Are You Shirking Business Growth Finance Opportunities. Be A Master , Not Follower Of Cash Flow Financing Principles And Solutions

Some Key Growth Finance Business Essentials


OVERVIEW : Information on business growth finance in Canada . Cash flow financing, asset monetization and proper business borrowing is key to success


Although business growth finance solutions are a priority among most business owners and financial managers it's easy to shirk

your responsibilities in this area when confusion reigns around types of solutions, pricing, and the concern that the whole business world in fact might be over obsessed with growth!

The other side of that coin when it comes to cash flow financing solutions and growing sales is that your industry, employees, etc might in fact perceive your slow growth as a sense of failure. In the larger corporate world those slow growth companies often get gobbled up along the way by competitors.

The thing though, is that while it’s important to have growth financing in place it really doesnt matter if in fact you're not generating reasonable profits, and returns on all the assets that you have in your business.

Different types of financing in Canada are required for different levels of growth. Your company can grow by expanding markets, organic growth, and of course you also could acquire a competitor.

So if your company is in fact growing, or focused on growing for all the right reasons how do you assess and execute on the financing component?

One other key point is also that you can utilize a finance strategy to acquire a competitor, which can be handled in a number of ways: asset loans, reverse takeovers, unsecured cash flow loans, etc. Naturally the benefits of a successful acquisition are often significantly set off by the high price you might pay for such an acquisition if it was not valued properly, or executed on properly.

Also, at a certain point it’s really difficult to keep up high growth and maintain the return on investment you are looking for.

So what are some of the options for cash flow financing and asset finance when it comes to business growth? If your firm is deemed commercially credit worth at the Canadian chartered bank level a lot of price and flexibility options become immediately viable. They include unsecured cash flow loans, accessing bank revolving lines of credit, The good news here is that you are often in a position to use assets you already own via asset based lending or some form of creative sale leaseback arrangement .

If there is a bottom line today re: business growth finance its simply that depending on which stage of the life cycle your business is at you do in fact have the ability to access sources of financing such as trade credit, institutional or bank facilities , and alternative financing capital via independent and specialized commercial finance companies .

Just remember that if you are in fact focused on growth you need to always have the financing to underpin it. In a perfect world you want to be able to combine internal resources with external solutions.

Just remember that the transition to growth might not be as easy as it seems; so seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with the proper external financial solutions.

7 PARK AVENUE FINANCIAL
BUSINESS GROWTH FINANCING SOLUTIONS





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/cash_flow_financing_business_growth_finance.html

What Type Of Asset Finance Is The Lubricant To Growth Financing In Canada ? Financial Assets Are Critical To Business Success

Let’s play the Match Game Of Asset Finance In Canada


OVERVIEW – Information on growth financing strategies in Canada. Your ability to properly match asset finance of your financial assets to the right type of solution is key to proper growth .



Growth financing in Canada. As if keeping your business alive as a Canadian business owner or financial manager wasn't enough, what about all the growth financing challenges you have to face?!

There probably are thousands of businesses in Canada who are either content to stay roughly the same size, or , at the opposite end of the spectrum, want their business financial assets to grow, but just don't know how , or where to turn to . Businesses in the SME sector in Canada are sometimes quite happy to put those earned profits regularly back in the bank accounts of their owners. That’s ok, for course, just not complementary to a growth strategy.

As we said though, many firms wish to capitalize on asset finance solutions in Canada to add assets to their business open a new location, buy a competitor, even in some cases franchise their business model.

So if it is true that financing is the key ' lubricant ' in that growth financing depends on, and if the business owner’s dont have ability to fund their firm personally, what are in fact the options? In reality there are more than you think!

Naturally early start up firms in Canada though do in fact rely on initial owner equity. But sooner or later you need growth financing of financial assets for key investments in offices space, software, computers, and other infrastructure and business model assets.

We never fail, or at lease try not to fail at pointing out to business owners/mangers that internal cash flow generated form asset turnover is a key to growth finance. It's just that they are never enough! And if you're not big enough to go public yet, or engineer a reverse takeover then financing financial assets is in fact going to be a key driver in your revenue and profit growth.

Here though we are at a key point in the juncture of your firm. Because here's where mistakes are made, we’re referring to the sometimes inability of the business owner/manger to match the right assets with the right type of financing. So a very key point is in fact that you should be financing receivables, inventories, and tax credits with short term financing vehicles in Canada.

Those solutions include bank lines of credit, receivable finance, inventory finance; asset based non bank lines of credit, and purchase order/supply chain financing.

Longer term assets should be financed with term loans, equipment leases , secured or unsecured cash flow loans ( unsecured is best!) , etc .

