‘Takin’ Care Of Business ‘ AR financing . Accounts Receivable Loans Are ‘ Working Overtime ‘ !

Canadian Receivable Finance – Working Overtime!

Information on ar financing in Canada . Why accounts receivables loans play a key role in Canada’s business financing



AR Financing in Canada. It's clearly ' takin' care of business' when it's used properly with respect to accounts receivable loans for financing your business in Canada .

One of Canada's greatest rock anthems gave us some ideas about how receivable financing in Canada is appropriate for thousands of firms, and getting more traction everyday. ‘Start your slaving job to get your pay ‘... perhaps BTO meant to stress the importance of collecting receivables in order to facilitate cash flow for payrolls? So as the song says ' take good care of my business ‘... and you don’t need to ‘work overtime.'


So what then are the advantages of AR financing in Canada and do they in fact make sense for your firm. Those advantages become very clear if in fact your firm has tried to access more traditional bank financing but finds itself unable to do so.

First of all the time and level of financing in accounts receivable loans (it’s not really a loan per se - it’s a monetization ' provides you with a significant amount of working capital immediately without the additional collateral and guarantees that might be required by another lending source.

And what do we really mean by ' immediately '. Well how is ' same day service ‘, because firms get funded typically the same day they generate sales and invoices.

Organizations like the Federation of Canadian Business speak extensively on ' ease of access' to financing for companies in the SME sector. AR Financing is typically very easy to apply for and turnaround time for a proper facility should never be more than a week or two.

Also, if you're dealing with the right firm (unfortunately many firms in Canada are not) you should be also able to finance U.S. receivables at no cost. Foreign receivables might, but no always require some level of credit insurance, and we're referring of course to non North American A/R.

The overall mindset of the Canadian business owner changes once he realizes the difference between A/R financing and a bank facility. So unlike a bank overdraft which is collateralized by your assets, accounts receivable loans are in effect the sale of your A/R to a third party finance firm. Oh , and by the way, as your business grows so does your receivable loan facility, there is no real need to ' reapply ' or wait until you have another year of financial statements under your belt .

So if we're so right about invoice financing in Canada why isn’t everyone on the program? Good question. The reality is that there is still a lot of lack of awareness of how the financing works, what it costs, as well as the perception that it’s non traditional in nature. If thousands of firms in Canada use AR finance we're quite sure it’s no longer that ' alternative ' in nature.

We do acknowledge though that if your sales are in fact shrinking or not stable that there are some challenges here and this method of financing might not be for your firm. The bottom line though that if you are in fact growing you can use cash flow from A/R financing to productively finance your firm. That includes by the way using the funds to purchase more effectively as well as taking supplier discounts, potentially alleviating the cost of accounts receivable loans.

Looking for a business financing solution that helps you control business cash flow performance and growth? Then speak to a trusted, credible and experienced Canadian business financing advisor today on how A/R financing can help your firm.

P.S. Again, it’s not a loan, it’s a ' monetization’!





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/ar_financing_accounts_receivable_loans.html

Business Acquisition Financing In Canada . You Don’t Have To Live On Bay Street To Make Acquisitions Finance Work

Buy and Finance A Business In Canada

Information on business acquisition financing in Canada . Strategies, tools , techniques and advice for merger and acquisitions finance .


Business acquisition financing in Canada. It conjures up visions of having to be a Bay Street / Wall Street heavyweight when it comes to sophisticated financial knowledge.

But for smaller and medium sized corporations there is a healthy element of ' do it yourself ' when it comes to acquisitions of competitors, synergistic companies, etc. But don’t under emphasize the importance of a solid external team to assist you . Let's examine some solid ' need to know ' info that will help the Canadian business owner and financial manager address any acquisition successfully.

The amount of proper financing that you can generate, internally and externally (mostly externally!) will ultimately play a large part in the size of the company with whom you might be acquiring, or merging with. Here is where valuations come into play and anywhere from 30 - 50% of the final price that you agree on might in fact have to represent a cash type scenario.

