BUSINESS FINANCING CANADA: Canadian Receivables Financing ‘ Grow Cash Flow And Lose Money ! Receivable Factoring Equals Business Cash Flow

BUSINESS FINANCING CANADA: Canadian Receivables Financing ‘ Grow Cash Flow And Lose Money ! Receivable Factoring Equals Business Cash Flow

Canadian Receivables Financing ‘ Grow Cash Flow And Lose Money ! Receivable Factoring Equals Business Cash Flow

Why Canadian A/R Finance Just Might Be The Cash Flow Solution You Are Looking For!


Information on receivables financing for Canadian business . Receivable factoring is a cash flow generator and here’s why



Canadian business owners and financial managers should not be ' tricked' around our statement of 'grow cash flow' and ' lose money’ as a recommended strategy. But when they understand the essence of receivables financing they do see the truth in that statement, which revolves around how receivable factoring is priced and how it benefits their benefits their business.

Receivable finance is a source of working capital. It is not debt financing, which is a common misperception of what it is and how it affects your business. In technical terms the A/R is sold to your A/R partner. That sale is done at a discount basis, meaning that over a 30 day period you would typically receive 98,000.00 on a 100,000.00 receivable. That 2k cost is in essence a loss, or a financing cost. What you do with those funds and how you run your business allow you to sell more, do more, and recover a huge portion of that financing cost.

This type of financing arrangement is used in a wide variety of industries in Canada, by thousands of companies, including, we bet, many of your competitors.

If we had to identify the two major benefits of this method of Canadian business financing we would say it’s simply the high advance rate on your sale/receivable, as well as of course the quick turnaround.

Quick turnaround? If you consider same day funding for any sale you make in our book that’s a quick turnaround.

Relatively speaking (relative, say, to a Canadian chartered bank) the financing is perceived as expensive. We say perception, because when we sit down with clients and review the fact that they are already carrying receivables anywhere from 60-90 days , plus the fact that the new found cash flow can be used for a variety of profit generating activities .. well we think you get the point. And that's that perception is not always reality.

When receivables financing arrangements are done properly you are even in a position to ensure that you are not introducing a third party to your client process. Our recommended strategy is a C I D facility, which is the term for confidential invoice discounting, allowing you to bill and collect your own A/R, reaping the benefits and eliminating the disclosure!

We're pretty sure you're getting our main point today, which is simply that information, facts, and the proper interpretation around this method of financing is what generates a winning combination.

Some of the key benefits can simply be grouped under the term ' predictable cash flow. And if you choose the right partner firm and our recommended confidential A/R facility your strong customer relationships stay intact.

We're open enough to say that the majority of firms who in fact entertain receivable factoring can't get financing elsewhere, particularly at their bank. But don't forget also that many instances involve firms such as yours who are growing too quickly or who have landed that ' big contract' or order. It's at this time that busines owners appreciate the fact that their net worth, profitability, debt coverage, or operating losses arent under the microscope anymore. And your firm is free to explore other methods of debt financing outside your A/R assets.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you to work through the benefits of this type of finance.




Stan Prokop - founder of 7 Park Avenue Financial –


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/receivables_financing_receivable_factoring_cash.html

A SRED Reboot? Maybe , But Not For Your SRED Financing Needs! Finance Your SR Tax Credit Consultant Claims Today

SRED Is In The Garage Getting Fixed , But SR&ED Financing Still Works !


Information on SRED financing in Canada . You Can still finance the claim prepared by your SR&ED consultant . Tax Credit Monetization works for cash flow still works!




We're all familiar with the good news / bad news phrase. So which do you want first? We're optimists, so let’s go with the good news. SRED financing is alive, well and kicking. We're not sure your SR&ED consultant is as happy and bullish as us these days on the sr&ed consultant outlook as a whole. The reason. Seems the good folks in Ottawa aren’t 100% happy with the program; at least that's our interpretation.

While thousands of firms are still aggressively planning to file claims via their Sr&ed consultant for their non repayable tax credit refund just as many might be wondering if financing that claim is still valid and accessible . The answer - a resounding yes!

Statistics in recent years show that over 20,000 claims annually, if not more are filed by firms just like yours. And as a note from our view in the trenches, all of those firms still view that tax credit claim as a key, if not major source of financing for their firm. It's the private companies in the SME ( small to medium enterprise ) sector that file the majority of those claims .That cash flow, when received allows them to do a number of things, including furthering additional r&d, starting or furthering revenue and marketing , and by virtue of that Sr&ed work maintaining their particular dominance in their niche .

