Someone’s Got Your Back On Cash Flow Solutions ! Canadian Working Capital Management

Cash flow solutions and working capital management in Canada. It's nice to know that you do in fact have solutions, help and assistance in Canada... in effect ' someones got your back ' .. helping you out.

A lot is written about why business fail, or stop growing ; we often hear that ' lack of good or experienced management' is the major cause, but trust us poor , or poorly timed working capital management and financial solutions are a true close second!

The good news, as we said though, is that someone in fact does ' have your back ' when it comes to those cash flow solutions in Canadian business financing. - In effect you do have a ' roadmap ' to business finance that you may not have thought you had.

These days though the reality is that you have traditional finance methods, and ' alternative ‘. Alternative is not as esoteric as you might think, in fact a good way we explain that to clients is that more often than not you're dealing with commercial non bank finance companies that are not ' regulated ' in that manner that are Canadian chartered banks, insurance companies, etc. And they have solutions to your challenges.

For small and medium sized businesses you simply need a story, and proper financial statements which often can be complimented with a good business plan or executive summary.

Every company in Canada is somewhere along what we could call the ' maturity spectrum '. Firms that are a bit larger or more established have access to some fairly heavy duty solutions which might include angel investors, some private equity, junior capital pools, and even modest forms of venture capital.

The reality is though is that for the majority of firms its the management and financing of their assets and growth that is the crux of cash flow solutions, and without this management of working capital during the sales and growth of sales period that make allows the Canadian business owner to make the transition from dream to reality when it comes to business success.

We often think that clients can be forgiven for thinking there is not a lot of financing options available in Canada for them - it certainly can feel that way on occasion. The reality though is that the lending of business finance funds is in fact the backbone of business in Canada. Borrowing and investing in fact make Canadian business.

We never forget the ultimate irony that your firm might have a better chance in slower economic times to get something done simply because in those boom times there’s too many deals and opportunities, and everyone is busy .

Financing a business comes down to 6 alternatives.

- You fund it yourself,
- You borrow funds,
- You sell assets,
- You finance internally through growth and management of assets,
- You are given funding, via grants, etc,
or you sell equity.

Our focus is really # 2; borrowing funds... actually monetizing assets. Those solutions as we said, are more plentiful than you think - receivable financing, equipment leasing, working capital term loans, asset based lines of credit that are non bank in nature, tax credit monetization, and securitization of sales.

Someone in fact does have your back in Canadian business cash flow solutions - that person just might be an experienced Canadian business financing advisor who has credibility and experience. Consider reviewing the above mentioned solutions in the context of both surviving and growing your business 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/cash_flow_solutions_working_capital_management.html

8 Can’t Fail Methods For Using An Asset finance Business Lease Company For Direct Financing

You Can’t Not Know About These 8 Asset Finance Methods



Information on methods for asset finance via a business lease company for Canadian direct financing needs .


Asset Finance... via a business lease company in Canada. Doesn’t it seem that we're all exceptionally greatfull for any good news these days in business of business finance? The good news is that direct financing of your company asset needs is back to being fairly plentiful these days.

And talk about asset types; i.e. what can be financed. It runs the gamut: heavy machinery, technology assets, and the new kid on the block: solar/energy etc., plant equipment, material handling, print and restaurant...and... Well you guessed it, and on it goes.

There are some solid, what we will call ' can't fail ' types of lease and asset finance available for Canadian owners and business managers. Let's recap 8, yes 8 of those methods. We would point out that the different names of these financing solutions are rarely at the top of the page - you kind of have to know what they are, and what to ask for, and that’s our job today I guess!

The most common method of asset finance is the full payout lease, aka ' lease to own. It's very much just a pure finance play, with your firms intention being to own the asset at the end of the lease term. Here it’s critical that it’s your intention to do that, and probably the major concern of most firms here on this method understands the financing rate, which can be easily calculated if your lessor won’t share that. The elements of a pure full payout lease are term, rate, asset value, and monthly payment and end value - if you know 4 of them you can always calculate the other!

Some business owners might be interested in what’s known as a true lease - in this case your lessor will be ensuring that the rights and obligations of ownership of the asset are clearly with the lessor itself, not your firm. In Canada certain accounting rules under CICA have to be met in order for your transaction to be a ' true lease ‘. Remember that a lease is not, we repeat, not a loan.

The third cant fail method we are talking about is the true operating lease. As opposed to our number one method of ownership, the operating lease denotes ' usage ‘, not ownership, and your firm has to have the intention of returning the asset at the end of the lease term . Naturally you can purchase the asset at time also. As well, most lessors will allow you to upgrade and extend. Technology assets are perfect for lease finance.

