in yourself. These equity funds, i.e. your commitment to the business, typical come from savings, the proverbial ' friends and family ' support, and investments or collateral that you have available.

Getting back to our key subject of creativity, our above noted BIL loan program only covers certain aspects of a franchise finance scenario. You can augment that loan with flexible equipment financing that has low down payments and extended amortization terms, as well as, in some cases, a working capital term loan.

We never forget to remind clients that the franchise financing plan is a two stage process, acquiring the business, and making sure they have some capital and funding to operate and grow their new business.

In summary, you can be creative when you are looking for info on how Canadian franchise finance works. You need knowledge on what funding sources are available that are specialized to the franchise industry, and assistance in executing a proper financial plan. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing that creativity!

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/franchise_finance_business_loan_financing.html

Why You Should Utilize Asset Based Lenders for a Revolver line of credit facility

Some Canadian business owners and financial managers aren't familiar with the term ' revolver line of credit ‘. So for clarity purposes it’s simply terminology for a business operating line of credit. It revolves, or goes up and down everyday, as your firm collects receivables, pays bills, buys inventory, makes loan payments, etc.

Naturally clients can be forgiven for asking '' What is the difference then for asking why asset based lenders offer a unique , and we think better revolving line of credit than perhaps their Canadian chartered bank can offer .

We're going to cover off the basics of a revolver line of credit via an asset based lending solution with a focus on ' why ' you should this type of business line of credit.

The reality is that asset based lenders are playing a more important role everyday in Canadian business - that’s simply because most business owners and financial managers agree that it is more challenging than every to meet their day to day financing needs with bank facilities . That is because banks place more focus on external collateral, operating results that meet their guidelines, and a lack of desire to finance items such as inventories, purchase orders, etc.

The key main reason why you should consider an asset based line of credit is simply that the firms that provide this type of financing specialize in exactly what you need - maximum financing for receivables, inventory, and equipment .

Very typical margining of these current assets in an asset based line of credit with a non bank is 90% of receivables, 50%or more for inventory, and full appraised value of equipment and other fixed assets. We have seen real examples where a revolver line of credit has tripled a firms borrowing power, even at better rates on occasion.

So clients start seeing very quickly why they should be utilizing this type of financing, they just don’t know with ' who ‘. There’s where it does get a little tricky, as firms offering this facility are less known than the banks, and are often independent finance firms of subsidiaries of U.S. banks that operate here in Canada. There is when its best to seek the services of a trusted, credible and experienced business financing advisor to match your needs with the right asset based financing solution.

Let’s summarize some key points that focus on the real issue we are talking about - why you should consider asset based lenders for your day to day operating needs.

First of all, size doesn’t matter in the asset based finance world. Facilities from 100k to many millions of dollars are available. We'll quickly add that some of Canada's largest corporations are financed by this method, we just don’t hear about it!

Other reasons why you should consider this type of Canadian business financing are as follows: you are in a turnaround situation, you can’t get equipment and inventory financing that you need to generate sales and profit. Other reasons include your growth - in some bank environments you are punished for growing too quickly, but asset based lenders raise your facility as you grow, with their only concern being the assets you have to cover the facility.

Make sense? We think it does, so speak to an expert business financing advisor on what the merits of a revolver line of credit are, and find out why asset based lenders may be your business finance savior in the current business financing environment.
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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/revolver_line_of_credit_asset_based_lenders.html

In Special Loans ? Here Is The Asset Based Lending Financing Alternative When Your Bank Loan is Called In

Trust us; we have heard the joke a hundred times - namely ' being in special loans is not really making your firm feel ' special ‘!

So, you are a Canadian firm that has had your bank loan called in - that’s of course the terminology used by Canadian banks when they terminate a banking relationship due to your firms covenant breaches.

Typically those ' breaches ' constantly revolve around a couple key areas : ratios out of whack , financial losses, cash flow generation challenges, your industry is out of favor ( think General Motors in 2008 - 2009 ) etc . Debt to equity seems to be the most common ' breach ' our clients face when they apprise us of being in a ' special loan' scenario.

What we won’t be sharing with you is of course why the bank has acted as they have, that’s between you and them. But here’s the good news, that there are immediate solutions to the special loan scenario, and they are available to your firm today!

