Why The SBL Government Business Loan Bridges The Gap Between Banking And Canadian Business Financing You Need Today

SBL Loans Fill The Gap In SME Finance In Canada

Information on the Canadian government business loan . How SBL financing provides an intermediate finance solution for start ups and small to medium sized businesses with revenues or projections under 5 Million dollars


We're talking about the gap today. It's the gap that is the bridge between a Canadian government business loan and the traditional banking term loan. So how does SBL financing help you or your firm bridge that gap. Let’s examine.


So what's the ' scoop ' on SBL loans? They are term loans from your bank with Industry Canada, i.e. the federal government guaranteeing 90% of the loan.

So what's the goodness in all of that. Simply that it is a great financing vehicle for start ups, small, and medium sized businesses who are looking for loans they will repay from future cash flow that they might otherwise not be able to obtain from the traditional Canadian chartered banking system. Additionally they might not have the collateral to collateralize the loan in a manner that most banks require.

It's prudent at this time to recap what mainstream chartered banks in Canada require for this same type of financing. Typically a company such as your will be required to have substantial equity in your company or the transaction in question.

Banks in Canada are very focused on what commercial lenders call the 3 C’s of lending. Those 3 C's are the banks interpretation of your character, your company's capacity to borrow ( i.e. repay!), and the quality of collateral you can offer up, The bottom line all that then ... the bank must feel comfortable with your business - its sales, cash flows, and any external issues relating to the current economy, your particular industry, etc.

So that brings us back to ' the great divide '. It’s the gap that the government business loan delivers on Canadian business financing for those firms that can't meet the requirements of Canadian business banking in the traditional manner we think of.

Don't forget also that bank loans come with commitment fees, prepayment penalties, covenants, and extreme default measures when things go awry.

So we have come full circle to a proposed solid alternative, SBL financing, that’s 'SBL ' as being the acronym for what most people call the ' government business loan '.

How does it fill the gap then? It sure is obvious to us. It allows you to repay a loan out of projected cash flow when historical cash flows are insufficient or simply not available. That's because thousands (yes thousands) of firms that utilize the program are in fact start ups, pre-revenue firms that are looking to build and grow a business.

In many cases the assets of the business otherwise would not allow you to complete a financing.

Is there enough money go around in the program? That’s a typical client question. The answer is a resounding yes! In 2010 alone over 7000 businesses borrowed billions under the program. And yes, that's billions with a ' B'.

Uses of the program are equipment financing, leasehold financing, computer and software financing, and even real estate.

The cost of the program is very appealing to business owners in Canada. Rates are competitive, there is no prepayment penalty, and even the owner’s personal guarantee is limited to 25% of the loan. Try and get that deal under more traditional financing - we bet you will find it difficult!

Is it challenging to acquire such a loan? Not if you understand the requirements and create a streamlined process and follow documentation and application details properly and efficiently.

Speak to a trusted credible and experienced Canadian business financing advisor today on Canadian SBL financing. Bridge the gap!





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/government_business_loan_canadian_financing_sbl.html

5 Reasons To Consider Canada Government loans . How To Use the SBL Federal Loan Program

SBL Loans - Consider the Program For These Business Needs

Information on Canada government SBL LOANS . The federal small business loan can be used for a variety of business uses .. here are some of them .


We're big supporters of the Canada government loans, commonly called the ' SBL loan ‘. Why? This federal loan (you’ll soon see it’s not as federal as you think ... it's more local ...) can be used for a variety of solid business reasons. What are those uses then? Let's explore.


Canada government loans are the ideal financing solution for a business start up. SBL financing compliments significantly your own equity contribution to the business. A large amount of outside collateral is in fact not required for the federal SBL loan. Traditional financing via Canada's chartered banks and other lenders often make it difficult to achieve any proper level of start up financing.

Amortizations are available that make sense for your start up. You are trying to minimize monthly payments and maximize cash flow. There isn't a day when we don't talk to an entrepreneurial client who doesnt feel their resolve to start and succeed in business isn’t tested, so the federal small business loan is a solution to the testing of your resolve!

Our second category or use of this financing is ' Equipment. When you are looking to purchase assets to grow and maximize your profits government loans make a tremendous amount of sense.

Your equity contribution, i.e. the down payment that you would typically associate with a lease financing is low, the 5-7 year term amortizations make sense, and the bottom line it's a classic use of matching your new assets useful economic life to the term of a loan.


Use # 3 for Canada government loans. Buying a business. Funding from our proposed financing solution allows you to purchase an existing business.

We caution clients that the requirement for purchasing a business using the SBL vehicle requires that the seller agree to an asset sale, as opposed to a share sale. Almost any industry can be financed in this manner, as long as there are assets in the business that you are acquiring.

The good news here is that the emphasis on the financing of your proposed purchase is focused on the previous success of the business, as well as your ability and experience to run and grow the business. The SBL loan can also finance real estate as part of a business purchase - in this case the traditional limit of financing actually increases to $ 500,000.00.

