Interested In Business Acquisition Buyout Financing For A Canadian Purchase ?

Talk about a capital expenditure. We're discussing Canadian business acquisition buyout financing in Canada and purchase loans available for funding this type of transaction – primarily for the small to medium enterprise in Canada .

Naturally as a Canadian business owner or financial manager it’s critical that any acquisition and its financing challenges be handled in a manner which properly positions your firm for future success and profits. The simple reality is that typically transactions of this nature involve significant amounts of capital relative to the size of your current firm.

Naturally its all about cash - the simple financial model is of course your firms ability to ensure future cash flows receive exceed the purchase price. In reality the only way in which you should consider paying a significant premium is when there is a strong case for putting the two firms together for significant improvement in both.

Another consideration that business owners must also make prior to contemplating purchase loans is the issue of ' diversification ' and the dangers of taking your firm into an unrelated business . Diversification for its own sake clearly might not be an optimal strategy.

So just when is a business acquisition related to your industry, and when is it not? The experts are quite clear on that - if you have markets and clients that are similar, or utilize a technology or science that is also similar then clearly you're acquiring or buying into a related industry. When Canadian business owners and financial managers buy into a similar industry they clearly have a better idea of cash flows and the basic business model - that's a good thing.

In a perfect world you wish to acquire or retain a strong management team when contemplating an acquisition. This certainly makes business acquisition buyout financing less difficult. At the end of the day we can probably all agree with the fact that your skills as the acquirer are potentially more critical than those of the business you are acquiring. It's your challenge of course to make the synergies, profits and sales stay positive.

Do you really need an investment or merchant banker or professional deal maker to complete successful proper purchase loans in small and medium sized business acquisition? We'll go against the grain and say not always - we think that with the assistance of an advisor you're in a position to identify a financing objective and execute on a purchase loan and financing alternative that makes sense for all parties.

So, contemplating an acquisition in the small to medium sized marketplace in Canada? Want some assistance on pricing, areas of risk, and the best way to finance the acquisition. Speak to a trusted credible and experienced Canadian business financing advisor who will assist you with your objectives.




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.7

parkavenuefinancial.com/business_acquisition_buyout_financing_purchase.html

Notes From The Trenches – Canadian Financing For Franchises – Get Your Business Franchise Loan Right !

It's sometimes just the thought of wondering how financing for franchises works, and if in fact you will be approved for a business franchise loan that gives you discomfort. Let's examine whats happening in franchise finance today out there in the trenches, aka the real world!

It's pretty clear to yourself that when you're contemplating the purchase of a franchise you will need financial assistance via a franchise loan to complete your project. Those funds in effect compliment or complete your equity, i.e. your own investment into your new business. We point out to clients that the same challenges and issues pertain to whether you're purchasing a brand new ' turnkey ' operation or if you are purchasing from an existing franchisee who is selling.

P.S. Don't forget to ask why the franchisee is selling?!

So where is commercial lending at Vis a Vis Canadian franchise financing? Do you have to do a lot of homework to investigate how to successfully complete a franchise finance loan?

Naturally in a perfect world ( its not always perfect as you may have observed ) you're looking for financing that completes your transaction, has reasonable rates, and provides you with a term on the loan that is suitable for both cash flow and repayment .

In Canada franchises are financed successfully in a number of manners - but it’s certainly not a large choice, so it’s important to focus early on, on what you can achieve and with whom. There are one or two specialty franchise finance firms but these firms typically focus on the relationships they have with some of the largest an well know franchisors, many of whom have franchises for sale in the 1 Million dollar ++ range . That isn’t for everyone of course.

It's actually the Canadian government (that’s a surprise!? that has a huge role in financing for franchises in Canada, but in a somewhat indirect method. They sponsor a loan program called the BIL/CSBF loan that provides financing for a huge amount of franchisees in Canada. The program is clearly a champion of small business, on which franchising is of course based - independent owners and operators working with success franchisors in Canada.