The alternative of course to exiting special loans with a new operating facility is staying in special loans. That actually does seem to work sometimes, and over time the relationship is mended and you go back to your traditional bank financing facility. We are going to assume you don’t want to stay in a special loan scenario, and you agree that your bank loan called in is a reasonable reason to seek turnaround financing.

Clients in, or being told they are going into special loans are always in a minor state of shell shock - A typical reaction is simply ' If my bank has called my loan who else would even consider refinancing us? '.

The reality - replacement financing is readily available, it may come at the same cost, it may comes at a lower cost, but more likely its going to be a higher priced facility until your turnaround strategy is in place .

Two key alternatives are available to your firm, and they come in the form of an asset based lending facility . That typically is a non bank entity, and the specialization is totally focused on their ability to understand that you have viable assets - they typically include receivables, inventory, and fixed assets/equipment. We say ' two alternatives ' because the size of your operating facility request will determine if you are ready for a true asset based line of credit, or if a working capital facility with a smaller firm is in fact the turn around financing you need .

Your special loans facility can be replaced in a matter of weeks if it is under the 3M dollar range, and facilities larger than that take a month or so re due diligence , appraisals if required, etc . That’s how asset based lending works – it focuses on assets, not bank ratios!

Many firms want to exit special loans simply because of the stigma. We don't want to dwell with clients on how you got there; we want to ensure you have a clean exit out with a new cash flow facility that works. That allows you to rebuild your firm and focus on growing and generating profits again.

Speak to a trusted, credible, and experienced Canadian business financing advisor who can assist you in your special loans exit strategy via a true asset based lending solution.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/special_loans_bank_loan_called_asset_based_lending.html

Does Your Company Need Working Capital Cash And Funds ? Canadian Business Cash Flow Lending That Works!

Knowing that your company has a need working capital cash and funds is one thing of course - knowing what lending solutions are available is of course another altogether different (yet related!) topic.

Let’s examine the real world essentials of working capital financing in the context of the Canadian market, targeted mainly at small and medium sized business such as yours.

We all know the buzz words: cash flow, cash is king, liquidity... you name it, and the text book has them all. But we want to focus on real world solutions to your Canadian business financing needs. And that’s where working capital and operating capital come in, i.e. your daily requirements for managing assets such as receivables and inventory.

What many business owners and financial managers fail often to realize is that your sales backlog, new contracts, , and your other assets in the business often mask the essence of our topic today, with is liquidity and cash flow to meet your daily financing needs . Clients are often surprised to find that although they are profitable, have assets, and have great prospects their inability to manage receivables and inventories and payables leave them in short term and ongoing cash flow crunches.

The most impact you can make on this problem lies in three of your accounts - they are receivables, inventory, and payables. Payables simply because your ability to slow or delay payables increases cash flow, it’s as simple as that. That though, needs to be balanced by maintain proper supplier relationships.

So you therefore have decisions to make around working capital where you will get cash funds, and what is your real need for lending and cash flow on a long term basis. Borrowing on a long term basis for short term needs never works, and time and time again we meet clients who have ' mismatched ' short term needs with long term alternatives .Don’t do that!

We think we have you up to speed now on the problem - les focus on the solutions to the need for that working capital, where those funds come from, and what lending sources can assist you in that cash flow challenge .

As we said, you want to monetize current assets, not borrow and incur long term debt. The one exception to this is a cash flow term working capital loan that in some cases makes sense because you are injecting permanent working capital into the business.

The real solutions to the working capital cash flow challenge revolve around the following - a bank operating facility that margins your receivables and inventory. Many firms either don’t have the financial profile to access this type of facility, or in some cases banks simply don’t lend against inventory, or you are often ' capped ‘ in this regard. Therefore the solutions we recommend to clients are asset based lines of credit with true asset based lenders; smaller firms qualify for a combo working capital financing and cash flow facility that margins your receivables and inventory, but at higher rates than the bank.

Our favorite options for smaller challenged firms is confidential invoice discounting - your ability to finance all you invoices but retaining full billing and collecting ability.

Since it's always about opportunity, many clients aren’t aware that purchase order financing is also available for their cash flow need. This comes at a higher cost but allows your firm to take on significant business it otherwise might have to forsake.

So, there you have it. To recap our bottom line (business owners love the bottom line!) you need to match your financing mix to your own business needs. Solutions you may not even have heard of are available to you now, and your competitors might be using them already.

Speak to a trusted, credible and experience Canadian business financing advisor - identify the need, and implement your working capital solution today!

