Canadian ABL Lending - True Success In Banking and An Asset Financing Loan

Are you enjoying life as a commercial borrower in Canada - We can't even imagine some of the answers to that question, although we have certainly heard a lot of the stories! Let's examine why a new breath of fresh air, ABL lending has become a favorite and very unique banking and asset financing strategy in Canada.

One of our favorite expressions these days is that the old ways don’t work anymore. As it relates to today’s subject we're talking of course about commercial banking facilities in Canada, and focusing primarily on firms that have challenges to raise working capital and cash flow facilities that work.

It often comes down to a comparison of the two types of financing, traditional Canadian commercial banking, and our favorite new kid on the block, ABL lending and banking. We use the term new but quite honestly it’s simply a Canadian business financing facility that hasn’t been heard of by many Canadian business owners and financial managers for a variety of reasons. Maybe some people prefer to hide a good thing and keep it secret.

So whats better, a ' regular ' commercial banking facility via a Canadian chartered bank, or ABL lending and financing via a true asset based line of credit? Regular commercial facilities are extremely focused on criteria for mutual success - we say mutual because we hope everyone agrees your firm and the lender both have to win. (By the way, we are on our clients side! in that battle)

Got what it takes for a Canadian commercial banking facility - you know the drill - you need reasonable leverage, no significant events that are negative in nature, covenants that are a combo of income statement and balance sheet based, - example: fixed charge coverage, etc!

But hey, what about ABL banking and asset financing - whats required there. . Are you ready? Just assets!

That’s the appeal of asset based banking and financing - it focuses almost solely on current assets, key categories being of course receivables and inventory. Where our commercial banking friends focus in a dramatically different manner in analyzing and funding your business the ABL focus is simply n asset monitoring, and ensuring you can borrow on a daily basis at the highest of advance rates based on real world values of your assets. Oh, and by the way ' strange events ' are fully allowed - so you have a challenge, an acquisition, a special loan situation, a year of bad luck .. You will still be forgiven by abl lending and banking.

Want to ensure you have maximum availability on borrowing against your assets on a daily basis - speak to a trusted, credible and experienced Canadian business financing advisor about an asset based line of credit that makes perfect sense for your company.

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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_loan_asset_financing.html

5 Smart Simple Canadian Working Capital Cash Flow Financing Loan Techniques !

Working capital Cash Flow - A measure of a company's financial health. Equals cash receipts minus cash payments over a given period of time. That’s one of the better definitions we've seen lately. And could that emphasis on ' financial health ' be any truer? - We don’t think so.

Canadian business owners and financial managers want to... wait a minute, need to! understand cash flow concepts . And by the way cash flow solutions wouldn’t be bad also, and we'll shortly be identifying some of those!

We all agree that cash flow financing forces the business owner to address some really key issues, i.e. dealing with banks, borrowing from other independent finance firms, etc. When we sit down with clients that bring in their balance sheet and income statement its clear to us that there is a true mis understanding often... in the business owners eyes about what that incomes statement is telling us. It's those changes in the balance sheet they should be focusing on instead, in particular our working capital accounts, receivables and inventory.

Are there real world Canadian made solutions for managing cash flow financing , and what type of ' loan ' is best suited to address your cash flow needs, or crisis!
?

When you think of it , it all comes down to managing your billings, aka receivables, granting terms to clients, and of course managing payables which many business owners omit in their ' cash flow analysis '.

We can also add that a great concept we use is often overlooked , and that’s the quality of earnings , Simply speaking, your net profits don’t always ( in fact rarely ) equal your cash flows. The closer you can bring those two together, at a reasonable financing cost, will be the solution to working capital cash flow financing. A quick example would be giving customers extended terms and booking larger sales and profits... for awhile!

So, great job so far on all the technical jargon, right? Not what you were looking for?! Let's jump into the real world, our favorite place. We're identifying 5 working capital cash flow financing ' loan' techniques. And guess what, 4 of them aren’t ' loans ' per se.

