How To Increase Chance Of Loan Approval For Canadian Government Business Loans – SBL Loan Advice

Something Worth Considering ! Government Business Loans

Information on Canadian government business loans . How entrepreneurs, business owners and financial managers can increase chances of loan approval for the Small Business SBL Loan .



Odds. We can't speak for you but we like them when they are stacked in our favor! So is there a way to increase your chances of loan approval for the SBL Loan... Canadian government business loans? We know there is! and we’re going to show you how.

Some folks might consider us biased, but we think it's very obvious that the Canadian BIL/CSBF program is, bar none, one of the best programs in Canada for small business, and that’s including start ups by the way. First of all, its about those great rates, terms and structures, as well as limited personal liability, but primarily because with a basic understanding of key program requirements you can find yourself ' APPROVED ‘ ( that’s one of our favorite words by the way) in a matter of days .

So what’s all this about stacking the odds in your favor? Most Canadian business owners and financial managers we meet, including those entrepreneurs starting a business have in some cases not heard of the program. However, more importantly those that have view the words such as ' government' ' bank’ with a bit of trepidation, sometimes based on real world experience.

The reality is that if you understand the key requirements of the program you are in a position to better address those issues, in effect ' finesse' them and tilt the odds of approval in your favor. Doesnt it make sense that if you understand the requirements, and present them in a professional manner you would be in a position to garner a full approval for your financing?

We feel sorry for the business owners and entrepreneur, including franchisees that show up at our door with tales of being declined or having spent too much time facilitating their SBL Loan financing. And suffice to say we even know their story before they tell it to us... simply that they failed to provide the right documentation in a coherenet understandable manner.It's a simple case of positoning yourself, your business, and your business financial future . That is often done by a strong business plan or executive summary.

Having to continually go back and address the providers of government business loans with additional information can of course create a negative spin on your financing request. That's not good.

In Canada the SBL Loan program is run by INDUSTRY CANADA. That’s the federal government by the way! We are sure they are nice people, but guess what? The bottom line is that you will never meet them as the Canadian government business loans are administered by your local bank.

The odds of increasing your chances of loan approval for an SBL loan improve directly in relation to the knowledge and quality of your banker. We're sorry to say that many bankers often exhibit signs of not being knowledgeable about the program or even supportive of the general spirit of the program. And by the way, that spirit is just one thing - providing your new or existing business with up to 350k in financing for equipment, leaseholds, software, real estate, etc on terms you would never normally achieve under normal business financing. Enough said.

If you want the complete attention of your banker have a solid package. There are only 4 or 5 things required in that package, so it’s hardly rocket science.

Want even better odds? Speak to a trusted, credible an experienced Canadian busines financing advisor who can fast track you to SBL loan success.


ABOUT THE AUTHOR - STAN PROKOP

FOUNDER - 7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING !

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


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

What’s The Cost And Return on Franchise Financing In Canada.? Franchising Loans & ROI Explained

What’s The Cost And Return on Franchise Financing In Canada.? Franchising Loans & ROI Explained


Information on franchise financing in Canada. How to factor the cost and return on investment of franchising finance loans into your business acquisition .



When we talk to clients about their concerns of getting franchise financing in Canada they also want to focus on whether the cost to finance that franchise is in effect a good ' return on investment ', in relation to both their own personal investment in the business as well as ongoing returns on that equity based on the ongoing profits of the business and the risk involved in this type of business, i.e. franchising!

The amount of capital you need to raise relative to your franchise loan varies in Canada. Factors that are critical here are the amount of capital that in some cases your franchisor might insist you put into the business. Another key factor is of course the amount of funding you are able to raise based upon your own personal financial situation, one factor of which is your personal credit rating. Clearly the majority of franchises in Canada are regarded as ' small business' so it makes sense that the banks and other firms that participate in franchise financing are focusing on you personally as well as your overall business prospects.

Canadian chartered banks, contrary to popular opinion, do participate in franchise financing in Canada. In fact in our opinion you could call them the major lender to the industry. But what many clients don’t understand when looking for franchise financing in Canada is that the bank lending in the franchising industry is done under the auspices of the Government Small Busines Loan, which is perfect suited to the type of financing you probably need.

