Understanding The Canadian Government Business Loan - Federal SBL Loans Work For New & Existing Businesses

The Canada Small Business Loan Program – Yours To Discover!

Information on the government business loan program in Canada. How the federal SBL financing program loans for your new and existing business makes you eligible for $ 350,000.00 in financing for your new or existing business.





As some , certainly not all ( that’s why we're here) Canadian business owners know the federal government has a long standing and very successful business financing program , aka the ' government business loan '. It’s a federal program in Canada, sponsored by INDUSTRY CANADA, and it is probably suited for your new or existing small (New or under 5,000,000.00$ in revenue) business capital needs.

There's just one problem we’ve perceived over the years. Simply that understanding how the program works, and how you get approved seems to be a mystery to a lot of the clients we meet looking for this type of financing.

Let’s examine some of the key underpinnings of the program, focusing on what this great financing program does, and, more importantly, how you get approved.

First of all, talk about a great partner for your loan. Have you ever needed a co signer? Here's one for you, the government of Canada! We heard their credit is excellent! What we mean of course, when we speak to clients about the program is that the government guarantees the majority of your loan to the bank that underwrites and administers your financing. Talk about a good deal. And you thought you might have to ask your brother in law!

Naturally it goes without saying that this incents the banks and some other institutions that offer the loan to provide your firm with financing that you might not otherwise be able to achieve in a normal traditional financing request.

So we all agree it’s a challenging business financing environment out there. So how can government business loans help your firm?

First of all they finance only 3 things, and that always seems to be a mystery to clients who think the program is a cash or working capital loan. It is not! The three items that the program finances are equipment, leasehold improvements, and real estate. Under the equipment category many of our clients choose to also finance software, which is allowed under the program. And by the way, that’s application software, not software you are going to develop yourself.


So how does a business owner navigate, successfully, the program? We assure clients that you can almost assuredly guarantee yourself approval by following a very specific course of action. There are numerous conditions that can negatively affect your chances of approval, and if you know them you can avoid them.

It’s quite frankly all about your proposal, how it’s presented, to whom its presented, and ensuring you have the basics covered. Those basics are as follows - a minimum 10% equity investment in the financing, reasonable personal credit, a business finance plan that clearly identifies you, your business, and some financial projections that make sense relative to the loan amount you are requesting.

So, the bottom line, you can make understanding the Canadian government small business loan complicated, or easy. We're for easy, so if you want some practical direction in getting a small business loan up to 350,000.00 in place speak to a trusted, credible and experienced Canadian business financing advisor on the positive expectation of an SBL loan approval.



ABOUT THE AUTHOR : STAN PROKOP

7 PARK AVENUE FINANCIAL

Canadian Business Financing !

We finance the little guy ! P.S. We finance the big guys too!


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

Feel The Freedom ! Success With Canadian Franchise Financing Business Lenders

Our Only Competitive Edge In Business Financing Is Experience !

Thinking Of Entrepreneurship ? Pain Free Franchising Finance



Information on franchise financing solutions and lenders in Canada . Business financing made sense for entrepreneurs .


The ' freedom ' of owning your own business, one that has already proven to be successful is surely exhilarating. That’s why it’s so all important to ensure that you're aware of the options and mechanics that franchise financing lenders utilize for a business financing when it comes to franchising in Canada.

It’s a broad spectrum ! From newer immigrants to Canada to seasoned corporate executives there is no doubt that a franchise purchase represents the new ' Canadian business dream '.

Let's examine some key issues when it comes to financing your purchase, including which the franchise financing lenders are in Canada, and how you can avoid the disappointment of doing it wrong the first time.

Several elements of your personal and past business life come into play when a franchise lender looks at your business proposal. One of them quite frankly is your personal credit history which must be reasonable. ‘What’s reasonable?' ask clients who sit down with us to discuss their franchise purchase and business financing options.

