A Receivable Finance Working Capital Loan Facility Financing . Explained . Finally! 6 Things You Need To Know About Invoice Finance

What You Must Know About Factoring In Canada


Information on a receivable financing facility in Canada . Why does this type of invoice working capital loan work best for cash flow challenged firms .



Receivable finance in Canada can be a valuable strategy for Canadian firms in search of alternate finance methods... that work.

There are 6 things you need to know about this type of working capital loan (it’s not a loan per se), so let’s examine what you need to know about invoice finance in Canada.

For our first point we can simply that that we are sure there are thousands of Canadian firms who probably haven’t even heard of this method of financing their business. When that is the case you can clearly say that lack of awareness leads to a general misunderstanding on the benefits of A/R finance, how it works, and how it stands up against other forms of business line of credit financing.

Secondly, and we're the first to admit it, that lack of awareness sometimes seems to tarnish the image of invoice financing. 'How we could have not heard of this before, my bank never told me about it '... that’s a constant comment we get all the time. Coupled with that fact is a general image problem around receivable finance, in that there is a perception, sometimes, that your firm has to be in difficulty to use this finance strategy. There is nothing more incorrect than that, and the proof we offer up is that some of the largest companies in the world utilize this strategy as part of a sophisticated method to finance their corporations. Enough said.

Cost also factors into one of our key things you need to know. Because A/R financing isn’t a loan or term debt of any nature it’s priced a bit differently than the Canadian business owner and financial manager might think, as they associate an ' interest rate ' with anything to do with financing. In fact the way A/R finance is structured it is in fact an ongoing sale, at your option, of your sales invoices as you generate them. That sale is structured as a discount purchase by your financing firm partner and in Canada typically is in the 2% per month range, sometimes less, sometimes more. So on a 10,000 $ invoice as an example you pay 200$ if your terms are thirty days and the account is collected within terms.

The bottom line is that A/R finance pricing is in fact a huge stumbling block to many clients, but only when they don't understand it.

Our fourth point is that if your sales are in a downward spiral this method of financing doesnt necessarily works, because in an invoice working capital financing strategy such as this your only liquidity is in fact your sales. If they’re growing, great, if not your flexibility to generate cash flow is diminished.

Point 5. Not every business sector in Canada can utilize our strategy. If you're in a Business to Consumer model retail/consumer receivables can't really be financed. And similar to business banking credit underwriters do attach a certain amount of risk to different industries which fall in an out of favor, or are constantly out of favor!

Finally, complexity! That's our 6th point today and we think its easiest one to fix. Yes, if you haven’t heard of the strategy around receivable finance then it might seem complex. Picking a partner is even worse perhaps , What firm is best for you as the lay of the land is littered with U.S. and U.K. firms, small Canadian firms, larger corporations domiciled in Canada. Some or limited by size of financing you require, or their geographical location.

Also, who is going to give you the straight goods on which method of invoice receivable finance works best (We favor confidential A/R finance), how pricing is determined, and how the facility works on a day to day basis.

The solution? Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in crafting the facility that meets your working capital financing needs.

7 PARK AVENUE FINANCIAL IS AN
EXPERT IN RECEIVABLE FINANCE 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/receivable_finance_working_capital_loan_invoice.html

Making Moving Pictures ? Tree Barking Wrong Up? Talkies? Cartoons? Canadian Film Tax Credits Do The Job! Let The Movie And Video Production Tax Credit Finance Your Project

Let The Production Tax Credit In Canada Finance A Significant Majority Of Your Budget

Information on Canadian film tax credits. How the production tax credit for video, movie , and animation projects finances a significant portion of any budget


Canadian film tax credits for film, video, TV, and animation. Can the Production Tax Credit solve the mistaken emphasis that producers and project owners sometimes find themselves in as they try to put together the ' money machine' required to finance their project .

Financing television, movies and animation / transmedia projects has certainly changed from the days of our aforementioned ' talkies' and ' cartoons'... that's for sure.

We're pretty sure that the majority of producers and owners of projects worldwide by now have heard that that Canadian film tax credit system seems by far one of the most sought after methods of making a film in the world. Canada's stable economy, sound financial system, as well as its diverse geography make it a solid choice to film or produce your project.

