How to Protect your franchise investment with smart financing options when you buy a franchise

It was, or will be an easy simple decision right? We're talking about the minor issue of your decision to purchase a franchise.

We're just kidding of course, because we know the franchise investment you make when you buy a franchise is one of the larger decisions you'll make in your life. And we clearly recognize the franchise cost of that investment is never a small one. So we are thinking you want to do it right?!

You can protect your franchise purchase by financing it properly. You want to be in a position to satisfy yourself, and your lender that you have the right amount of debt (I.E. loans, etc) and equity into your transaction.

It seems that it’s always about the money, and that was probably one of the concerns you had when you made the decision to purchase a business via the franchise industry. You recognized it was a potentially great way to build wealth and equity, but wondered where start up capital would come from.

The reality is that start up capital for your franchise investment comes from two sources, yourself, and one or two other lenders who specialize in franchise financing. Actually a large majority of franchises in Canada are financed under a government program that is technically called the BIL/CSBF program. Bar none it is the best financing deal in Canada for any new business, and franchisees have flocked to it for years. More about that program and how you can achieve success via it later...

We can’t over emphasize that one of the key factors for franchise approval, under our above noted program, and others is simply that you require a decent personal credit history. Without getting to technical we can simply say that means that you have historically paid your bills, not been bankrupt, and aren't over borrowing in your personal life. Enough said about that. When we meet with clients looking for franchise financing this is one of the first areas that we (delicately!) explore.

But clients want to know why this is such a key factor, and its simply because the reality is that a franchise is , no matter how you look at it, a small business start up, and lenders look at how you run your personal life as a mirror as to how you will run your business .

Planning - that’s the keys secret in financing a franchise investment you are going to make and ensuring the franchise cost of that decision is properly financed. You do this in a variety of ways, one of which is documenting your purchase and plans via a properly prepared business plan. This document should highlight yourself, your business experience, and show the financial fundamentals of your business, i.e. Cash flow, ability to repay your loans, what the opening balance sheet will look like, etc.

We clearly realize that not all our clients have the financials skills, background and ability to prepare such a document, let alone present it. That’s why it’s a good reason to consult a Canadian business financing advisor or expert who is credible, experienced and trustworthy and an expert in franchise finance in Canada.

We also remind you that step one when you buy a franchise is financing it - step 2 is making sure that you have a plan around how you will grow your business while having enough working capital to run it.

In Canada franchise cost is financed via the Government BIL program we noted - The borrowing limit is 350k, and we have found that this financing can be supplemented with equipment and lease financing for certain assets of the business . Those two strategies, coupled with your own investment of funds will get you to the goal line.

Speak to that ' in the know' advisor we talked about and you should not have any worries in your ability to finance and buy a franchise.

--

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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

We Predict You’ll Love asset financing credit facilities when seeking business finance loans

Making a prediction is a sometimes risky scenario , potentially damaging to your credibility , but we're quite confident in saying that Canadian business owners will recognize non bank asset financing as credit facilities for business finance loans to be the best thing they every heard of when it comes to financing their business .

Quite frankly we don’t think we exactly going out and making a stretch comment because, hundreds if not thousands of Canadian firms are investigating and utilizing this type of financing.

As the Canadian business economy turns itself around going into 2011 most of are clients are finally focused on growth again .But how is that growth to be financing, since lending standards and criteria at institutions such as the banks don’t appear to have been liberalized at the same pace that your company hopes to grow at!

That’s where our trend prediction comes in. Asset based lending focuses on your assets and growth opportunities - it doesn’t focus on rations, tangible equity in your company, rations, covenants, cash flow coverage, etc, etc, etc!

So you are picking up on the opportunity, let’s see how things work. Asset based lenders keep it simple, they lend a very high value against your ongoing assets. What are the typical assets lent against - you can almost guess what they are. They are receivables, inventory, unencumbered equipment and real estate.

The big mystery around asset based lending in Canada, based on conversations with our clients, is that business owners don’t really know or understand who these firms are. So we'll tell you.

They are specialized firms, both Canadian and U.S. based, that focus solely on providing credit facilities and business finance loans with your assets as security. They take the same security as a Canadian chartered bank would, and you manage your facility on a day to day basis, drawing down cash as you need it. Funds are wired into your account as you need them, based on... guess what ... assets! That really is the one key difference that our clients pick up on, that the total focus of this type of assets financing is the collateral itself.

