SBL Financing . Stop Worrying And Learn To Love The Canadian Government Small Business Loan

Canadian Business Finance solutions via SBL loans


Information on SBL government small business loan financing in Canada . Benefits and Overview of program requirements



The Government small business loan in Canada - AKA ' SBL FINANCING. What a great way to stop worrying about how you'll finance some of those key business needs when you're a start up or SME sector company in Canada .

Worrying about business financing surely ranks right up there when it comes to business owners and financial managers looking for the right type of finance for their firms.

The solution in fact might be right in front of you, via the Federal government (INDUSTRY CANADA) small business loan program. You're able to access financing up to 500k if you can demonstrate you qualify, have the right documentation, and know how to fast track an approval without some of the frustration experienced by many Canadian business owners and financial managers.

Is the SBL loan a good option for your business? We'll let you decide but we're pretty sure we think you'll find that when credit is tight and other forms of finance are unattainable you may have just found the perfect solution. It's simply a case of knowing the rules, and as we've said in the past, creating a short roadmap to business finance success.

So when does some of that ' worrying ' come in? It usually happens when you don’t have some key knowledge or professional assistance in the area of SBL financing. Having an advisor assist you can play an important role in your overall business financing success. It simply that role that assists you in ensuring you qualify and can access for the Government small business loan in Canada. And if you are working with the right advisor services will only have to be paid for on Success; talk about a win / win situation!

So how can you validate who is or is not an expert in SBL finance. You want to ensure you are working with a seasoned advisor who has raised funding for business and can demonstrate that track record. So validate their credentials, experience and save yourself a lot of time and definitely a bit of money. You actually are fully entitled to ask the advisor for references from the SBL lending community.

So what then is the value of such an advisor? First of all it's time saving, but secondly its more of a guarantee of success based on the advisors knowledge of what makes an application successful.

In our experience there is a lot of myth or misinformation around the program. Here's the truth around some of those myths and misinformed issues:

Everyone business person or company legally allowed to borrow money in Canada is theoretically eligible for the program. You do have to have reasonable net worth, credit status and experience in business.

All business sizes are not eligible for the program; in fact you have to have projected or real revenues under 5 Million dollars.

Real estate is in fact eligible for the program max, it 500k. Other assets such as equipment and leaseholds top out at 350,000.00$ max under the program.

So, a bottom line today? It's simply ' stop worrying' and spend some time to get the real ' skinny ' on SBL financing under the government small business loan in Canada . Speak to a trusted, credible and experienced Canadian business financing advisor on making the program work for you.

7 PARK AVENUE FINANCIAL
CANADIAN SBL LOAN FINANCE 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/sbl_financing_government_small_business_loan.html

Looking For Business Purchase Financing In Canada ?. Buying An Existing Company? Finance and Buy Tips .

Benefits And Tips On Canadian Acquisition Financing

Information on business purchase financing in Canada . Buying an existing company ? Tips on how to finance and buy a business.


Business purchase financing. When you or your firm has made the decision about buying an existing business in Canada you need some solid information around how to finance your transaction.

Why buy a business in the first place. Many clients we speak to are fortunate enough to have what we might call an ' inside track' on a company or business that would accept a favorable offer based on current situation.

The obvious benefits around our ability to buy a business that is established already is simply the fact that there’s a revenue stream, a client base, and assets and location that are already in place . That certainly beats a start up scenario and all the work and challenges that go with that.

Also, business purchase financing also has the ability to structure a financing deal with the owner remaining in a subordinate position via a VTB, i.e. a vendor take back. Naturally the skills and expertise of the owner and current management team might also have a significant value to your own efforts to grow the business, at lease for an interim period.

Is it easier to arrange funding for an established business versus an existing business? There's never a clear answer to that one, but many people do believe your chances of success are much higher when you buy an established concern; and if you're a lender looking at a transaction such as this it also means you're more positive than negative, wouldn't one think?

Naturally cash flows and profits of an existing business are positive in the context that you can demonstrate immediate cash flows and profits to repay loan financing. In some cases you might be purchasing a franchise and you will need the support of the franchisor to make that acquisition. Once again the ' branding ' and ' reputation' around that franchise is clearly positive as opposed to negative.

Valuation is a challenge when it comes to both purchase and financing when buying a business. A higher valuation will mean you might have to finance a goodwill component, which is difficult in an asset based transaction. On the other side of the coin we meet clients who are interested in buying a distressed business that has been trending down - valuation is cheap and they believe they can engineer a turnaround. Easier said than done sometimes.

Valuations on the business can be supplied by the owner, or you can arrange your own through a qualified advisor or appraiser. That's particularly important when it comes to an asset based business.