Although the majority of assets in Canada that are done via a direct business lease company are hard assets its ' Service Leases ' that make up the portion of some firms business. Services can be financed if they are to a credit worthy lessee. Service type leases tend to be shorter in term and are sometimes a component of another asset within the lease, or on their own.

Our next ' can't fail ‘is what we will call the single one time lease. It’s an all or nothing transaction, a single asset that gets ordered by your firm, it arrives, and you sign off acceptance. In some cases mere delivery of the asset can constitute your firms acceptance and commencement of the lease.

Our 6th cant fail method is the sale leaseback. It's been around forever... was out of vogue for the past few years, and back in vogue these days... when it makes sense for you and the lessor . It’s a case of your firm selling an unencumbered asset to maximize cash flow and working capital from an asset that’s on your balance sheet.

The ' Master Lease ' concept is our 7th ' can't fail ' strategy. It’s a great way to cement a long term relationship with a lessor; your firm agrees on one legal lease document Vis a Vis terms and conditions, and then you simply add on assets over the term of the relationship with your lessor. Saves time and money on legals, documentation, etc.

Our last ‘can’t fail' method? It's the concept of a sublease wherein you and the lessor agree you can release the equipment to one of your own clients. Your firm either stays on the hook, or transfers the rights and obligations you have entered into to your client.

So what’s our point today? Simply that you have a lot of flexibility in asset finance in Canada when you deal with the proper business lease company. Maximize that flexibility and enhance your asset financing knowledge by speaking to a trusted, credible and experienced Canadian business financing advisor 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/asset_finance_business_lease_company_direct.html

Excuse Us For Pumping Types Of Accounts Receivable Funding In Canada ! Intrigued By Factoring Finance In Canada?

High Speed A/R Finance 101!


Are some types of accounts receivable funding and factoring financing better than others? We're often accused of ' pumping’, aka ' promoting' this type of Canadian business financing for firms of all types in Canada. Why is that?

Is receivable financing, on its own or blended in with another financing a ' holy grail ' of business finance? Not really, of course, but it’s an effective solution that's often very misunderstood when it comes to the mechanics of it and the cost. Let's explain.

When times get tough or challenging for small and medium sized firms in Canada business owners and their financial managers can be forgiven for doing everything up to an including panicking . A variety of situations can exist, sales slow down, or the opposite... major opportunities arise that cannot be taken advantage of. The recession that we supposedly are out of now certainly leveled the playing firm for a lot of firms, who saw their competitors in some cases even, disappear.

So, when you consider accounts receivable funding and financing as one of your alternatives what are in fact some of the considerations? In the case of A/R finance it’s a simple one, freeing up assets for working capital and cash flow.

It actually is very possible also for you to consider acquiring a competitor or synergistic opportunity via factoring, as the target firms receivables, and yours could in fact finance the acquisition. Naturally other assets and factors come into play, but it’s certainly possible.

Accounts receivable funding should be viewed as a source of funding that you have already been approved for - especially if you're having some of those challenges we have talked about.

Again, at the risk of ' pumping ‘ / promoting factoring as a business line of credit we maintain its one of the most flexible around . First of all, once your facility is set up you don't have to use it all the time, it’s up to you as to when you draw down and pay for those funds. Think of it as using it like a business credit card, using it when you need funds. You're simply making a borrowing decision that minimizes finance expense.

The amount of funding available is directly related to your sales and receivables. Those amounts of course change everyday as you sell and collect receivables.

As we said, your A/R finance option can be stand alone, or you can combine it with inventory and equipment assets that are all combined into one borrowing facility.

Our recommended solution is a confidential invoice finance solution, one that allows you to go against the grain of other offerings, putting you in a position to bill and collect your own A/R with notice to any clients, suppliers, etc. It's a solid solution when you don't have access to more traditional financing.

When it comes to costs many business owners will find that when they understand the true cost, i.e. the cost of carrying a/r already, as well as opportunity cost... well it simply might make tremendous sense to consider this unrestrictive financing when compared to other... or no.. Solutions.

Speak to a trusted, credible and experienced Canadian business financing advisor for solid advice on this Canadian finance solution.





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/types_of_accounts_receivable_funding_factoring.html

Exploring Government SBL Loans In Canada . The Can and Can’t Of The Business Improvement Loan

Canadian government SBL Loans – The Limitations and Great Expectations


Information on government sbl loans in Canada. The business improvement loan can and can’t do’s!





Government SBL Business Loans in Canada. You can... No you Can’t. What we mean of course is that the program is limited in some respects so lets clarify for Canadian borrowers what they can and in fact can't do with the BIL program - its the acronym for the federal Business Improvement Loan' program .

