Choose The Right Canadian Leasing Services and Financing Companies When You Lease Equipment !

Canadian Equipment Leasing Assistance – For Free!



Information on choosing the right equipment financing services and leasing companies in Canada . Maximize benefits when you lease equipment with a partner that meets your asset acquisition needs .




You know you want to. We're talking about dealing. Dealing? Don't panic, our topic is leasing and financing services from lease equipment companies in Canada. Choosing the right partner and type of lease is critical to asset acquisition strategies for Canadian business owners and financial managers.


You've chosen to lease equipment, rather than purchase it, for a variety of reasons. The lease vs. buy decision is a classic business decision that more often than not demonstrates the value of leasing financing. We're all heard the basics, the tax and accounting benefits, flexibility, ease of acquisition with respect to approval, etc, etc!

Of course when it comes to showing those lease obligations it’s getting harder and harder to mask the fact that at the end of the day lease obligations are still debt. Even recent international accounting rule changes have taken away some of the aspects of off balance sheet financing , but the reality is that operating leases still offer a significant technology hedge ( and a lower payment ) than the capital lease .. Or lease to own option.

When you are looking for the right lease equipment companies to deal with its critical to understand their product offering. Are they focused to small, medium or larger size transactions? Canadian business owners and financial managers don’t realize it, but it’s a very, repeat very small handful of firms that handle all sizes of transactions, from 5k to 5 Million, and we tell clients they can waste a lot of time dealing and negotiating with the wrong firm.

Your current advantage as a Canadian business owner or financial manager is that the leasing and financing services available to yourself are quite frankly... booming! The industry has returned to fairly good health after 2008 - 20009 and the industry is full of captive firms, independent commercial firms, bank leasing companies, all of which are a combo of Canadian owned or foreign owned in some cases.

So, is there a way to wade through the industry players and determine which firm is for you, based on your asset financing and services needs? That requires a lot of time, and some solid due diligence. Naturally a better way to address the challenge is to work with an industry expert, at no charge , to determine the best deal when it comes to rates, structures, types of lease you choose, and , today’s topic, who you deal with .

Other ways you can find the right lease equipment companies are of course through internet searches , referrals from a bank or trusted business friend, , etc.

We're quite frankly on the side of letting and expert do the work for you , someone who has the experience and industry and market knowledge to negotiate rates, terms, misc fees, and overalls structure with a focus on one goal - maximizing lease equipment services and benefits for your firm .

So, bottom line? It's not as hard as you think. Speak to a trusted, credible and experienced Canadian business financing advisor on maximizing leasing and financing services for your 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/lease_equipment_leasing_financing_companies.html

Profit From This Money Losing Strategy ! Finance Receivables At A Loss Via An Accounts Receivable Financing Loan

Try This Unique Business Financing Strategy


Information on accounts receivable financing in Canada and how an a/r finance loan facility for your receivables can turn a seeming money losing situation into profits and growth


Profit? From a money losing strategy? Before you question our sanity consider this ! Everyday thousands of firms in Canada are selling their receivables at a loss, they know it, and they still have chosen to tap into one of business financing Canada's best working capital and cash flow strategies, despite the cost and apparent loss!

We're talking about accounts receivable financing, and why those thousands of Canadian business owners and financial managers utilize an A/R finance loan (it’s not a loan per se) to fund their companies.

How many Canadian businesses have had their business credit lines pulled or reduced in last several years? We wouldn’t want to count. Getting that letter in the mail from their financial institution either seemed like a mistake, but more probably a shock.

Naturally there are a hundred reasons why their business credit lines were pulled/reduced. It could be external lawsuits against your firm, failing profits, your inability to produce timely financial statements, etc, etc. And believe us, we're not taking the side of Canadian chartered banks, which are among the best run in the world, the bottom line, and any well run financial institution certainly has its rules and policies... but.. bottom line, you need a new financing solution!

Our recommended potential solution. Lose money. But lets clarify - consdier an accounts receiving financing strategy . Your receivables are sold, as you generate them at a loss . A loss? But this loss is then turned around into a working capital and cash flow bonanza, as you now are in ability to be liquid, sell more, generate new profits previously unattainable, and yes, survive.