If you want to fix, better, or change your cash flow financing consider one of the following - C I D receivable financing, a cash working capital term loan - injection permanent working capital into your firm, a full fledged ABL facility , a junior working capital facility, and , our most esoteric but real solution, inventory and purchase order financing .

Any of these 5 solutions will better your cash flow existence. Want information on what they are, how they work, what they cost and where to get them... seek out and speak to a trusted, credible and experienced Canadian business financing advisor.

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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_flow_financing_loan.html

Canadian Do It Yourself Equipment Lease And Loan Advice – Commercial Business Financing

What caught our eye the other day in a U.S. based article was a title that screamed ' What's hot in Equipment Lease and commercial business financing '. The article went on to say that a large number of industries were totally back to using lease loan type financing for their asset needs.

But hey, this is Canada, so let’s try and make some sense of whats happening in equipment finance ' up here ' and how Canadian business owners and financial mangers can reap those same benefits.

Have you ever wondered what the most popular types of equipment are when equipment lease financing is utilized? In general the categories or industries that use this type of financing most are the following: Medical equipment, oil and gas assets, machinery tools, trucks and trailers, construction, and yes airplanes - clearly most aircrafts are financed!

It’s safe to say that if your company is in any of the above industries it might be advisable to jump on board, but the hard core reality is that lease financing and commercial business financing leases and loans can be utilized for any type of business asset. And when that asset creates revenues and profits for your firm a lease finance firm wants to be your financing partner.

Two key areas of equipment financing mentioned in the U.S. article were operating leases and used equipment valuation. It's been a tough couple years for all industries, and during the 2008-2009 but it is much easier these days to get used equipment financing, an appraisal or some type of valuation might be required.

As a Canadian business owner your perspective on asset acquisition probably constantly changes - you are wresting with general economic conditions, tax and accounting issues, and competitive pressures.

Can you actually be a ' do it yourselfer' in equpment lease business financing? We're the first to suggest expert assistance often helps but the bottom line is that many Canadian business owners are more sophisticated than ever when it comes to understanding the benefits of lease finance.

As a lessee you should be prepared to make a strong case for rates, terms and structures you think you deserve - this involves being informed about the general Canadian commercial equipment business financing market and then making smart choices when it comes to managing your working capital via this type of financing. Conserving your capital and cash flow , leaving your other borrowing power intact, and focusing on 100% financing of the asset will make you a do it yourself expert in asset finance .

Not 100% comfortable in working your way through types of leases offered, who are the players in the Canadian market, and structuring transaction that work from a cash flow perspective ? No problem? Seek out the services of a credible, experience and trusted Canadian business financing advisor who will assist you in your 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/equipment_lease_loan_commercial_business_financing.html

Business To Business Financing And Financial Factoring – Whats In It For Me?

It's not an unreasonable question! If you as a Canadian business owner or financial manager are going to make the change to a business to business financing model such as financial factoring you want some great reasons why this is a positive move .

Let's examine some of the key reasons that you as a business person would, or perhaps should! consider financing your receivables .

From the outside it seems fairly simple, doesn’t it? Your company appears to become a cash flow machine just by utilizing this type of financing for Canadian business. And what could be better than a financing strategy that brings no debt to the balance sheet and doesn’t dilute your ownership either - that seems to be to powerful ' whats in it for me ' reasons right there!

But will this type of business financing benefit your firm. We'll say two things about that - it will, but, and it’s a big but, only if you manage the whole process properly. Very clearly speaking it’s a case of having a strong handle on your overall financial position at any point in time. Let's be honest also, any cash flow problems you have now did not happen overnight and your ability to both manage working capital and plan for cash flow needs is key to everything we are talking about here .

Clients are always asking about the benefits of financial factoring - those seem obvious - you can grow your sales revenues, purchase additional products such as key inventory requirements, and one other benefit that many Canadian business owners almost always forget. What is that key benefit?