For a starter it’s available to all business organizations. When starting business entrepreneurs have to choose an organization structure; that includes proprietorship, partnership, and corporation and or Limited Liability Company. The good news is there is no discrimination when it comes to the SBL loan, in fact all types of business organizations, as noted above, are in fact eligible to receive financing under the program

Probably the one miscellaneous point we can make under types of business organization is that is comes as a surprise to many that you don't have to be incorporated to be eligible for the SBL loan. Naturally if you are in business, and projecting to make profits, and own assets and enter into contracts it sure makes sense to incorporate; but that's a discussion for another day.

Most Canadian business owners and financial managers in fact feel that any form of debt is ' expensive ‘. Naturally, similar to our personal finances, there is ' good debt ' and ' bad debt '. Mortgages = good... Credit Cards... well you know.

As you grow or start a business, build a new facility, bring out a new product etc you require different levels of management. Naturally borrowing for financing requires a new level of management for your firm - your lending partner has just joined the team!

That's why when business in Canada entertains the idea of government sbl loans it’s fairly easy to understand the implications and benefits

Where things can go awry in the BIL business improvement loan process is very simply... the application process. We can't count the hours some clients had already spent in both their time, as well as loss of credibility in what should be a straightforward process- identifying what funding you need and why you need it!

The good part about government business loans, aka the ' SBL LOAN ' is simply that there is no confusion about looking for a lender. That’s because the government, as a major guarantor of your loan, has appointed certain Canadian financial instructions as the facilitators of the loan.

So what can and can't the SBL do for you or your firm, start up, or otherwise, (as long as your revenues are under 5 Million dollars.

What you ' can' do is finance real estate, start up a business, buy equipment, or buy an existing business under an asset purchase scenario.

What you ' cant ' do is borrow for working capital or refinance existing debt.

It's as simple as that, so consider speaking to a trusted, credible and experienced Canadian business financing advisor on getting a fast track to government SBL loan 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/government_sbl_loans_canada_loan_improvement.html

Recognize These Business Finance Problems and Financing Challenges?

Examining Cash Flow And Finance Challenges in Canadian Business


Information on financing challenges faced by Canadian business owners and managers. Spotting and Solving business finance problems




Business finance problems. Got the ability to spot financing challenges when it comes to the immediate and longer term issues that face your firm in the Canadian business environment? We have always felt that some positive proactive techniques and information can go a long way to your health... and that’s better business health we're talking about by the way!

It's easy for an outsider to revert to the textbooks on this one, and larger corporations have access to all sorts of advisory advice. The business owners and managers of small and medium sized corporations in Canada have the tools; they just need to know how to use them. Technically speaking, (and we promise to try and not do a lot of that,) its just understanding your financial and operating leverage.

In reality by using basic and time tested tools you're in effect creating an early warning system around business finance problems and financing challenges you are facing now or down the road. And the goal is pretty clear, don't you think - it’s about ensuring you can fulfill your financing and contract obligations while at the same time growing and profiting.

A lot of finance problems revolve around your favorite entity, your customer. It's therefore prudent at all times to understand the financial health of your customer. This can be accomplished in a number of ways - if you don’t think major corporations ask for their clients financial statements... well you're simply wrong. The small and medium sized corporation can utilize various tools to monitor customer financial health; even monitoring payment habits over time is a great tool, allowing you to spot deterioration.

It goes without saying you have to be open to realizing what some of your current financing challenges are - Thats often tough for the business owner to admit because most entrepreneurs we meet are optimistic, sometimes excessively so, which is of course a double edged sword.

Can you balance sheet actually predict failure? A lot of history tells us it can... and there's some pretty basic stuff here. Things like knowing the real value of your assets, not the book values when it comes to negotiating with Tier 1 or Tier 2 lenders. While cash and receivables are the two most liquid parts of your balance sheet even those receivables might misrepresent a true value in your firm if they are uncollectible, or uncollectible in a timely fashion.

While it may seem unappealing to spent to much time analyzing your financial health just some very basic ratios ( we’ve always called them relationships ) in 4 areas - liquidity, leverage, activity, and profit will give you a great total view of your firms current or upcoming challenges .

In Canada your firm has access to traditional financing via Canada's chartered banks, but those financing challenges that seem ' unfixable' can be address by a broad number of business finance solutions from non bank lenders - they include asset based lines of credit , government business loans, monetization of receivables and inventory separately or combined, supply chain finance, and tax credit monetization.

Bottom line ... invest some time in some analysis and basic tracking tools, and consider speaking to a trusted, credible and experienced Canadian business financing advisor on solutions to business finance problems.






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_finance_problems_financing_challenges.html

Don’t Make These Mistakes In Financing Franchise Opportunities In Canada . A Franchising Loan Must Make Sense – Here’s Why.

Canadian franchise finance – the upside and downside issues!


