A Big Fat Overview To Canadian Computer, Telecommunications And Software Lease Finance

Add Tangible Financial Value To Your Tech Asset Needs


Information on lease finance solutions around computer, software, and telecommunications equipment in Canada .





A big, fat overview..? Ok, we guess another term is simply called an ‘ introduction to ‘ and today it’s all about lease finance around the acquisition of computer, telecommunications and software purchases your firm requires.



Long term strategies around the acquisition of these types of tech assets are important, whether your firm is in the SME sector of perhaps on of Canada’s top 100 firms. It’s all about the issue around buying the most with what you got, as no one will disagree that tech assets are expensive. And when you have a combination of purchase power plus the financial benefits around the flexibilities that come with lease financing.



One of the key areas where tech assets such as computer and telecom equipment differentiates itself is that fact that savvy business owners and financial managers will view these sort of assets from a viewpoint of ‘lifespan’. In effect you are looking at these assets from a ‘ cradle to grave ‘ outlook – and that’s a smart thing.



We’re making the assumption you have chosen the software or telecom assets you require- now it’s a case of making those budgets work. Quite often your firm is in project mode, as you are in the position of contemplating technologies newest kid on the block, ‘ Cloud Computing ‘, or simply upgrading hardware and software licenses.



The eternal basics of lease finance apply totally to tech assets. When you are successful in obtaining the proper rates and structures on a transaction you have at the same time enhanced your overall working capital position, in effect conserving cash.



We spoke of the ‘ eternal’ benefits of technology leasing, one of those being upgrades to existing assets and projects. Can you think of another asset class that has as much importance tied to is as the ability to change, upgrade, refresh, etc. Quite frankly, we can’t.



Business financing has been a huge challenge for most firms over the last few years – a lot of those challenges are behind us and you’re now in a position to invest in growth assets such as IT investments that maintain your competitiveness.



In computer, telecom and software financing the key issues you need to focus on are documentation, the legals and terms around certain areas, and price structures.



Software is a growing area of lease financing in Canada. Typically we’re talking about application software, not internal software you may be developing or having a third party develop for you. Issues that you might have to address are source code, rights to use, etc. Thousands of firms finance software in combination with their other hardware and telecom needs.



Typical terms for leasing of such assets are 3 years, which is driven primarily from aspect of ‘ useful life ‘ of most tech assets. However all sorts of terms and amortizations can be structured that utilize a combination focus on your budget, the assets useful life, etc.



If your firm requires assistance on deciding whether you should buy or lease these asset classes, and if you want to mitigate the risks associated with technology financing consider speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you with structures that makes sense for your firm.







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 9 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/computer_telecommunications_software_lease_finance.html

Unclear On Accounts Receivable Finance ? A/R Financing Companies Will Turn Your Business Around.

Looking For A Canadian cash flow solution?



Information on financing companies in Canada offering accounts receivable finance .Does a factoring / invoice discounting program work for you ?


The proverbial ' turnaround '. Typically we think of if as a reversal in fortune, whether in sports, life, or in our case today, ' Business'! More and more Canadian business owners that are looking for a turnaround in their cash flow and working capital are considering accounts receivable finance from financing companies in Canada to effect that turnaround.

But is that a sensible solution? It certainly is with the right circumstances and the right information. Otherwise consider it somewhat of a deadly minefield of misinformation and dealing with the wrong parties. And at a time when the Canadian business financing environment is at (or close to!) it's tightest it makes sense to have the right information at hand.

So it starts at the river, where the cash flows (or isn’t flowing!) That's lack of flow is absolutely the right time to contemplate an A/R receivable finance strategy. Simply speaking it's a tool that can be used by business of all size, from start up to major corporation. Financing companies in Canada sometimes do not do a great job of even explaining things properly, or even advertising them in a manner that makes it clear what the solution involves. So don't get confused when you hear terms like invoice discounting, confidential A/R financing, factoring, etc. Essentially they are all the same, simple as that.

