Can A Financing Receivables Strategy Save Your Company ! A Perfect Solution Via Business Finance Companies ?

Why Confidential Invoice Discounting Works Best


Information on financing receivables in Canada via business finance companies . Let a Confidential factoring solution save and grow your business!




Survival. Growth. Are they different concepts? Business financing in Canada addresses of course both those basics. And one type of financing, the financing receivables offered by business finance companies seems to address both those issues very well thank you, in the SME sector. Let's examine how that works, what are some of the key benefits, and if in fact one optimal solution exists with this type of financing.

Clients we talk to are often frustrated in their attempts to achieve cash flow and working capital financing in an efficient, simple matter. They are looking for both flexibility, and speed in closing a solution - unfortunately they don’t always find it.

Receivables financing fits somewhat perfectly into solving the desires of Canadian business owners and financial managers. However the array of types of business finance companies that offer that solution, and how that solution is delivered can sometimes be confusing to clients.

So, the basics... a receivable finance (aka invoice discounting/factoring) facility is the sale, on a one of, or ongoing basis of your billed receivables. That sale allows you to receive cash, in advance of course, of the collection of that receivable. We've been watching the age of Canadian business receivables get older and older of the years and while the norm ' in the old days' used to be 30 the new norm is of 60-90 days... unfortuantely!

Clients are always asking when the correct time to consider such a facility is. Some key factors that will help them achieve both survival and growth are as follows - double digit growth in sales, requests from customers for extended terms, pressure from suppliers for accelerated payments from your firm, etc. Any or all of those points can come together in a final decision to include a receivables financing strategy into your survival equation.

So if in fact you made that decision can you expect to receive benefits that are tangible and offset the cost of this financing, which is very typically higher than bank finance rates? The answer is ' yes '!

Key benefits include the ability to achieve higher revenues due to the working capital infusion you have just arranged. Your cash flow now becomes very predictable given that you receive funds as you generate sales - a lot of the seasonality and bulges around your business ups and downs disappears. And, contrary to what some clients believe, you're not borrowing funds and incurring debt, you are simply monetizing the left side of your balance sheet. Your A/R account simple reads ' cash on hand'! and that’s a good thing.

So what about the cost of this financing? In Canada it’s typically between 2-3% per month. That cost can be offset in a number of manners. The challenge we see clients face is in the way in which financing receivables in Canada is in fact presented by business finance companies. Rarely is the fee represented in a one time clear explanation - its masked with various miscellaneous issues.

Is there one type of facility that we recommend as optimal to clients? There is. It’s a confidential working capital/factoring financing that allows you to bill and collect your own receivables. You maintain the benefits of this type of financing, while being in control of your own destiny, and that growth and survival we spoke of!

Speak to a trusted, credible and experienced Canadian business financing advisor who can help you steer your way through the myriad of offerings in the Canadian business space.





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/financing_receivables_business_finance_companies.html

Which Of The 3 Asset Financing Structures Works For Your Firm ? Right Choices With Equipment Leasing Companies in Canada

Types of Lease Financing In Canada



Information on asset finance structures available to Canadian business owners via equipment leasing companies . Picking the right structure is crucial to lease finance success.



Making the decision to utilize equipment leasing companies for asset financing might involve a decision you may not have properly considered... and it’s an important one... Which type of lease best suits your needs on this particular transaction?

Canadian business owners and financial managers essentially have 3 choices when it comes to matching up their asset finance acquisition to the right type of structure, and that includes the accounting and tax treatment also. Let’s examine those 3 choices and ensure you are properly positioning the financing of that asset.

The ' Go To' transaction that most business owners consider when they start to work with equipment leasing companies in Canada is the ' finance lease ‘... aka the ' capital lease ‘ ...and a final aka .. The ' lease to own'. Choosing this first of our three choices has you focusing on one thing, owning the asset at the end of the lease term.

The key factors that you need to consider under this type of transaction are the interest rate, what you will do with the asset at the end of the lease term, and any accounting and tax considerations that might come into play based on the asset you are financing as well as the size of the transaction.

We always caution clients that if it is their true intention to own and keep that asset that they double ensure that equipment leasing companies don't structure the asset as being the properly of the lessor at the end of the lease . Naturally they don’t want to own and use the asset, but they do want to try to re lease it to you or sell it to you... after you have paid for it in full once already!