Key issues to consider in the valuation and financing of the business are quality of the financials, revenue trends, cash flow generation - i.e. does the business use cash or throw off cash? ( The latter is better!) You or your accountant and advisor need to ' normalize ' the financials, making the assumptions on how the business costs will look after you take ownership.

In Canada businesses can be financed with term loans, asset based lending, franchise financing if applicable, and even the Government Small Business Loan if its a smaller transaction under 350K.

Speak to a trusted, credible and experienced Canadian business financing advisor on how to properly structure and complete buying a business in Canada.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS PURCHASE 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_purchase_financing_buying_existing_buy.html

Do You Like Easy ? Leasing Company Solutions In Canada For Your Capital Lease Asset And Operating Needs

Who Doesn’t Want Easy When It Comes To Asset Finance !


Information on leasing in Canada . Why Canadian business chooses the benefits of capital and operating structures for lease assets in Canada .



Easy. Leasing. What business owner or financial manager doesnt like easy , and when it comes to capital or operating lease assets that's exactly what is happening these days.

It couldn’t be any more basic; it’s you, your lessor, and the use or ownership of an asset. The majority of Canadian businesses prefer what's known as a capital lease, aka ' lease to own ' , The industry sometimes makes this a bit confusing as other terms for this transaction include ' financial lease ' , ' full payout lease' and ' finance lease '.

The bottom line, in that type of transaction you're simply signifying your choice of taking ownership at the end of the leasing term, of the asset or assets in question.

Why then do thousands of businesses in Canada, in fact almost 80%, so it would appear we're probably in the millions, choose the lease of assets as their Canadian business financing mechanism of choice .?

When you think of it, it really comes down to 4 basic reasons. First of all there is the necessity to acquire assets to run their business that they might otherwise not be able to purchase outright. Or perhaps they don't qualify for a bank term loan,

The other reason is termed ' risk shifting ' as your lessor shares the risk of ownership during the lease term.

Thirdly we have tax and accounting benefits that accrue to the Canadian business owner.

The fourth reason. IT'S EASY!!!! ... and convenient.

Almost all asset classes can be financed in Canada , but a great example of 'Easy 'when it comes to financing your business assets is computers , software and tech assets in general.

What business owner today wouldn’t be reluctant to lay out huge sums of cash when it comes to both cost as well as the constantly changing technologies of the tech world?

In fact that very subject, technology asset finance is why thousands of firms opt for the other type of lease available in Canada. That’s the ' OPERATING LEASE ‘and it’s simply a lease that can be renewed, extended, or upgraded during the lease term. That ability to make lower lease payments for only using and then returning the asset has a lot of appeal to chief information office in medium size or larger corporations.


Clearly there is an element of ' pride of ownership ' when it comes to fixed assets for your company. But it’s a changing world, and if you can achieve use and profits of the asset in an economical fashion its clear that leasing is probably for you.

Various techniques can be used when it comes to figuring out the ' lease vs. buy ' conundrum .Just make sure you use an apples to apples comparison tool, and that you understand your cost of capital and the real interest rate you are being offered.

So, ‘EASY’ when it comes to lease assets. You bet. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital and operating leasing needs.

7 PARK AVENUE FINANCIAL
CANADIAN LEASING AND ASSET FINANCE 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/leasing_lease_assets_capital_operating.html

Surprised ? Here’s The # 1 Enemy of Business Cash Flow and Working Capital . You Shouldn’t Be!

Here’s A Clear Picture Of Your Cash Flow Needs And Solutions

Information on business cash flow and working capital financing in Canada . A strategic overview of what hurts and helps Canadian business owners when it comes to financing their company .


A business cash flow killer. Enemy # 1 when it comes to working capital for Canadian business?

Are you ready? Hopefully it won't be a surprise, but the number one killer of cash flow and working capital for Canadian business owners and financial managers is: Sales!

While most ' experts' say that its poor management that creates business failure we are pretty sure we can make a case that it’s the poorly timed financing of cash flow that comes a very close second! That goes, by the way, for a start up as well as established medium to large corporations.

The reality is that you need to understand your sales cycle and how it impacts cash flow; at the same time you need some sort of ' road map ' to business financing success. So whether its equity or debt financing you have to realistically and creatively address your cash and working capital needs.

Let's examine some ' real world " (that’s the world most of us toil in everyday) solutions to measuring and generating capital for your business.

So let’s get back to that enemy, which you probably always thought of as your friend: Sales revenue! In reality that sales revenue is a huge consumer of cash, because there's a whole series of steps that go ahead of generating that sale and collecting your receivables.

So what is that whole sales or cash flow cycle? Its the time and dollars that are spent on marketing, ordering products and services, making and delivering those products and services, invoicing them, WAITING... yes WAITING .. And then, voila! payment from your client . In most companies in Canada that can take anywhere from 30 - 100 days, and we can assure you most firms fall closer to 100 days than 30.