--

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/working_capital_cash_flow_funds_need_lending_cash.html

Considering Canadian equipment leasing ? What Leasing Companies Offer The Best Equipment financing

We know you're only mildly interested in the technical aspects of equipment leasing in Canada. The reality is that your best rates, terms and structures in equipment financing are going to come from leasing companies that are your best choices for financing your assets.

Let’s examine some of the key issues you need to look at to obtain the things that are important to you when you are financing assets, and that includes best rates also!

The trick isn't knowing about all the benefits of equipment leasing from a technical perspective, your accountant or lawyer could do that for you - whats important is your ability to figure out which benefits makes the most sense for your firm, as they rarely all pertain to just one transaction .

It always comes down to flexibility in your equipment financing needs. That’s what Canadian leasing companies are about. However, the good and bad news is that there are hundreds of firms that offer equipment financing options. Which one is good for you? The reality is that is a needs versus offering scenario. Simply speaking what you are looking for in asset financing is not offered by all firms - you need to know that. Why? Simply because each firm specializes in a few key areas.

A leasing company is all about several things - they include - their geographical location , the size of transaction they are permitted to do, the type of lease they offer ( there are two in case you didn’t know ) and the credit quality they are prepared to accept to approve your acquisition of business equipment .

So, how do you address the issue of which leasing companies would work best for yourself, either in a one of transaction, or on an ongoing basis? All you have to do is to examine their product and service offering, understand which of the two lease types they offer, and determine if your firm satisfies their credit criteria. Would that take time? We can safely say it would take you many hours of your time, a lot of it easily wasted if you are talking to the wrong firms.

So, whats the solution. We recommend you speak to a Canadian business financing advisor who is trusted, credible an experienced. Their knowledge of the market and the participants is going to fast track you to equipment financing success.

And never lose sight of those benefits and flexibility we spoke of - they include payment flexibility and structures that meet your business cash flow needs. Also, be aware that almost any asset can be financed based on your business needs. You shouldn’t use you lawyer or accountant to find you that lease partner, but they can sure help on documentation and tax issues on the transaction that will prove beneficial to your firm.


In summary, you need to consider what lease benefits makes sense to your company, and who can offer them to you. Maximize your management time and work with a trusted expert and advisor who can assist you in comparing solutions you can commit to and benefit from. That’s what Canadian equipment leasing is all about!
--

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/equipment_leasing_equipment_financing_companies.html

Invoices To Finance ? Here’s The Best Method Of Factoring Financing In Canada For Accounts Receivable !

We know why you are here. You’ve got them; you just don't know what to do with them. We're of course talking about invoices to finance, and what we think is the best method of factoring financing for your accounts receivable.

There isn’t a day these days when we don’t meet a client like you who isn't challenged by working capital and cash flow challenges.

Let's examine the basics of factoring financing in Canada, with exactly what you need to know, which is simply how does it work and whats the best type of receivable financing arrangement. Oh, and by the way, we'll share some tips on what to look for in that ' perfect' arrangement we are referring to,

So let's weigh in on our subject, which is that you have got accounts receivable, and they are growing , and as everyone is experiencing these days, your clients , as great as they are, are slow to pay. And we won't forget that terrible thing known as the bulge, which is that seasonal or occasional situations when large sales opportunities loom and you need financing to cover those off.

Thousand of Canadian companies can't all be wrong, so there must be something to factoring financing of those invoices, right? We're going one step better and recommending that you investigate confidential invoice financing, which is simply a factor arrangement that has you in control of the show, not the finance firm. And controlling your own destiny is what it is all about.

Accounts receivable financing is simply the sale of your invoices to your finance partner firm - you get the cash immediately. It works best when you have some decent gross margins to absorb the 1-2.5% financing cost that comes along with this type of financing. The cost is what most of our clients are worried about , and they are somewhat more happier when we show them how they have the ability to cut that cost in half using that new found cash flow to execute on strategies such as taking discounts with their suppliers and buying in bulk at better prices .

So here comes that recommended secret we are talking about. We call it C I D, which stands for confidential invoice discounting. Here's where you have the advantage over your competitors. 99% of all factor financing in Canada revolves around your factor firm partner billing and collecting your invoices, with notice to your customer. Our offering eliminates that, you bill and collect your own invoices, when you want, when you need the cash. So you have the same pricing as your competitors, but you are on up on how the facility works.

