Best Practices On Getting Canada Government Loans. Let The SBL Loan For Small Business Work For You

Get On Board with The Gov’t SBL Loan !


Information on Canada government loans. What best practices can Canadian business owners use to successfully receive the SBL loan for small business.



Canada government loans for small business. Are there some ' best practices ' to follow to ensure they work for you, and that of course you get approved? We think there are.

If you have worked in a larger corporation at any time (trust us ... we have) they always talk about ' best practices. They are defined as practices or methods that will ‘consistently show results superior to those by other means’. We’re not the biggest fans of buzzwords and ' corporate speak ' but we will say that it does seem quite applicable to our subject, the SBL loan in Canada.

When Canadian business owners, from start up to SME consider applying for Canada government loans it’s all about the rules. And when it comes to those rules that's where it gets a little tricky, because if the truth were to be told ( and we're telling it ) there are two sets of rules . One is the rules set out by the Small business loan program (The CSBF) and the other rules seem to be set out by those that run the program on a daily basis, ie the Canadian chartered banks and other miscellaneous institutions.

That’s where solid ' best practices ‘tell you that you don't want to be really ' winging it’ when it comes to applying and getting approved.

In reality the short list is really just that, quite short when it comes down to program qualifications. You need a crisp business plan and cash flow projection. Your plan should cover some real basics, and we assure clients it doesn’t have to read like a book. That's not the intent.

You just want to be able to convey a concise description of who you are, what your business is, who you compete against, and how you will operate and sell. It's as simple as that. If you can talk to those key points we feel you should be able to convey them in writing also, don’t you think?

That business plan and cash flow is the key document in successfully obtaining Canada government loans for small business. Those loans range up to $ 350,000.00 in value, have great rates considering that you are a start up or SME enterprise, and additional enhancements to the program include limited personal guarantees (clients love that one) as well as the ability to prepay without penalty.

Supporting documents are key to your plan, and they include what we always have felt were the basics - tax returns showing you have no arrears (after all it’s a government loan!), copies of your incorporation data, a premises lease. and supporting invoices or quotes you want financed .

All of the above data we shared are in fact our recommended ' best practices ' when it comes to the small business loan program in Canada. You increase your chances via an organized and positive approach, and basic attention to detail.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you on the approval your firm or start up deserves.




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_loans_loan_small_business_sbl.html

Don’t Gamble On Franchise Funding Success . Finance Your Franchising Opportunity Properly!

Canadian franchise financing success , without the risk!


Information on franchise funding in Canada . Your ability finance your franchising opportunity properly is key to your success as a franchisee


Franchise funding in Canada. At times does it seem like you have to take a real gamble on the franchising opportunity just to complete a transaction properly? And then finance it? Is there a better way? We think there is, and here's why, and how!

We're the first to admit making that franchise purchase decision is a huge leap of faith for many existing and would be entrepreneurs. Not only is it appropriate and important to align yourself with the proper franchisor, the challenge then becomes assembling what we could call a small ' team ' of advisors and mentors. So who is on that team - typically it’s a key contact at your franchisor, your accountant or franchise lawyer, and a financing advisor of some type - it might be your banker, it might not be.

So if you have a team in place is there still a gamble and risk here? To some degree yes, as the question still hangs over your opportunity, namely ‘How does franchise financing work and can I convince a lender of some sorts to approve my transaction?”

If there is any good news in the cloud of doubt we seem to be casting (we’re not trying to be negative!) here it’s simply that a franchising opportunity is viewed as a positive business model in today’s Canadian lending landscape.

Getting the right terms and conditions and utilizing the best finance program for franchises is key. So what then makes franchise funding and getting your acquisition in place a ' gamble ' sometimes? One thing is the quality of your team - the advice and direction you get from your franchisor, your finance partner, your specialized franchising lawyer etc are worth a million dollars... or close to it!

When it comes to financing you absolutely must be working with a lender of financing advisor who is both positive, and yes, experienced! in franchise finance. The reality is that there are always naysayers in any crowd, so if you get the old line ' we like you and your idea but we just think it's too risky ' you are absolutely going to have to replace some of our aforementioned team mates!

Who are the preferred lenders in franchise funding in Canada. You might be surprised to know it’s the federal government! Under the auspices of the CSBF program thousands of franchises are financed in Canada every year. Is it an automatic approval? Hardly - but you can eliminate a lot of the gamble we have been talking about by simply focusing on a crisp presentation.

That includes a solid business plan , cash flow, ( Cash repays loans by the way !) and the ability to position yourself as having an appropriate level of business or industry experience within the sector you are entering into with your franchisor .

While we identified your franchisor as part of your team we would quickly hasten to say that you’re really gambling on success if you are relying on the franchisor to help you with financing in a direct manner. 99.999% of the time they don't and won't.

That is why the CSBF program we mentioned is so popular. It’s a largely guaranteed government loan that still gives you tremendous financing flexibility. Other sources of financing include specialized franchise lenders and commercial finance and leasing firms who can assist in closing your transaction successfully.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in removing the ' gambling ' aspect of successful franchise funding 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/franchise_funding_finance_franchise_opportunity.html

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