An Unfair Edge ? Offer Customer Financing At No Cost To Your Company! A Financial Program Via Canadian Vendor Leasing Works

Improve Sales and Marketing Results with Customer Financing Programs – Zero Cost – Large Results!


Information on vendor leasing via a customer finance offering for your clients . Let a financial program produce positive results for your firm .


Looking for a (legitimate!) unfair edge in Canadian business financing? Who wouldn't want that extra ' secret sauce ' that all businesses strive to achieve when competing within their own market.

We're talking about offering a financial program, at no cost, to your clients, giving you a solid marketing edge, and something the competition may not have, or even know about! That’s why a customer finance program via vendor leasing could well put your company at the head of the pack in your own market.

Could there be any more common sense attached to the simple concept of
providing your client with a financial solution to acquire your product or service? And, as we noted, that could well be at no cost. As you may have guessed the major auto manufacturers mastered this same concept, about 50 years ago! so it might be time to get on board.


Offering such a program does two basic things:

1. It makes the final purchase decision much easier for your clients

2. It doesnt take you as long to complete a sale - in effect your sales cycle is significantly reduced

Getting back to the competition, doesnt it also make sense that a financial program not offered by your competition puts you in a much better stead of winning the sale . We think so, and we've since it proven time and time again.

Depending on what study you are reading 8-9 out of ten companies in Canada utilize lease / loan financing for their asset acquisitions. If your customer is one of those firms doesnt it make sense that you’re simply offering them a financing solution that makes sense with something they are already comfortable with... well you get the drill .. you're one step close to making that sale, and winning over your competition.

How? That’s the next point to ponder in our efforts to make sure clients have that inside edge. How do you as a business set up a program that in effect could cost you nothing? Naturally if you want such k a customer finance program to not be free to your company then feel free to invest hundreds of thousands or millions of dollars into your own captive finance firm. Oh and by the way, hire the right talent and set up the proper infrastructure also, put those at the top of you ' to do ' list. The bottom line is your firm quite probably doesnt have the capital, financial management, and operational capabilities to set up and start your own finance firm.

Not interested in that? We fully understand! That is why the easy and logical solution is to work with a trusted third party that will provide the capital, take on the risk, and work to close transactions, in effect becoming a win/ win scenario for your firm and theirs.

Consider spending some time to investigate a customer finance program that makes sense for your products and services. Speak to a trusted, credible and experienced Canadian business financing advisor who can ensure you have a partnership program with the right party that gives you a clean program, with simple documentation, and the right amount of expertise and capital to give you the ' unfair edge ' in sales and marketing growth .




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/vendor_leasing_financial_program_customer_finance.html

Receivable Cash Flow Financing .The Only 2 Times To Consider Canadian Factor Funding

Two Times To Consider An Alternative Financing Strategy


Ancient Chinese proverbs and receivable cash flow financing and factor funding. A connection? We thought so, as we were taken by one we heard the other day. It went something like this, ' the best time to consider planting a tree is 20 years ago, the 2nd best time is now '.

Timing is everything in business... Canadian business owners and financial managers know that .That is why we think a strong case can be made to turn our same proverb towards consideration of receivable financing , something you maybe should have done already, or perhaps start considering now . Let' explain.

When business owners look at financing alternatives they are usually looking at their current situation. As the Canadian economy seems to seesaw back and forth these days between good news and bad news its Canadian business that is caught in the middle, experience continual frustration for obtaining their financing needs.

We're talking mostly about small and medium sized businesses , as larger firms always seem to be in a better position don’t you think.

So that of course brings us to receivable cash flow financing, one immediate solution that you can access today for cash flow and working capital. It's generally viewed as an ' alternative ' financing but quite frankly in our opinion it's more mainstream everyday as thousands, yes thousands of firms embrace this finance strategy.

That of course just might mean that the time is... well... now for consideration by your firm. The reason you might be considering A/R finance now is simply your inability to collect receivables in a timely fashion, from clients that seem to feel they are forever on extended terms. (Clients tell us they don’t remember granting those extensions!) We add also that the ultimate irony sees often to be that the larger firms become a major collection challenge for companies, such as yours, who might be significantly smaller.

