Navigate the Canada Small Business Government Loan - Successful SBL Financing

Navigate! The Dictionary defines the term as ' to walk or find ones way ‘. That's what we are going to do, make you a navigational expert on the ' SBL ‘, more commonly called the Canada small business loan . It’s also called ' the government loan ' and we will provide some clarity around why that is and is not necessarily the case!

Let's get down to basics. Your first questions probably is - ' what is the Canadian government doing in the loan and Canadian business financing area?! ) That's a valid question of course. Industry Canada is the department that runs the program. The program has been around for many years and is designed to encourage ' financial institutions ‘to provide small business loan financing that they otherwise might not be able to do.

So who are these financial institutions? For the most part we're talking about Canadian chartered banks, although some business oriented credit unions also underwrite the program. That is where a lot of the confusion around the program exists - namely that while the government sponsors and in fact created the program it is administered on a daily basis by Canadian banks.

Why would the banks participate in the program? For the very simple reason that the Canada small business government loan, aka ' SBL ' has Ottawa picking up 85% of the tab if a loan defaults.

When we look at all the questions clients have around the program a couple common themes consistently come up - they are key issues such as ' How much can we get “(that’s a very popular one!) as well as ' how does it work and what do I need to do to apply ?

Let's address the dollars in the SBL program. The magic number for the program is $ 350,000.00, but if you use it specifically for real estate the program actually can be up to $ 500,000.00.

Would any company or entrepreneur want to purchase real estate under the program? That may or may not be an attractive option - for example under the current terms of the program the monthly payment would be in the 7K per month range , so that would have to be weighed against other options .

So who uses the Canada small business loan, and why is it beneficial. The reality is that over 7 thousand firms used the SBL government loan last year alone, for financings approaching 1 Billion dollars. Funds for the program are geared toward two asset classes - equipment, and leaseholds. Your ability to finance leaseholds under the program is one of the best features of the program. as this asset class is very difficult to finance otherwise .

Most popular questions #2 about the program is simply ' how does it work - where do we apply ‘. This is where it falls apart for many entrepreneurs. They aren’t prepared, spend days, weeks, and yes months stumbling through the program, and are frustrated if they are declined. They are simply astounded when we tell them a simple clean proposal, done properly can get the financing approved in 48 hrs.

Not sure about navigating your own way around the program to both achieve maximum financing and of course approval? What then. Simple, speak to a trusted, credible and experienced Canadian business financing advisor who can help you navigate the waters of financing success for the government SBL loan program in Canada.
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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/canada_small_business_loan_government_sbl.html

How Charlie Sheen and I Discovered How Financing a Franchise Works – A Canadian Franchise Lending Loan Business Story !

This is a strange one. I had a dream last night that I was on a business trip searching for the answer to financing a franchise in Canada. To many people franchise lending and getting a franchise loan for their new business is a challenge.
I wanted to reduce the risk and increase the chances of success for Canadian franchisees.

When I returned from the trip who did I find at our offices but Charlie Sheen, a very famous personality these days. I was surprised but I simply figured that he too wanted to know the secrets and inside tips on franchise financing in Canada. So not too surprising that he had such a strong interest in this area.

Charlie wanted to know about my trip - he seemed excited about being able to know the methods in which franchises were financed in Canada - he seemed totally interested in everything I was about to share .

I told Charlie that I had stumbled upon the exact method under which most franchises were financing in Canada, and moreso, I knew exactly how to complete transactions successfully. He was all ears.

In order to access the capital you need for financing a franchise in Canada wouldn't it be safe to say that you needed to understand who is offering this financing. I told Charlie that although there are a very small handful of specialized firms in franchise finance that the actual majority of franchise lending in Canada is done under a specific program called the CSBF program. It is underwritten and sponsored by Industry Canada, and the government mandates that Canadian banks ' administer ' the program. Charlie’s eyes were locked on mine. He couldn’t believe government on a daily basis was financing franchises.

Charlies asked if it was possible to ensure that the whole process of obtaining a business franchise loan wasn’t time consuming and frustrating. I assured him that if the prospective franchisee was properly prepared it was a smooth process.

Charlie wanted to know more. ‘So this actually works?' he asked. I assured him it did. To keep it simple for Charlie I explained that a good way of sizing up your ability to get approved is thinking like the lender. In small business financing, because that’s what a franchise is, the focus is on what some call the 4 C’s.

Charlie moved closer. What are the 4 C's he asked? I explained that they were character, capital, capacity and credit. Simply speaking if you have a good business reputation and experience, some funds of your own, and reasonable personal credit history then the ' capacity ' to repay the loan becomes significantly enhanced - bottom line - you will be approved!

