You’ve Got Working Capital and Cash Flow Problems – We’ve got Canadian Business Financing Loan Solutions !

Working Capital Management Finance Strategies


Information on working capital and cash flow financing solutions in Canada via a business loan or asset monetization strategy .How Canadian small and medium sized firms finance themselves today.

It becomes evident at numerous times in the life of a business that some form of outside financing is needed. Let's look at some of the situations that your firm finds , or might find itself in and what types of Canadian oriented working capital and cash flow financing business loan solutions are available.


Some times the best problem is the worst problem - by that we mean that you are growing and growing quickly. Alternatively many clients we meet are experiencing some sort of challenge - it might be a financial loss in the current or previous year. And most commonly it’s a case of financing those current assets, i.e. A/R and inventory to bring in liquidity to the company for normal ongoing operations.

Three solutions are available to the Canadian business owner of financial manager. They include taking on more debt (not optimal or often desired), bringing in a partner for additional permanent equity and working capital, or, our favorite ' Monetization ' (Back to that one later)

If your company is not leveraged, or should we say over leveraged and can handle additional debt that is not necessarily a bad thing. For the majority of firms and industries in Canada a debt to equity ratio of 2 or 3: 1 is generally viewed as acceptable by the people that count. (Banks and other lenders!)

Raising private equity for a small to medium sized business is generally difficult and challenging in the Canadian business climate. We've seen numerous clients take the public financing route via a reverse takeover or utilizing a capital pool... our simple observation on that ?... In general things never seem to work out! Let's leave it at that.

When studies look at how small and medium size borrowers really do borrow in Canada it probably isn’t shocking to our clients that a huge majority of debt comes from credit cards, the BIL Government loan, personal savings of the owner, loans from friends and family, , etc . Generally only 35% or so of business in Canada in the SME sector gets the financing they needs from traditional bank financing, due mainly to the requirements that Canadian commercial banks impose on company borrowers and their owners personally. (By the way, we love Canadian banks... its just that sometimes there is a better way)

We mentioned that working capital solutions for cash flow financing can come not from borrowing, but from monetization of current and fixed assets. That’s why be spend a lot of time with clients explaining the different benefits and costs associated with : bank lines of credit, non-bank lines of credit , a/r and inventory working capital facilities , true ABL ( asset based lines of credit) facilities , confidential receivable discounting .

In additional many previously viewed ' alternative solutions ' are becoming more mainstream everyday. They include purchase order and contract financing, tax credit financing, securitization, etc.

So, do you have a working capital or cash flow financing business loan challenge? Invest some time in real world Canadian solutions. Seek and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in addressing current and perhaps future financing challenges.



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 . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


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

The No. 1 Secret To Sales and Cash Flow Success – Offer A Canadian Vendor Financing Program & Customer Leasing Plan ! Sales = Cash !

Let Customer Financing Grow Sales, Profits, and .. oh yes .. Cash Flow!

Information on why a vendor financing program for your customers improves sales, cash flow and profits . Why a Customer leasing plan might make sense for your firm . A no cost growth solution for companies in Canada.



I am sorry, we'll have to remove it... no, we’re not doctors; we're talking about helping you remove one of the largest, if not the largest obstacle to innovation for your clients - the cost of your product.

How do we do that ? By recommending that you consider a vendor financing program for your customer base, a customer leasing plan that allows your clients to acquire and use your products while eliminating that obstacle to innovation we spoke of .. price!

Any Canadian firm that sells a product (or service for that matter) should consider a vendor leasing program for your clients. And boy are there some obvious benefits, not the least of which is to increase your sales. Just think of it, when you give your clients the choice of how to pay for your products and services their ability to pay over time via a customer leasing plan gives them significant flexibility.

That flexibility by the way comes in many forms. It includes removing your clients budgetary constraints if they are out of the budget cycle but still need your product, and secondly the pure cash flow outlay of small amounts over a 24 - 60 month period (those are typical lease terms) allows for your client to in effect match the benefits of your firms product and services with their real cash flow outlay. That’s important to the Canadian business owners and financial managers that are your clients.

