Cash Flows . Timing Is Everything When It Comes To Financing Business Cash Flow And Capital Management

How’s Your Timing .. when it comes to business cash flow ?


OVERVIEW – Information on cash flows and working capital for Canadian business . Financing business cash flow requires and understanding of timing and accessing solutions that work for your company or industry .



Working Capital is an area of business that requires solutions that revolve around timing.

Timing is everything when it comes to the fundamental problem of managing and solving the cash flow conundrum!

Let's examine some of those solutions using the example of a company trying to grow... which is what it's all about is it not?!

This is when what we could call your ' cash flow cycle ' needs to be both understood... and addressed. That's because the concept of timing has just kicked in ... your have produced your goods or provided your services and a specific amount of time has lapsed as you now generate revenues via invoicing... and wait for payment.

It's no secret that that whole cycle varies between each company and industry. But whether your cycle is 30 days or 120 days the effects of that timing require certain activities to be financed. The timing around this cycle, as well as the solutions that your bring to bear makes or breaks your overall liquidity and solvency - aka ' Survival'!


Example of the need to finance that cycle are should be quite clear - your firm must buy supplies or inventory, at the same time taking on payables. Wages and salaries must be covered and then you're in the waiting game when it comes to delivery and acceptance of your goods and services, as well as final payment from your clients based on your credit terms. It's therefore no secret to the business owner to see that using our example it can easily take those 30-120 days for a dollar to in effect flow through your company. Again... it’s ' timing'!

When you look at your balance sheet you see that the ratios of current assets and liabilities have also changed dramatically. You’re unfortunately less liquid and this can only be solved by financing the shortages you have carried. Of course your customer could pre pay you in advance for orders, or pay you ' cash on delivery ' but that's not the perfect world we dream about.

Financing business cash flow is all about monetizing and managing your assets. Solutions in Canada include:

Receivable financing
Commercial bank lines of credit
Asset based lines of credit
Sale lease backs
Tax credit monetization
Purchase Order and Supply Chain financing


Utilize one or a combination of solutions to manage the ' patterns' of financing that your business needs. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist your with putting together a solution that addresses the timing of cash flows and capital in your business.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS CASH FLOW 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 10 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_flows_financing_business_cash_flow_capital.html





7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com












Stan Prokop

Your Road Map To Success With Leasing Companies . Equipment Finance Rates And Lease Finance Solutions

Looking For A Path To Canadian Equipment Financing Success?


OVERVIEW – Information on working successfully with leasing companies in Canada . Equipment finance rates and asset lease solutions are more readily available for the Canadian business owner.



When it comes to using leasing companies for equipment finance in Canada is there a road map that Canadian business owners and financial managers can use to ensure they are getting the best solutions, rates and structures for acquiring business assets. We think there is a basic road map that can be followed to ensure asset financing success.

So what would the elements of that road map be? We think it comes to the following categories :

Solid structures , rates and terms

Understanding the benefits, and yes the risks of lease finance

Ensuring you have chosen the right lease with a monthly payment and term that supports your financial needs

Understanding the accounting and tax implications of your transaction


Trouble shooting to ensure you're dealing with the right lease company

Utilizing Proper third part assistance when needed

When you have those points covered off we're pretty sure you are very close to having a solid road map in front of you for the lease finance journey.

There really isn't another more popular method of financing your business asset acquisitions in Canada and the U.S. In fact billions of dollars of assets are financed every year, and the ability of your business to acquire assets with financing that comes with other benefits make this business tool extremely popular.

The actual asset that your firm acquires has both a useful life and some economic and hopefully operational value to your business. In many cases these assets will have a residual value. That's where it’s important for you to ensure you're still following some of our road map issues - namely understanding who to deal with and what type of lease you choose. Those two choices boil down to lease to own (capital lease) and lease to use (operating lease).

How you shape and negotiate your payments around that asset is what makes you a winning in dealing with leasing companies. Equipment finance rates themselves are important, but at the essence of this financing tool is the fact that you have access to a lot of structuring tools that come with both risks and opportunities for you and your chosen lease company.

Typical benefits associated with lease finance include the ability to match monthly payments to cash flow streams that make sense for your firm. Despite all the flexibility that is offered with lease structuring more often than not the business owner and manager simply wants to know that a regular fixed monthly payment is a known factor they can readily deal with.

When equipment finance rates and monthly payment values are critical you have access to a number of solid tools -. They include lengthening the lease term, including a residual value in your structure, or negotiating lower down payments.

