Which Equipment Leasing And Lease Finance Options Suits Your Firm For Canadian Asset Financing? Does a Loan Make Sense?

Make The Right Asset Acquisition Decision

Information on equipment leasing in Canada . Canadian business owners have two lease finance choices when utilizing asset financing lease and loan strategies .




Did you hear the one about the Canadian business owner and financial manager who couldn't make a decision when it came to equipment leasing and lease finance options. Actually, we're quite sure that same conundrum faces hundreds, perhaps thousands of business owners in Canada when it comes to selecting an asset financing strategy that works... especially for their needs.

Let's examine some of those options and help you out in two clear phases of business financing decisions - the lease or buy decision, and of course picking the right lease finance option if in fact you have made that decision to move forward with one of Canada's most popular financing strategies.

So, lease..? Buy? Which one works for you? A good rule of thumb is to first consider what we can call the useful life of the asset when facing that decision. An even better rule of thumb is to think of purchasing outright if you have a strong level of confidence that the asset will last beyond a typical financing term. In Canada equipment leasing terms, (aka amortizations) are typically 2 to 5 years. (Make that 20 years if you are purchasing a corporate jet, but that isn’t really an everyday purchase!)

So that’s the ' buy ' decision. What factors can impact your decision to purse a lease finance strategy. Here our rule again is somewhat common sense oriented (we love common sense). If you think you wont use the equipment for the after a typical financing term, or if you think it might needed to have an upgrade or an add on then certainly consider an asset financing option via equipment finance leases.

Naturally there are advantages to each of our two lease and buy options. Let’s examine buying first. Purchase decisions, if done via a loan option, typically have blended payments of principal and interest and are simply spread over the life of a loan.

Although loan financing can in some cases be on a 100% basis you typically might be expected to make a down payment, in certain cases sizeable. That down payment of course lowers your monthly loan payment amount. Purchasing an asset outright, or using a term loan keeps the asset on your balance sheet, enhancing your overall fixed asset based. In many cases you can take advantage of depreciation and tax scenarios to enhance the ownership of an asset.

Lease financing. The benefits are somewhat ' classic ' in nature. In the majority of cases the asset is 100% financeable, with down payments being minimal. You have just completed a great obsolescence hedge, especially when acquiring tech type assets - think computers, servers, cloud financing, etc.
Don’t let the lease or buy decision confuse your asset acquisition strategies. Speak to a trusted credible and experience Canadian business financing advisor who can assist you with your business finance needs.




About the Author: Stan Prokop - 7 Park Avenue Financial


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

Start Up To Established Company – Who Qualifies for The Canadian SBL Government Loan - A Great Business Loan For Your Firm

Everything You Need To Know Re: SBL Financing


Informatiion on the Canadian SBL government loan program . Who qualifies and how to successful utilize this financing for your start up or established business . Business Loans For Your Firm.



Government ... Business Financing ... those two terms shouldn’t raise fear and apprehension in the minds of our clients. But... guess what? They often do! And that means they might be unable to access the Canadian government loan. SBL loans are quite simply, in our opinion, the absolute best method of financing your start up or small business venture .And the word ' small ' is relative, as our program pertains to businesses with revenues under 5 Million dollars. That’s not chump change, right??!

Canadian business owners looking to either start a business or expand their current business spend a lot of time seeking financing to complement those two goals. Ironically the one entity they often think can't or won't help or assist them in fact is the only entity that is set up to absolutely help them. Why, because it's actually Canadian chartered banks that take the hand off from Industry Canada to approve and administer the BIL/CSBF program in Canada. We'll keep things simple and refer to it as the SBL loan!



So who qualifies for these loans, financing things such as equipment, leaseholds, software, etc? Canadian citizens or those legally allowed to borrow in Canada are eligible to receive such financing. Naturally you can not have defaulted on a loan in the past, and you must be up to date with your income tax filings and any balances owing Canada Revenue Agency. That makes sense , doesn't it - receiving an SBL loan from the government and being in good standing with them re your personal tax filings, etc.

As we said, it’s the banks and a few other select institutions that administer and fund the government loan program. Over 7000 businesses just like yours received funding in the 2010 timeframe as an example.

So do banks ' like ' the program and recommend or steer clients toward the program. We have got our own opinions on that. While the government guarantees the majority of the loan to the bank we find that many bankers aren’t either fully up to speed with the loan approval process... and, heaven forbid...they feel it is ' a lot of paperwork '. Good commercial and small business bankers in Canada ( yes , they exist, trust us on that one please ) view SBL loans as a way to help you achieve business financing for a start up or relatively new business when they otherwise might be constrained to help you within normal bank confines .

The government loan program caps out at 500,000.00 for real estate, and 350,000.00 for equipment, leaseholds, software, etc. Loans are pegged to 3% over the current Canadian prime rate. Each loan is adjudicated for approval under the exact guidelines of the program.

We spoke earlier of clients having a fear of properly dealing with government, a business financing process, etc. Can that be avoided? It sure can. Seek an expert such as a trusted, credible and experienced Canadian business financing advisor who can literally fast track you through the entire process within a matter of days, with your co operation of course. Unlock the power of SBL loans to realize your business potential.





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/government_loan_sbl_loans_start_up.html

Looking For Business Financing For A Franchise ? Here’s How Franchising Financing Companies Work

Here’s How The Last Guy Financed His Franchise In Canada

Information on business financing for a franchise in Canada . What types of franchising finance companies can help you complete your purchase and how are most franchises financed in the Canadian marketplace.