If you wish to match the right assets you have, or need, with the right type of financing seek out and speak to a trusted, credible and experienced Canadian business financing manager today.

P.S. That is of course only if you want to grow your business!

7 PARK AVENUE FINANCIAL
CANADIAN GROWTH FINANCING AND ASSET FINANCE SOLUTIONS






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_finance_growth_financing_financial_assets.html

Man Buying A Business Receives Financing Approval! Surprised? Here’s Some Info On Franchise Loans In Canada

Franchise Financing In Canada


OVERVIEW – Information on franchise loans in Canada . Get the right financing when you’re buying a new or existing business from a franchisor .





Franchise loans in Canada. When you're buying a new or existing business in this large segment of the economy should you be surprised to read our headline regarding financing approval? That depends of course... on whether you yourself have been approved, or declined!

There is of course some ' right ways ' to finance a busines in the franchising industry. Top experts in the field can provide you with both the guidance to ensure your finance request is approved, as well as minimizing the time it takes to get to the goal line - that time often being the most frustrating part of your search to finance entrepreneurship.

We continually remind clients that they must focus on a total solution, that being both the turnkey financing of their project, as well as taking into consideration working capital and growth financing. Those latter two are sometimes forgotten, leading to disastrous consequences.

In Canada financing for franchise loans is provided by a small handful of resources - they include specialized finance companies, the government SBL loan, and third party lease and finance companies.

Using any one or a combination of the above financing resources effectively puts you very quickly very close to the goal line when buying a business.

Many new franchisees associate ' the bank ' as the source of their possible financing. They are thinking in terms of what we could call ' conventional financing ‘. So the question then is very simple. Do Canadian chartered banks in effect finance franchise loans? The answer is a resounding yes, couple with a resounding watch out.

While our bank system has the lowest rates in Canada, as well as generally flexible terms the reality is that a conventional loan of this type requires that you put up personal assets, quite often the equity in your home. That of course requires approval from your husband or wife, whom many franchisees tell us is more difficult than negotiating with a banker.

We further remind clients that they would do well to consider the concept of separating their personal life and finances from business finances - that is just common sense, and one of the many reasons you also consider incorporating your franchise into a separate legal entity. However, in fairness to our great and strong banking system in Canada almost all the banks have embraced the franchise industry and have some experts in their system who can address your needs. It's just finding out which branch they are located at!!

So what about the franchisee who can or doesn't want to pledge all those personal assets (you have to have assets to pledge them apparently)? One solution is of course to partner with someone who can assist in relieving the total financial burden of the business. However, in our own experience a lot of issues (mostly character and personal!) arise in partnership challenges of managing and owning a business. Going alone, while lonely is often the best solution.

In general the potential Canadian franchisee requires a reasonably good personal credit history, as the franchise lender wants to know you manage your own personal finances in a manner that reflects how you will manage your business.

So, when you plan or system to successfully enter the franchise industry seek out and speak to a trusted, credible and experienced Canadian business financing expert for assistance with franchise loans in Canada . Your focus? Doing it right... and quickly.

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_loans_financing_buying_business.html

What’s The Difference Between A Bank Or ABL Revolving Credit Line And Factoring ? What’s My Limit?

Here’s Your Reality Check On Cash Flow Financing In Canada



Here’s Your Reality Check On Cash Flow Financing In Canada



When Canadian business owners and financial managers are up to their necks in running their companies, growing sales, and managing operations to effectively use assets ... the last thing they think they have time for is to understand some key differences in terminology when it comes to financing their current assets . We're talking about receivables, inventories, and tax credits they might have, etc.

So why is the terminology so important? Simply because we have found different terms have different meanings depending on who you are talking to. Let's explain why you need to know this when it comes to considering either a bank revolving credit line limit, or an ABL factoring type of arrangement.

Bank lines are typically put in place for a one time set amount. It’s pretty safe to say that they are, in general, reviewed on an annual basis. Here's where the terminology gets important. Under this type of facility your assets, primarily A/R and inventory are in effect ' collateral ' for your borrowing. You have given the bank this ongoing collateral - and in the majority of bank deals you are also required to provide personal guarantees or outside collateral.

Your current assets are then margined, again, typically on a monthly basis and you can borrow within the previously mentioned limit. Banks manage this process by a simple document called a ' borrowing base certificate ‘, essentially highlighting the aging and turnover of your current assets.

So how does this differ from an asset based line of credit through a non bank ABL firm? (A = Asset B=Based L= Lending)

Factoring, or receivable financing is the most common, let’s call it a ' sub set ' of asset based lending. So although this could include fixed assets and real estate, to keep things simple we'll focus today on just receivables and inventory.