Interest rates are a key part of the transaction in any equipment lease deal. There are 5 elements in any lease pricing transaction - term, rate, and payment, value of the deal, and future value at end of term. If you know 4 of those any simple financing calculator will allow you to calculate the missing piece of the puzzle.

2nd type of lease. It’s an operating or fair market value asset finance transaction. While it’s a favorite of our clients it’s important to ensure you level the playing field with equipment leasing companies in Canada that offer this type of transaction. The operating lease is all about one thing, flexibility.

So, properly structured you have just entered into lease finance nirvana when you consider a fair market value lease transaction. Why? Simply because at the end of the lease term you have the option to purchase, return, or upgrade and extend the transaction. Operating leases are perfectly suited to technology and heavy equipment type transactions, due in part to the size and use of the asset.

Our third and final type of lease is not necessarily a lease type per se... it's the sale leaseback .Typically structured as a capital lease, but not necessarily, you are selling he asst back to the leasing company. Your key benefit - cash flow and working capital on an asset that otherwise was only sitting there! Almost all types of real properly assets can be financed back under a sale leaseback type scenario. On alternative to the sale leaseback that is shorter in nature is to consider a bridge loan as opposed to entering into a finance transaction with equipment leasing companies.

The bottom line? As always, its stay informed and gets the right advice on which type of asset finance transaction structure works best for your firm. Speak to a trusted, credible and experienced Canadian business financing advisor on which structure maximizes the benefits for your company.




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/asset_finance_equipment_leasing_companies.html

What Are The Options For Short Term Financing And Bridge Loans In Canada ? Specialized Financing Can Help

Temporary Financing Strategies That Can Help Canadian Companies


Information on short term financing techniques and options in Canada. How specialized bridge loans can help your firm today .



Many Canadian firms require specialized financing that might best be described as ' outside the box ' requirements. Short term financing, such as bridge loans, solve immediate problems for Canadian business owners and financial managers.

So who are the firms that provide this type of financing? It clearly is not the government or Canadian chartered banks, so it’s often a challenge for thousands of small and mid market firms to locate specialized financing.

We supposed you might be able to call the government BIL/CSBF program specialized finance, but it is certainly not short term in nature... in effect its a term loan with significant government guarantees to the financial institution providing that financing. So while the guarantee is highly prized by the bank this clearly is not a specialized finance program that meets the needs of a short term financing.

It seems sometimes ironic, but firms that are significantly challenged from a financial perspective are actually the candidates for specialized finance such as debtor in possession financing (D I P) which allows a firm to operate while in the process of filing a bankruptcy proposal to creditors. Naturally the intent of this financing is to emerge as a new invigorated entity.

Essentially the financing takes a security in excess of the current secured creditors - it goes without saying a strong case must be made at this time for survival and re emergence.

So how can you release cash flow and working capital in a short term emergency type situation with existing unencumbered assets? The answer is of course a sale leaseback scenario. Under this strategy you essentially sell and release the assets to your lender. You are basically capitalizing on the investment you have made in fixed assets capital over the years, in effect monetizing that asset.

The good news here is that all types of assets can be refinancing under a short term financing / bridge loans strategy. That includes computing assets, construction equpment, manufacturing assets, printing equipment, and rolling stock.

Company real estate can of course be monetized in the same fashion as above , allowing you to extract anywhere from 30-75% of the value of a proper appraisal of your properly .

Short term financing needs are often required by firms who are in the process of exiting traditional bank financing, perhaps after they have been place in ' Special Loans’. In effect the bank relationship is over.

A multitude of solutions are available to your firm under bridge loans. This might include a comprehensive asset based line of credit encompassing inventory l equipment and receivables, or subsets of that finance such as receivable financing, purchase order financing, or the monetization of a government tax credit such as ' SRED '.


Short term financing in Canada is specialized... niche financing. It requires speed, efficiency, expertise in cost and structuring, etc. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in matters of bridge loans and specialized 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/short_term_financing_bridge_loans_specialized.html

Overcoming Canadian Movie & Digital Media Finance Challenges – Let Film Tax Credit Financing Be the Final Piece of the Puzzle!

Use Canadian Tax Credits For Film, Tv and Digital Media to Maximize Production ( or co-production ) Success


Information on film tax credit financing in Canada and how the monetization of your movie television, or digital media tax credit can enhance your production finance strategy .



