Don’t Utilize Receivable Finance .. Until You’re Read This . Mastering Tricks Of The Trade In Business AR Financing

How Much Do You Really Know About A/R Financing In Canada?

Information on understanding how business ar financing works and how receivable finance is priced .





Receivable finance in Canada. The business battlefield is littered with firms who either don't understand business AR financing from a pricing or a mechanics perspective, or, heaven forbid, have hooked themselves up with the wrong partner firm.

It's that proverbial fork in the road, and let's assumes the Canadian business owner or financial manager has taken it - he or she has opted to solve cash flow problems that have hampered growth and entered into an invoice financing facility.

But were the costs of the facility properly addressed, and are you working with the right lender ?Those two issues alone , when properly solved, or addressed, give you working capital and cash flow piece of mind.

You can make a huge mistake in receivable finance in Canada by not taking a bit of time to, as we say ' peel back the onion ' and ensure you understand that cash costs and mechanics of business AR financing.

So what issues should you consider when picking the right finance firm for your AR financing? Just like any other business or consumer contract you might look at you'll find that you need to address ' the fine print ', which typically isn’t the favorite thing we like to do, right?

Some of those miscellaneous charges can add up- for example some finance firms might want you to guarantee a minimum amount of financing business during any period - that might be a month, quarter, etc. A fee might be assessed if you have lower turnover.

The actual ' interest ' or financing charge is a subject of great discussion when we talk to clients about A/R finance. In general terms the amount of financing you do, the quality of your customer base, and to a certain degree the overall financial strength of your firm play a key role in pricing.

But business owners will find that the industry does in fact place a huge amount of importance on your A/R portfolio itself, not your own firms general credit worthiness. And that’s a good thing.

Also watch for the miscellaneous items that can add up, they include wire transfer charges, service fees, admin fees, - OMG it's almost as if we're banking in Canada !

If you're dealing with the right firm you'll find that you can finance all your Canadian and U.S. receivables without any issue. We do point out to clients though that if your receivables have a foreign component you may require some sort of credit insurance - which by the way isn’t a bad thing anyway.

In a perfect world you want to be able to move either to another A/R finance firm, or to a bank or other lender without penalty. Customers have a bit more negotiating power than they know when addressing this issue, and it should clearly be discussed up front at the time of entering into the facility.

Finally, make sure you understand the differences between a bank facility, a working capital term loan, and invoice financing, aka ' Receivable Finance '. The characteristics of a business AR financing facility are different - it's not a loan, it’s not a collateralized facility such as with a bank, it’s simply the ongoing sale of your invoice sales as you generate them, with the option of financing which sales you wish when you wish. It's simple as that.

Oh and by the way, we’re all for minding our own business, so be sure to consider a facility that allows you to bill and collect your own a/r without notification to suppliers, clients , etc . It’s our absolute recommended facility .

So is this method of Canadian business financing the answer to your current and future cash flow problems? As we said, it can be, if you take some time to master some of those tricks of the trade.

Speak to a trusted, credible and experienced Canadian business financing advisor today on how you can best understand and utilized business AR financing.





7 PARK AVENUE FINANCIAL
Canadian A/R Business Financing Expertise






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_business_ar_financing.html

Looking For Help For A Business Financing Acquisition In Canada ? Managing Mergers With Finance Solutions That Make Sense.

Looking for Merger or Acquisition Financing?

Information on financing mergers and acquisition situations in Canada . M&A business finance solutions.


Financing an acquisition in Canada. Or is it a Merger that needs a solid business financing solution? There are probably a good handful of technical or financial differences around the differences between a merger and an acquisition, and we of course all know it’s rare that you would have a perfect alignment of the planets - two companies that have identical business, equal asset strength, and income statements that are perfectly complimentary. That's the perfect world.

But Canadian business owners know it's not a perfect world and that such ' perfect storm' scenarios exist.

We can also make the case that years ago mergers and acquisitions were financed on the basis of asset values. These days it's safe to say there are lot of goodwill and analysis of future cash flows that play a large part in the total financing equation.

When we meet clients and talk to them about their M&A needs a few basic reasons always emerge as to some essential deal basics? In some cases the firm being acquired might be in somewhat of a 'death spiral ' due to mismanagement or its inability to wrestle with present economics. Heaven forbid, but we also even see crisis type situations.

Other scenarios that are part of the M&A profile includes owners ' cashing in' , family business scenarios, and growth opportunities that can't be realized by a firm without additional help, or financing.

So what do you need to consider when it comes to financing that acquisition or merger? It's important to understand both your internal and external resources, and to ensure you understand the different options you might need to complete an appropriate financing. We say ' appropriate ' because we often seen mergers and acquisition financing that have been the solution, but far from the right one.