Things we look out for when we originate these financings are areas such as the total all in rate of your new financing facility. Other somewhat technical issues are the advance rate, of what is advanced against the full amount of your invoices. Some other key issues to look for are the miscellaneous admin fees, the exact calculation your new financing partner uses for their rate, and your ability to terminate the arrangement at no cost.

Some of these latter issues we mentioned can save you thousands and tens of thousands of dollars of a year, so we recommend you use the service of a trusted, credible and experienced Canadian business financing advisor to ensure you have the best method of factoring financing for your firm.
--

Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/factoring_financing_accounts_receivable_invoices.html

Looking for Film Finance ? Your Secret Weapon Is The Canadian Film Tax Credit !

We're going to make a quick assumption here, and that’s that you are not a movie mogul in an international film studio! But we do think we know who you are - a producer or project owner looking to complete your film finance plan.

We'll also make another educated guess - here goes: You have found out that the Canadian film tax credit system can finance anywhere from 30-45% of your project and that’s quite appealing!

Let’s examine the basics of the Canadian film tax credit and determine how it can assist you in financing your project. The Canadian government has made it very clear that it is committed to film (by the way we're including television and animation here!) due to the revenue and cultural aspects of the entertainment industry.

So these tax credits can play an integral part in the overall financing part of the plan. But in talking to clients we make it very clear that the onus is still on yourself, and we know its not easy, to complete the rest of your financial plan .That is of course the remaining financing you need that it achieved by arranged equity, debt, pre-sales , etc - in effect completing the finance puzzle .

More often than not the tax credits we look at tend to be in Ontario and B.C., those provinces have historically been viewed as Hollywood North in film finance - but the reality is that if you can shoot or produce your project in some of the other Canadian provinces those tax credits become even more liberal depending on the geography you have chosen.

So how do you successful navigate the Canadian film tax credit maze? We personally don’t think its a maze, in fact its quite straight forward, but the reality is that when anyone associates a government program with funding it has a perception of being bureaucratic, slow, etc . That’s not necessarily the case with the film tax credit.

Lets ensure you have the basics, and quite frankly you can move to GO and collect 200$ simply by utilizing a core expert team consisting of a Canadian tax credit advisor. Together with your entertainment accountant and lawyer that advisor can fast track you to Canadian film tax credit success.

The process simply involves applying for a Production certificate that ensure your project is eligible based on your spend budget. Non- Canadian producers may even be surprised to know that you can apply on-line through the government portal to get your certificate. This is where having the right ' finance talent ' comes into play, because you want to maximize your credit to achieve the best qualification for the combined federal and provincial credit.

Can the Canadian film tax credit be used to actually finance your film, i.e. real money? Absolutely, positively. Working with a Canadian business financing advisor in this area will allow you to cash flow or monetize your credit. The capital, again, anywhere from 35% ++ of your project can be used to actually complete your production in combination with your other aforementioned sources of financing.

In summary, we are the first to recognize that film finance isn’t easy - but when an accredited partner - i.e. the Canadian government! is willing to step in and help you with 30-45% , or more of your entire budget our recommendation is simple - Take the offer .! Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing your film finance plan.

--


Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/canadian_fi
lm_tax_credit_film_finance.html

Should You Finance Your Sred Tax Credits Via Sred Consultants On Your SRED Claim?

Should you, or shouldn't you? We're talking about your sred tax credits , filing the actual sr&ed claim for financing purposes, and the role of ' sred consultants' in the whole process .

A basic primer never helps, as we still today run into many clients that don't even know what the whole cra sred program is, let alone use it, and let alone use the proceeds for working capital financing .

If you're a speaker they say it’s good to know about your ' target audience '. Well, our target audience is very clear! Whether you are a start up, or an established Canadian company, and if you are spending any money at all on research and development costs, then, guess what - you're our target audience today.

And, if you can utilize the program the ability to finance your claim for immediate cash flow and working capital improves your balance sheet immediately, certainly from a liquidity viewpoint - and cash is always king we are told.

Let's cover off who those sred consultants are, because they are a key process in the filing, and to a certain degree, financing of your claim. That claim of course allows you to get your firms share of the 3-4 Billion dollars of annual cheques that are written to your competitors, and our goal with our information is to get that funding into your hands as soon as possible.