Looking for one of the biggest understatements in town? How's this ... Financing movie, television and digital media productions is a challenge. Can you beat that one?!

Rather than talk about the challenges, clients tell us they want solutions! No surprise there. So let’s talk about one of the most obvious solutions - utilizing film tax credits for your projects in movies, TV and digital media.

Canada continue to be the beneficiary of what many industry pundits call ' Runaway ‘productions ... simply speaking ... they are shown all over the world but made and financed here in Canada for some great reasons.

Film tax credits reduce the cost of your project. It's as simple as that. Call it a government subsidy, call it a non repayable grant, but call it! There are a number of factors that make Canada a great place to product and finance your production - our focus today is the film tax credit but clearly things like foreign exchange, our geography, skilled media labour... etc all fall into place with respect to Canada's current success .

It’s quite obvious that film tax credit financing in movie, TV and digital media has played a large part in the growth of the industry, aka ' Hollywood North. In the real Hollywood, aka California there is even a movement afoot to abolish film tax credit s.

So why are these tax credits available? Simply because the combined federal and provincial government authorities have made a long term commitment to the industry... they might call it strategic... we're just grateful.

Film tax credits are available in 9 out of the ten Canadian provinces. New Brunswick, one of Canada's ten provinces is phasing out the credit.

Unlike the U.S. the Canadian structure and types of credits do not vary significantly... they vary somewhat but we wont quibble about a few per cent here and there. The bottom line is that the Canadian film tax credit is non repayable, and generous.

In British Columbia alone the film TV and digital media industry is a solid 1 Billion dollars of the gross provincial economy. Naturally the better known centres of production in Canada are Vancouver, Toronto, and Montreal. Using Vancouver as an example the B.C. tax credits reimburse over 35% of your labour cost. Productions that qualify for Can Con (Canadian content) receive 25% of labour costs from the federal portion of the tax credit. Over 200 Millions dollars has been awarded in recent times.

Ontario as an example has a 20% computer animation and special effects tax credit and a 40% interactive digital media credit.

We hate to be called ' game players ' but guess what, digital media tax credit financing is growing, and quickly. The industry is predicted to grow 20% a year for the next few years! Canada is the third largest digital media and game producer of talent in the industry. Financing of the Digital Media Tax Credit is a key factor in the growth of the industry.

The maximum tax credit for film and TV in Quebec is 65%!

One key element of the industry that is growing rapidly is the digital animation and special effects via interactive digital media content.

Another noteworthy trend is that European and Canadian co productions are growing. Many U.S. and European producers find funding in Canada to round out the financing of their projects.

As independent film productions continue to grow... in budget size! it of course makes more sense to use the generous Canadian film tax credits. England, France and Germany have long had co production treaties with Canada. Producers are well encourage to further investigate co production treaties in place, allowing them to access valuable an solid Canadian funding for their project via the film tax credit .


Bottom line; consider both investigating and financing your film tax credit and digital media credits. Financing can be achieved via a financing of your approved credit, or in many cases an accrual type of financing can be utilized to accelerate the cash flow during production of your project. And in our experience that tax credit financing enhances your ability to complete the debt and equity portions of your project. Speak to a trusted, credible and experienced Canadian business financing advisor for tax credit finance assistance... 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/film_tax_credit_financing_movie_digital_media.html

5 Questions – 5 Answers On The Canadian Government Loan Small Business Program – SBL Funding

Financing With The Government Small Business Loan In Canada


Information on the Canada Government Small Business Loan Program – SBL Funding Helps Thousands Of Businesses Like Yours





The Canadian Small Business Loan Program, commonly called the SBL Loan provides funding for thousands (over 7000 firms in 2010) of Canadian businesses just like yours. The program has been in existence for many of years and yet still many Canadian business owners and financial managers like you still have sometimes not even heard of the program!

Contrary to popular opinion these loans do not require a tremendous amount of time or effort and you are not dealing with a faceless government employee, as some might think.

Industry Canada, which sponsors the program grants Canadian chartered banks the authority to underwrite and approve loans and financing under the program. If you qualify, and know what and how to do things, you can receive approval for the loan within 48 hours.