Does offering a vendor financing program to your customers seem complicated. Its far from that... mainly because you dont have to form a separate financing unit within your company... instead you can simply work with a trusted , credible and experienced Canadian busienss financing advisor who can assist you by acting as an independent lessor , in effect an ' in house ' agent for your program . It does not get simpler than that. You in effect have set up an in house finance company to increase sales, at... yes... ZERO COST!

Let's recap some of those critical benefits to your new vendor financing program. We referred to both Sales and Cash previously. By offering financing to your customers you increase revenues by providing options otherwise not available to your client potentially. And, oh yes, lets get back to cash. Instead of waiting 30, 60, or even dare we say 90 days these days to get paid your firm gets paid as soon as your products and services are delivered and accepted by your client. And payment comes from your credible financial leasing partner, so no credit worries there!


We often refer back to a list we learned many years ago about what any customer considers an ' obstacle to innovation ' in the purchase of products and services. Surveys always indicated the cost was #1 on the list. So, bottom line, let a vendor financing program be your ' obstacle remover '; speak to that trusted Canadian leasing advisor today about initiating your program... 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 . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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

Cash Flow Financing - Why Canadian Factor Companies Just Became Your Best Bet For Factoring & A/R Sales Finance

Why Canadian Business Has Chose Non Bank Receivable Financing !


Information on factor companies in Canada –how does factoring pricing work and why have Canadian business owners and financial managers chosen this method of cash flow financing to grow their business.


One alternative to borrowing funds or raising additional ownership equity in your firm for cash flow financing is the solution provided by factor companies in Canada via accounts receivable financing / factoring.

This solution is becoming more and more popular and much of the mis information around this type of Canadian business financing is being cleared up and clarified properly as thousands ( yes thousands) of companies just like yours look for new business financing methods when the old ones either don’t work or aren’t available .

Let's focus on a couple of the main points that clients want to better understand when they consider cash flow financing via factor companies. Those two key points, if we had to sum them up, are: What is the real cost of factoring, and how does it work on a day t day basis?

In Canada it is somewhat safe to say that pricing on receivable financing is somewhat ' all over the place '. Rates range from 1-3% per month. So what drives that pricing then? The key areas that factor into factoring pricing are the size of your facility, the general overall quality of your Canadian and U.S. receivables, and the relative financial health of your firm as ' borrower'. We hasten to add that when you finance your firm in this manner you aren’t actually borrowing or taking on more debt... you are just ' monetizing'... or we could say ' cash flowing' your largerst current asset, which is typically receivables .

You can win with factor companies when you become in effect a ' educated buyer’... what we mean by that is it’s important to understand the Canadian landscape when it comes to who you are dealing with. There is an incredibly fragmented industry here, and it’s yours to take advantage of if you know how.

So who are the players in the industry, because it certainly would be a challenge if you had to investigate them all! as there are hundreds of firms. These firms are Canadian, U.S., and U.K. owned, some are major corporations, some could simply be called 'mom and pop' finance firms, and finally some are medium sized in nature and capitalization and are solid candidates to handle all your business financing.

With respect to how this type of financing works... our recommended preference is confidential invoice discounting... a term we give to factoring which allows you to bill and collect your own receivables , with no notice being required to apprise your clients of how you are financing your firm .

Typically, if not always the U.S. and U.K. firms doing business in Canada do not offer this type of financing. Your best bet is to seek someone knowledgeable in the factoring market and ensure you partner up with the right firm. That’s where working with an expert always pays off. Naturally if you have all the time in world to speak to and investigate hundreds of firms who might be a poor choice for this type of financing need then by all means... go ahead! And for the record we're jealous of that time you have on your hands in running a business!

Getting back to pricing on this cash flow financing method. Remember that you aren’t borrowing funds, you're selling receivables. So by utilizing this financing you're generating immediate cash flow every time you make a sale. You are not constantly ' re-applying ' for a new line of credit, similar to a bank scenario.

