Damn You SBL Canadian Government Loans ! Secrets To Unlock Federal CSBF Loan Success

Solid Tips and Info On The Canada Small Business Loan –
P.S. – It’s Not That Small


Information on the SBL loan program in Canada . Can Canadian government federal loan guarantees help finance your business . Here’s how! CSBF loans work.



Damn you SBL Canadian government loans !That's one battle cry of Canadian business owners who we meet that are either desperately seeking knowledge in the area of the federal Small business loan or who feel frustrated around what they feel the process is to successfully secure such a loan.

A better cry they w would prefer would probably be ' Release the coffers ‘. They would of course prefer to be among the many thousands (approximately 8000) of businesses in Canada that annually are successful in complete the gov't small business loan.

So whets the difference between winning and losing when it comes to securing a government SBL loan? Several factors come into play... let’s discuss some of the important ones.

It's no secret of course why business owner seek this loan. it has strong rates, terms and structures that quite frankly even large corporate borrowers can secure. What do we mean by that? For one thing, the majority of private businesses in Canada have to ensure the owners are prepared t personally guarantee their loans and credit lines. That’s the same Canadian government loans, except, and it’s a big except, your guarantee is limited to 25% of the loan. Talk about a good thing!

Another point in the SBL scenario is that the majority of loans and leases in Canada cannot be prepaid without penalty. By utilizing federal government loans for your business you can prepay with penalty, if you're fortunate enough to be able to. While many Canadian business owners and financial managers would like to be in a position to do this, quite frankly if you are financing assets and leaseholds at good rates and terms why wouldn’t you want to use valuable cash flow elsewhere, such as growing your business .

Many Canadian businesses do not feel the banks are pro lending when it comes to smaller and medium sized businesses. By the way, the actual revenue cap for the federal SBL loan is 5 million dollars, so we do acknowledge that that eliminate many larger firms who certainly wish they could secure the SBL loan.

Whether or not you have confidence in the banking system when it comes to corporate lending is a whole different discussion , the reality is that that lack of confidence should go away when you're applying for a govt small business loan .

Critical to successfully securing the amount of financing you need under this great loan product is the ability to find and work with a banker who understands the program. This unfortunately is a problem businesses should have to deal with, but are faced with when it comes to the SBL program. In our opinion many bankers simply don’t understand or want to bother with the program. It's important to secure the services of a great SBL banker who recognizes you as a client the bank wants to have, and keep.

Some other great secrets around being 100% successful in SBL loans? Not as complicated as you think.

Understand the nature of the program and what it can and can’t do

Prepare a solid proposal that provides ALL of info required on an SBL
Application - there are 6 or 7 key basic criteria

Anticipate questions and any worst case scenario

You may wish to increase the chances of your SBL Canadian government loans process by doing something very simple - secure the services of an expert - Typically a trusted , credible and experienced Canadian business advisor who can fast track your transaction, and , by the way, one who probably knows the best banker in town anyway!








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/sbl_canadian_government_loans_federal_loan.html

Looking For Franchise Business Funding ? Stay In The Loop On What’s Important For Canadian Business Lenders When It Comes To Franchising Loans

What You Need To Know Franchise Loan Financing In Canada

Information on franchise business funding in Canada . What take aways you need for business lenders around your franchising loan .




‘In the loop’ ... it’s of course being informed and up to date on a subject. So when it comes to a decision such around franchise business funding and staying in the loop on issue surrounding franchising loans, lenders, and other related issues what could be more important ? !

The whole issue of purchasing a franchise and then sourcing franchising loans to complete that purchase is clearly a journey these days... we like to think about it as simply basic steps you can implement in an orderly fashion.

It should be no secret that the franchise you ultimately choose, whether it be in hospitability or service business has to match and complement your financial resources. Naturally related to those decisions are key areas such as suitability of the business when it comes to work experience, fields of interest, etc.

What many franchisees may not realize is that your actual experience in the business is certainly one key factor that a franchise lender considers with respect to a final approval of your transaction. This is probably most evident in the hospitality area, when it comes to a restaurant as an example.

