Canadian Business Factoring And Accounts Receivable Discounting – You win !

We had an argument last week... maybe it was more of an ' intense discussion ‘... with one of our associates. That doesn’t happen always... of course we're human, aren't we.

What was the argument about? Our friend maintained the cost and value of business factoring and accounts receivable discounting was not as great as we maintained it was.

We're strong supporters of A/R factoring, but always? No, only when it makes sense and you know what you are doing and how to extract the best value while at the same time minimizing the cost of Canada's newest for of alternative financing for small and medium sized businesses. And by the way, the big boys use it too, you just don’t know it.

When you consider this type of financing, your firm in effect becomes a cash flow machine, because as you generate sales you can immediately, and we're talking same day of course, turn those sales into cash.

But here's where the argument came in with our associate. Is it actually possible to control the costs of business factoring and accounts receivable discounting financing? We maintain it is, if you know what the key elements are of this type of Canadian business finance.

Let's break down the components of your total cost for this type of cash flow and working capital strategy. The three comments are the time it takes you to collect your receivables, the total amount that you finance on an ongoing basis, and finally the overall pricing and type of facility that you enter into. And boy do we meet clients that enter into the wrong type of facility.

So all of the above factors are critical to making A/R factoring work for your firm. Let's explore them a bit deeper. Collection turnover. It sounds mundane, doesn’t it? But wow is it important. You may never have walked into the head office of a large corporation, we have! Those types of firms have entire huge departments focused solely on collecting their receivables. Why, simply because cash flow is king and in a large amount of firms, probably yours also by the way, asset categories such as a/r and inventory are the largest investments you have in your company on an ongoing basis .

So focusing on your collections reduces the amount you have to borrow, and when you do borrow using business factoring and receivable discounting you are borrowing only what you need to. By the way, rates for this type of financing in Canada are between 1-3 % a month,

Larger facilities obtain better factoring prices - that type of statement is true in any type of business decision... ie if you buy more you get a better price. So in Canada if your facilities are over 250k on an ongoing basis your pricing often becomes a bit better.

Our argument with our associate got even hotter when they maintained that traditional factoring, often called ' full notification 'was the only way to go. Wow, don’t get us started, but we couldn’t disagree more. Our recommended type of receivable financing is called confidential invoice discounting. In that type of facility you bill and collect your own receivables, controlling the collection period, and thereby reducing your costs.

Well, as we said, we hate to argue, but we strongly feel we made our point with our associated. And what does business factoring mean to your firm then? Simply speaking... money today, instead of customer promises tomorrow. Its not additional debt and it works, if, and it’s a big if, you enter into the right type of facility.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you to get the facility you need at a cost that makes sense. Next steps then become sales growth and profits!




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_factoring_and_accounts_receivable.html

Why Is The Canada Government SBL Loan For Small Business A Canadian Success Story

Wow! A ' favorable termination of attempts ‘. Could there be a more perfect dictionary definition of the government of Canada SBL loan for small business. We don't think so. Why?

First of all we meet clients all day every day that aren’t even aware of one of the most powerful programs in Canadian business financing in Canada. And in a time when programs of all types are under attack... guess what, this program got even better. Can you believe it? We couldn’t.

We're talking about BIL /CSBF. What the heck is that??? .. we can already hear you saying . It seems like government and business always have acronyms that confuse the little guy. The BIL/ CSBF program is simply the government small business financing program sponsored by Industry Canada.

Again, we’re astounded by the fact that thousands of small, and new (yes even start ups, franchises, etc) are eligible for the program and not even taking advantage of it.

So let’s get you up to speed. Quickly. The Canada Small business financing program , also called by us ordinary guys ' the SBL ' (small business loan) is simply the official government program to encourage financing of small and medium sized businesses in the Canadian business financing arena.

Who is eligible? It’s pretty simple. Any business with either real revenues, or sales, or forecasted sales less than 5 Million dollars. When you're starting out we can assure you it will take a little while to get to 5M in revenue, so that’s why again we're amazed at who doesn’t take advantage of the program .

Ok, we're interested, we can hear you say. Whats the bare bones explanation of the program. Ready - here it goes. It's a loan for a maximum of 350,000.00 for the purchase of equpment, leasehold improvements, software, or real estate. Is it just us, but doesn’t things like equipment and improvements to your business cover a lot of your financing needs? When the loan is for real estate only, guess what... you can borrow up to $ 500,000.

Qualifications? You want to know them, we've got them. To qualify you need to have a business plan, demonstrate the need for financing via a quote of vendor invoice, and you must have a 10% investment into the amount of financing you need. For example, you want to buy a franchise business in the Canadian business marketplace. The franchise costs 350,000.00$. You put in 10%, and our SBL loan program covers the balance.