So how much do franchises cost. We can safely say that they range in price for very nominal amounts such as 10k or so for a small service based franchise to millions of dollars for such large brand names... think ' golden arches' as an example .

Cost factors of your franchise vary with respect to how well your franchisor is doing in Canada, or perhaps it’s often the case of a franchisor in the U.S. who wishes to expand or introduce their presence in Canada.


We mentioned the government small business loan as a prime source of financing for the cost of your franchising proposal. This loan actually maxis out at $ 350,000.00 but in our experience that amount finances a huge amount of the franchise opportunities in Canada. They are great loans because they offer sensible maturities of 5-7 years, solid interest rates and nominal fees attached to the overall financing. The initial franchise fee itself is not financeable under the program, so typically our clients fund that portion themselves, which of course counts as their overall equity,


It's important to start sourcing your financing for your new franchise early on in the process. The bottom line, it’s never too late to start looking at your financing options available, including our aforementioned SBL loan.

So where does the capital come from relative to your own investment in the business.

Typically we see these funds coming from a clients own personal savings. That might also come from a severance situation based on the clients exit from ' corporate life ‘. In some cases you may choose to collapse savings, registered, or otherwise.

We encourage customers to understand the concept of financial leverage when it comes to R O I, or return on investment. Measure risk against reward; ensure you can withdraw a reasonable amount as a salary from the business, based on your financial projections.

And that ROI! Compute and analyze it just as you would any investment, such as a stock. Let’s say something costs 100% and you earn a 6% dividend. That’s generally a reasonable amount. So if you sell that investment 12 months latter your ROI is 6%. Think of that stock as being your business and the dividend being your business profits. Measure risk and reward and factor in the time and commitment you need to make into the business.

Franchising financing in Canada can be as difficult or easy as you make it. Speak to a trusted, credible and experienced Canadian business financing advisor who is expert in financing the cost of your franchising. And here's to your great, hopefully, Return on Investment!


ABOUT THE AUTHOR - STAN PROKOP

7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING



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

Put An End To Canadian Asset Finance Problems! Use Smart Lease Financing & Capital Leasing Strategies

Bank Finance Challenges For New Assets ? – Here’s A Solution

Information on lease financing in Canada. Use smart asset finance strategies and these tips to win with capital leasing solutions that make your firm a winner in asset financing .




Safe to say that Canadian business owners and financial managers have enough to worry about these days, so asset finance via lease financing for capital acquisition of equipment, hardware, software, etc shouldn’t be one of them!

The benefits of lease finance have been pretty clear to Canadian businesses for many years. And when we say ' Canadian business' that means in the case of capital leasing strategies every size of business in Canada, from start up to major corporation.


The industry in Canada has tended to segment itself into 3 size categories, simply speaking small, medium and large ticket transactions. In Canada billions of dollars of capital has been invested into the industry and those funds are used to finance your equipment needs- everything from hard assets and the soft costs that are associated with them, up to and including software, cloud computing, well, you name it!

There is always an ongoing debate as to the cost of lease financing versus buying an asset outright with your own funds, versus leasing it. It's the proverbial ' lease vs. buy' that many of us are faced with even in our personal finances when we decide to buy a new car, etc. Depending on the variables in the lease vs. buy template we suppose that in certain occasions leasing might be more expensive. But whets the alternative when you think about it, because that involves using a large amount of your business cash or operating line of credit, or applying at the bank for a term loan and not getting approved.

When we speak to clients about capital leasing its loud and clear that they utilize this time worn asset finance strategy simply because it’s easily obtained. It’s as simple as that. In reality a large part of the industry, certainly in the small ticket area - i.e. 1-50k operates only on an application only basis, no financial stats required. Naturally in larger transactions you do need a solid application that includes historical and interim financials, info on the owners, etc.

When you are looking to achieve a solid rate, term and structure around your asset finance transaction it’s important to receive a quote that is clear. We are not impressed by some in the industry that tend to use a smoke and mirrors strategy around getting your business, as the industry in Canada is quite ' hot' and ultra competitive these days. In reality there’s only 5 key elements to your transaction - term of the lease, rate, payment, end of lease obligation and value of your transaction. So understand them and make sure it’s an ‘apples to apples ' comparison. Utilizing the services of an experienced lease financier in Canada can often save you thousands of dollars and speed approval.

