Our blog highlights Canadian Business Financing solutions via receivable finance , equipment finance, working capital financing, asset based lending, business acquisition financing,franchise finance, and tax credit monetization via SRED and Film Tax Credits. Our goal is to educate and assist Canadian businesses with their financing needs. You Are Looking For Canadian Business Financing! Welcome to 7 Park Avenue Financial Call Now ! - Direct Line - 416 319 5769
WELCOME !
In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.
Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.
Wednesday, January 23, 2013
Business Finance Solutions And Assistance? Don’t Come Up Short In The ABC’s Of Financing Assistance In Canada
Looking For Clear ABC’S of Business Financing In Canada?
OVERVIEW – Business finance solutions for the Canadian business owner and manager . Financing help and assistance gives your business a solid footing for growth and profits .
Business Finance Solutions. Quite frankly, we knew it all the time. At the risk of sounding like know it alls,
there it was, yesterday, in one of Canada's two leading newspapers.
What was it? It was a full page; yes a full page article entitled ' THE DEFECIT OF FINANCIAL ABC’S’. In it , the author , an executive with the Canadian Federation of Independent Business maintained , with real life examples, that Canadian business owners, certainly in the SME sector , are uncomfortable with ' financial lingo ' , referring to it as a foreign language to many!
Truth be told, we find Pirate Lingo the worst ! Johnny Depp films have made my wife a master of that genre
Another example pointed to in the article - only 2 out of ten could provide proper commentary on things such as balance sheets and cash flow management.
It's of course what we have been preaching ( like a broken record all along?)
on the importance of getting some help in financial solutions, whether that be knowledge assistance, or in our case, financing .
One of the final main points in the article was that the business owner recognizes that they need help and need to invest a bit of time in what is actually a critical factor to long term survival, let alone success.
Canadian business owners and financial managers need to determine how much capital they need both currently and in the intermediate to long term. At that point they can start the search, on their own, or with a trusted advisor, to access those sources of financing.
In Canada some basic financing solutions include the following:
Receivable financing facilities
Equipment leasing
Working Capital Term Loans
Asset Based Lines of Credit
Commercial Canadian chartered bank lines of credit
Franchise financing solutions
Government business loans
Tax Credit Monetization
Contract /PO/Supply chain financing
That's a lot of solutions, and we assure the beleaguered business owner that, unfortunately, each comes with its own lingo.
All of these solutions can apply to both start up and established businesses. Larger corporations of course have access to more esoteric and sophisticated business finance solutions - including securitization, Mergers, Capital pool, IPO's, Mezzanine financing, etc.
It's not only important to determine that you need capital or cash flow in a certain amount, its also important to understanding the timing and various structures of each of the many financial solutions that we've noted above .
Bottom line is that understanding cash flow needs, and solutions will power your business into the next stage of success. Oh, and by the way, some of these solutions might work for all your financing needs, and in certain cases it might be a ' mix and match'
Our bottom line today? Simply that seeking the financing assistance you need might not be the toughest challenge you think it is. Seek out a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and asset monetization needs.
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-finance-solutions-assistance-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
Stan Prokop
Tuesday, January 22, 2013
Leasing Company Search? Don’t Be The Lone Ranger When It comes To Lease Finance Solutions In Canada!
Canadian Equipment Financing – More Than You Think!
When searching for a lease finance solution from a leasing company in Canada it's tempting to go it alone. But you don't have to be the ' Lone Ranger '
when it comes to financing assets in Canada. There's an entire industry out there waiting to help your firm out with the right combination of solutions, rates, structures, etc. Let's explain.
We're the first to forgive Canadian business owners and financial managers for thinking that financing assets is tougher than they think. For the last couple of years it’s been pure ...
well let's diplomatically say ' a challenge ‘to arrange the financing they need for fixed assets.
The good news though is there's a new weather report - and it's sunny! with numerous tools, solutions, and yes leasing company advisors and partners to assist you.
Lease finance transactions are primarily done these days on fixed interest rates, and rates have never been lower. (Depending on credit quality of course!)
Another reason you don't have to go it alone in your financing decision is the fact that you almost won't believe the resources behind the current lease industry in Canada. They include independent private commercial firms, Canadian chartered bank owned / controlled companies, captive finance companies, and even firms that provide bridge loans that are similar in structure to leases, but are accounted for differently on your balance sheet.