Receivable finance has been the savior of thousands of firms in Canada, from start up to even some of our larger corporations. While banks, credit unions and other firms have slowed down in commercial financing the receivable finance industry has stepped in to take its place.

So, some really key points. A/R financing is not a loan as we mentioned, your firm incurs no debt. The Canadian commercial receivable finance industry is generally unregulated - the A/R firms buy your receivables at a discount (hence ... your ' loss” and therefore provide you with unlimited working capital as your sales grow. In general it’s recommended your firm have stable or growing sales when this strategy is implemented.

So what about those ' losses ' and the cost. Quite frankly that’s where we spend most of our time with clients , explaining the concept of invoice discounting, or accounts receivable financing loan finance . Your A/R portfolio is financed by your A/R being sold at a discount - In Canada that discount is in the 2-3% range. That 2 -3% is the loss we've referred to. Simple example, you have an invoice for 10,000 - you receive 9800 dollars when you finance, or sell that invoice. You've just incurred a loss, in reality a financing expense.

But, consider this! Here's the essence of our message today, your firm no long has to wait 30-60, or 90 days for cash flow out of that invoice. You can also use the cash to take a 2% discount with your key supplier, and you might also give him a call and say you'd like a 5% price reduction as you are prepared to give them a cheque as soon as they deliver product to your door. You can also now take on that large order you previously were unable to compete with against competitors who have been taking all your business. And those are new incremental profits to your firm via that new business.

Hasn’t our money losing recommendation just turned into a mini profit machine for your firm? We think it has. So yes, your financing costs may double, but the benefits we think are very clear.

So, the bottom line? As usual, we're keeping it simple. Consider all the costs and financial implications of an accounts receivable financing strategy. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in putting together a facility to work 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/accounts_receivable_financing_loan_finance.html

Get Unstuck On Funding Your Management Buyout ! Financing A Canadian Leveraged Buy In Practically

Proposing A Management Buyout ?


Practical advice on funding a management buyout in Canada . Financing a Leveraged buy in via asset financing strategies .




Successfully engineering and completing the funding of a management buyout via a leveraged financing is a challenging issue for Canadian business people and financial managers who wish to complete a buy in financing to a company they are associated with.

Let’s examine some practical tips and strategies for getting ' unstuck ' on a transaction such as this.

The best ' tool ' you have in an LBO /MBO type deal is of course the seller’s financial statements. That's where it all begins. While year end statements are a must it goes without saying that interim financials help you piece together and complete the story as ' up to date '.

Purchasors and your financiers will want a proper representation of specific assets and liabilities on the balance sheet. Great care should be taken in qualifying key assets such as accounts receivable... from a simple point... are they collectible?!

Naturally there is no guarantee that any existing or future A/R item will in fact be collectible, and no one is going to guarantee that for you. Some solid credit checks on the quality of the A/R base is highly in order, as well as looking at historical payment trends of the client base. You also want to ensure there is no right of set off against the receivables, and it certainly not uncommon for us to see the A/R as often the largest asset on the balance sheet.

A great strategy for Purchasors contemplating a leveraged management buyout funding is to make some sort of agreement on the ability to ' rejig ' the final price subject to A/R collectibility. Naturally owners of the company might be reluctant to do that.

Is there anything trickier than ' inventory ' with respect to classifying quality and true value of inventory, which might of course be raw materials, work in process, or finished goods. Make a solid effort to quantify the quality of the inventory you are purchasing with respect to issues such as obsolescence.

Plant and equipment should always be appraised in some manner on funding a management buys in. This quite frankly protects all parties, and we urge clients to complete an appraisal that includes some component of fair market value, orderly liquidation value, and forced liquidation. Those numbers will vary significantly in any appraisal and play a key role in the way in which assets are financing in a real management buyout. It goes without saying of course that the purchaser should ultimately be comfortable with the quality and condition of the fixed assets on the balance sheet they are contemplating financing.

Don’t forget also to look any leases or contracts that might be in place via the current business owner. You will want to make sure these are assignable to yourself in the event of a completed sale.

