Byte Sized Tips On Financing Technology For Your Canadian Computer ‘ IT ‘ Leasing Needs !

Thinking of Jumping ? .. into The Present For Your Tech Finance Requirements ? !

Information on financing technology for the Canadian business owner / manger . Canadian computer , IT , and telecom leasing works!


Financing technology. Is it as complicated or even risky as it might seem when it comes to your Canadian computer, IT, and leasing needs for survival and growth. Perhaps we have been doing it too long, but we don't think so - lets cover off some key basics.

We've often spoken about a killer concept, the idea of what is your ' obstacle to innovation '. Unfortunately many times it's price and cost, and financing those tech needs provides a solution to the elimination of the barrier. If you know how, and why, and... when!

In a recent Canadian Federation of Business (CFIB) poll over 63% of all small and medium sized business owners indicated that both price and costs were what limited their access to the technology and computer IT needs they had. Unless we're missing something that’s a majority.

Naturally most business owners and financial managers also referenced that they needed to be able to achieve a solid return on those investments. Information technology (‘IT) allows you to do that, and even gives you certain measures of flexibility you didn’t think you had.

That flexibility, along with the benefits of using new tech solutions allows you stay competitive, as well as save you time and money, two precious business resources.

Financing your IT needs allows you to do the basics, ie run your office, manage your financials... in effect, and run your business.

When choosing new tech assets focus on over what time period you will receive a payback. At that point it’s when lease financing emerges as solid acquisition tool because it allows you to spend cash as you are in fact receiving those benefits over the term of the useful life of the asset.

Software, and software licensing is a huge part of lease financing in Canada. We are often surprised when many business owners don't even know that application software can be financed - It surely can! Although software is viewed as a soft cost, i.e. not a hard asset it still has a significant value to you the use, including of course the right to use the software under license from its owner .

The documentation around financing technology is critical. Long term relationships are more well served under a Master Lease concept - simply speaking you sign one lease with terms and conditions you are comfortable with and then add on as you replace or delete assets .

Capital vs. operating lease choices are critical in Canadian computer IT leasing. It’s all about owning and using respectively. Operating leases can provide fabulous flexibility when it comes to using for a shorter period, upgrading, buying out early, etc

Maintain a competitive edge by considering financing technology needs. The larger corporations, even banks do it all day, every day. So should your firm. Speak to a trusted, credible and experienced Canadian business financing advisor on how to achieve the right balance of cash outflows and return on investment in computers and IT.





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_technology_canadian_computer_it_leasing.html

No ‘ SRED ‘ Of Doubt ! SR And ED Tax Credits Finance Via A Bridge Loan Is Still Here !

SR&ED Finance – Alive And Well


Information on sred bridge loan finance in Canada . Despite recent changes to the program your s red ( sr & ed ) tax credits are still eligible for financing .



SR & ED Tax credits. Did you or your firm have any doubt about the SRED program in Canada? I think we can safely say thousands did, and the good news is that the SRED Program is still intact... yes some changes, but still alive and well .

And even better news? Your SR ED claim is still 100% financeable with the same criteria that have always been in place.

Let’s step back a bit. Naturally the thousands of business owners in Canada who receive a total of Billions, yes that Billions with our capital ' B ' were concerned about what many felt was the best research tax credit scheme ever, the Scientific Research and Experimental Development ( hence ' SR & ED ' ) program .

Criticism and hope abounded from every direction. The government wanted to ensure that funds spent were getting Canada an appropriate return on investment - which seems like a reasonable request for us taxpayer type folks. At the same time thousands of firms used the refundable tax credit as valuable cash flow and working capital to both survive, grow or start their business, and to be able to invest even further in next years r&d.

Many felt the program was too complicated. We're not lawyers, accountants, or government mandarins, so there’s certain issues we won’t weigh in on, and that’s one of them!

The reality is though that close to 4 Billion dollars was being doled out every year to almost 25 thousand firms in Canada, which was a huge portion of the government R&D subsidy. And it was all about return on investment as we said;

Who in fact is benefiting?
How are they benefiting? Etc!

A major report that was widely anticipated concluded that a reduction of the program was appropriate and needed, and that the better choice was for strategic financing initiatives that would bring a better ROI.

Anyway, its over, if in fact the federal budget that was table will be ratified by the government. So yes, there will be changes in how your expenses are computed, and in some cases they will be reduced. Capital expenditures, which were often a large part of the calculation seems to have been eliminated... again futher reducing your total refund.

Certainly the onus is on the industry's private SRED Consultants to prepare higher quality claims and in some cases address their fee structures from a viewpoint of optics.

Anyway, that’s the news from the top! But down here at the bottom, where we toil in the real world sred (sr & Ed) tax credits are still financeable via a bridge loan for the finance of the credit.

The criteria are still the same. Your SR ED claim is generally financed at 70% loan to value... the transaction is structured as a bridge loan with no monthly amortized payments. You receive the balance of your claim, i.e. the other 30% when the claim is audited/approved, less financing costs.

Basic back up info is still required, i.e. a copy of your claim, confirmation of your firms arrears or non arrears to CRA, and your financials. It's as easy as that.

Did you have that ‘ SRED OF DOUBT ‘ ? ! The dust has settled, and if you want to finance your claims via the SR & ED bridge loan speak to a trusted, credible and experienced Canadian busines 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/sred_sr_ed_tax_credits_bridge_loan_finance.html

Creative Ways for Franchise Finance In Canada. From IT Franchises To Restaurant Franchising Here’s How !

