Supersize Your Canadian Business Accounts Receivable Finance Success via Confidential Invoice Discounting Factoring

Surprised? Clients often are, when we tell them that they have the ability to ' super size ' their level of working capital and cash flow via a little known business accounts receivable finance strategy known as C I D - confidential invoice discounting or factoring .

What do we mean exactly by the reference to supersizing? Simply that it is highly possible that on utilization of this type of financing you will often double, in some cases triple your access to immediate cash flow and working capital. And in some cases where you would have been self financing or had non financing in place whatsoever, well, your firm has it now.

So what’s C I D - how does it work, what can we compare it to, what does it cost, and why is it so innovative. That’s a lot of questions, so let’s get to some basic answers.

C I D, as we stated is our terminology for confidential invoice discounting, more commonly also called factoring. This type of financing is used by firms of all sizes (even major corporations, by the way) but in reality seems to be more common in the S M E (small and medium enterprise sector). It even accommodates start ups if you can believe it, as any type of financing for a start up is often a major challenge for the business owner.

As a Canadian business owner in the business to business market you typically have a large investment in accounts receivable. But how do you finance that investment when traditional capital is not available, or the reality is that you dont qualify?

That's exactly where business accounts receivable invoicing and discounting comes in. Your ability to sell those invoices as you generate them, using the A/R as collateral allows your company to turn into an instant cash flow machine.

So that’s the essence of factoring, or invoice discounting, but where does our key benefit of confidentiality come in. Right about here! Because the key difference of C I D and business factoring is that you are in control of your sales ledger and customer base, not the factor firm. That’s where you immediately gain superiority over other firms who use this type of financing but are forced by their factoring agreement to make their customers aware of how they are financing their firm.

On a daily basis C I D work in the same manner as what we will call ' traditional ‘ accounts receivable finance and invoice discounting. It’s a simple process. You generate invoices for the products and services that your firm provides and you receive immediate same day funds for 90% of the invoice value. The remaining 10% is held back until you client pays, you then receive the 10% less a finance fee of anywhere from 1-2.5% per month.

Clearly the advantages of this type of business financing couldn’t be more pronounced - its quick financing, its easy to administer ( you bill and collect your own a/r) and you use that valuable working capital and cash flow you have just achieved to run your business on an operating basis .

So, does Confidential Invoice Discounting seem like the proper accounts receivable finance strategy for your firm? Ultimately you will decide that - we're simply letting you in on the secret and letting you be the decision maker around super sizing that cash flow. Speak to a trusted, credible and experienced Canadian business financing advisor on how this type of business financing can put you ahead of the pack!



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/accounts_receivable_finance_business_invoice.html

Why Canadian Merchant Cash Advance And Business Credit Card Loan Facilities Are Popular forms OF Small Business Finance

There certainly aren’t countless options for small business, retailers, restaurants, etc for achieving working capital and business financing success in Canada
So let's discuss the new and up and coming kid on the block, who goes by a variety of creative names - including but not limited to : merchant cash advance , small business loan, and credit card advance sales loan.
What are these facilities, how do they work, and are they perhaps tailor made for your short and intermediate term cash flow and working capital needs.
The merchant cash advance became popular clearly as a result of businesses such as yours, probably retail in nature who have seen traditional sources of financing either disappear, and quite frankly perhaps weren’t even there in the first place!
While this form of financing is more expensive than traditional financing, as alternative financing goes, it does the trick, providing you with working capital and cash flow based on future sales.
And we can assure you that we spend a lot of time with clients carefully explaining that it’s not a loan per se that brings onerous debt on to your balance sheet. You are simply receiving an ' advance ' against future sales. Other commercial business makes sales, and then immediately finance their receivables to generate cash flow. In the case of your business, either a retail establishment or a restaurant ( basically any business that takes credit cards on a regular basis ) your are simple cash flowing those future sales, getting funds today, and repaying the advance via a percentage of future sales that you feel confident will be made .
Using a simple example, if you are advance , again just as a example here, $ 10,000.00 for your working capital needs a per cent age , typically 10 -30 per cent of future sales is used as a repayment of that advance your firm has just been provided with . Where this works best is if you have a solid credit card sales revenue model, and your have solid gross margins on your services, products, etc.
So is it a good idea for you firm? Well, certainly as we said, it’s a newer form of alternative financing. In most cases we see when discussing the options it is clear to all parties that traditional bank financing options have been fully exhausted. As we said, thousands of firms sell and finance their receivables - all you are doing is selling and financing a portion of your future sales - so for many it does make sense.

