Understanding ( And Getting ) A Canada Government Small Business Loan – SBL Loans 101!

How To Smooth Out the SBL Loan Process For Business Financing Success

Information on the Canada government small business loan . Understanding the process of Canadian ‘ SBL Loans ‘ and qualifying for approval .



Understanding. Getting. They might seem a bit unrelated, but in the context of a Canada government small business loan boy do they make sense. Let's examine how SBL (small business loan) loans work in Canada. And won't it make sense that understanding the process around this program will allow you to get approved and funded! We certainly think so.

We'll examine how the SBL loan is evaluated in Canada, what your expectations should be, and provide you with a clear road map of business financing success with SBL loans.

Clients often come to us with experiences of frustration around the program. A common complaint is that whoever they have spoken to about getting approved for the loan seems disinterested at best. And don't even start to talk to us about timeline, that’s the other frustration around the program. So is it the banks fault, or yours. Let’s examine who's to blame.

First of all, some key basics on the program - since if you don’t know what it is you can’t deal with it, right? The Canada government small business SBL loan is the Canadian version of the U.S. ‘SBA’ program. In Canada it’s sponsored and regulated by INDUSTRY CANADA in Ottawa, but it’s actually the Canadian chartered banks that provide the financing for the program. Thousands (in 2010 over 7000) Canadian businesses are funded every year under this great program. The maximum loan amount is $ 350,000 and we can assure clients that rates, terms, structures, as well as the limited guarantee component is very appealing.

So back to the question ' who’s to blame’ when the program doesn’t work for you. It is only common sense that the banks want to ensure that they adhere to the program guidelines. And it sure helps if you don’t have a bank that is unfamiliar with SBL loans. And if you run into a banker that is somewhat daunted by the paperwork details of the program that only complicates the situation.

So what is the take away then on this key point? It’s simply to find and work with a banker who is very familiar with the program. All you need to do is ask, and there’s even an easier way than that, which will comment on later.

Naturally we commiserate with the bank on applicants who aren’t prepared. We are guessing the Canadian chartered banks don’t make a ton of money on these loans, at the same time they require a fair bit of operating costs and reporting under the program.

Is there a way we can clearly summarize the road map for success under the small business loan SBL program? When credit trainees in any aspect of lending start their careers they are told to focus on the 3 C's of credit extension – character , capacity and capital.

It occurs to us that that are a great way to create your own mini road map on SBL approval. Demonstrate to the bank your business experience and personal credit rating, demonstrate in your business plan how your business will have the capacity to repay , and , with respect to capital, make sure you have the required 10% permanent equity down payment under your loan request.

Want a fast track to both understanding the Canada government small business loan program? Easy to do. Speak to a trusted, credible and experienced Canadian business financing advisor who can work with you and a top notch SBL banker to get you the business financing you need - quickly!



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/canada_government_small_business_loan_sbl_loans.html

Canadian Franchise Financing Loans ! 3 Things You Wish They Had Told You About A Business Franchise Loan

What You Need To Know To Finance A Franchise In Canada

Information on how to successfully obtain a business franchise loan in Canada. Financing loans for franchising success . Use these key pieces of advice to make entrepreneurship a reality .



If only I had known! That's one of our clients talking about a business franchise loan in Canada. The financing loans for franchising in Canada is often a major challenge.

Let's examine 3 key areas of the franchise financing dilemma and help you get to the goal line on what is surely one of most rewarding and sometimes daunting business journeys that you have been on.

And what are those 3 things you sure wished they had told you previously? They are as follows - there is a unique program specially designed to cover off the majority of franchise financings in Canada. Who knew! Secondly certain aspects of your franchise business can be financed, certain things can’t. You need to know what's what and plan accordingly. Thirdly... it’s all about that word plan, because if you are 100% prepared, with a basic package, your chances of getting a business franchise loan financing approved increase commensurately. We can pretty well guarantee that.