Cash flow tends to slow down when your business or the economy, or both slow down. So it’s at that time when you're probably most creatively challenged to come up with working capital solutions.

Is bank financing for the start up or existing SME (small medium enterprise) extinct? We won't weigh into that debate, but safe to say that that if your firm is not a very solid citizen in good standing with the bank... well let's just leave it at that!

As we have intimated half the battle in accounts receivable finance is just understanding the solution, and knowing how to choose the right financing companies to implement that solution. First of all it comes down to understanding the benefits, and the mechanics of the A/R finance strategy.

There are essentially two key offerings in the Canadian marketplace, the traditional one that's been around before the Dead Sea was sick and a newer, and in our belief preferred solution to that same problem. The traditional solution has you receiving anywhere from 70-90% of your a/r via an immediate advance on the invoice, as soon as you generate it, or at anytime thereafter, as long as the invoice is less than 90 days old. When that invoice is collected by the finance companies that offer this traditional solution you get the remaining amount back immediately, less a financing charge which typically is in the 2-3% per month range assuming a collection period of 30 days.

The alternative is a confidential invoice financing solution, allowing you to bill and collect your own receivables, while at the same time receiving the cash advances as you generate sales/invoices. It's the confidentiality of this type of offering, i.e. no notification to any of your clients or other creditors that we feel is appealing to the Canadian business owner or financial manager.

So the benefits of either of the above strategy now become immediately clear - you're in positive cash flow , suppliers can now be paid, payrolls and government remittances can be made, and , oh yes, you can grow your business again.

So depending on which solution you choose the bottom line is that your turnaround is in motion! Speak to a trusted, credible and experienced Canadian business financing advisor who can work with you to implement the solid cash flow solutions you need... 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/financing_companies_accounts_receivable_finance.html

Alternative Financing From Canadian Business Lenders . Special Loan Takeouts Or Growth Challenges ?

Special Loan Status At Your Bank ? Why And What Next?


Information on alternative financing choices for Canadian business owners in a ‘ special loan ‘ environment . What happened and what lenders can assist you now ?

We're fairly sure that most Canadian business owners and financial managers don't equate Canadian business financing with ' shopping ', although truth be told we do hear the term ' shop around ' quite a bit when talking to clients about alternative financing via bank or non-bank ( mostly non-bank!) lenders .

Unfortunately many of these firms are forced by necessity to do their shopping because they find themselves in the ' Special loan ' section of the bank, due to any number of events that have triggered a default situation. The bottom line, turnaround financing is required.

Let's examine some aspects of alternative finance solutions in Canada, as well as a re - focus on key issues within that damaged bank relationship.

It's no real secret that bank rates for commercial business financing are at all time lows .Even bank fees associated with business lines of credits are not all that unreasonable .

A ‘special loan ' scenario unfortunately seems to often tied to ' personalities ‘, i.e. the human side of business. Clients sometimes feel that Canadian banks or their own banker specifically does not ' understand ' their business. In fairness to Canadian bankers they are sometimes just challenging a client and should often be viewed as a ' sounding board ‘for challenges your business might face

A real challenge that drives many Canadian borrowers to alternative financing is the fact that the Canadian banking industry has a limited number of players, unlike the U.S. which as different tiers of commercial and business banking, with hundreds if not thousands of individual players.

Those Canadian business people that have ' been around ' (I guess that’s us also!) know that industries and even specific firms fall out of favor at certain times. We've met numerous clients of the years that have felt that their commercial bank has been almost looking for a reason to end the relationship. With all due fairness to there being two sides of the story who cannot commiserate with the Canadian firms who suddenly find their total future and destiny in the hands of a third party.

Probably the best advice we can give a client is to choose a banker that is relationship oriented and had internal credibility within her or his bank. Our belief - all banks are the same; all bankers are not the same.