And by the way, it’s clearly a form of financing that is unsecured, because the collateral is in fact future sales that hopefully will materialize, but might not!

A good rule of thumb we use is that it’s an excellent short and intermediate finance strategy. Over the longer term you should be working on a long term strategy to probably finance your business.
A merchant cash advance business credit card loan is also very easy to achieve. The main focus is your ability to demonstrate your sales revenue via bank or credit card processing statements. Small business owners can expect of course to be a guarantor on this type of unsecured loan financing.
So, that’s the offering. If you are scrambling on a daily basis in a retail or restaurant type business environment speak to a trusted, credible an experienced Canadian business financing advisor about merchant cash flow advance financing.


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/merchant_cash_advance_business_credit_card_loan.html

Canadian Business Loan Financing – Pain or Pleasure ? Mastering Finance Success With Equipment Lease Companies

You've been there before. Does this sound familiar? You need to acquire costly assets for your company and don't want to utilize your cash reserves of business operating credit to acquire asset financing.

Yes of course you could get a traditional term loan via your chartered bank, but if you are a small or medium sized business and unable to access term financing what are your available options? The answer is a business financing lease loan via Canadian equipment lease companies.

Why are some firms successful in both obtaining approval for their leased asset needs, and at the same time seemingly able to get the payments they want to sustain their cash flow and working capital.

Let's examine some key info, strategies, tips, and types of solutions available to Canadian business owners and financial managers.

You will find first of all, and this is a key driver in business financing and equipment leasing... that approval for your transaction is much easier to obtian than other types of asset finance. Most business owners don’t understand the very simple process involved in acquiring asset financing via equipment lease companies in Canada. To prove our point it’s simply a fact that in North America Billions, yes billions of dollars of assets are lease financed.

A typical approval process is simply a standard credit application, appropriate financial disclosure, and a copy of a quote or invoice from your chosen vendor. It's as simple as that. Naturally the larger the transaction size the more info you might have to provide re financial statements, etc.

Many businesses aren’t aware that a huge part of the equipment lease industry in Canada utilizes whats known as an ' app only ' approval process, with you as a business owner providing only a standard application, with most approvals done via automatic scoring, via the lessors ' point system ' criteria around your years in business , payment record to suppliers , etc.

You have truly mastered equipment lease business financing when you fully comprehend the fact that almost any asset, even some intangibles (i.e. software) can be financed. Its
when you make your lease and loan finance decision a part of your overall long term financing strategy that you suddenly realize that every asset that is both costly and depreciates probably makes sense in your overall lease financing strategy .

Successful lease finance lets you keep and grow your cash reserves, allowing you to survive against that constant battle with your competitors. One of the smartest things you can do is to develop relationships with equipment lease companies that will over a long term basis provide you with ongoing lease lines of credit for all your asset needs. The industry itself refers to this strategy as an ' evergreen ' scenario, one in which your firm is constantly refreshing its assets to generate sales and profits.

How many times have you felt that sales and profits are growing, you seem to be winning the competitive battle, but cash flow is a challenge due the to the heavy investment you have in assets such as receivables and inventory . That’s when business financing via a n equipment lease makes your overall success complete, as you retain that much needed operating cash flow for growth and sales, letting lease and loan finance hand the asset acquisition part of your growth plan .

Let's get one thing straight. The reason leasing companies in Canada exist is simply their own mandate to generate lease transactions! Criteria for approval is significantly different than a more traditional banking approach, with heavy emphasis placed on the asset as collateral, as well as its ability to generate profits and sales for your company . Many business owners are surprised to hear that even start ups or very young firms can generate significant lease financing approvals for assets they need to grow the business.

We've focused on issue such as approval, types of assets, and alternatives to traditional financing in looking at your relationship with equipment lease companies. But don’t forget also the other major benefits of this asset acquisition strategy, some of which may be more important than others to your firm. They include tax and balance sheet advantages, improving your ability to manage obsolescence in assets.