In the case of factoring receivables the documentation somewhat differs when you set up your facility, because it specifies that any receivables you wish to finance are in effect ' sold ' at the time of financing. The finance firm manages this quite effectively, and a common way they do this is to set up what is known as a ' lockbox ' or ' blocked account '. Here is then what happens. As you generate sales on a daily or ongoing basis you immediately receive funds. As these funds are collected by yourself, or your finance firm the monies are deposited into an account controlled by the finance firm. That makes sense given you have already received the funds when you generated sales.

We hasten to add that the recommended solution for this type of ABL factoring is in fact a confidential facility, allowing you to bill and collect your own receivables and maintain effective customer relationships.

Final point today - and it’s about your limit. As we noted bank arrangements typically are focused on one pre set limit. This sometimes does not address seasonality or bulges in the business of the Canadian business owner and financial manager. ABL factoring on the other hand in essence grows automatically with your sales. In effect its unlimited financing with your qualified assets; i.e. receivables and inventory.

So, our point today? Understand the terminology and nuances and what they can and can't deliver for your firm. Need help? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in managing the reality check of cash flow and working capital financing in Canada.

7 PARK AVENUE FINANCIAL
CANADIAN ASSET BASED LENDING & WORKING CAPITAL 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/factoring_revolving_credit_line_limit_abl.html

Why Consider SBL Loans In Canada . The Government Business Loan Program Might Be The Financing You Need

Assessing the BIL/CSBF Loan Program In Canada


OVERVIEW – Information on the government business loan in Canada. How SBL loans provide the financing your business just might need.



SBL Loans in Canada. It's the government guaranteed business loan program in Canada; so why should you or your firm be interested?

The Canadian government, via Industry Canada has provided this loan program for years in an effort to help businesses in the SME sector (in this case those with sales or projected sales under 5 Million $) get the financing they need through the loan guarantee.

Each year thousands , and we mean in the 8000 range , of companies receive access to Billions of dollars of funding for the purchase of assets, technology, software, and yes, even leasehold improvements - paint and drywall and HVAC included!

But does this loan make sense for your company, and, if it does, how do you access the program? Is there the proverbial ' red tape ' that most of us associate with ' I'm from the government and we're here to help'!

Nothing against our good friends in the government, but clients are surprised to know they have no, repeat ' no ' direct ' interaction with the government for this type of business loan.

That's because the gov't has designated Canadian chartered banks, and a few other miscellaneous institutions with providing this loan. It' somewhat ironic that even the governments quasi bank, the ' BDC ' is in fact no even able to provide these loans.

So the bottom line is that your transaction is directly done with a ' hopefully ' knowledgeable banker that understands your business needs, and the program. The gov't guarantees a large portion of the loan to the bank once your transaction is approved, and repays the bank in a worst case scenario.

But we're talking about getting the loan, not defaulting on it!

To recap, SBL loans can be used to expand or modernize any facility as long as your business is in that facility. This is not a real estate flip financing program, trust us on that one!

Additional assets under the program that can be financed include machinery, equipment, furniture, and leasehold improvements.

What cannot be financed under the program? Unfortunately many clients think it’s a cash loan, a working capital loan, or an inventory and receivables financing loan. It is none of the above.

So how does one qualify for the program? As we said, it’s a lot easier than you think, and if you are successful rates, terms and structures are excellent, including a limited personal guarantee.
Speak to a trusted, credible and experienced Canadian business financing advisor on how you can benefit from this solid financing alternative for either your start up business, or an existing one in which sales are under 5 Million dollars.

P.S. You'll be please to know that you can even purchase an existing business, or franchise, under the program!

7 PARK AVENUE FINANCIAL
CANADIAN SBL LOAN 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_loans_business_loan_government.html

What’s The Deal With The ‘ Operating Lease’ Anyway? You Need To Understand FMV Leasing Vs. Finance Leases . Here’s Why!

Which Lease Finance Method Is Best For Your Company?



Information on the operating lease in Canada, aka FMV leasing. Here Are The Differences Compared With Finance Leases .





An ' operating lease '. Canadian business owners and financial managers have access to what is known also as ' FMV LEASING ‘... they just sometimes don't know what that is and when to use it . Let's cover off what you need to know.

When you enter into an operating lease there is generally intent by your company to return the asset to the lease company, as opposed to finance leases where you have a very clear intent to keep and own the asset at the end of the lease.

Oh, by the way though, just because you enter into FMV leasing (FMV = Fair Market Value ' it does not necessarily mean you absolutely have to return the asset. That is one of the beauties of operating leases; you have several different choices at the end of the lease term. We can see why the operating lease is called a ' true lease ' ... you're leasing... not owning... as simple as that.