This is exactly the right time you should be looking at your team - which might include a Canadian business financing advisor, your lawyer, accountant, etc. Here's where issues that might seem over technical to non financial types can hopefully be clarified in a common sense manner. They might include goodwill valuation, deprecation policies, asset valuations, etc.

Although you need financing for the merger it’s also important to understand what the borrowing capabilities will be for the new entity, and what form they might take. Solutions such as asset based lending, the gov’t CSBF loan, subordinated debt, and vendor take backs can all play a key part in a successful acquisition financing. It's precisely at this point that issues such as leverage can make or break ongoing business success. Putting one ' over - borrowed' company together with another leads to... well... you know... business failure.

For help in managing thru and completing an acquisition or merger speak to a trusted, credible and experienced Canadian business financing advisor.





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/financing_acquisition_finance_mergers_business.html

This Just In! Get Rid Of Franchise Finance Fear Once And For All . Financing Franchising Opportunity In Canada

Financing A Franchise In Canada – Don’t let fear of the unknown stop you now!

Information on franchise finance in Canada . How the Franchisee can overcome fear of financing franchising opportunity with the right info and strategy .




Franchise finance in Canada. The good news is that when it comes to financing franchising opportunity in Canada there are some proven methods for removing the ' fear ' or concern about not being approved for the purchase finance of your new business.

At the core of every successful franchise finance transaction in Canada is a solid business plan. And although you use this plan for financing the reality of it is that it has a lot of other value also. Most franchisors that have credible organizations in Canada, or who are U.S. owned can in fact provide you with some solid general assistance in the area of what should be in that plan .

Also, don't be fazed about the cost or time involved in putting together such a plan if you don't have a financial background. The cost of a crisp decent plan is in fact quite moderate and one can be completed in a relatively short period of time.

We find a lot of prospective franchisees have talked a lot about buying the franchise, and how much money they will make, while at the same time haven’t discussed the franchisors experience in their network of units in Canada when it comes to financing their stores. Oh, and by the way, we're even more surprised by many franchisors who don’t qualify their franchisees with respect to general credit worthiness, or net worth or business experience, but that’s another topic for another day. It would appear to us that if you're a franchisor you're only as strong as your weakest link!

Many franchisees in Canada have a fear of financing approval simply because they don't understand their options. There are only 4 options in Canada, and if you arent aware of all of them then we can certainly commiserate with you when it comes to being doubtful for financing success.

Oh, and what about those 4 methods. They are as follows:

You can self fund the entire transaction - not recommended, but if you can we're jealous!

You can use the vehicle in which thousands of franchises are financed - the Canadian government BIL/CSBF program

You can fund via a specialized commercial finance firm that specializes solely in financing franchising opportunities with well known franchisors

You can use a combination of any of the above scenarios and compliment that with equipment financing, merchant financing, or a traditional working capital term loan.

The key to a successful transaction is pretty simple, and it will remove all your fears if done properly. It’s to understand the level of personal financial commitment that you can bring to the table, along with planning venture with a proper business plan, and finally, soliciting the help of an experienced, trusted and credible Canadian business financing advisor who can assist you with the steps involved.




7 PARK AVENUE FINANCIAL

CANADIAN FRANCHISE FINANCING EXPERTISE





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_finance_financing_franchising.html

Is ABL Financing The Radical Change You Need In An Asset Based Credit Line For Your Business

The Canadian Asset Based Business Credit Line


Information on ABL financing in Canada . Why is the asset based business credit line a game changer for Canadian business .




ABL Financing is a ' game changer '. Let's take a look at some of the reasons why and the background around the business asset based credit facility.

If you're the financial manager or business owner of any sized business in Canada it would appear you're more often than not searching for working capital. The assets in your business can offer that flexibility when they are turned into a business line of credit facility that the financial folks term an ' ABL '.

The good news is that more and more firms in Canada, everyday, discover that the flexibility provided by this financing arrangement. When Canadian firms can't find a suitable traditional bank lending arrangement for working capital needs ABL emerges as a solid solution of choice.


All your firm needs with respect to qualifying for such a facility is any mix of accounts receivables, inventories, equipment or real estate. A typical ABL facility is a combo of 2 or more of these asset categories. The asset based credit line in fact gives the business increased borrowing flexibility versus a cash flow based solution from, for example, a bank .

Why is that? It couldn’t be simpler, in that assets such as receivable and inventory are margined at higher values than they are with the Canadian chartered bank offering. Again, its collateral, not ratios and covenants that count when it comes to an asset based credit line.

Is there a quick way for the Canadian business owner to rationalize a move to ABL? While no financing methods is always perfect , all the time the appeal of ABL is that it does not really focus on covenants - really the only thing that drives borrowing is the overall liquidity of your assets, whether you are growing or not.

