Let An ABL Revolver Facility Be Your New Canadian Asset Backed Lending Business Line Of Credit

Looking For A New Type Of Business Line Of Credit ?

Information on the ABL revolver facility business line of credit . This financing via asset backed lending is a strong alternative to traditional bank financing .




The ABL Revolver facility. Is it the business financing mechanism that can fill the gap your firm is experiencing in a business line of credit? Asset backed lending is working for thousands of firms who probably just several years ago had never heard of it! Here's why.

To understand the benefits, and the growing popularity of this type of business credit it's important to have a general sense of the landscape. The Canadian economy is of course way past the financial crisis it encountered in the 2008-2009 timeframe. But while that seems to be well behind us a lot of things changed in between. The bottom line is that post crisis lending for Canadian business owners and financial managers diminished and changed significantly.

How did things change? Simply put stricter lending criteria are in place and certain industries are out of favor. Canadian banks are renowned for their strength, stability, etc and they are always up for firms that have stellar credit and prospects in industries that are very much in favor. That’s great of course ... except ... what about the thousands of firms who have challenges and still have a demand for expansion of their business credit line?

That's where the ABL revolver business line of credit comes into play. Your firm might not be ' creditworthy' when it comes to a traditional Canadian chartered bank, but if it has assets, notwithstanding leverage or other issues it is still very much a candidate for asset backed lending.

ABL facilities focus solely on collateral - That's where 99% of the emphasis is, and the asset backed lender has the expertise, people and systems to lend against that collateral. The assets in question are the basics: inventory, receivables, equipment that is not encumbered and even real estate.

Your revolver facility, similar to a bank line of credit is monitored and managed, and yes, margined significantly against those same assets. They are in effect your ' borrowing base '.

It's ironic but many banks actually refer deals to an asset based lender because they are not really in position to ' count the boxes' in, for example, an inventory situation. The ABL lender is very happy to count the boxes (as long as they are full!). So just to reemphasize our point, the bank is interested in monitoring your performance via financial statements; the ABL lender is focused on monitoring those assets. You report on those assets probably much more than you would in a typical bank environment, but the advantage is pretty significant - you are getting typically 90% of A/R, anywhere from 30-70% on inventory, and market values in real estate and equip.

The asset backed lender is set up to for real ' heavy lifting' on your assets. By a combination of reporting and periodic visits they can feel comfortable in lending against all your business assets, notwithstanding financial performance. A company can still be losing money, having a bad year, in restructuring mode, etc and still have access to very significant business lines of credit.

If your company has a good mgmt team, proper asset controls you can experience significant upside in business credit via an ABL.

Speak to a trusted, credible and experienced Canadian business financing advisor who can help you ' fill the gap' in your business line of credit situation.





Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com

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

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

Buying And Financing A Business Acquisition . Loans To Finance Existing Businesses In Canada

Buying a business? Need Financing ?

Information on buying and financing a business acquisition in Canada . Loans and Finance availability for the SME sector of Canadian business .



Buying and financing a business acquisition is one of the major challenges of firms in the SME (Small and medium enterprise) sector in Canada.
Unlike the big boys who have access and funds available to hire expensive talent to complete the transaction the Canadian SME business owner and financial manager has the desire to complete a transaction , but needs help and information they traditionally don't have immediate access to .

Naturally acquisitions can be completed via an all cash purchase, the reality is that most businesses don' have the capital to complete a deal in that manner. And another thing, completing a transaction without acquisition loans and funding doesn't make perfect sense all the time because you are not taking advantage of leverage and return on investment.

So what information is in fact required as you are contemplating buying that firm? Is there in fact a ' short list ' of information? A great start would be some basics such as a business plan or executive summary which profiles the transaction.

Other critical data are the financial statements of the firm you are acquiring, some cash flow analysis, and most importantly, some financial modeling around the future profitability and cash flow generation of the combined business.

It’s those cash flows of course that will repay your business acquisition loans and financing!

A key concept around your deal is the equity component in the transaction. There has to be some reasonable equity in the combined firm, and that can come from your firm, the assets of the firm you are acquiring, or potentially some new equity and ownership participation.

So what can go wrong in a transaction like this? Well without the assistance or information we have spoken of, lots!