Canadian firms make best use of this financing when they have growing sales and fairly decent gross margins that allow them to absorb the financing cost. Your strong sales growth brings immediate cash; the fixed costs in your business generally remain the same... so the higher business volumes bring incremental profits to your firm

Our bottom line? As usual we encourage you to work with an ' expert’... so consider seeking a trusted, credible and experienced Canadian business financing advisor who can assist you in your cash flow 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 . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


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

3 Obvious And 1 Not So Obvious Reasons To Consider Canadian Lease Equipment Financing For A Capital Asset Loan

How To Capitalize On Equipment Leasing In Canada

Information on lease equipment financing in Canada and what solid benefits Canadian business owners and financial managers can achieve via a capital asset loan financing program .


It's always a little easier to consider the obvious in business and business financing in Canada. Occasionally though we think it’s prudent for clients to ensure they consider all the benefits of certain methods of financing, some of which might not be so obvious. Let's clarify with respect to lease equipment financing in Canada, and why and asset loan or lease for capital financing purposes is often head and shoulders above any other financing alternative .

It's a given that you want to ensure any financing decision has solid reasons and benefits prior to entering into the transaction. In Canadian equipment finance the ability to finance between 90 - 100% per cent of the asset, as well as additional miscellaneous costs is clearly a huge, and obvious benefit.

In the past we have often referred to lease equpment strategies with a phrase we always thought was quite powerful... it’s simply as follows - Asset loan and capital lease financing helps you overcome ' obstacles to innovation '.

Because quite often when we sit with a client the cost of an asset acquisition is in fact the largest obstacle to innovation and growth within their firm. Simply put, if we had all the capital we needed we probably would always by the best (most expensive) fixed assets for our business.

Let’s get back to that 90-100% financing. Although many lessors tout the fact that lease finance in Canada is 100% financing the reality is that on many occasions clients are asked to put down a down payment of security deposit on the lease finance transaction. We would point out though if your firm has very good commercial credit and financials and cash flow that support your transaction you should in fact focus, if not demand! 100% financing.

So, on to our 2nd obvious reason to focus on lease equipment financing asset loan/lease. It’s all about the term. The term of course refers to the length of your lease... it can be long to ensure lower payments and reflect the assets useful economic life, or it can be shorter it means getting an approval vs. not getting one. We point out to clients that ,on balance, lease terms of less than 2 years to not make sense for the lessor... so don’t focus on too short a term!

We heard a rumor the other day... that being that ' cash is king’! If you subscribe to that rumor then equpment financing is for your firm, reducing cash flow drain and be adjusted for seasonality, delivery issues, or simply staggering payments to ensure your match benefits of the asset with cash outflows.

Those all 3 very obvious, and often discussed benefits of asset financing via leasing in Canada. We have focused on who you are dealing with, which is one of the hundreds of equipment finance firms in Canada. So our ' not so obvious ' point today is simply that by not dealing with banks , insurance companies, hedge funds, etc , all of which might hold other security over your firm you are in effect freeing up the business credit than any firm so badly requires these days . And you can further expand that business credit by considering off balance sheet financing via operating leases, which make perfect sense for larger ticket items such as computers, aircraft, etc.

So as we have said, there are a number of ' economic ' benefits to leasing equipment in Canada. To further explore some of these obvious( and not so obvious!) benefits to your firm consider talking to an experienced Canadian business financing advisor who has a trustworthy, credible and experienced reputation in Canadian equpment 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 . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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

Looking For Canadian SBL Loans From The Government For Your Business? There's No Substitute For Good Information!

Successfully working the Maze of The Government Small Business Loan


Information on the business loans from the government in Canada . Why the SBL small business financing program is right for your firm, if you know the approval process!


Boy do we get a lot of questions around the subject of loans from the government. The SBL (Small Business Loan) for your business just might be the ' tipping point ' between success and failure for the financing of your new of established business.