In Canada you can complete a successful funding of a management buyout via an asset based lender, or a private equity firm. A great deal occurs when you have a company that is both profitable and has key assets that are financeable, i.e. the receivables, inventory and equipment we highlighted earlier. Speak to a trusted, credible and experienced Canadian business financing advisor for assistance in successfully completing you buy in via a leveraged funding.




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/funding_management_buyout_buy_in_leveraged.html

Heard About Canadian Government Business Loans? Why Lending Under The SBL Loan Is Right For Your New Or Existing Business.

Don’t Forget to Check Out The Gov’t Small Business Loan Program

Information on the ‘ SBL ‘ loan , and why government business loans are the perfect financing and lending vehicle for new or existing businesses in Canada.




Small is big... in fact it’s huge! We’re talking about small business in Canada, and as most business owners know the large majority of all businesses in Canada are in fact ' small '. Small is relative of course. But when as a whole they represent a huge portion of employment and commercial sales it’s about time we acknowledged it.

Government business loans are one way in which our key business segment, the SME sector is in fact acknowledged. Its lending specially constructed for the small business owner; a loan new or existing business that makes sense, and in fact has attractive terms.

The simple reason why the government SBL loan should be so attractive to yourself as a business owner is simply that boy is it hard to get the financing you need, in case you haven’t found that out already.

Yes many alternative finance choices have become more popular... financing such as receivable finance, P.O. finance, tax credit monetization, bridge loans on equipment, etc.. but without a doubt the ' big kahuna' of small business finance is still traditional government business loans.

Even though Canadian banks can, we feel, quite legitimately be called conservative lenders the hard fact is that the financing they put through the government SBL lending loans is actually guaranteed in large part by the Federal government.

To its credit INDUSTRY CANADA, the department that administers the program has stayed to the program. Through recent economic recessions, market turmoil, etc the program has remain unchanged. Unchanged? Well not truly correct, because in fact the program got better!

During the 2008-2009 financial worldwide debacle Canada actually increased the loan amount under the program by $ 100,000... going from 250k to 350k. And the personal guarantee that you are required to make under the program remained the same, only 25%. Try and get any other business financing without a 100% guarantee backed by you personally... its simply not available.

But it’s still a tough environment out there; you need knowledge on which bank to deal with (the banks administer and fund the program under the government rules and guidelines). Additionally you need ' BOY SCOUT EXPERTISE “ ... by that we mean the motto ' BE PREPARED' never sounded better as applicable to ensuring government new business loans are achieved in a timely manner, securing the funding you need.

Simply speaking, knowing the rules, and putting some basic common sense strategies toward those rules allow you to get approved, as well as receiving the loan you need via our vehicle, the SBL loans in Canada.

You can greatly improve your chances of getting a government business loan, aka the ' SBL ‘. Knowing what conditions will in fact not allow you to get the loan is valuable information.

Speak to a trusted, credible and experienced Canadian business financing advisor on getting a proposal and package in place that virtually guarantees you approval under the program if you have covered off some very basic pre-requisites. Government business loans may be the perfect solution to the financing you need - check the program out!



ABOUT THE AUTHOR - STAN PROKOP

7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING !


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

Your Antidote On How To Finance A Franchise Loan In Canada - Secrets of Franchise Financing Companies / Banks

Canadian Franchise Financing Tips and Info


Information on how to finance a franchise in Canada . What do you need to know about franchising companies and banks to successfully complete a loan / financing.




Entrepreneurs searching for their ' antidote ' to the question ' how to finance a franchise ' in Canada seek to unlock the secrets of banks and franchising companies in Canada. We think we have earned the right (via experience) to have learned and now share some of those tips, secrets, and strategies on successful franchise financing in Canada.

You're somewhat close to being successful already when you have chosen to purchase a franchise in Canada, simply because you're buying what is hopefully a proven business model that has a higher probability of success oftentimes than starting your own firm. And it’s a two way deal; because your franchisor needs you to be successful that is how they succeed themselves!

Canada also has solid franchise disclosure rules and regulations, which help protect the investment you are about to finance - and that’s a good thing!

Naturally the goal of your business is to be profitable, so significant care should be done around your investigation into the overall profitability model - remember also that those profits pay back your franchise loan / loans.

