Are You Eligible? Canadian Government Small Business Loan Qualifications – SBL Financing Is The Funding You’re Looking For !

Curious About SBL Government Financing Loans?



Information on the government small business loan ( SBL ) financing program in Canada . Start Up ? In Business ? Here’s how to qualify for this great funding program .



It's actually not that complicated. The Government Small business loan financing program makes funding for your new or established Canadian company accessible and on terms that even larger more established firms simply can’t often achieve.

Funding under the SBL program obviously has a long term gain for Canada as the 7000+ firms that use the program every year create jobs, pay taxes, etc.

Clients sitting down with us only want to know one thing. Are they eligible?! Eligibility for small business loan financing therefore allows them to reap the financial benefits of the program.

So, eligibility. Its a simple case of knowing how the loan guaranty program works , what options are available from a structure viewpoint, and what exactly does the program finance ?

Great questions. Let’s get some answers going! The government small business loan financing option was developed for businesses just like yours. You can either be a start up, or an established firm already in business, with the one caveat being that your revenues must be under 5 Million dollars annually.

Because you may not be eligible for financing at a Canadian chartered bank doesn’t mean you aren’t qualified to receive the SBL loan. That’s because the government guarantee on the loan, by its nature, allows the bank to now provide you with the financing you need for your business.

So when actually are you eligible ?The answer is ' all the time' as the program has been in place for years and allows you to obtain financing for real estate, equipment and capital assets, including software, and even leasehold improvements to your business facility . Many restaurants and franchises use the program for the initial funding of their transaction.

So whets with the guarantee? As we referenced it’s the federal government that guarantees the funding to your chartered bank or other financial institution that participates in the program. That’s one of the big misconceptions, because the same bank that couldn’t provide you with ' traditional' financing because you were a start up, didn’t have enough collateral, etc is the entity that both provides and administers the loan. Talk about irony.

Restrictions on the use of loan proceeds is actually one of the continually misunderstood aspects of the government small business loan. You cannot use the loan for working capital or things such as inventory ; it must be used for our three aforementioned categories - real estate, assets, including software, and leaseholds.

The general terms of the program are as follows, a very limited personal guarantee, 5-7 year term amortizations, and rates at approximately 3% over the Canadian prime rate of interest. By the way that’s a fabulous rate for a start up, wouldn’t you agree, if in fact you are utilizing the program for a new business? It’s also important that the owners of the business have a decent personal credit history, as validated by their personal credit score at the credit bureau.


How can you quickly determine your eligibility without wasting time, monies and resources? Its simple, speak to a trusted, credible and experienced Canadian business financing advisor who can quickly steer you through eligibility and yes, approval!


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_small_business_loan_financing_funding.html

Cold Hard Facts On Franchise Financing Funding In Canada – Information On The Franchising Loan You Need

Straight Talk On How To Finance Your Franchise Purchase In Canada


Information on franchise financing in Canada . How does the funding and approval of a franchise loan work and what are the benefits and disadvantages of certain finance strategies when purchasing a franchise.


We've observed over the years that business owners and entrepreneurs never mind getting the ' cold hard facts’ in business, as long as they are in fact getting ' the facts'! So let’s share some franchise financing information on how the funding of a franchise loan really works in Canada.

Purchasing a franchise in the Canadian marketplace can revolve around three different scenarios: a total new turnkey start, purchasing a business from an existing franchisee, or perhaps even adding another location or unit to the franchise you already own.

It may be a surprise to many people, but in Canada it’s actually quite difficult for existing franchisees to achieve financing for additional units. Conservative lending policies that focus on the debt you take on will often limit your ability to expand your multi unit dream.

When clients talk to us about the franchise financing information they need to complete loan funding we point out that a very aggressive strategy for achieving a high chance of franchise loan approval is in fact the government SBL program. While we believe it certainly was never intended to focus strictly on franchises, (and it doesn’t) it has become the perfect vehicle to successfully complete a loan funding in the Canadian franchise finance arena.

The challenge though then simply becomes understanding what you need to do to successfully complete the loan process. And doing it right can make this program the ' one stop ' solution for final franchising approval.