Naturally there are a thousand stories in the naked city, as many firms are acquired simply for the reason that they are not profitable for the current ownership. This does bring up a very key point though, which is that if you are looking at acquiring a firm that is in trouble, losing money, losing market share/sales etc then in fact a lot less cash is required for the transaction. However at that point you'll obviously have other challenges to address.

If there is a solid piece of advice we can give to the Canadian business owner and financial manager it’s to start a financing strategy around your acquisition early on. That final capitalization of the proper amount of debt and equity is critical.

When contemplating bank financing for business acquisition financing in Canada a solid, realistic and succinct business plan is required. We see many plans from clients that are far less than ' succinct ' and therefore raise more questions than answers.

So what does one in fact have to demonstrate to the bank? A good start is how your firm will operate the business - so a good examination of the financials and any key issues around seasonality of sales and cash flows, customer concentration, production, and credit terms are key.

If the business you are acquiring does in fact have challenges it's clearly a good time to demonstrate how you will implement controls and changes around those challenges.

Spend a lot of time considering the amount of leverage you will ultimately have when acquisitions are completed. It's tempting of course to become highly leveraged but this is the classic double edged sword of business financing , and don’t think that high leverage will guarantee higher returns to shareholders, as that debt you are now carrying can in fact become a day to day nightmare down the road if not managed or financed properly .

Business acquisition financing in Canada is about finding a solid opportunity, analyzing your transaction carefully, and closing with the best financing possible based on your industry profile of debt and overall capitalization. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with acquisitions that make sense- financially!

Talk to 7 Park Avenue Financial About
Business Acquisition 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/business_acquisition_financing_acquisitions.html

Buying A Business In Canada ? Types Of Financing For Your Purchase

Financing The Purchase Of A Business In Canada


Information on buying a business in Canada . Financing your purchase is available through various techniques and strategies




Buying a business in Canada. It's done for a lot of reasons. Financing that purchase requires knowledge of strategies that allow you to acquire opportunities such as a sale of a family business, seizing the opportunity to acquire a troubled competitor for synergistic reasons, or... heaven forbid... simply growing your business from a size and profit viewpoint.

We'll leave it up to you to identify the business opportunity, however we think it’s our job to ensure you've got some solid access to financing strategies that will work for your success in a business acquisition.

One often overlooked strategy that you should focus on right from the beginning, if only because it minimizes your financing requirement is the vendor take back, often also termed ' owner financing '. Simply speaking, it’s a powerful strategy. And when financing a business purchase becomes a challenge the vendor take back/owner finance strategy makes access to the other types of financing you require... easier!

Typically the Canadian business owner and financial manager thinks of ' the bank ' when they look to acquire a business. That's just logical. However if you're not familiar with the way a bank looks at a business acquisition you're going to hit a roadblock pretty quickly.

Very early on in the process you absolutely have to identify whether you and the selling firm are going to focus on an asset sale versus a stock sale . For small and medium sized businesses in Canada the concept of financing a share sale is somewhat impossible, certainly if financing is required and is a key component of the deal.

If you're a large corporation or public company that’s another kettle of fish, but we're simply saying for a small to medium sized transaction asset sale financing is really the way to go. As an acquirer you'll find that sellers of a business in Canada that wish to focus on a stock sale are really more focused on tax minimization issues, and that isn't going to help you complete the deal.

Once you have focused on the asset sale it becomes a case of determining the value of those assets. This is typically done by appraisal and financial analysis techniques.

Goodwill is the excess dollar amount you're paying on top of the assets. Goodwill is typically difficult to finance, which is why our owner financing/vendor take back strategy is sometimes a good place to start. The sellers financing, often referred to as ' holding the note ‘can allow you to complete a purchase satisfactory to all parties.

Both banks and non bank commercial finance lenders view the VTB (vendor take back) very positively. Since the seller of the business has a vested interest in making the purchase also successful you often can get very favorable, in fact below market financing rates from the owner or owners of the company being acquired.