Charlie had a question - ' Are you saying that if I am properly prepared I can be successful in financing a franchise?" Exactly, I replied. Ensure that your experienced and credible Canadian business financing advisor works with you to achieve a package that includes a solid business plan, an overview of your experience, a documented cash flow repayment, as well as your ability to put a reasonable personal investment into your new business.

Charlie wanted to know how we could share this knowledge - he suggested a Cross Canada tour we would call ' The Torpedo of Franchise Financing Truth ‘. Not necessary I said , lets just advise Canadian franchisees to seek the services of a trusted, credible an experienced Canadian business financing advisor who will assist them to get the franchise loan and financing they need to begin their new role as entrepreneur/ business owner.

I’ll always wonder if Charlie had the same dream?

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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/financing_a_franchise_lending_loan_business.html

Is ABL lending And Banking the Fountain of Youth Of Business Financing ? Financing Via Asset Loan Lenders

We're all familiar with the story - searching the jungles to discover what may not exist - a secret or dream that might deliver on wealth or happiness.

What does this possibly have to do with ABL lending and banking in Canada?! Our point is simply that something you think may not have existed in terms of an all encompassing business loan financing arrangement in fact might exist - you just didn’t know where to find it.

Let's look at the hard facts - in 2008 and 2009 the Canadian business financing market went ' conservative ' and boy is that an understatement. Business financing reduced, companies such as yours hunkered down and just tried to exist, let alone expand and grow. Canadian banks emerged as the superstars of the Global financial marketplace - they didn’t go under... they remained profitable, they just did a lot less for many Canadian businesses, and in hindsight it’s hard not to understand why.

Could it have gotten any worse -actually yes, borrowing rates rose, many firms disappeared, and, at the core of our subject here, active lenders exited the Canadian market.

So was it all gloom and doom. You can make the call on that one, but the good news is that one form of business financing, ABL (Asset Based Lending) banking and lending become more valuable and more popular... in a way it become out business fountain of youth.

With the increased flexibility of abl financing in Canada came the financing that your business needed to grow. Essentially this type of financing margins assets at higher value, because abl lenders understand the true value of the asset - and if they don’t understand it they will take the time to understand the value those assets. (You might get a bill for that, but it will be worth it, we can assure you!).

We may have glossed over the true meaning and definition of abl loan financing in Canada. Simply speaking it’s a very clear formula based on the ongoing liquidation values of your receivables, inventory, and equipment, and you borrow everyday against those values. It’s a concept that is very easy to understand for most Canadian firms - especially when benchmarked against Canadian commercial banking facilities for small and medium sized companies in Canada.

So what have we got against banks? Absolutely nothing, in fact Canadian bank reputation is stellar globally. However, if you cant get prime based borrowing and if you are unable to meet covenants and ratios required , or if you are too ' small ' for such a facility then guess what - the fountain of youth, the secret to business wealth and happiness just might be abl lending and banking facilities .

True asset based facilities aren't ' loans' per say, you are just monetizing assets to create on going cash flow.

Interested? If your firm is growing rapidly, highly leveraged and unable to meet bank covenants, or is you just have curse of growing too quickly (?!) speak to a trusted, credible and experienced Canadian business financing advisor on ABL banking in Canada .
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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/abl_lending_banking_lenders_loan_financing.html

Interested In Understanding Business Working Capital in Canada ? Cash Flow For Operational Needs

Interested in finding out why business working capital and cash flow challenges for operational needs are a challenge for small and medium sized businesses in Canada? We are pretty sure you are even more interested in some solutions to that challenge!

A March 2011 report out of the U.S. noted among other things that small and medium sized firms are still having huge challenges in raising the working capital they need - even though in many sectors business is back to ' booming ' again . As a Canadian business owner or financial manager you would like some solutions to get that cash flow booming again, we're sure.

For firms that are mature in age, have good assets and strong operational cash flow those challenges are limited. However, if your company is on the opposite side of that spectrum you're living in a ' business hell ' if we can use that term - at least if it isn’t hell its purgatory!

How can you identify the best, what we can call ' straight forward ' options for working capital and business cash flow solutions? We think the answer is simply understanding and getting a handle around the traditional ( or conventional ) Canadian business financing techniques , but, even more importantly, understanding newer solutions that are becoming more mainstream in acceptance everyday . Without the resources of an experienced business financing advisor you might not even have heard of some of these solutions, let alone having considered implementing them.