Another key positive is that an asset based line of credit can pretty well increase automatically as your business grows - That’s because your assets would tend to grow at the same time.

We've said no single method of business working capital financing is the panacea of perfection. So business owners should realize that Asset based credit typically involves more month end reporting on those assets.

And while most asset based credit lines cost more than bank financing they can, on occasion be actually cheaper.

The ABL market in Canada consists of a fragmented bunch of firms, some niche based and Canadian owned, while others are divisions or subsidiaries of U.S. banks and mega corporations. The industry services companies of all size, from start ups to major corporations. It should come as no surprise that some of the largest and well known corporations in Canada and the U.S. use ABL financing so don't feel you are doing missionary work in business financing! ABL is here and it just might be the radical ' game changer ' when it comes to financing your firm.

Speak to a trusted, credible and experienced Canadian business financing advisor on how asset based credit lines can fund your daily operations, acquisitions, and growth.







7 PARK AVENUE FINANCIAL
IS AN EXPERT IN CANADIAN ASSET BASED
LINES OF CREDIT




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_asset_based_credit_line_business.html

Is This The Golden Age Of Business Capital In Canada? Financing And Funding Your Company Credit Needs

Canadian Business Financing


Information on accessing business capital in Canada . What types of credit financing and funding does your firm need and where do you find solutions that work .




Business capital in Canada. Is this in fact the ' GOLDEN AGE ' for Canadian companies seeking business credit and funding. We're not 100% sure ourselves ; we read that rates are low and capital is abundant - while at the same time clients tell us it's never been as tough to satisfy lender criteria or access innovative capital solutions.

The reality is that many business owners who arent in the Financial Post top 1000 in Canada spend a lot of their time ' finding ' financing .The goal seems kind of easy - find enough financing for your business at a cost that makes sense and gives you the amount of risk that the Canadian business owner and financial manager are prepared to live with.

That ' risk ' of course comes with the fact that too much debt, and might we add the wrong kind of debt and cripple a firm.

At the end of the day we can maintain there are essentially 5 ways to finance your firm - two of them, raising equity and issuing a bond or debenture are NOT the subject today. What we're talking about is innovative ways of supplier financing, lease and asset financing, and business lines of credit from banks or independent commercial finance companies.

Many businesses don’t fully realize of focus on the fact that supplier credit is in fact a key driver of your firm’s cash flow. Just negotiating long terms with your key vendors allows you to generate positive cash flow - That’s a fine line though as you ultimately need the support of suppliers. The last thing you want is for them to turn the ' credit tap ' off.

Yes, you can buy the fixed assets you need for your firm - but over 80% of companies in Canada in fact lease their assets. Whether its trucks, cars, computers, telecom equipt and heavy machinery the business owner has the option of leasing assets for anywhere from, typically, 2-5 years. That allows you to use up the ' useful life' of your equipment and match it to cash outflow vis a vis the payments.

Accounting has specific rules around the type of leasing arrangements that you enter into, primarily revolving around whether you are entering into a capital lease ' to own', or an operating lease ' to use '.

Bank and commercial credit business capital in Canada supply businesses with revolving lines of business credit and funding. They allow your firm to draw down and pay back up, based on pre set limits, the amount of funding you need for your business. The security of course is the assets of the business.

As a business owner you have to choose the right amount of debt and equity. The finance guys call that your ' capital structure’. Is there a perfect mix or ratio for that? The answer is... not really; it depends on the risk, flexibility, and amount of control you have in any particular financing.

So, is it the Golden Age of business borrowing. Our opinion is... not really. But you do have options and there are probably many innovative ways to finance your firm you have not contemplated. These include receivable finance, inventory financing, and asset based lines of credit, securitization, lease financing, and tax credit monetization. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your business capital and funding needs in Canada.



7 PARK AVENUE FINANCIAL
Canadian Business Financing Expertise




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_capital_credit_funding_canada.html

Be An Unlearner ! Lease Finance Sources In Canada . Choosing Equipment Leasing Companies

Equipment Leasing In Canada


Information on finding lease finance solutions in Canada . Which equipment leasing companies suit your needs?




Lease finance in Canada. Isn't it perhaps time to become an ' Unlearner '? That's the term one American icon once used to reiterate the fact that maybe we need to change the way we're thinking; and when it comes to what you know or might not know about equipment leasing companies in the Canadian marketplace that just might be some sound advice.

Your firms ability to identify who to deal with and when , depending on your leasing needs will ultimately make it a winning scenario for your asset acquisitions via Canada's most popular method of equipment finance.

While the ' lay of the land ' might in fact seem complicated the reality is that you simply need to focus on the fact that its all about getting the right lease structure, ensuring that the rates and payments meet your overall needs based on cash flow and your firms credit quality .