While we personally believe a solid mix of business and marketing skills should make a strong case for a positive supplement to your franchise loan approval the hard reality is that in many cases no experience in an industry often raises a red flag with lenders when it comes to probability of financial success in the business. In any business management experience, rather mis - management is cited as a case for business failure, and this is equally so in franchising in Canada.

Your own investment in the business, i.e. your equity or down payment is of course a strong motivator for you to make the right decision. Although we see some franchisors providing what we could call at best ' guidance ' to your financing needs it should be clearly understood that you're on your own when it comes to franchise business funding in Canada . The one caveat is that in some cases franchisors have a program established with a financial institution of some type, but this is absolutely certainly no guarantee of final approval.

Doing the right due diligence around the financial aspects of your purchase is critical. Understanding revenue potential, profits after your salary that would define a reasonable return on investment, and the ability to finance the business on an ongoing basis are key to being ' in the loop. This can be accomplished through research, talking to current franchisees in the system, and getting some solid advice or mentoring from your accountant, lawyers, or business peers.

Franchising sales account for a huge part of the Canadian economy. Financing your franchise via a specialized loan program such as the Government SBL/BIL program allows you to limit your liability while at the same time having access to solid rates, terms and structures. It quite frankly the ' proper ' financing for your franchising business loan.

Speak to a trusted, credible and experienced Canadian business financing advisor on which type of financing best suits your needs... and , as we said, you'll be ' in the loop '!






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_business_funding_lenders_franchising.html

Does An ABL Loan Deserve A Full Chapter In ‘ The Book Of Awesome’? Asset Revolving Line Of Credit Facts For Canada !

Here’s What You Get With An Asset Based Line of Credit


Information on why the ABL asset loan and revolving line of credit in Canada is a perfect solution for interim and long term financing needs .


Is an ABL loan, i.e. an asset revolving line of credit really a candidate for a position in the business Book of ' Awesome '? We think so. Here's why.

While many forms of Canadian business financing have been around for, well... almost ever... an asset based line of credit is somewhat of the new kid on the block in the context of financing vehicles for business owners and financial managers in Canada.

A key emphasis in various forms of business financing is the concept of ' cash flow' when it comes to repayment of your loans and borrowing facilities. That’s where the ‘asset crowd ' differs; the asset based line of credit focuses on assets not necessarily cash flow.

So why are more and more Canadian firms, start up, small, and large in size using this method of business lines of credit? Simply because if your business has solid assets in receivables and inventory it immediately qualifies for ABL loan finance. While we do use the term ' loan ' often in the context of our description of this method of finance in reality its not a loan per se, its a monetization of the asset on the left hand side of your balance sheet .

And by the way, although we specifically mentioned A/R and inventory it can include fixed assets and real estate, even tax credits as part of the mix. But truth is told receivables and inventory make up the majority of the asset based line of credit.

So who in fact uses, and considers this type of finance. It certainly runs the gamut, from wholesalers and distributors, major retailers (here the focus is on inventory), manufacturers, etc. If there is a bottom line, whether you are a service or product oriented company ....it’s simply that if you have A/R and or inventory you qualify.

A quick note that some of the largest and most recognized companies in Canada (and the world) utilize ABL.

Several types of Canadian business financing in Canada are considered somewhat ' alternative ' when they are bench'marked against traditional business lines of credit. However our perception is that the ABL loan becomes a bit more popular everyday - it's absolutely positively not the ' last resort ' scenario that some seem to make out.

Pricing on the asset revolving line of credit differs. While it absolutely can be competitive with bank pricing for firms of that quality quite often it comes at a higher cost , but, and its a but but ( so to speak!) it provides you with significantly more liquidity. That's because margining of a/r tends to be in the 90% range, even higher on occasion, and inventory financing within you facility can range anywhere from 30- 70%... which in some cases is 30-70% more than you are getting today !

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in determining if ABL is right for you. You just might now understand why an ABL loan seems to definitely qualify for its chapter in the Book of Awesome.







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_loan_asset_revolving_line_of_credit.html

Discovered ! The Cheapest Cash Flow Financing And Business Liquidity Solutions In Canada !

