Chimp Simple! Explored The Canadian Government Loan? Get The SBL Guarantee Difference!

Why Not Your Business ? Why Not Now?

Information on the Canadian government loan SBL. Use their guarantee for your business.



Chimp simple? That comment came from a client the other day, and we can think of no better way of using that expression for the Canadian government loan program, aka the ' SBL ‘. (Small Business Loan). And as you know, the old expression is ' even a monkey could ...’!

So is there a way of addressing the SBL government guarantee program in a way to actually keep it simple... and quick? We sure think there is, and here's how.

Most business owners have finally realized that local bank approval of your business financing loan rarely is local anymore. In fact it never is period. What complicates this matter further is that while the Canadian government SBL loan is sponsored by the gov't in reality the banks run the program. Therefore you have to know what you are doing to effectively and quickly move through what many perceive as a complex process. Trust us... it is not!

Once you understand the players you're now in a position to understand the process. So focus on a solid loan package that will be easily evaluated by your banker for submission under the government SBL guarantee guidelines.

Just to clarify, you are only personally guaranteeing 25% of the loan, and the government guarantees the majority of the loan to the bank. Simple so far, right.

All that's left is the basics which we maintain is not complicated at all. Those basics include a basic business plan or very strong executive summary, some cash flow forecasts (bankers love them, trust us on that) and some very traditional what we will call ' back up' info on yourself and your business - items such as your personal net worth form, confirmation of no tax arrears, and your ability to demonstrate that you run your personal financial life in a responsible and reasonable manner. (That is validated by your credit bureau report)

So as we have demonstrated here , there is no long chain of approvals here, just the recommendation of your banker , the completeness of your package, and a final review by an underwrite you will never meet .

So why are we trying to satisfy someone we'll never meet. Simply because if you have properly addressed the 4 or 5 key things you need to support your loan request there should be theoretically no reason for an underwriter to not approve your loan. In Canada currently SBL guarantee loans max out at $ 350,000.00 and cover a variety of financeable assets such as equipment, leaseholds, application software, computers, etc.

So why do many clients share experiences of unsuccessful Canadian government loan approvals. We put that down to communication.

You simply haven’t communicated a strong package that you and your banker can articulate as having the small handful of basics required for the program. And at rates, terms and structures equal to those of larger firms you can’t afford to not get this financing that otherwise might not be available under normal borrowing circumstances.

So, is it all really Chimp simple?! We still maintain it is, so speak to a trusted, credible and experienced Canadian business financing advisor who can put you efficiently through the process and on the road to small business financing success.




Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com

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


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

Want To Buy A Franchise? Need A Loan ? Here’s Your GPS to Loans for Franchises in Canada!

A Roadmap To Successful Canadian Financing For Franchises


Information on the proper method of obtaining a franchise loan in Canada . Loans for franchises are significantly different than regular business loans. Use this information as a roadmap and guide to franchising success when you buy a franchised business.





So... you want to buy a franchise. Why then our analogy to a GPS system? Simply because that type of gadget these days provides you with a road map for not getting lost, and from our perspective getting a franchise loan is the last place where you want to be lost and not knowing your position . Make sense? We think so.

Loans for franchises in Canada can be a combination of an exhilarating process and a frustrating one - the former referring to being approved and the latter referencing our conversations with clients who have been frustrated by the process.

Let share some solid ' road map' type information on ensuring you minimize the time and risk when you buy a franchise and consider a franchise loan. The reality is that in many ways we could make a case that ownership via a franchise business is actually significantly less risky that other types of businesses which are viewed as 'start up ' in nature.

The challenge becomes knowing which institutions and programs will make your franchise investment happen. It's a common fact that a large majority of business funding requests by entrepreneurs fail simply because they are poorly presented. So knowing how you can easily prequalify yourself, and putting together a basic package that presents yourself and your new business in the best manner is well, worth its weight in ' money ‘!.

In Canada franchises can be financed from a turnkey point of view, or in some cases you may wish to acquire a franchise from an existing franchisee in the system you are looking at. It's ironic, but one of the lesser know but larger challenges in the Canadian landscape is the ability of current franchisee's to add additional units to their first location .

So is it possible to prequalify yourself? We assure clients that a large part of that process can be done by themselves. They must demonstrate some level of either specific industry or general business experience, while also showing the lender that they have run their personal lives from a financial perspective in a manner that reflects solid stewardship. That means having a solid credit bureau score (650 tends to be the magic number) and it certainly helps to have assets such as a home, savings, etc.

We don’t suggest or recommend to clients that they leverage all or a very large amount of assets when considering loans for franchises. But certainly anywhere from 10-50% of a purchase price typically needs to be covered off by the franchisee. That’s your ' owner equity '.