We're the first to agree that Canadian banks are lending again, rates are close to all time lows, and credit reins and collateral and covenants have slowly loosened. But again, small and medium sized businesses aren’t feeling it. Another recent March2011 survey, albeit U.S. based said most business owners still experience temporary or severe cash flow issues, forcing them to delay payments to suppliers, and delay spending on new assets for business growth.

In order to implement better, or newer working capital and cash flow business operational strategies your firm must understand how you are managing your finances now, what assets are available to monetize, and, often forgotten, you must have a handle of what future cash flow needs will be.

As we noted, traditional bank financing is alive and well in Canada. For those that can't leverage the amount of operational credit that they require a better understanding of ' new ' solutions is required. And we know you've been waiting for what those new solutions are!

More recent and increasing widely accepted methods of generating working capital include the following - asset based lending , working capital facilities that margin a/r and inventory as a combo , confidential invoice discounting , securitization, cash flow sub debt loans, purchase order and contract financing, as well as bridge loans on already owned equipment . Our favorite - asset based lending... but more about that one on another day.

Any of the above solutions will allow you get your cash flow and working capital under control. Speak to a trusted, credible an experienced Canadian business financing advisor. Reclaim your business cash and operational financing!

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

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

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

Cash Flow Restricting Your Growth? Let business Equipment Financing And Leasing Of Industrial Assets Do The Job

Can you count them? How many times have you felt your ability to grow your company with additional sales and profits was restricted by inability to obtain business equipment financing and leasing for industrial and other types of equipment? If you're one of the lucky ones that survived the 2008-2009 recession and your business is growing again (or surviving?!) let equipment financing and leasing move your business forward.

The scope of leasing for industrial and other types of business equipment is broad, and that’s an understatement. Canada's largest corporations utilize lease finance, and even small entrepreneurial start ups can utilize all the advantages of this type of Canadian business financing.

Most business owners and financial managers in Canada prefer certainty when it comes to business financing. Equipment financing and leasing brings that predictability. Why is that? Simply because if you have chosen your asset properly (we’ll leave that one up to you) and matched the asset with the right type of business equipment financing then you have just succeeded in closely matching the cost and cash outlays to the benefits you will receive from the asset - whether that be high end industrial equpment or the latest computer or telecom technology.

Again we come back to restrictions you face on acquiring those assets. And this time the evil doer is ' the budget ‘. In talking to clients about lease finance and their strategies they employ they are often stymied by the budget cycle. Again, this applies to every type of corporation, large and small, it’s just that the big boys probably have a bit better handle on the planning and documentation around a budget.

But does budgeting have to restrict your success. We don’t think so, and that’s why equipment leasing comes to your rescue. When your company budget doesn’t not allow for either the size of an asset or the timing of the acquisition to work the way you want it to then business equipment leasing should become the solution of choice.

Why? It doesn't get any simpler. You can acquire assets of a significantly higher size by focusing on monthly payment and not total expenditure, and there are tens of ways you can adjust payments to reflect beating that budget. Payments can be temporarily deferred, lowered in earlier term of the lease, and if you choose an operating lease then your asset doesn’t even get impacted by the budget cycle. That’s because the monthly lease payment is treated as an operating expense within your operating budget.

In summary, it’s a battle out there, and you shouldn’t let your competitors win the asset acquisition battle because your firm didn’t take advantage of the flexibility of business equpment financing. Whether your obstacle to innovation is cash flow, budget cycle, asset dollar value, etc we think we have shown that you now have the ' tool kit ' to combat the business growth challenges you face in acquiring assets.

Speak to a trusted, credible and experienced Canadian business financing advisor on lease strategies that will allow you to meet and achieve business financing goals.


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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/business_equipment_financing_leasing_industrial.html

The Secret Of Commercial AR Factoring And An Accounts Receivable Financing Loan In Canada

Mind your own business! That's what a Canadian business owner or financial manager would prefer to do when they are considering accounts receivable financing, aka a commercial ar factoring loan. AR is of course accounts receivable, your second most liquid asset next to cash. Oh and by the way, the good news is it’s not a loan, per se, more about that later. Unfortunately current practices don’t allow you to ‘mind that business ‘.

So is there a way your company can obtain all the advantages of factoring , receive a competitive financing rate, and at the same time implement what is in effect a confidential invoice discounting program ? There is. First let’s cover off some basics.

You know the drill already. Your client base and investment in accounts receivable is taking up a huge part of your working capital. Sales are growing, or you have some major new contracts and business, forcing your working capital needs to go up.