Working Capital Financing Cost – Not What You Thought


Information on the cost of cash flow financing in Canada and what business liquidity solutions are available as Canadian business financing alternatives .


So, are you ready? What in fact is he lowest cost (we kind of hate to use the word ' cheapest ‘) when it comes to working capital needs.

The answer? The best source of financing is actually ‘Reducing the need to finance operating needs'!

Changes that you can make in your business today can actually significantly reduce the need for sourcing traditional and alternative methods of finance.

Is your firm in fact limping along in today’s somewhat turbulent times - there doesnt seem to be a day when bad news externally seems to affect our businesses. There has probably never been more of a focus on cash and the ability to get capital for and into your business. Naturally one option is to stop spending or growing, but that’s the least desired solution by the average Canadian business owner and financial manager.

What's more difficult for you? In many cases it's simply managing it, and that gets more complex every day. When you think of it, if you had the ability to borrow or finance less and you were able to manage your current assets more effectively you have simply made yourself more competitive out there in your industry.

So the essence of our theme today is simply managing current assets - cash, receivables, inventory, prepaid more effectively.

Talking to our clients makes the situation even clearer. Why ? Because they profitability with liquidity when it comes to assets and asset management. You must be able to convert current assets into cash.

So how do you accelerate those cash flows? You do that by monetizing current assets when you need to, and focusing on faster collections. Monetizing those inventories and receivables can be done via traditional bank lines of credit, or the alternative: A/R and inventory credit lines from non-banks in Canada.

The best way to think of this is to focus on the fact that as your current asset accounts grow cash generally goes down. Increasing your payables is a nice offset to that, but it’s a tender balancing act when it comes to suppliers, employees and government remittances being paid on time!

Since your profits are embedded in your accounts receivable collecting them more quickly simply enhances your self cash flow financing.

Business liquidity solutions in Canada come in many forms. They include bank operating lines, asset based credit facilities, and working capital term loans. More costly solutions , but equally or even more effective sometimes are receivable financing strategies, inventory and supply chain finance, or even monetizing longer term receivables such as a SR&ED credit that may be due your firm .

If you want to explore the best cash flow financing and liquidity solutions speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with advice on internal and external strategies to enhance cash.








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_financing_business_liquidity_solutions.html

The secret of cash flow financing and business liquidity solutoins . What if you had both the knowledge and access to low cost Canadian business financing solutions in Canada .

Canadian Business Financing: Are You Making Best Use Of Equipment Leasing And Canadian Asset Finance ?

Canadian Business Financing: Are You Making Best Use Of Equipment Leasing And Canadian Asset Finance ?

Are You Making Best Use Of Equipment Leasing And Canadian Asset Finance ?

Maximize Canadian Business Financing With Lease and Asset Financing Options


Information on equipment leasing and finance in Canada . Why asset financing is logical solution to fixed asset acquisition




It's a simple question really... is your firm making the best use, and taking advantage of the use of equipment leasing and finance when it comes to asset acquisition?

Just the use of your owner and management time in sourcing solid lease finance solutions can sometimes sap your business strength! When you think of it there are probably about 5 key steps in equipment leasing and finance strategies you employ.

First of all you must decide on which solution works best for your firm, in the context of what’s available in the Canadian marketplace. Here there are a plethora of firms, many specializing in either specific assets or deal size.

Step # 2 is simply getting a ' package ' of relevant info together - that might include equipment quotes or invoices, as well as the financial information you might be required to provide that demonstrates that the deal ' cash flows' in the eyes of your lessor .

A challenge faced by most business owners is that asset finance lease approval is heavily focused on historical and present cash flow. If you don't have those then your transaction will have to be ' structured ' in some manner. That might mean a down payment, a shorter amortization, or additional collateral or guarantees.

Step 3 is the idea of presenting your package to a lessor that makes sense for your firm. Don't forget in Canada that the equipment finance marketplace is really broken down into 3 categories - small, medium and larger size transactions. Small in general might be termed as under 100k... mid we could say is up to the 500k range, and larger ticket transactions can be financed in the million of dollars if suitable credit and asset criteria is in place .