Avoid The ‘ Wait & Hope ’ Of Franchising Finance In Canada


Information on franchising in Canada . From IT franchises to a restaurant you need a clear franchise finance success plan




Franchising Canada. Whether it’s an ' IT ' franchise in the world of technology, or a restaurant in the quick service / full service/ casual service industry everyone it seems wants to get on board. If they know they have the ability to finance the business...so let’s examine some creative ways in which to complete the financing of the entrepreneurial dream.

It's no secret to the potential franchisee that it's all about cash - a combination of your own and borrowed funds. What are some of the methods that clients use to creatively, yet sensibly finance the franchise dream in Canada.

Every business in Canada, new or existing, has two components to the capital structure. Debt... and equity. Equity is of course your portion; debt is of course that contributed by your lender or lenders. And remember, you have the upside potential in equity... your lender has only the interest income, and the hope and belief that they will be paid in full.

That's one of the reasons that many franchisee ' newbie’s' in fact get overly enamored with the financial potential of their business when pitching a franchise finance scenario. We think they would do better often to tone it down a bit and focus more on the lenders ability to feel comfortable that cash flow will cover the loan or loan payments.

In talking to clients over a long period of time we've been intrigued by the manner in which customers come up with their portion of the funds, the equity. Sometimes it's savings, other times they are leaving corporate life and utilizing their severance from the previous employer.

In other cases there is ' friends and family ' - we see that a lot. In order to be truly creative in using funds from friends and family (it hasn’t escaped us that they are in fact your ' angel investors;) you need to be sure these funds arent documented as formal debt - otherwise your banker or lender will have to show this on your personal balance sheet as debt, which will affect some of your borrowing ratios.
Supplementary to this strategy is getting a minority operating or silent partner in the business. Giving up a small amount of equity, say 5-10% might induce a family member or third party to help you out.

Typically the collapsing of registered savings plans is viewed by most as not, we repeat, not the best way to finance a franchise. Two reasons here actually, one is the huge tax bite involved in such a move; the other is simply that you have put your savings at risk, which clearly is not optimal.

Other creative ways to compliment franchise financing in Canada are to consider supplementary forms of financing such as equipment lessors for certain assets, or merchant receivable firms for ongoing cash flow. They are complimentary to your overall finance strategy.

Is there one way to really move along quickly in franchise finance in Canada? How about a co- signer, and boy do we have one for you. It's the government of Canada, via Industry Canada’s BIL program, with the government in effect guaranteeing a huge portion of your loan in the franchising Canada environment. Don't overlook that one!

So, a service franchise, such as in the IT (information technology) industry, or a restaurant... it’s your call when it comes to selecting and finalizing the franchise dream. Just make sure you have considered all options, traditional and alternative when it comes to ' creative ‘.

Speak to a trusted, credible and experienced Canadian business financing advisor for franchise finance advice that gets you to the goal line of 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/franchising_canada_it_restaurant_franchise_finance.html

Feeling Mathematically Eliminated From Canadian Business Financing . The ABL Asset Based Business Line Of Credit Facility Will Change That !

A Proven Strategy For Business Capital Liquidity


Information on the asset based business line of credit facility in Canada. ABL business financing increases working capital and Liquidity



How In Fact Can an ABL Asset Based line of credit facility have you feeling UN - mathematically eliminated in Canadian Business financing? Let's explain.

The other day we heard on the radio that a local hockey team was in fact ' mathematically eliminated ' from the playoffs. What is meant of course was that no matter how well they did for the balance of the season they in fact couldn't make their final numbers and success better.

In our opinion that’s how many Canadian business owners and financial managers feel about their ability to access the maximum amount of business line of credit they need - simply speaking they're constantly being told that the numbers don't add up and they are coming short with their working capital and cash flow needs.

Does that have to be the case? We don't think so and that’s why we propose an asset based business line of credit facility, termed an ' ABL ' to give your company that feeling of not being eliminated!

Let's recap what the ABL is. It's really a loan or monetization in the form of a business line of credit. It focuses on one thing and one thing only, your assets! Typically its the current assets on your balance sheet, i.e. receivables and inventory, but it can very easily make fixed assets and real estate a part of that same business credit facility.

The amount you can draw on for daily cash flow operating needs becomes a function of your growth in assets. We think you can see what is happening here - as your sales grow your cash flow draw down ability grows, in lock step! You in effect, using our theme today, can't be eliminated!

Once your ABL facility is in place you're in a position to constantly draw down on those agreed upon percentages. Typically the ABL allows you to draw 90% of A/R and anywhere from 30-70% of inventory. The astute business owner or finance manager can quickly see that the amount of liquidity that they immediately can access is significantly larger than they are receiving anywhere else, including their chartered bank.

As your company grows every owner/manager, whether you are in a start up or established firm realizes you have to have a handle of access to cash flow... Cash flow isn’t ' accrual accounting’; it’s the result of your asset conversion.

The Asset based line of credit facility allows you to avoid mistakes and it outperforms pretty well every other type of business line of credit. Speak to a trusted, credible and experienced Canadian business financing advisor on how you can keep in pace with your operating and growth 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/abl_asset_based_business_line_of_credit_facility.html

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