The strategy. It's of course what thousands of business in Canada are starting to consider everyday - factoring. (Also called commercial invoice discounting). If you were going to implement this strategy in the manner that your competitors currently are then you would sell your receivables as you generate them , obtaining immediate cash flow to generate more sales, more profit , and of course cover all those operating costs you need to run your business on a daily basis .

But wait a minute. As commercial ar factoring and ar financing stands now in Canada, utilizing the U.S. and European model, your clients must be notified that you have sold that receivable to the finance firm.

Is there a way to avoid that somewhat ' sticky ' process and embrace the theme of our shared information here, which is ' minding your own business ‘? There is. The secret we are sharing is the availability of ' C I D' which stands for confidential invoice discounting. This is clearly the accounts receivable financing of preference for Canadian business.

Let’s examine what just happened as you have implemented this program. You have a bankable, liquid asset, your receivable portfolio. You now have the ability to in effect ' monetize ' that investment into working capital and cash flow today.

The costs of factoring are always a concern or subject of discussion when we talk to clients. The cost is in the 1-3% range per month. However companies such as yours need to understand that you can often cut those costs in half by effectively using your new cash to generate immediate sales an profits, take advantage of supplier discounts, and purchase more effectively and ' smarter ' from valued key suppliers .

So how does our ' secret ‘, i.e. confidential invoice discounting (factoring) work? It could not be any simpler. You bill and collect your own invoices, still receiving funds for them as you generate them. C I D rates are the same as ' regular ' commercial ar factoring, yet you are now in control of the process. And remember, important for you to understand this whole process is not a ' loan ' as we mentioned, you are just monetizing assets and turning them into working capital as you need them.

Let’s recap - the strategy = generate cash! The tactic - C I D - Confidential invoice discounting. Do you qualify? We are pretty sure you do, so why not speak to a trusted, credible an experienced Canadian business financing advisor on this valuable working capital concept.
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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/commercial_ar_factoring_accounts_receivable_loan.html

Breakthrough The Canadian Equipment leasing And Financing Barrier - Business Leasing Strategies That Work!

Its official - your company is on the road to recovery in the Canadian business landscape. So how can you use equipment leasing and financing as a new economy strategy? Let’s share some tools and strategies for Canadian business owners and managers, allowing you to maximize business leasing dollar benefits.

The economic havoc that wrought business financing tension in 2008-2009 appears behind us. However, the cost of, and access to credit remain two key issues in Canadian business financing.

Equipment leasing allows you plan carefully for growth. Think of all the uncertainties you have in either replacing or purchasing a new asset. Those key uncertainties are things such as cost of the asset, the obsolescence issue, concerns around asset acquisition negatively impacting your working capital, as well as competitive pressure.

Any of those issues might seem insurmountable if you didn’t have a business leasing alternative for asset acquisition.

Many companies in Canada have not thoroughly investigated the use of operating leases as a business leasing and financing strategy. This strategy alone can give you a triple weapon to beat the cost of assets, the cost of financing, and, as we noted, that pesky ' obsolescence ' issue.

So how does the owner of CFO implement such a strategy? We're the first to admit it works best on technology related assets, i.e. computers, telecom, etc. Let your Canadian equipment leasing company take the risk by your careful creation of an operating lease. This transaction is very powerful... why? .. simply because your payments are lower, your monthly rentals are fixed , the overall cost to finance a depreciating asset is less, and last, but not lease, it you who make the call at the end of the lease term on owning, returning, or extending your transaction !

It should be obvious to any business owner or CFO that you can’t break through and business financing barrier if you don’t know who you are dealing with. There are tens, hundreds actually of business leasing firms in Canada.

Want to waste a lot of your valuable time? If you do then don’t investigate the type and size and credit criteria of the lease firm you are dealing with. That’s not our recommendation however! What you want to do is ensure your asset and your financial situation is matched with a firm that perfectly suits your equipment leasing needs. So that can be a small ticket item, a complex technology strategy, or a used piece of heavy construction equipment. Bottom line; know you lessor re asset type, credit criteria, and flexibility re structuring.

Hers a simple breakthrough strategy - simply make a list of whats important to you in your leasing financing decision - key items might be capital conservation, payment flexibility, enhanced structuring , a la off balance sheet, etc . Any one of those items, properly completed, can save you thousands of dollars on a transaction.

Business leasing is back in demand! Your competitors are for sure utilizing business leasing. Your company is unique. So whether your reasons to finance are technological, financial, convenience related, or hard core economic - (i.e. diversifying your borrowing) don't dismiss your ability to achieve breakthrough financing via equipment leasing in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor for some of the best business financing advice you will ever receive on business leasing.

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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_business_leasing_financing.html