We can guarantee you that you'll only master and be successful in lease financing when you understand the make up of the Canadian equipment lease landscape. Knowing who to talk to and whats available will put you significant ahead of the pack. Speak to a trusted, credible and experience Canadian business financing advisor for assistance in dealing with equipment leasing companies to your advantage.



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_companies_business_financing_loan.html

New Ways To Achieve Accounts Receivable And Inventory Financing - The W/C Finance Loan Facility

Successful business owners and financial managers are always looking for a new... no wait, ' better ' way business financing success. No where that is more obvious than in the quest for accounts receivable and inventory financing, the actual monetization, if you will, of your balance sheet current asset accounts.

So we have dubbed the solution as W/C solution if you will . What's W/C - Why working capital of course, and a variety of ' flavours of this type of financing loan facility are available to your company. It's just that they are not well known - Until now!

Is it unique, or novel to be looking for way to raise cash flow and working capital out of your receivable and inventory investments? Absolutely not, its just that its become a lot more difficult in the past several years - and we're talking from the start up right up to major corporations - No one has been exempt from the pain challenge of raising working capital, that works!

So what sort of ' cash flow products ' if you will, are available? Many clients are skeptical that it is difficult, or impossible to generate a stand along inventory finance facility. There is some truth in their belief, in that the collateralization of your inventory is in many cases tied to the overall collateral that your company offers up, usually in the form of a blanket General Security Agreement given to your lender, in some cases Canadian chartered banks.

However the hard reality, even harsher since the 2008-2009 recession, is that inventory financing in Canada has been difficult to achieve.

So let’s cover off your options in this regard, one of them might well be the option you are looking for. At the top of our order is of course straightforward bank financing that is margined against your collateral, typically the A/R and inventory we mentioned. That’s probably optimal, but the requirements that come with that facility are significant, they are good financials, owner guarantees, strong operating performance... well you know the drill.

However, did you know that there are independent finance firms that offer a working capital facility along the same lines as that chartered banking arrangement we mentioned. The most valuable facility is the asset based loan, a financing arrangement that in many ways is similar to a bank deal, but significantly margins your inventory financing needs simply because real value and appraisals are made on your inventory. There are numerous situations where clients have been able to double, and even triple their overall working capital loan facility with this type of transaction.

A number of what we call ' second tier ' firms step in for many small and medium size transactions, for facilities that generally range from 250k - to 3 Million dollars. These facilities are more expensive, but again give you very solid borrowing power.

And back to our main theme, is it possible to achieve a pure inventory and contract financing in Canada. This solution is more expensive, but non bank in nature, and provides a method in which you suppliers are paid directly , with your rights in inventory and contracts being assigned to the lender an independent finance firm, somewhat boutique in nature . You are simply leverage the actual inventory prior to it being sold and generated into a true receivable, which of course itself can then be monetized.

So, whats our take away here? Pretty basic, yet giving you hope. Various forms of direct inventory, non bank financing, and contract and purchase order financing do exist in Canada. They are becoming more mainstream everyday. Intrigued? Got questions? Have a unique situation? Speak to a trusted, credible and experienced Canadian business financing advisor real world solutions to an inventory financing loan facility in Canada.


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/inventory_financing_accounts_receivable_finance.html

Financing A Franchise In Canada ? Here Are Clear Finance Options For Approval From Lenders

Pretty well everyone agrees these days that the franchise option is one of the best ways to purchase and run a business. That's the easy thing we can all agree on... but what about financing a franchise and making sure you have a solid knowledge and assistance around finance options and who the lenders are in the Canadian marketplace.

Don't despair. Let's cover off some key basics, tips, strategies, and solutions around your decision to buy a franchise in Canada and become an entrepreneur in the true sense of the word.

After all the euphoria is over re: having made that decision to purchase a franchise a minor problem usually occurs - the cost, and how to finance that cost ?!

It's safe to say you need to pick an ' affordable ' franchise. That’s not as negative sounding as you think, since a large portion of your franchise cost can be financed depending on which financing option you choose. However, lets be clear, there are only two components to any business purchase, debt (what you borrow) and equity (what you put in).