Often times your receivable portfolio is a function of your growth strategy. That growth strategy becomes capital intensive, as you are forced to continually maintain an investment in inventory and of course receivables. So while clients tell us they would like to see A/R reduced, to cash of course reality is that it rarely does for the typical SME type firm.

A lot of clients we meet are self financing. That is a double edged sword in that it constrains many businesses from growing. They are also reluctant to take on more debt and increase financial leverage. If sales drop or operating performance decline you can well assume problems are going to occur with respect to your relation with lenders to your firm.

Factor funding reduces leverage. It is not debt; it’s simply a monetization of your A/R into immediate cash at a cost of 2-3% on a monthly basis.

So when is the time for Canadian business owners to embrace A/R financing? According to our Chinese proverb it was either a long time ago, or today! Receivable cash flow financing allows you to monetize your A/R in real cash flow; you've just given yourself an alternative to bank financing, minimized the emphasis on personal guarantees, and put yourself in control of your daily or monthly borrowing.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in determining when this strategy is right for your term, yesterday, or today!




Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

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

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

Innovative Financing From Canadian Leasing Companies . Mastering The Lease Versus Buy Decision

Information for Canadian companies seeking financing from leasing companies . Master the lease versus buy decision and reap the financial benefits .



At one point or another Canadian companies of all size realize that financing new or existing assets via leasing companies in Canada works far better than buying those assets; in effect they have mastered and understood the lease versus buy decision.

It's never hurts for us to cover the basics with clients, so we constantly re-enforce the fact that equipment leases and loans allow you to stay ahead of the technology curve in your industry - in effect you have the ' latest and greatest ' with which to compete .

Conservation of capital is also a key point at the top of our list; in effect you don’t have to service a bank term loan for the asset. Bank loans for assets also have related issues that can significantly impact your firm, such as reduction in your overall borrowing arrangement, etc. It's no secret then that 80% of all North American businesses lease some assets they need for their firm.

Your monthly payment of course is dependent on the asset size and the structure of your lease or service agreement with leasing companies in Canada.

Innovation in financing via a lease often comes from the type of lease you enter into. In Canada two primary offerings are on the table - the capital lease, aka ' lease to own ', and the operating lease, which we can effectively call the ' lease to use'.

Innovation abounds in operating lease financing. It’s the ultimate solution for investments you make in areas such as technology, telecom, etc. Most borrowers, (and we definitely don’t agree with their focus) tend to hone in on the monthly payment. In an operating lease the monthly payment is significantly lower, anywhere from 5-20% depending on the asset size and type.

At the end of the term of your operating lease the equipment is not fully paid for. Don’t worry, that’s a good thing, because a properly structured operating lease via Canadian leasing companies allows you to at that point consider purchasing, returning, or continuing the arrangement. Those options are standard in a properly structured operating lease.

While payments on a capital lease are higher don’t forget that you own the equipment at the end of the term. This of course can be a double edged financial sword! , given that the equipment might have either significant value, some value, or no value. On balance we would say that the majority of companies that enter into a capital lease scenario do so mainly because they want to conserve cash flow.

We referenced the ' lease versus buy' decision. That’s the term referred to as the Canadian business owner or financial manager tries to decide whether he should lease or buy an asset.


Is any financial decision always 100% right? Of course not, so when it makes sense buying an asset gives you ownership of the asset, plus your ability to control the ultimate use and residual value. In some cases your accountant might be able to show you buying is less expensive than lease finance.


We tell client that in the financing decision process they should consider things such as the final monthly payment, related services to the asset that are financeable, their purchase options, as well as the cash flow effects of the transaction . Oh and by the way, most busines owners quickly realize that lease financing is easier to obtain and receive approval for. Leasing companies in Canada are thriving and want your business.

Speak to a trusted, credible and experienced Canadian business financing advisor on how innovative financing from Canadian leasing companies might make sense for your firm. You'll have mastered the lease versus buy decision!





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_versus_buy_financing_leasing_companies.html

Is The Guarantee Of The SBL Canada Small Business Loan Really Guaranteed? Increase Your Chances For Government Loans

Don’t Just Survive ! Grow Your Business With An SBL Loan.