Sred consultants are private individuals and firms, somewhat boutique in nature, that specialize in writing and filing your sred claim. Filling out any government form for us has always been a daunting task, but to miss the opportunity in a sred filing and getting approval isn’t just embarrassing, it could cost your firms thousands, or tens of thousands of dollars in missed refunds. So these consultants tend to be very experienced in sr&Ed calim process, and have the ability to maximize your sred tax credits to bring you the most dollars possible.

Who isn’t interested in a non repayable credit from the government? Certainly no one we speak to. So we think you would agree that the ability to ' get with the program ' so to speak, when it comes to a sr&Ed claim is beneficial to any firm. And by the way, only privately owned Canadian firms can benefit in this manner from sred tax credits.

So your firm is eligible - you're either a first time filer, or you have been doing this for years. What else could you possibly benefit from in this program? The answer is, we think, that you should consider financing your claim. Why does that make sense? To us maybe its too obvious, but the ability to cash flow your sred tax credits into immediate working capital puts you one step ahead of the game when it comes to your business growth.

Financing the claim is a very simple process. Locate a Canadian business financing advisor that is trusted, credible and experienced in sred tax credit financing. That person will help you understand the basics of the financing - which is essentially a bridge loan collateralized by your claim. In effect you're financing or monetizing a government receivable. Your receive approximately 70% of the valued of your filed claim, now, which we think is better than waiting, 3, 4 or even 12 months for your claim to be approved and to receive your funds via the government .

Claims can be financed within a matter of weeks, and the process is simply a business application supported by the information around your sr&Ed claim. Having your claim prepared by one of those qualified sred consultants just simply lends credibility to your filing. So, should you or shouldn’t you. Our recommendation - file a sr&Ed claim if your are eligible. Finance it if you want cash flow and working capital now. It's as simple as that.

--
Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

New Franchisee? How Franchising Lenders work in Canadian franchise finance

Being the ' new person ' is not always beneficial, especially when it comes to a major life decision such as your new career as a franchisee in Canada. Not knowing about franchise finance or franchising lenders work is definitely a set back - so lets get you ' armed and ready ' with some solid info on financing your franchise .

First of all, here’s the good news - financing a franchise in Canada is certainly possible - It’s mostly done by a guy named BILL! And we're not kidding. More about him later.

In fact though, the franchise industry is currently viewed as quite healthy as lenders feel that the concept of proven business models and branding of your franchise are great steps to opening what ultimately is a ' start up ' business. Clearly we all agree a franchise ' start up ' is steps ahead of opening up your own business and ' taking a chance'.

So, can you get a ' standard’ bank loan to complete your franchise finance? We don’t want to be too sarcastic here, but the answer is, yes, if you have a million dollars net worth, pristine credit, and some outside collateral and guarantee ability. So what we are saying, putting that sarcasm aside, is that conventional lending doesn’t really work if you're a new franchisee seeking an independent business opportunity financing.

So, that brings us to our friend BIll, remember we told you he finances most of the franchises in Canada. Clearly a popular guy, as he finances millions of dollars of franchises. Our clients want to immediately get to know this Bill guy. So, who is Bill?

Actually we have spelled his name wrong, its BIL, because that is the name of the government sponsored loan programme in Canada (in the U.S. it’s called the SBA loan) that funds most franchisees in Canada.

How can one program be so popular? It's simply because it’s well suited to what you are trying to accomplish. It provides great rates, terms and structures, limited personal guarantees, and requires what we in our firm call a reasonable or decent personal credit history. I.E. You don’t need that million dollar net worth we spoke of earlier?

So how do you achieve franchise finance success with franchising lenders on the BIL loan? Again, pardon our humor, but investigate the Boy Scout motto - Be Prepared!

The essence of approval for your franchisee venture for franchising lenders under a BIL loan is a crisp business plan, a financial projection that makes sense, and various back up documents as required by the program. Naturally you also need assistance in determining who offers this loan program, how it can be sometime augmented with other financing, and it sure helps if you present it professionally and properly.

So, we always try to have a bottom line, and in this cases its pretty simple - investigate the BIL program, do your homework, identify key requirements, and, if you are challenged by any of the above seek a trusted, credible, and experienced Canadian business financing advisor who can help you achieve franchisee franchise finance success with the right franchising lenders for your BIL. And, by the way, congratulations on your new role as a Canadian entrepreneur!