You establish the amount of financing you need by putting together a fundamental business plan around your opening balance sheet. That will reflect your own cash investment, funds you have spent already, and what is needed to get you to a turnkey grand opening! That typically is equipment, leaseholds, perhaps real estate, etc.

In Canada franchise loan financing is generally done via an independent commercial finance company or the bank. But when we say the bank we are actually referring to the CSBF program which has provided thousands of franchise loans at terms typically enjoyed by established businesses.

So is there a guaranteed GPS road map to a business franchise loan. Never 100% but you can get very close to that by pre qualifying yourself realistically, putting together a solid package, and ensuring you know who finances loans for franchises in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor for access to your road map for financing success.



Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


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

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

You’ve Got Questions . We’ve Got Answers . The ABL Asset Based Lending Facility Is The Credit Revolver Loan You Need

Business Lines Of Credit Spell The Difference Between Failure and Success

Information on ABL asset based lending in Canada . Common questions and straight forward answers on a credit revolver loan for your company .


Being well informed in any area of business is critical, and business financing is certain an area that comes under that category. Lets examine 5 typically client questions on ABL asset based lending in Canada, and why this type of business credit revolver loan (it’s not a loan by the way) can help your company through growth and or challenging times.

Question # 1 - It’s a simple one. What is ABL? The term is actually used in many ways ( ABL = asset based lending ) but in our context today is a revolving credit line which Canadian business owners can draw down on . Collateral for the facility is typically your A/R and inventory, but can include miscellaneous assets such as equipment, real estate, tax credits, etc. All these assets are collateralized and become your firm’s new line of credit facility based on the ongoing fluctuating values.

We said an ABL credit revolver loan was not a loan per se, and that’s an important distinction. No debt appears on our balance sheet, you are just monetizing current assets on an ongoing daily basis. Canadian business is graduating more and more to ABL types of business credit if only for the reason that it gives them more borrowing power than a traditional Canadian chartered bank business credit revolver.

Question # 2 - Why in fact are businesses moving to or considering this type of facility? Our answer here is pretty simple, and we have touched on it already. It’s the fact that you now have the ability to generate cash flow more quickly to support growth. Your firms new found ability to create faster asset turnover increases profits. It’s a solid alternative to borrowing via long term debt, of the dreaded giving up of owner equity, never a great solution for business owners. We point out also that pretty well every firm in Canada that has business ' current assets' is eligible for some form of asset based lending . Small facilities tend to be 250k and up but the large mega corporations in Canada also use this method of financing, there is no discrimination when it comes to an ABL revolving loan. And by that way, that includes public companies also.

Question # 3- Is the difference in new credit facilities actually worth considering the move to an asset based line of credit facility? We're biased of course, so you decide. Typical bank credit lines margin receivables at 75% and inventory anywhere from zero (yes zero) to 50% typically. ABL facilities get you approx 90% of A/R and inventory financing can go as high as 70% in many industries, depending on your type of inventory.

Question # 4 - Our company is having some challenges in a number of areas, are we still eligible. The answer is a resounding yes, yes, and yes! Whether you are a start up, established, or even in bankruptcy or receivership proceedings (you heard us right!) you are always eligible for this financing, as long as you have one thing - Assets!

Question # 5 - Where can we find out more? Speak to any trusted, credible and experienced Canadian business financing advisor on the merits and tangible benefits of ABL asset based lending. There is no better way to finance your firm in current times.



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_asset_based_lending_credit_revolver_loan.html

Business Lines Of Credit Make The World And Your Company Go Round! Canadian Working Capital And Secured Facility Information .

Smart Businesses Have A Business Line Of Credit

Information on business lines of credit in Canada . How does a secured facility work and why is it necessary to have a working capital revolving credits.



Did you hear the one about the Canadian firm that went out of business because they were too profitable and growth was great? That's an ironic statement to many business people, but the reality is that profits don’t equal cash flow and business lines of credit via a secured facility is the capital you need to survive all that success .

It's actually pretty simply when you think of it but because your firm has made that investment in accounts receivable, inventories, and other working capital assets you need operating loans to make your business work - on a day to day basis.

It's pretty safe to say that if you running out of cash or working capital, whether you're a FP 100 company in Canada, or all the way back to a start up is a concern for any business person , And of course the business papers are full of those stories everyday .

So that’s put us squarely in front of the bank with the proverbial tin cup in hand !Yes there are numerous alternate sources of cash flow and working capital, but our focus here is on bank secured lines of credit . Oh, by the way, there aren't really business banking unsecured lines of credit for your business, so we're in a narrow field here!

Canadian chartered banks do it a bit differently when it comes to operating lines and lines of credit. They take an assignment of your assets (just in case!) and wrap this security agreement into a demand loan type arrangement. These are typically reviewed on an annual basis.

