What’s Your ABL Finance IQ? Info On Canadian Financing By Asset Backed Lenders !

We're pretty sure that most Canadian business owners consider themselves knowledgeable about their business and options they have in both operations and financing. But seriously, how much do you really know about ABL finance - were you aware that assed based lines of credit is the ' new financing ' paradigm shift in Canada .

So who exactly are these assets backed lenders and why can they take your firm to new heights in growth? There isn’t a day when we don’t read of many ABL (asset based lending) transactions happening here in the U.S. - for tens of millions of dollars.

Is that happening in Canada but we just didn’t know it? Well yes and know, in case you haven’t heard we've got a smaller economy, but we can assure readers that ABL Financing is becoming a mainstream solution to Canadian working capital and cash flow needs .

Did you know that in the last decade over 10 Billion dollars of ABL financing was taking place in Canada on an annual basis? Right under your eyes!

But we're realists and we fully realize that many Canadian firms aren’t aware that asset backed lenders exist, let alone are using them. Ours therefore is to inform!!

We do forgive some quasi well informed clients that have a perception that ABL finance was a financing of last resort so to speak. The reality is that ABL does in fact finance many firms that are challenged and can’t obtain traditional bank financing.

But, and its a big but, thousands of firms in Canada utilize asset backed lenders for their operating lines of credit to facilitate growing their companies, expanding into new lines or geographies, acquiring competitor, or simply re financing their company in a manner that works better!

So why is Canadian business migrating to this new form of business financing? Simply because it’s more creative and flexible than the more formulaic approach that our great friends at Canadian chartered banks take.

And what is the cost of this type of financing. More often than not that’s questions number one when we sit down with clients. We'll put on our lawyer hat and say ' it depends ' which isn’t quite the answer we think you were looking for..!

The reality is that ABL financing is based on size of facility, who you are dealing with, your overall asset quality (abl finances receivables, inventory and equipment and real estate) as well as your firms overall credit situation - i.e. good / bad/ugly. (Yes ABL finances ugly.

One or two more things to know to fill up and increase your intelligence quotient (IQ!) on lenders that offer this financing . Simply that many are non bank independent finance companies , some are U.S. based but doing great jobs here, and some are Canadian but smaller in size - but still able to satisfy the majority of Canadian firms .

Well that’s it... Oh! Did we forget something? Oh yes. What is ABL by the way!! Simply a revolving line of credit that lenders against the value of your current and fixed assets on a daily revolving basis. It's a business line of credit!

Looking to fill up more on your ABL IQ? Speak to a trusted, credible and experienced Canadian business financing advisor who will help you determine if this facility is the best thing that ever happened to your business financing needs.




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 80 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

5 Revolutionary Breakthroughs In Working Capital Business Loans & Cash Flow Canada !

Mission impossible? We're going to try and re program your business brain around some innovative ways to look at working capital and cash flow solutions for Canadian business - and it might be a loan scenario... and then again it might not?

And about that word ' revolutionary ‘... we’ll leave that up to you to decide. However, we're quite sure we've got some working capital and cash flow innovation coming your way.

A popular term these days is ' the liquidity gap ' - it is simply the challenge that small and medium sized businesses tend to face in Canadian business financing. When you really think about your balance sheet that liquidity gap more often than not tends to focus on the investment you carry in receivables and inventory.

Also, financing options utilized in the past - we tend to call them ' traditional financing ‘, don't seem to be available, and when they are they don’t suit your needs re size, type of facility, and external collateral and guarantees that might be required.

No one is more a fan of Canadian banks than us. We love them. Canadian business owners and financial managers seem to struggle with why they can’t get financing for the bank. We heard a great explanation of that recently.

So, have we got a great story for you? As Canadians we put our funds into a bank, we also seem to have this feeling that we should be able to get it out anytime we want it. That's the story! Because in a simplistic way the banks can't really over lend to small and medium businesses because that is not the deal it made with me as a depositor. So I apologize for that! I made a deposit; I didn't contribute to a start up hedge fund!