A good rule of thumb these days is a 30 -40% owner equity contribution. That ratio isn’t one that is cast in stone, but is one that we see works constantly for many of our clients.

Remember also that as large as that financing challenge might be that you actually simply have to show that the funds you borrow can be repaid through your cash flow and profit projection. Actually cash flows pay back lenders, not profits. More about that shortly.

In a franchise purchase there are what we call ' soft costs ' and ‘hard costs’. The soft cost traditionally is things like the franchise fee - usually the largest soft cost on your project. Naturally it makes sense the hard costs are things like equipment, leaseholds, even perhaps real estate in some cases.

Financing soft costs is a challenge for any business in Canada. So typically the franchisee should cover them thru his portion of the equity injection. But what about those leaseholds and equipment?

Here's the great news. Financing a franchise in Canada is mostly done through a unique and specialized government loan program called the BIL / CSBF program, monitored by Industry Canada, and administered by Canadian banks under the auspices and watch of the federal program.

Is the BIL a great program? We let our clients be the ultimate judge, but in our humble opinion it provides, bar none, the best finance options for a huge amount of the Canadian franchise industry. The bottom line on the program? Simple. Great rates, terms and flexible structure, and are you ready, a limited personal guarantee. Even the big boys in business in Canada cannot often escape that one!

When clients ask us for some basic key tips and advice on dealing with a franchise lender, or even isolating who these lenders are we always revert back to BOY SCOUT MOTTO 101 - BE PREPARED! Being prepared is simple, but requires a razor sharp focus on having a crisp business plan in place, some financial projections that guess what, make sense! It should be a document that covers your experience, highlights your purchase, and most importantly, shows how you will succeed financially - i.e. pay back the lenders based on the financing options you have chosen. Simple as that.

Are the BIL finance options the only method to finance a franchise? Definitely not, there are some independent finance options out there, and in many cases we supplement the overall financing plan with equipment loans and working capital financing, which also has to be addressed early on in your planning.

If you are committed to purchasing a franchise you need clear guidance and assistance on financing a franchise successfully. You don’t get a lot of chances to do things right in the world of finance, borrowing, etc. Speak to a trusted, credible and experienced Canadian business financing advisor to ensure you maximize those finance options to your benefit.

P.S. Good luck in your new role as a Canadian entrepreneur.






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/financing_a_franchise_finance_options_lenders.html

Financing A Franchise In Canada ? Here Are Clear Finance Options For Approval From Lenders

Pretty well everyone agrees these days that the franchise option is one of the best ways to purchase and run a business. That's the easy thing we can all agree on... but what about financing a franchise and making sure you have a solid knowledge and assistance around finance options and who the lenders are in the Canadian marketplace.

Don't despair. Let's cover off some key basics, tips, strategies, and solutions around your decision to buy a franchise in Canada and become an entrepreneur in the true sense of the word.

After all the euphoria is over re: having made that decision to purchase a franchise a minor problem usually occurs - the cost, and how to finance that cost ?!

It's safe to say you need to pick an ' affordable ' franchise. That’s not as negative sounding as you think, since a large portion of your franchise cost can be financed depending on which financing option you choose. However, lets be clear, there are only two components to any business purchase, debt (what you borrow) and equity (what you put in).

A good rule of thumb these days is a 30 -40% owner equity contribution. That ratio isn’t one that is cast in stone, but is one that we see works constantly for many of our clients.

Remember also that as large as that financing challenge might be that you actually simply have to show that the funds you borrow can be repaid through your cash flow and profit projection. Actually cash flows pay back lenders, not profits. More about that shortly.

In a franchise purchase there are what we call ' soft costs ' and ‘hard costs’. The soft cost traditionally is things like the franchise fee - usually the largest soft cost on your project. Naturally it makes sense the hard costs are things like equipment, leaseholds, even perhaps real estate in some cases.

Financing soft costs is a challenge for any business in Canada. So typically the franchisee should cover them thru his portion of the equity injection. But what about those leaseholds and equipment?

Here's the great news. Financing a franchise in Canada is mostly done through a unique and specialized government loan program called the BIL / CSBF program, monitored by Industry Canada, and administered by Canadian banks under the auspices and watch of the federal program.