While be believe many clients, and perhaps rightfully so believe the Canadian chartered banks will not support them on their franchise finance attempts the reality is that bank can become your best ally when it partners under the federal BIL/CSBF program .

If you were to finance a franchise under standard business financing arrangements, outside of the program, how could this in effect be accomplished? First of all, you probably would need a very hefty down payment, otherwise known as your equity injection. Payments would be higher if you were unable to obtain the right loan term (amortization), and, suffice to say, it certainly might take quite awhile to get your transaction approved.

And that's if, and its a BIG if, you get a bank or financial institution onside given the pool of prospective lenders in Canada is actually limited to only 1 or 2 commercial finance firms . Suffice to say also that you'll probably be spending a lot of time educating a lender about what you need and what you are trying to achieve.

So is there a better way? We categorically think there is! As we said, the BIL program in Canada perfectly suits a franchise financing requirement.

Why? Simply for the following reasons. First of all your total permanent equity injection is only 10%, allowing you quite a bit of room for working capital needs as you start your business . Terms under the program are typically 5-7 years. That means a typical 350k loan will cost you around 6700$ a month which is of course incorporated into your cash flows and income projections.

No outside collateral is required, which certainly isn’t the case in many other forms of business financing, and even your personal guarantee is very limited. Talk about a double whammy of goodness!

So ' how long would this all take ‘is a typical question clients have. If you utilize the expertise and resources of someone such a trusted, experienced and credible Canadian business financing advisor the whole process can in fact be completed in a matter of days - if you are prepared!

So, that’s the cold hard truth on some franchise financing information in Canada. Can you handle the truth?! We're quite sure you can, because it’s all you wanted in the first place!







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_information_funding_loan.html

Restart Canadian Business Finance Success With An Asset Based Line OF Credit ! Turbo charge cash flow Via ABL Revolving Lines

Don’t Take Chances By Not Investigating ABL Credit Lines




Information on the Canadian asset based line of credit and the ABL revolving finance facility .How these business lines leverage your working capital and cash flow to the maximum




The ‘times they are a changing; Bob Dylan we're thinking probably wasn’t considering an asset based line of credit finance solution when he wrote his famous song .

Somehow though those words signify a ' restart ' and that’s what Canadian business owners get when they consider asset based finance via revolving credit facilities as a solution for cash flow and working capital needs .

So how does something that seemingly seems the same actually benefit your company so significantly? It's partly related to the external environment out there: traditional forms of business financing in Canada are challenging to say the least, venture capital seems somewhat non existent, and private equity deals take forever to complete if you can find a suitable partner.

Enter the asset based line of credit finance solution! ABL is the acronym for this these revolving lines of credit. They are multi tasking to say the least. Hers some of the things that ABL lines can do : pay out secured existing creditors who have term loans or business lines of credit in place with your firm, eliminate CRA arrears, ( if any ) on the initial advance, and , quite importantly, help you get caught up with valued supplier and vendor related payables.

Oh, and by the way, if you had limited or perhaps no inventory financing in place before as a part of your business line of credit... well, you do now!

The Canadian asset based line of credit marketplace is significantly different from that of the U.S. First of all, we're a smaller country business wise, no surprise there. So there are fewer true ABL type lenders to meet your overall needs. We also logically think that the limited number of players in this market might be one of the reasons you simply have never heard of this solution?!

We keep talking about differences when we compare the asset based loan facility to traditional commercial banking facilities available from our chartered banking system here in Canada. Those differences are quite frankly what make these revolving lines of credit so great.

First of all there is a lot of emphasis on collateral and assets, and less or extremely limited emphasis on outside collateral, personal guarantees, and ratios and covenants.

Additionally, it’s apparently not a perfect world out there, and your firm may be experiencing fluctuations in sales, profits, and balance sheet strength. The reality is that ABL finance is still the solution for your firm if you are in any of the above scenarios.

ABL finance is specialized lending. Firms that offer this service tend to be seasoned companies with significant experience in loaning against your assets. That’s of course not to say the banks are not, but it’s a case of almost micro managing your assets with you, which gives you more borrowing power. These capabilities translate into more working capital and cash flow for your firm, as you benefit from higher advance rates on receivables, inventory margining that actually finally makes sense, and access to unlimited business credit as long as your business is growing .

