Real World Advice on Cost of factoring of receivables in Toronto – Board the Receivable factoring Bus!

Whether they are hearing about it from their business peers, reading about it, or being ' pitched' on the factoring of receivables, whether in Toronto or the rest of Canada is a hot topic in the world of Canadian business financing.

We think we can simplify the issue into some valuable basic pieces of information around what receivable factoring is, what it costs, and more importantly, how it works re benefits and solutions!

At its most basic it is simply the ' sale ' of your receivables as you generate the . Think of it - receiving cash flow and working capital the day you generate a valid sale and invoice. The cost of that service is a fee, generally between 1-3% which you as a business owner have to rationalize against the benefits of receiving that cash immediately and making use of it. That really is where the crux of our advice comes in, that the cost of the instant cash flow actually can be offset significantly, in some cases totally, by the effective use of those funds.

That is achieve in the following manners - more sales and profits, taking on orders and contracts you couldn’t even consider before, and finally, the less tangible but very real benefit of using that cash flow to purchase in larger and smarter quantities, as well as taking payment discounts which might e offered through suppliers . If those benefits don’t ring clear then we confess we will have to give up now to demonstrate the clear benefits of factoring of receivables.

Whether its Toronto factoring, or anywhere else in Canada the challenge for the business owner is really to get the best advice on what type of receivable factoring to get, who to get it with, and where to get it. In all businesses we rely on experts, and the financing of your business in Canada surely demands an expert - there is not a lot of room for error when it comes to how your business is financed. So seek the services of a trusted, credible, experienced Canadian business financing advisor who can set you on the right track.

It’s frankly all about the nuances, and as we speak to clients and determine they don’t really often understand how receivable factoring works it’s at that time they need advice. It's really about the day to day. We rarely get into debates with clients about ‘do they qualify ' because frankly if you have a business and are generating commercial receivables then, guessing what, you qualify.

So free up the cash flow, maximize on the working capital benefits of factoring of receivables, and whether it’s Toronto factoring or anywhere else in Canada feel free to board the receivable factoring bus! Just do it right though.
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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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/factoring_receivables_toronto_factoring_receivable.html

Looking for Film Tax Breaks ? - Tax Credit Capital Can Be the Financing You Need

It's a challenge no matter which way you put it - If you are an independent in Canada and have projects in film, televison and animation tax credit capital, your own form of film tax breaks! will help eliminate what we can only describe as some of the 'guerrilla financing ' techniques that owners of projects must employ to complete an efficient and effective return on investment for owners .

The financing of a film or the project (we always talk in terms of the holy three, film, TV and animation) should of course be in place prior, not during or after your project. Future revenue streams will of course come from a potential theatre release, DVD sales, and release to cable and satellite providers.

Cash flows from your project are of course used to repay investors, and a significant portion of there cash flow and actual working capital of your project can come from tax credit financing in Canada.

Have the tax credits for the industry ever been so generous and the processes streamline - we certainly can’t remember.

Clients typically seeking tax credit financing (in their words ' film tax breaks’) usually have claims in excess of 200k to finance, and they are of course in possession of valid refundable credits.

How can these claims be monetized, and what type of financing is available. In general you can receive loan advances in the range of 70-80% of your total calim amount. The key collateral is of course the actual refund itself, and financing is offered and available to clients who wish to cash flow their claims either during or on completion of the project. It goes to say that if you cash flow your claim during the project the financing of the tax credit becomes a key part of the cash flow of the project.

Criteria that you might expect when you do a financing of this type would be things such as due diligence on the owners and their industry background, your ability to produce relevant financials and budgets on your project, and the further ability of owners to ensure all relevant filings and tax payments are being made and up to date . That’s just business 101 we would say to clients, and that type of info and due diligence would be part of any business financing.

For the financing of projects to attain the maximum level of... can we call it ' generousity' of the goverment tax credits its all about Canadian content. It is therefore important to work with a solid and reputable, credible, and experienced Canadian film tax consultant who can steer you towards the preparation and filing of claims that maximize Canadian content. For example one of the key credits is the Production Tax Credit and it can cover up to 25% of labor that qualifies as Canadian content when the labour maxes out at a total of 60% of your entire production budget. In fact there is a basis ' point system ' that your entertainment accountant would use to ensure you are qualifying for maximum refund. These so called ' points' include items such as Canadian ownership per cent age of the production, as well as focusing, for example, on where post production is completed... and on it goes.

