Why Canadian A/R Finance Is Your Optimal Business To Business Lending and Cash Accounts Receivable Finance Strategy

Use A Confidential Receivable Finance Strategy to Beat The Cash Flow Problem !




Information on Canadian accounts receivable cash financing . Why this business to business lending strategy can work for your firm.



It's a simple fact, if your business is growing a business to business company such as yours needs a ' business to business ' lending solution. That’s even more of a pronounced need when your growth is outpacing your financial means. That's when Canadian business owners and financial managers look for an efficient , yet flexible means of financing their growth the solution of cash accounts receivable financing often comes up .

Let's explore why this solution might in fact be the ' optimal' one when it comes to business finance.

Of course it’s safe to say we can’t save the patient if we don’t know that the cure is. So let’s examine exactly what this solution does. In cash flow financing, aka ' factoring', aka' receivables financing' its all about generating working capital and cash flow. It’s on paper a very simple procedure... we dont make it complicated... many do! You simple agree to sell your receivables, as you generate them for an immediate cash advance.

If you utilize the U.S. method of this type of financing you also have the ability to remove all or at least a part of your bookkeeping, collection and risk from your company’s daily procedures. While that is a good thing in fact our recommended and favorite solution for this method of business financing is a confidential receivable finance facility that in fact allows you to bill and collect your own receivables without any notification to your suppliers, clients, etc. More about that later though!

We also mentioned that this business to business lending solution allows you to sell, and generate cash flow for your sales as you make them. One technical point we should clarify is simply that it’s your choice, you certainly don’t have to finance all your A/R, and you can finance it 15 or 30 days from your billing if you choose, if you need cash flow.


So, cash flow. How much exactly do you receive when you sell an invoice or your ongoing A/R in a regular manner? We can typically say that in Canada you will receive 97 -98% of your receivable. That’s based on a 30 day terms of sale. You receive approximately 90% when you make the sale, and the balance is paid to you when your client remits, lets that 2-3% discount fee which effectively becomes the finance charge.

So, why in the heck would you do this? For the following reasons: Many firms simply don’t have the balance sheet or personal resources to finance growth. When you grow so does your inventory and receivables. They become an investment, and cash accounts receivable financing turns that investment into cash flow on your balance sheet. M\

Additionally many firms in Canada use ' trade credit’ as offered to their customers to maintain strategic relationships, i.e. keep their clients. You are now in a position to offer, should you choose, extended terms to your client - because, as we said, you get paid as soon as you generate sales under our business to business lending solution.

In many cases we talk to clients that have one of large opportunities. It could be a large contract, new major sale to a new client, etc. This solution gets you to the goal line.

So, the bottom line? It's simply that a true business to business lending solution such as receivable finance gives you very predictable working capital - bottom line your company is now liquid, and that’s a good thing.

Speak to a trusted, credible and experienced Canadian business financing advisor as to how you can implement a confidential cash A/R financing solution that makes sense, and works!



Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

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

4 Tips For Best Lease Of Equipment And Commercial Leasing Rates For Canadian businesses

Canadian Equipment Lease Financing


Information on how Canadian companies can get the best commercial leasing rates and terms . What you need to know about lease of equipment strategies when using winning lease finance strategies.



Let's discuss some ' inside edge' tips, secrets and strategies on how Canadian business owners and financial managers can get solid commercial leasing rates when they consider lease of equipment and asset financing in Canada .

We'll focus on 4 specific areas, but at the same time we'll delve into other aspects with one main focus - saving you money.

So, first of all, what are 4 critical areas for you to assess when financing an asset. For a starter be familiar with the type of firm you are dealing with. It's not necessarily about their reputation of stability, (although that’s a good thing!)... It’s as much about the type of firm relative to the asset you are financing. Ensure you are working with a firm that has an appetite for your asset type and dollar size... and credit quality. Your firms overall credit quality drives commercial leasing rates on equipment to a great degree. Many players in the industry can actually approve your firm for asset finance without a tremendous amount of financial disclosure - typically that means financial statements.

On the other hand, you can often attain better pricing if you provide a solid financial package that includes historical financials, year to date interims, or even forecast of sales, profits, cash flow, etc.

In Canada there are hundreds of financing entities that consider lease equipment as a service they provide. Knowing who they are, what they do, and how they approve transactions is valuable information that will ultimately affect your pricing.

Tip # 2 today... it’s all about ' end of term'. Do not, we repeat do not consider the lease of equipment without understanding your end of term options. For many lease companies the entire strategy around their pricing is not reliant on the ‘ interest rate ' on your transaction, instead its all about what happens 36, 48, or 60 months out when your lease is up .

There are numerous ways that lease finance companies in Canada maximize lease profits ( from you !) by structuring end of term purchase options, renewals and notifications around those renewals, as well as the most basic, disposing of the asset at an additional profit . Bottom line, understand end of term!

Tip # 3- Fees. They are all over the place these days. Many are reasonable and warranted, such as commitment fees if appropriate (sometimes they are not!), registrations fees, appraisal fees, pre auth banking admin fees, etc. As we said, many are reasonable, some are not, but all are negotiable to a certain extent. Understand the total cost of your financing is the bottom line.

Tip # 4- the down stroke. Down stroke? That’s the industry terminology for down payment or security deposit. Ensure you have the financial effects of this type of payment factored into your overall lease pricing. If a down payment is require prior to final approval ensure your firm understands what will happen if the transaction is not approved.

Canadian equipment lease financing is one of the most powerful strategies used by 80% of all businesses in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor on how you can maximize the benefits while getting the best commercial leasing rates of equipment lease finance 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/lease_of_equipment_commercial_leasing_rates.html

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