To finance a franchise in Canada, successfully, revolves around two key concepts: knowing your start up costs, and being able to assess ongoing working capital needs. The latter is sometimes forgotten or receives less attention, and that’s not good!

Assessing your start up costs and ongoing working capital and cash flow needs involves the financial portion of your business plan. It's not as hard as you think, it’s just a simple case of taking a basic spreadsheet and focusing on the inn’s (your projected sales)... and the outs... your expenses in each category. Those include rent, royalty payments, and a salary draw for yourself, your cost of goods ... etc. At the end of the day it’s highly desirable to have money left, aka ' profit'!

In Canada franchise loans are usually 5-7 year term long; occasionally they might be longer but certainly in our experience 5-7 is the norm.

There is a limited, in fact, only one full service franchising company in Canada that provides financing. They tend to be involved in larger national programs, and can assist with acquisition financing, refinancing of a current location, new builds, and in some cases real state if in fact that’s required. A very heavy focus is placed on traditional cash flow coverage. To non financial people we can simply explain that if your debt is 1 dollar in your business you have to be able to prove or demonstrate cash flow of around 1.25 ( a buffer is created ) to pay back the financing . Transactions from this firm tend to be larger in size.

But what about the hundreds of other firms out there who may not be aligned under such a program? Where do their franchisees go for help? Here is where it’s prudent to talk to two folks; one is a trusted, credible and experienced Canadian business financing advisor who has experience in franchise finance. The other is a guy name ' BILL ‘. Actually, that’s B I L, and it stands for a specialized loan program that perfectly suits what many franchisees are attempting to achieve in a solid franchising loan. It also have very attractive rates, terms an structures that even larger more established firms cant achieve, i.e. lower personal guarantees, no penalty to repay, etc.

So, bottom line. As usual its focus on a franchise model that makes sense and suits your experience. Be prepared for a reasonable equity investment on your part, and seek the services of either a very specialized franchising companies that focus on finance, or, even better, the help of an expert who can package a solution that suits your individual situation. Those are solid antidotes to the ' how to finance a franchise ' question!




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/how_to_finance_a_franchise_franchising_companies.html

Forget About A Traditional Finance Loan - Discover Why Canadian ABL Lending & Financing Loans Work.

Change Can Be Good In Canadian Business Financing !


Information on ABL Lending in Canada . Why asset based loan financing is a solid lending solution for a business line of credit finance facility . Asset based loans leverage assets for working capital .




We’re the first to admit ' change ' is one of the most difficult things to cope with sometime, both in our personal lives and in business. Hindsight becomes a great friend, and that’s why we use this analogy in talking today about ABL financing in Canada. When business owners and financial managers discover the true power of asset based lines of credit finance and lending in Canada their first reaction is ' where has this been all my ( business ) life!’

Let's examine some of the key differences, and benefits of asset-based loan financing in Canada, specifically the asset based line of credit revolving working capital facility. It seems simple... and also difficult to realize why this is different than traditional Canadian chartered bank financing. Because it’s simply a business line of credit financing facility secured by inventory and receivables. In many cases both equipment and real estate are added into our ' mix ', leveraging even more assets for working capital purposes.

So why do thousands of business owners utilize ABL loans (they are not loans per se ...more about that later)? The basic answer is that they cannot access this amount and type of credit elsewhere, predominantly at their bank.

So service firms, distribution companies, and companies that manufacture gravitate to this type of cash flow financing for the obvious reason - they can’t get financing elsewhere. In some cases clients have been asked to exit the bank and find themselves in ' Special Loan’ facilities - essentially a holding tank or purgatory for firms that have violated or cant meet bank ratios and covenants.

What size of facilities is available for asset based lines of credit in Canada? Small facilities start in the 250k range based on the overall size of your current assets, predominantly, as we said A/R and inventory. And from there? ABL financing loan facilities go up to the tens of millions of dollars, and some of the largest corporations in Canada have ' forgotten' about traditional bank lending and financing for credit lines, adopting the ABL model instead.

Oh yes... we had mentioned the term ' loans ‘. A true ABL facility is not new debt on our balance sheet; it’s not a term loan, its simply monetizing the current assets in to a revolving line of credit facility, that’s important to understand!