The old term ' size counts ' is somewhat still appropriate in lease finance in Canada. By that we simply mean that ultimately both the type of asset and size of your transaction will really chart the course for which lessor makes the most sense for your transaction.

We can say in a very straightforward manner that the overall ' story ' your company presents relative to financial strength, the quality of your balance sheet and your years in business are really the key drivers in any lease approval .

However, that eliminates thousands of firms in Canada who might not necessarily have those pristine balance sheets and income statements we've just referred to. Then what?

Well, don’t despair , because the reality is that the term ' structuring ' comes in play at this point, and those thousands of firms who might think they cant get financed in fact are solid candidates from certain firms in the Canadian lease finance industry . Yes there might be less interest in your deal from certain firms, but many others are eager to step to the table and structure a transaction that's a win for both parties.

But how do you in fact find equipment leasing companies in Canada - and we mean the right ones, not the wrong ones. Of course larger corporations who are better known can issues tenders and RFP’s, but that doesnt make sense for the SME sector in Canada.

This then is the time to get a short education on the make up of the lease industry in Canada. Essentially it's broken down into three segments, small, mid and big ticket. We advise clients they can spend a lot of time soliciting lease financing in the wrong market segment. And within that market each lessor has their own views on credit quality and the type of asset they will finance.

Small ticket transactions in Canada, as well as the U.S. typically are under 25k and at this point it’s all about quick credit approval, simple documentation, (often a one page lease) and a rate that commensurate with your credit quality.

Independent finance firms make up the majority of the lease financing market in Canada, but there are many captive finance firms that provide financing for their parent companies products. Banks have again resumed their strong interest in lease financing - rates are low but required deal sizes are much larger ; and when it comes to credit quality with a bank lessor lets just say ' you better have it '!

An easy way to match your needs with the perfect lessor is to solicit the help of a trusted, credible and experienced Canadian business financing advisor who understands the players, the market, and, most importantly , your needs.




7 PARK AVENUE FINANCIAL
EXPERT CANADIAN LEASE 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/lease_finance_equipment_leasing_companies_canada.html

Village Elder Advice On Receivable Finance . How Is Business Invoice Financing Positioned In Canada ?

Canadian A/R Financing

Information on receivable finance in Canada . Business Invoice Financing Works if you know how it’s priced and why it works.



Receivable Finance in Canada. Wouldn't it be refreshing to get some of that ' VILLAGE ELDER ' advice on the subject of business invoice financing in Canada. We're told that type of advice has a connotation of authority and wisdom from someone qualified to provide such counsel.


There are a number of significant benefits when it domes to receivables financing in Canada. It certainly is becoming more of a main stream alternative everyday in Canada, with thousands of firms considering and using this type of business finance.

A/R financing is the ultimate in what we could call ' short term financing’. And what do we mean by ' short term '. Well it pretty well means ' daily ' as funds are typically advance the day that you generate an invoice. As we have stated in the past a properly constructed facility gives you the option of submitting invoice sales, or not submitting them. Its classic ' pay for what you use ' financing. The bottom line, you're satisfying any immediate needs of your business, which includes of course payroll, supplier obligations, term loan payments, etc.

Most factoring or invoice financing firms tout the fact that you also don't have to make a significant investment in accounts receivable credit and collection given that the financing firm takes over the collection of the account. That allows you to focus on running and growing your company of course.

In our opinion that probably is a good thing, but truth be told our recommended facility is one in which you retain control over your invoices, and your clients. We think, if they had the choice, that the majority of clients in Canada would say that want to be front and center in front of their customers, without a third party . That’s why time and time again we find ourselves recommending confidential receivable finance, allowing you the business owner and managers to bill and collect your own A/R.

If there is one obstacle to customers embracing business invoice financing it's definitely a lack of understanding around cost and mechanics. What the business owner has to understand is how to be able to properly assess the cost of borrowing.

Let’s use a quick example; let’s say you're a mfr. and that typically A/R in your industry is collected din 50 days. Let's further assume that your firms days sales outstanding is closer to 65 days .That of course means that you're typically carrying 15 days of excess receivable investment. Let's use approximately 100k as the firm’s daily sales. That means that you have over 1 and 1/2 Million dollars in what we could call excess A/R - even at bank rates of say 5% that means you have a total annual extra financing costs of over $ 80,000. That, on top of the 1.5 Million $ you are already over invested in makes almost 1.5Million in lost opportunity cost!

Our example dramatizes the healthy impact your A/R has on your cash flow if you're not focusing and financing it properly. A/R, next to any cash you have in the bank for your business is your closest liquid asset. Consider receivable finance as an effective way to monetize that asset. Speak to a trusted, credible and experienced Canadian business financing advisor on how to properly monetize business invoice financing.




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.