Where the business owner/manger needs help these days is really in what type of lease structure most suits their firms needs. The reality is that those needs are driven by tax, accounting, cash flow and interest rate focus. In some cases you see the value of just using the asset and returning it to the lessor or mfr at the end of the term. In that case focus on an operating lease.
If you’re focused on owning the asset and strongly recognize its useful economic life than utilize the concept of lease to own, aka ' capital lease ‘.
If we had to pick one area that clients don't focus on enough (they usually just want to know ' the rate ') we would say it’s the whole area of terms and conditions. While it might be somewhat easy for the leasing company to disguise the interest rate you are paying, it’s a little tougher for them to term, payments, return obligations, and incidental fees, all of which can have a dramatic effect on the winning of losing of asset finance when it comes to your business.
Most businesses, whether it’s true or not feel they are unique in their needs. So how you address strategic, operational and financial issues around asset financing will ultimately determine if you're a lone range. or alternatively maximizing on the info and resources you need to make intelligent business financing decisions.
Want some very free assistance on how not to feel alone when it comes to lease finance in Canada? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your asset acquisition needs.
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-company-lease-finance-canada.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
Monday, January 21, 2013
Receivable Financing Powers Invoice Cash In Canada . Why You Should ( And Perhaps Shouldn’t) Use Factoring For Cash Flow
The Power of Cash Flow Finance Solutions
OVERVIEW – Information on receivable financing as a cash flow solution in Canada . How does invoice cash via factoring suit the need of the growing Canadian business and what do business owners need to know about the importance of working capital management and solutions .
Could you be underestimating the power of a receivable financing arrangement, one that generates invoice cash based on your sales and revenue growth?
Whatever they may wish to call it, ' factoring ', ' invoice discounting ', and ‘a/r finance’ etc the situation just might be that you have underestimated this powerful financing tool. Alternatively you might have been focusing on other solutions that either aren't available for your firm or don’t bring you the liquidity you need. Let's explain.
While a huge portion of Canadian business owners and financial manager’s focus on growth, assets, profits etc they are often forgetting the requirement of cash flow to power their company.
In many ways a solutions such as receivable finance gives you the strongest measure of current and future liquidity. Your creditors, lenders, etc are always watching you, whether you know it or not, in an effort to evaluate the risk of doing business with your firm.
When it comes to invoice cash facility it’s all about short term financing. You are simply monetizing assets, i.e. receivables! to create a cash resource for your firm. Your ability to immediately produce cash from revenue (that’s what factoring does by the way) allows you to avoid potential problems when it comes to lack of working capital and liquidity.
In the old days (unfortunately we remember them!)
companies regularly, even without the legal requirement to prepare a cash flow statement, calculated what was known as a ' source and use ' of funds. It would give the business a solid opinion on whether you were going to be in trouble based upon where all the cash was going.
Today all sorts of financing solutions are available to finance a firm. Some are short term and some are longer term in nature. A/R financing (factoring) is a short term solution to generate cash flow.
While accountants, commercial lenders, even banks will often use rations such as ' current ratio ', and other to determine your liquidity they don’t accurately measure your current challenges in cash flow finance. Factoring delivers on the only thing your business needs to survive and grow - Cash!
We've used a great example over the years of a department store in the U.S. that was called W.T. Grant. Right up to the end things looked great - a huge asset laden balance sheet, profits (on paper) and sales growth. The problem? Assets such as receivables and inventories were growing and weren’t being financed properly. In the end its demise and implosion surprised everyone, however history tells us that if we had focused on cash flow and asset monetization things would have been a lot different. That's a U.S. company example of course, but the Canadian business battlefield is laden with many firms that run out of cash flow. We love reading about those sort of things.
If you want to generate enough cash to immediately solve your working capital needs consider an A/R finance/factoring solution.
Are there times when an Invoice cash facility doesn't work ? We advise clients that have low gross margins or declining sales that receivable finance is not really the best solution as opposed to a concentrated turnaround strategy .
Our recommended facility is a confidential invoice cash facility, one in which you can bill and collect your own receivables.
If cash is critical to your business (hello??!!) seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with a receivable finance solution that makes sense for your firm.
7 PARK AVENUE FINANCIAL
CANADIAN 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 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/receivables-financing-invoice-cash-factoring.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
Sunday, January 20, 2013
Business Financing Challenges ? How Are You Solving The Problem Of Sources Of Capital And Finance In Canada?