Timing is always a key component of your deal. The closing of your transaction can be driven by external deadlines, the deadlines imposed by the seller, or your own commitments to closing. Bottom line, leave enough time - it’s as simple as that.

A lot of transactions we look at have some huge ' gaps ' of missing information. To complete a proper purchase and financing a business acquisition properly with the right amount of loans, debt, etc requires all the missing pieces in the financial puzzle to be on the table.

So how can the acquisition be financed? There are some great and innovative strategies you can utilize to complete a deal successfully. They include and asset based lending scenario which monetizes the assets of the sellers firm. Smaller transactions under 350k can be efficiently handled via the Canadian CSBF loan program which has solid rates, terms and structures.

Business people need to remember also that you need to borrow enough to not only acquire the business, but to ensure you have the working capital and access to liquidity to grow the firm.

There are some great reasons to consider buying and financing a business. Some typical reasons include diversification, the ability to grow sales and reduce costs on a synergistic basis, and in some cases you just might have discovered a ' jewel in the barn ' - the type of firm that is undervalued or has a motivated seller.

Your key goals are to analyze the operating activities of the firm to be acquired, ensure you have a financing plan in place, and, as we said ensure you have the capital ready to ensure proper cash flow and replacement and upgrade of any needed assets.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business acquisition loans and financing 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.
Info re: Canadian business financing & contact details :


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

6 Reasons To Consider Business Equipment Financing . Asset Finance Power Tools For Your Company

Immediate Asset Finance Cash Flow Savings


Information on asset finance . Why business equipment financing from Canadian leasing companies works for your firm . 6 Reasons to lease .




Business equipment financing continues to be by far the most popular method of asset finance for the Canadian company wishing to make fixed asset acquisitions. Virtually every type of asset class can be financed, and the lease finance industry as a whole is not prejudiced when it comes to industry types - every industry utilizes this financing mechanism.

The ability of Canadian companies to realize the benefits of this key aspect of Canadian business financing makes it more popular everyday. Leases are often confused or lumped in together with equipment loans and it’s at this time you need to know some of the basic aspects of accounting, tax and legal when it comes to differentiating between the two.

Operating leases tend to sometimes bring the most amount of confusion to the table, simply because when they are not structured properly they could be treated as a loan and additional debt on your balance sheet.

Let's examine 6 powerful reasons to use business equipment financing in Canada. Reason # 1 is certainly not our most favorite, but it tends to be the clients, and that’s simply the issue surrounding rates and payments.

Clients like both of those to be... low! While many other aspects of equipment leasing in Canada tend to be as important business owners and financial managers always seem to be looking for the most economical way of acquiring assets. There is an old joke among leasing companies that is unfortunately at the expense of you the lessee. It's simply that any firm can guarantee you the lowest rate, if, and it’s a big if... you sign their lease contract. That of course infers that many other scenarios come into play when it comes to the proverbial monthly payment.

The reality also is that when you focus in on rates only you miss many of the value add dimensions of business lease. some of which are equally as important as we have said. Bottom line, don't always thing asset finance via leasing is a commodity!

Reason # 2 to consider is the whole issue of assets, or fear of assets. Naturally you want to also separate the issue of the price of the asset from the financing - car dealers are masters of that one when it comes to intertwining them as we as consumers know. Leasing allows you to focus on the asset itself and the productivity that comes from it. Leasing provides a great return on investment when you consider the asset in terms of return on investment and cash outflows.

Reason # 3- Managements pay cheque ! What do we mean by that? Simply that many medium size and larger corporations compensate management on finance lingo such as EBITDA. Depending on how your management is measured when it comes to economic performance and ROI the right type of lease strategy can enhance that calculation. Another quick example, operating lease transactions reduce capital outlays.

Reason # 4- It’s all about the money ... or the cash flow conservation. Quite frankly many firms have to lease, they don’t have a choice, because when it comes to working capital you are conserving it via a business equipment financing strategy. Down payments are also eliminated or diminished. 100% financing is very often achievable via lease asset finance.


Reason # 5- Your balance sheet. Properly structured operating leases, aka the ' lease to use ' option can enhance your balance sheet. Even if bankers and other lenders add the assets back in them quite often will not add in the entire original balance. Technology acquisitions in Canada in computing, telecom, etc are perfect for operating leases, as they eliminate technological obsolescence.