Potential use # 4 for the Federal small business loan - refinancing! If you or your firm incorporated or otherwise have purchased assets within the last 6 months they can be refinanced under our proposed program. This generates working capital that can be put back in your business. In certain cases an appraisal might be required on the asset, but that is a very modest expenditure relative to the benefits of the financing received that come back into your business cash flow.

Finally, use # 5 for Canada government loans. It's buying and financing a franchise. Entrepreneurs in Canada finance thousands of franchises each year under the program, which in many ways is perfectly suited to the challenges of a franchise.

There you have it, 5 solid uses for the utilization for the federal SBL Loan. As we noted federal denotes Ottawa and government, but Canada’s chartered banks administer and fund the program under federal auspices. Speak to a trusted, credible and experienced Canadian business financing on how you or your business can utilize this valuable Canadian business financing vehicle.





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_loans_sbl_loan_federal.html

7 Guaranteed Ways To Fail In Canadian Franchise Loans. Franchisee Financing Done Right !

Use This Information On How Not To Fail When You’re Purchasing A Franchise In Canada !

Information on Canadian franchise loans. How does franchisee financing work in Canada and how can entrepreneurs avoid failure and guarantee success.


It's a given fact that some franchises fail. We all know that. We love providing guarantees to clients. But are there some guaranteed ways to fail. Nothing like a guarantee, right?

We're hoping that entrepreneurs considering franchise loans for franchisee financing in the Canadian marketplace take some of our advice, and by the way, that's on how NOT to fail!

Guaranteed failure point # 1 - Expect your franchise to either help or provide you with financing in Canada. That is a sure fire method of failure. While many franchisors have some relationships with certain organizations or financial institutions never forget that they are in fact in the business of selling franchises, not financing them. We will concede thought that lately we have heard rumblings of U.SS franchisors who are getting more involved in providing assistance and franchise loans for some of their units but we certainly haven’t seen any serious evidence of that in Canada.

So if you cant rely on your franchisor to provide you with financing assistance ensure that you have access to experience and relationships that can in fact assist your with completing your finance plan around your purchase. And while your franchisor may ' point ' you to some financing that may assist you it's safe to assume there are no guarantees.

Guaranteed failure point # 2- Don't explore your options. Another great way to fail... not recommended though! While the options to finance your franchise in the Canadian marketplace are certainly not abundant they do in fact exist if you are armed with the right knowledge and contacts. Never ever assume that you have to finance your purchase through your own bank, in fact some banks publicly or privately stay away from certain industries, and hospitality is an example. And that’s not good news for the thousands of entrepreneurs that want a part of this industry! So, take the proverbial advice of ' shopping around' for either a franchise financing expert or an institution that understands and is committed to your success.

Guaranteed failure point # 3- Borrow more than you can afford for your franchise. Another great way to ensure non success! Remember of course that the people providing franchise financing actually expect to be paid, in full! Larger loans translate into larger payments and cash flow concerns, so ensure that your financing has a proper mix of debt and your own equity. Remember that the optimal financing allows your business to succeed, grow, and pay you salary while building owner equity.
Guaranteed failure point # 4- Pick any franchisor... after all they are all proven business models, right? Well, not really. There is downside to any business, and certain industries and markets fall in and out of favor over time. So carefully assess your opportunity from both of course the financial perspective, as well as the overall market perspective. Your franchisor can be a Canadian organization, or a licensee of a U.S. company. Use the franchising disclosure laws in Canada to properly do your due diligence.

Guaranteed failure point #5 - Skimp on your financing. Borrow less, so you won't have to repay as much... right. Wrong! Don't cut corners when it comes to franchise loans and franchisee financing for your Canadian business. Understand your costs, and remember that you need to focus on two areas, purchasing your business, and then growing it. A proper combination of long term debt and working capital is needed. Don't let the excitement of owning your own business cloud the financial realities of what it takes to be successful in any business, franchising included.

Guaranteed failure point # 6- Assume sales are profits. Guess what? They are not. Build a proper business plan and ensure you have a solid handle on cash flow. An experienced Canadian business franchising advisor can help you here.

Guaranteed failure point # 7- Assume you know how to finance a franchise, or that it is easy. It's not necessarily the case. Understand your financing options, which in Canada exist, but are somewhat limited. Negotiate a fair price for your chosen business. Terms and rates in franchise financing vary, whether you are using 3rd party independent financing or the BIL franchise loan. As stated previously, borrow the right amount you need, whether you are purchasing a new unit or buying an existing franchisee out.

So there you have it. 7 guaranteed, yes guaranteed ways to fail at franchise financing. And by the way, we want you to succeed! , not fail, so speak to a trusted, credible and experienced Canadian business financing advisor who can help you with franchise loans and franchisee financing in the Canadian market space.







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_loans_franchisee_financing_canadian.html

Talking Points For The Canadian ABL Business Credit Line . It’s Commercial Financing That Works!

Why You Should Consider An Asset Based Line Of Credit

Information on the Canadian ABL business credit line facility . A unique commercial financing facility based on your assets.



We hear the term a lot these days. A ' talking point ' is simply a ' succinct statement designed to be persuasive '. Let's examine some key talking points on commercial financing in Canada, very specifically the ABL business credit line. (ABL is the acronym for asset based lending).