So if for any reason bank financing is ' elusive’, and you wish to preserve valuable cash flow speak to a trusted and credible and experienced Canadian business financing advisor who can assist you in maximizing asset acquisition needs in Canada. 80% of all businesses lease finance, so welcome aboard!



ABOUT THE AUTHOR - STAN PROKOP

7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING

'We Finance The Little Guy'

P.S. We finance the big guys also@


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

How To Manage Costs Of Sales Of Receivables Via Factoring – Business Cash Flow Financing Explained!

A Better Alternative – Understanding A/R Financing Costs


Information on how to understand and manage the costs of sales of receivables when utilizing the business cash flow strategy known by most business owners as factoring or invoice financing



When Canadian business owners and financial managers contemplate sales of receivables as a business cash flow strategy often the cost, and understanding the dynamics of that cost is top of mind. In general A/R financing, aka ' factoring' is somewhat understood in the Canadian business financing marketplace. And if it isn’t understood, it certainly is not as well known as to its mechanics, benefits, and how to do it the proper way.


We have often thought that it's simply that when firms are usually entertaining a new cash flow or working capital strategy it's because ' dire straits' have set in, and the company finds itself short of cash or generally unable to meet obligations on both operating expenses and other debt such as equipment leases, etc.

We have often preached that some of those basic problems can be fixed without external financing, i.e. a stricter credit granting policy, better matching payables outflows to A/R inflows.

However, when it’s absolutely certain that a new business financing strategy is required A/R financing is certainly one that thousands of firms are considering everyday. Why? Simply because it brings fast efficient cash flow to your firm through the sales of receivables. The way that A/R finance works couldn’t be more simple- that why we're often dismayed when we learn clients have been misinformed or led astray on pricing and factoring mechanics on day to day operations... simply speaking... how it works!!

If we had to simply one key benefit of factoring pricing it’s simply that you are only paying for the financing you are using. Using a simple (that’s our style by the way!) example of a 100.00 invoice it works as follows. As soon as you generate the invoice and can validate internally that you have shipped or earned the revenue for your product or service you receive a large amount, typically 90%, as an immediate payment for the sale of that invoice.

We can hear you already. ‘What about that other 10%"? The industry terms that the holdback and you get that back, less the financing cost, as soon as your customer pays. And by the way, if you have a number of accounts, and are utilizing an a/r finance strategy doesnt it make common sense to sell, or ' factor' your better paying customers. That’s because, as we have said, you only pay for what you use and your financing costs are decreased with those better paying customers.

Many of the benefits of factoring are overlooked because of the cost factor. We won’t even mention that your company now has the ability to simply survive sometimes, but more importantly, think Sales! Revenue! It's these lost opportunities that no longer are ' lost' since you are now immediately cash flow positive - what an exhilarating feeling that must be. Instead of uncollected A/R the left hand side of your balance sheet now shows ' Cash on hand’!

In Canada the ' fee' to sell a receivable is in the 2-3% range on a monthly basis. The danger is when clients compare this directly to commercial bank interest, which in many ways is the wrong analogy. And remember, there is not debt here, you're monetizing or cash flowing assets on your balance sheet. In many cases we see you now have the ability to double your revenue without taking on additional debt, if in fact that debt was available to you.

Looking for the inside scoop? Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in ensuring that sales of receivables as a business cash flow strategy , if done properly, with the right partner, is a solid path to growth and success.



ABOUT THE AUTHOR - STAN PROKOP

7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING


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

It’s 11 O’clock – Do You Know Where Your Canadian Financing & Funding For Production Tax Credits Is? Finance Your Film Tax Incentive Now

Let Film Tax Credit Financing In Canada Get Your Project To The Top Of The Mountain

Information on financing and film funding via monetization of your production tax credit . Finance your film and digital media tax incentive for project cash flow and working capital .



When we speak to producers/owners of film, TV and digital animation projects it always seems to be late. Late in respect to getting the financing they need for their projects. That's why it's never been as important a time as now to consider film funding and financing for TV and digital animation projects via the production tax incentive offered by Canadian provincial and federal governments.

The reality is that the Canadian tax credits available to you are currently some of the best administered and most generous in the world.