And let's also not forget Canada's diverse geography which lends itself to numerous genres of entertainment. Specifically in the world of animation and transmedia Canada's developers are again ' sought ' by producers all over the world. Bottom line, Hollywood and Vine often quickly becomes Yonge and Dundas for those familiar with Toronto Ontario's major downtown intersection.

So what is the Canadian film production tax credit? We suppose we can't disagree with those that call it a ' government subsidy ' - but for anything form of finance that might cover 30-50% of your entire budget we're not going to quibble over semantics. ‘Show me the Money ' and ' Go Where the money is ‘clearly has project owners flocking to Canada.

Any form of business financing is difficult. Film and animation finance certainly has it's challenges , so if there is a vehicle that finances , on a non payable grant basis a very significant part of your project when it comes to the ' below the line ' portion of your budget.

And our key point today is that tax credit can be financed, or sold, as long as you have a clean chain of title. The technical term for the non payable tax credit is the ' FILM PRODUCTION SERVICES TAX CREDIT '. Although some of Canada’s ten provinces change the formula a bit regarding percentage of allowable credit the bottom line still is that the tax credit is hefty in anyone’s view.

We are often asked how the tax credit is calculated. It's essentially a percentage (as we referred to above) and point system based on the amount of Canadian talent and ' spend' on your project. That amount is best, in fact only determinable by a good entertainment tax account who applies on your behalf for your certification. That’s why over the last ten years well over 2000 projects have been done in Canada under the genres of film, TV, animation, and the new kid on the block, ' Transmedia '.

One Hollywood entertainment critic maintained that the even broader appeal of the Canadian film tax credits was in fact Canada's ' depressed loonie ‘, i.e. the colloquial term for the Canadian dollar . While the dollar was very weak against the U.S. dollar for a long time it now has essentially parity with the U.S. dollar, so that certain eliminates that logic for the present time.

The financing of your production tax credits is a simple process if you've got a solid team in place when it comes to being able to demonstrate you have covered off the additional debt and equity required by any project . Film tax credits can be cash flowed at the end of your project, or during, allowing for solid working capital and cash flow enhancement.

Speak to a trusted, credible, and experienced Canadian business financing advisor who can assist you in the preparation and financing of your financeable Canadian film tax credits. You'll find it reduces a lot of stress and won't have you ' tree barking wrong up ' when it comes to putting your project together from a finance perspective.

Call 7 Park Avenue Financial for Film Tax Credit Financing





Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/canadian_film_tax_credits_video_production_movie.html

Financing A Franchise Business . Behaving Properly With Franchising Lenders In Canada!

Canadian Franchise Finance - Got a Strategy?


Information on financing a franchise business in Canada . Do’s .. and Don’ts ! of Canadian franchise finance



Financing a franchise business in Canada requires in our opinion a certain measure of ' good behavior ‘when it comes to dealing with franchising lenders.

What do we mean by that? Well ' behavior ' in the sense that it’s important to understand where your lender / lenders are coming from vis a vis their expectations on your transaction and what they expect. In our opinion once you have a certain measure of respect and understand the requirements and some of the lender psychology behind the transaction you'll be better off. And by ' better off' we of course man your chances of final approval increase substantially.

Most franchisees in Canada quickly realize that after they have made the decision to purchase a business within the Canadian franchise environment that they don't have all the capital to complete a transaction themselves. They require financing of some sort. That's when they typically start talking to financial sources and often seem overwhelmed around the requirements they might be asked to fulfill to complete a transaction.

Even the personal guarantee can often become an issue with the franchisee applicant. And that leads to thoughts about whether in fact a personal guarantee is in fact always required on a franchise transaction /

Although you might assume that the franchisor and lender might be working hand in hand on your transaction this is rarely the case, certainly in any direct manner.

What your franchisor can do however is to provide some measure of guidance on how other franchisees have in fact completed transaction within their chain. So whether you go to a bank, a private commercial financial institution, or one of a myriad of independent finance firms who can assist you we can categorically say it's up to you to do your homework on the requirements for financing.