If you want to maximize the leverage your firm has in acquiring assets through leasing companies spend some time on our key ROAD MAP points and protect your interests and assets.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your lease finance needs.

7 PARK AVENUE FINANCIAL
CANADIAN EQUIPMENT 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 10 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-companies-equipment-finance-rates-lease.html




7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com














Stan Prokop

How Receivables Financing , aka ‘ Factoring ‘ Manages And Solves Working Capital Problems

Is Factoring The Solution You’re Looking For In Financial Management ?


OVERVIEW – Information on factoring and receivables financing in Canada . Is this widely used financial management tool a solution for Canadian working capital and cash flow challenges ?



Could a receivables financing program actually help you manage and success when it comes to solving those working capital problems? Top experts in the field show that the trend towards many companies adopting a factoring / receivables finance strategy is in fact one solid solution to cash flow management... and survival in Canada. Let's explain!


At the core of our subject is the concept of ' working capital ' which is sometimes difficult to grasp for the Canadian business owner and manager in the SME sector. Those large corporations seem to have it down pat, don't they ?

When they do those conference calls on their quarterly results cash flow and growth seems to be all they are talking about .. right!

So does a receivables finance strategy solve the problem? It's kind of good to understand the problem also, don't you think - and in our case it's all about managing your current assets - receivables, inventory, etc.

In the case of receivables if you don't have a stated goal (by the way those large corporations do - they call it days sales outstanding) you definitely have an intuitive goal, which is to turn over those assets into cash.

That's where factoring/invoice finance comes in. It accelerates that turnover of receivables into cash at Warp Speed. And just what is that warp speed?

Well you should know by now, and if you don't you do now... that factoring generates cash as soon as you make a sale. So the current assets, in our case A/R that you permanently have on your balance sheet are turned into cash. That cash allows you to run the company and satisfy all other creditors.

Your payables, which comprise usually the majority of your short term liabilities are a great way to manage debt, and the cash flow you receive from factoring helps keep the risk of insolvency at bay. Simple as that.

So while the Bay Street gang focuses and talks on the concept of working capital your firm, with an adopted factoring strategy helps you cut through the jargon without limitations to timing. What we mean by that is that if you calculate your Current ratio, and let’s say for example it is 4:1 that really is somewhat meaningless if receivables are not collected and inventory isn’t turning. Factoring solves that receivables turning issue very quickly!

It's important to remember that receivables finance, as a solution to working capital challenges is a short term financing strategy. Long term it's up to you the business owner and manager to manage long term debt and grow your company.

Factoring is one key solution that helps you solve the cash flow cycle conundrum, which is the ability of 1$ to make it through your entire company, from product purchase for inventory to cash collected for your sales.

The bottom line today - Cash shortages reach a peak when your firm is carrying a high level of accounts receivable. Factoring solves that problem by converting your one major source of cash - receivables into immediate working capital.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you set up a proactive Factoring program to meet your business challenges.

7 PARK AVENUE FINANCIAL
CANADIAN FACTORING AND RECEIVABLE 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 10 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-receivables-financing-working-capital.html







7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com













Stan Prokop

Business Purchase Financing Tips . End The Confusion On The Type Of Loan You Need To Buy A Company

Conventional and alternative solutions to business acquisition financing in Canada.

OVERVIEW – Information on business purchase financing in Canada . When you buy a business or competitor what type of loan and financial approach is required . Key issues to consider and focus on.



We've spoken of buying a business and the types of purchase financing and loan that will help you accomplish that goal.

If you are using a more traditional approach and utilizing a Canadian chartered bank to finance the purchase we highlighted key elements of a successful close - management depth and experience, a strong business plan, and solid financial projections.

Don't forget also that typically in a more traditional process, i.e. through a bank you will also be required to provide personal financials and the guarantees that come with that. At the end of the day you want to be viewed as an owner or management team that has a strategy and objective, and that you are going to truly focus on growth and profits.

That issue of personal guarantees always comes up in client discussions. While we can in a general sense that any business purchase in the SME sector in Canada will come with that personal guarantee of the owner we can also quite safely say that you have some negotiating power on that issue that you might not know you had.

Are there any alternatives in the whole issue of the personal guarantee? We can offer up that different banks and finance firms have different focuses on the personal guarantee, and the reality is that if you are dealing with an experienced credible banker that has credibility with the bank underwriters you definitely have someone on your side in this issue.

As a final comment you can focus on some restrictions to your guarantee commitment, and you can even have a long term objective with your banker of then focusing on a release of the guarantee sometime in the future.