Investigate ABL. Speak to a trusted, credible and experienced Canadian business financing advisor who can help you determine whether your firm is due for a ' restart ' in Canadian business financing.





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_finance_revolving_lines.html

Are SRED ( SR&ED ) Tax Credits Dead ? We Hope Not! SRED Financing For Your SR ED Credit Claims Is Alive & Well !

SRED Loans and Financing for SR&ED Claims – Financing Today For Your Filed or Unfiled Claim!

Information on the financing of sred tax credit( sr&ed) claims in Canada. A bridge or factoring loan on your sred credits makes working capital and cash flow sense.




Sweating bullets. Always a favorite expression for some serious worrying. That surely must be the case for thousands of Canadian firms and the industry consultants who file SRED (SR&ED) claims in Canada for their non refundable tax credit monies for their R&D processes.

We're not going to weigh in on whether these tax credits are justified, not justified, or who screwed things up, but we will say one thing - Your Sred financing is still alive and well. In fact in some ways it just got better, and we'll talk about that also.

Thousands of Canadian firms receive a total of billions of dollars every year from the Government of Canada for their research and development costs. A large portion of their total costs in several categories of R&D, i.e. labor, comes back to them in the form of a refundable cheque.

Naturally getting monies back for your SRED claim is a huge and positive issue for thousands and firms who are either start up, pre revenue, or who simply... you guessed it... need the cash. Many of our clients actually book the claim they file as a receivable, in effect non refundable monies coming back into their company .The claim is, of course, a combination of funds from both the federal and provincial government. Sred claims are separate from other grants and schemes such as IRAP, etc.

So, getting back to the one thing we want to emphasize today, and that’s ' cash flow '! Naturally it’s a free country and if you want to wait to get your funds back from the government by all means do that. But consider also that you have another option, which is to finance your claim. In Canada SRED claims of almost any size can be financed. While larger claims make more economic sense claims generally in the 80k and higher range certainly are financeable.

So how does the financing work? You should consider this as quite a ' normal ' business financing. (Is any business financing normal these days?!) . The basic application involves info on your firm such as your financial, projections, etc, info on the owners, and copies of the actual claim itself.

SRED claims have tended to be prepared by a group of people in Canada who term themselves SRED consultants. They work on either a contingency basis or a fee basis. We've been watching the SRED battle from a distance and some people are making the claim that the sred consultants themselves have become a part of the problem in the industry.

Let’s use 2 Billion dollars an example. If the federal government gave out 2 Billion dollars it’s the SRED consultants who worked on contingency that receive anywhere from 15- 30% of all these funds as fees. That makes a case for not a lot of value for the country from a pure R&D perspective. Anyway, we promised not to weigh in on that one, so we won’t.

What we are saying is that if your claim is properly prepared, by either yourself or a qualified sred consultant then it’s financeable.

SRED Financing claims are financed at, in general 70% loan to value. We spoke of new developments in the industry as far as financing the sred credit .The good news is that most claims are now financeable as your spend, prior to filing, This is called Accrual sred finance, and gives you cash flow reimbursement as you spend .

Is there a bottom line today? As always, there is. It’s simply that we kind of hope the sred program stays around for all those legitimate firms and consultants who see the true value of the program. And consider financing your tax credit for increased working capital and cash flow. Speak to a trusted, credible and experienced Canadian business financing advisor on Sred Tax Credit finance 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/sred_financing_claims_tax_credit_credits.html

Save Thousands With This Info On Capital Equipment Leasing Companies In Canada . Lease Financing Tips!

Canadian Equipment Financing



Information on equipment leasing companies in Canada. Financing Capital assets with the right information can save you money .





The lay of the land. Kind of important in any aspect of business, wouldn't you say? There a tremendous amount going on in Canadian capital equipment leasing today, so let’s examine who these companies are, where they are, and most importantly, what you need to know about them!

Surely we all agree there isn’t a more viable method of financing capital needs then equipment leasing in Canada. Stat's show that over 80% of all companies at one time or another lease assets. So, no surprise that the industry today provides a huge amount of the capital in the financial industry when it comes to asset acquisition... your asset acquisition!