The government in effect guarantees a very large percentage of the loan, allowing you to receive those rates, terms and structures that are absolutely some of the best financing terms in Canada, bar none.

What do you need to do then to get your franchise financing house in order then? It's not a cake walk, but quite frankly is not as hard as you think to accomplish your goal of a success business franchise loan.

You want to be able to ensure that you're prepared - naturally you would do that for any business financing you would ever contemplate. You need to be able demonstrate a reasonable personal credit history ,as well as some level of either general business knowledge or industry specific knowledge relative to the industry within which your franchise is located, i.e. restaurants, service business, etc.

It's important to have a clear cut business plan that demonstrates how your financial package looks, i.e. how the combination of your own equity and the loan will allow you to acquire the franchise, and, of great interest to the lender, repay the loan.

Will your franchisor help you in all this? Yes... and no. It's our observation that franchisors are focused on selling franchises, not financing them! So be prepared to carry the weight of most of the work in completing you’re financing for franchises.

Want some help? There’s lots out there. Consider talking to a trusted, credible and experienced Canadian business financing advisor who can assist you to achieve your goal as a successful franchisee in the booming Canadian franchise market.




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/financing_for_franchises_business_franchise_loan.html

Why Postpone Business Success? Investigate ABL Lines Of Credit & Asset Based Lending In Canada

Sure you could wait. Maybe later this year... next year, or several years down the road..? We're talking about getting all the business financing you need and why ABL lines of revolving credit via asset based lending can work for your firm... today!

We think all our clients agree that in today’s competitive environment ' waiting ' for things to change is not going to work! So let’s consider a type of financing that will work, today, and for the future.

Hard hit. That's how many businesses, small, medium, and yes, large... feel about being caught in the downdraft of the difficulty to obtain the proper amount o fbusiness financing they need. The 2008 - 2009 recessions didn’t help, and even our world wide admired Canadian banks had to hunker down, which in your case meant less access to capital as if you didn’t know already. The bottom line, it was simply business credit was, and to some extent is, tougher to obtain.

The above conditions and the ever changing Canadian business financing landscape has made it a ' perfect storm ' for ABL lines of credit and asset based lending . Businesses who have been forced, or who finally realize they had non-bank business financing options are exploring ABL (the acronym for asset based lending) every day in Canada these days, with thousands of companies having ' signed up for the program '.

Canadian businesses of all types are investigating ABL. It’s very simple really, they either have no access to traditional funding, or if they do, it’s not for the amount of capital they need. Others simply adopt the Boy Scout motto - BE PREPARED ‘! and are proactively seeking alternative operating line of credit solutions. The bottom line - working capital and cash flow has become ' job #1' for Canadian business.

Want a simple, basic reason why companies are looking for a financing alternative. It’s just that firms have more debt, accounts payable days have risen, and, no surprise, clients are waiting much longer to get paid by their own customers.

Many Canadian business owners and financial managers haven’t even heard of ABL, much less embrace it. A lot of the new interest is in the SME marketplace, but many of Canada's largest corporations utilize this financing also.

It is no longer ' financing of last resort '... in fact it’s become an unbelievable tool to grow your business. expand into new markets, acquire a competitor, or even just survive after some challenging years or special circumstances your company may have encountered.

ABL lines of revolving credit, just a basic term for asst based lending is simply a business revolving line of credit that allows you to borrow against all your assets - those being receivables, inventory, and fixed assets and real estate, if that comes into play. The difference? You can borrow significantly more, because the total focus is on assets.

In Canada ABL lines go from 250k and up, with really no upper limit on the amount of your facility, we're talking millions of course. Your credit availability increases very significantly based on the elimination of the traditional Canadian chartered bank issues of rations, covenants, outside collateral, personal net worth, etc, etc. The bottom line, you are borrowing on your assets!

There are some different, lets call them ' flavors ' in the Canadian ABL asset based lending marketplace. The facilities come in different shapes and sizes; can be just receivable based, or a full service solution delivering extra capital against all your assets.