Given the current economic challenges in Canada it clearly is refreshing news that Canadian business owners, from start up to established firms can receive financing up to $ 500,000.00 under the program. The Canadian banks are chartered to look out for the programs interest of course, but at the end of the day don’t forget the main goal - facilitation your access to credit a capital that you might not otherwise secure.

There isn’t a day when we don't receive questions from clients about the program, everything from basic questions to issues that confuse the Canadian business owner about the program. Lets over off 5 of those questions, then consider yourself well informed about the SBL small business government loan program, funding on great terms, for your company.

Question 1- What type of loan is available? The answer to that is pretty simply, the program covers financing for real estate, equipment, leaseholds, computer software. What it doesn’t cover, which is typically what many clients are looking for, is funding of operating assets such as cash, inventory, and receivables. These assets are used to expand your business and provide financing at rates, terms and structures you might likewise not be able to achieve. Don’t forget this includes start ups also!
Question # 2 - Qualifications. The qualifications are simple. Business owners must have a decent personal credit history, a business address or location, a down payment of minimum 10% on assets financed, and a business plan that makes sense. Certain financial ratios must work re debt and opening working capital.

Third Question - Down payment, equity. The basic story is that you must have a minimum of 10% down on all financings, but to satisfy some of the bank guidelines you must have anywhere from 30% down to ensure opening working capital and debt to equity make sense for the custodians of the program .. The bank.

Questions # 4 - The approval process! How does it work?? The bottom line is that it’s not as complicated as you think. This is a great time to work with an experienced business advisor on ensuring you have a crisp plan that satisfied the program basics. Some standard business documentation back up - articles of incorporation, cash flow, owner net worth statement, etc should allow you to ensure that an approval is received in a matter of days. Not exactly what you associate with a government program... right?!

Final question - How does the Small business government loan program, i.e. SBL funding differ from normal financing. Its simple, the government is guaranteeing a huge portion of the loan to your bank. No personal collateral is required, and unlike most Canadian financing your personal guarantee is limited to only 25% of your financing. Terms are anywhere up to 7 years, and rates are comparable to what the big boys get.

The bottom line, the SBL program is probably a lot more user friendly than you think. If you work with a trusted, credible and experienced Canadian business financing advisor you can use this financing to meet the growth needs of your business, from start up to established firm.




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/small_business_program_government_loan_funding_sbl.html

Financing A Franchise Business Purchase Loan In An Economic Downturn ? Canadian Franchising Loans Explained !

Don’t Let Economic Bad Times Deter Your Franchise Purchase

Information on financing a franchise business purchase in Canada . What type of loan / loans and finance facilities make your franchise work!



The right approach. That's definitely what it takes to finance a franchise business purchase in somewhat challenging economic times.

The majority of aspiring franchisees in Canada look to banks and specialized finance firms when investigating the purchase of a new or existing franchise business. Let's investigate successful criteria and methods for completing the purchase of such a business.

Do Canadian banks finance a franchise? That naturally is the instinctive first ' go to ' when it comes to the entrepreneur’s choice of completing a business purchase in the franchise industry. Broadly speaking they don’t specifically finance franchises outside of specialize government or franchisor programs.

If you have a stellar personal net worth and credit rating we suppose that many banks would consider some sort of term loan based on collateralizing your personal assets... that naturally is not our recommendd strategy, as we hav always felt its important to separate your business and persoanl life when it comes to finances.

Jut how important is your personal credit history as well as your overall financial profile... what the finance folks call you personal net worth - simply speaking ' what you have ' and ' what you owe'! We assure clients that a strong emphasis is placed on your personal credit and business background - typically you would want a ' beacon score ' at the credit bureau to be in excess of 650.

If you do choose to secure a franchise with personal assets you'll be asked to provide collateral such as a home mortgage, etc. Again, as we said that’s not our recommended strategy.

So if the banks don’t finance franchises in Canada who does. Are you ready? Banks! What do we mean by that seeming contradiction? Simply that the majority of franchises in Canada are financed by the banks, but via vehicle known as the BIL/CSBF loan. It’s a program run by the federal government which many banks have adopted as a solid vehicle to finance franchises in Canada.

The basics of the program lend themselves pretty perfectly to financing a franchise business purchase, and the structure of these loans fits what you are trying to achieve. Why? Simply because terms of the loan are from 5-7 years, rates are commensurate with many other types of business financing, with the ' kicker' being that you only are required to guarantee 25% of the loan.