So why is this financing so great, let's help you clarify that question... and finally, there is so much mis-information about the program that we thought we would share with you the ' straight goods' on the program. Let's get started!
There is a feeling among many clients that it takes a long amount of time to get both approved and funded on SBL loans. That depends only on one thing... you! We make a strong point with clients that if they are prepared and can meet the fundamental criteria of the program then a relatively small amount of planning (with some expert help) can get you approved within a week or so. That’s a far cry from the weeks and months that many business owners and entrepreneurs tell us they have spent muddling their way through the program.
So why do we maintain that its a matter of days when in fact your own experience might be otherwise .Enter the Boy Scout Motto ...' Be Prepared'! If you spend a bit of time ensuring you qualify for the program (we’ll share those qualifications in a moment ' then the preparation of a simple package of info confirming those qualifications will get you to the goal line. And by goal line we mean loan approval and funding.

Qualifications for the program are as follows - you must be a Canadian citizen or eligible to legally borrow in Canada. You also need to have a reasonable personal credit history. Banks that administer the program for the government use a scoring system from the credit bureau, and if you have the pre requisite score that helps ensure approval.
You should also be prepared to detail your financing via a business plan or strong executive summary. If you don’t have the ability, experience or time to prepare such a document then one can easily be prepared for you by an experienced Canadian business financing advisor.

And what is in that ' plan’... it’s not as complicated as you think. It's info regarding yourself, your business experience, the asset or assets or business description you are financing (it can be a restaurant, manufacturing equipment, a purchase of a business, etc). Most importantly we feel is the financial plan you attach to your request.

The financial plan should show the sales, costs, and cash flows of the business... with emphasis on reality and conservatism and ensuring the cash flows show good repayment of the SBL business loan. SBL loans from the government are administered by the bank and both the bank the government (for some reason!) wish to see that they will be repaid!

So our bottom line is that with some expert info and assistance you can be sure that you have a very strong chance of being approved for the government small business loan. We encourage all clients to investigate the program, as rates, terms and structures are excellent for any small to medium sized (Sales under 5 million) business.

Ever felt that some expert assistance in any aspect of your business can get you to where you need to be faster? Seek and speak to a trusted, credible and experienced Canadian business financing advisor who can show you the fast track method of achieving approval on SBL loans from the government for your business venture.



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 . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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

Ten Things Mom Didn’t Tell You About Financing Options For A Canadian Franchise Business Loan

Demystifying Franchise Finance in Canada


Information on financing options for a Canadian franchise business loan . Debunking popular myths in franchise finance and focusing on how to successfully complete your acquisition of a new or existing franchise opportunity .


If there is one business segment that is not ‘out of favor ' these days its the franchise industry ... not the least of which reason is that a huge per centage of the Canadian economy depends on sales from this entire industry .

Clients have very similar questions when it comes to a franchise business loan, revolving around their need to realize the entrepreneurial dream with financing options that make sense for their particular situation.

We thought we would cover off ten of the most popular questions/issues around franchise business loan financing options, many of which stem from mis - information they have received or simply their desire to get some solid answers to fundamental questions.

So here we go! How long does the financing process take? Typically we advise clients that they should be assessing their financial options in tandem with their progress on selecting and formulating their final decision around which franchise to purchase. We see many instances where a client has lost a lease or location because they were not able to commit to financing approval. In many franchise segments the proverbial three things reign supreme - location, location, and... you guessed it... location!

Is there a lot of ' red tape' when it comes to exploring financing options for franchising? Our answer to that simply is that a franchise is a business and you should understand that the key issues revolving around the purchase of any business - i.e. due diligence, a business plan, a financial plan, miscellaneous costs, etc are all in place in franchising.

If we are turned down elsewhere can financing approval be still obtained. Absolutely... positively, it’s a case of seeking the best alternative that fits your total purchase price and owner investment into the business... ie your equity contribution.

Can both small and large franchises be financed? One or two specialized commercial finance firms dominate the major franchise market when it comes to large cap franchise investments. These transactions can be in the millions, and often involve real estate. However thousands of franchises are financed everyday in the 50-500k range.

What are franchise loan funds used for? In the mainstream of financing for franchises the finance covers equipment assets, leasehold improvements, and in some cases working capital. Many soft costs, such as your franchise fee typically can’t be financed.

