Is The ABL Facility The Type Of Lending You Are Looking For In A Business Credit Line?

You’ve Got Probable Cause To Check Out Asset Based lines of Credit !

OVERVIEW – Information on the benefits of an ABL ( asset based line of credit ) commercial revolving line of credit in Canada . How this business lending has revolutionized business credit lines.





An ABL Facility? We checked and its true, you've got ' probable cause ' to check out a unique form of lending that competes with Canadian banks when it comes to a lending facility that you need to facilitate a business credit line . Let's explain!

When we're watching our favorite crime shows on TV these days (CSI Brampton, etc) we’re always been enamored by that term probable cause.
Simply speaking it’s a ' reasonable grounds for belief '. And that’s our point today when it comes to our suggestion that you check out thoroughly the ABL facility, more commonly known as the asset based line of credit.

It's simply an alternative to bank financing. Whereas banks place a tremendous amount of focus on you cash flow and all the balance sheet and income statement ratios that come with that the asset based loan focuses 99.99% on your assets - typically receivables, inventory, equipment, and even your company owned real estate if that’s applicable .

Our Canadian banks are so strong and well known for growth, profits and conservatism simply because they are regulated, and enforce very strict rules around how much capital they can lend out , guarantees, and our previously mentioned ' cash flow coverage ' for any debt you have with them or anyone else .

The benefit to all that - it’s pretty obvious - unlimited capital with great rates, for those that qualify.

What if though? What if you don't qualify for a Canadian chartered bank line of credit? Typically you find yourself in one of the following situations - you have high or volatile growth, you’re just out of the start up stage, and on any given day you seem to be using cash, not generating a lot of it!

All the reasons and facts that we're provided for you above simply enforce why asset based lending via the ' ABL ' is getting more popular, It focuses on the underlying assets you have and monetizes them into one single borrowing facility .

The asset based lender is typically what us finance folks refer to as a ' non bank, non regulated lender '. The connotation is of course that they can do whatever they want within their firms own borrowing guidelines based on their management experience. They are also focused daily on managing the risk of the asset based loan and line of credit facilities they have provided to your term. Typically that means you're reporting on your financials and assets in a more regular fashion, monthly for sure. Some of our clients view that as a negative - we explain they should consider that in our experience many firms that report and understand their financial progress more regularly... guess what... DO BETTER!

The somewhat not so secret in ABL facilities is that many Canadian banks recognized that this is indeed a viable way to lend - so they have set up small divisions in their banks to also consider asset based lines of credit. Boy, talk about being two faced! Just kidding of course, because no one has more respect for our Canadian banks than us.

Asset based lines of credit work because they provide a lot more liquidity also. Receivables are financed at 90%, inventory is financed at more generous levels once your ABL lending firm understands your business, and they even throw your fixed assets into your daily borrowing mix. That’s liquidity 101!

Have we proven your PROBABLE CAUSE? We think so, hope so, so seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business line of credit needs.

7 PARK AVENUE FINANCIAL
CANADIAN ASSET BASED 'ABL' LINES 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-facility-lending.html




















Stan Prokop

Which Cash Flow Lenders Can Solve Your Funding Problems In Canada?

Don’t Forget These Two Rules For Your Company To Be A Cash Flow Gusher!

OVERVIEW – Information on solutions delivered by cash flow lenders for funding Canadian businesses that are addressing their working capital challenges for survival and growth .




Can cash flow lenders and funding solve or fix the challenges that Canadian business owners and managers face? We’re not exactly sure your firm can become a ' cash flow gusher ' but the reality is that these sorts of solutions can stabilize and help grow your company. Let's explain.

We're taking somewhat of a large liberty in re- doing what of Warren Buffets great sayings - our version as follows:

‘There are only 2 rules in business. Rule # 1- generate cash flow. Rule # 2 - (here it comes) ' Don't forget Rule # 1.

In any business there are going to be some times when you 'veer off the road'

and make some mistakes, and becoming 'cash flow tight' temporarily will no doubt be one of them. So some wise advice is to get to know the potential solutions to cash flow financing in advance - simply investing a bit of time in understanding what your options are.

What are those options then? Some of them you may have heard of, perhaps your firm are even using them. In other cases the terminology might be new and you'll have to trust us that they are worth checking into.

