Time To Unleash An ABL Asset Line Of Credit Revolver Loan Insider Your Company? A Revolver Loan Works

What’s The Difference And Focus in ABL Financing?


Information on why an ABL revolver loan is a powerful tool in Canadian business . Finance Your Firm Via An Asset Line Of Credit



Don't you just hate them? We're talking about the ‘cash flow crowd’. That's why an ABL revolver loan via asset line of credit finance is quite simply, a way to beat that crowd at their own game.

However, all sarcasm aside, the concept of cash flow and servicing cash flow is a key driver in business credit. That's where the ABL line of credit goes against the grain. This time worn method of business revolving credit is a great solution for asset intensive businesses that cannot always meet those stringent cash flow requirements.

As we said, its all about assets, so if your firm has them, specifically A/R, inventory and equipment you're in a great position to qualify for this method of Canadian business financing for your credit line. It's been around a very long time, but quite frankly simply got more popular in recent years.

And just because it’s an alternative source of finance absolutely does not mean its anything approaching a ' lender of last resort '. The proof? Some of the largest and most successful corporations in Canada utilize it! And we’re talking public companies and private.

So why do business owners and their finance managers gravitate to an ABL revolver loan. It can be summed up in one word, flexibility. Can they be cheaper also, when it comes to financing rates? The reality for the majority of businesses is that it will be more expensive, but the trade off here is simply more liquidity. But for the record, there are numerous circumstances when ABL pricing meets or exceed that of the Canadian chartered banks. It's basically a question of overall credit quality and deal size.

Many ABL type deals are used by investors and business owners to complete a buyout transaction. That can be in the context of an acquisition or a change in overall ownership.

We do remind clients though that although the focus isn’t always on cash flow as with a bank line of credit focus the reality is that there is more monitoring and reporting when it comes to an asset line of credit finance facility . That might also include some appraisals prior to setting up the facility.

The positive trade off to that is simply that you have access to more liquidity - with receivables typically margined at 90% and inventory and equipment margins significantly exceeding Canadian chartered bank margins. The bottom line is that it’s your assets driving your access to liquidity, without being hampered by ratios or covenants.

Speak to a trusted, credible and experienced Canadian business financing advisor on why the ABL line of credit can unleash the power of liquidity for your Canadian business.






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_loan_asset_line_of_credit_finance.html

Financing A Business In Canada ? What Finance Company Or Solution Works Best?

Change Your Company’s Destiny With Solid Financing Strategies & Solutions


Information on financing a business in Canada. What solutions are available via a bank or finance company to solve the needs of Canadian firms in search of capital.



Financing a business in Canada. One of our favorite writers recently reviewed a U.S. report focusing on the ability of a company to finance its business in the U.S. . . . The report was portrayed as a current ' pulse ' of the market, including input from business owners and entrepreneurs.

That got us to thinking ... hey... this is Canada. Would that current ' pulse ' of the market be similar? Let's take a look and hopefully provide some insights into Canadian business financing.

A recurring theme in the U.S. report was actually the concept of ' vanishing finances. The average business owner, certainly in the SME (small to medium enterprise) market, like its U.S. counterpart in many ways still isn’t fully recovered from the 2008- 2009 world debacle. Canada, like the U.S. saw sources of financing change considerably. Unbelievably, even many rational sources of financing simply ... disappeared.

So how did U.S. business owners address the disappearance of funding sources for their business, and in Canada what changed also? Here's where it gets a big ugly ... as the majority of respondents indicated that they had to inject additional personal equity in their business, and even resort to business and personal credit cards to fund their firm.

We still meet many busines owners who rely to some degree, sometimes significant, on credit cards to finance their business. This sometimes is a hugely double edged sword, as they do get some additional capital, but it’s sometimes at the expense of their good personal credit rating. Bottom line, if you can, it’s important to separate your business and personal life when it comes to finances.

Business lines of credit are the life blood of most firms, whether you're a small, medium or large when it comes to revenues. In the U.S. on 30% of businesses in the SME sector reported they had access or could qualify for a line of credit from a bank or finance company. One alternative that was stated as solution was the use of home equity lines of credit for busines finance. Again, it works, but not a preferred strategy!

When times are tough who can we look to from help? ' I'M FROM THE GOVERNMENT AND I AM HERE TO HELP ' As skeptical as we are of that statement the reality is that thousands of firms in Canada, ( and probably hundreds of thousands in the U.S. ) utilize the government loan program , In Canada we call it the ' SBL ' , in the U.S. its the SBA .

In Canada the cap for revenues on your firm vis a vis its ability to access the SBL is 5 Million dollars. That covers a lot of ground in Canada, and you can borrow up to 350,000$ for much needed financing for equipment, leasehold improvements, computers, software, etc. We encourage every SME business to check out the program.

