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!

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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_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!
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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_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.
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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_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.

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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_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.

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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 :

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!

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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/franchise_finance_franchising_lenders_franchisee.html