How much can we borrow? Boy do we get that one a lot. The BIL program which covers a majority of franchise financing options does max out at 350k... other complimentary financing such as working capital term loans, merchant financing, and equipment leasing can provide top up financing.

What are my requirements to get approved for a franchise loan? Two key requirements are a reasonable personal equity investment into your new business, as well as a reasonable credit history and business track record in your new or related industry.

Can franchise financing be arranged on an existing franchise? Absolutely, positively... that’s a yes! A different strategy is involved, as we are now looking at an existing business with financials, assets, cash flow record, etc. But re -sales can be financed!

Can real estate be financed with a franchise acquisition? Our answer to this one is simply that normal real estate financing guidelines apply, so whether you are purchasing a mfg. company of a restaurant franchise the real estate component would typically be financed separately through a holding company you might set up.

Does franchise financing cover the construction costs of my new business? Yes, that is exactly what many programs are used for.

That covers a lot of the basics. Carefully planning via a business plan and financial projections are key. In any business expert advice gets you to the goal line faster. Seek and speak to a trusted, credible and experienced Canadian business financing advisor who can help you get to ' the dotted line!’



Stan Prokop is founder 7 Park Avenue Financial ;


see http://www.7parkavenuefinancial.com

Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 7 year old firm has completed in excess of 80 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:


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

Suffering From Bank Lines of Credit Amnesia ? Canadian ABL Asset Finance Business Lines Facilities Could Be Your Cure !

Are You Bold Enough To Consider The Newest Type of Canadian Business Financing?


Information on ABL asset finance revolving credit facilities in Canada . Business bank lines of credit without the bank ? ! Why this method of asset finance revolving credit will work for your firm .


It's probably just us, but we recently pondered the fact that many clients we meet are suffering from what might be called ' selective amnesia ‘... a ' loss of inter-related memories ' . It appears to be in conjunction with forgetting what is was like to have business bank lines of credit. Have they disappeared? Weren’t they relatively easy to get? Didn’t they always cover off all the working capital you needed?

Today ours is not to debate, defend or promote Canadian chartered bank lines (by the way, we love Canadian banks) but instead to ensure Canadian business owners and financial managers understand a very solid...we repeat ' solid ' alternative, namely ABL asset finance lines of credit.

Asset finance lenders in Canada provide lines of credit to Canadian businesses of all size. In truth we would say that the more assets your firm has the larger the facility is available and somewhat easier to get, but companies of all size, including start ups by the way, are immediately eligible.

In many cases asset based line of credit facilities either replace bank financing or are a first source of working capital lines for Canadian business. We can't over emphasize the fact that even companies in bankruptcy, receivership, or who are in the unfortunate position of being in ' special loans ( we know ... it’s not that special!)are always eligible for ABL asset finance facilities.

We also point out to clients that just because ABL facilities consider firms that are in some way troubled or challenged that they should never always be viewed as the ' lender of last resort' financing . How can we prove this to you? Simply by advising you that many of the largest corporations in Canada are financed by this bank alternative, and companies who utilize asset based lines of credit because they have been punished elsewhere for ' hyper growth ' often find themselves solicited by banks again for their commercial credit lines. Go figure!

So yes, your firm does qualify for working capital ABL asset finance lines of credit if you have financial losses, shareholder equity issues, CRA arrears, etc, it's just that the facility will be structured a bit differently in terms of rate and structure.

Clients often ask about pricing on asset based credit lines... its a difficult question for us to answer because depending on the type and size and quality of your a/r and inventory and your overall general financial health our ABL financing alternative is priced better than, equal to, or substantially higher .It would seem we have covered off all the bases!

Bottom line on ABL financing... it works, it’s an accepted alternative and if you find yourself suffering form that ' selective amnesia ' on the ' old days ' of business banking then barrel in to the new kid on the block. Speak to a trusted, credible, and experienced Canadian business financing advisor who can assist you in identifying the benefits of this great working capital facility.



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 . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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