One of the main challenges in what you need to know about an FMV lease is simply that the true monetary value of the asset in your transaction is not known at the beginning of the lease term. Take computer assets for example... with all their changing technology who could possibly predict with absolute certainty what a computer in today’s world will be worth 3 or 4 years from now?! Not us... that’s for sure and we toiled in that industry for 20 years!

In operating leases the actual accounting of the lease plays a huge role in your overall transaction. That’s because how the transaction is treated has a significant impact on your balance sheet and income statement. Also, accounting rules do not allow the lease company to specify the value of the asset at end of lease term. That often tends to be both good and bad for your company, the lessee as we will explain.

Many lease companies in Canada, and lessees try and arrange a side agreement between themselves. That certainly can be done, but it is somewhat dangerous as it is often viewed as circumventing the lease accounting rules around the operating lease. In a worse case scenario your auditors, or CRA - Revenue Canada might in fact impose penalties around interest, taxes, etc, as these are in fact impacted by the real structure of an operating lease.

The ultimate challenge of the operating lease is the value of the asset at end of lease term. You have to be able to be in a position to understand what the asset is worth from a monetization perspective. The good news is that with the internet and other sources business owners these days have a huge amount of information available to them with respect to the true value of any asset.

The lease company is of course entitled to a ' reasonable profit '. We would never fault them for that. But you as the business owner/manager and lessee have the total ability to ensure that profit is... reasonable. That’s because FMV leasing gives you the option of purchasing, returning, and even upgrading the asset when you are dealing with the right lease company.

If you're focused on understanding both finance leases and Operating Lease options for assets financed in Canada speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in achieving your financial goals in asset acquisition.

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/operating_lease_fmv_leasing_finance_leases.html

Receivable Finance Is Actually The Premium You Pay To Have The Business Cash Flow You Need To Grow Your Company

Why You Should.. Or Shouldn’t Finance Receivables Independent Of Other Business Financing


OVERVIEW – Information on receivable finance in Canada . Why do Canadian business consider using , or not using a/r financing for business cash flow .



Liquidity in Canada for many Canadian businesses is often ' fixed ' by Receivable Finance... commonly known as factoring... for business cash flow.

It's not financing per se, in the way that a bank finances receivables, its a form of finance that allows you to sell, individually, or in bulk, on a regular basis your a/r... for immediate , and by that we mean ' same day ' cash flow. That’s the key perceived benefit by many business owners and financial managers.

In explaining the process to clients it has become clear over time that a good way to describe this method of working capital finance is simply to view the cost of the financing as a ' premium ' you pay in order to achieve constant cash flow .

That ' premium' is viewed as expensive by many, however we maintain that its important to understand the terms , mechanics and benefits before we rush to judgment on what we have called the ' ouch factor ' ... a/r receivable finance pricing.

There are just so many little in's and outs of this method of financing that its important to separate what is important vs. what is not.

So what are some of the misperceptions around this method of cash flow finance? One is that it is an all or nothing scenario and that can't be farther from the truth. If you are working with the right firm ( key word ' right'!) you should be in a position to finance what you want and when . You should not be dealing with a firm that insists that you finance all your receivables all the time, as some players are want to request.

One of the biggest challenges we see in A/R Finance is the fact that many Canadian businesses don't view A/R financing as an interim solution. So they feel locked in and unable to address other financing at some future point in time.

The reality that we see day in and day out is that firms often progress to the point that they are now eligible for what they consider more traditional types of financing. If you are dealing with the ' right ' firm, (there is that key word ' right ' again!) you should not have any sort of penalties to exit a facility.

If your firm is not interested in a confidential financing facility, allowing you to bill and collect your own receivables you might find one very significant advantage to that ' PREMIUM ' we have talked about . That is simply that many firms can choose to have the factor finance firm administer their entire credit and collection policy. This alone can save many thousands of dollars and offset a lot of the ' premium ' paid to factor invoices in Canada.

Remember also that if you have one, or many larger ' blue chip ' type firms as clients you have just hit cash flow nirvana, as receivable financing is unlimited when it comes to credit worthy customers. If you clients aren't credit worthy it’s a case of really assessing whether you should be doing business with them anyway.

So, we can debate with clients all day the actual true cost of the premium they pay to finance receivables, but it should be clear that a strong business case can be made for the benefits of this method of cash flow financing in Canada.

Speak to a trusted, credible and experienced Canadian business financing advisor on whether you should, or should not finance your company in this manner.

P.S. You just might be surprised!

7 PARK AVENUE FINANCIAL
CANADIAN RECEIVABLE 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/receivable_finance_business_cash_flow.html