-


Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.parkavenuefinancial.com/franchise_finance_franchising_lenders_franchisee.html

Who Are The Best Asset Based Lenders ? Looking for loan financing companies in Canada for Working Capital?

We know where you are at. You've heard about asset based lenders, are a bit confused about this type of loan financing (It’s not really a loan) and you want to know which companies in Canada best suit your working capital needs.

Everything seems to be going ' viral ' these days, and we strongly feel that asset based lines of credit from Canadian asset based lenders are right up there - to put it simply, they are ' trending up ' in popularity .

Let’s examine the key basics of the service offering of asset based lenders in Canada and determine how you pick what's best for your firm. That is the real challenge.

So, again, what is the service offering really about when you're looking for an asset based lender? It’s actually a bit more simple to understand than you think. Clients we talk to are of course 100% familiar with a bank operating line of credit - that’s been available forever - if , and its a big if, you qualify.

Loan financing companies offering asset based lines of credit are simply finance firms, usually private and independent , that offer you an operating line of credit - based on the true value of your receivables , inventory, and in many cases fixed assets or real estate that don’t have other liens on them . Simple as that.

We know you're struggling to see the difference between that bank facility and this newer version of it. The key differences are simply, and that’s why hundreds, probably thousands of firms are moving to this type of working capital and cash flow facility. We'll summarize the benefits of that facility quickly and easily. They are as follows: easier approval, less collateral, covenants and guarantees from owners, more liquidity, and unlimited financial borrowing power.

Let's cover off those last two points a bit more; they are the ones that most intrigue our clients who are considering the switch. Asset based lenders approve many firms for either more working capital than the client would have received from a bank , or often times approvals are based on facilities that never would be approved by a bank in any circumstances .

Don't believe us? Actually many firms who are even in special loans or coming out of bankruptcy can, in many circumstances, access asset based lenders. Why? Because they have the one thing an ABL (that’s the acronym for the industry) needs: ASSETS!

So we think we've got you onside with the benefit of an asset based line of credit from loan financing companies in Canada that offer these type of revolving facilities. But which one is best for your firm.

Here's what you need to know. We speak of a ' loan ' but keep in mind this is basically an operating line of credit for your firm. The factors that affect who you are best to deal with are as follows - the size of your facility, the current financial situation your firm is in, where you are located, and the mix between A/R, inventory, and those other assets you might have on hand. These type of facilities work best when they are in the 250k and up range. And by the way, up in our case means anything up to 50 Millions dollars, or more!

If your firm doesn't qualify from a size perspective there are still some unique business financing strategies for current assets that makes sense.

Speak to a trusted, credible, and experienced Canadian business financing advisor. You'll be on the road to improved working capital health in a short time!

--


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

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/asset_based_lenders_loan_financing_companies.html

The Reality Around Working Capital And Cash Flow Business Financing In Canada

Your access, and the way you manage your firms working capital and cash flow play a key role in business financing and your firm’s growth and overall well being. We rarely get an argument on that one.

Your ability to get financing on items such as fixed assets, a/r, and inventory will ultimately depend on how successful and also how fast your company can grow .

Clients are somewhat amazed when we tell them that we can pinpoint the exact time when they will stop being successful! What do we mean by that? Simply that you have a great little tool to determine when you need that extra capital in your business. Most small and medium sized businesses haven’t heard of it, we can assure you larger more sophisticated corporations have a total handle on this one.

So whats the tool - it’s called the Sustainable growth ratio and it’s a simple formula that shows you the most your firm can grow without bringing in new capital. For example, if you want to get a shareholder return on your total capital in the business of 20% you can re invest all your earnings and keep your relative overall financial position the same. Want to grow faster, then access more outside capital .Simple as that.

However accessing more capital from the viewpoint of our clients is either difficult, or undesirable - i.e. reducing their ownership interests, etc. So whats the choice. It’s simply monetize your business financing assets such as receivables, inventory and unencumbered assets and create working capital and cash flow via asset turnover.

You create cash flow financing internally be addressing how you finance receivables, inventory, and accounts payable. Accounts payable you ask?! Yes, simply because as you slow your payables you generate real cash flow progress. Naturally there is a fine line here between generating that cash and alienating your valued suppliers!

We never want to be accused of talking about the problems and not the solutions, and we mean real world solutions, not textbook solutions to Canadian working capital financing.

