Disaster Recovery Via Receivable Finance In Canada . Does Canada’s Newest Main Street Business Cash Flow Financing Really Work?

A Real World Working Capital Solution? Here’s Proof


OVERVIEW – Information on business financing in Canada . One solid cash flow solutions is Receivable Finance which can fix a lot of challenges .. quickly.



Can some forms of business financing in Canada really work when a company finds itself, unfortunately, in the ' disaster zone '. And do those solutions have to be either alternative, or can they be ‘main street '?

Top experts in the field of business financing will often point to the solution of A/R finance, also known as ' factoring ' to solve cash flow problems. While this finance method has been in place hundreds of years it was actually pretty late in getting to Canada, and years ago, when it did, it was considered ' alternative '.

My how things change though, and thousands of Canadian firms now use this financing as a method of fixing business challenges. They might be mild challenges, aka ' cash flow is tight ' or severe challenges, as in ' the bank has called our loan ... we need help!

So, given those statements, what is this method of working capital finance, and how does it differ in Canada? Because almost have of respondents in Canadian business, certainly in the SME sector advise that ‘ inadequate capital or financing ‘ is a main source of their daily struggles .

At the end of the day it’s really quite simple, it’s a contractual arrangement that allows you to ' sell ' or ' fund' your receivables as soon as you generate a sale. Naturally it’s at your option; certainly you can do this on an ongoing basis a little, or a lot!

The majority of this financing is Canada is done under a much regimented process, parts of which are sometimes not really preferred by the business owner or financing manager. We're talking about the notification of the process to your client.

While the majority of offerings in Canada revolve around this method of working on a day to day basis we quickly point out to clients that if you're knowledgeable and working with the right party the best type of facility available is one that allows you to bill and collect your own receivables... i.e you're minding your own business.

So why is this fix for challenged firms, and even more so, growing firms. Simply because it’s a way to accelerate cash flow. And when you have that cash all you are doing is accelerating your business cycle, allowing you to ship or bill more, all over again. We remind our clients that even service companies can use receivable finance; you don't need to be selling a product.

So is A/R finance for your firm? You might find that it gives you a much higher level of confidence in growing sales knowing you have the ability to fund that growth. In general we have observe that because of the higher financing cost associated with factoring most business owners run a tighter ship from a cash flow management/borrowing perspective . And that’s a good thing.

So, whether you are in disaster recovery need when it comes to working capital solutions, or if you've been accused ( you're growing too fast !) speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with a solid utilization of Canada's ' newest ' main street cash flow solution .

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_financing_cash_flow.html

Refinancing? Solutions Your Company Can Live With Via A Restructuring Loan Or A Bank Special Loans Takeout

Looking For A Restructuring Loan For Refinancing Your Business ?


OVERVIEW – Information on refinancing your Canadian company when a restructuring loan is required . Why Special Loans situations are not ‘special’ !



Many Canadian companies find themselves domiciled in the town of ' Dire Straits '. That’s when a 'relocate ' via restructuring loans and refinancing is in order. In certain other cases extreme situations might exist whereby a Canadian chartered bank or other institution has in fact ' called ' their loan, putting them in the unenviable situation of being in what our banks call ' Special Loans ‘. And we'll promise to hold off on the humor around the work ' special '!

When you consider your firm is either in, or a candidate for refinancing or restructuring that involves a focus that’s combined with what the finance folks call the ' stakeholders '. They include owners of the firm, lenders, and of course key suppliers. These situations are often dynamic and time sensitive, further adding to the excitement!

What are some of the benefits of working with someone, or a team that is experienced in this area? Naturally finding an individual or a firm that is as serious about your turnaround as you are is key... it’s that ' people thing ' we hear about so often. You're looking for both technical synergies and of course... solutions.

Naturally the final outcome of any restructuring can be different. It could involve the sale of the firm, a partial sale of equity, of more simply, a refinancing of the business that addresses the key issues and problems.

'Assets ' are key to turnaround and restructuring. Whether they are hard assets or perhaps future cash flows under recurring revenue model its all about keeping customers and injecting new cash flows into the business.

So what are some key elements required to get your firm out of ' SPECIAL LOANS ' and back into a day to day operating business cycle that you can live with .?
They might include asset sales, supplier term renegotiations, or financing of badly needed to assets to sustain and grow the business.

There are some key things you can expect in any restructuring of your company. First of all it usually takes longer than you think, a worst case scenario re timing is never wrong to have in place.

Financing solutions in Canada that work well with special loans takeouts include asset based credit facilities, bridge loans, sale leasebacks, and working capital financing re A/R and inventory programs that margin current assets to the maximum allowed.