Do you have to drive to Ottawa to get the loan? We're kidding of course - the good news is that the government of Canada sponsors the loan and assumes the majority of ' risk ' but the actual government of Canada small business loan program is administered by your bank.

We don’t want to get too personal here, because we love our Canadian banks, but it's sometimes a challenge finding everyone who knows about this program and can get you funded quickly. But guess what? Last year 7,441 of your competitors and business friends took advantage of the program, for a total of 957 Million dollars! And you hadn't even heard of the program?!

Want to know more ?Business financing success is all about experience, trust and credibility, seek out a Canadian business financing advisor who can fast track you to business financing success using this great Canadian financing tool to grow or start your business .

P.S. And you wont believe the great rates, terms and structures of the SBL loan also! Trust us on that.



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/sbl_loan_government_for_business_canada_canadian.html

Secrets of Dealing With Equipment Leasing Financing Companies : Tips on Successful lease finance sourcing and negotiations

What's my rate? Are we approved? What are my rights and obligations under this transaction? What's the capital of North Dakota... oh sorry, forget that last one..!

And on it goes... these are just some of the many questions that clients ask us when they are looking for assistance in sourcing and negotiating equipment leasing and working with financing companies in that regard . We do acknowledge it’s a big challenge sometimes - the Canadian marketplace is a bit different than its counterpart in the U.S. The finance industry is fragmented, and business owners and financial mangers absolutely could not be expected to know the credit appetite, the asset appetite, and the structuring options available from literally hundreds of firms offering lease financing.

Let's share some ' secrets' and tips around ensuring you can be successful in your equipment financing strategy. First of all, different strokes for different folks - what do we mean by that? Simply there are number of very well published ' equipment leasing benefits ' offered by finance firms. Do they all apply to your firm? Probably note, so focus in on understanding which benefits of lease financing work for you, and then... maximize them! Through effective negotiations.

For the record those benefits usually include payment structuring to your cash flow, tax advantages, upgrade and return options, and simply being an alternative to traditional debt and loan negotiation. Oh and we forgot one other key benefit, its generally recognized that lease financing credit approval is significantly easier to obtain than bank term debt or other loan mechanisms of a more traditional nature .

Psst... Want to know another secret. Here's a good one, that almost no transaction is too large or too small for the Canadian equipment financing market. So, if it makes sense to lease a 2000.00 photocopier consider it, and if you're buying a corporate jet for 3 Million dollars, there is a lease approval for that asset also.

If there is on obvious secret or tip that most owners miss it’s simply that when it comes to any type of ' technology ' you should consider equipment leasing with financing companies that are knowledgeable about the asset. We are mostly talking about computers, but the tech universe today covers telecom, and many other types of assets. Technology changes, tech assets depreciates very quickly, and the best kept secret in town is often a technology operating lease , allowing you full use, but not ownership, of the asset .

Many clients seem confused by the ' lingo' used by financing companies. You can be forgiven for not knowing ' off balance sheet leasing, residuals, fmv, all in rate, amort, ' etc, etc etc. So the best and final secret we can probably provide for you is simply to search out a trusted, credible, and experienced Canadian business financing advisor who will help you identify priorities and finalize equipment leasing success for your asset acquisitions.

Oh and by the way. Bismarck. That’s the capital of North Dakota.




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 .

We finance the little guy .

P.S. We finance the big guys too!

Why Your Competition Is Stampeding To Business Equipment Leasing Financing – Canadian Commercial Finance Advice

Be honest . Whether you admit it more often than not we're looking over our shoulder at the competition and what they are doing. Why not instead lead the stampede towards successful business equipment leasing and financing for the commercial finance needs you have in business equipment acquisition?

Well known business author Steven Covey ( The 7 Habits ...”) had a great line: ' Diagnose before you prescribe ‘. I guess we're breaking his rule a teeny bit because we do strongly feel that business leasing and equipment financing should be in your toolkit already as a Canadian business owner or financial manager. And we don't even know what your financial challenges or problems are... so that’s somewhat presumptuous of us... wouldn't you say?

Over 80% of Canadian businesses lease assets - your competition is doing it today. Why are they stampeding toward this type of financing solution - simply because they are choosing not to purchase outright and tie up huge amounts of cash (relatively speaking) and use up that much required working capital that’s needed for daily operations.

Your competitors are focused on two things - selling more, and making a buck!

Bank term loans often require additional collateral and other covenants to make a financing transaction happen - Business equipment leasing financing doesn’t not do that, it’s a commercial finance alternative that makes sense.

Getting approved is always half the battle when we talk to clients about their finance challenges. If you have a solid financial history, good business credit, and all those financial ratios that a lender looks at you can achieve extremely low lease financing rates in the Canadian marketplace.

But, look at some of your competition - as a savvy business owner you probably know your market and competition, and they might not be doing as well as others out there might think. So how are they obtaining commercial finance leases that allow them to continue to move their companies forward?