But there is a very simple bottom line... you want ‘film tax breaks' in Canada. They are here, available, and generous. Speak to an expert advisor in the area who can assist you in qualification, filing, and the cash flowing of that tax credit capital.
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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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/tax_credit_capital_film_tax_breaks.html

Get the Most From Your SRED refundable credit – Financing Your SR ED claim with a SRED bridge loan

Of the many questions clients ask around the sr&ed (sred) program in Canada a typical one, actually two, is ' can we finance and our sred claim... and how is financing sr&ed grants done?'

Let's work through a short sred loan primer and cover off the basics, allowing you to better understand the potential benefits of financing your sred refundable credit, and , more importantly determining if it makes sense to finance that claim .

Sred calim percentages actually vary by provinces, because they are a combo grant that is administered and funded by both your province and Ottawa. While percentages of the amounts you receive might vary a bit between provinces for the purposes of our discussion we'll speak in general terms, because we are pretty sure you aren’t going to move your company location to increase your non repayable sred credit!.

Sred claims vary but in general they do not go much more than over a million dollars. You have the ability to finance your claim if it’s eligible. We will also mention that if your company is perfectly willing to wait for your cheque that’s a good thing also, it just seems to us that if you can put non repayable tax credits to work to generate additional revenue and profits, well... that is a good consideration of financing our sred refundable credit.

A key to financing your claim is the quality of your claim. Three types of preparers are out in the marketplace - your company itself can prepare the claim, your accountant can, or you can use an expert, otherwise known in the industry as a sred consultant. Theoretically all three parties could prepare a claim that is financeable, but the reality is that your sred finance firm leans more preferably to the utilization of a sred consultant. That's simply because expertise in an area such as an R&D overview submission seems to make the most sense.

The government pays out billions of dollars each year to firms such as yours - so filing a claim, and considering the financing of that claim can be a key part of your overall company cash flow.

If your claim is a first time claim, and is less than straight forward there is a strong possibility based on current sred trends that you could wait close to a year for your refund. So the question then becomes, could your firm utilize effectively a sred loan as a bridge type financing for additional cash flow and working capital.

If you are answering in the affirmative then it’s simply a case of working with a trusted, credible and experienced Canadian business financing advisor to fast track a sred financing. Typical sr&Ed loans take a couple weeks or so to process; it’s a basic business application, with your sred refundable credit collateralized. Advances on your claim are in the 70% range and are typically structured as no payments, with the final 30% due your firm, less financing charges, at the time of final disbursement from Ottawa and your province.

A short summary of our shared info is very simple - if you qualify for sred then clearly use the program - if you don’t you are missing out . Want to wait a year for your money... great, keep us posted, the chq is in the mail. Want additional working capital and cash flow today out of your non repayable sred credit, then consider the sred loan financing program today. It’s as simple as that.
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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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/sred_refundable_credit_financing_sr_ed_sred_loan.html

Financing A franchise? - Here's How Franchise Finance Works in Canada

Searchin' .. and Searchin.. for franchise finance in Canada ? The reality is that it's available, and we will share some common sense approaches to successfully financing a franchise in Canada.

Although you may have spent a significant amount of time in picking what you feel is the right franchise finance opportunity the reality is that we are hoping that you have spent, or will devote an equal amount of time to the financing of the purchase. Securing funding in any specialized field is clearly a challenge so working with an expert in the field is always advisable. This is no time to be a rookie when it comes to the successful financing of your business.

Many franchisees without any type of finance background might assume that traditional finance is available through institutions such as banks and credit unions. The answer to this assumption is actually no... And yes. Let's explain. We are not aware of any Canadian bank that will set up a specialized term loan for the full financing of your business. (This might happen if you have significant outside collateral, guarantors, pristine credit, etc - but generally no). But, the reality is that the banks in fact do indeed do most of the franchise finance in Canada - but it’s done under specialized program called the CSBF/BIL program.

This should be your first point of call in financing your business. However, here's where the ' expert' advice is needed, as the program only covers the financing of certain aspects of the business, and you will need to cover off portions of your purchased that wont be financing through this program . This would be things such as ongoing working capital, the franchisee fee itself, etc.