The bottom line - restructuring and refinancing of any firm, small or large is rarely a fun cake walk! But solutions exist, so seek out and speak to a trusted credible and experienced Canadian business financing advisor today for the experience and special attention that this challenge requires

7 PARK AVENUE FINANCIAL
CANADIAN REFINANCING AND RESTRUCTURING 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/special_loans_restructuring_loan_refinancing.html

What They Don’t Tell You About Cash Flow Problems . Canadian Business Financing

The What and When Of Canadian Business Financing Solutions

OVERVIEW – Information on the reality of cash flow problems and the possible business financing solutions available to the Canadian business owner/manager






It's actually not a mystery, although many business owners and financial managers think they have no, or limited access to business financing solutions when they are experiencing cash flow problems.

The reality? If you’re honest about recognizing the root causes and real current situation around your working capital and cash flow problems you’re gong to find that nothing is really hiding between you and access to cash flow nirvana!

That's why it's critical to understand why you are in fact seeking cash flow solutions. It goes beyond the aspect of profit, and focuses on the basic needs of your business - buying more assets, real estate perhaps, and having enough cash on hand to operationally run your business successfully. And if you are in the throes of a turn around it’s simply a case of getting more time and muscle behind your well earned turnaround. So seeking the right financial solution allows you either to start a business, grow it, or survive when times seem a bit tough... generally thats when expenses exceed revenue!

Timing is everything when it comes to achieving success in business financing. We recall Ford Motor Company having refinanced their entire corporation just before the 2008 world wide meltdown, allowing them to weather the storm a lot better than many of their competitors. Whether that was more luck and timing than planning we'll never know, but boy did it work!

Remember also that there is a big difference between financing assets and working capital, so spending some solid time around getting working capital and cash flow facilities in place allows you to access funds on the asset monetization process that you put in place . Simply speaking ... get approved for the type and amount of cash flow facility you need is a lot more difficult when your balance sheet and income statement are showing business stress.

Key to business financing solutions is... surprisingly... knowing which ones to pick, and yes it does seem sometime that you are not being told the whole truth ... is something being hidden. One possible reason for that... that the institution or commercial finance company you are dealing with can’t deliver on that solution... perhaps because they don't offer it. Quick example - you need to finance a short term asset for a major project... you want a 25 month lease or loan. You approach your asset finance partner who indicates they can't do a 2 year lease or loan, and furthermore, they don't offer operating leases. The solution? Find someone who does!

Also, make sure to understand some of the other factors of business financing solutions that many business owners/managers don't consider when they attempt to access financing. That might include your industry, your geographical location (not all Canadian business lenders are everywhere), and finally our personal credit situation as guarantor.

At the end of the day it certainly might seem like you're not being told the truth about finance solutions in Canada - a harsher reality might be that you have simply been working with the wrong party and don't know that you have solutions in place around receivable finance, flexible equipment financing (yes those 24 mo solutions are available), asset based lending, securitization, tax credit monetization, and unsecured cash flow loans.

Speak to a trusted, credible and experienced Canadian business financing advisor with access to multiple finance solutions for your firm... today.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS FINANCING / CASH FLOW 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_problems_business_financing_solutions.html

Is There A Secret To Buying A Franchise Business When It Comes To Franchising Loans And Cost?

Financing Your Canadian Franchise Opportunity


OVERVIEW – Information on franchising loans in Canada. Factors critical to franchise cost and finance when buying a business opportunity in the franchise industry



Buying a franchise business in Canada. Talk about a commitment that requires a combination of logic, perhaps some luck, and some common sense around the type can cost of franchising loans.

Franchising is so popular today that opportunities are available at every price point, and with that comes varying costs - from a few thousand dollars of investment required... all the way up to Million dollars ++.

As consumers we certainly don't buy thing we can't afford, and that logic should clearly be carried over when it comes to a franchise purchase. Notwithstanding the fact that franchising loans and financing are available to those that qualify it becomes a question of risk, return on capital, and your ability to make an equity contribution to the business venture.

Having both a realistic business plan that properly shows cash outflows and inflows at the start of the business is critical. And quite frankly that’s the same methodology and logic you would use to acquire any other business, franchise or not! Being able to demonstrate a realistic profit and cash flow to your lender is always critical.

What are then some of the key factors that come into the financial aspect of the purchase? (We’re going to assume you are over the hump when it comes to all the emotional aspects!)

Every business purchaser assesses the cost of buying a franchise business when it comes to return on your initial investment. We constantly hear that an investment in the franchise industry requires a major investment of time when it comes to ' who's minding the store ‘. So don't forget to factor in both the cost of the franchise as well as the amount of time and expertise you have to invest to make the business successful and grow.