So whats all the fuss and excitement about ?We guess its the simple fact that almost any asset can be leased, and that includes software and cloud computing , right up to our traditional favorites : plant equpment, rolling stock, office equipment, medical equipment, and heavy construction equipment, affectionately known in the industry as ' yellow iron;.

So with all that goodness is there anything to be worried about when it comes to lease financing strategies and transactions for your firm? When we talk to clients it's often simply that they can sometimes view the transaction as complicated, and find it tough slogging when it comes to credit approval, other financial considerations, and the time spent sometimes to complete a successful transaction.

And when that transaction is completed are you 100% sure it’s a good one, maximizing ALL of the benefits that equipment leasing companies offer?!

The reality we have always found is that you can save thousands of dollars, or lose thousands of dollars when entering into the best or worst, respectively, transaction.

So what are clients interested in when it comes to acquiring assets via equipment financing? We can generally lump those issues into areas such as tax and accounting implications, the choice of the best structure of the lease from lease type (there are 2 types) as well as proper terms, rates, amortizations, etc.

Many clients we've spoken also often fail to perform some very basic ' lease vs. buy' analysis that points them in the direction of knowing that they made the right decision when it comes to buying or leasing .

And finally, what are the serious pitfalls when it comes to making the wrong decision?

You're in good company when it comes to being a lessee of equipment in Canada .Canada's largest corporations, right down to start ups and sole proprietorships lease assets. They lease these assets from companies that fall into three general categories - small, medium and large ticket assets. Things are somewhat further complicated because the companies that are in these three broad groups are independent commercial finance firms, foreign owned firms, Canadian firms, captive finance firms associated with manufactures, and bank owned in some case , And that’s Canadian bank owned and U.S. bank owned .

Help! We can almost hear clients as we walk them through the basics of some of the key points we've shared above. Is there a quicker way to the goal line considering all the demands of your time as a business owner or financial manager? There is... consider using an expert. What a revelation, right?! Speak to a trusted, credible and experienced Canadian business financing advisor who can meet all your lease financing needs and put you in a transaction that save money, accrues benefits ; now that’s a win/win!




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/capital_equipment_leasing_companies_financing.html

A Smart Way To Grow Sales & Raise Capital - Canadian Factor Receivable Loans Financing Via Confidential Factoring

Confidential Receivable Financing the Canadian Way!



Information on receivable loans financing in Canada . How a confidential factoring facility is an alternative to traditional factor finance with even more benefits!




Is there actually a way to grow sales and raise capital at the same time? Seems like a bit of a contradiction, don't you think? But thousands of Canadian firms have turned to receivables loans financing, a specialized sub set of asset based lending.

By factoring or selling their receivables as they generate revenue this factor strategy achieves out two stated goals, generating working capital every time you make a sale. And smarter business owners utilize confidential cash flow financing as a better method than their competitors to make that business financing strategy work even better.

If your firm just quite doesn’t have the track record to achieve all the bank or traditional financing you need then consider such a strategy with the added twist we've suggested, implementing a confidential invoice finance strategy .

Receivable loans financing, as we have said, is a sub set of asset based lending in Canada. It finances what is more often than not the largest asset on the left side of your balance sheet, your A/R!

What makes this financing so different then? A lot of our clients say ' the cost!’, and we'll get to that shortly, because it is a more expensive type financing. But the true difference is the fact it doesn’t discriminate. What do we mean by that? Simply that if you firm is growing too fast, having challenges, etc your receivables are essentially the only qualifier to getting approved.

Utilizing confidential invoice factoring allows you to not have to focus on debt to worth rations, or cash flow coverage, or putting up substantial personal assets under a guarantee - it simply takes for face value the underlying assets , that the a/r!.. and finances them, all day, every day.

And could this financing work any more simply? We don’t think so. Every month, or more often if you wish you create a simple borrowing base certificate on your assets, such as you similarly would have done for your bank. Funds are advances against those receivables, and as you collect them the balance of course reduces, similar to a bank revolving facility.

And now for the difference, i.e. what actually differentiates our confidential invoice financing facility from day to day factoring that your competitors might be using. It’s actually the ' confidential ' aspect we have spoken of. If your competitors are using this Canadian business financing strategy we can most assuredly guarantee you that their customers and clients are being contacted by the factoring firm, and when payments do come in they are being segregated by your finance firm or even remitted to the finance firm directly.