Do we have a final reason today? We sure do, and it’s simply the issue of convenience. An asset finance company can approve and structure a proper lease for your firm in a matter of days. Small transactions in the industry are actually often approved and financed within 24-48 hrs! You can easily these days perform a lease vs. buy calculation and also bundle in numerous other services into your transaction.

Consider speaking to a trusted, credible and experienced Canadian business financing advisor to ensure you're focused on our 6 great reasons to consider business equipment financing.







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_equipment_financing_asset_finance_company.html

8 Reasons To Consider Canadian Receivables Finance And Accounts Receivable Service For Cash Flow

Compelling Reasons To Consider An A/R Finance Strategy


Information on Canadian receivables finance and why an accounts receivable service can turn your firm into a positive cash flow generator immediately .



Receivables Finance! said the client. ‘Give me one good reason why .... ' We hear that one a lot , so we'll do one better and provide him, or her with 8 solid business reasons to consider an account receivable service for your cash flow financing needs .

Reason # 1 is simply growth... one of the ultimate ironies we have found in business financing is that many clients are punished for growing. Generally of course that's growing too fast and traditional banking in Canada somewhat dislikes high growth.

But tell that to the entrepreneur who has been building his or her company, or working forever on that major contract or sale. We have said it before and we'll say it again, a surefire method to generate positive cash flow immediately is to slow down sales and accelerate collections. You'll be flush with cash, but guess what, you won’t be growing and that’s the dream of most entrepreneurs and business owners.

A/R finance likes, no, scratch that, loves! growth. In fact under most facilities you will enter into for this method of Canadian business financing you are automatically approved for whatever level of financing you need, as long as you have the sales and resultant receivables to back up your request.

Reason # 2- the ability to purchase smarter and harder. With the cash on hand from your instant a/r collections via receivables finance you are in a position to negotiate better pricing with key suppliers, giving them at the same time the assurance you will pay .

Reason # 3 - This is a powerful but often overlooked one. It's simply your new found ability to take prompt payment discounting, typically 2%, off major purchases. That reduces the cost of an accounts receivable service significantly.

Reason # 4- Timing and speed. A solid A/R facility financing can usually be put in place within a week or two. Compare that to the time it takes to set up a bank facility with all the requirements imposed by Chartered banks in Canada, which by the way also include profitability, personal guarantees, potential outside collateral, etc .

Reason # 5 - This one is a bit tricky. Under traditional A/R finance in Canada utilizing the popular U.S. model the finance firm takes over all your collections, after all they have purchased the receivable. That reduces collections costs and focus by the Canadian business owner.

That’s all good, but we'll point out that our favorite and in fact recommended facility is a confidential invoice financing, wherein you bill and collect your own receivables and sales. So in this case opting for our recommended solution would in fact not save you the burden of collections and customer interfacing.

Reason # 6 - You're in control. In Canadian A/R finance you are under no obligation to finance all your A/R, so you only pay for financing you use, when you need it. That’s flexibility. Many bank facilities have standby and usages fees that kick in when the facility is not used. That’s not the case with Canadian accounts receivable service finance.

Reason # 7 - Customers who have liabilities with Canada Revenue for source deductions, H.S.T. etc and in fact use their a/r advances to clear up these federal and onerous obligations . That's a good thing, as the tax man should be on your side, not at the door!

Finally, reason # 8. It's basically the concept of the bridge. View receivables finance as your temporary bridge to a more traditional financing. A properly constructed facility should have little or no contractual obligations, allowing you to move on to another method of financing that might come with a lower cost.

There are numerous other reasons to consider A/R finance as a business financing strategy for Canadian business owners and financial managers... We have touched on some of the key ones, but further investigation by you will no doubt lead to other potential benefits.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in implementing a facility 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 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_finance_accounts_receivable_service.html

Canada Government Small Business Loans . Let The SBL Loan Give You An ‘A’ In Canadian Business Financing

Getting It Right With SBL Loans in Canada


Information on Canada government small loans. Why the SBL loan program get A marks from Canadian business owners.


Canada government small business loans - can they give you a sense that you have just achieved an ' A ' grade in Canadian business financing? We think so, and here is why the SBL loan makes solid sense for your firm, whether you are a start up, or if you fall under the 5 Million dollar sales level criteria which are one of the parameters of the program.