When we get down to the actual finance structure of your transaction it's critical to focus on the key assets of the business - accounts receivable, inventory, fixed assets, and in some cases real estate. One key issue that you want to determine early on is the issue of ' concentration ‘... for example if a huge part of the business volume is coming from one or two customers. This ' concentration ' issue alone can sometimes make or break your financing on the deal.

Cash flow is the solution that will take you to the goal line if there are not enough assets to complete the financing. On the other hand if cash flow is light or poor the actual assets might be the one element that allows you to successfully complete a purchase.

At a time like this it's actually useful to have a short list of the key elements that a bank or finance firm will focus on when it comes to approving your transaction - In ' old school ' terms they will be character and management depth, cash flow, collateral, current financial condition, and growth plans.

If you can't, or choose not to finance the business purchase through a bank numerous other solutions are available. They include :

temporary bridge loans

An asset based loan or non-bank credit line

unsecured cash flow loans

receivable and inventory financing

Never forget you have the option to go ' ' conventional' or ‘alternative’.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with the right type of loan when you buy a firm and are seeking business purchase financing.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS PURCHASE FINANCING AND 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 10 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-buy-loan.html





7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com













Stan Prokop

Do You Know How To Raise Cash For Financing A Business Purchase Acquisition?

Hitting a Bull’s Eye In Canadian business acquisition financing!

OVERVIEW – Information on raising cash and debt financing for your business purchase acquisition in Canada.




When financing a business purchase acquisition it kind of comes, fortunately or otherwise, to the fact that ' size counts '! . So the cash you need will directly relate to the size of the business you are financing, as well as the asset quality.

Naturally how the company you are purchasing and raising cash for is doing play a key element, as often less cash is required and the focus is on financing remaining assets. So a solid rule of thumb to keep in mind is simply that the amount of cash and ' finance power ' you need is very directly related to your targets situation on profitability. In other words a lot less real cash is required if a company is not profitable or barely breaking even. That certainly makes the job easier, right?

In talking to clients about financing a business purchase we often feel they are focusing solely on the purchase, and not on the on going capital and cash flow needs of your newly acquired business.

We also have to consider the fact that raising cash for a business might often be more feasible if you have a strategic partner or other equity investor. That unfortunately will dilute your equity position but might be realistically the best course of action. And it does certainly allow you to purchase and fund a business with less ' monetary' contribution to the deal.

In the case of larger transactions Canadian business people might well look to a private equity partner in the deal. Their assistance in helping you complete an equity investment, as well as their experience in any specific industry is of course a valuable consideration. And to sum up the whole issue of getting either a strategic or operating partner or private equity group we can simply say that often times this might well add credibility and realism to your offer in the eyes of the seller.


Bank financing in Canada is available to finance business acquisitions. You or your Canadian business financing partner needs to address the following issues at this point:

A concise overview of how you will run the business - i.e. management depth, experience, etc

You need to ensure the industry your business is in is ' in favor ' when it comes to a bank appetite

Your business plan and projections have to be realistic relative to cash and working capital resources re operations and growth

In a perfect world - and we know it's not! You want to be in a position to demonstrate sales growth, profits, and a balance sheet that hopefully won’t have a debt/ equity ratio of 3:1 as an example. And your assets such as inventory and receivables should demonstrate borrowing power quality.

Other ways to finance your business purchase include asset based lending, bridge loans, use of sale leasebacks, and even the government SBL loan if the business has under 5 Million in revenue.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor when it comes to a capital raise for a business purchase acquisition in Canada.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS PURCHASE ACQUISITION 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 10 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/raising-cash-finance-business-purchase-acquisition.html



7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com

Should You Lease Equipment? What Leasing Company Is Your Best Financing Bet ?

Confused About Your Equipment Leasing Decision?

OVERVIEW – Information on the right leasing company to choose when your company is financing assets . A solid lease equipment strategy pays off significant dividends !


The ' lease equipment ' decision can be a complex and / or confusing one when the Canadian business owner or financial manager is ready to choose the right leasing company for the firms asset financing needs . Who should you deal with? What are the differences between lessors? What mistakes can be made... and how can you take advantage of the right benefits of leasing assets? Whew... a lot of questions! Let's provide some solid answers to the lease finance conundrum!

There are numerous financiers of equipment assets in Canada. While some might be ' pure play ' equipment lessors others might be a hybrid, offering loans, bridge loans, etc. Choosing who to use, as we have pointed out carries rewards... and some risk.