It's often always about ' the other guy '. How did he, or she, get their franchise financed and completed so successfully? Let's examine business financing for a franchise in Canada. How do franchise financing companies or other institutions assist franchisees such as yourself to be successful in acquiring and growing a business?

It's of course ' the money ' i.e. the financing that is often the stumbling block to self employment, owning your own business, and financial success. And if you feel you are on 'the outside ' of business financing in Canada we can only assume that roadblock is quite formidable.

That’s when clients we talk to are quickly surprise that just a few key basics immediately puts you ' in the game ' with respect to completing a business franchise acquisition . A good place to start is ensuring you have a respectable personal credit history - it is pretty close to impossible for you to complete a franchise acquisition without being able to demonstrate that you have managed your own personal finances successfully.

At this point you only need two other things to be successful, the ability to prepare and present a finance proposal that makes sense, and, secondly, to ensure that proposal is in front of the right person.

The right person? That often is one of the biggest challenges faced by Canadian entrepreneurs looking for companies and organizations that offer true business financing for a franchise. In Canada there are only one or two specialized franchise finance firms that offer full service franchise financing. Those services might include acquiring a new franchise, refinancing a current business, acquiring real estate for the actual franchise, and of course financing equipment and potentially leaseholds to complete a purchase.

Thousands of entrepreneurs just like yourself seem to think that the Canadian chartered banks don’t fully support the financing of a new franchise. They are 100% right and 100% wrong! That's because the banks in Canada are the facilitators of the Government of Canada Small Business Loan. Over the years this business financing has been found to perfectly suit franchisee's such as yourself who are looking to acquire a new or existing franchise.

But why is the Government program so successful. 3 reasons. Great rates, terms and structures. Although the program is capped at 350,000.00 that amount certainly covers 90% of the franchises we see from a viewpoint of financing to a turnkey situation. Terms are typically 5-7 years, personal guarantees are nominal, and the best part, rates are very competitive.

To successfully complete business financing for a franchise, via an independent finance firm or the government program you need a clear business and financial plan. An experienced Canadian business financing advisor familiar with franchises can complete that for you quickly, and at a low cost. It’s a clear recap of you, the business, and the financial potential.

Franchisee's in Canada cant escape having to put their own investment into the business - that can range from 10-40% depending on a couple of key factors such as asset mix, size of transaction, and the proper execution of some clear financial projections .

Speak to a trusted, credible and experienced Canadian business financing advisor on the proper method to achieve franchise financing success. Do your homework, be properly prepared with your proposal, and get on track to independent business ownership via the franchise model in Canada.


About the Author - Stan Prokop
Canadian Business Financing
http://www.7parkavenuefinancial.com

Why A Canadian ABL Business Credit Line Is Your New Plan B For A Cash Flow Facility

Canadian Business Financing – Doing It Right The Second Time!



Information on why the ABL business credit line facility for cash flow and daily working capital needs if revitalizing Canadian business financing and providing a solid alternative to traditional financing .




Fortunately, or perhaps unfortunately .. most business owners and financial managers in Canada are familiar with Plan B. Thats the alternative when Plan A didn’t work! That's why we think this is an excellent analogy for consideration of an ABL business credit line for your daily operating line of credit and cash flow facility.

Frankly, things have never been hotter in the asset based finance industry ; ABL financing and its subsets ( receivable financing only, equipment financing only ) provide significantly more amounts of liquidity when they are benchmarked against their PLAN A competitor, Canada's chartered banks.

So how is this achieved, when both solutions, the asset based line of credit and the traditional commercial bank line of credit strives to do the same thing? It’s simple. Increased borrowing leverage on your assets .Typically this is 90% of your receivables, (not 75% you are getting now) and market value leverage on inventories based on raw materials, work in process and finished goods margins.

The other factor in PLAN B's success is simply that these facilities grow as your business grows, pretty well automatically, as the entire premise of and ABL cash flow business credit line facility is based on the business credit line growing lock step with your sales and assets. The bottom line - the financing decision is made on your sales and assets, not the overall strength and structure of your balance sheet and income statement.

Surprising to many, but not to us, is that some of the largest corporations in Canada are utilizing this type of financing, abandoning commercial bank credit facilities in the process. We don’t make any bones about it - if your firm feels its being served well by a commercial bank revolver borrowing facility then by all means stay with that low cost solution. If that isn’t the case, well you know the drill... consider PLAN B!

Let's also spend a minute on cost of ABL cash flow business lines of credit. We hate to sound wishy washy but rates are better than, equal to, or more costly than bank facilities. That kind of covers the bases, right? We simply mean to say that depending on the size of your facility, where your company is at in terms of success and failure, and most importantly, who you deal with ultimately determines your cost structure on an asset based line of credit.

The other interesting note to make about our PLAN B solution is that while we're specifically talking about an ABL as just a business credit line the reality is that it can be used for a management buy out, leveraged buy out, acquiring a competitor, etc. That’s true flexibility.

So why isn’t this type of business financing in Canada more well known? We ponder that pretty well every day. Part of the problem is that the actual players in the industry are limited, some are foreign owned, and some are highly specialized in deal size, industry appetite, etc. But we can assure you an ABL cash flow lender exists in Canada that is suited to your needs.

Current economic challenges in Canada and the world for that matter place a tremendous strain on business capital liquidity. Speak to a trusted, credible and experienced Canadian business financing advisor on why PLAN B can help your firm survive, and grow!



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_credit_line_abl_cash_flow.html

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