Start up firms in Canada can be financed by ABL lending, as can firms that have significant current operating and financial challenges... the one thing they do have, and need, is ' Assets ' to facilitate the type of lending we are talking about . That’s our other key take away point for clients, that the actual approval of such facilities is not, we repeat ' not ' dependent on balance sheet strength, profitability, or ratios and covenants. Even personal guarantees play a very small part in the approval of ABL facilities, or some of the subsets of this type of finance.

Naturally it helps when you are moving back to profitability via a plan that will work!

Our final point today on ABL loans is simply that it’s all about liquidity. Receivables are typically margined at 90% of your portfolio, and inventory is assessed on an individual basis, often ranging up to 70% in financing leverage.

So should you forgot everything you know about traditional finance business credit lines... maybe not a great idea, but we can assure you that you are missing out if you don’t consider the alternative ! Speak to a trusted, credible and experienced Canadian business financing advisor on the benefits of such a business 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 . 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/abl_loans_lending_finance_financing_loan.html

Practical and Surprising Methods for Working Capital And Cash Flow Financing For Operating Funds For Canadian Business Owners

Canadian Business Cash Flow Alternatives


Information on working capital and cash flow solutions for operating funds for Canadian business owners and financial managers.


It should be no secret that SME firms that make up the majority of the Canadian economy face the same challenges as some of our larger corporations. Their ability to manage and successfully solve working capital and operating cash flow issues for business probably seems more daunting due to perceived lack of options and the resources to put those solutions in place.

Let’s examine how to address some of those challenges, and where help might lie.

The flow of funds into and out of your business ultimately determines the cash flow needs. That need is driven out of the requirement for you to run your business, pay your bills, produce products and services, and then wait... and hope?! .. to get paid on time.

One of the dangers of cash flow management and use is that it is tempting to use your working capital for fixed asset purchases. That’s not recommended of course, and it’s more viable to look at other methods of asset finance such as equipment finance or term loans for assets required to run your business. In many cases existing assets can also be refinanced for working capital.

The logical solution for additional cash flow needs is of course a bank line of credit, which you can successfully negotiate if your financial statements and personal finances support that type of facility. In higher growth situations more alternative methods of capital rising can be considered - they include purchase order financing, inventory only finance facilities, or the monetization of your tax credits. These are clear options when banks or other lenders require you to put in additional funds into your firm that may not be available from your personal resources. We definitely are always urging clients to try and separate their personal finances from their business assets as that just seems common sense to us... isnt it one of the reasons incorporation exists in the first place?

We encourage business owners and financial mangers to obtain asset financing for their business. As noted, this can come from the alternative sources we mentioned, which also might include receivable financing outside the bank, a true asset based lending facility that monetizes A/R, inventory and equipment into a revolving line of credit, etc. These sort of facilities work perfectly if your firm can’t meet the stringent requirements of traditional cash flow covenants. Banks and institutional cash flow lenders thoroughly investigate your firm’s ability to make payments via ratios and covenants that identify cash flow coverage and debt to equity ratios. If you can meet them... great... if you can’t... consider our alternatives .

Always focus on breaking down short term and long term needs. Short term really focuses solely around your A/R and inventory build up while long term debt is repaid via regular term payments over a long period of time

Our asset based line of credit solution that we referred to above is the optimal solution for asset based working capital and cash flow finance. Receivables are finance dup to 90% of your total A/R, and if your inventory can be fairly easily solid it can also be margined.

If your company is a bit larger towards the high end of the SME sector there are some great hybrid solutions such as mezzanine and subordinated debt solutions. You pay a higher rate for this type of financing, typically in the teens, from a rate point of view, but it is ultimately cheaper than selling permanent equity, particularly if you are bullish on your long term prospects.

Oh, and by the way, the most common sense solution to working capital and cash flow is simply prudent management of those current assets. Keep your profits in your firm, negotiate better terms with suppliers, and strive on a daily basis to reduce A/R and inventory levels. You've just become the savior of your own firm!

Speak to a trusted, credible and experienced Canadian business financing advisor on operating working capital and cash flow solutions for your business - there are more alternatives than you might be aware of!




ABOUT THE AUTHOR - STAN PROKOP

7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING !


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