Supposedly the worst news seems to infer that claims will either be reduced in some manner, or eliminated to some and focused on others.

Again, we'll leave that to the experts, pundits, and oh my god the politicians; we'll focus instead on the monetizing of those claims into real cash flow and working capital.

Your SRED financing can take one of two forms in Canada. You can cash flow your claim anytime immediately after you file it, or alternatively (with a bit of a track record behind you) you can finance your claim on an accrual basis.

The accrual concept is becoming increasingly popular as it simple fast tracks cash flow re your R&D spend. In essence you're recovering a portion of your R&D as you spend on it. That’s a solid business premise as most Canadian business owners and financial managers would agree.

SRED finance is agnostic to who prepares your claim, if, and it’s a pretty basic if, your claim is prepared by a bona fide Sr&ed consultant with some level of credentials and expertise. As the majority of sred consultants seem to work on contingency naturally they are in some ways more at risk than your firm, so it’s quite easy via references to find a suitable party to submit your claim. Ironically it seems that the consultants themselves are somewhat under attack in the program, but again, that's hearsay.

The actual financing of your tax credit. Simple, as we stated. We explain to clients that they should view the process as a standard business application that is secured by the tax credit claim itself.

Other key aspects of the Sred financing? The basics are as follows: 70% loan to value funding for your filed claim. Typically no payments are made during the duration of the loan, and final adjustments are made at government finalization, returning to your firm the balance of 30% less financing costs. Accrual financing for your tax credit claim might be funded at a lower loan to value.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your tax credit finance loan 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/sred_financing_sr_ed_finance_consultant_tax_credit.html

The Great Debunk On SBL Government Loans . The Canada Small Business Loan . Now You Know

At Last - The Real Scoop On The ‘SBL ‘


Information on SBL government loans in Canada . Small business financing success can be yours with this information




Nothing is as satisfying as setting the record straight on myths and misinterpretation in Canadian business financing. That's why we're ' debunking 4 , can we call them ‘ urban myths ‘about SBL government loans , It's your Biz 101 on the small business loan, which by the way, at 350k maximum has never really seemed that small to us . Here we go!




1. Because of the general tight credit environment there is a common belief among many that SBL loans are not being made. Using 2010 as the most readily available data clients are often surprised to hear that over 7000 gov’t small business loans were made that year, for several Billion, yes that’s Billion with ‘b’ dollars. So never think that there is not a healthy environment for qualified business owners and entrepreneurs for the Industry Canada BIL loan.



2. It’s not easy. That's probably one of the most common things we hear about the program. All we can say to that is that it's as hard as you make it, because the program is very defined , needs only a handful of criteria for successful completion, and at the same time provides great terms, rates, structures, limited guarantees, etc around the financing you will receive . Where it does not become easy is when you don't understand the process and qualifications.
3. It takes forever. Well if you consider two days forever we suppose you're right, but a proper submission under the program will usually come back with a final approval (or decline) within a day or two. Our own experience is that there is sometimes some back and forth on a transaction after it has been submitted which are essentially some ‘clean up ‘items or clarifications required by the underwriter.



4. Myth # 4 - You don't need a business plan. Plain and simple, you're wrong, because successful submission under the program always need a business plan, Does it have to be professionally prepared and follow general guidelines around this type of document, no, but clearly a well thought out plan that provides a clear overview of who you are, what your business is, and the financial potential is important. Remember, the SBL underwriter isn't sharing the profits or future profits of your business; he or she just wants to know they have a reasonable chance of getting repaid out of your sales and resultant cash flow.


So that’s the great ‘debunk’ on SBL Canada government loans. You're now well armed and informed to move ahead towards financing success. Speak to a trusted, credible and experienced Canada business financing advisor for assistance with your government loan.




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.html

Baffled By Franchise Loans In Canada? Beating Franchisee Financing Challenges

Uncomplicate Canadian Franchise Financing


Information on franchise loans in Canada. How can the entrepreneur take the mystery out of franchisee financing and funding for their business acquisition from the franchisor or resale .


Safe to say that many potential franchisees considering the purchase of their business are somewhat baffled by some key issues which ultimately could affect the success of their business purchase.