Will a franchisor step in to help you finance your business? That’s a question we get a lot, and the answer generally is ' NO ‘. In a number of cases though franchisors have worked out packages that can more easily facilitate the bank completing a financing. This tends to work with larger brands and larger business acquisitions in franchising. The bottom lone, don’t expect internal financing from your franchisor.

Other key aspects of successfully finance a franchise in a downturn are common sense business elements - a solid business plan, locating a banker of financial advisor that is experienced in franchise loans, and aligning yourself with a successful franchisor based on your own personal and business background .

Speak to a trusted credible and experienced Canadian business financing advisor on how you to can finance a business purchase in challenging times.



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/financing_a_franchise_business_purchase_loan_loans.html

Seriously , Can An Asset Based Line Of Credit Loan Facility Meet Your Canadian Financing Needs ? Yes , ABL Finance Works !

Why One Type Of Business Financing Is Starting To Dominate Commercial Borrowing In Canada



Information on how an asset based line of credit loan facility provides financing and capital for Canadian business lending needs and requirements .



We've often said that no one type of business financing in Canada has the ability to meet pretty well all of your growth and survival needs. That might not be true all the time in the context of an asset based line of credit loan facility.

ABL facilities are somewhat of a hybrid type of facility, and for that reason this type of commercial business finance lending actually does, in many cases, suit all of your financing needs. Let's examine how.

Part of the appeal of ABL asset based lines of credit is simply that unlike many forms of commercial business financing it is accessible by smaller firms, large corporations, start ups, and firms who sometimes find themselves in serious financial difficulties. We think we've covered the bases on that one!

Typical considerations for entering into an ABL facility revolve around being unable to qualify for what many dub as ' traditional lending ‘... In Canada that traditional lending comes via our chartered banking system.

So just exactly how does your firm move forward in considering an asset based line of credit loan financing? And, ready for a positive surprise? Asset based lending has total flexibi8lity around structure, term, pricing, and 99% of the time comes with less covenants and ratio restrictions required by our chartered banking system.

Is there a typical profile of a Canadian business looking for an alternative to a business line of credit? The immediate thought that comes to mind is simply your firm’s current inability to achieve the financing you need from a bank. Typically this means your profits and losses have fluctuated, or there are some balance sheet issues that simply have for firm temporarily under water, so to speak, re: the ability to qualify for a commercial bank business line of credit.

We also meet with many clients who have secured favorable credit facilities from a bank or commercial credit union, but they are unable to tap into, or leverage assets anymore than current limits prescribed by the bank. Typical working capital advances for receivables by a bank are 75% ...while ABL lending more often than not comes in at 90%... so right away you are up 15% in over all liquidity.

And we haven’t even started, because many firms who find the inventory component of their business difficult to finance are often surprised that inventory advances in an ABL facility can run from 30-70%... sometimes more, sometimes less.

So why can an ABL lender offer this type of financing when bank sometimes cannot? It's a good question many clients ask right out of the gate. ABL lenders tend to be unregulated institutions; therefore simply speaking heir capital comes from different places and different pricing. They re not bound by capital and conservative lending practices that our Canadian banks are so well known form.

While our banks are some of the strongest and well run on the planet the other side of the coin in this statement suggest a more prudent lending to commercial borrowers. That’s where the ABL advantage comes in. Asset lender turns your day to day assets, i.e. A/R, equpment, and inventory into a revolving line of credit that significantly leverages up your ability to borrow.

Simply speaking, it’s all about the assets, not the ratios! Another way we explain it to clients is simply that the bank in general is looking more at your financials... an asset based line of credit loan financing is looking more at your assets .

Pricing for this type of financing varies significantly. The simple explanation on pricing is that the size of your facility, the quality of your assets, and the type of firm you are dealing with dictate ultimate pricing. In many cases pricing is equivalent to the bank, however more often than not its more expensive, but, and its a key point... you have more liquidity and working capital on an ongoing basis, growing lock step with your needs.

Speak to a trusted credible and experienced Canadian business financing advisor who, seriously! can demonstrate to you the benefits of an ABL facility for your Canadian company.




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/asset_based_line_of_credit_loan_lending_financing.html