Canadian 21st Century Financing – Utilizing Government Small Business Loans - Why an SBL Loan Is Right For You

Let's quiz you first. Answer yes or no to the following question. Do you believe you can get a 350,000.00$ business loan in Canada with a 10% down payment... 7 year terms...oh and how's this for size .. only a 25% personal guarantee . Oh and one more thing, at a rate just a few points over prime. Even if you are a start up or a relatively new or smaller firm?
So, yes or no. Then Read on!

Is your company a ' start up ‘? Or, are you a small to medium sized Canadian business looking for financing choices?


Have we got a deal for you! Well at the risk of sounding like a hack used car salesperson we are actually genuinely excited about some Canadian business financing that a lot of biz folks seem to be overlooking these days. And wait until you hear why.
And the reasons why. Simply that the answer is ' YES ' to our first question. Those are the key elements of Canadian government small business loans. And with all due respect to our friends in government, you don't even deal with them on the loan.

We're talking today about what many folks call the Canada SBL loan. It seems to be one of the better guarded secrets in Canada - even though 7,441 of your peers and competitors in small business used it in Canada last year. Oh, and by the way, they got a total of 957 Million dollars in financing at those great rates, terms, and structures that we mentioned in our opening question to you.

Let's dig in then, and get you very quickly up to speed on the program. You'll be surprised at how clear (hopefully!?) our info is on getting you what you want to know about your participation in the program.

Here we go... strap youself in. The program is administered by the good folks at Industry Canada, but on a day to day basis the loans under this special program are administered by your local banking institution. The program maxes out at 350,000.00$ ... which from our perspective is quite generous, don’t you think. And here’s a special kicker - if you just want to use the program for real estate you can actually borrow up to $ 500,000.
Financings can be used for equipment, leasehold improvements

Qualifications, simply your 10% equity contribution against the asset you are financing, and a reasonable personal credit history. In Canada those folks with Credit Bureau Scores of 650 are deemed ‘good ' from a credit perspective.

Want some winning suggestions on getting government small business loans approved quickly, efficiently, and for the amount you need? Your best bet might not be to go it alone. Seek a credible, experienced and trusted Canadian business financing advisor who will help you draft a proposal, present it for you and with you, and help you ensure 100% financing success for your Canadian SBL loan . Welcome to the 21 st Century! ... Finally .. great financing when you need it, at rates, terms and structures that work!






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/government_small_business_loans_sbl_loan.html

How To Qualify For Franchise Financing In Canada – A Franchising Finance Business Loan That Makes Sense!

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Buying A Franchise?

What do I need to do to get to the goal line? That's a favourite client question when it comes to franchise financing in Canada. We're talking about a franchising business loan to finance your new business (or one that exists already which you're buying).

Franchise Finance

Information. Solid info that you want on the qualifications and process involved in getting approved for your franchise investment. Let's dig in.

Franchise Loans Canada

To say that franchise finance is a ' specialty' area of Canadian business financing is an understatement. There is a fundamental misunderstanding of how this type of finance works, the processes around it, and the risks that you can avoid by doing things properly... with some expert advice along the way.

Franchising In Canada

Is there a systematic way, or method that Canadian franchisees can use to get the financing they need? We think there is. Essentially it is really two very simple concepts, planning, and knowing the process. Simple as that.

Many new Canadian franchisee ' wannabees' view financing as an obstacle. We can forgive those clients sometimes because in the last few years any type of business financing has been a challenge, whether you're General Motors or purchasing a new franchise in the restaurant industry!

Many franchisees (mistakenly so) think the franchisor you are working with is either going to provide you with the financing you need or in some cases at least steer you in the right direction. They might do a bit of the latter, but let's be honest here; the franchisor's job is selling franchises, not financing them.

 Even various banks and other franchise lenders probably would like to see franchisors being more involved in the franchising finance business, but we simply don’t think that is going to happen.
Education. And guess what, we are not talking about educating you, we're talking on your need to be able to educate your franchise lender about why you are the perfect franchise financing in Canada candidate.

Financing A Franchise In Canada

And who are the franchise lenders in Canada? That's probably the main thing you wanted to know, isn’t it? There are 4 key franchise lenders in Canada. They are the Canadian chartered banks under a special program called the BIL/CSBF program, one or two very specialized franchise finance lenders ( they only do very large transactions ) , and thirdly some independent finance firms that offer equipment financing tailored specifically for the franchise industry.

But didn’t we say there were 4 lenders? We did. And we're pretty sure you know that 4th lender already. It’s yourself because your own equity portion or down payment into your business is viewed of course as a debt or a loan.

So what's the clear process in qualifying for franchise financing in Canada. Is there a clear road map you can follow? We categorically think there is. And here it is.

Identify the total franchise funding you need. Determine what amount of owner equity you are prepared to put into the transaction. Anywhere from 10 - 40% is typically required. Determine which of the 3 other methods of financing will allow you to cobble together a total solution to finance your new business.

Next step - prepare a package that includes a business plan, cash flow, info on yourself and the franchisor, with a focus on success and repayment of your debt. Along the way don't forget that you need reasonable personal credit history, and boy does some specific industry experience or general business knowledge help in confirming your future ability to be successful for a franchise finance business loan.

Focus on the best financing that matches your needs; we strongly recommend the BIL program which has great rates, terms, structures, and limited personal guarantees.

Going it alone. It’s possible. A better idea? Speak to a trusted, credible and experienced Canada business financing advisor on information and help on franchise financing in Canada. Next step = ' You're approved '!





7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



Business financing for Canadian firms, specializing in working capital, cash flow, asset based financing, Equipment Leasing, franchise finance and Cdn. Tax Credit Finance. Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations.

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR

Stan has had a successful career with some of the world’s largest and most successful corporations. He is an experienced

business financing consultant

.

Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.


Stan has over 40 years of business and financing experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in-depth, hands-on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.









Stan Prokop
7 Park Avenue Financial/Copyright/2020

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