As you are on that journey to deliver your product and service you are spending money, and waiting, all along the way.

So how does the Canadian business owner / manager help stifle the cash flow enemy? One immediate quick solution you won’t like is to reduce sales revenue and focus totally on collections. You'll be business cash flow perfect but stomped out of business by your competitors, who are growing sales and employing solid cash flow financing methods.

The better solution - develop good financing and controls throughout your sales cycle , understand your cash flow metrics, and get creative with alternative methods of sales financing .

You can actually generate cash throughout your sales cycle by employing solid Canadian business financing techniques. They include bank lines of credit, receivable finance, offering customer financing solutions via a qualified third party, employing supply chain finance strategies, and turning your company into an immediate cash flow machine with asset based business lines of credit.

So, sales and revenue growth. The enemy? Certainly not the case if you have some solid controls and solutions in place. Speak to a trusted, credible and experienced Canadian business financing advisor on working capital solutions for your business.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS CASH FLOW 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_cash_flow_working_capital.html

Make Equipment Leasing Your Asset Financing Choice. Liquidity 101 With Lease Finance In Canada

Canadian Equipment Leasing Solutions . Right Time? Right Now!

Information on equipment leasing in Canada . Reasons why lease finance is the business owners asset financing strategy of choice.


Equipment leasing in Canada. As a business owner or manager you prefer to maintain or enhance liquidity, as opposed to cash outflow. Inflow is good, and that’s why asset financing via lease finance continues to be Canadian business's method of choice for financing assets.

More sophisticated and larger companies spend a lot of time on areas such as ' cost of capital ' and equity versus debt scenarios. The SME business owner in Canada, probably, on the other hand just wants to know that he or she is conserving cash when it comes to fixed asset financing. It's as basic as that.

While some analysis by either segment of business in Canada (smaller firms / larger companies) may show that a lease might have a higher financing rate as opposed to a loan or cash acquisition the focus preference of most is pretty simple - extra cash flow!

You certainly don't have to be a sophisticated financial analyst used by the larger corporations to grasp the fact that the extra cash flow and working capital you save by making a lease payment over time can be reinvested in your company to operate and grow your business. So, yes, if your bank line is at 6% and your lease rate is at 8%, as an example because your company can use funds not spent to maintain cash liquidity.

A typical lease payment in Canada has one or two payments in advance, sometimes called a ' down payment ‘, or ' security deposit ‘. A loan scenario might easily involve a 10 - 20% deposit, while at the same time having potential negative tax implications for your firm.

And while yes of course it’s all about ' cash ' being ' king’ other aspects such as a longer term and residual lease structures also make asset financing via lease finance preferable.

Private, non public companies need to always maintain a strong focus on their overall capital structure, but they don’t really have the same focus as public companies who are generally obsessed with debt to equity ratios because of their public persona and shareholder concerns.

We must also never forget that some companies simply can’t obtain proper asset financing because of their overall credit situation. That's where lease structuring comes in, and more often than not a transaction can be structured with some creative solution that ultimately leads to financing and credit approval.

It's no secret that over 80% of North American firms (we guess that includes Canada!) utilize equipment leasing for their business needs. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your lease structure needs.





7 PARK AVENUE FINANCIAL

CANADIAN LEASE 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/equipment_leasing_asset_financing_lease_finance.html

Why Is AR Finance So Inexpensive In Canada . Factor Receivable Funding For Your Business - Not What You Thought!

The Devil Is In The Details Apparently When It Comes To Financing Your A/R In Canada


Information on AR Finance in Canada . How To Truly Understand Cost Of Factor Receivable Funding For Your Business.


Are you nuts? AR Finance... inexpensive? That was the reaction of one client when it came to discussing factor receivable funding in Canada for business.

The reality is that receivable financing in Canada is probably one of the most misunderstood areas of business financing when it comes to benefits, mechanics, and, as we said, cost.

We'll come to the issue of ' cost ' in a bit - let’s make sure we have got the benefits and mechanics under our belts first! AR Finance is Canada is, simply speaking, flexibility for short term working capital financing. It's mechanics, though relatively simple, provides Canadian business owners and financial managers with a large measure of cash flow and working capital when it comes to new orders and contracts, increased need for working capital as inventories and receivables grow, and , simply speaking, keeping your daily operations running smoothly.


It's of course your A/R that provides the backbone behind the capital that you need, allowing you the leisure of actually, as they say, working on your business, not in your business... and boy is that a difference as we all know.

One key benefit either overlooked or misunderstood is simply the fact that your factor receivable funding facility has the ability to grow as your business revenues grow.