How much you ' get ' from your secured facility is, in general, pretty standard. Typically that’s 75% of what is called your ' eligible ' receivables, which are those clients of yours under 90 days and within North America. On occasion clients that have extensive foreign receivables are required to compliment business lines of credit with export credit insurance from government organizations such as EDC and some other private firms.

Inventory margining under business lines of credit is a bit trickier. It is rare you can achieve 50% borrowing value, and all sorts of analysis might be required on the type of inventory you wish to finance.

Giving due credit to the banks its safe to say that any type of inventory financing for capital purposes is risky, and any lender rarely gets back what they have loaned out on this asset class.

One of the areas that work well under a secured capital facility is that your borrowing is your own business. There are no client notifications, and your customers would really only be notified in the event of a default by your firm. In this case your customers would be asked to pay the bank directly, which only makes sense.

If there is one danger area in a business line of credit it is simply the fact that your business should use these funds for short term working capital. Taking these funds you have borrowed on a short term basis to buy equipment or make longer term corporate investments generally leads to problems.

If you're uncomfortable with banking terminology, which banks offer what business services, or want to learn about any potential downside in business banking consider speaking to a trusted, credible and experienced Canadian business financing advisor.




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_lines_of_credit_secured_facility_capital.html

Getting The Most Out Of Canadian Lease Pricing and Best Lease Rates? Here’s How Capital Equipment Finance Works

Canadian Lease Financing – Rates and Terms



Information on capital equipment financing in Canada . How can Canadian firms attain best lease rates and lease pricing that is attractive for asset acquisition finance strategies.



How can we get the most out of lease pricing, including by the way getting best lease rates in Canada what we access capital equipment finance via an equipment finance strategy? That’s a typical client question and we'll explore some answers, tips, and strategies in that area.

If there is a threat or disadvantage to equipment financing in Canada it’s a pretty simply one - being unaware of what areas can impact the advantages of a lease, for example a simple ' end of term ' option.

We wouldn’t want to count the probably thousands of firms in Canada, both small and large that fail to both understand, and then invoke their financing option when the lease ends. Ironically the more sophisticated and larger corporations in Canada even do worse on this one simply because they are too big and their systems ' forget ' whats going on within the tens or hundreds of equipment leases they manage.

So how can an end of term option be costly ?You quite frankly wouldn’t believe it, but the reality is that many leases are structured , and documented, by the way to make your firm keep paying if the notice or obligation you signed up for isn’t handled properly .

So by not returning, buying, or formally extending a transaction you are now in the position of pretty well ‘paying forever’. And that’s not a good thing. Imagine leasing, for example, a 25k large document copier or some other business asset, paying for it in full of 5 years, with interest of course, and then paying for it again. Wow! Oh, and by the way, that asset has depreciated and has been replaced by newer technology. Now how do you feel?

In Canada the Canadian capital equipment finance industry, the ' lessors ' are in a position to offer you a variety of pricing options. It is that variety of options that can really confuse Canadian business owners and financial mangers.

You can simply lease pricing in Canada , and achieve best rates at the same time by doing some basic homework around the two types of leases , capital ( aka lease to own ) and operating ( aka lease to use ).

If you are looking to finance assets that depreciate quickly or must constantly be upgraded to keep you company ahead of the curve then an operating lease strategy really works - Computers and computer systems are a classic example of a solid use of an operating lease . The benefits include lower monthly payments, return and upgrade flexibility, and your ability to simply replace the system or technology at the end of term. That’s when best lease rates are truly achievable when compared with lease to own type strategies.

Simple lease finance strategies can also lower that monthly payment - they might include a bargain purchase options at the end of the lease, which simply lowers your monthly payment and allows you potentially to refinance that end of term amount later on.

In Canada your interest rate on lease financing is determine by your firms credit quality, as well as the type of asset you lease, and who you are dealing with. The industry is very segmented and fragmented, so the right lessor as a partner can save you thousands of dollars over the term of a financing relationship.

To achieve best lease pricing, as well as terms, speak to a trusted, credible and experienced Canadian business financing advisor who can help you maximize the benefits of this powerful capital equipment finance strategy used by thousands of business owners everyday.





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_pricing_best_rates_capital_equipment_finance.html

Nightmare On Receivable Financing Street ? Understanding How Canadian Business Factors Price A/R Factoring In Canada

Understand And Achieving Good Factoring Rates in Canada


Information on receivable financing in Canada . How to win the rate game at factoring and business factors pricing .




Sounds like a great name for a movie right? Well, maybe not, but Canadian business owners and financial managers seem to have one large struggle with the cost of receivable financing from Canadian business factors. But when you understand how the cost of this finance vehicle works then factoring, aka ' receivable finance ' suddenly becomes a lot more clear, and desirable. Let’s explain.

In A/R finance it's all about making the use of your second most liquid asset, your receivables portfolio. (Cash is of course a bit more liquid!)