So if that banking relationship is in fact over, what are the alternatives? The good news is ' there are a lot!) . Using our ' shopping analogy ' there's some decent choices. They include non regulated asset based finance firms, equipment lessors who specialize in sale leaseback and refinancing of assets, and subsets of asset finance which include receivable financing ( factoring ) , inventory financing, and combinations there of .

More esoteric solutions such as purchase order finance and tax credit monetization are also readily available. Firms that are either on the verge of entry into a ' special loan ' category, or who find themselves there already have ample room to re-exit under the right conditions.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with achieve refinancing 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/alternative_financing_lenders_special_loan.html

Wondered How The Canada SBL Government Business Loan Works?

Get The Advantage You Demand & Deserve In Canadian Business Financing

Information on the Canadian government business loan – aka the ‘SBL ‘ program . Understanding the program is your key to success


Although the majority of Canadian business owners and financial managers have heard of or have some knowledge of the ' SBL ' , aka the government business loan most do not fully comprehend how this financing program works.

Although the word ' government ' is sprinkled liberally through all the jargon and conversations we hear about the program the reality is that you have essentially no direct involvement with any government personnel or the perceived bureaucracy that we as Canadian business owners associate with the program.

We're going to assume you're taking that as good knows, although we've got nothing against the good folks in Ottawa.... (When they are doing things properly!)

Industry Canada is the department that sponsors, administers, and to some extent markets the program. They are committed to getting businesses like yours capital, via Canadian chartered banks, that you need to grow and operate your business.

The government in effect guarantees your lender. Since the inception of the program Billions of dollars have been funded under the program.

In general terms the program is designed to help your business secure equipment, land, and leasehold financing for long term needs. Unfortunately many business owners in Canada misinterpret the SBL government business loan as a potential cash or working capital loan. That is 100% not the case; it finances assets and real estate.

When you fully understand the program you comprehend that your local lender, predominately Canada's chartered banks are the ones that actually spur financing growth under the SBL. So if you have a need tor debt that falls under the program parameters you fund your transaction locally.

Understanding the lending parameters of the program is key to your success in completing the financing in a timely manner. Oh, and by the way the program has a lending cap of $ 350,000 ($500,000.00 on real estate), which we think takes the ' small ' out of the small business government loan. That's not chump change!

The essential loan parameters of the program are as follows - 5-7 year amortizations are typical, giving you ample time and low monthly payments. Rates are 3% over Canadian prime, and a small admin fee is assessed by the government as part of the application. (You can often have this admin fee financed as part of your transaction!)

Banks in Canada of course typically evaluate loans on the basis of personal credit, income and collateral. Under the SBL you do in fact need a respectable personal credit history, but even if your firm is a start up with no historical cash flow info available you are still 100% eligible for the financing. Here's where a slick business plan or executive summary comes into play quite nicely - simply demonstrate how future cash flows will repay the loan.

The government guarantee is for the majority of the loan and can only be invoked if your business defaults on the loan, so the risk is jointly shared by the bank and the government, but mostly by the government.

Understanding how the SBL government business loan works is key to a successful financing. And by the way, getting approval is half the battle, you also need to have an understanding of how the loan is administered, so that’s worth some time investment also.

Speak to a trusted, credible and experienced Canadian business financing advisor on ensuring you understand the process, due diligence and financing of this program which will finance billions of dollars this year for your competitors, and hopefully 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/sbl_government_business_loan.html

2.5 Things You Need To Know About Franchise Loans ! Money And Funding For A Business Loan In Franchising

Power Your Franchise Dream With The Right Financing

Information on franchise loans in Canada . How do entrepreneurs find money for franchising and what type of loan and funding program is available ?


2.5? Actually we'll round that one up to 3. We're talking about franchise loans in Canada. As a potential franchisee you're looking for money for franchising the entrepreneurial dream. Let's cover off some key points in funding that loan and ensuring things are done right.

Point # 1 - Is it possible to go it alone? While it may be possible for you to cover off all aspects of your purchase, including selecting your chosen business, validating it, planning for it, and ensuring it's financed properly we certainly don't recommend that. We remind clients that even some of the largest companies in the world with all the smarts they might have internally, solicit help from their advisors, lawyers, bankers, peers, etc.