Information on the ‘ SBL ‘ ; Canada small business loan. How can business owners, franchisees, and entrepreneurs increase their chances of approval for government loans.


A pretty basic question. Is the Canada small business loan, i.e. government SBL loans, really ' guaranteed '? Two points here, first of all the loan is guaranteed by the government to your lender, but you are certainly not ' guaranteed of approval! But with the right knowledge, and the right preparation you can dramatically increases chances of approved funding.

Let's examine how you can ensure your business is approved for financing under this program. Some of the techniques and info we share we could almost characterize as subtle, and some are simply a key requirement to get the job done. It’s not hard to take ‘guesswork ‘out of the program and increase the odds of financing approval.
You must be able to at least understand the lenders language, even if you don’t speak it everyday.

At the end of the day it’s about some basic organization around your information, dealing with the right party, and being able to clearly demonstrate that your business is the right firm with which to have a borrowing/lending relationship.

Doesnt it make sense that if certain information is required for the Canada Small Business Loan that you are able to provide it? That info that's required is hardly ' rocket science' by the way; it’s actually a short laundry list. The essence of that info is a business plan, quotes or invoices on what you want financed, a cash flow forecast, and information about your self with respect to assets and liabilities and your personal credit history.

You want to be able to demonstrate how the financing will assist your business, whether it’s a new business, a franchise, or assets required to operate and grow your company. When we listen to clients who say they have spent far too long in getting approved for government loans we can usually demonstrate they have responded properly to the financing info request.

We're fond of an expression called ' deal fatigue '... that's simply when enthusiasm by you and your lender hit an all time low on your transaction. So by putting a package together with all the info, including a positive attitude and approach, you are able to present a strong picture of your capabilities and experience.

The SBL small business loan is actually administered by Canadian banks on behalf of the government department, Industry Canada. There isn’t a day that goes by when we don’t hear the comment ' banks arent lending ', or ' banks are only lending to their existing client relationships'.

We tell clients they will never be in a position to change the way banks do business in Canada (God knows we've tried that ourselves!) but you can take advantage of programs that clearly are meant to finance and grow your business.

Many clients are too focused on rates on all types of business financing - That’s our opinion. The reality is that using a 100k loan as an example an interest rate difference of, say 5% will only mean a monthly payment difference of a few hundred dollars. And the reality is that rates on government loans are fixed anyway. Bottom line; don’t focus all your efforts on rates when any new business financing can help your business grow.

The Canadian SBL program provides millions of dollars of financing to businesses like yours. It helps your business achieve financing it otherwise could not obtain. As a borrower you need to deal directly with both the positive and negative aspects of your loan, and you must be able to project positive future performance. That's not hard to do by the way.

You can successfully achieve financing by working with an advisor or banker that both understands the program and can ensure your financing is fast tracked to success via the right information presented in a positive manner.




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/sbl_government_loans_canada_small_business_loan.html

Buying And Financing A New Franchise In Canada? What Franchising Loan Info Do You Need?

Buying and Financing a Franchise Opportunity In Canada?

Information on financing a new franchise in Canada . Consideration for franchisees who are buying a franchise and looking for the appropriate loan .



Financing a new franchise. Simple? Difficult? Impossible ? Our answer would be ' simple ‘... never, not really. Difficult... we don't think so, you be the judge. Impossible? With the right information and assistance, absolutely not.

So what in fact does a Canadian franchisee need to know about funding a franchise business in the Canadian marketplace? A good start are some of the basics - we're going to assume you have a general knowledge of what franchising is , with an emphasis on the pros and cons of purchasing what is hopefully a proven business model in your chosen industry vertical . That vertical might be QSR (Quick Service Restaurants) (boy are there a lot of those!) service oriented businesses, the growing healthcare industry... and on it goes.

In Canada ( and we're assuming south of the border also!) your personal financial situation as well as you related experience play a key role in the overall financial plan you will undertake to successfully complete a business financing .