Part of the franchising cost is of course the initial franchise fee. In general that fee is not financeable, and is often shown as ' Goodwill ' on your balance sheet. So more often than not we advise clients that they need to cover off the franchise initial fee as part of their initial equity investment into the business.

Franchise royalties vary in Canada - they typically seem to be in the 6-8% range and need to be carefully factored into your busines plan and cash flows as they significantly impact cash flow and profits.

Timing. There isn't a day when we don't speak to a potential franchisee that needs to have his or her financing arranged - yesterday! You need to be in a position to allow for a reasonable amount of time to put your whole financing plan and package/strategy together. Working in panic mode with a lender basically ... never works!

Franchisees address the opportunity to own their own business in a number of ways. Some actually end up paying cash, some choose a partner, and larger opportunities actually have the ability to acquire an equity investor. Is any one of these better than the other? Not really, although we would add that paying full cash for your purchase certainly depletes personal equity and net worth. By incorporating your business and financing it properly you are clearly addressing the issue of matching risk and liability properly.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with a proper strategy for the cost and type of franchising loans and finance you need to be successful.

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/franchising_loans_franchise_cost_buying_business.html

The Right Business Financing For A Company Purchase, Merger, Or Acquisition. Small , or Large .. Here’s What You Need To Know

Canadian Business Financing


OVERVIEW – Information on the proper business financing mechanism based on a company purchase, merger , or acquisition in Canada .



Admit it. You've thought about it. Actually we probably all have. Just imagine a company purchase of a legendary Canadian tech company, or a merger or acquisition with your firm of one of Canada's iconic firms who perhaps has fallen on dire straits.

Here's the reality though that might surprise you. Whether you have focused on a Canadian major corporation purchase, or at the other end of the spectrum a local pizza joint the key issues are probably still the same. ( It's just that the lawyers and accountants will cost you a bit more!) What is the value of the business, and how do you finance it. And when you think about it even a great company that you over pay for can be financially disappointing.

The good news is that there are numerous ways to value a company, and there is an even more proper way to match the financing of that purchase with the appropriate business financing.

When it comes to purchasing a business it’s about laying down the odds on future cash flows. The other reality of course is if you, or your firm are suited to buy this business , vis a vis experience, mgmt, etc.

The challenge of buying a business in the SME (small to medium enterprise) sector is in some ways more dangerous than your purchase of a Canadian iconic brand, failing or otherwise. That’s because when it’s a larger corporation it allows you to bring in the usual army of accountants, investment advisors, business valuators, consultants (heaven forbid!)... Etc.

Typically the financing of a firm is based on your valuation method, which might be an asset based transaction, a cash flow transaction, or an equity transaction.

The challenge of financing an equity transaction is significant. That's because they are hard to finance because there is no liquidity exit for the lender. Case in point - we recently met and spoke with a 40% owner in what could be considered a major Canadian corporation. While the equity is worth millions of dollars financing of that equity is in fact as close to impossible as one could get.

Asset based financing is much easier to achieve. But, don't forget that if you mis - value those accounts receivable, inventories, and equipment you might find that there is a lot of tuition to be paid in the school of book value! In fairness sometimes the true asset value of a transaction far exceeds book value - that’s a good thing if you have focused on an asset based lending solution.

Goodwill, like equity, is very hard to finance, enough said... so your ability to value and understand intangibles is critical.

But also don't forget that when it comes to asset finance for a business financing merger, acquisition, company purchase, etc that you need to have a strong hand on market and replacement values.

While public and very large corporations continually have multiples of earnings based performance that is much more difficult for a smaller or private firm. Frankly those earnings often have to be normalized, which usually means having to take the kids and grandma off the payroll.

At the end of the day it’s about financing assets, cash flows, and profits with a finance mechanism that is appropriate.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can match financing and business acquisition goals in the right manner.

7 PARK AVENUE FINANCIAL
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/business_financing_merger_acquisition_company.html

What’s New … And Working When It Come To Business Funding? Creative Financing 101!

Looking For Business Financing Creativity?

OVERVIEW – Information on business funding sources in Canada . The right combo of creative financing from traditional and non traditional sources will get you the capital you need


Business funding in Canada. We have remarked on more than one occasion that the landscape has dramatically changed over the last number of years.


Frankly (perhaps it's because we're getting older?!) we can barely remember the days when options seemed almost unlimited and everyone was saying ' there's too much capital and too little deals '. Yes, the government and banks seem to have a party line about trying to help, and while interest rates are at rock bottom lows the amount of funding out there, either traditional, or in the area of ' creative financing' seems somewhat limited to the Canadian business owner or financial manager.

We think the banks and the government would say that the amount of funding solutions out there is still the same, the reality is that they are simply harder to get approved for, at least for the amount of capital you need.