The answer in one word - 'structuring ‘. What's that you say? It’s the term that the lease finance industry uses in Canada to make things happen - for you.

In simple terms it might mean that you might not be able to take advantage of all of the great advantages of equipment finance - things such as 100% financing, the financing of your taxes related to the asset, tailored payments, potential off balance sheet financing .. And on it goes. The benefits are endless.

But guess what, as we said, if your firm does have financial challenges there is still a lease finance transaction out there for you. Working with your best lessor choice will allow things such as a potential down payment, a shorter term to the transaction, etc to make your transaction happen - which is what it’s all about.

Your competitors are stampeding to their business asset financing of choice because they recognized the benefits, whether they are financing computers, software, plant assets, heavy machinery, you name it. Speak to a trusted, credible and experienced Canadian business financing advisor. It's now your turn to lead the charge to successful business finance 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/business_equipment_leasing_financing_commercial.html

A Shortcut To Leasing Equipment And Business Finance Lease Solutions & Services In Canada

Isn't any shortcut in business better? As shortcut is of course a ‘method or procedure that reduces time or energy and still accomplishes something ‘. Is it just us but isn't any Canadian business financing shortcut absolute good thing, as well as an advantage over your competition?

We're going to cover off some great shortcuts for leasing equipment in Canada, and how the ability to get a business finance lease with the best rates, terms and structures becomes a financing services victory for your company.

Also, when you can add a host of other programs services and structuring that are uniquely suited to your business... well... clearly that’s a win.

Doesn't it make sense to know what you are looking for prior to going out to get it - that's our first shortcut tip - determine whether you need an off the shelf lease financing services solution, or whether a customized business leasing equpment solution is required . A simple way to achieve this shortcut is to focus on the 5 elements of a lease, and which ones need special attention for a finance lease based on your company circumstances.

What are those key elements - simply the term of the lease, the interest rate associated with your credit quality, the size of your transaction, the monthly payment your cash flow budget can afford, and finally the end of term option that again, best suits your firms needs.

That's a mouthful, but most Canadian business owners and financial managers don't realize they have the ability to influence, and in some cases negotiate some of the key five elements - thereby creating your shortcut to leasing equipment finance success.

Let's delve into that further. Let's assume you know the asset or equpment that you want - you've evaluated your requirements and want a financing services program that best suits your company.

Now its time to take work on getting the flexibility you need to maximize those financial advantages. They include of course full financing of your asset with minimal or no down payment, flexible monthly payments geared to your cash flow and working capital concerns, the ability to use off balance sheet financing if you need it , or even in many cases generate a positive cash flow by leasing back equipment you own already .

In many cases you can achieve a quick shortcut to lease financing approval by working with your lessor on a term that works for both of you - it has to be a win win situation. On your side you want to match payments to economic benefits of the asset you are financing... the lessor is more concerned with asset value deterioration and your overall all credit worthiness.

If you are generally familiar with the finance lease business and leasing equipment industry in Canada you know it consists of a multitude of players , they all have different ownership , some foreign, they have different asset needs, and their pricing they provide you with is based on , guess what, their own borrowing practices !

The shortcut to best pricing and best structure is therefore knowing what leasing finance firm has the best appetite and expertise to provide you with a business finance approval that works .

In summary, if you want to achieve shortcuts in business financing services related to leasing equipment you would do well to speak to a trusted, credible and experienced Canadian business financing advisor who knows the business and will accelerate the shortcut to best asset financing you can hope to achieve .



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/leasing_equipment_finance_lease_business_financing.html

Canadian Franchisee Loans & Business Funding – 4 Secrets To Financing A Franchise

The inside edge. You want it, we have it! Have we got some tips and secrets to share for you.

We're talking about financing your franchise - the successful completion of your entrepreneurial dream in Canada. As a franchisee you want to be aware of your options in loans and funding programs that are geared specifically to financing a start up business in the booming franchise industry.

We're going to discuss 4 key elements of a proven formula for franchise success. What are they? Simply speaking its ensuring you have a business plan that accurately resembles the financial aspects of your business. Number two is the types of emphasis that is put on your own personal background and credit history. Number 3 is the knowledge of franchise financing options in Canada , and number 4, ( often # 1 in your mind probably .) the amount of personal funds you have to commit or invest to get your business going and your franchisee funding approved .

Let's dig in! OPM. What is it? It's stands for other peoples money and its critical you understand that a franchise is composed of two elements with respect to your financing plan - debt ( what your borrow ) and equity ( what you put in ). Our key point here is simply that while there is no proper mix of what works for the combination of those two elements. No franchise is financed with 100% borrowed funds - conversely you don’t want to ' pay cash ' for your business and risk all, or a lot of everything you own (house, savings, etc) for a start up business such as a franchise.

