Cash Flow Problems Hampering Growth? Survival? Canadian Business Working Capital Solutions. Right Here Right Now!

Solutions To Your Biggest Financial Dilemmas


Information on business working capital solutions for Canadian firms who face cash flow problems arising from growth . Measuring the problem and addressing the solution !






When Canadian business owners and financial managers encounter cash flow problems several business working capital solutions are available.

One of them is very ' not ' obvious which is to stop growing. That's a tough one for the entrepreneur to swallow of course. but it's true. Stopping growth means that additional funds are not needed to maintain higher level of inventories, receivables, or the need to invest in new equipment.

When you are in a turnaround or crisis type situation is when it's of course the most difficult time to grow and expand your business. That's simply because pressure from secured lenders and unsecured trade creditors is at its height. And that's never comfortable.

Today it might seem like we are talking about the not so obvious, so another key point that we will offer up is simply the fact that when you're focused on only growth there is a lot of room sometimes to hide cost or other issues that might be being mismanaged in your company.

Again, tough to swallow, but when you increase sales, as we said, you increase the need for working capital. If you stopped growing and simply ran your business efficiently you will probably find you can free up cash flow and cease the pressures with your lenders and suppliers.

That's also the best time, again as difficult as it may seem, to focus on profitable business as opposed to ' volume ' type business. We can't help but be reminded about the old saying ' we'll make it up on the volume '. Our point, you never do!

So instead of sometimes only trying to focus on growth and revenue Canadian business might well do better to address raising prices, and, heaven forbid, reducing sales! This frees up your current assets, which is at the core of your cash flow problems, as they represent your business working capital.

When you think of it, we're actually saying you should be setting up a comparison model between your cash flow and your sales growth.

Many businesses in Canada, (perhaps not tech type business) would be very happy with a ten percent year over year sales growth. Let's say you were focused on growing at 25% this year, a huge increase by any measure. However, profits and cash flow and working capital don't move lock step with those sales.

While profits on paper might show up nicely it’s the changes in your current assets you should be focusing on. Here is where you want to ensure that A/R is also rising at the same rate. This is not the time to be offering extended trade credit to your clients.

So, what have we focused on ?Just the basics, which are that in today’s case management and controlling growth have a huge effect on business working capital .

A perfect world just may exist when you're growing sales and addressing profit and cash flow issues at the same time.

Solutions for cash flow problems in Canada include asset based lending, receivable financing, mezzanine debt, purchase order/contract financing, and even monetization of your tax credits.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in the need for proper business working capital.





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.

Discover Why Leasing New And Used Construction Equipment Works. Lease Finance Equals Financial Flexibility !

A Solid Financial Strategy For Your Company’s Asset Needs




Certain types of asset classes lend themselves to maximum flexibility and maximum benefits when it comes to lease finance. Leasing new or used construction equipment definitely falls into that category.

The acquisition of these sorts of heavy ' yellow iron ' type assets ebbs and flows with the economy, and the Canadian economy has clearly ' righted' itself after several tough years.

The attractiveness of this type of financing is that it is applicable to all asset types and firms with different levels of credit quality. It's of course all about getting ' approved ' and using those assets to generate revenues and profits.

In many cases firms acquiring such equipment might be in the SME sector, even start ups. Therefore the general credit history of the owners is always on the table as a discussion point.

Lessees of other types of equipment might be surprised that lessees of new and used construction equipment can easily get approved despite a negative credit history.

The reason? Simply that these types of heavy equipment assets generally have a solid resale value, and in many cases hold significant value years later. That certainly isn’t the case in Computer and technology leasing, where assets quickly devalue as technology changes.


Owners of firms in the construction and heavy equipment area quickly recognize that lease finance is simply a very effective use of capital, and that capital translates very quickly into cash flow conservation.


When Canadian business owners and financial managers are looking to acquire, and lease these ' yellow iron' type of assets they need to consider three key factors.

First of all the type of lease they choose is important. It's at this time they need to consider the issue of ownership, i.e. who will own the asset at the end of the lease term. The majority of leasing we see in this area of the economy has the business owners and managers opting for a ' lease to own' type strategy. Title would only revert to the leasing company if your firm was unable to make payments and defaulted.

Understanding the real cost of a lease is critical to equipment finance success. That's our 2nd key point. Knowing the rate, and in particular how it's calculated can make or break some of the financial benefits of your lease transaction. Leasing companies in Canada can employ several ' tricks ' ( maybe we should call them pricing strategies!) to improve their yield, so be cautious of down payments, whether payments are calculated in advance or arrears, and how your purchase option figures into the total pricing.