Part of our job seems to always be simply defining ' ABL ' in our context, because it's often a catch all term or various single asset finance categories, for example receivable financing.

Instead we're talking about what is referred to as a ' comprehensive ‘business credit line, one that lends against a combo of inventory, receivables, equipment. Although low interest rates are what often attracts clients to a more traditional Canadian chartered bank line the reality is that thousands of firms simply can't access traditional bank credit.

Although the Canadian economy has somewhat slowed down financing needs are as large as ever, whether you're a start up, an early stage company, or a mid market or larger corporation.

In the U.S. this form of financing is very developed, in Canada it's been a different story with various players, mostly non bank, not regulated firms have come and gone, and returned back to the Canadian space to deliver this commercial financing product.

‘Are there times when the ABL business credit line is a perfect solution for business finance”? is a typical client question. Probably the most common time for your firm to consider it is when you are in a restructuring phase. This is when the power of this business financing truly emerges because at a time when you company needs it most and can't qualify at the bank ABL business credit typically increases the funding to your firm.

The caveat tot that last statement is simply that you need to have the ' assets' on which that increased lending is based - That's the ' A' in asset based financing!

It's at this point that we always find ourselves explaining the differences in this financing relative to traditional bank commercial facilities. Those facilities are much focused, it’s the triumvirate of profitability, cash flow, and a very decent balance sheet; oh and by the way, you require all three!

It's the flexibility in structure that is most appealing to clients considering this method of finance. All of those ratios, covenants, outside collateral, personal guarantees tend to be either non existent or very minor ' talking points' when it come to an ABL facility. So when you are attempting a ' turnaround ' the asset based line of credit, simply speaking, is turning with you.

Another great talking point for our proposed new facility is that it can almost always facilitate peaks and bulges in your business; those temporary spikes in working capital needs are sometimes difficult to resolve in a more traditional chartered bank facility.

If there is one final ' talking point' to add it’s simply that the ABL business credit line is probably the best finance method to support sales growth when you are capital structure constrained. So as the Canadian economy improves you aren't penalized by previous challenges you have undergone.

Speak to a trusted, credible and experienced Canadian business financing advisor on what you need to know about this innovative method of business finance in Canada. Understand the requirements and take advantage of the benefits!






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_business_credit_line_commercial_financing.html

Here’s Your Fighting Chance For Cash Flow Solutions! How To Pinpoint A Canadian Business Finance Solution

Looking For Working Capital Survival Techniques?

Information on cash flow solutions for Canadian business owners . Understand the problem and find a business finance solution .


Canadian business owners and financial managers are looking for ' fight back' type cash flow solutions for their survival and growth challenges. Let's examine that from two angles understanding and pinpointing the problem, and then implementing a satisfactory business finance solution for your firm, one that makes sense in the here and now!

While clients we talk to are often very focused on fixing the problem we’ve felt it's just as important to understand how and why they got there. Makes sense right?

If you step back and take a closer look at what's going on in your business you will see that the constant pattern of payments and receipts to your firm dictate the need for Canadian business financing at certain times. The cycle typically constantly repeats itself, your company buys goods, generates a payable, incurs costs in creating your products and services and finally invoice generation to your clients. And then you wait!

That's when we arrive exactly at the crux of the matter as typically at this time your cash shortfall is at its greatest point. All the while your firm of course has payable and creditor obligations, and let’s not forget the tax man!

Now we are getting to the core issue, creating cash flow solutions to finance these needs. We now arrive at a point where many companies ' blow it ' for lack of a better word. That's because the obvious solution is ' the bank '. We can't count the number of times clients told us they have approached their bank on what we can politely term a ' short notice'.

Guess what though. Banks don't like to lend on a short notice. Quite frankly they are managing their own cash flow issues! Clients simply often don't realize that at this point in a company's need for a business finance solution that insolvency risk is at its greatest.

The other irony of our situation as described above is that in many cases business has never been greater for your firm. New contracts, new orders abound! Yet history tells us many companies, small and large have gone under when profits and sales were great, but cash has run out.

Solid and savvy Canadian business owners and financial managers will step up to the challenge this time and learn to plan better for short term borrowings. You don’t want to over borrow but at the same time you don't want to commit yourself to having excess cash and liquidity. (Although that’s a problem clients never seem to have!)


One of the best ways you can monitor your cash flow needs is to monitor on an ongoing basis changes in your assets and debt. Business owners often don’t realize that the transfer of funds between those two identify the movement of your cash.

If assets go down cash has been generated from the asset, if assets go up you have in fact invested in this asset, and, guess what, your cash has gone down.

In Canada you have a number of available cash flow solutions for working capital needs. They include properly managed bank debt via a solid relationship and track record. Companies that can't qualify have access to asset based lines of credit, working capital facilities, receivable and inventory financing on their own or together and even monetization of tax credits and purchase orders.

Looking to better understand what business finance solutions makes sense for your firm, and why? Speak to a trusted, credible and experienced Canadian business financing advisor to determine your firm’s best course of action.





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/cash_flow_solutions_business_finance_solution.html

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