So, is the situation all that bleak? We suppose it’s the glass half empty/half full saying... we'll let you decide. But you clearly can empower your company by checking out great solutions when it comes to financing a business in Canada. They include bank credit lines, receivables finance, equipment leasing, asset based lending, tax credit monetization, securitization of receivables, and cash flow working capital loans .

Whether from a bank or commercial finance company you just might find that behind those doors are some solid solutions you perhaps didn’t even know existed.

Speak to a trusted, credible and experienced Canadian business financing advisor on sources of finance 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/financing_a_business_in_canada_finance_company.html

Business Leasing & Equipment Finance Canada – Do You Know These 4 Secrets Of Lease Financing ?

Don’t Overlook These Lease Finance Benefits !


Information on business leasing in Canada . How to maximize the benefits of equipment finance via lease financing tactics to finance new or used assets .



Business leasing and equipment finance in Canada. Does your firm take advantage of these 4 secrets of lease financing in Canada, thereby maximizing the benefits of an already proven business finance tool used by 80% of North American ( that’s Canada too by the way !) business.

Let's focus on some of the advantages of leasing, thereby giving you some great reasons to consider entering into a lease when your firm acquires assets. Yes there are other ways to acquire assets - they include term loans, or putting in additional equity into your company but time and time again Canadian business owners and financial managers come to realize that lease finance is competitive and offers some of these ' special ' advantages that arent available elsewhere .

So, is lease financing the right decision? Let's examine secret # 1 - which simply speaking is your ability to get 100% financing on. And even if a down payment is in fact required 90% financing, as an example surely isn’t a bad thing. Oh and by the way, the additional costs that you might have to incur in acquiring an asset, i.e. delivery, installation, training, maintenance, etc. can easily be bundled into your transaction. If you went the term loan route many of these softer costs couldn’t be financed and therefore drain your cash flow.

Secret # 2 in business leasing. It's your ability to be a ' hedger '. A hedger? We mean of course a hedger in terms of an inflationary environment. As you make your payments over time the lease company that receives your cash of course recognizes that’s its worth less over time whenever there is positive inflation in the economy. They lose, and you win. Naturally this is probably not the greatest economic decision driver when you acquire and asset but its one more positive in the lease advantage scenario. And since lease terms are available anywhere from 2- 7 years typically you keep on being the winner.

Secret # 3- In your kingdom of business, cash flow is king. We all know that .The drain on cash flow in your company can be offset by utilizing lease financing. Firms with good credit ratings can get great rates these days, and even firms that have credit challenges are able to take care advantage of ' structured ' transactions, allowing them to acquire the asset under perhaps a shorter term or higher monthly payment.

Secret # 4- The lease financing transaction typically is complimentary to your overall banking and debt strategy. Banks or other institutions might have what we call ' negative covenants ' about how you run you business from a financial ration perspective. Leasing can often address your other loan covenants with lenders in a positive manner, but we do caution business owners and financial managers to review their covenants prior to entering into a lease.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing asset finance 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/business_leasing_equipment_finance_lease_financing.html

Receivable Finance & Cash Flow Factoring – 8 Questions 8 Answers On Receivables Finance Solutions In Canada

Your Questions Finally Answered On A/R Finance In Canada

Information on receivable finance and cash flow factoring in Canada . Answers to questions you need to ask before entering into the right receivables finance strategy .


Receivable finance in Canada. Boy do we get a lot of questions around this single method of financing receivables in Canada. Another term for the same subject is of course ' cash flow factoring’

So let’s take some of those often asked questions, 8 in total and... You guessed it, answer them!

Question # 1- Does a Canadian start up or early stage company utilize receivable finance? The answer is a resounding yes. The reality is of course that same business is often ineligible to obtain most other methods of Canadian business financing by the very nature of the start up. Since cash flow factoring focuses on the asset of receivables it makes sense it’s a good solution for a start up firm

Question # 2 - Can you set this type of facility up on your own without the assistance of anyone? Again, it’s a resounding yes. However, due to the fragmented and generally misunderstood issues around the subject it would make often more sense to use a Canadian business financing advisor who is aware of the issues, pitfalls, and pricing around A/R finance. Another point is that this method of financing is clearly not all about price after you get into how it works daily mechanics, etc.

Questions # 3 - another great one. Does all of your A/R investment need to be financed at all times? The answer is no... This is clearly one method of financing your business that is essentially ‘pay for only what you use '. Although some facilities might require a minimum usage essentially it’s your call as to what A/R and when to finance.