Information on financing franchise opportunities IN Canada . What the franchisee needs to know about a franchising loan


Financing franchise opportunities in Canada. That brings to mind one of our favorite old expressions - ' tuition is very high in the school of experience'! That's why when we talk to clients about franchisee loan financing in Canada we're often cautioning against what can go wrong as much as what can go right . Makes good business sense, right?

There is no arguing of course that franchise finance in Canada is still booming, the general malaise in the economy notwithstanding. From our perspective we are even optimistic about the finance landscape out there when it comes to financing your franchise.

One thing we can say is that your options on financing your Canadian purchase of a new or resale franchise are hardly unlimited. In reality there are actually down to self financing, getting some sort of assistance from your franchisor ( doubtful in most cases ) and either utilizing the government CSBF program or the services of a specialty franchise finance firm . In some cases what we term as complimentary financing is available, that might come from an equipment and leasehold financier, or a true working capital loan from a regulated financial institution.

In many cases either some initial or ongoing financing for franchises is done via personal and corporate credit cards for your new busines. This clearly is a double edged sword, in that while it provides some capital for either assets or working capital needs but comes with the higher rates that we associate with credit card debt.

Additionally we always recommend that the franchisee make a strong effort to separate his business life from his or her personal life when it comes to finances. Almost everyone agrees that one of the prime drivers for incorporating your business is the reduction of personal liability - as all business is a risk. (Naturally some are more riskier than others as we have seen over the years!) On balance it would certainly be better to acquire a corporate card for your business as opposed to a personal card - just common sense, right?

Many new franchisee ' newbie’s' don’t often consider the concept of ROI when they enter into their franchise agreement. The reality is that whether its a franchise or any other business you can't afford not to wrestle down this concept, Its all about carefully analyzing how much you need to put it, what amount of sales and revenue you need to at a minimum break even, and finally, and certainly as important, what level of profit, including your salary of course will be a satisfactory return on your business.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in covering off the risk and reward of a franchise loan when you're assessing those Canadian franchise opportunities 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/financing_franchise_opportunities_canada_loan.html

Here’s One Method To Increase Liquidity . A Canadian ABL Asset Based Finance Co Solution

A ‘ NEW ‘ Canadian Business Financing Solution ?


Information on how Canadian firms can achieve greater business liquidity via an asset based finance co ABL facility . Asset based lending … works!



Business liquidity. We were watching a U.S. bank TV commercial the other day and they were talking about ' accelerating cash flow '. Many but not all Canadian business owners and managers are aware that the Canadian banking system is dramatically different from the U.S. one. Hundreds of U.S. banks focus very directly on commercial lending to the point that it's actually the largest part of their portfolios - that’s hardly the case in Canada of course where there is a major focus by banks on savings, mortgages, investments, securities work, etc.

So the asset based finance co (company) in the U...S is a very large part of the commercial landscape. That's not the case in Canada; however that is slowly changing as thousands of firms investigate ' ABL ' facilities as their new alternative to accessing business liquidity and capital.

Let's take a look at how and why the asset based lending facility is a cash flow accelerator. For a starter, what are the reasons a firm would want to consider what we term a ' non bank' facility in Canada. The reasons are diverse - they include acquiring a firm, recapitalizing a firm, or simply monetizing their current and fixed asset base to accelerate cash. A true ABL financing doesnt necessarily bring any debt to your balance sheet - it a simple ‘monetizer ' of assets.

So when your firm considers such a solution it’s simply a case of understanding and of course sharing your current financial position, and focusing on how the specific use of funds will enhance cash flow.

What are some of the reasons a firm fails to recognize the need for a better business line of credit? They can be diverse, but they include not understanding some of the external pressures facing their company , operating on a belief that the old ways in business finance will always work, or even having undertaken a project or strategy that failed, thereby severely impacting your working capital and cash flow,

In order to understand the benefits, as well as implement a solution via an asset based finance co partner you need some basics under your business belt. They include knowing your days outstanding for both your A/R and payables. If you company has an inventory component, which is certainly the case in many manufacturing and wholesale firms in Canada the amount you are carrying , its turnover, and the amount requiring financing is key .

Why then does ‘more ' business liquidity come from ABL solutions. That’s the easy part to explain to a client, because it simply involves combining the total amounts of receivables, inventory, fixed assets, and real estate into one basic ' pot of assets ' that is monetized into a business line of credit.

Don't be surprised if your new ABL facility doubles your current borrowing power! That’s because it margins receivables at 90%, inventory anywhere from 30-70%, and then throws in additional borrowing power via a constant drawdown and revolving of funds based on equipment and real estate if n fact the latter is applicable.

Speed... and acceleration; that’s what the TV commercial for U.S. business banking was talking about .. and it’s available in Canada via an asset based finance ABL solution .Now you know!

Speak to a trusted, credible and experienced Canadian business financing advisor on this great method of increasing financing 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/business_liquidity_asset_based_finance_co_abl.html