A great start is to prepare a personal net worth statement; simply speaking it’s a basic form that shows what you have, and what you owe. The difference is known as your personal net worth. Hopefully what you have is more than what you owe; otherwise your chances of financing success are somewhat slim, if not non existent.

A business plan prepared by yourself or an advisor will hopefully show you have thought out your cash flows and profit potential. Everyone wants to be a ' winner ' in franchising, that’s understood, and it seems only common sense that the more successful a franchising brand you attach yourself to will translate into financial success.

Don't forget also the royalty aspect of your planning. Royalty fees when you purchase a franchise typically tend to be in the 6-8% range, and those fees should be carefully factored into your overall profit and cash flow scenario.

The old adage that the 3 most important things in real estate are location, location, and location! If your business is dependent on retail / consumer traffic that’s important.

Does your lease and location factor into your financing? Yes, it does, as it’s critical that your lease have a term that appropriately matches the term of your franchising loan. Simply speaking, don't expect a 7 term loan if your premises lease only has 3 years left and is not renewable in your favor.

The amount that you are required to invest as your portion of the business capitalization varies. It depends on a couple basic factors. Those factors are as follows:

1. The minimum amount that might be required from the lenders perspective

2. The minimum amount that might be required your franchisors perspective. This is an especially important number because it is usually drawn from their experience as to what amount of capital units in their chain require to be successful.
3. A third factor is the amount of risk you personally are willing to take in your new franchise venture. In this case ' capital ' is what we tell clients could be a double edged sword. For instance, you could put up 100% of the funds yourself. In that case you have little debt risk, but have a lower return on investment. Alternatively borrowing without a decent equity position puts you at the mercy of your franchise lender when things go wrong, as they sometimes do. And need we mention that every business, franchise or otherwise needs a working capital cushion.

It may seem the wrong way of looking at it, but as a Canadian prospective franchisee you might well want to take some time to understand why franchisees fail, and what you need to know to buy and successfully finance a new franchise in Canada.

The importance of a trusted, respected and experienced Canadian business financing advisor can't be underestimated. Whether you are buying a new unit in the system, or purchasing a resale from an existing franchisee understand your reward, and risk.




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/financing_a_new_franchise_franchising_loan_buying.html

6 Ways To Compare And Analyze Asset Based Lending Revolving Credit Facilities . ABL Financing Works

Are You In a Position To Properly Compare Business Lines Of Credit ? You are now!

Information on abl revolving credit facilities . Why financing via asset based lending is increasing as an option in Canadian business .



Clients who listen to us tout the positive aspects of business revolving credit via abl asset based lending and financing sometimes have a great question for us ; namely ' How can we compare this type of Canadian business financing to other forms of lending, i.e. the traditional chartered bank line of credit ?'

Good question! Right? So a good way to do that is to set up 6 common benchmarks that allow you as a Canadian business owner or financial manager to do a proper analysis or comparison. Let's cover off the basics of those 6 comparison points.

First of all, we can start with borrowing capability. In general terms we can make the following statement - under a bank facility you have a pre -set credit limit that typically is reviewed annually. However with an ABL facility your borrowing is always tied to the asset base of your firm, which typically is a total sum or receivables, inventory, unencumbered equipment, and even real estate. While bank A/R facilities are more often than note capped at 75% of A/R the asset based revolver will typically come in at 90%. On top of that you will also receive more generous inventory margining 99% of the time, in our opinion.

Let’s move on to overall structure, our 2nd comparable. Larger more high quality asset based facilities typically have a multi year length, while your bank facility is renewed (hopefully!) annually based on historical financial performance.

Point # 3, which we will call follow up or monitoring via your lender. Here is where a dramatic difference occurs. Your bank will assess and provide and renew the credit facility based on operating ratios, loan covenants, external collateral perhaps, and quality of owner guarantees.

Asset based lending takes a different approach; it counts your assets, both at the start of the facility, and periodically during the facility. So in the same manner that you provide what bankers call ' borrowing certificates ‘the ABL lender actually only focuses on those same assets within those certificates. Are we making ourselves clear, it’s always about the assets!