In many ways the Canadian franchisee is even putting more ' on the line' than a large corporation, as he or she is pledging personal assets, collapsing some level of savings and investments, and waiving their rights to explore other career or job opportunities by virtue of selecting a franchise.

We think most clients think that a lot of the advice and assistance might be costly. Not necessarily, many franchise consultants who assist firms in fact are compensated by the franchisor, not you, as an example. And the unbiased and professional advice you might get from a franchise lawyer is quite often many times worth the price of admission.

Don't forget also that your chosen franchisor is probably a treasure trove of assistance, including putting you in touch with other unit owner in their system to share experiences and ' how to ' .

Point # 2- Does getting money and funding for franchising loans differ from any other commercial lending .The short answer we give clients is the proverbial ' yes ' and ' no '. Let's clarify. We firmly believe that franchise funding does not eliminate any of the basics of business loans, as compared to if you were starting or buying g your own business outside the franchise model. The same pre- requisites apply. They include a business plan, cash flow planning, evaluating finance alternatives, and ensuring you have the right amount of debt and equity capital

Where things might differ a bit is that in most cases you don't have the same options as the typical commercial borrower. And quite honestly, no matter low large your franchise might be you are traditionally viewed as a ' small business borrower. The bottom line though is that there are concrete options for financing your purchase, they are just a bit more limited,


Point # 3 - How does the franchisee determine what amount of financing he or she needs? A couple key factors come into play here. First of all the obvious one, the size of your franchise. In Canada you can buy franchises for only a nominal investment, or you can borrow and invest up to a million dollars or more. That’s a broad spectrum! Remember also that franchises that require asset financing are going to incur higher borrowing needs. Asset financing in a franchise consists of leaseholds, equipment, computers an point of sale equipment, etc. Many franchisees we talk to unfortunately also are not focusing on the amount of working capital they needs to grow and operate their business after they purchase it.

As an entrepreneur you want to ensure you successfully attain the Canadian dream of owning your own business. That option is being considered by more business owners everyday. North American stats show that approximately 5% of franchises fail. Use our info wisely to ensure you're in that other 95%. Speak to a trusted, credible and experienced Canadian business financing advisor for guidance on your franchise loans.




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_money_for_franchising_funding_loan.html

One Way To Buy A Company . Use ABL Finance Via An M & A Business Loan For Acquisition Financing

Acquisition Finance For Success – The Why And How


Information on acquisition financing in Canada . Consider a business loan via ABL finance to successfully complete your transaction with no money down ? !


There's just a lot of interest these days, it seems, in acquisition financing as a way for Canadian business to achieve various different objectives. One way in which they can be successful is via an ABL finance business loan to finalize that objective.

Why do companies want to acquire each other ? Of course it's for a variety of reasons, including growing sales, becoming a market leader in their niche, cost reduction, or buying the ' secret sauce' technology of another firm.

We're always on the look for some new thoughts in Canadian business financing, so we were drawn to an article in one of the two leading Canadian business newspapers the other day which had the catchy title of buying a company with ' no money down. The article was written by one of Canada's respected investment officers and fund managers.

No money down? And acquire a significant business at the same time? We were intrigued. The essence of the article was that many ' bargains ' are available in Canadian business - it’s a question of finding them! The article went on to say that the essence of such a search, once you have found a target firm, is to go back 50 years. Go back 50 years ? !Actually what the author meant was that at this point in your search it's time to call on Benjamin Graham , acknowledged as the father of value investing by almost all, including his prize teach pet student Warren Buffet .

What's recommended by these ' guru's is to look at ‘ net working capital ‘ - something we focus on a lot in our own preachings. That figure is made up of receivables, inventories and any cash on hand.

What about the other assets though? Essentially it's offered up that they don't mater. We think they do, but Mr. Graham and Buffett actually disagree with us .. the nerve!