So where does the business owner/manager start? Let's explore some of the more creative ways to fund your business, whether you are a start up or established company.

Start up businesses of course seem to have the biggest challenge. They are typically funding via a ' bootstrapping' method revolving savings, home collateral, and friends and family loans. They all work, but they are just not that desirable!

Naturally not being aware of the other more traditional or creative ways to fund your business hampers any chance you have for success, let alone growth. At the end of the day you need the right amount of debt and the right amount of equity to make things work.

Many business start without a plan, and in business that is of course the ' business plan ‘. We always tell clients that even if they don't need a plan for financing purposes (you usually do though!) you should have your own ' flight plan ' in place for your business, and that document does just that!

Naturally when we talk to clients about additional financing they are often focused on ' the bank ‘. The challenge here quite often is that while our Canadian banks are pretty good at funding businesses for growth, they aren't that great when it comes to financing early stage companies. That always comes back to the banks vested interest in preserving capital. So when you can't properly demonstrate a track record, the right amount of sales and profitability, or external collateral, what in fact are some alternatives for business funding?

One method is the Government Small Business Loan, which we've always thought isn't really that small - i.e. 350k is the borrowing limit. It's available all across Canada and criteria is much more ' looser ' than traditional bank financing.

Other creative

financing alternatives in Canada include:

Equity Credit Lines - You lend your business the funds on a secured basis

Business Credit Cards

Loans from Angel investors

Reverse takeovers of a public shell

Royalty and Revenue Sharing

Vendor financing

Business Incubators

If we had to pick the most traditional method of ' alternative financing ' today we would have to say its factoring or receivable financing .It's used by thousands of businesses to stabilize and generate ' lumps' in your cash flow , it covers short term emergencies, and lowers receivables and increases cash.


Our bottom line, there are numerous traditional and alternative financing sources the business owner may not even be aware of. Seek out and speak to a trusted, experienced and credible Canadian business financing advisor who can assist you in business funding you need.

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_funding_creative_financing.html

Getting The Best Equipment Leasing Rates? Here’s How To Achieve The Best Asset Finance Rate In Canada

Understanding Equipment Finance Rates In Canada



OVERVIEW – Information on achieving the best equipment leasing rates in Canada . How important is the asset finance rate when you’re acquiring new equipt?



Equipment leasing rates in Canada. When it comes to achieving the best asset finance rate for your lease, equipment loan, or sale leaseback we have often said to client that it just might be time to ' Walk a Mile in My Shoes '.

That was a song by singer Joe South, and what we mean in talking to clients on this subject is that it just might be prudent to put yourself in the leasing company shoes.

So let’s take a look at what factors affect your overall lease rate in Canada. And the good news is that today it’s a very competitive environment out there, and if you're dealing with the right firm it's very possible to achieve solid rates, terms, and structures that make sense... for your firm!

So, how exactly does a leasing company make money, and furthermore can you gain somewhat of an edge by utilizing this knowledge to your firms benefit.

In general size does count in Canada, so as a general statement larger credit worthy transactions are very much sought after and command the best rates often not that far from bank prime. The industry also has a thriving ' small ticket ' model that focuses on quick approval for transactions generally under 25k. While rates might be a bit higher in this industry model its all about ease of doing business, which is important to the business owner and financial manager.

You as a borrower rarely consider where the lease company gets its funding, but guess what... they borrow it also. The spread between their borrowing rate and your implicit rate in the lease is... no surprise... their proft.

But the lease company makes money in a number of different ways, not just their cost of funds on the actual cash flows of the lease. One method that increases the lessor yield or profit is their ability to request down payments from your firm on the transaction.

While the industry generally flaunts a ' 100 % no money down' philosophy your should therefore negotiate for lowest down payment possible, if in fact you are asked to provide one. Oh, and by the way some firms might call this a 'security deposit', but at the end of the day it’s still in the category of a down payment.

The actual cost and value of the asset is a key driver in the lease company's assumption around profit. In Canada you have a choice between two types of leases, capital and operating.

If you choose an operating lease you or the lease company will make or lose a significant amount of money if the transaction is not priced and understood properly. Thats because returning the asset to the leasing company allows them to not only profit on the finance / interest rate portion of your transaction, but also the sale of the asset to further increase profit.

In the Canadian marketplace you might be asked, and typically you will... to pay miscellaneous lease costs associated with the administration of the lease, ie government registration fees to collateralize the asset, documentation preparation, etc. These generally are no more than a few hundred dollars.

We've highlight some of the factors that affect equipment leasing rates in Canada. If you're looking for an asset finance rate that suits your firm seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business needs.

7 PARK AVENUE FINANCIAL
CANADIAN EQUIPMENT LEASE SOLUTIONS 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_rates_asset_finance_rate.html