We already know your next question... because we've heard it a hundred times before. Its' how much can we get ‘... followed by what does it cost.
Speaking in general terms your receivables are financed at 90% of their value, and because of the nature and marketability of different types of inventory this type of collateral is margined anywhere from 25-75% . Recall we had noted that unencumbered equipment can be drawn against also. Typically an appraised current market or liquidation value is agreed upon with you and the asset financing provider.

Costs vary around this type of financing. On occasion it is competitive with bank financing - and giving you twice the liquidity - but more often than not it’s more expensive. You offset those costs by greater access to credit facilities that will grow your business and profits.

Speak to a trusted, credible and experienced Canadian business financing advisor who can walk you through the Canadian landscape of business finance loans in the asset based lending area. You'll quickly find, we think, that our prediction is becoming more true every day, asset based financing is hot! And here to stay.
--
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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Here’s 5 Immediate Solutions for working capital financing for your cash flow business needs!

These days you probably would be happy with 1 solid working capital financing solution for your cash flow business needs.

We'll beat that and give you 5 ! How is that for alternative solutions to your working capital and cash flow needs?

Funding of working capital continues to be a large challenge for Canadian businesses of all size - you want to grow your business which requires investment in and of it, and by the way those suppliers and employees want to be paid on time also.

Lets examine some solid real world solutions to your cash flow needs - in some cases all of them could work for you, but in general even a couple of these solutions would ' fix ' the current problems you face on a day to day basis .

The most liquid asset any business always has, (next to cash) is your receivables. Working capital financing is best generated by the collection, or financing of your receivables. This can be done via either faster collections, or selling your receivables as you generate them. This financing is called receivable discounting or factoring, and is becoming increasing popular everyday.

Did you ever think of the government of Canada as one of your best working capital financing partners? Our clients are amazed when we suggest that ' partner' as a solution. But the specialized government program, technically called the BIL/CSBF loan program finances any equipment and leasehold improvements you need via a greatly subsidized loan program. We say subsidized, because even if you are a start up rates are great, guarantees are limited, and loan max amount is up to 350,000.00. Our clients who take advantage of this program consider it, bar none, the best financing in Canada for small and medium business, including start ups.

You've spent your working capital - would you like to get it back? Clients always ask what we mean by that. Any equipment you have already paid for can often be refinanced, the technical term is sale leaseback, and we find that either that strategy or a short term bridge loan with the equipment as security is exactly what our clients need to bridge the cash flow gap.

We spoke above about receivable financing - one of the best facilities for Canadian business is a combo working capital facility that finances, or ' margins ' both your A/R and your inventory. Since many firms previously couldn’t finance their inventory either elsewhere, or via banks, the combined liquidity of borrowing against your A/R and inventory is a true power punch! Typical this type of financing is known as an asset based lending facility, and makes most sense when the facility is at lease in the 250k range, and sky is the limit after that.

Many clients are totally unaware the Purchase orders financing is available in Canada. This is a strong potential cash flow saver, and generator, since your suppliers are paid for product when you order it, once you have received the P O. The P O lender takes the inventory and receivable as security, but in effect finances your whole sale. While it is an expensive form of financing if you have good gross margins and could otherwise not facilitate the sale of your large new orders and contracts it’s a perfect solution.

In summary, make yourself aware of your Canadian business financing options. Working capital and cash flow are available if you have assets and orders. We have demonstrated that clearly to you via 5 separate solutions. Speak to a trusted, credible and experienced Canadian business financing advisor to determine what works 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 6 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_financing_cash_flow_business.html

Why Canadian Business is More Greatful than Ever For Equipment Leasing and Financing and asset finance Solutions!

Many Canadian business owners and financial managers are under the impression that equipment leasing and financing solutions for their asset finance needs are more expensive than other forms of financing.

However, at the same time thousands of businesses everyday flock to the lease finance solution when they are acquiring equipment. How can a finance solution perceived as ' expensive ' be one of the most sought after business financing facilities day after day.

It’s because it’s all about the benefits and flexibility. In pure theory if you were paying full price cash or entering into a term loan you could make a technical financial case that lease financing is more expensive.

But it’s never always about price in your personal life, and that’s certainly the case in business. The reality is that the additional benefits of a lease often over weigh any concerns about cost or interest rates. And quite frankly with interest rates at all time lows in Canada companies with fairly decent credit profiles can get equipment financing in the 7-8% range. And, on top of that, if your company doesn’t have a pristine credit profile you still can get approved because Canadian equipment and leasing and financing professions are experts in asset finance, and a lot of emphasis is placed on your company prospects and the asset itself.