So this is where we come in. Where the author of the article focuses on dealing with Canadian chartered banks we prefer a faster better route, ABL finance.

The beauty of ABL financing, via an asset based line of credit is that it can also include the fixed assets that seemed to have been discounted by Mr. Graham and Mr. Buffett.

A true asset based line of credit encompasses our previously mentioned current asset accounts, as well as unencumbered fixed assets. And while the article we referenced focused on bank financing the reality is that an acquisition financing via ABL finance provides a higher margin level on these assets. Typically those margins are 90% of receivables, significant inventory advances subject to appraisal / valuation, and financing for liquidation value of fixed assets.

More often than not firms in the SME sector that want to buy another business can generate no interest in Canada from ' private equity ' or ' VC' firms, as those firms focus on larger transactions.

So, no money down? The jury might still be out on that one, but we do assure clients that an ABL loan is a great financing alternative when you are looking to purchase another firm for competitive reasons.

Speak to a trusted, credible and experienced Canadian business financing advisor when you want to further your acquisition finance objectives.




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/acquisition_financing_abl_finance_business_loan.html

Don’t Tell Anyone But Here’s Six Points And Strategies For Dealing With Business Equipment Finance Companies For Leasing Success

Here’s How To Make Your Best Leasing Deal In Canada

Information on issues that Canadian business owners need to address to achieve success equipment leasing and asset acquisition with business finance companies


Thousands of Canadian business owners and financial managers turn to equipment leasing in Canada for asset financing.

We can safely say that this method of Canadian business finance can be a simple or as complex as you want to make it. Our goal is to ensure you consider don’t consider an equipment lease simply for the fact that you might feel you don't understand both the mechanics and advantages of this type of Canadian business financing .

Not all benefits might accrue to your firm when considering a lease, but you sure want to be able to maximize the tangible and intangible benefits oi those that do .

It's important to consider the entire lease process as a bit of a ' journey ‘, and when you are armed from start to finish through the whole process your probability of successful financing increases . And we can't over emphasize that just by knowing which parties you should be dealing with will give you a more favorable transaction success.

Let's go through a short 6 point check list of what you need to know to address lease financing success.

Point # 1- Be in a position to properly identify the type of asset and its cost when sleeting your lessor. Identifying the manufacturer, model number etc is critical to business finance companies that may or may not specialize in certain types of assets.

Point #2 - It’s always best to have a formal quote or pro forma invoice for the lessor. Remember the the ultimate invoice, because you're considering leasing should show that the invoice to is the lease company, and the ship to is in fact your firm. Another key point is that lease firms don't negotiate your final pricing and terms with the manufacturer, you do!

Point # 3- Payment to vendors is a critical issue, Always ensure those payment terms are understood by both your vendor and the lessor. That includes the currency component, and whether any sort of pre - payment prior to shipment is required. Good business finance companies and leasing firms are happy to correspond with your vendor and indicate you have been approved.

Point # 4 - Ensure you have a proper approval timeline in place. In some cases lease and busines finance companies have expiry dates on approvals. Complex assets might require additional time for ultimate delivery to your term.

Point # 5- Equipment leasing companies are asset financiers; it’s as simple as that. Don't ruin your relationship with such a firm by not clearly identifying where the asset is, both at inception of lease and during the term!

Point # 6 - Here is where the rubber hits the road on benefits of equipment finance. Simply speaking, make sure you understand the type of lease you require. In Canada that boils down to a capital ' lease to own ', or an operating ' lease to use '.

You can spend a hundred hours understanding some of the complexity around tax, accounting, end of term, and financial consequences of each of those lease types. This then becomes a great time to consider the assistance of a trusted advisor such as your accountant, lawyer, a peer/mentor, etc.

Speak to a trusted, credible and experienced Canadian business financing advisor to ensure you are on track, right from the ' get go ' for equipment leasing 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/equipment_leasing_business_finance_companies.html