We have always agreed that a franchise purchase in Canada is a great way to balance entrepreneurial risk. The range of opportunities available to you seems to grow every day, and if you are working with the right people and the right institutions you're in a position to capitalize on that success.

We talked about the necessity to be prepared. There was a study done in the U.S. and we're pretty sure it mirrors the Canadian experience, that over 80% of loans to new small businesses ( that’s kind of what a franchise is , wouldn’t you agree ?) are declined only for the one reason that the applicant wasn’t fully prepared with respect to a quality package of basic information.

And what those business folks hear about how basic some of those requirements are it must be downright embarrassing to know franchise financing loans weren’t approved simply because you didn’t cover off the basics.

We also point out to clients that a business franchise loan in Canada can cover of purchasing a new turnkey location, and in fact can also pertain to financing an existing franchise within the chain you are focusing on. This scenario of course requires full co operation and disclosure from both the current franchisee as well as the franchisors permission for you to complete the transaction.

Many franchisees ' turbo charge ' their chances of financial freedom and progress by adding additional units to a franchise they already own, thereby building their own mini empire! All power to them of course. We do caution clients though that it’s important to set up separate legal entities for each of those locations from a view point of risk and accounting implications.

So, what can be financed, and what can't. Typically what are financeable in a franchise scenario are leaseholds, equipment, real estate if applicable, and items such as software of POS systems. What is not financeable, much to the chagrin of a lot of our clients is inventory, as well as the franchise fee, prepaid rents, consulting you may have needed, etc.

The Government CSBF/BIL program which is administered by the banks is your quick and accessible solution for franchise financing under $350,000.00. It works great for starting any new business, and rates, structure and other aspects of the program such as limited liability make it almost perfect for what you want to achieve.

So... if only you had known! But now you do. So speak to a trusted, credible and experienced Canadian business financing advisor for franchise financing loans that make sense and are achievable under your personal circumstances.


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_franchise_loan_financing_loans.html

A Canadian Business Financing Epiphany ! ABL Asset Based lending Is The Quiet Revolution In A Business Line Of Credit Facility

Canadian asset based lending - Business Lines of Credit


Information on asset based lending and financing in Canada . Why an ABL facility is one of Canadian businesses best form of business lien of credit finance .




And that's when it hits you. We're talking about a Canadian business financing ' epiphany' - that being the term used for a ' sudden, intuitive perception or insight '. And what exactly is that ' insight'. It's simply that an ABL facility, which is the asset based lending term for business line of credit is different, and in many ways a lot better than traditional term loans or Canadian chartered bank facilities.

So, that’s a fairly dramatic statement, so let’s set out to provide some facts and valuable information on these business revolving credit facilities.

Canadian businesses use ABL financing to leverage their assets, typically receivables, inventory and equipment into liquidity for working capital and cash flow. The most common question we get around this type of business financing is ' Why is an ABL facility different than a bank line of credit? Fair question, right?

The answer is simply as follows - it’s your asset values that determine the amount of business credit line you are eligible for. Banks view business lines of credit in Canada in an entirely different manner. It’s just a different way of looking at things. Asset based lending looks at the assets themselves as the ' prime ' collateral. In the cases of banks they look at whats important to their criteria, which are typically historical cash flow, profitability, a balance sheet that has reasonable debt, outside collateral, etc.

It's this difference then that is what becomes almost shocking to a degree on Canadian borrowing for business. Just imagine, no ratios, covenants, reliance on personal guarantees, just a focus on the assets themselves. And the more verifiable assets you have the more you can borrow.

Therefore the key advantage to this type of borrowing and financing is that the ABL facility accelerates that cash flow and allows your company to access all its working capital needs as you grow. Naturally it goes without saying that your company now has an alternative to taking on additional debt or having to dilute some or a large part of your equity ownership. Remember, almost always equity is much more expensive than debt in the long run.