So let’s recap the solutions and why and when they might make sense. The easy, quick, go to solution is working with a commercial banker to determine if you qualify for bank financing from an operating line of credit point of view. We surmise that if you have all the access to bank credit you need you wouldn’t be here reading our solutions proposed!

Other real world alternatives for cash flow financing in Canada, some of which are even unknown to our clients include asset based lending facilities that are non bank in nature - basically lines of credit from private finance firms. Other solutions include confidential invoice discounting, and purchase order financing, which also occasionally dovetail into the financing of your inventory either prior to purchase or when its on your shop floor .

In summary, we spoke of your desire or inability to attract long term capital to your business, the solution being short term working capital decisions around how you finance on a day to day basis. Speak to a trusted, credible an experienced business financing advisor on how to access the Canadian business financing you need. Today!

--


Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7
parkavenuefinancial.com/working_capital_cash_flow_business_financing.html

Considering Equipment Finance in Canada ? – Why Equipment Leasing Is Your Finance Advantage

Want some good news ? - Your firm has the ' home team advantage ‘. That common sports expression we think pertains to business when you are making use of all the advantages of equipment finance and equipment leasing for your Canadian acquisition needs.

A lot of the advantages of leasing are constantly being talked about - if you don’t know them by now it sounds like you are considering lease financing for the first time. Sitting down with clients it always becomes apparent to us that of all those advantages, and they are numerous, cash flow is often the most significant benefit to business owners and financial managers.

So, is cash flow still the ruling king, as we have heard it always was? Definitely, because when you utilize equipment finance solutions you in effect have created your own new line of business credit. And the restrictions, covenants, outside collateral, and all those other things you associate with a bank or term loan seem to suddenly have gone away with your equipment leasing solution.

Is leasing versus buying also considered a key advantage? That’s a question clients always ask. The reality is that there are somewhat complicated accounting, tax, and depreciation calculations that come into play on that issue - more often than not we think it’s a bit of a wash in our opinion. However, depending on the actual type of lease you use there could be some immediate apparent advantages.

For example, choosing a residual type lease, also know in the industry as an operating lease gives you the chance to experience a lower payment advantage, and lower payments are always a good thing ,

Want to devote a huge piece of your life to getting a term loan or bank financing arrangement in place for your new equipment. By all mans go ahead - but our clients have already beat you to the bunch, and we sure hope they are not your competitors, because they obtain lease approvals in a matter of a couple days - Canadian equipment finance leases are approved in a much more expeditious manner .

There is a term in business finance revolving around the concept of matching long term assets to long term debt. Simply speaking, using an extreme example, you wouldn’t use your entire business line of credit to purchase a plant equipment asset that might have a useful life of, say, ten years. All of a sudden the use of the operating facility for the purchase has totally eliminated your day to day operating cash flow, which is typically used to pay employees, repay loans, purchase product, etc.

And getting back out our old friend cash flow, the true flexibility of leasing, is that those payments you need to make can be structured flexibly around seasonality of your business, as well as the matching of the payment to the useful economic life of the asset .

So, in summary, how can you get the equipment finance advantage in Canada? Speak to a trusted credible , and experienced Canadian business financing advisor who will assist you in ensuring you have the right lease, a prompt approval, and rates terms and structures that match you equipment leasing needs . That then, is your home team advantage!

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/equipment_finance_equipment_leasing.html

How To Get The Best Factoring Financing From Your Receivable Investment And How Factoring Firms Differ in Canada

Clients who are in the process of investigating factoring financing want to know their receivable investment is being financed in the best manner possible. So... are factoring firms different - oh boy - you dont believe how different they are.

Let's examine some of the key issues around factoring and receivable financing in Canada - lets look at what the best type of facility is (in our opinion at least!), how the financing works, and most importantly, why you should consider using it.

Let's address the last issue first, namely why you should be using, or at least considering factoring financing. The reality is that your business is in one of several categories - they might be as follows: you are unable to unable to obtain traditional bank type financing; your business is growing at an exceptionally fast rate to support bank financing approval, your firm has financial challenges re operating losses and other issues.

So how do you choose among the many factoring firms out there in the Canadian environment? This is where it gets tricky, and you will save probably thousands of dollars when it comes to working with the factoring firms that make sense for your needs.

Here's the basic ' lay of the land' in a nutshell. Canada has hundreds, and we mean hundreds of factoring firms that come in all shapes and sizes, small local boutique operations, branches of U.S. and U.K. firms, and everything in between. We recommend a Canadian receivable financing firm that is local to understanding your needs, and one that offers confidential invoice factoring, which by far in our opinion, is the best type of A/R financing.