At the end of the day there are 3 real, as we call them ' pure play ' lease type firms in Canada. They are independent commercial financing companies, captive finance firms (more about those later), and bank subsidiaries and divisions of our Canadian chartered banks. There is also what we can call a ' hybrid ' provider that might just possible be your best solution, an independent Canadian business financing advisor who has strong relations with all of the above. At the end of the day a little help from an expert never hurts.

When you at least know the different categories of lessors out there it certainly helps to level the playing field!

We would venture to say that independent commercial lease companies in Canada provide the bulk of asset financing to the industry. It's their only job, and they do it well. They aggressively market asset financing to Canadian business and are in a position to use credit and asset expertise to deliver on solid fixed asset financing solutions to your firm. They industry, as we have noted in the past is diverse even on its own - there are micro, small, mid and large ticket lessors, and all of them have different ranges of pricing and credit criteria . Typically commercial independent lease firms offer two types of leases, lease to own ' capital ' leases, and lease to use ' operating’, or ' rental ' leases. Knowing which type of lease you need helps you narrow who to deal with.

Independent lease firms pay your vendor on your behalf and enter into a lease contract with your company. Title remains with the leasing company until you typically have paid all the monthly rentals. These firms make their profit from the finance charge, and on occasion from the residual value of the equipment if you are obligated to return it.

Captive lease firms are typically associated with a specific manufacturer. They are the ' in house ' arms of large computer and auto and construction equipment firms as an example. They are usually great to deal with because, no surprise here, they are incented to finance the product their parent company sells your firm. Credit is sometimes more flexible and in many cases return and upgrade options are plentiful.

Many of Canada's chartered banks have re - entered the equipment leasing market. While credit criteria and standards are very high it’s no surprise that rates and terms are great. Typically banks will only do lease to own type transactions. Don't expect your bank to offer a computer upgrade option on your technology financing needs!

Using an experienced Canadian business financing advisor for your needs might often be the perfect solution to size up the entire market at once - with no financial or time investment by yourself. Talk about a win / win! Working with a respected and credible party can add value, reduce pricing, and enhance terms and benefits to your lease equipment needs when you need a leasing company 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 10 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-equipment-leasing-company-financing.html



7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com

Franchise Loans In Canada . Don’t Let A Franchisee Financing Loan Be A Disaster To Your Success !

Avoiding a Franchise Finance Disaster


OVERVIEW – Information on franchise loans in Canada . What is the secret to proper franchisee financing loan approval and success for the Canadian entrepreneur?



Franchise loans in Canada. Either not getting the one you want or need just might be a disaster

when it comes to your entrepreneurial dream, which all of a sudden appears to have gone up in smoke!

When all of your plans go awry when it comes to your franchisee financing loan almost everything is at risk, including your planning, potential franchisee fees or down payments you have made, deposits on a premises, etc. Let's examine some key elements of Canadian franchise finance success.

Financing success in the franchise industry will come from both you and one or a combination of several franchising lenders. A common belief which we can dispel pretty quickly for you is that your franchisor is not going to be the one that plays a major role in the financing of your business - We guess you can say they are with your morally and spiritually, but not financially! Any form of assistance your franchisor might provide will typically be indirect in nature, sometimes in the form of a referral to a lending institution or a Canadian business financing advisor.

All business require start up capital from the owners, so don't think that franchising in Canada is any different. That is your owner contribution when it comes to financing the key elements of your new business - items such as construction, leaseholds, equipment, the franchise fee, opening inventory, and potentially even real estate.

Right about here is where many franchises make a huge mistake. And that mistake? It's not focusing or planning for working capital for items such as salaries, wages, lease and loan payments, franchise royalties, etc. When working with clients we are always focusing on the ' working capital ' component of your business plan, not just the start up financing, which often seems to be the sole focus of the franchisee. We could even take that one step further and say that you might want to even start considering at this point an expansion plan if you choose, down the road, to acquire multiple franchise locations, in the same or another industry.

That brings us to the key point of ' experience '. When we apply for jobs and positions in the corporate world our potential employer is focusing on our EXPERIENCE. So that's why its important also to ensure your franchisee financing loan is adjudicated with the idea that you as a business owner have relevant experience in your industry . A solid example is the restaurant and hospitality industry, where long hours and people and operational expertise are critical.

In Canada your franchise loan are not necessarily going to come from a conventional lender. In fact it almost always will not. Your financing will come from:

Specialty franchise lenders
The BIL/CSBF program - (Our preferred choice!)
Leasing companies
Private investors

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in ensuring your franchise finance needs become not a disaster, but a success!

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 10 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-franchisee-financing-loan.html



EMAIL - INFO@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com



















Stan Prokop