Is every one eligible for an asset based lending abl facility? The general answer is yes. Junior type asset based lending and financing facilities for inventory and A/R can start as low as 250k and quite frankly there is really no upper limit for facility size. Unbeknownst to many some of the largest corporations in Canada utilize this type of financing, having forsaken bank lines of credit in the traditional sense.

Eligibility always is a key question from clients. Whats required? is really their question. First of all you have to have proper financials and be able to maintain solid reporting records on key assets such as receivables, inventory, etc. We don’t necessarily consider it a downside, but it is safe to say there is a bit more monthly reporting in an ABL facility , if only for the reason that its all about the assets, not the ratios and covenants you might be used to now .

The advance rates (how much you can borrow!) are significant in asset based lending. A/R is typically margined at 90%, and inventory (yes, inventory!) is anywhere from 30-70% depending on the type of product you produce/sell.

So, that’s the epiphany! Just that sudden insight that threes a quiet revolution going on in business financing that you might want to check out. Speak to a trusted, credible and experienced Canadian business financing advisor on the merits of ABL 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/abl_facility_asset_based_lending_financing.html

Looking To Fund Your Business ? 5 Tips On Start Up & Small Business Finance Companies And Banking In Canada

Strategies for Working Capital and Financing Success

Information on how to fund your new or established business in Canada . Advice for Working with finance companies for loans and banking success for cash flow and working capital needs .



It sometimes seems that when you're bigger things always seem a bit easier - not always but most of the time.

That’s why when you are looking to fund your business and you're a small to medium sized business owner or financial manager knowing which firms and finance companies are appropriate to deal with seems like a challenge. And business banking from a borrowing perspective seems like a huge challenge.


And another thing, if it’s not all the time, it’s sometimes, because at certain points in your company's growth and history you are looking for business funding of some sort. What are the options - who can you turn to? Never fear... real world advice is here!

Business financing to either start or grow your business is available in a variety of ways and solutions. Let's examine 5 key topic areas.

The number 1 solution, as perceived by many business people is banks and commercial credit unions. However, perception is certainly not always reality as many have discovered. However if you are in a position to demonstrate to the bank that your own pockets (i.e. your own money!) is committed to the business then they are certainly a good place to start.

Want to know who we think is the absolute best bank in town? We’re sure you do, and here’s the answer, its one that houses a banker who is committed to grow and understand your business.

One of the best programs offered by the bank is co sponsored by the government, it’s the SBL loan program, providing you with great rates, terms and structures, and even limited personal liability for the financing.

Point # 2 -There isn’t a day when we don’t get a call asking us for some assistance on government grants. There are probably hundreds , if not more , of government grant programs - our own opinion is that they are often difficult to qualify for and at the same time chances of approval on non repayable funds is , suffice to say, slim . We will add though that the SR&ED program is probably the best program in this area, although its not a grant per se. Check it out though if you feel you qualify.

Grant programs are often targeted to very specific cultural or environmental issues , and many come with strings attached, such as matching funds only, etc.

So focus on getting sources of capital to borrow, not give you!

Point # 3- Talk to a Boy Scout. That’s because that organizations motto of ' BE PREPARED ' runs very true in business. Your ability to present yourself, your background, your historical, present and future financials is critical to obtaining business financing from finance companies and banks in Canada. Many clients seem either overwhelmed with how to do this properly, or quite honestly just aren’t qualified. We are all experts inn our own area of expertise, right?

Solid professional assistance from your accountant or Canadian business financing advisor is steps away, and at a nominal cost, all things considered.

Tip # 4- We all know whats in it for us when we borrow funds in a banking or non banking facility. But whats in it for the lender? Never forget that point. Finance companies in Canada are based around risk and reward. Most business owners don’t realize that business financing in Canada is available from a rate of 3% per annum to 3% per month. All types of assets can be financed or monetized. Companies in bankruptcy proceedings can even borrow at low rates. It’s all about the assets, the rate of return, and how you put together your business funding request.