Basic things, such as have they chosen the right franchise that suits their skills, interests, have they investigated the basics of franchisee financing in Canada, and do they have the resources and time and information to properly complete the purchase . In some cases their funding might involve the purchase of an existing business in the franchise model, i.e. a sale from a current franchisee, In that case their question is ' are their franchise loans to cover off the purchase of a resale franchise ' and how do they differ from a new unit purchase?

All are key issues that warrant special consideration. We are often amused because we see clients at both ends of the extreme; some thing that franchising is rife with pitfalls and risk and simply a bit too complicated, while at the other end of the spectrum there are those that seem to consider the whole process somewhat of a ' cake walk ' and arent really prepared to focus on issues that will make or break their success.

Does it make sense to align yourself with a Canadian or a U.S. franchisor? There's probably no absolute answer on that one, but we will offer up that all things being equal you will find that no matter on what side of the border your franchisor is domiciled key areas such as their current success, prospects, financial stability, and management team and support all are key to your success - So focus on those issues .

It may be surprising to know that one of the current challenges in the industry is the fact that it's difficult for a franchise owner to expand and grow additional units in his or her mini empire. However when this can be achieved as an entrepreneur you now have the ability to expand your success with a minimum of capital, leveraging your ability to increases profits and value in your enterprise.

Franchisee's need to be in a position to properly address the financial benefits of their purchase. Their ability to realistically assess the total profit potential of their purchase, as well as the ability to maintain an income and lifestyle they desire are key. This is best achieved by proper financial planning via a business plan and growth analysis of the business. This can be prepared by the franchisee or with the aid of their accountant, advisor, etc. The worst thing any potential purchasor can do is not address the financial risk and return on investment in a business purchase - that of course goes for purchasing a franchise or any business for that matter.

In Canada franchise loans can be accomplished in several ways. You have the option of dealing with a specialized franchise finance firm, but their assistance may be limited to franchise systems you personally are not interested in, or perhaps don't have financial strength to participate in. Franchises these days range in size from a few thousand dollars to several million, and everything in between. Focus on matching your personal financial commitment to the franchise and aligning it with the total investment you need to consummate your purchase.

Thousands of Canadian entrepreneurs choose the Government BIL loan program to complete their franchisee financing goals. Key benefits are a modest investment of your personal funds, and very acceptable rates, terms and structures when it comes to your personal guarantee, ability to repay without penalty, etc. Investigation of this program is highly recommended.

Purchasing a resale franchise if a very viable strategy. Franchise loans and funding for this type of purchase are also available, but the process is a bit different, simply because you're purchasing an existing business. Key elements of a resale purchase are validation of existing financials, valuation of assets already in the business, and a financing that covers off an asset sale as opposed to a share sale.

With the proper assistance Canadian entrepreneurs should not be' baffled' with either the selection of a franchise or the financing of it. Speak to a trusted, credible and experienced Canadian business financing advisor to get the right objective advice and assistance you need.




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_franchising_financing_funding.html

Zero To Sixty In Canadian Business Financing . ABL Asset Based Lending Is A Trend You Can’t Not Consider

Financial Flexibility In A True Business Finance Solution


Information on abl asset based lending in Canada . Why this type of business financing credit facility is growing in popularity .



Zero to 60... It’s a popular connotation of getting their quickly. So how can a business financing vehicle that was in the ' old days ' considered alternative suddenly be popular and mainstream , and even more so, get your company to your goal .. quickly? That's what we maintain ABL asset based lending does for Canadian business owners and financial managers looking for an alternative business line of credit facility.

One reason you can get to that goal quickly is that there is only one primary requirement for qualification under this type of facility, and that's ' asset ' strength. These assets are monetized, or collateralized if you will, allowing you to turn their total market values into a revolving credit facility.

Even though in the majority of cases ABL financing is more expensive than what we term the ' traditional' bank loan they are of course lower than the cost of equity, which most owners wish to avoid as they grow their business to a higher valuation. Oh, and by the way, on larger higher quality transaction a true asset based line of credit from a bona fide asset based lending firm can actually be equal to or cheaper than, in financing cost, than your Canadian chartered bank facility .

Valuation of your business assets (receivables, inventory, equipment, real estate, etc) is the key driver in the liquidity solution. Very typical margin rates on assets include 90% of your A/R; anywhere form 30-70% of inventory, and market values of real estate and unencumbered fixed assets.