It's probably commons sense but aligning yourself with a franchisor that has a good brand and reputation and a successful share of their industry’s marketplace is in fact going to make financing a franchise in your case probably easier.

What category are you in? we ask clients . What we mean by that is that you might be opening a brand new franchise, or alternatively purchasing a business that is already a franchise and the existing owner wants to sell. There are advantages and disadvantages to both strategies, and there is certainly no cut and dry answer around what established or new business might be best for you. A quick example - it might be sometimes ' easier' to finance an existing franchise that is being sold because the assets and cash flow and profits are more realistically able to be demonstrated.

In certain cases some franchisees might want to expand their business via additional capital - that also requires a specialized focus.

In summary the key elements of financing a franchise in Canada revolved around your ability to source and successfully complete financing that suits your purchase. This involves your own investment, known as the ' owner equity ' a well as the financing through programs such as the BIL program. Financing specific hard assets and complementing the overall finance package with a working capital term loan or operating facility will also get you tot he goal line.

Pick your franchise carefully, and seek a trusted, credible and experienced Canadian business financing advisor who can help you structure the proper finance package that suites your overall acquisition and growth needs.
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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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/financing_a_franchise_franchise_finance.html

Top Strategic Working Capital Funding and Facility Solutions

Every Canadian business owner and financial manger wants to know that their firm has financial health in the short term. Your company's ability to access working capital funding means only one simply thing - you have the ability to pay off your short term liabilities such as accounts payable, taxes, source deductions, etc .

So do you in fact need a better type or working capital facility today, and, if so, what are your options. We can't cure the patient unless we can confirm he is sick... so how in fact do you determine if that working capital need exists. It could not be simpler. Go to your balance sheet, add up cash, receivables and inventory, and if they in total don’t cover your accounts payable, guess what... the patient has a problem .

Two points worth mentioning, we fully realize most successful business managers and owners know intuitively that they have a challenge in the area of cash flow. It's simply recognizing that on a day to day basis more and more time is devoted to working capital management - i.e. collections, invoicing, juggling payables, etc.

There are very specific cash flow solutions for your working capital funding requirements. But believe it or not many of them can actually be fixed internally. You ability to negotiate better terms with your suppliers is a critical cash flow factor. More importantly many business owners don’t focus on turnover and quality of your current assets such as receivables and inventory.

By effectively measuring and monitoring your turnover in receivables and inventory can significantly improve cash flow. Technically we're talking about reducing day’s sales outstanding and calculating inventory turnover. Your goal is to reduce the amount of time it takes for a dollar to flow through your company.

So we have identified the problem, and the measurement issues around that problem, let’s focus on solutions.

In a perfect world, and we know its not, your Canadian chartered bank would financing all your receivables and inventory on an ongoing basis, and , when you need it offer up a bulge type facility to take you through a working capital rough patch . That type of working capital facility is generally referred to as a business operating line of credit.

As we said, it’s not a perfect world apparently! ... And thousands of firms, perhaps yours, don’t have access to this type of facility. So the Canadian marketplace offers up a number of solutions, for medium sized and larger firms the alternative is an asset based line of credit that comes without the restrictions of a bank facility ( ratios, covenants, outside collateral, etc) but in fact provide you with more working capital than a bank could . For smaller firms a working capital facility term loan is available via the government related bank in Canada. For smaller and medium sized firm’s receivable financing facilities, know as factoring, can turn your receivables into a constant ATM machine, albeit at a higher cost.

So whats our bottom line. Simply the right working capital facility will put life back into the patient, your company! Knowing what facility works best, what your options are, etc is really the only challenge, Speak to a trusted, credible and experienced Canadian business financing advisor to guide you through to the right cash flow 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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/working_capital_funding_working_capital_facility.html

A Reality Check On Business Loans in Canada And asset Based Capital Funding

You're forgiven. For what? Surely Canadian business owners and financial managers can be forgiven for thinking that there is few, (if any?) capital funding asset based business loans for Canadian business.

Between the global credit crunch, a Canadian recession, and the traditional bank retreating on business credit in every owner or CFO must surely dwell on the potential inability to take advantage of growth and sales opportunities via access to the right amount of working capital and cash flow to satisfy both day to day needs, and of course, that growth.