Whether you're the ' start up ' or simply looking for capital to expand your business the SBL loan probably makes sense, at least from a viewpoint of checking it out .

In many ways the Canada government SBL loan is the perfect vehicle for helping start up and small businesses achieve finance success. Why is that? Simply because traditional Canadian chartered banking is unable to facilitate the needs of much of those two business categories without the backing of the government on the loan.

Industry Canada, via the CSBFL program guarantees to those the banks that participate in the program 90% of your loan. Typically the type of firm that is looking for financing cannot meet the underwriting guidelines of a normal financial institution.

We have always been somewhat mesmerized by the Canadian business owner and entrepreneurs fixation on rate. Even before the loan is submitted the proverbial 'what’s the rate ' issue always seems to come up. In the case of Canada government small business loans the good news actually is that the rate and repayment terms are... quite frankly ... great.

Those rates include a 3% over prime core rate on your transaction, and with a selection of a variable rate you can pre pay the loan, at any time, without penalty. If the truth were to be told many clients talk about pre payment but are rarely in a position to do so... but we can dream can’t we.

Is there any aspect of the program that isn't and ' A' grade. We've got our own opinions on that - what we will say is that while the program itself has minimum guidelines each of the participating institutions within the program in fact have a few of their own policies and guidelines . That's why it is critical to align yourself with an experienced person or firm that understands how various institutions in fact inflict their own rules on the program.

Those rules and guidelines, which vary often include some key ratios that have to be met, or perhaps and additional contribution requirement over and above the 10% equity component you are required to put in on the transaction.

Simply speaking then, if we consider business financing a game, (it’s actually serious stuff) then you as a borrower or entrepreneur need to know how that game is played!

Your own kind of personal ' hell ' or frustration often begins when you don't follow the simple steps to SBL loan success. Those steps include a business plan, cash flow projections that are reasonable, and some very basic supporting documents that you would think would be attached to any business finance application.

So, can you expect to get an ' A ' in SBL small business loans in Canada. You certainly should if you investigate the requirements and focus on satisfying them in a complete and timely manner. Speak to a trusted, credible and experienced Canadian business financing advisor who can help you fast track through the valuable program for entrepreneurs of new and existing businesses in Canada.





Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

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

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

Understand Your Asset Finance Options. Leasing Versus Buying And Capital vs. Operating . It’s Your Call!

Making The Asset Financing Decision An Easy One

Information on asset finance and the leasing versus buying questions faced by business owners in the search for financing of capital assets via equipment finance .


Leasing versus buying. It's one of the classic questions faced by business owners and financial managers when they are looking for asset financing strategies that make sense in capital acquisition of business assets.

Let's examine how you as a business owner or finance manager can make the right decisions when you are at the proverbial fork in the road, the classic ‘ lease vs. buy ' scenario.

Part of the reason we're intrigued by this subject is simply the fact that there is so much misinformation around there, in some cases it's just an issue of not knowing what questions to ask.

Your firms ability to invest in new equipment whether its plant or office assets, or even telecom and computing needs typically brings you to the decision point to lease versus buy. You know that with these new assets your firm can most often become more productive and profitable.

The reality is, we think, is that it's as important a decision on buying and financing those assets as it probably was as to which asset to purchase, from which vendor, and at what price.

Your ability to match the right amount of financing capital with the use and term of the asset should be key to your decision.

The term lease itself, as simple as it might seem, is actually part of the confusion around the leasing versus buying decision. Many business owners think that there is always an ultimate obligation to return the asset at the end of the lease term - similar to the consumer leasing an auto. That is categorically not the case.

In reality you have the basic choice of entering into two types of leases in the Canadian business leasing industry - a capital lease or an operating lease. The capital lease is a basic lease to own scenario, no obligations there. Other than to make your payments! The operating lease gives you the right to return the asset if you choose, but it is not an obligation, it’s actually one of three choices you have under the operating ' fair market value ' lease. You can return, extend, or buy the asset.

The beauty of the operating lease is that it gives you all sorts of flexibility, has a lower monthly payment, and puts you in charge of the final asset several years down the road at the end of the lease term. This type of lease is perfectly suited for telecom and computing assets.