So, can you afford to wait or postpone business financing success? If you do, we're jealous of course. If you can’t wait, speak to a trusted, credible, and experienced Canadian business financing advisor on achieving benefits of ABL finance... today!





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_lines_of_revolving_credit_asset_based_lending.html

5 Guaranteed Business Working Capital & Cash Management Solutions For Liquidity - Canada

Are there any ' guarantees' in Canadian business financing? A guarantee is something that ' assures a particular outcome ' . So we're not 101% sure we can give you that iron clad guarantee , but we will show you 5 proven methods of enhancing cash management and working capital solutions in Canada .

Strategy # 1 - Not optimal, but again it's all about choices. So our tip/strategy is to consider sale of fixed assets you own but might not be getting full use of in your day to day operations. Naturally you would not consider selling assets you need on a day to day basis, but are there some unproductive assets around? There just might well be.

You naturally want to ensure that these assets are fully owned by your firm and not encumbered by any liens or bank security agreements. In some cases a reasonable strategy might be to replace e the asset with a less costly one, or used perhaps?

Strategy #2 - The sale - leaseback. This strategy, as we have noted before is just the opposite of acquiring and financing new assets. You already own the asset and it should be free and clear of any security arrangements. By working with a Canadian lease financing company you would enter into an arrangement whereby you sell the equipment back to the lessor and lease it back.

These transactions are generally done at what is known as fair market value, so you expect to not be able to get all the money you paid for the asset of course. In some cases an actual appraisal might be required, which typically would be in the 1-2k range depending on the size of the asset.

Generally speaking, the sale leaseback or a bridge loan on an already owned asset is a strategy worth considering when it makes sense.

Strategy 3- Inventory. That’s always a tough one for Canadian business owners and financial mangers to wrestle with. Financing inventory is a challenge and although there are some specific financiers able to monetize your inventory generally this is in connection with a total financing of your business. Financing and monetizing inventory works best, in Canada, in our opinion, when its part of an asset based lending arrangement or working capital facility.

It only makes common sense also that you could consider selling off any obsolete or slow moving inventory, again, if that makes sense and is possible.

Strategy # 4- Other assets. There are sometimes other hidden assets, in that business owners might no typically consider such items as patents, or tax credits as financeable items. But they are and can be monetized for their true value.

Well, we're here, last but not least, Strategy # 5. And to be honest it’s our most recommended one for small and medium business in Canada. It’s simply the monetization of your receivables via a receivable finance facility.

Why is this favorite strategy? Simply because for a starter you are not taking on any additional debt, you are just ' cash flowing ' assets that are already there. And these sort of facilities allow you to grow your business lock step with your sales. So working capital and cash management grow as you grow your revenues.

Our recommended facility is C I D - Confidential invoice discounting, allowing you to bill and collect your own receivables, unlike you competitors who are using this strategy and having to involve their client base re notification, etc.

Well, there you have it. 5 methods or solutions to cash management and working capital. Are they guaranteed? We are saying they work, and that’s all. Will all of them work and be appropriate for your firm. Doubtful, but we are pretty confident that somewhere in our toolkit of solutions is a working capital mechanism just for your firm. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in evaluating options.



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_cash_management_solutions.html

Capture 3 Benefits Of Lease Financing – With Canadian Finance And Leasing Companies

If we gave you 3 , among many, solid reasons to consider lease financing with finance and leasing companies in Canada , don't you think that just a couple of them would work for you, for sure? Maybe all 3 would?

If your company would like to become part of the successful majority of Canadian business in Canada it’s about time you understood and considered lease finance.

What then are some key reasons why business in Canada utilizes lease finance? There are other options of course, and it's up to you the business owner to determine which one works best for you, carefully analyzing whether debt or equity makes the most sense for your firm. It all comes down to whats important to your company and where you are heading with asset acquisition.