And don’t forget , the key concept of AR finance in Canada is that your company isn’t taking on debt when you finance your receivables ; you're simply monetizing one the most key assets of any business, your receivables. A good analogy is that you are basically turning a Business To Business model into a cash business. As you sell, and invoice you receive cash the same day. Your facility of course fluctuates exactly similar to a business credit line, so factor receivable funding for your business goes up and down every day, just like a bank line of credit. You are of course paying for only what you use.

Many miscellaneous benefits accrue to your firm when you consider this method of receivable financing. They include:

- Ability to only draw down the amount of financing you need - It's a pay per use method for working capital

- Same day financing of your sales revenue

- Typical advances for A/R funding are 90% of your receivables

- A good facility will have per diem pricing

- Little or no emphasis on personal guarantees

- All North American receivables can be financed, and foreign A/R is financed via credit insurance which can be easily arranged


So, back to our client who said' ARE YOU NUTS ‘? As it pertains to AR costs of course!

Your business should be focused on profit and turnover. By having a constant supply of working capital and access to cash flow you have the ability to increase sales and profits. Many firms also have the ability to achieve overhead reduction as a competent AR partner firm performs these services for you.

Many clients we have spoken to have had to turn away sales volumes and large contracts because of financing inability .We see that all the time. With AR Finance you are now in a position to basically accept unlimited orders and contracts.

Do you believe you could enhance relationships with key suppliers by paying those cash or taking their offered discount? We sure think you could, and that’s a key benefit of factor receivable funding. That type of business activity also enhances your overall firm’s commercial credit rating, which should be important to you in the long run.

Got a lot of time on your hands as you run your business? We sure don’t, and you'll find that you'll be focusing a lot less on seeking external financing if you've got a solid A/R funding business solution in place.

So expensive? We let clients decide. But if you want to see how the true cost of AR finance fits into your business speak to a trusted, credible and experienced Canadian business financing advisor today.

7 PARK AVENUE FINANCIAL
CANADIAN A/R 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.webpage66.com/ar_finance_factor_receivable_funding_business.html

A SR&ED Bridge Loan . Never Thought Financing Your SRED Tax Credit Claim In Canada Possible? Here’s How .

See How Easily Your SRED ( SR&ED) Claim Can Be Financed

Information on SRED financing in Canada. A SR&ED bridge loan for your refundable tax credit claim can be monetized for immediate cash flow and working capital .

SRED. aka ' SR&ED'. The dust seems to have finally settled on the SRED Tax credit claim program in Canada. To put it mildly it was a ‘winter of discontent ‘by all parties.

That means a couple of things of course, one of which is that it's ( more or less ) back to business as usual for the thousands of Canadian firms who utilize the SR&ED refundable tax credit program ; it also means that if you haven’t previously then you can also finance that claim . If only for one reason - immediate cash flow!

Sred financing , and yes , even the SRED program itself seemed to quietly slow down last year as the federal government took a hard look at the program . That same program was a critical part of the financing of thousands of firms in Canada who strive for innovation in their products and services.

And that’s everything, by the way, from start to up major established corporations. In fact only 20% of the users of the program were larger corporations , so we can only imagine the rumblings in ' SR&ED land ' for the 80% of firms who find themselves in either start up or early revenue mode, or perhaps they have just been in business a few years and are starting to ' ramp up ' in revenues.

While confusion seemed to reign supreme in ' SRED ' the reality is that the program took a hard hit in popularity as everyone with a vested interest made a hard stand on where they stood on the program . That included the government, of course, the SR&ED consultants that actually prepare you claim (most firms don't prepare their own claims “and industry economists and pundits who questioned the payback on the governments billions of dollars spent on these non repayable tax credits.

And for the firms who in fact finance their claims for cash flow and working capital via a SRED financing bridge loan for their claim in Canada that cash looked like it might be going away.

Nothing likes a happy ending, and there seems to be a general status quo on the program, although some changes were made to areas such as the ' CAPEX ' portion of the program.

All's well that ends well, we guess, so it’s back to ensuring that if you wish to finance your claim and accelerate working capital benefits that choice is all yours .

Claims are generally financed at 70% loan to value, and a properly structured SRED financing typically takes the form of a bridge loan collateralized by your claim. No payments are made for the duration of the loan, and your firm receives the balance of your claim, less financing costs once the good folks in Ottawa and your respective province approve and fund your claim per their guidelines.

Speak to a trusted, credible and experienced Canadian business financing advisor on a bridge loan for your SR&ED tax credit today.

P.S. Claims can also be financed today for your next years spend. Don't forget to look into that benefit also.





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/sred_financing_bridge_loan_tax_credit_claim_canada.html