Breakthrough In Financing Accounts Receivable ! New Fresh Approach To Best Invoice Factoring in Canada

Surpassing a restriction - that’s how a breakthrough is defined , and we're sharing info on how financing accounts receivable and achieving the best invoice factoring in Canada just got a whole lot better !

Thousands of small and medium sizes businesses in Canada (and by the way, a number of larger corporations also!) have moved towards an independent non - bank method of financing accounts receivable in the Canadian business landscape .

But is there a way in which you can achieve the breakthrough that we're referring to? First of all let’s make sure we are all singing from the same hymn book so to speak... covering off the essence of this type of financing.

Simply speaking accounts receivable financing, aka ' factoring ‘... ‘invoice discounting ' is the sale of your receivables , as you generate them , for instant cash flow and working capital . In the majority of cases of this type of financing you still assume the risk of the non collection of receivables, but you're simply monetizing or cash flowing that portfolio of A/R for quick access to cash.

Also of note is the fact that typically while you don't have to finance a receivable immediately as its generated, at the same time invoices over 90 days generally cant be financed as they are assumed as uncollectible . We are always encouraging clients to monitor their A/R agings and schedules to ensure they have a maximum handle on accounts receivable status.

Clients ask why businesses choose this type of financing over traditional A/R finance such as bank lines of credit, etc. That answer could not be simpler, it’s a case of getting capital and cash flow that you might otherwise not achieve through a bank, plus it’s quick, with the major benefit being that your facility grows as your sales grow. You do not have a pre -set limit per se. That’s a huge benefit.

But let’s focus on some potential drawbacks to this type of finance - we've always thought it’s important to present a balanced view. One of those drawbacks is the perceived cost of the financing. Back to that word perceived in a moment. The whole issue of cost and pricing of A/R financing is one of two issues we are always spending time with clients on. The industry as a whole views the transaction as a discounted sale price, while customers perceive that pricing as an annual per centage rate.

On a day to day basis, as you finance your receivables, they are in effect ' purchased’... at a ' discount ' to their face value. The discount rate on a 30 day receivable in Canada varies widely... that’s why its important to work with an expert to achieve maximum best financing. That rate tends to be in the 1-3% range more often than not.

However... back to our word ' perception '. Most clients don’t understand there are numerous methods to offset that financing cost, in some cases in its entirety. Its a case of using new found cash flow to take supplier discounts, purchase more effectively, and take on new business that otherwise might not have been possible .

So, is the suspense killing you? Let's not forget the ' breakthrough' we talked about - which is what we have come to call ' C I D '. Its confidential invoice discounting, and it goes against the grain of all the U.S. and U.K. companies in Canada that offer this type of financing. It puts you in control, and that’s a good thing, right? You bill and collect your own receivables, with no notification to your clients, suppliers, etc.

Most clients balk at the use of financing accounts receivable via factoring solely because of the issue of notification to your clients, and we're just removed that issue. So that, coupled with the best invoice factoring pricing you can achieve makes this financing very attractive to firms that can’t achieve bank or traditional financing of their working capital.

Check out C I D, confidential invoice discounting... speak to a trusted, credible and experienced Canadian business financing advisor on how you can achieve the best invoice factoring and financing from a viewpoint of cost and confidentiality.



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_accounts_receivable_best_factoring.html

Sound Acquisition Financing Ideas – Commercial Business Loans For Purchase & Merger

Your company has made the decision to either merge or acquire another business. What are some of the key issues in successfully completing acquisition financing and business loans for commercial entities in Canada?

A good place to start is simply to ensure you’ve got the right reasons or goals around a merger or acquisition. In some cases you wish to diversify your company, more often than not though it’s simply a case of growing, both sales and profits of course.

Is the term ‘opportunistic a negative one? We certainly don’t think so when it comes to legitimate business dealings, so in many cases you simply have come across a firm or competitor that in your opinion is undervalued. Bottom line, it’s a bargain and you're focused on exploiting either undervalued assets or companies that are not performing well in certain market conditions.

Don't forget also that acquisition financing is all about some even more common sense scenarios as identified above. Its often a classic opportunity to lower your operating costs as overheads in the dual firm can be cut and other efficiencies can be extracted from the combined mix .

What are the types of acquisitions? We can summarize those into three areas, and in some cases the type of acquisition you make will impact directly the type of financing and commercial business loans that you achieve.

Back to our three merger scenarios - they are as follows: friendly, hostile, and leveraged or management buyout. Many smaller companies are of course happy and content to be taken over; they fully realize the potential synergies. However in certain cases it gets somewhat ' ugly ' in that the management or owners of the firm you intend to buy or acquire simply are opposed to the idea.

Leveraged and management buyouts tend to be asset driven. The downside of a leveraged or management buyout is that if done improperly a large amount of debt can leverage your new firm negatively. There are numerous creative ways to finance acquisition financing in Canada.

Financing methods include asset based lending, subordinate or mezzanine debt (i.e. unsecured loans based on historical and future cash flows) as well as a private equity component.

Valuation is an important aspect in the area of acquisition financing. Your valuation will have a direct impact on the business loans you enter into to complete the purchase. In evaluating a final valuation or purchase price you will want to look at things like general financial operating activities - i.e. the financials. But don’t forget also that other factors such as new assets that might be required, working capital needs, etc also will drive that final valuation number.

In summary, when contemplating acquisition financing look at issues such as the proper mix of debt and equity, cash flow analysis, , and various areas of operational risk and reward . If you want financial alternatives in financing your acquisition consider talking to a trusted, credible and experienced Canadian business financing advisor who will assist you in this exciting area of Canadian business finance.



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/acquisition_financing_business_loans_commercial.html

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