Reason #1 - Yes, there may be a down payment sometimes or a nominal security deposit but in general lease financing provides you with the ability to finance the entire asset. The asset is of course the ' hard cost ' of your acquisition, but many Canadian business owners and financial managers are pleased to know that there are numerous add ons let us call them, that can be , yes, ' added on' to the lease. They are items such as delivery, installation, warranty, training, service, etc.

Reason # 2- We hate to sound like economists here but the reality is that lease financing is a solid hedge against inflation. You in effect slow down the use of your funds, and at the same time can use cash flow and working capital you otherwise might have spent on the asset. That’s just common sense right?


Reason # 3- Term. One of the smartest things you can do when working with finance and leasing companies is to match the term of the lease with your best business estimate on the useful life the of asset . You're matching cash outflows to the benefits you receive from the asset, bringing those two together as much as you possible can.

Naturally we all realize that some assets depreciate quickly, some less so, and in a few cases (aircraft as an example ... or very heavy production equipment) the deprecation and obsolescence aspect is less of a concern.

In Canada lease terms can theoretically go to ten years in some cases, however the real world out there tends to favor 3-5 year lease terms. Many clients often are looking for a shorter term for specific project or asset type reasons - The shortest term we tend to recommend is 24 months - anything less than that doesn’t make real sense for the lessor, or yourself.


This then is your firms moment. Consider the 3 tips and benefits we have provided .You of course have everything to gain and nothing to lose. Want more info, or even help ?Speak to a trusted, credible and experienced Canadian business financing advisor who can maximize , for your company , these and other benefits of lease financing 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 80 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Canada’s Newest Biz Financing – Receivable Financing Companies and Providers Of A/R Loan Plans

New. Improved. Are we talking about laundry detergent? Not really, instead let’s take a look at Canada’s newest and growing in popularity, form of business financing, A/R loan plans. Can receivable financing companies be the solution to your business challenges? We think so and so let’s show you how the providers of this type of financing work.

Clients always tend to ask us simply why they should be looking at receivable financing .That’s one of the easier questions we get these days.

There are some very strong fundamental reasons why you should be looking at this type of financing for your business, not the least of which is acceleration of cash flow. Receivable finance allows your company to receive cash flow and working capital the day you generate an invoice. Practically speaking you could draw on your invoices every day, but reality shows that most firms borrow on a weekly or monthly basis. Bottom line, it’s your call.

Another key reason that provides of a receivable loan plan work is simply that they have become the de fact alternative to bank financing in Canada. That’s predominantly for small and medium sized business, but you’d be surprised to know that many of Canada’s largest corporations use a flavor of this type of financing also.

In today’s competitive environment your ability to be cash flow positive allows you to enhance your relationship with customers and your valued suppliers. It’s simply a case of what you could call ' professional visibility ‘... and that’s a good thing!

If you are in fact utilizing receivable financing companies for your A/R finance you also are able to leverage at the same time other aspects of Canadian business financing, this includes equipment financing, tax credit financing, term loans, etc. The bottom line is that the providers of an A/R loan are solely interested in collateralizing your receivables, not all your other assets.

Is there one final reason perhaps to consider a provider of A/R loan plan financing? We'll give you a great one, there is essentially no funding limit, in that as your A/R grows so can your facility. Is it just us or have you turned your firm into an ATM machine. That’s cash flow 101 for sure.

The attraction to invoice financing, aka factoring, is just simply that it’s a solution to the ongoing struggle of businesses requiring working capital. And as biz financing tightened up in the last few years Canadian business owners and financial managers looked for alternatives.

That alternative quickly emerged as accounts receivable financing. It’s the selling of your receivables at a discount, as you generate them. The challenge in Canada is picking the right type of facility - our recommended solution to clients is called C I D , confidential invoice discounting, allowing you to bill and collect your own a/r without the notification that is required by your clients for other types of facilities that predominate the marketplace.

So, bottom line? If you are looking for either business survival, or business growth take advantage of the service offered by receivable financing companies. If other sources are limited, and you require capital for expanding your business the solution lies right in front of you, and is being embraced by thousands of other Canadian business owners.