Complimenting these three asset lessors are of course captive firms who actually manufacture the product and then offer financing to your firm. The computer industry is a good example of this type of lessor - and by the way they offer the best rates, terms and structures given they are incented to approve your transaction, allowing them to make a sale at the same time!

Step 4 in our whole process is the negotiation process. Here you'll be asked to potentially provide more information and clarify what type of transaction works for you in the case of the asset category. Knowing the benefits, advantages and potential downside of capital or operating leases is key to your success at this point.

As you head into step # 4 remember that lessors in Canada have numerous ways to enhance their yield, at your expense. So understand some of the nuances of terms such payments in advance, or what the down payment or security deposit does to your pricing, and the lessor yield.
Companies with decent credit history have more negotiating power than they think, given that it’s currently a very competitive market in Canada when it comes to asset finance.

The last part of your transaction, our step # 4, is simply documentation and legal requirements around the transaction. This involves the lessors registration of collateral, waivers from any other secured creditors, etc.

If you're a Canadian business owner or financial manager that simply doesnt have the time to prepare information, negotiate, and then select from hundreds of capital sources in Canada for equipment finance then consider using the services of a trusted, credible an experienced Canadian business financing advisor . Just going through the whole 5 step process we have outlined sometimes becomes a job in and of itself - so consider some expert help when it’s available.







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/equipment_leasing_and_finance_asset.html

Where Cash Flow Factoring Fits In The Jungle Of Business Financing And Short Term AR Finance

What Cash Flow Strategy Fits Your Company Needs?



Information on AR factoring as a short term finance strategy for cash flow in Canada.




No shocking news to the business owner or financial manager... but it's a jungle out there when it comes to Canadian business financing!

A lot of options and a lot of confusion... right? So where exactly does cash flow factoring ... i.e. short term AR Financing fit into the picture. Let's try and clarify.

Fundamentally it’s not that complicated... but there is a a lot of misinformation out there about pricing and daily mechanics... so lets clarify.

Essentially you are borrowing against receivables. Easy to understand so far, right? There are different reason why clients we talk to consider this option. For some its really basic... they want to eliminate themselves from the whole process of credit and collections.

For others it's simply a case of being unable to access traditional financing, or even better traditional financing in the amount they need. That applies very specifically to companies in high growth mode, or perhaps they are even a start up.

By selling your receivables to a third party, typically a commercial finance firm, you receive immediate cash and your facility is repaid as those receivables are collected.

In a perfect world you want to keep / retain the rights to the servicing and collections of that AR... your firm wants to be in a position to collect and service and liaise with your valued clients. There is a way to do that in Canadian receivable finance.

The whole process of a short term factoring strategy is pretty fundamental - you simply sell something for less than it's worth. In this case it's the receivable Using a $100,000.00 receivable as an example you invoice the client as soon as your firm has performed its product shipment or service - and you receive , that same day approximately $90,000.00 . You receive the other 10k, less financing costs, when your client pays... and typically that discount is approx 2 per cent if you are billing on a 30 day period.

The Canadian business owner and financial manager quickly realizes that if your customer is paying relatively promptly you have just created your own large cash flow machine.

So the biggest advantage to factoring in Canada is simply ' immediate access to cash ‘. You do have that financing charge , but surely you haven’t forgotten Business Finance 101 that says that you are in fact incurring costs to carry that receivable already .. And if you had the cash the same day you invoiced you would be in a position to buy more and sell more, generating even further profits instead of wafting 1-3 months to collect that AR!

Shorter term financing via an AR Cash flow strategy can also include that ' confidential ' component we discussed - allowing you to bill and collect your own receivables without notice to any client, supply, other lender, etc. Typically you can't have both a bank and factor strategy in place, but the reality is that many clients simply can't access bank finance, so they gravitate to cash flow factoring.

Speak to a trusted, credible and experienced Canadian business financing advisor on clearing up the ' jungle ' of Canadian business financing when it comes to a cash flow strategy.





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/short_term_finance_factoiring_ar_cash_flow.html