Accounting isn’t one of our favorite subjects when clients ask us for leasing assistance, but the reality is the when you use lease finance effectively - for example operating leases, then you are in a position to increase overall return on assets and your banker or other senior lender isn’t overly concerned about that always omnipresent debt to equity ratio he or she is talking about.

When clients talk to us about leasing we can talk about ten or 15 different issues - but to be honest they only often have one - can we get approval for a rate, term and structure that makes sense for our firm ? That’s the essential question more often than not. And that’s more often when lease finance steps up to the bar! Lessors take, on balance greater credit risk than financial institutions, and in our words, they are more likely to ' buy into your story ' - whether that be a turnaround year, a new project coming up, etc.

Lease decisions from your point of view are often driven by the simple question - can the acquisition of this asset grow sales and profits. Asset finance firms understand that and they essentially become your business partner with the additional capital they put into your equipment financing needs. You on the other hand can use that additional cash flow and working capital for general operating purposes. You have matched long term debt - i.e. the lease, with long term capital - your lease finance strategy.

Speak to a trusted, credible and experienced Canadian business advisor in equipment leasing and financing. You'' be surprised at the financing approval turnaround and the benefits you didn’t know you could achieve.

--
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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

What’s the cost of confidential invoice finance and how does receivable factoring work?

Read all about it! Read all about it! Heard the news today? We're talking about the fact that thousands - yes thousands of Canadian firms are moving toward a working capital financing facility known as receivable factoring. But, what if you could get confidential invoice finance that would allow you to bill and collect your own receivables under this facility? Possible? Absolutely.

So what if you had a commercial business financing facility that gave you unlimited cash flow, and, unlike your competitors, you were in control of your facility. Most Canadian business owners and financial managers know a bit about how factoring, aka receivable financing works.

It’s a process whereby you sell your receivables and receive immediate, same day cash for those invoices. 99.9% of all the financing done in Canada under this business model has the factoring firm collecting your invoices and notifying the customer. They also follow up for collection and interact with your customer, because, as we said, you have sold them your receivable, or receivables in whole.

Like most of our clients, you like the end result, i.e. instant cash flow and working capital, but you aren't necessarily in favor of the factoring firm taking over your client relationship as it relates to accounts receivable. That’s why you should consider confidential invoice factoring. Under this scenario your receivables are billed and collected by yourself, and there is no third party interference with the relationship you have with clients when it comes to billing and collecting.

Maybe it’s just because we're Canadian, but we find out clients are very much in favor of that business model. The bottom line is that your financing relationship is not disclosed to your customers, and that’s a good thing.

So what has happened here? Simply that you have achieved all of the benefits of accounts receivable financing, but under the confidential invoice finance model your receivable factoring is in your control.

Under traditional U.S. And U.K. type receivable factoring your customers receives a letter from either yourself or the factor firm, notifying your clients about the issue of your firm having sold its receivables. If you don’t care about that, no problem...! But if you do care about what the perception of that letter might be then you should consider confidential invoice finance.

While factoring is a high growth area in Canada, the ability to get confidentiality around this process is not fairly well known . .So you know something others don’t, and in business that’s a competitive advantage . It therefore differs from bank financing, and is the alternative to the traditional factoring of invoices that we have talked about here. The bottom line is there is a world of difference in the facilities offered,

And oh yes, the cost? The cost of confidential invoice discounting is the same as traditional factor financing - so that’s a good thing!

Speak to a trusted, credible and experienced Canadian business financing advisor on who will assist you in closing this valuable type of working capital financing solution.

--
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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Are Inventory financing lenders and P O Factoring solutions your best business financing bet ?

Your worst business nightmare has just come true - you got the order and contract ! Now what though? How can Canadian business survive financing adversity when your firm is unable to traditionally finance large new orders and ongoing growth?

The answer is po factoring and the ability to access inventory financing lenders when you need them! Let’s look at real world examples of how our clients achieve business financing success, getting the type of financing need to acquire new orders and the products to fulfill them.

Here's your best solution - call your banker and let him know you need immediate bulge financing that quadruples your current financing requirements, because you have to satisfy new large orders . Ok... we'll give you time to pick yourself up off the chair and stop laughing.

Seriously though...we all know that the majority of small and medium sized corporations in Canada can’t access the business credit they need to solve the dilemma of acquiring and financing inventory to fulfill customer demand.