What Seems To Be Your Problem .. When It Comes To Business Finance
OVERVIEW – Information on business financing and sources of capital in Canada . How do business owners address the issue of what type of finance makes sense depending on their stage of need and development ?
Here's a question. Are you getting any? What else could we be referring to other than your business financing? In the case of Canadian business it pretty well always comes down to the fact that your company is in a stage , and that stage of development pretty well dictates they type of financing you need, the type of financing you can get, and the amount involved . No mystery there.
So when we sit down with clients and talk about their current failures in raising capital or monetizing assets what seems to be the problem? Do you want to know the answer to that question? We think it’s because a solid majority of business owners and financial managers aren't able to match the sources of capital with their actual needs. Or even more basic, who to turn to when they need some help in making that match.
One glaring mistake we often seem is that many businesses are focused on venture capital and private investors / angel investors, business incubators, etc. The amount of financing that is done in this area is minute compared to the other debt and asset monetization solutions that are in fact available. Sorry to burst your bubble on that one.
The major differentiator in business financing that’s available, as we’ve hinted, is whether your first is in start up or early stage, or if it in fact up, running, and growing. While certain types of non bank financing might seem expensive at times the reality is there is nothing more expensive than giving up equity ownership.
We would say though that for many medium sized firms that are growing, profitable, have good niches, etc that solutions such as an IPO or reverse take over might in fact make sense. In a perfect world, (and we know it’s not) the reality is that successful business financing comes when you have the right mix of capital without giving up any levels of flexibility and ownership.
Can we offer up some solid tips of just conceptually being ‘successful ‘when it comes to business finance in Canada? Consider this: just spending some time on learning ‘the lingo ‘in some of the different types of financing you consider is worth the time. You then will of course be less intimidated. Secondly, look for some of the hidden costs in any financing solution that’s proposed or offered up. Thirdly, look at any source of capital or financing as a journey, without losing track of the big picture. Many of the solutions we work on are in fact intermediate and the business owner and manager forgets they aren’t locked in to any solution forever. So in summary we’re talking about getting to know your sources of finance as well as the techniques and attitude you need to adopt in closing those deals.
Are we able to provide a concise list of sources of capital and financing for the busines owner to consider? We think we can come pretty close. Assuming we are out of the start up phase consider and investigate the following:
The Canadian Govt SBL loan
Equipment financing
Asset based loans
Commercial bank lines of credit
Royalty/Contract Financing
Receivable financing
Inventory Financing
Asset based lending
Tax Credit monetization
Supply chain/PO finance
Unsecured Cash Flow Loans
Mergers
Capital Pool Companies
All of a sudden our comments about learning some of the ‘lingo’ around these might make a lot more sense, right? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with you in completing your journey for business finance capital.
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 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-financing-sources-of-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
Saturday, January 19, 2013
Is The Government SBL Loan For Your Firm? Business Financing That’s Pretty Close To Perfect?
Better than sliced bread? Government guaranteed business loans in Canada
OVERVIEW – Information on the Canadian government SBL ( small business loan ) . Eliminate many of the challenges of business financing by taking advantage of the BIL/CSBF program.
Is business financing via a government SBL loan the best thing since sliced bread?
For the record we've always thought that ' sliced bread' comment is a bit over rated, given than people rarely eat the whole loaf... but we digress...
Business owners in Canada, whether they are a start up or established firm use the BIL/ CSBF program ( that’s the technical name for the program ) either to raise funds for a start up or to grow their business . It's worth spending a moment on the word ' SMALL ' as it is important to note that the program has two key size elements to it:
1. Your business must be new or under 5 Million dollars in actual or projected revenue
2. The loan size is limited to a maximum of $ 350,000.00, which isn’t exactly chump change!
In our experience with clients we use the concept of a short concise road map as the best way to achieve loan financing success when you're looking to complete an SBL loan, either on your own, or utilizing a trusted, experienced advisor.
Let's look at some of the elements, or components of that road map. Key to the whole process is a business plan and cash flow project. That should not scare the would be entrepreneur or business owner , because completing that document is just a common sense overview of you, your experience, your business, and some responsible projections for your growth and cash flow . The cash flow is clearly the key to the document in many ways, as it is there that a final decision is made around your ability to repay the loan.