Owner financing can also be a part of the BIL/CSBF strategy, which is the government loan program used by many SME owners to acquire a business.

A typical structure for financing a purchase when you’re buying a business in Canada is the down payment, debt financing, and the vendor take back/owner financing. When all three align properly you have the makings of a successful result in buying a business in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor for assistance in structuring the best deal and financing for your business purchase.

7 Park Avenue Financial - Canadian Business Acquisition 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/buying_business_canada_financing_purchase.html

Franchise Financing In Canada . Boring Or What? Franchisee Loan Info In Buying Franchises

Canadian Franchise Financing – Not Exciting .. But ….


Information on franchise financing in Canada. Implications of buying a franchise and the franchisee loan process.


Franchise financing in Canada. Boring... right? Well it might not be if in fact you're a franchisee looking for a loan when buying your franchise.

We're reminded at the same time of Sisyphus, of Greek mythology. He had to roll that boulder up the hill, requiring immense strength and endurance, only to be destined to see the rock fall down and to have to repeat the action in perpetuity. Anyway ... with the right info and contacts you certainly don't have to be a Sisyphus when it comes to franchise finance!

7 Park Avenue Financial - EXPERT FRANCHISE FINANCING



It makes sense that if the franchise that you have chose is in fact part of a successful chain that it will require a probable substantial investment, both in terms of equity as well as the franchisee loan. All businesses are founded with that combo of debt and owner equity.

The positive side of the story is that franchise financing is in fact available and generally viewed as a positive in nature that financing is in fact available. And a well known or reputable franchisor is in fact just the icing on the cake.

Typically the down payment required to open and fund a franchise tends to be anywhere from 10- 50% depending on the structure of the financing you require. While some permanent equity is a must it is to the benefit of yourself and the lender that you demonstrate some working capital and what we can call ' financial cushion ' in case things are off to a slow start. We're reminded of a saying by an old boss we had in the 80’s - he said he never met a forecast he didn’t like!

So what in fact is the franchise loan offering in Canada. Well it’s a combination of bank financing, specialized finance via a commercial finance firm, and then what we call a cobbled together approach of equipment, line of credit, etc.

Many franchisees, once established are considering cash advance financing, which in effect monetizes future sales which are then repaid over time as you generate new sales. They are done on a revolving and or term basis and typically have higher financing rates attached to them.

Most franchisees choose the BIL/CSBF program which is perfectly structured for franchise financing less than and up to 350,000$ with attractive borrowing and criteria features attached to it.

The essentials of any franchise financing requires a solid, preferably ' crisp ' business plan outlining your background, a financial forecast, and info on the franchisor and your chosen industry, whether it is a service or a product.

Typical debt to equity ratios apply , and you want to ensure that amount you borrow is repayable out of operating cash flow. Optimally you want to cover your loan payments, build equity, and of course draw a reasonable salary that you and your family can live on. The appeal to the franchisee is of course the proven business model offered by your franchisor that presents a reasonable, hopefully proven method of generating profits, cash and equity.

So, boring. Maybe, but not if you're on a search to properly finance a major business/career decision in your life. Speak to a trusted, credible and experienced Canadian business financing advisor on how you can access franchise financing 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/franchise_financing_franchisee_loan_buying.html

Can ABL Financing Be Your Business Finance Peace Of Mind ? Getting Comfortable With A Revolving Credit Facility

Is An Asset Based Line Of Credit For Your Firm . It May, and May Not Be!

Information on ABL Financing in Canada . Why an asset based revolving credit facility might be your business savior .


ABL financing, basically a business revolving credit facility, has the ability to provide a significant amount of ' peace of mind ' when it comes to the worries and challenges that confront business owners and financial managers.

And that doesnt matter whether you are a start up or a major Canadian corporation. And everything in between. Because that's who is using asset based lines of credit these days.

But is ABL finance right for your firm? Let’s discuss, and recap. Companies who consider an ABL facility find themselves constantly challenged by understanding what is happening to their cash flow.