Question # 4 - Are there contacts involved with respect to committing to such a facility. The answer is that certain facilities require no contract how most cash flow factoring firms do often require a commitment from your firm. That can often be negotiated and allow you to have some flexibility built into it. The reality here though is that you typically will use this type of finance for a year anyway as you move towards a more traditional bank borrowing.

Question # 5 - Does a firm have to have good financials to qualify. In general the answer is no. Unless your firm is in a death spiral past financial challenges your firm faces do not preclude you from obtaining receivable finance. As a rule if your sales are stable or growing you're an excellent candidate for cash flow factoring.

Question # 6 - Who exactly provides cash flow finance in Canada. For a starter it’s not the banks when it comes to invoice financing. There are firms that are very small in nature, some are subsidiaries of U.S. firms, and some are substantial on their own, and Canadian owned. Pricing, qualification, deal size, etc all vary so here again it makes sense to work with someone who is knowledgeable about industry players, their offering, and reputation. Again, beware of the ' low price ' carrot - it’s often, if not always, what it seems.

Question # 7- Pricing. Ah, we though you would never ask. As a general rule factoring in Canada is sin the 2% range, sometimes more, sometimes less. The industry views this monthly rate as a discount, i.e. it buys your A/R at a 2% discount to its value. You can offset this cost by purchasing smarter, taking discounts from suppliers, and selling and collecting more, thereby increasing your profits. And don’t forget, you're simply not carrying receivables for 60 or 90 days anymore, but it makes total sense still to stay on top of your collections to reduce costs to finance.

Last question, Question # 8 - what is the actual difference between A/R finance and a bank facility. As a joke we could say ' the ability to get one ‘! But the reality is that we've partially answered that one already. Receivables finance is the purchase of your sales and receivables as you make that sale and invoice. Banking is simply offering financing that takes your receivables as a back up collateral. That's a simplistic answer, but it’s a basic one.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your receivable finance and cash flow factoring 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/receivable_finance_cash_flow_factoring_receivables.html

Restaurant Financing In Canada - Your Hospitality Loan Finance Primer . Now You Know How!

How To Address The Financing Of A Restaurant In Canada

Information on restaurant financing in Canada . Putting the right hospitality loan in place might not be as difficult a finance challenge as you think !

Restaurant financing in Canada. Let's talk about some common sense financial approaches to getting the right hospitality loan finance in place for your chosen restaurant business. Oh, and by the way, that might be a franchise business, or it might be your own unique concept; there are advantages to both.

We use the term ' financial approach ‘. We can almost see our clients grimace when we use the term as it conjures up things like accounting, financial statements, etc. The reality is though that many entrepreneurs we meet in the hospitality industry are running on a bit too much emotion and ego and a need a little more of a financial approach to simple basics around a restaurant such as cash flow, profits, return on investment, etc.

It's really the cash flow potential of a restaurant that will determine a common sense price for you, and down the road that same metric will be a key driver in the valuation when you want to sell the business .

Getting a solid handle on the cash flow around your business allows you to be successful in several areas. Those areas include refinancing, selling your businesses, and, as we said determining if your initial investment in the business is reasonable when it comes to total return to yourself. That total return is usually viewed by the entrepreneur in two ways, the salary that he or she can take from the business, as well as the equity that the restaurant is hopefully building up in terms of valuation.

Quite frankly getting a good handle on the cash flow of the restaurant, independent or franchise... allows you to make a proper choice when it comes down to several businesses that you might be looking at .

When a lender, or yourself looks at the financial projection, or the actual financials of the restaurant they are looking to get a sense around normalizing the cash flows, as many restaurant owners take out a salary that might be higher, or lower, than the industry norm.

Be carefull in your projections, or analysis of an existing restaurant that items such as personal vehicles, salaries to family members, and advances to owner’s dont distort the true profit and loss of the business.

The ability to service lease and loan debt is critical in restaurant financing. Real care must be taken to ensure you are capturing all the debt of the business and that you feel comfortable with the overall cash flow.

The amount you are required to finance a restaurant in Canada varies, and typically it’s anywhere from 10-50% from a viewpoint of owner equity.

Due to the higher risk surrounding perceptions of hospitality loan finance care must be taken to source the proper financing. Typical financing programs that best suit Canadian restaurant finance are the SBL Government business loan, aka the 'CSBF' loan, as well as lease and equpment financing that can be easily accomplished via an independent lease finance firm.

Typical payback scenarios are 3-5 years, sometimes longer, depending on the size of the business and the loan. Leaseholds are best financed under our aforementioned SBL program.

Take a practical, not an emotional approach to your restaurant financing challenge - it will pay off in the long run. For specialized assistance speak to a trusted, credible and experienced Canadian business financing advisor for your hospitality loan finance 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/restaurant_financing_finance_hospitality_loan.html

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