Speak to a trusted, credible and experienced Canadian business financing advisor on why receivable financing companies and providers of A/R loans can help your firm, today.



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/receivable_financing_companies_providers_loan_plan.html

7 Reasons Why Lease Financing Companies Offer Advantages Of Leasing Equipment In Canada

It isn't enough to be only a ' little' in the know when it comes to business financing and your Canadian firms overall growth and success. Let's examine 7 solid and beneficial reasons how lease financing companies can demonstrate the advantages of leasing equipment for your company.

Its a simple question really. ‘Why Do Lessees Lease'? There are a variety of solid reasons and advantages and benefits to equpment financing in Canada.

We're isolated 7 of those reasons (lucky # 7?) to demonstrate the general financing power of this Canadian business financing strategy.

Reason #1 - 80% of all companies in North America lease equipment at one time or another. Not a great reason you say? We at least hope that you'll agree that if your competition is doing something you should at least be aware or analyze why that the case. As you will see your competition has focused on issues such as working capital preservation, accounting benefits, and plain old convenience.

Reason #2 - Tax benefits. The last thing we want clients to do is get caught up in the whole issue of tax treatment of leases, let’s leave that to your accountants and business advisors. But the reality is that there are significant benefits that are tax oriented when it comes to the product offering of lease financing companies in Canada. They include such critical factors as depreciation, off balance sheet financing, etc. Again, leave it to the experts, but it’s a solid aspect of equipment finance in Canada.

Reason # 3 - Matching financing to useful economic life. What are we talking about? Just common sense really, which is simply the fact that one of the advantages of leasing equpment in Canada is that you can match the estimated useful economic life of any asset you purchase (from a photocopier to an airplane!) to your lease term. Technology is a great example of this, in that it depreciates quickly, has a huge obsolescence issue attached to it, and your ability to craft lease financing that matches the tech asset is huge. At the other ends of the spectrum, lease that corporate jet for 10, 15 or 20 years, there's an asset that hangs around for a long time!

Reason #4 - Solid lease rates. The great news is that Canadian equpment leasing and financing is on a total upswing as we head thru 2011. The industry has revitalized, recapitalized, and is very competitive. A lot of the lease finance pricing you obtain will be competitive to bank rates and other forms of finance such as term loans for assets.

Unfortunately many clients we speak to for the first time on asset finance are overly focused on rate. Our point is that it’s a competitive environment, and your current credit quality will get you a good rate in the current finance environment, so you'd do a lot better, we feel, if you focused on some of those other advantages we're talking about.

Reason #5 - Assets. They come in all shapes and sizes for your firm and industry. Tech assets, production assets, etc. The only bottom line... simple... any asset can be financed using a lease strategy. So if the cost and turnover of assets is a constant consideration utilize lease financing as a regular ' refresh ' strategy.

Reason # 6- Measurements. Measurements? What we're talking about is simply that how your business owners, investors, or shareholders are measure can sometimes be significantly impacted by the assets you acquire. Return on assets, return on equity, ebitda, are key ways to measure whether your company is winning and losing. Lease financing can often impact all of these measurements, and depending on what your ' business scorecard ' is, can help you manage capital and assets.

Reason # 7- Last, but not least, isn’t it always about Cash flow. It sure is, and if your company is either as start up or a Canadian Financial Post 100 firm you have cash flow challenges, issues, and measurements around that term. Lease financing allows you to eliminate a lot of those working capital worries, it minimizes or gets rid of down payment issues, pays the supplier and vendor promptly, and can provide 100% financing for your asset. Very simply, it conserves cash.


Well, that’s it. Are the advantages of leasing equipment better than other capital asset strategies? We think so, but that’s for you to decide. And getting back to the competition, they're doing it, so why not speak to a trusted, credible and experienced Canadian business financing and leasing advisor who can assist you to maximize these benefits.



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/lease_financing_companies_advantages_of_leasing.html