These days you may, or may not have a current secured lender in place to handle those financing challenges we're talking about. One aspect of deciding whether to go the Asset based revolver route is often some sort of seasonality - we can call them ' bulges ' in your business.

That seasonality, those ' bulges ' drastically affects cash flow and income, which can fluctuate wildly in any company. The asset based line of credit allows you to generate cash flow during those bulge periods, while at the same time allowing you to keep your operating and debt service obligations up to date.

That's of course critical when you are wrestling with fluctuating working capital situations.

Timing of cash flows in business is paramount. The three things that almost always affect your timing in working capital and cash flow in business are receivables, inventory, and , on the other side of the balance sheet, payables.

Asset based lending via an ABL financing business line of credit often can provide the solutions when the door is closed at Canadian chartered banks for firms that don't meet bank criteria. It's a case of a business having a high potential for viability and growth, but has less than stellar income statements and ratios typically required by our banks in Canada.

So how does a company get the door open to financing when they have been locked out by more traditional solutions? The answer is an ABL revolving credit facility, focusing on assets that when properly monetized, can enhance the cash flow situation.

ABL therefore becomes a ' smoothing out' solution because you draw down on cash flow, daily, as needed, based on your assets and sales/receivables. It also can be used; by the way to assist in the financing of new fixed assets, or even buy a competitor .It's those assets that help the strategy work.

ABL financing works because it applies higher borrowing formulas to your business assets. Companies that are in service or non intensive capital industries will always be a bit challenged in an ABL revolving credit facility simply because the main asset monetized are only receivables.

Other challenges in getting a proper asset line of credit in place might be the type of inventory you carry, or any specialization attributed to your assets or industry.

So, right for every one. Perhaps not. But if you have A/R, inventory, receivables, purchase orders and are looking for a new way to monetize those assets ABL financing might be the business revolving credit facility for your firm. And peace of mind? As the commercial says ' Priceless'.

7 PARK AVENUE FINANCIAL IS AN EXPERT IN ABL 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/abl_financing_revolving_credit_facility_business.html

Golden Rules For Financing A Business In Canada . Working Capital and Debt Solutions .. That Make Sense !

Debt and Cash Flow Solutions And Tips For Canadian Business

Information on financing a business in Canada . What working capital and debt solutions make sense for your firm, and why .




Financing a business in Canada. A challenge? Let's just say that's an understatement when it comes to working capital, debt, and ongoing management and recognition of finance problems and opportunities.

Are there some ' Golden Rules' we could follow. We think so.

One of the golden rules of business finance is to ensure that you properly match short term debt and long term debt appropriately. Each of these two has its own benefits and potential disadvantages. Is one better than the other? Not really, it’s just that it’s a case of making adjustments and staying ' in tune ' with what needs are appropriate or required at the right time.

It certainly hasn’t escaped us that not only is it difficult when it comes to financing a business in Canada to manage internally, you of course have to stay in tune with what’s happening in the economy, your industry, and dare we say, politics! Talk about a full time job.

A lot of your financing will probably come from external financial solutions. They might include bank debt, working capital term loans, receivable finance, inventory finance, equipment leasing, and monetization of tax credits. However, you also generate cash internally, and you need to know how to measure that.

When you assess working capital or debt needs you need to be in a position to focus on cost, risk, and what that financing does to your balance sheet? All of those must be taken into consideration.

Also consider your current capital and debt structure and how your balance sheet will look after financing is completed. As an example, something to think about is that working capital and cash flow can be generated through monetization of assets - this doesnt really bring debt to the balance sheet, so you've achieved your goal without increasing debt.

On occasion it’s important to discuss any taxation impact on your financials with your accountant, as there are both positive and negative aspects to debt and tax.

If your firm is mature and operating efficiently you’re in a position to access all sorts of traditional financing. The other side of that is alternative finance, which works just as well but might be more costly on occasion - not always, but sometimes.