SBL loans in Canada typically range from 3-7 years. More often than not a 5 year term is the typical loan amortization. Rates are currently just several points over bank prime, and numerous other elements of the financing should appeal to the business owner.
Other key benefits of the loan are:
Only a 25% owner personal guarantee
Repayable without penalty
You can also finance leaseholds, as well as equipment, computer, application software, real estate, etc
Only a 10% permanent equity or down payment scenario is required as your contribution to the financing
We seem to spend a lot of time coaching clients around the fact that the whole process is not as complicated as some people maintain. By the way though, if you are unprepared for an application point of view, or if you by inexperience are working with a banker that doesnt know the program the bad news is that you're doomed to failure.
Contrary to most business owners beliefs your loan approval isn’t really subject to whether the bank has an emotional attachment to your industry. They do have an emotional attachment to high risk and loss though, so that’s where a solid common sense business plans and loan application backup data make total sense. Your plan and loan package simply give the bank, and the government as your guarantor a strong sense that you know where you are going.
One final tip or piece of advice - ensure your package reflects something that appeals to a banker, not a venture capitalist. The typical VC is looking for high growth and tremendous profits and valuations. Your government SBL business loan application should reflect basic loan repayment. Simple as that!
Need help? Seek out and speak to a trusted credible and experienced Canadian busines financing advisor who can help you limit personal risk, fine tune your plan, ensure financials make sense, and ensure you've answered the key questions .
7 PARK AVENUE FINANCIAL
CANADIAN GOVERNMENT SBL LOANS 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/government-sbl-loan-business-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
Stan Prokop
Friday, January 18, 2013
OMG ! Tax Credit Financing Is Alive And Well For SRED And Film And Animation Video Incentive Credits In Canada. Yes You Can!
Is That Weird Or What – You Can Finance Tax Credits In Canada?!
OVERVIEW – Information on tax credit financing in Canada . Sred ( SR&ED) film, tv and video animation credits can all be financed / monetized for cash flow and working capital .
You're forgiven. Simple as that. For what ? For not knowing that tax credits can be financed in Canada ; and we're talking about two specific ones, the SRED ( aka SR&ED) non refundable tax incentive, as well as film , TV and animation FX credits .
Tax credit financing is simple relatively unheard of unless you're familiar with the industry , or even better, have a need for cash flow and working capital for your company or specific project .
Some have called it a lucky break, whatever you choose to call it monetizing tax credits in Canada can help you access capital needed.
As we said we're focusing on two key types of tax credits - one related broadly to the film and TV industry, and the other related to Canadian research and tax credits.
Let's focus on the former first. The Canadian government, on a combined federal and provincial level spends hundreds of millions on what they term as incentives for the film, TV and animation industry. As the borders broaden for these genres some refer to them as ' transmedia'.
While it's no secret that government budget cutbacks are pretty well everywhere these days to the surprise of most the film / television production tax credits remain strongly in place. In Canada these credits are a combined credit at both the federal and provincial levels. Generally speaking all provinces have a program in place; the reality is that British Columbia, Ontario and Quebec seem to have the brunt of the action when it comes to actual content filming, production, etc.
From the governments perspective Canada reaps economic benefit from the industry, i.e. employment, taxation, cultural attributes, etc. And if you're an American production shooting or producing in Canada you are still eligible for the tax credits, as well as the financing. At the end of the day we can simply say that the larger the production the larger the tax credit and available cash flow if you choose the financing route.
While the rules for qualifying for and calculating tax credits might be considered complex by some (not if you have a good tax credit accountant) the actual financing of these claims is a lot simpler. Being able to provide both a realistic budget , as well as domiciling your project in a special purpose entity , as well as being able to validate your actual spend via payrolls, purchases, etc is key to the financing of your claims.
Financing of film, TV and animation credits (animation credits seem to be the fasted growing part of the industry) is typically done on a ' bridge loan' type basis. Approximately 70% of your claim is advanced to your project, based on the tax credit, once you have filed. The balance is paid to your firm on receipt of your federal and provincial funds, less the financing costs which vary depending on size of claim, quality of your project / mgmt team, etc.
Let's move on to our second type of tax credit financing we're covering today, that's the SRED program.
