Do Something Uncomfortable . Try ABL Finance As Your Canadian Asset Based Lending And Financing Alternative!

Canadian Asset Based Lines Of Credit


Information on ABL finance in Canada. Reasons why asset based lending is the new paradigm in Canadian business financing .



We can't speak for everyone but isn't it safe to say that either in our personal lives, or in business we're often reluctant to enter into a new situations simply because of the feeling of uncomfortableness. That's one of the reasons why Canadian business owners and financial managers might be reluctant to step outside their zone of comfort when it comes to looking at financing via ABL finance; an asset based lending arrangement for their new business line of credit facility.

We would maintain it’s hardly a risk, as an asset based line of credit revolving facility is becoming more mainstream and popular everyday.

In some cases it simply not knowing what an initial course of action might be. That's actually quite simple - investigate what ABL, how it works, what are the benefits, what are the costs, and finally get a sense of how and why it differs from bank facilities.

It's clear to most business owners that the Canadian economy is clearly improving over the challenges of recent years. That's why it’s critical that firms such as yours have the ability to secure sufficient funding to support their growth and survival. It has been that access to funding that has been one of the greatest hurdles

It's clear to many Canadian firms that capital is available, it's simply a case
of being able to access funding that in many cases Canadian chartered banks are reluctant to make available. Canadian bank facilities via commercial business lines are credit are clearly the low cost solution and can offer numerous other services such as cash management, forex, etc.

But what if traditional bank lines of credit are not available to your firm? Enter asset based lending! This is where that feeling of ‘uncomfortable 'might be setting in. Why? Simply because it’s different, in that it focuses solely on your asset and your company's ability to turn those assets into cash flow.

Why is ABL finance a better fit in many cases. We'll offer up simply the fact that it supports growth and a number of unique needs your firm might have.

Recent studies suggest that asset based lending grew over 25% in Canada over the last year or so. The vast majority of this activity is clearly the refinancing of existing bank lines and turning them into an ABL financing arrangement.

In Canada large cap ABL financing is very different from facilities sought by smaller firms. Larger facilities often start in the 5-10 Million dollar ranges and go into the tens and hundreds of millions of dollars. The same type of facility is also available to firms in the SME sector where these working capital faculties start in the 250k+ range. Talk about a broad spectrum.

And that broad spectrum translates into a wide variety of rates and deal structures.

There is a lack of information quite often to the SME borrower who has heard about ABL finance, wants to know more, and might think his or her facility isn’t relevant, if not for size alone. In our opinion the majority of Canadian business owners and financial managers are ' desperate' for quality information on Canadian business financing alternatives.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in both understanding and creating an ABL facility to turn your collateral into cash flow, quickly, and efficiently.





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.

The Real Truth On Canadian Film Tax Credit – Let Movie & Animation Financing Refund Loans Enhance Your Project

You already have the financing in place that it takes to make a winning film, animation, and TV project successful - you just might not know it.

We're talking about the Canadian film tax credit system, and why movie and animation refund financing of your tax credit can be the last piece of the puzzle in your Canadian production, or U.S./Canadian co -production.

The reality is, and of course we're sorry (kind of ...) that more and more U.S. regions are eliminating or downsizing the film and animation tax credits that can often make or break your projects final success. In fact, using Hollywood California as an example, as at June 2011 the state has in fact used up all their tax credits for the remainder of the year! No wonder why U.S. and of course Canadian producers and owners realize the Canadian system is still committed to job creation and support of the industry.

Ours has never been to debate the merits of the Canadian film tax credit (animation and TV included of course)... Ours has been to promote it and ensure our clients are using it. In Canada , aka Hollywood North the tax credits are viewed in all provinces as great economic and tourism development, and, as we said , we're not arguing!

In Canada the film, TV, movie and animation credits can generally get up to 40% of your project financed. That of course leaves the other 60% up to you, but what a great head start!

Although most producers and owners think of the Canadian film tax credit in terms of movies/ film etc. the Digital media area is probably growing the quickest. 6 of Canada's ten provinces already have a separate special digital media tax credit in place.

B.C. has a very strong and growing animation environment (could that be because of its proximity to California?!) and provides 17 1/2% credit to your total labour cost on any project.

While most U.S. and Canadian producers always tend to think in terms of Toronto, Montreal and Vancouver as major film and production and animation centres the reality is currently that the most lucrative digital tax credit is out of Nova Scotia. They have a very simple formula, 50% of expenditures that qualify under the legislation, or 25% of your total budget. Your tax credit accountant and Canadian business financing advisor can assist you in maximizing what works best for your project.

Quebec also increased and broadened its tax credits, with 25% of all expenditures qualifying for a Canadian film tax credit refund. When you compliment this with the federal Productions Services tax credit an additional 16% of financing becomes available.

Naturally there are all sorts of nuances in maximizing and qualifying for your tax credits. Producers should in general always set up a special purpose entity and typically should own the copyright or content.

Your tax credits in Canada can be financed, either through traditional sources, or independent firms specializing in this type of financing, also at the same time usually helping you maximize the credits. Financing is available on a ‘when completed ' basis, or, often more desirable, on an accrual basis as you start to spend on your project. Bottom line: Cash flow and working capital for your project.

So, as we said your challenge is equity, debt, gap pre -sales, etc. But let tax credits be the final component to your projects success.

If you choose you could creatively carve out the tax credit from your overall finance plan and enhance the equity position, of simply finance the credit refund on its own. Use your tax credit to either attract an investor, or as a stand alone component.

When you want the real truth and current dynamics of the Canadian film tax credit and refinancing strategies speak to a trusted, credible and experienced Canadian business financing advisor.

P.S. Mr. Demille - we're ready for our (tax credit) close up!

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