Point # 4. Bank lines of credit are available from... you guessed it... Canadian chartered banks. The ABL revolving credit universe in Canada, while not huge, is non bank in nature.

It is made up of ' unregulated " (banks are regulated) independent finance firms, small and large that offer revolving credit financing to Canadian business. Faculties are available from 250k to hundreds of millions of dollars in size. As such all types of firms that might not qualify for traditional bank financing are immediately eligible for ABL finance, even if they have financial challenges, up to and including considering a bankruptcy filing!

Let’s move on to point # 5 - pricing. While bank pricing is generally perceived as the best financial cost on Canadian business borrowing clients of the same credit quality can achieve the same or better pricing via an asset based line of credit. Firms who can't obtain bank lines of credit still qualify, but of course pay more for these facilities.

Last, but not least, covenants. While banks focus on cash flow coverage (typically 1.25:1) balance sheet ratios, and leverage ABL lending draws on appraisals of assets, reporting, and operational type audits.

What’s better for your firm a traditional bank business line of credit or an ABL financing. You're now in a position to better decide. Speak to a trusted, credible and experienced Canadian business financing advisor today on moving forth with the selection of your choice.





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/revolving_credit_asset_based_lending_abl_financing.html

Working Capital Management Is A Numbers Game When Cash Flow Financing Needs Are Now

Empower Your Company With Working Capital And Cash Flow Solutions. Financing The Gap!


Information on working capital management techniques when you need cash flow financing . Plan now for financing needs tomorrow .






Your company’s working capital is the amount of funds which is working to solve your short term operating needs. A good way to look at this is to think of all your current assets as your gross cash flow, and if you subtract your current payables and loan payments due, etc you then have a net working capital amount.


How your firm manages those current assets, and the amounts you have invested in that part of the balance sheet will ultimately determine what cash flow financing options are available to your firm, traditional or otherwise. Your ability to turn over those current assets, i.e. A/R, inventory, etc is what impresses a lender, as they view that turnover as ultimately repaying working capital loans, operating facilities, asset based loans, etc.

Most business owners don’t see it this way, but your cheapest form of borrowing is actually your short term liabilities such as payables. The challenge though, is that those payables have short timelines with respect to being due, and your firm needs the working capital management solutions to address that need.

The irony that we have always found in working capital discussions is that the often used ‘current ratio’ is somewhat meaningless. It doesn’t do a lot to reflect what is happening now or in the future. Very simply speaking, most accountants or analysts look for a current ratio of 2:1, or more. So is a 4:1 ratio fabulous then?? Not really if your inventory is in work in process and your receivables are slow or uncollectible!


Accounts receivable and inventory are the two main asset classes in your working capital. No surprise there. Your ability to monetize (borrow against) them is ultimately your cash flow financing savior.
So, as we are constantly preaching, it’s all about the timing of your working capital and cash flow needs. It’s that constant pattern of inventory turning to receivables turning to cash that dictates your success or failure in working capital management. A few very basic calculations that every business owner should know are your days sales outstanding in a/r, as well as your inventory turnover. They are simply arithmetic calculations.


Because of those two great assets, A/R and inventory you not only want, but are often forced to consider borrowing against these assets. In Canada this is accomplished in a variety of manners. They include bank lines of credit, non bank asset based lending facilities, receivable financing on its own, and occasionally inventory finance on its own merit. Even your SRED tax credits or purchase orders can be financed if applicable . You make a smart decision when you utilize one of the above solutions with a focus on borrowing what you need and using and managing daily to that need.


The problem we run into all the time is when clients approach us when they need funds urgently, typically when the overall risk is greater because of their current solvency situation. The bottom line is to determine the minimum amount of cash you need, include a buffer or bulge type scenario, and plan your working capital management and cash flow financing in a proactive manner. Some early warning signs of cash flow issues include declining cash balances ( obviously ) , extreme bulges in new orders , supplier payment issues , over 90 day receivables, etc.

In summary, don’t over borrow, and don’t under finance at the wrong time. Speak to a trusted, credible and experienced Canadian business financing advisor on solutions available today in cash flow finance for your company’s needs.




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/working_capital_management_cash_flow_financing_now.html