Many business owners and finance manager are often confused about their dealings with lease companies. We can commiserate with that , because its a question of which firm to deal with, what are their credit policies, which assets do they prefer or not prefer to finance, and are they easy to do business with when it comes to documentation and ongoing correspondence and relations during the term of the lease .

It's at this time when it might be best to focus on working with an expert who already has the knowledge and relations within the industry to best serve representing your needs.

We continually encourage clients to view a lease financing and asset finance company in the context of developing a long term relationship. The right type of firm will actually help you put together one Master lease and set up a lease line of credit, allowing you to quickly and efficiently add on assets at any time with minimum work. Bottom line, it’s not complex.

The key benefits of leasing, versus buying always stay the same. There are tax advantages, preservation of capital, and minimum down payments and certainly usually no outside collateral required. The asset being financed is the collateral!

Speak to a trusted, credible and experienced Canadian business financing advisor on the asset finance capital strategy that works best for your firm - and trust us, its not as complicated as you think!





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.webpage66.com/asset_finance_leasing_versus_buying_capital.html

Your Crash Course In Commercial Funding For Canadian Franchise Financing Loan Options

Canadian Franchise FInance



Franchise financing loan options are never as obvious as they might seem. So how about a crash course in funding your new business? We like the term ' crash course ' as it denotes ' research undertaken in an emergency '. Many entrepreneurs who are looking for the financing for their chosen franchise want to know they can count on several different avenues of assistance to complete a purchase.


Two key elements of our crash course today are the concepts of both being prepared, as well as ensuring that you can deliver on a reasonable equity component in your business.

Being prepared for franchise financing success in Canada revolves around ensuring you have a focused crisp ' package ' - key elements of that package are a succinct business plan, and a cash flow projection that reflects repayment of the loan. We meet with many clients who in some cases don’t fully understand that they need to have all their financing sewn up and properly planned for.

Franchise finance is not a staged event in Canada ; you need to ensure you a have a proper combination of equity and , as well as ensuring the early stages of the business operations reflect the proper amount of working capital to survive and grow .

The personal equity you are required to put into a franchise varies, and it varies for several reasons. The factors that affect your ' down payment ' component include the amount that might in fact be demanded by your franchisor, or on the other hand the lender. Those two requirements are not necessarily the same number all the time, so the correct combination of debt and equity that satisfies your franchisor, lender, and your own personal situation can be a tricky slope if not addressed properly, up front.


A great question we get all the time is whether it's easier for a Canadian entrepreneur to achieve franchise funding success by virtue of the franchisee model as opposed to purchasing any non - franchise business.

That's a tough one to weigh in on, but in general we think the franchise business model has more financing success probability, if only for the reason that you're purchasing a proven business model, not trying to invent one! We're told that industry stats show that approximately 5% of franchisees fail, while we suspect that amount is higher in non franchise transactions for entrepreneurs commencing the proverbial ' start up '.

One of the best options for financing your new business as a franchisee is the CSBF program. While not developed specifically for franchising over time it has evolved into the vehicle of choice for Canadian business financing success.

Why is the above noted program so successful then? The simply answer is that terms are great, they include competitive interest rates, a low personal covenant ( guarantee ) , repayment without penalty , and the ability to finance leasehold improvements which are generally very difficult to finance otherwise .

We're often asked it the franchisor will assist in your financing. Your crash course answer on that one = ' NO'. While the franchisor can assist and guide you in many ways don't count on them to provide franchise funding for your business. The simple reason - they sell franchises, they don't finance them.

Are there non- bank lenders who specialize in franchise financing loan options. In Canada they exist, but they are very small in number. Often other forms of Canadian business financing can properly compliment your required financing solution. They include equipment financing, or merchant cash advance programs. It's important to pick the right partner in this regard.

Canadian banks generally don’t lend outright on franchise financing without significant personal collateral and established banking relationships back stopped by strong personal credit ratings. Where they do participate directly it is with larger chains that are viewed as industry leaders. An example - think hockey/donuts!!

Although a crash course isn't the worst thing you can do in planning your franchise success a better alternative is to seek solid mentorship and assistance from people or firms that have solid experience in helping you make a success of your franchise.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your franchise funding 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/franchise_financing_loan_options_funding.html