Tip # 5- Always is prepared to deliver on some level of owner equity, i.e. your own contribution into the business. That can be via a cash injection, retained earnings in the business, or assets that aren’t already collateralized.

So, Canadian business financing. It comes in many forms. Receivable financing, equipment finance, working capital cash flow loans, asset based lending, franchise financing, tax credit finance, etc. Speak to a trusted Canadian business financing advisor on how to fund your business, and which finance companies and banking partners are appropriate for you.



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/fund_your_business_finance_companies_banking.html

Lot’s To Gain & Nothing To Lose . 4 Tips On Best Leasing Companies For Asset Business Financing

Canadian Equipment Lease Financing Advice


Information on leasing equipment companies in Canada . What to thoroughly investigate prior to financing business assets .



Since when is some good information that helps you save money and get a good deal in business not a good thing? That's our feeling, so when you are looking for leasing equipment companies in Canada for the financing of business assets here's 4 tips on just that!

Many Canadian business owners and financial managers often consider equipment financing a relatively simple process. It is, if you know who to deal with, what to ask, and what some of the pitfalls might be.

That simplicity is often masked by some key tips and strategies you can employ to save you thousands of dollars, both now, and later. It's frankly all about business decisions that you need to make both now, and later at the end of your equipment lease. In general terms these considerations can be lumped into several categories - financial, risk, tax, accounting and legal.

All of a sudden that lease for the new computer system might not seem so simple, right? At the end of the day you want to ensure you have made the right decision, so as to warrant that financing your assets was better than purchasing or borrowing for them . Until you understand our 4 key tips you can’t make that decision! So let’s dig in!


First of all, exactly what are you looking for? We can see the puzzled look on our clients face already. ‘Haven’t we already told you, a lease!)? But what we mean is that there are different types of leases in Canada, in some cases you want to spend a decent bit of time investigating operating leases, which have different consequences before, during and at the end of the term of the lease. In many cases these payments will be lower, but you will be faced with 3 different options at the end of the term of the lease, for returning, purchasing, or extending the transaction.

If you want a simple finance ' lease to own' that becomes a much more straightforward transaction.

Tips # 2- Who do you actually deal with? In Canada leasing equipment companies are thriving - there is solid, healthy competition and business is quite frankly booming. Your choices on who to deal with are several - independent financial firms who are non bank in nature. Banks in Canada have again embraced leasing so you are in a position to talk to a bank leasing entity also. Their rates and terms are excellent of course, except for one caveat which we will discuss shortly. Suffice to say the ' credit approval’ bar is a bit higher in bank leasing in Canada.

You can also deal with captive or vendor finance firms, who typically are aligned with the manufacturer of the equipment. They are clearly
incented to finance you, because they also make the product!

One very solid solution is to also deal with a lease finance intermediary. Good ones (yes, there are not so good ones) can ensure you have access to great rates, terms, and structures, also saving you a lot of time. Respected intermediaries will bring a tremendous amount of value to your transaction, so check their ethics and reputation and experience. Ask for examples of transactions completed.

TIP# 3 - Lets talk about who to deal with for business financing of your lease transactions if in fact you choose the independent lease company route. Naturally you want to be aligned with firms that have a good reputation, can provide competitive rates and funding, and if they in fact have the capital to complete your transactions. (They borrow money too don’t forget!) Documentation is key in good leasing equipment companies, look for straightforward doc's.!

Tip # 4- If you do in fact choose a bank leasing firm find out how the lease transaction fits into your general borrowing agreement . By financing with a bank have you restricted your ability to borrow more in the future for operating needs?

Got a lot to worry about these days in business, and business financing. Who doesn’t?! Consider talking to a trusted, experienced and credible Canadian business financing advisor on your asset financing needs. As we said, lots to gain, nothing to lose.




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/equipment_leasing_companies_business_financing.html

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