So, where are those franchise lenders coming from when they are looking for a bit of respect and good behavior around their requirements .? A good start is simply to understand that no franchise in Canada is financing on the 100% OPM principal. OPM is of course ' other people’s money '. So you need to understand the lender had an immediately expectation that you are bring a down payment / equity scenario to the table.

Unless you are getting direct financing under the government small business loan you should be totally prepared to provide good disclosure on your personal net worth and credit history. While the majority of franchises, in our opinion, are financed under the Government SBL loan program the reality is that also requires a decent personal credit history and solid evidence of net worth commensurate of course with the size of the franchise you're purchasing g.

Credit and character go hand in hand so the expectation from franchising genders is that you got some solid business or industry experience and that you present yourself properly during your submission process. This includes having a crisp, solid business plan for your new business, as well as other standard supporting documentation required when you're financing a franchise business in Canada.

So, is there a bottom line? If there is one it’s pretty common sense oriented... namely understand where lenders are coming from in their requirements to franchise your business and your ability to professionally supply that info, and understand why they require that information will go a long way towards franchise financing success.

Speak to a trusted, credible and experienced Canadian business franchising advisor for assistance with your franchise proposal, with a focus on 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/financing_a_franchise_business_franchising_lenders.html

Can ABL Finance Eliminate Sleepless Nights ? Here’s How An Asset Based Lending Business Line Of Credit Can Help

Looking For A Solid Business Line Of Credit?


Information on why ABL asset based lending is the business line of credit of choice for Canadian firms looking for business credit alternatives .



A cure for sleeplessness? Well, we're not really saying that ABL asset based lending via its business line of credit facility is your cure to what we might term as ' business insomnia ', but we do meet many Canadian business owners and financial managers who profess to have some sleepless nights worrying about how to finance their business on an ongoing basis .


So why then is an ABL facility a solution to less worrying about Canadian business financing. It's important therefore to understand what asset based lending vis a vis a business credit line is, and why it's getting more broad appeal everyday in Canada.

ABL is a secured credit facility collateralized against various assets of your firm. You essentially borrow against all those assets under that collateral facility. So the question then begs to be asked, ' why is this any different than a facility from a Canadian chartered bank?" It's a reasonable question, and the answer we guess is two words ' more ' and ' easier. By that we mean that 9.9 times out of ten you are going to be able to achieve much more liquidity under an asset based business line of credit. And with respect to ' easier ' the asset based lender focuses on assets, not cash flows, covenants, ratios, outside collateral, etc.

The assets that you typically borrow against are inventory; accounts receivable and any fixed assets such as plant, machinery, etc that aren't already encumbered by another lender or lessor.

How then does this business credit facility generate more financing for your firm, or perhaps a better expression is the potential ability to generate additional cash flow . The answer is that it's all in the margin, because typically your business A/R is margined at 90%, unlike the bank 75%. Inventory and assets are appraised at the commencement of your facility and you can enjoy significant draw down ability with them anywhere typically form 0-70%. (Every business/industry is a little different, so borrowings differ according to type of inventory, asset, industry, etc)

Essentially, as we have demonstrated, the assets in your businesS form the borrowing base for all ongoing borrowings. You can hopefully immediately see that you have much greater access to liquidity and that as your business grows so does your facility. Clearly we have demonstrated that your sales growth is automatically funded by that commensurate growth in client receivables and inventory if in fact your firm has an industry position.

There are various technical aspects to how your ABL business line of credit is monitored and funded. Areas of concern to the ABL lender include warranty returns, credit notes, and inventory composition re raw materials, work in process, finished goods, etc.

We strongly encourage you to take a hard look at ABL credit as your key working capital revolving facility. Will you sleep better? We hope so, knowing that your business is financed properly and poised for growth and profits. Speak to a trusted, credible an 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_based_lending_abl_line_of_credit_business.html

Are There Disadvantages To Lease Financing Assets In Canada ? Equipment Finance Pro’s And Con’s

Comparing the Disadvantages of Equipment Finance to Benefits Of That Same Strategy


Information on potential disadvantages of lease financing equipment asset in Canada and how business owners can address these to maximize benefits .