A couple points quickly emerge around the benefits of this type of financing. One is very simple. A quicker approval, because the focus isn’t necessarily on the financial covenants and ratios or overall credit quality of your business, instead it always comes back to asset availability.

Another point is flexibility. We see this lot. And it all comes down to the fact that there is a good chance that your business is different from many other businesses and in a different type of industry. We quite often see that a tremendous amount of flexibility can be applied, via ABL asset based lending, to your particular circumstances. Some of those circumstances might be seasonality of your revenues and cash flows, etc.

As asset based lending in Canada matures (in general terms it's relatively new) there is simply going to be more choices, competitive costs, etc from the providers of this service. Surprisingly in some cases Canada's banks in fact recognize this trend and many have ABL solutions that to a certain degree ' compete ' with their more traditional commercial borrowing facilities. In Canada we're even getting back to the point where business liquidity is getting back to normal and we can almost make the statement that there is more capital than transactions. From the borrowers perspective that's a good thing.

It's important to think of this type of business financing as a revolving line of credit, it’s not a loan per se, and adds no debt to your balance sheet. So if you have those assets, and can't obtain traditional credit, use our ' zero to 60' approach for quick access to business credit.

Speak to a trusted, credible and experienced Canadian business financing advisor on a financing alternative that is achievable for your firm, no matter what your particular circumstances are.





Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


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


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

Inigo Montoya’s Guide to Cash Flow Financing . The Business Working Capital Loan demystified !

New Rules For Working Capital Finance In Canada

Information on the concept of cash flow in business financing in Canada . What type of working capital loan does the Canadian business owner need .



Have we got a story for you! Actually it's not even a story, it’s a fairy tale. A fairy tale? Truth to be told it’s actually been told already - we talking about the movie ' THE PRINCESS BRIDE ' which some might associate for kids, but it's actually on a few different levels.

A character in the movie is Inigo Montoya . So, Inigo Montoya? The Princess Bride? Oh, yes and cash flow financing! What in the heck could they have to do with each other? Let's explain.

In the movie our friend Inigo is known for always saying ' I do not think it means what you think it means ‘. That's our premise today on ' cash flow. With apologies to Inigo Montoya.


Business cash flow financing. We hear that a lot, clients want to talk to us about it a lot, and most of all, we hear about it in an inconceivable number of ways. Cash flow and its sister, working capital can be used in very direct ways or obscure ways. The offerings that bring about cash flow financing solutions are both direct and indirect.


A good bottom line for us to focus on is that cash flow is a crucial way of determining your company’s health. So that is why it’s a good way to get a handle on processes around cash flow in your company, our terminology (here we go again with Inigo) as well as what internal and external ' players' can affect your cash flow performance...

As we said, cash flow, as well as profit are what most people would agree are the two most important measurements to determine if Canadian business owners and financial managers are winning. The reality is though that while you might look at those two measurements over, say, a yearly period they are quite different and have different uses or meanings to you, the business owner or manager.

Suffice to say that when you are looking at operational issues and challenges the focus is often more clearly on cash flow and working capital as opposed to profit. Ironically we find that when we talk to people about their stock investments in individual firms they talk about profit more than cash flow... we'll never figure that one out.

Should you be surprised when you are doing well, (from a profit perspective meaning of course expenses were less than sales) that you are out, or short of cash? Naturally if you could immediate ' cash flow ' or monetize all that revenue you wouldn’t be in this position, right.

The three elements of your cash flow statement are financing, investment and operations. They affect cash flow in different ways. Challenges arise when you find you can't invest what you need in your business or that you need to take on more debt.

So, cash flow. As we said, there isn't a day when we don't hear about a different meaning or interpretation of the term. In a way they are all correct, it’s about managing your cash inflows, budgeting your cash flow, granting credit to clients,

Are their solutions to your working capital loan or monetization challenges in Canada? You bet there are. They include turning that revenue and those receivables and inventory into business working capital, either via a loan or direct monetization. Solutions include receivable finance, inventory financing, sale leaseback finance , asset based lending, confidential invoice finance, tax credit monetization, and a working capital term loan.

Speak to a trusted, credible and experienced Canadian business financing advisor for solutions that make sense to you. With apologies to our good friend Inigo Montoya!






Stan Prokop - founder of 7 Park Avenue Financial –


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


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