Simply that you are now in a position to reduce the cost of this type of financing by utilizing cash to take supplier discounts as well as purchase your goods in a ' smarter and harder ' way . Imagine being able to say to your suppliers that you will pay them on delivery... if you can get a better price.

Canadian businesses that consider business to business financing comes in all shapes and sizes! The reality is that you can set up a facility to finance 15k a month or you can set up a facility for tens of millions of dollars. Larger facilities come with improved rates, as well as a day to day business model that you will find more accommodating.

So what about that cost of factoring - There isn’t a day when we aren’t debating that issue with customers. In Canada the cost of business to business financing and financial factoring ranges from 1-3% a month on balance - yet don’t forget we've shown you how to potentially cut that cost in half when you utilize the cash flow generated in a positive manner.

As a business owner, if we had asked you these questions yesterday “Where will your cash flow be 6 months from now? what would have been your answer . We're betting that you would say that you just don't know the answer to that one - however if with accounts receivable financing you can now say with surety that if you will have sales you will have cash flow ! Simple as that.

Speak to a trusted, credible and experienced Canadian business financing advisor on the merits of factoring and the business to business financing model in Canada. Whats in it for you? Peace of mind and cash flow predictability... that's all.
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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_to_business_financing_financial_factoring.html

Guaranteed Powerful Equipment Leasing Tips For Canadian Companies Financing Large and Small Assets

As a Canadian business owner or financial manager you would prefer to have the inside track on equpment leasing and financing companies in Canada. How would that inside track benefit you on asset acquisitions both small and large?

Well for a starter you would have a strong sense of when this type of financing is appropriate, where does the financing come from as it relates to your firms needs, and what is the best use and cost for this type of financing. The bottom line? You are simply looking for an ease of acquisition Canadian business financing strategy.

Let’s get you going on both the inside track and the fast track! Let's start with a typical situation many of our clients find themselves in. Business isn’t bad, but it isn’t great. You see the potential to significantly grow revenues and profits with the addition of new equpment. This new equipment gives you the opportunity to grow.

Where do business owners go when they need such financing. Typically most owners consider Canadian chartered banks. If you can achieve bank term loan financing and can support your transaction with strong financial statements and good personal credit that is a viable option.

However, many business owners find themselves ' cash poor ' and not always able to meet more stringent bank criteria. Enter equpment leasing companies! Your best bet for financing / leasing long term assets.

Why is the equipment leasing strategy so powerful and virtually guaranteed? Powerful for many reasons - some of the key ones being that you can often achieve 100% financing of the asset, the approval time compared to other types of financing is basically ' rapid ' to say the least, and finally, it a whole separate subject in some cases, but its safe to say that many accounting and tax benefits accrue to this type of financing of small and large assets.

Can we add anything else to our ' power strategy ' on the offering of equpment leasing companies - We sure can. This financing is flexible. Payments and overall structured are geared to making your transaction work in the best economic light.

We once read that equpment leasing approvals are more ' adventurous ‘! We're not so sure that is the best use of the term, but what we can say is that your chances of getting a lease approved is significantly higher than almost any other type of financing you could get for those new large or small assets .

So whats the best way to implement power strategies for Canadian equipment leasing and financing. You need to know that equipment leasing companies focus on the following - your years in business, your industry, the type of equipment you are financing, and the general credit quality of your company. In many cases for smaller transactions only one simple application is required. Larger assets will require some financial due diligence on your financials and prospects, but approval still comes as quickly more often than not.

Want to improve your chances of equipment leasing companies approving the financing you need be it small or large. Simply talk to an experienced, trusted and credible Canadian business financing advisor in the area of equpment leasing and financing - you'll get tips and strategies on achieving the best and easiest type of business financing in Canada.

P.S. Remember, whether is 5K, or 5000K, no transaction is too small or large!

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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_companies_financing_small.html

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