Is the BIL a great program? We let our clients be the ultimate judge, but in our humble opinion it provides, bar none, the best finance options for a huge amount of the Canadian franchise industry. The bottom line on the program? Simple. Great rates, terms and flexible structure, and are you ready, a limited personal guarantee. Even the big boys in business in Canada cannot often escape that one!

When clients ask us for some basic key tips and advice on dealing with a franchise lender, or even isolating who these lenders are we always revert back to BOY SCOUT MOTTO 101 - BE PREPARED! Being prepared is simple, but requires a razor sharp focus on having a crisp business plan in place, some financial projections that guess what, make sense! It should be a document that covers your experience, highlights your purchase, and most importantly, shows how you will succeed financially - i.e. pay back the lenders based on the financing options you have chosen. Simple as that.

Are the BIL finance options the only method to finance a franchise? Definitely not, there are some independent finance options out there, and in many cases we supplement the overall financing plan with equipment loans and working capital financing, which also has to be addressed early on in your planning.

If you are committed to purchasing a franchise you need clear guidance and assistance on financing a franchise successfully. You don’t get a lot of chances to do things right in the world of finance, borrowing, etc. Speak to a trusted, credible and experienced Canadian business financing advisor to ensure you maximize those finance options to your benefit.

P.S. Good luck in your new role as a Canadian entrepreneur.

Without an ABL Lending And Loan Facility Financing Where Will You Be Tomorrow ? A Canadian Non - Bank Alternative !

Concerned about your ability to achieve business operating financing over the long term - if that’s the case an ABL lending solution might be the alternative to a traditional bank financing facility.

We think the whole issue revolves around the term alternative - and we mean that in two ways. First of all from a pure technical reason ABL ( Asset Based Lending ) is in fact ' alternative financing ' , a term that has become very much in vogue since 2008 -2009 when the Canadian business financing landscape changed dramatically due to the global financial recession.
And secondly, it’s just basically another word for choice and we guarantee you that you need choices in your business financing decisions.
So, can you ignore asset financing and let other firms, including your competitors use ABL as their new choice of operating financing? Of course you can, but if this type of loan or facility (it’s not a loan per se) has the ability to virtually guarantee you access to financing for all future growth we think it’s remiss of you not to consider it. That’s just our humble opinion.

The bottom line is that this type of asset based line of credit financing facility is almost always tailored to your specific needs. It provides you with the flexibility to have a customized arrangement around the borrowing power you can generate via... guess what, Assets!

And what are those assets? Commonly they are receivables, inventories, and in some cases as an add on, fixed assets or real estate. It’s simply the monetization of those assets based on realistic values (often achieved by an appraisal)that gives you al alternative , and by the way, almost always larger ! operating facility .

If as a Canadian business owner or financial manager you're concerned about the future of financing for your firm and you have special needs or situations then ABL is probably the answer to your alternative, which is losing out on growth opportunities or having to look elsewhere for debt or outside equity.

We mention debt because you do have alternatives to ABL lending such as cash flow term loans, sub debt, etc but surely the ability to monetize assets to the maximum and not borrow relative to the balance sheet is appealing?

We've referenced the ability of your firm to secure the future of your financing and growth via an ABL lending and financing facility. Clients who want to make this drastic change to non bank financing always ask a question that could generally be summarized as ' whats in it for us '. The answer is pretty simple, increase cash flow for firms that have assets, both current and fixed, that aren’t being monetized now. Although you might end up reporting more on the monthly values of those assets most clients are happy to know that these reports are no longer tied to covenants and ratios, etc as required by traditional Canadian chartered bank financing. Issues of seasonality in your working capital, or being flexible to take advantage of new opportunities (including acquisitions by the way) make ABL lending a solid ' loan ' financing facility alternative choice.

So whats the bottom line in the future of your operating financing? And where will you be tomorrow in your business financing ? Its simply that you should investigate asset based lending facilities, non bank in nature, as a method of creating long term access to working capital and growth ability . Speak to a trusted, credible, and experienced Canadian business financing advisor for the lowdown on ABL financing.






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_loan_facility_financing_bank.html