Using these credits is of course a solid way to help ' cash flow' your film. And with the right assistance, team and advisors you can creatively even pre-fund the tax incentive prior to final filing; of course eliminating then waiting for your cheque from the government.

And by they way, it’s certainly not a complicated process. We liken it with clients to a simply business financing application, one of course that is supplemented with key info on your production such as a budget that clearly that will be the essence of the tax credit application.

Naturally we spoke of a key advantage of the tax credit which was the ever elusive cash flow required to complete your project. But don’t forget also that its a well worn and proven saying in any business financing that ' debt is cheaper than equity ' so we can safely say that by maximizing your tax credit component you naturally enhance and retain equity , i.e. the ownership in your project . Bottom line, why give up equity when you don’t have to with a solid alternative such as tax credit film funding. And don’t forget that applies to TV and the growing digital media projects also.

Canada seems to continue to view in a very positive manner the impact the genres of film, TV and digital media have on the overall Canadian economy. Issues such as employment and future tax revenues seem to drive the overall thinking.

Canadian tax credit financing is not that fragmented as in the U.S. and other parts of the world. Each of the provinces work closely with the federal government which promotes a solid co operative effort.

Many U.S. and other producers in both digital media and other genres are opening Canadian offices. Gaming and video has become the fastest growing segment of the industry. It used to be mainly because of the Canadian $ exchange rate, that clearly is not longer the reason. Canada, aka ' Hollywood North' has clearly evolved into a major center for film, special effects, and gaming. One studio estimated that it costs 1/5 of the expense to create a VFX Green Room in Vancouver as opposed to L.A...

And don’t forget our subject matter today, which is thanks to a guy named DAVE. Dave is the acronym for the Digital Animation Visual Effects tax credit which provides, as an example a 50% tax incentive credit on labor

Because major Canadian centers such as Toronto, Vancouver and Montreal have great talent pools for the industry that allows the labor portion of the tax credit to be maximized - and that’s a good thing, translating into extra cash and working capital for your projects.

In Ontario for example tax credits are actually an ' online ' process for application, with major effort having gone into streamlining the process and approval times.

To finalize and finance your tax credit you need two critical team members, a tax credit expert who can maximize your claim, as well as an experienced Canadian business financing advisor who can cash flow and finance your tax credit for the obvious benefits we have mentioned.

So, it’s getting late. Do you know where your tax credit and financing is? Speak to a Canadian Expert for film and digital animation financing of your next production.



ABOUT THE AUTHOR - STAN PROKOP

7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING

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

Not All Canadian Small Business Financing Is Difficult - Check out the SBL Canada Government Loan Program For Financing Needs

The SBL Loan - A Low Risk/ High Reward Approach To Canadian Business Financing

Information on the Canada government SBL loan . Small Business financing for Canadian firms from start up to established companies with revenues less than 5 Million dollars.



For start up and small business in Canada (In our case today we mean sales under 5 Million dollars) there is one very obvious option to some of the most basic financing challenges, and its the Small Business ' SBL’ Canada government loan .

So what are some of those financing needs we referred to? Clients look to the program for purchasing a business, including franchises by the way, or simply the basic equipment and leasehold needs when they are constructing a building of office. We point out that almost all other types of financing in Canada often, if not always, discourage the financing of leaseholds so the ' SBL ' covers that problem off quite nicely.

A lot of business wants to stay on top (and boy is it hard) of technology, so the Canada Small Business Loan is a perfect way to acquire and finance both technology hardware and software.

And may we again note that it is often a challenge for firms to finance software, which is an intangible, so, you guessed it, the Canada government small business loan again steps up to the plate to take care of that challenge. The software that is financed under the program must be ' application' software. Firms that develop their software and who are looking for financing assistance should consider filing a SR&ED claim to recoup a lot of those funds spent in this area. (By the way, the SRED claim is a non repayable grant, so other then the taxation aspect it’s the closest to free money we can think of!)

But we digress! so lets get back to how some of this financing is done. While clients are often aware that there are thousands of firms who receive Billions of dollars under the program what they are more concerned about are how this financing work does and what timeline is involved.