Actually the playing field is very level here, not a lot of mystery as some clients assumes. In Canada two credit bureau agencies dominate the credit history market. All Canadians who borrow or who have borrowed in the past have a 'score '. The passing score in Canada tends to be 650. So you can easily check your score by yourself and determine whether you are in the striking range.

Another typical question we always get revolves around the type of franchise you purchase. Do franchise lenders actually favor certain franchises over others? (Think doughnuts, hockey, and a Canadian franchise name that comes to mind as an example!) We have even seen some studies recently that indicate that there are some internal publications at some financial institutions in the U.S. and Canada that favor certain franchises over others.

We think it goes without saying that some brand names are more attractive , seeming have the ability to be more successful vis a vis cash flow generation and profits, and are viewed as a ' better bet '. That having been said we've worked with numerous clients who have successfully financed franchises that are either new concepts to Canada or less well known. So don’t take a less known name as a ' no' when it comes to franchise financing success probability.

The reality of financing franchises in Canada is that it’s hardly a huge ' collateral ' play. Involved in your purchase are franchise fees, leasehold improvements, and numerous soft costs that quite frankly aren’t at the top of the collateral desired meter!

So your ability to package and present a deal properly, inject some equity into the deal (the proverbial ' down payment ‘) and demonstrate a decent opening balance sheet and cash flows is critical. A solid business plan that meets and exceed the lenders qualifications can be prepared efficiently by any Canadian business financing advisor who is worth their salt!

So, franchise lenders. Who are they in Canada? The banks do the majority of franchise financing in Canada, but the secret here is that the vehicle used to approve your financing is done under a government program called the BIL /CSBF loan. It works perfectly for your needs on franchise financings under 350k. One major international firm also finances franchises under special arrangements with selected franchisors.

You should rarely count on your franchisor to assist in the financing process, other than some guidance and suggestions. So if that’s the case, who can you turn to? Consider talking to a trusted, credible an experienced Canadian business financing advisor who can tailor a financing to your specific needs, and entrepreneurial success!


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/franchise_financing_lenders_business.html

Canadian ABL Loans Are Solutions To A Cash Crisis and Business Growth Financing ! Look Into Business Lending via a Revolver Loan Facility.

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




Asset Based Line of Credit Facilities In Canada


Information on ABL loans in Canada and why this type of business lending and financing revolver is the ultimate working capital loan facility.




Talk about two different problems... a cash crisis (or ongoing cash crisis!) and badly needed growth financing. Let's take a look at how abl loans via asset based lending and financing can be the perfect solution for your revolver facility loan needs.

In business there’s nothing more urgent than a ' call to action ' around a working capital or cash flow crisis. At this point it's all about ' righting the ship ' and allowing Canadian business owners and financial managers to get their business finances under control. It's more often than not a case of simple survival.

Naturally putting in a proper ongoing financial solution, such as an abl financing revolved allows you to get your eyes back on running the company normally on a daily basis - we meet with clients who regularly tell us that a huge amount of time is spent on managing cash crises and juggling things such as vendor payments . Bottom line, its time to stop putting out the fires and focus on a solution... that works.

A true asset based line of credit has the ability to allow you get back the confidence that your suppliers, lessors, and other lenders had in your business, and that’s important. It goes without saying that lenders, investors and suppliers truly have the ability to control the destiny of your company if the perception of a permanent cash flow shortage remains.

So, enough about the fear! Let's focus on a solution that works. Simply speaking, that’s asset based financing via a revolver facility that is generally non bank in nature. (Some Canadian banks now offer this facility but the credit requirements and deal size criteria are, in our opinion, exceptionally high).

The concept of asset based lending, aka ' ABL ' is simply securing your assets, leverage them to the maximum that is possible, with the result being greater liquidity for your company. And by the way, don’t think we have just leveraged up a ton of debt on your balance sheet - 100% wrong, we have simply monetized or ' cash flowed ' existing assets... allowing you to borrow against them .

Those assets are typically very clear categories of receivables, inventory, equipment, and occasionally real estate and tax credits due your firm. (Yes tax credits such as the SR&ED credit can be included in your financing package).