We will also share with you that some of the very specialized franchisee loan program in Canada typically require a 30 - 40% owner equity, or down payment. That can be achieved in several different ways.

Should you tap into your retirement plans to fund your franchise? That’s not our call, but if you have capital outside your savings we would not recommend collapsing RRSP’s, or taking out home mortgages, etc for the purpose of financing and funding your franchise.

Clients often ask how their personal credit history affects their ability to get franchise financing. In general we can say it’s a key point in the whole approval process. Many Canadians aren’t aware that the entire credit history system in Canada is based on a simple score. You should have a score of at least 650 to be successful in traditional franchise finance. So check your score in advance. And by the way, higher is better!

The business plan is a key element of your whole package. Many clients don’t have experience or financial acumen to prepare a proper plan. Not a problem as you can seek a Canadian business financing advisor, or accountant, etc to prepare your plan. A good basic plan comes at a very reasonable cost.

The business plan is your ' total picture ‘of your franchise. Basic elements are yourself, your background and business or industry experience, info on your franchise, and some basic financial projections. Naturally the better recognized and successful your brand the more attractive your perceived chances of success are.

As a franchisee what loans and funding is available in Canada. As unbelievable as it may seem the government of Canada, via Industry Canada, is one of the largest players in your franchise success. A program called the BIL / CSBF program is hugely popular and finances mot franchises fewer than 350k in Canada. We strongly recommend you seek out and investigate this program, it’s probably the key to 95% our client’s success in financing a franchise with funding that comes with great rates, terms and structures and limited guarantees. Bottom line, check it out!

So there you have it, 4 key elements, and secrets if you will, to franchisee financing success. Summarized... a solid business plan, some good business or industry experience coupled with a reasonable personal credit history, a down payment that is aligned to your overall financing needs and personal situation, and , last but not least, knowledge of programs such as the BIL which are geared toward franchise finance success .

So now you know!

P.S. Good luck in your entrepreneurial dream, and going it alone is never good, so seek the services of a experienced , credible and trusted Canadian business financing advisor .



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_franchise_franchisee_loans_funding.html

Canadian Business Line Of Credit News - Must Know Info on Non - Bank ABL Financing and A Credit Revolver Loan

Are you totally on top of the newest trend in Canadian business financing these days? Then of course you're fully aware are knowledgeable on ABL Financing for a business credit revolver loan versus the alternative... a bank line of operating credit.

What's that ? You're not? No problem... read on!

No Canadian business owner or financial manager these days disputes with us the challenges of obtaining what everyone seems to call ' traditional bank financing. For all the right reasons (probably ... hopefully?!) Canadian banks hunkered down and tightened the lending strings a bit after the 2008-2009 financial debacle.

Therefore it’s not hard to determine how various specialized funds and independent finance firms came to a high level of prominence by offering ABL financing. A = Asset B= Based L = Loan .. It’s as simple as that.

Do you recognize any parts of the following story ... we think you will. You feel as if you had hit an impasse in expanding your firm. Personal funds have been depleted and your efforts to find that elusive ' traditional ' financing have failed. Additionally your firm might have some real challenges in perhaps returning to profit after you industry has been out of favor with those people in the glass towers that seem to know everything...

Is there really a viable solution to that business financing challenge, i.e. a real world alternative to a bank line and credit revolver loan? Enter asset based financing and asset based lines of credit!

Depending on the size of your facility and the overall financial condition of your firm the cost of ABL financing will either be lower, competitive, or higher than your current finance arrangements. ‘Thanks a lot ' we can hear you say, as that sure wasn’t very informing in nature! But we stand by that comment because of the complexity involved in assessing the size of your financing requirements, the overall credit worthiness of your company, and the mix of financing you need when it comes to ABL financing . The bottom line is simply that every situation is unique and needs to be addressed in that manner.

The essence of our message is hopefully clear - you do have a Canadian business financing alternative, and its a non bank revolving credit revolver , via an independent firm that provides you with very high liquidity rations on key assets such as receivables, inventory, and in many cases fixed assets and a/r.

Do we qualify? is question number 1 or 2 more often and not from clients . The answer in the ABL financing world is that everyone qualifies with only one criteria being required - you have business assets! because that’s what an ABL financing credit revolver is all about . And , as we said, it might be more expensive, and due diligence on your operations and assets might be a bit more rigorous ( in fact it will be for sure - ABL lending focuses on assets , not ratios !).

Whats happening in the Canadian ABL loan marketplace. Lots. Billions of dollars of financing is being accessed everyday by your competitors who are knowledgeable abut this new type of Canadian business financing. And it’s sure cheaper than bringing in additional equity, if in fact that could be arranged.

Interested? Intrigued? Want to know more? Speak to an experienced, trusted, and credible Canadian business financing advisor for the scoop on an ABL loan versus bank line. We guarantee you will be glad you did.





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_financing_loan_credit_revolver_bank_line.html