Again, billions have been committed to the program, and despite some radical updates to the program we can safely reiterate that your SR&ED tax credits can be financed also. Claims are financed in relatively the same manner, it 70% loan to value, and no payments are made during the course of the ' bridge loan '. The most interesting part of SR&ED financing is that some newer finance innovations are in place - including the ability to finance next years claim before you have filed. And in some cases an actual business line of credit can be set up allowing you to draw funds for your spend . That's creativity!
And the requirements for a SRED financing? It's not rocket science, unlike some of the actual research itself. You need to demonstrate you can produce business financials, your claim should be prepared by a qualified SRED consultant, and you need to be in a position to allow the claim to be collateralized if in fact some other financing party to your company is claiming security on the SRED. That’s usually achieved by a simple postponement of claim in favor of your SRED finance firm.
So our bottom line today - whether you're part of Hollywood North, or in the lab or on the shop floor you have access to a very powerful tax credit financing that is both creative , flexible, and provides capital for your company or project .
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your SRED or film/tv/video tax credit financing needs .
7 PARK AVENUE FINANCIAL
CANADIAN TAX CREDIT 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/tax-credit-financing-sred-film-video-credits-tv.html
Stan Prokop
Thursday, January 17, 2013
Get Rid Of Business Line Of Credit Phobia . Why Asset Based Lending Via An ABL LOC Works !
Business Credit Lines In Canada . Are There Options?
OVERVIEW – Information on the business line of credit known as ABL Asset Based Lending facilities . Why this credit facility eliminates business financing fears.
The business line of credit. Many entrepreneurs often fail to achieve the financing they need if not for the reason that they simply have a bit of a phobia
around the issue. We're told that a phobia is an ' irrational fear of a specific object or activity ... leading to a compelling desire to avoid it '.
Unfortunately , we can't afford to Not address business financing!
Could that be the case with many Canadian business owners and financial managers? In discussions with them we certainly think that might be the situation . Let's try and cure that phobia. And the way in which we think we can demonstrate that is to show you that your firm is in fact very viable when it comes to business financing - it's just that you might not know where to go and what sources of lending might be optimal for your firm.
Enter the ABL , which is an asset based lending arrangement that mirrors in daily activity a commercial bank line of credit - its simply a bit easier to achieve and in many cases delivers more . That's what Canadian business financing is all about, right?
We often feel that Canadian businesses don't achieve the bank financing they need because the requirements of such a facility, as low priced as it is, are simply too narrow to allow your business to ' fit in’. Your firm needs to fit what the finance and credit folks call ' THE BOX '- If you don't fit you don't belong.
Bank commercial credit lines, as opposed to our ABL solution , require that you can produce sound financials- Repayment is clearly linked to your balance sheet and cash flow. While the approval process in Canadian banking can only be described as somewhat... shall we say ' rigorous' (as opposed to painful?) The reality is of course that the low rates associated with bank financing alone make that journey often worth it and Canadian banks are among the best on the planet .
So if you can pass the financial tests such as debt to equity, cash flow coverage, profitability, etc it’s definitely with it to purse Canadian chartered bank lines of credit. In the old days we spoke of the 5 C's of bank credit approval. They included your personal character and finances, cash flow capacity, collateral company and personal, capital or equity, and, dare we finish with ' comfort and confidence ' by the bank in you or your company.
But what happens when your business can't meet bank criteria? The reality is that an asset based lending solution, commonly known as an ABL line of credit is in fact the perfect solution you were looking for - you just didn’t know it existed.
Asset based credit lines are more often than not delivered by commercial non bank finance companies. The facilities revolve, just like the bank line, and the total focus of getting approved revolves solely around the value of the business assets. And what are those assets? They include receivable, inventory, fixed assets, and even real estate if that is in your company asset mix.
The ABL facility is most appropriate for firms that have assets, can’t get Canadian bank financing, and are experiencing situations such as high growth, turn around, temporary under capitalization, etc.
Asset based lending lines of credit are sometimes priced the same as bank lines if you have a large facility in the 5-10 Million dollar range, but the majority of facilities range from 250k and upwards , and are priced higher thank bank rates. If you have good assets and can produce proper financial reporting on items such as receivables and inventory you are in a position to get approved - fairly quickly all things being equal.
Have we cured that phobia about being able to get a proper business line of credit in place? We hope so. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs, and give your real scoop on ' ABL '.
7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS LINE OF CREDIT 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/abl-line-of-credit-asset-based-lending-business.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