Disadvantages to equipment lease financing in Canada? Say it isn’t so Joe!
It's not really ' disadvantages' we're talking about, perhaps the better choice of words are ' things to be on the lookout for '.

No one is more bullish on lease finance in Canada then us when it comes to financing business assets. When we talk to clients about the pros of lease of this popular method of asset acquisition we probably sound like a broken record.

It's all about cash flow preservation, 100% financing capability, leaving your other sources of credit undisturbed, tax and accounting benefits, and ownership rights along with the obligations. Anyway, suffice to say you can put us in the bullish column when it comes to recommending this method of Canadian business financing.

But, back to those ' disadvantages', or as we said, things to properly look out for. As much as we hate to say it, we don’t think we'll ever get our customers focused off of the issue of the rates and cost inherent in lease finance. Customers who perform a lease vs. buy analysis may well find that purchasing an asset with cash, or entering into a bank term loan may in fact some cost advantages. For the record we have never seen a big disparity in any lease vs. buy analysis when it comes to that decision at the fork in the road.

However, as we said, Canadian business owners and financial managers do often focus just on cost, rate, low monthly payment, etc. All we say is simply it's never ' just' about the rate; it's also about the flexibility, ease of acquisition, etc.

Another thing you have to look out for is the loss of ' salvage ' value when it comes to the end of the term of your business equipment lease... At the expiration of your term in a business lease, unless you have properly addressed the issue the equipment may belong to the lease company. That's clearly a disadvantage, IF ... you don’t address the issue by properly constructing a lease that mirrors your choice of ownership at the end of the term.

How can that be done? Pretty simply actually. You can eliminate the loss of ownership ' disadvantage ' by simply ensuring you have a purchase option at the end of your lease term, or , alternatively, you can opt for a true operating lease and invoke on of the rights you have at the end of that transaction . Those rights are buy, extend, or purchase at a fair market value or pre agreed amount.

One of the most popular again types of equipment lease financing in Canada continues to be the sale leaseback. It's a case of monetizing assets you own already by leasing them back to your firm. However if the tax base of the asset is below its sale price you might have to pay or record some sort of capital gain. Talk to your accountant guy about that one! Just in case.

Other disadvantages? Well, as we said, we're not necessarily pitching them as disadvantages, just things to look out for. So other areas you want to focus on are your obligations in the lease, which pays the insurance, are there any restrictive covenants, etc.

Finally, who to deal with? In Canada lease finance can be accomplished via a number of partners. They include bank lease co, specialized commercial finance firms, captive manufacturers, insurance companies, etc. To wade through any potential confusion disadvantages consider seeking and speaking to a trusted, credible and experienced Canadian business financing advisor who can ensure you're ' accentuating the positive ' when it comes to lease financing of equipment assets 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/lease_financing_equipment_canada_assets.html

5 Advantages Of AR Accounts Receivable Finance In Canada. Using A Business Factor Funding Program Works.

Looking For Some Solid Benefits In A/R Finance In Canada?

Information on advantages of ar accounts receivable finance funding . How does a business factor program work.



Thousands of Canadian business owners and financial managers perceive AR Accounts Receivable Finance as a solid strategy for financing their firms. Let's examine 5 key advantages of this method of working capital finance. But first let’s take a quick step back and ensure we understand the product and the mechanics of this type of finance service.

The heart of the AR finance strategy is of course your receivables. This financing differs significantly from a bank loan or more commonly the Canadian chartered bank line of credit. What is that main difference? Simply that under a bank facility the financing is based on your firm’s credit worthiness, with the receivables being assigned to the bank as collateral.

The difference then? It's simple and basic. AR financing is not a loan to your company per se, instead its the purchase of your receivables, generally on an ongoing basis , This sale of ar, via our business factor funding arrangement enhances your cash flow and working capital .. Immediately!