Anyway... working capital and cash flow solutions are clearly available from Canadian chartered banks - but repayment from you must be certain- so have those good balance sheets and additional collateral and guarantees ready.

Back to those ' revolutionary' working capital solutions we have talked about. And as we said, they might not be a pure ' loan ‘.

From our point of view some of the most innovative ways to achieve 'cash flow nirvana ' might be facilities you have never heard of. What are they?

5 of the best solutions you should consider are as follows - purchase order financing, asset based lines of credit, merchant advance loans, C I D receivable financing, and tax credit monetization.


A short recap of those? Purchase order financing allows your supplier to be paid directly by the financier. Asset based lines of credit are facilities based on current and ongoing values of your total inventory and receivables. Are you a smaller or retail oriented business? Merchant advance financing provides cash flow today for sales you make tomorrow.

Everyone has heard of factoring. But C I D receivable financing provides you with the same benefits, i.e. same day cash flow on sales, but you bill and collect your own receivables without notification to clients, suppliers, etc. And finally, got a SRED claim to be filed? Monetize it today with a SR &ED bridge loan.

Want more info? Seeing the potential benefits already? Speak to a trusted, credible and experienced Canadian business financing advisor for a working capital business loans and solutions that maximize your cash flow requirements. It's as simple as 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 80 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Guess What Canadian Business Financing Equipment Company Has The Best Finance Lease For You ?

Think about it... Should you really have to be ' 'guessing ‘which business financing equipment company has the right finance lease for you? We don't think so, that’s for sure, so let's give you solid info on how to select and work with a great financing partner.

Many business owners and financial managers in Canada simply don't realize there are well over a 100, if not more finance lease firms in Canada. If you have all the time in world (you don't - we're sure of that) you could start at 'A' in the yellow pages. Want a better way? First determine why you lease equipment.

Why you lease equpment invariably revolves around the asset type that your firm finances. The equipment finance company you work with, more often than not, specializes in certain asset categories. Also, Canadian business often does not realize that the size of a transaction determines who you work with - simply because your new business financing partner also has its own restrictions on how much it can lease, and to whom.

‘Size counts ‘... or ' Size doesn't count ‘are expressions we hear a lot these days. In Canadian equpment financing when it comes to a finance lease size does count. But it's not your problem; it’s your equipment company that has that challenge. In Canada the entire leasing industry is broken down into 3 tiers. Those three tiers are small ticket, mid ticket, and... you guessed it ' large ticket '.

So a bottom line great piece of advice we can give you is simply to ensure that whether you are financing a 2,000$ photocopier or a 20 Million dollar corporate jet you need to focus in on selecting the equipment finance company that specializes in your asset and size category . Right away we've saved you tons of time, right?

Do you change your key suppliers every time you purchase something for your business? We certainly don't think you do that, so surely you can see the benefits of working with a lessor on a long term relationship basis. But getting back to our time management issue how does one do that?

You need to focus in on a partner firm that specializes in the asset sizes and asset types of equipment that you finance. Don't have time to do this? Your decision just got a lot easier - simply seek out the service of a trusted Canadian business financing advisor who specializes and has experience in equipment company finance lease transactions. That resource can save you time, and even money, as many small nuances in lessor pricing strategies can cost you thousands of dollars if you don’t have the right advice behind you ,

Key attributes of a long term business financing partner are of course listening to you needs, and flexibility in structuring transactions that make sense for you firm. You also have to be flexible of course, as a key part of the lease finance decision revolves around your firm’s credit quality - which determines the pricing and structure of all your equipment financing needs.

In summary, simply focusing on working with an expert in lease finance can save you time and dollars in a large manner - and as we have shown, taking the time to understand how the market is segmented in Canada will also benefit your long term finance strategy when it comes to leasing.
And help is on the way by simply called a trusted, credible and experienced Canadian business financing advisor with a background in what you need to accomplish. That removes your guesswork, don't you think?


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/business_financing_equipment_company_finance_lease.html

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