As most Canadian business owners and financial managers know invoice discounting, aka factoring is simply the sale of your receivables, on a one of, or entire basis, for immediate cash. Sounds simple and sounds great, right. It is, but the type of facility you choose and what you pay can make or break your decision to finance your A/R investment.

Costs of financing your A/R with factoring firms differ greatly - Generally you can be expected to pay between 1-3% per month based on a few key issues such as the size of your A/R investment, the industry you are in, and your receivable turnover, or DSO as its known in the business.

We strongly recommend clients search for a confidential invoice discounting facility - by far the best. Your firm retains all the advantages of factoring financing, but bills and collects your own receivables, receiving cash instantly as you invoice. This facility compares to the other 99.9% of the industry which uses a cumbersome system that involves notification to your customers around your financing arrangements.

There isn’t a day when we aren’t asked by clients about the cost of factoring, which is perceived as high by many clients. We can assure you that yes, it is higher than bank financing, but ask your bank if they will give you an unlimited line of credit based on your receivables . Keep us posted on that one, because we thing you know the answer already.

Also, if you used receivable factoring prudently you could actually in many cases achieve the same costs as you have in bank type lines of credit, but that’s a subject for another day.

Unsure of how factoring finance works - lets cover it off then! You invoice you client for work or services or product done/shipped, etc. You receive the same day, cash flow wired into your bank for that invoice or invoices. Typically 90% is advanced same day, the other 10% is a buffer , held back and remitted to you when your client pays, less the factoring costs themselves .

So whats our bottom line then - we think we can sum it up as follows. There are different types of factoring - we maintain confidential invoice factoring works best. Cost vary between firms and you should ensure you work with a trusted , credible and experienced Canadian business financing advisor to get the facility that makes most sense financially for your company .


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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/factoring_financing_receivable_factoring_firms.html

Why You Should Use Canadian Film Tax Credits For Your Film Production Financing

Don’t consider using Canadian film tax credits for film production if your film production has all the financing you need and your current projects are totally financed and will achieve a solid return on investment for your project.

Unfortunately, we haven’t met one producer or project owner in film, television and animation that seems to have all the funding they need and in place! We've heard they exist, I guess we just haven’t met them.

The Canadian government, and more often than not Ontario, British Columbia and the Maritimes are totally focused on providing you with non repayable funding for your projects in the genres of film, TV and the growing genre of animated features. They are offering, so what aren’t you taking?!

We are pretty sure the Canadian film tax credits have the same goal as in other parts of the world, namely stimulation of investment and employment.

If your film production (we will use that term interchangeably with tv/animation) requires additional funding (which project doesn’t) the provincial film funds can provide you with anywhere from 30 - 45% of your entire budget. And by the way , that’s not a loan , that’s tax credits that are certified and come back to you as the project owner in the form of a cheque - In Hollywood terms the government wants to ' show you the money ' !

We are often asked why Canadian film tax credits vary when we meet with clients and discuss broad ranges of per cent age funding of your project. It all comes down to a few simple issues around which of the 6 available tax credits you use (we recommend you use the one that will give you the most funds by the way!) and where your project is originated re shooting, production, development, post development, etc .

We encourage clients to seek an advisor who is trusted, credible and experiences in Canadian film tax credits for film production. That allows you to maximize your funding, ensure you are eligible, and, as we have said, allow you to 'max out ', so to speak, on the credits that are applicable to your particular project.

What you need to do is ensure your project qualifies and that you are aware of application, filing and other regulations that come into play that allow you to receive funds.

And oh yes, by the way. You could wait 3, 6, or even 12 months for your funds, but we recommend all clients assess the financeability of your credits before you receive the cheque. Financing your Canadian film tax credits allows you to monetize that future credit into a bridge loan, collateralized by the credit, and provides you with cash flow and working capital for your current production.

Financing your film production via the monetization of your tax credits involves just a few basics - ensuring you have your other debt and equity in place, validating your credit and budgets as eligible, and ensuring your financial filings are up to date.

Speak to a trusted expert in Canadian film financing to achieve additional funding for your projects - maximize on that film tax credit, and consider borrowing against it for funding you need now. Fade to credits!

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/canadian_film_tax_credits_film_production.html