We maintain there is no real difference, from a financing perspective, if you choose a new or used asset. In some cases your firm simply might have access to a great deal on a used piece of equipment, so financing that ' good deal ' makes even more sense. We do not agree with some that maintain it's difficult to lease used construction equipment. It can easily be done!

Pricing in your transaction will depend on your firms overall credit quality, and the industry in Canada divides itself nicely into different tiers of pricing, credit, and asset quality.

Firms with lower overall credit quality can expect some form of down payment, or perhaps a shortened amortization on the term of the transaction.


When you choose lease finance you are making a trade off between financing costs and conservation of capital. For most businesses in the SME sector conservation of capital becomes priority one and leasing wins that decision.

So there you have it. Whether you are looking for trucks, excavators, bulldozers, all other ' yellow iron ' your asset finance needs can be satisfied.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your new and used construction equipment finance 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.

Show Me The ( Film , TV, Animation Tax Credit ) Money! Financing Your Canadian Tax Credit . Tax Incentives Finance Works!

Canadian film tax credit finance - Financing movie , tv and animation tax credits


Show me the money! It's a ' well worn ' phrase from a movie that we'll use as a ' stunt double' for Canadian film, TV, and animation tax credit financing. The finance of those incentives has helped make Canada one of the strongest centres for production in the genres of film, TV and animation.

And talk about a growth industry - it's actually growing, with 2011 productions in the 5 and 1/2 billion dollar range.

A tax credit incentive is available in each of those three genres or sectors of the entertainment industry. In reality in the past year tax credits accounted for 28% of the entire industry, a staggering number.

So why Canada? It's not that hard of a sell, its all about the same word that people all over the world associate with Canada, its economy, its banking, and its general all around.... stability!

Canada is also a great foreign shooting location, geographically, and from a cost perspective.

Everyone has heard the term ' Hollywood North ‘, and it's not hard to determine why when key provinces such as Ontario have begun an 25% all spend tax credit , surpassing British Columbia for the first time in several years .

In film, TV and animation projects it's all about the budget. That’s why many foreign productions seem to be shot here, due to your projects ability to generate strong tax credit, and resultant tax incentive financing from banks and Canadian independent non regulated financial firms specializing in tax credit finance.

Certain Canadian banking institutions have become leaders in tax credit monetization, and in some cases have started to rival U.S. firm in tax incentive financing. And every so slowly many other firms are getting back into the riskier areas of entertainment finance, areas such as gap and mezzanine financing.

Tax credits are one of the other components of equity, or the producer’s proverbial ' skin in the game '.

Canadian refundable tax credits focus on Canadian content and production spending in Canada. Typically each project is set up a separate legal entity, although it can be foreign controlled. Many projects in all three of our genres are part of international treaties between Canada and certain other countries.

There are numerous technical aspects to co production type credits. As an example a Korean project which domiciles itself in Canada as an international business gets a corporate tax refund of 10%.

As a producer/owner you can benefit from film, TV and animation tax credit financing via your Canadian content credit. The Canadian Film/Video Production tax credit provides you with a credit equal to 25% of qualified labor spend, to a maximum of 60% of the cost of the total production.

Financing your tax credit simply accelerates your cash flow and overall return on investment. To qualify for the credit, and of course the financing of that credit your project must be a Canadian controlled entity. Your Canadian tax credit accountant qualifies you for the tax credit certificate based on a points system around Canadian content and who is involved with the project re producer, production costs spent in Canada, etc .

Certain projects don't qualify for the tax credit, for example game shows, ' reality TV', sports, porn, or blatant ' advertising '. It's an accumulation of specific points that qualify you for the tax credit certificate.

Your tax credit financing is accomplished on a when filed, or accrual type basis. Simply speaking you can monetize the tax credit when you have received and filed it, and when your production is complete. Many projects qualify for ' accrual financing ‘, reimbursing you for expenses as your spend incurs, in effect helping to ' cash flow ' your project.

A quick example on a 1 Million dollar budget for, say an independent production might net you a total of 40% or more in total tax credits, which are financeable to provide working capital for the current (or your next project). So whether you are a 100% Canadian project, or if you're associated with one of Canada’s 56 treaty countries consider the tax credit as part of your overall financing plan.

We have focused on film and TV but animation and Transmedia is 100% eligible for significant tax credit finance.

Speak to a trusted, credible and experienced Canadian business financing advisor on the financing of tax credit incentives in film, television, and animation/transmedia genres. That tax credit will ' show you the money '!





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.

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