So the question then becomes, don’t banks do this already...? And you have tried that possible scenario. The quick take away here is two things. First of all abl loans and financing revolver facilities provide greater leverage on current assets. Receivables are typically margined at 90%, and inventory, often difficult to finance for cash flow, can be margined anywhere from 30-70% as an example. If you were getting 75% from your bank on A/R and nothing on inventory haven’t we just increased your working capital by anywhere from 50-100%?! Wow.

A very simple way to look at this, and we use this example with clients all the time is to simply think of the asset based lender solely looking at the collateral, while the banks will focus on collateral, but mainly historical cash flow, ratios and covenants, and outside collateral via personal guarantees, etc . (As a general rule very little emphasis is placed on personal guarantees when an ABL loan facility is put in place.

Oh and by the way, you absolutely don’t have to be profitable to qualify for asset based lending facilities, which in Canada start at a low of 250k and go to the tens of millions of dollars.

So, cash flow crisis. Growth challenges. Looking for a solution? Speak to a trusted, credible and experienced Canadian business financing advisor on ensuring an ABL working capital facility is right 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/abl_loans_lending_financing_loan_revolver.html

Buying A Company ? B I M BO Strategies for A Canadian Leveraged Buy in and ( MBO ) Management Buyout

Buying a Company Using Its Asset Base and Cash Flows


Information on the leveraged buy in and management buyout strategy (MBO) for Canadian Small and Medium Size businesses in Canada



B I M BO? Don't panic... it’s not what you think. That’s the acronym that the finance folks use for whats known as ' Buy in Management Buy Out ' for business owners and management who are contemplating purchasing their own or an existing company. Let's look at MBO 101 with a focus on helping small and medium sized businesses in Canada who don’t necessarily have access to the resources and talent to properly complete such a transaction on their own.

We're quite sure that hundreds, perhaps thousands of business people in Canada are at any one time contemplating purchasing their own firm, or one in which they have targeted or are associated with . Larger corporations of course have access to tons of talent with respect to lawyers, advisory firms, etc when they contemplate this type of deal. Typically we open the business news page and see headlines announcing such purchases that have either been done behind close doors or sometimes catching one of the parties totally off guard.

Let's focus on some core basics that small firms in Canada can focus on when it comes to a management buyout or leveraged buy in.

As a business person considering an MBO focus initially on two concepts, debt and equity. In spite of the negative connotations of ' debt ' you can still acquire a firm in a very successful manner by using a combination of either bank loans or other asset based debt that use the assets of the company . Just make sure of course that the right amount of due diligence is done of making sure that you can meet any interest and loan payments out of the cash flows of the on going business! That can't be overemphasized!

By using just a small amount of equity, either your own new equity or existing equity in the new business going forward you are able to leverage a great transaction... as long as your new debt to equity ratio is still reasonable. Debt to equity ratios vary by industry ... a very typical debt to equity ratio for a manufacturing type company is 2:1.

When you get overly aggressive on debt in the excitement of finalizing your transaction you of course run the risk of a business failure. In a perfect world (and trust us, we know its not) you end up with a solid management team, a reasonably financed firm, and lots of potential for profit and growth via new synergies of management, etc.

Business people should also be considering at an early stage how they someday will exit from the transaction. They often see a huge return in the future on the risk and capital they have put on the table, but need to understand how that will ultimately be monetized.

The bottom line - MBO... Our ' management buyout ' or leveraged buy in is often a fabulous opportunity for managers and owners to take advantage of a great business opportunity based on their skills, knowledge, etc. Using assets already in place allows you to capitalize on a great opportunity. Just think of it, you have used the assets of an existing company to pay for it. That’s sometimes called ' bootstrapping’

So, can a great BIMBO strategy work? Absolutely, and it can be financed via a bank, asset based lender, private equity firm or some other more esoteric types of financing. Speak to a trusted, credible and experienced Canadian business financing advisor for help with your BIMBO!!





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/leveraged_buy_in_management_buy_out_mbo.html

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