Asset based lending in essence goes ' under the covers' of your balance sheet - and whats under those covers, assets, not rations or covenants!

By financing those assets in a creative manner that leverages there true value your business is on the road to working capital solutions that you never imagined.

When clients talk to us about asset based business s loans their situations vary dramatically. Industries fall in and our of favor - so firms are experiencing a variety of what we can only term unique situations. What are some of those situations - well they might include stratospheric growth via new purchase orders or contracts, restructuring for a variety of reasons , buyouts or acquisitions , and that old catch all ' the turnaround '.

So is there one solution for all of these major business situations and challenges. We are always hesitant to say that ' one size fits all' but in reality the asset based lending available in Canada is quite frankly the new kid on the block that gains more acceptance everyday .

Why does this solution work better than a traditional one? One of the things we explain to clients is that in effect is a customized solution that takes a hard look at all your assets - those include inventory, A/R, equipment, and in some cases you can actually margin real estate.

So who qualifies and who doesn’t is a typical question asked by business owners. The reality is that larger firms are very closely suited to an asset based line of credit, but a whole second tier of offerings are available for firms who need 250k and up on a monthly basis .

Pricing often becomes a discussion point for this type of working capital and cash flow facility. We quickly point out to clients that although asset based business loans in Canada are more expensive than bank facilities; the reality is that they are custom tailored to your firms ongoing daily cash flow needs. They don’t require ratios and covenants to get the loan facility approved, and guess what, no debt goes on the balance sheet, you are simply monetizing those assets.

Its all about access to capital funding - if the old ways don’t work then clearly you should explore the significant benefits of an asset based line of credit. Speak to a trusted, credible, and experienced business financing advisor who can assist you in navigating the Canadian market.
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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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/asset_based_business_loans_canada_capital_funding.html

Secrets of Dealing With Equipment Leasing Financing Companies

What's my rate? Are we approved? What are my rights and obligations under this transaction? What's the capital of North Dakota... oh sorry, forget that last one..!

And on it goes... these are just some of the many questions that clients ask us when they are looking for assistance in sourcing and negotiating equipment leasing and working with financing companies in that regard . We do acknowledge it’s a big challenge sometimes - the Canadian marketplace is a bit different than its counterpart in the U.S. The finance industry is fragmented, and business owners and financial mangers absolutely could not be expected to know the credit appetite, the asset appetite, and the structuring options available from literally hundreds of firms offering lease financing.

Let's share some ' secrets' and tips around ensuring you can be successful in your equipment financing strategy. First of all, different strokes for different folks - what do we mean by that? Simply there are number of very well published ' equipment leasing benefits ' offered by finance firms. Do they all apply to your firm? Probably note, so focus in on understanding which benefits of lease financing work for you, and then... maximize them! Through effective negotiations.

For the record those benefits usually include payment structuring to your cash flow, tax advantages, upgrade and return options, and simply being an alternative to traditional debt and loan negotiation. Oh and we forgot one other key benefit, its generally recognized that lease financing credit approval is significantly easier to obtain than bank term debt or other loan mechanisms of a more traditional nature .

Psst... Want to know another secret. Here's a good one, that almost no transaction is too large or too small for the Canadian equipment financing market. So, if it makes sense to lease a 2000.00 photocopier consider it, and if you're buying a corporate jet for 3 Million dollars, there is a lease approval for that asset also.

If there is on obvious secret or tip that most owners miss it’s simply that when it comes to any type of ' technology ' you should consider equipment leasing with financing companies that are knowledgeable about the asset. We are mostly talking about computers, but the tech universe today covers telecom, and many other types of assets. Technology changes, tech assets depreciates very quickly, and the best kept secret in town is often a technology operating lease , allowing you full use, but not ownership, of the asset .

Many clients seem confused by the ' lingo' used by financing companies. You can be forgiven for not knowing ' off balance sheet leasing, residuals, fmv, all in rate, amort, ' etc, etc etc. So the best and final secret we can probably provide for you is simply to search out a trusted, credible, and experienced Canadian business financing advisor who will help you identify priorities and finalize equipment leasing success for your asset acquisitions.

Oh and by the way. Bismarck. That’s the capital of North Dakota.

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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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/equipment_leasing_finance_companies.html