It's hard enough to access financing but choosing the right partner is a struggle in itself sometimes, ensuring that the funding source will be with you in tight markets and good times. Apparently those two fluctuate over time. The 2008 worldwide debacle caused many finance firms to disappear or implode, causing havoc among thousands of businesses in Canada, whether you were a start up or large corporation!

One solid GOLDEN RULE of business finance is to be proactive when it comes to access debt solutions and working capital. You might even have to make the tough decision around diluting equity when there it too much debt on your balance sheet. That’s a costly one.

A great GOLDEN RULE is to have a solid sense or understanding of how outside forces can affect your company's financial viability. If market conditions are continually volatile you clearly need to focus on longer term stable financial solutions.

Constantly stay on top of your cash flow planning , and if you want to understand what solutions are available for financing a business in Canada speak to a trusted, credible and experienced Canadian business financing advisor ,

7 PARK AVENUE FINANCIAL IS AN EXPERT IN CANADIAN BUSINESS 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/working_capital_financing_a_business_in_canada.html

Here’s Your 7 Objections To Equipment Lease Financing And Why You Just Might Be Wrong About Leasing Companies In Canada !

Canadian Business Financing With The Intelligent Use of Experience

Canadian Equipment Leasing – You’ve Waited Long Enough


Information on common objections and misunderstanding regarding equipment lease financing and leasing companies in Canada .


Equipment lease financing and leasing companies in Canada. For almost too long that we remember we've heard objections from Canadian business owners and financial managers around whey they don't use or recognize the benefits of lease finance.

One of our old mentors in this segment of Canadian finance actually tabled these objections in a work he published. We thought we would dissect those objections with an emphasis on the Canadian leasing business, as his comments originally were general in nature; by we're Canadian, eh?

Objection # 1- Cash is king, and you like to pay cash and have pride in ownership. Well as our mentor noted, lease payments are made in cash also, it’s just that we've always felt that a smaller outlay of cash is better than a larger one in business. And if you've got ' pride of ownership ' in a depreciating asset, well .. that's your right!


Objection # 2- Lease pricing. The reality is that lease pricing in Canada is credit driven and that your rates are commensurate with your overall credit quality. In fact if you have bank quality financials you can actually receive lower rates than a bank term loan, certainly for larger transactions of good credit quality. We've been on the record that the overall structure and flexibility offered by leasing companies often far exceeds any rate differential in lease finance.

Objection # 3- You prefer loans. Well that may well be, but you are of course adding debt to the balance sheet under that scenario. Oh and by the way, when you choose a capital lease full payout scenario you are very close if not at the loan scenario. The true finance lease is essentially a loan for the full amount of the asset.

Objection # 4- You have had what our mentor called a ' bad experience '. Our point on this one is that you also may have a bad experience with a lawyer, accountant, or business or personal financial advisor. The reality is that you need to focus on partnering with a firm or individual that you trust when it comes to equipment lease financing in Canada. That goes for choosing a supplier, banker, etc. It's only common sense.

Objection # 5- Hell or high water. What? A Hell or high water clause in commercial leasing indicates that you are obligated to pay the full amount of all remaining payments in your transaction .What that, you want to change that clause. The reality is that with the proper negotiation a good lessor or leasing advisor has the ability to include in your transaction features that make sense to you when it comes to cancellation and pre-payment.

Objection # 6 - the proverbial down payment. You don't like it. Down payments with good credit quality are minimal or non existent when it comes to equipment lease financing as well as choosing the proper lessor.

Objection # 7 - The lockdown . Many clients tell us that are unable to extricate themselves from their current lease transaction in order to move on to a more appropriate one. A variety of tactics can be utilized to refinance and move on .They include at the very lease refinancing the existing lease combined with the new one.

Most lessees, your firm probably included feel their company and industry is unique. That may well be true, but ensure you speak to a trusted, credible and experienced Canadian business financing advisor. You may well find those 7 objections to leasing companies and equipment lease financing in Canada are somewhat... unfounded!

7 PARK AVENUE FINANCIAL IS AN EXPERT IN CANADIAN EQUIPMENT LEASING



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_lease_financing_leasing_companies.html