So when you understand the true cost of the method of Canadian business finance you all of a sudden potentially realize that you are immediately more productive from a working capital and cash flow point of view.

When we step back it's somewhat immediately obvious that your uncollected A/R is only doing one thing on that left hand side of your balance sheet. Its both unproductive, hasn’t allowed you to realize your profits, and in effect is costing you money. That's a triple threat for sure!

So why then is the cost of the receivable financing solution from Canadian business factors such a mystery or concer? It’s simply that the issue is either poorly presented, or more commonly, just plain misunderstood.

While the business owner or his finance person stares into the cost of A/R finance he often forgets the carrying cost of his A/R portfolio that stands there uncollected. This can be analyzed and calculated in a number of ways, including the discounted cash flow model, but we don’t want to get too overly technical when in fact things can be explained a lot easier than that.

If you are going with a traditional method of a/r finance in Canada (and by the way, that’s not our favorite or recommended one - we prefer ' confidential receivable finance ') the other factors that affect your a/r costs are administration around your collections, the lost sales you are losing by having to instead carry your a/r, the financing costs you currently are absorbing, and of course the cost of a potential bad debt if the receivable is uncollected.

As we noted, the best solution, in our opinion, for factoring in Canada is a confidential invoice financing facility whereby you bill and collect your own receivables without any interference from your finance partner. At the same time you receive all the benefits of factoring, which include immediate cash flow advances on your A/R, allowing you to operate, and grow. This facility, as well as more traditional one offered by many does in fact take care of the time cost of your current A/R.

Receivable finance actually is a lot more simple a process then you think. You receive the cash from selling your A/R on an ongoing basis, giving you the ' opportunity ' to reinvest cash more quickly into your business. In Canada A/R financing ranges in the 2-3% area assuming a 30 day collection period from your clients.

Depending on how you allocate your time, admin, lost opportunity, and current financing costs you might find by some carefull analysis that your current costs are anywhere from 10-20% on a 2-3 month uncollected receivable .

Bottom line today? Simple. Understand the costs of your current a/r financing and investigate how you can turbo charge your cash flow via a receivable financing solution . Speak to a trusted, credible and experienced Canadian business financing advisor for help on cash flow finance.









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_financing_business_factors_factoring.html

No Brainer Financing - Equipment Funding and Leasing Services In Canada

Smart Asset Finance In Canada Starts With Leasing


Information on equipment funding and leasing in Canada. Utilize asset finance services for maximum benefits and minimal downside risk .


The business ' no - brainer '. A sometimes overused term that means of course an easy solution that’s ' obvious'. That’s more or less how we feel about equipment funding and leasing services in Canada. Let's explain why.

Given the amount of businesses that use lease financing in Canada (approximately 80%) it’s clearly a fact that whether your firm is a start up or one of Canada's major corporations that leasing services in Canada solves asset financing challenges and problems. Rarely does one form of Canadian business financing address the ' numbers' and ' budget' challenge so effectively.

We supposed that if you consider that Canada's FP 100 largest firms consider leasing a ' sophisticated ' method of financing assets that it’s a little difficult to imagine a small start up business using the same financing vehicle, but the reality is, its one size fits all!

Part of the ‘ no brainer' aspect of equipment funding is simply the fact that every type of asset can be financing, including by the way intangible assets such as software and service type contracts.

Business owners sometimes do however actually miss the key basics of lease finance - it’s the lessor who owns the equipment, and you are paying, in effect ' rent ' to use the asset. Naturally at the end of the term of your transaction, depending on how you have structured the transaction you can either own the asset, return it, or invoke other types of flexibility - i.e. temporarily extend, etc.

It's the lease contract, either through a ' master lease ' or simply a one time transaction document that specifies your rights and obligations. Lessors in Canada register their lease under Canada's Personal Property Security Act which allows lenders, creditors, owners, etc to ensure the collateral is properly collateralized and secured.

In fact, here’s a tip. If you want to see who your competitors finance with have your lawyer run a PPSA search and you'll get a list of all secured financings on that competitor. It's a commonly used, dare we say ' trick' by numerous parties for various purposes, and there is nothing wrong with it.

A good way to assess your whole view and use on leasing is to think of it in a couple categories; they include: benefits, risk, documentation, and credit approval.

A tremendous amount of confusion exists out in the Canadian marketplace around the difference between leases and a loan. We can assure you there are differences, and knowing those differences, and how they affect your balance sheet, income statement, taxes, and rights can save you thousands of dollars .

Your business will make the final call, but if billions of dollars are financed under lease equipment funding strategies in Canada every year someone is clearly on to something, and that’s why its prudent to investigate the ' no brainer ' aspects of leasing in Canada . Speak to a trusted, credible and experienced Canadian business financing advisor on getting the best rates, terms and structures for your company or business.





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_funding_leasing_canada_services.html