One of the main points of confusion that we find continually exists around this method of financing is the pricing. While the bank facility charges your firm an annual interest rate (plus some miscellaneous fees here and there!) invoice finance is the sale of your A/R, at a discount, allowing you to receive funds and replace A/R on your balance sheet with cash, immediately as you make sales.

In general, certainly more often than not, invoice receivable finance in on a recourse basis, just as if you had a bank facility in place. Simply speaking, you're responsible for any credit losses. Purchase of business credit insurance can eliminate bad debt risk, especially if you have foreign or concentrated receivables.



Finally let’s get on to those advantages we spoke of. Here are just five of them, and if you are having challenges in accessing bank financing these advantages should have significant appeal to your firm.

First of all, it’s a classic short term funding strategy without additional collateral requirements or major emphasis on guarantees of the owners of the company.

The second advantage is timing, and we're firm believers that timing is everything in business. The hard reality is that invoice financing provides you with cash flow on the same day as you generate sales. That shortens your overall credit extension cycle by... you guess it, 100%.

Our third advantage of AR Accounts receivable finance is simply flexibility. No debt goes on your balance sheet, you’re just monetizing assets and funds can be used for any general corporate purpose.

Our 4th advantage is somewhat of a double edged sword. Traditional AR finance in Canada has the busines factor funding your receivables as an extension of your credit department. We would point out that under the right circumstances your firm can acquire a confidential AR Finance facility which allows you to do all the billing and collecting yourself. Bottom line, it’s your call.

Finally, if your firm as a lot of U.S. or foreign receivables invoice finance is a solid way to address this business challenge. Even the exchange rate is taken care of in this situation.

You owe it to your yourself of check out and understand AR Accounts receivable finance in Canada. Do any of our listed advantages make sense for your firm? If so, speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in the solution for a proper facility.

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/ar_accounts_receivable_finance_business_factor.html

Overlooked Leasing Equipment As A Source Of Business Finance ? Lease Financing Works. Here's Why!

Don’t Forget One Of Canada’s most popular business finance mechanisms



Information on leasing equipment in Canada. Canadian firms can utilize lease financing as a valuable source of business finance and funding.


Overlooked? You tell us, but we're never more amazed at why leasing equipment is such an often overlooked source of business financing in Canada. Here's why we think the ' unconverted' need to reassess this popular method of financing their businesses when it comes to asset acquisition.

Hopefully you've got your short term working capital and cash flow needs sorted out. They might include bank lines, receivable finance, working capital facilities, asset based lines of credit, etc.

But what about long term capital when it comes to financing your needed asset acquisitions? It's an entirely different form of financing and you just need to know some solid basics when it comes to eliminating any surprises. Let's cover some basics.

In general Canadian business owners and financial managers need to only know there are basically two types of leases - operating and capital. But the difference between the two of them is huge! When you engage an operating lease scenario you essentially have no ownership or acquisition rights - think if it as leasing your landline phone.

A capital lease on the other hand is a non-cacheable commitment to make a series of payments over time for the purchase of the asset; it’s as simple as that. The usual (but not always' end result of a capital lease is the transfer of ownership of the asset from the lessor to your company.

Strictly speaking, leases are a form of long term debt, but depending on the type of lease you structure, and how it's structured it doesnt necessarily have to show on your balance sheet.

Why then do we think that many businesses in Canada overlook some solid advantages in leasing equipment? And what are those advantages?

First of all leasing as a source of business finance frees up working capital that you quite frankly could use in a more productive matter. A quick example is that if your lease rate is, say 7% and you can generate returns on profit in equity of 10%, as an example... well... enough said!.

Other methods of business finance as a source of financing often require hefty down payments - leasing more often than not is 100% financing or pretty close it depending on your firms overall credit quality .

Naturally if you utilize a business leasing equipment firm you are therefore not disturbing any other credit facilities you might have in place, such as short term revolving lines of credit. And again, with decent credit you don’t have to pledge other collateral and solid credits can often negotiate a limited or no personal guarantee.

Have we made out point? We hope so. Don't overlook lease financing as a valuable source of business funding. Speak to a trusted, credible and experienced Canadian business financing advisor on solving your asset finance need 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/leasing_equipment_business_finance_source.html