So is all lost - definitely not. You can access purchase order financing through independent finance firms in Canada - you just need to get some assistance in navigating the minefield of whom, how, where, and when.

Large new orders challenge your ability to satisfy them based on how your company is financed. That’s why P O factoring is a probably solution. It’s a transaction solution that can be one time or ongoing, allowing you to finance purchase orders for large or sudden sales opportunities. Funds are used to finance the cost of buying or manufacturing inventory until you can generate product and invoice your clients.

Are inventory financing lenders the perfect solution for every firm. No financing ever is, but more often than not it will get you the cash flow and working capital you need.

P O factoring is a very stand alone and defined process. Let’s examine how it works and how you can take advantage of it.

The key aspects of such a financing are a clean defined purchase order from your customer who must be a credit worthy type customer. P O Factoring can be done with your Canadian customers, U.S. customers, or foreign customers.
PO financing has your supplier being paid in advance for the product you need. The inventory and receivable that comes out of that transaction are collateralized by the finance firm. When your invoice is generated the invoice is financed, thereby clearing the transaction. So you have essentially had your inventory paid for, billed your product, and when your customer pays, the transaction is closed.

P O factoring and inventory financing in Canada is a more expensive form of financing. You need to demonstrate that you have solid gross margins that will absorb an additional 2-3% per month of financing cost. If your cost structure allows you to do that and you have good marketable product and good orders you're a perfect candidate for p o factoring from inventory financing lenders in Canada.

Don’t want to navigate that maze by yourself? Speak to a trusted, credible and experienced Canadian business financing advisor who can ensure you maximize the benefits of this growing and more popular business credit financing model.
--

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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Your Competitors use SRED Financing to Cash Flow Their CRA SRED (SR&ed) tax credit claims for Working Capital

Your business success hasn’t been based on doing what your competition does, but if they are utilizing sred financing to grow their business doesn’t it make sense to investigate why cra sred claims, when financed, might put you a step ahead of the competition?

We think so , and if the Scientific Research and Experiment Development Program , aka " sr & ed ) pours billions of dollars into Canadian company coffers every year why wouldn’t you want to accelerate the access to cash for those claims and maintain your own competitive posture in your industry .

The financing of you sred claim, via what we could call a sred bridge loan is a recognized and solid manner in which to recover working capital faster. The very essence of having a sred claim filed of course means you will recover your funds, but doesn’t it make sense to recover them sooner, putting cash flow and working capital back to work for your company.

In business it’s all about timing, and in case you haven’t noticed things aren’t exactly moving slower in Canadian business today. So is it an advantage to get immediate cash for your sred calim instead of waiting several months, in some cases up to 9 or 12 months for your funds? You probably don’t need exactly cash flow these days - therefore we strongly recommend waiting for your cheque from the feds, it’s ' in the mail ' so to speak. However, if you're among the many clients that we meet that could actually use additional cash flow today, then you should be considering financing your claim.

What are the mechanics of having your claim financed, ask client such as yourselves? To say that SR &ED financing is a niche industry requiring knowledge and expertise is a bit of an understatement. That is why we strongly suggest you work with a trusted, credible and experience d business financing advisor who will walk you through a very basic process.

Sred financing will, 9 times out of ten, get you approximately 70% of your total sr&Ed filing as a cash flow bridge loan. Why 70%. It is simply because the remaining 30%, which of course still belongs to you, is held back as a buffer to cover both any adjustments the good folks in Ottawa might make to your claim, and it also helps to cover off the actual financing charges. However, it’s easy to see that if you have a claim, for example, of 300k that an immediate cash flow loan of 70% of that amount generates some real cash back into your firm. Which of course, per the program, is in effect a non repayable grant.

Could the benefits therefore be any clearer - The Canadian government is reimbursing you with your R&D funds and you are accelerating that re imbursement straight back into working capital. Use the funds for whatever general corporate purpose - pay payables, buy new equipment, re invest in more R&D, it’s your call!

The mechanics of sred finance are simple - have a claim prepared by a credible consultant or accounting firm. Complete a simple business financing application, go through standard due diligence as you would any type of financing, and execute a financing document which in effect collateralizes the sred for your sr&Ed loan. The entire process can be completed with a couple of weeks with the right amount of commitment on your part.

If your sred claim was prepared by a consultant who did it on contingency you can even pay them out of the financing - at that point everyone is happy!

Your competition probably finances their cra sred claim - why not increase your own cash flow and maximize your refund for the best uses your company can utilize. That’s a competitive financing strategy that works!
--
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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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