Let’s examine a couple key aspects of some of those basic financing needs. We'll cover off some info about assets first. In the case of either purchasing an existing business or buying a used piece of equipment the SBL Canada government Small Business Loan requires a proper value of the asset. That is very easily covered off by obtaining an appraisal which comes at a relatively low cost. That appraisal becomes the financing value under the SBL small business loan. Mission accomplished!

By the way, when it comes down to actual numbers the Canada government loan program finances 90% of all eligible assets and leaseholds. The additional ten per cent is in effect your down payment or owner equity into the transaction.

Clients often are under the misapprehension that the program is difficult from a paperwork and timeline point of view. We take exception strongly to that because either on your own or with an SBL expert you can easily put together a basic documentation and business plan that meets all the criteria of the program. The reality is that this can all be done and submitted for approval in a manner of days. This is where working with an expert pays off because they are familiar with the small handful of technical aspects of making the application look good - which include a business plan and cash flow and ensuring certain cash flow and liquidity ratios work. It's not as hard as you think.

So, is the SBL loan program difficult? It certainly is if you have no idea what you are doing and don't know what can be financed or how to prepare a basic proposal. Consider perhaps utilizing the services of a trusted, credible and experienced Canadian business financing advisor who can assist you to take the word ' difficult' out of the equation, and replace it with that other word... Easy!



ABOUT THE AUTHOR: STAN PROKOP
FOUNDER OF 7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING

WE FINANCE THE LITTLE GUY .. P.S. WE FINANCE THE BIG GUYS TOO!



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

Need Some Help ? How to Buy And Finance A Franchise - Canadian Franchising Funding & Lending For The Loan You Need

Here’s A Solid Foundation For Financing Your Franchising Dream In Canada

Information on how to buy and finance a franchise in Canada . What type of franchising loan is available for entrepreneurs and how does this lending and funding work ?




It's not an uncommon question from clients: ' Where Can I get help on how to buy a franchise ‘... and equally as important what type of financing lending and funding is available under a franchise loan scenario.

By that time the entrepreneur has already gone through those pros and cons of buying a business under the franchise model. The benefits can be significant, and of course no business model is risk free so there are cons and consequences do making the wrong decisions.

In general it’s safe to say you need less capital when you ' buy ' a franchise. Other businesses not under the franchise model might come with significantly higher costs, especially if they are established, profitable, and have assets and cash flow. These businesses are often sold on what the finance folks call ' multiples ‘. Those are basically increased weighting applies to things like cash flow and profit or goodwill.

As a quick example if a business is earning for example 100k per year and the owner is selling it a typical valuation for that industry might be a 5x multiple of income . So your purchase price now becomes a half million dollars. That’s ashen a franchise purchase and the ability to get funding for it becomes a lot more attractive.

Naturally if your franchisor is doing well you're looking at buying, hopefully at a reasonable price, a proven business model, and a well known brand that is growing in popularity.

Ironically, and we certainly don’t think it has to be the case, but financing and funding for a franchise loan often becomes a huge challenge for clients we talk to . Why? For some simple reasons, a lot of them simply human nature. Buyers of a franchise don’t understand the qualifications, and they come with pre conceived notions that the banks and other commercial finance companies wont want to and don’t finance this type of business.

The reality is that franchise lending is in fact alive and well in Canada, with most lenders recognizing the huge part that franchising plays in the Canadian economy.

So how do you identify a ' favorable' financial lending solution for financing your new business? Certainly we tell clients that they shouldn’t expect a lot of help from their franchisor, whose job it is to sell franchises, not finance them with their own capital.

The majority of franchises under 350K in Canada are financed by the BIL/CSBF program, which is a government loan that is guaranteed in large part to the lenders who participate; in most cases this is Canadian chartered banks . The terms are very favorable - we repeat very favorable. They include long amortizations, great rates (we think) and minimal personal guarantees.

The challenge for the prospective franchisee is simple locating a bank or franchise financing expert who has the knowledge to package a transaction that meets the criteria of the program. Many clients tell us they were declined initially simply because their package was poorly or incorrectly prepared, and we can assure you, it not rocket science.

Not all banks and BIL/CSBF lenders are the same. So seek and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with how to buy a franchise, and finance it with a loan that makes perfect funding sense.





ABOUT THE AUTHOR -

STAN PROKOP - 7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING

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