That’s where confidential invoice factor facilities differ. The simple bottom line - you bill and collect your own receivables. You maintain control, and in Canada we tend to view that as a good thing. Most business owners and financial managers are not aware that that type of flexibility as an example is not available in the U.S. at all. And back to that cost issue. Confidential invoice factor facilities don’t cost anymore than regular invoice financing!

So, confused? We hope not. Interested? We hope so! Speak to a trusted, credible and experienced Canadian business financing advisor on the benefits of a confidential receivables loan financing strategy. Satisfy those critical needs your company has, growth and cash flow.


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/receivable_loans_financing_factor_factoring.html

Canadian Business Banking Needs? The Edge On Bank Lines Of Credit ! Who’s Best In Canada ?

Commercial bank lines or credit and term loans in Canada


Information on Canadian bank lines of credit . How do you pick the best business banking facility in Canada . What Canadian business owners and financial mangers should consider in Bank financing .




Does it all have to be that mysterious and frustrating? We're talking about achieving success in completing bank lines of credit for your business banking needs in Canada. And with the proper info and mindset, and some tips to follow we think you will have an excellent chance of securing the business financing you need.

We'll also reveal who is the best banker in Canada, so stay tuned.

Canadian chartered banks are all about debt type financing... we're talking about term loans, equipment leasing, and revolving loans that are secured by current assets such as receivables and inventory .

We think where some business owners and financial managers in Canada miss the boat is the issue of knowing where the bank is coming from when it comes to ' secured lending '. For a starter, banks don’t really do ' unsecured' lending so that might be considered as our first tip. And by the way. approaching your bank for equity type arrangements wont work either, so eliminate that strategy from your ' to do ' list!

So, where is the bank coming from? It’s coming from cash flow, with your collateral being the assets that back up that ability to repay. Banks have sophisticated formulas in place that you and I might never really see when it comes to commercial business credit financing, but we can safely assure you that positive cash flow 1.25 times the debt you have to service is pretty well the rule of thumb with Canadian chartered banks.

Canadian banks are often criticized for not taking enough risk. Don’t get us started on that one, but recognize first that banks are regulated by various agencies, and loan and risk quality is constantly being evaluated. If you are looking for a banking type facility that comes with a much higher risk appetite, move into the non regulated area of financial services in Canada... that includes asset based lenders, non bank commercial financing firms, independent leasing companies, receivable financing firms, etc . It’s these firms that take up the ' risk slack ' when it comes to transactions the bank wont do - but of course the financing costs are higher. Surprised? You shouldn’t be.

A really simply way of looking at bank lines of credit is simply that the bank will look more favorable on your firm if it throws off cash, as opposed to consuming it! Naturally our clients then ask ' if I was throwing off cash then I wouldn’t need to be borrowing!”

Think of Canadian business banking as relatively low risk lending - if your firm has a higher risk profile then you should consider asset based lenders, and specialty lenders of all types - receivables, Purchase Order financiers, etc, . They will understand your needs a lot better than the bank.

One of most key points we share with clients around business banking in Canada is that they should pay more attention to the terms, covenants, and rations in their actual credit agreements. It seems to us, silly in fact, to be rate focused when all the Canadian chartered banks are within basis points of each other in their offering to business clients. Focus on meaningful covenants that allow you to work and grow on a daily basis.

You never want to be behaving in a manner as to jeopardize your business because of covenant issues. And another key area you should engage in frank discussion in is the whole issue of personal and spousal guarantees. In our experience there is some flexibility in this area when your case is properly presented. Consider a limited guarantee strategy also.

And finally, whets the best commercial bank in Canada? We actually do have a favorite, but it doesn’t seem right to say. But we can share with you that the best banker and bank in Canada is one who is professional, credible, has respect within their institution, and who is prepared to carry your business case forward in both good and challenging times . Your relationship with that type of banker is worth... well... a lot.

Want some tips, strategies and assistance in securing business bank lines of credit tin Canada that achieve your operating and growth goals ? Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in business banking 101.



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/bank_lines_of_credit_business_banking_canada.html