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!

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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