And those solutions? They include:

Unsecured cash flow loans
Receivable financing
Inventory finance
Asset based non - bank lines of credit
Commercial bank credit facilities
Supply chain / PO / Contract finance
Securitization
Tax credit monetization
Sale leasebacks

Oh, by the way, all of these facilities simply monetize your assets, so you are not in any case taking on long term debt. We're pretty sure the revered Mr. Buffett would give us thumbs up on that one.

So how do you know when you need one of several of these solutions? Larger firms take a look at some reliable indicators of measuring your progress in the cash flow area.

Oh and by the way, these ratios (we call them relationships) are available to the small and medium sized business owner; they are just too busy putting out cash flow brush fires to check them out. Point hopefully well made!?

In case you haven’t figure it out by now these same ratios or relationships are in fact used by pretty well anyone looking to lend your firm money . They help to evaluate risk and are solid reflection of how you're managing your assets and resources in general. Ultimately they are of course looking for assurance that you can meet the payments in their loans and financing. One final point - having a bit of handle on these numbers allows you to foresee future problems.

The ratio/relationships you should have a solid handle on include the working capital ratio, cash flow coverage, debt to equity, and our personal favorite operating cash flow. The latter is the real world indicator of whets happening as there can be a lot of mistakes hiding behind a few of those other numbers in your financial stats.

If you want to strive to make your business more of a 'gusher' than a user seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can ensure solutions from cash flow lenders bring your business the funding it needs .

P.S. And don't forget rule # 2!!

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS CASH FLOW FINANCING AND FUNDING




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-flow-lenders-funding.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

Are Used Equipment Leasing and Financing Loans Good For Your Company ?

A New Trend ! ? Used Equipt. Finance Continues To Be Popular

OVERVIEW – Information on the benefits, and risks of used equipment leasing and financing in Canada . Asset loans on previously owned equipment just might make sense !



Yes you can. Simple as that. Whats that ..? .... Just that unknown to many business owners and financial managers is the fact that many assets they choose to purchase can in fact be financed if they are ' used’, or pre -owned.

Safe to say there are some issues, which we will hopefully cover off, but the reality is, whether its bridge loans solutions, or financing under the general category of equipment lease.. you can finance previously owned assets.

Part of the challenge of the finance of a used asset is simply that some firms actually thrive on and understand the functions of this type of deal, and some, by policy or otherwise (inexperience, etc) do not.

Part of the issue revolves around whether the financing is approved on the basis of your overall financial condition, or, if in fact that plays a secondary role to the actual value of the asset. We suppose if you are a lender the best of each world would apply, but it doesn’t always work out like that!

In some cases the actual rate and structure of your transaction might look a little different if you are financing a used asset. That might mean, for example, a shorter lease term, a down payment, or a higher interest rate, all of which might reflect your lessor or lenders overall view of the transaction .

Using technology

as an example it is very achievable to do a sale leaseback on your tech and computer assets. However, safe to say that market values will no doubt reflect a shorter term in your lease or loan.

In recent years an interesting phenomenon has take place in Canada, as various traditional auction and appraisal firms got into the finance business. Why? Simply because they are very able to recognize the true value of a marketable asset, including finding the right end user if things go wrong. Also the emergence of the internet allows many finance firms to continually test the value of certain assets they finance in their portfolios. That’s a good thing. At least for them.

In financing used equipment under leases or loans you should well expect to have an asset appraised in some manner. It might be a simple ' desk appraisal ' - that being done by your finance or lease company at their premises via research. In certain other instances fully expect to bear the cost of a third party independent appraisal to validate the condition and market value of the asset.

One challenge that sometimes arises in used equipment financing is that you have either sourced the asset in a different country (certainly quite common in the Canada / U.S. scenario), and perhaps further complicated by the fact that it’s a private sale. By that is meant that you are buying it from another firm or actual user, not a dealer, distributor, retailer, etc. If clear title can be proven you should be in a good position to still obtain the financing you need for the asset, but a caution that it’s certainly not a guarantee.

Clearly you can protect yourself in a number of ways, including actually visiting and inspecting the asset, insuring it, providing only a down payment, or insisting on some sort of final acceptance criteria .

You also will want to enter into either a capital lease or an operating lease that adequately reflects the remaining useful life of the asset.

Our bottom line? Simply that used equipment and assets in many categories can be financed under the right circumstances. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your used asset finance needs.

7 PARK AVENUE FINANCIAL
CANADIAN EQUIPMENT LEASING AND 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/used-equipment-leasing-financing-loans.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

Factoring Account Receivable Cash Flow Advantages

ROLL CALL ! Who’s Up To Explain A/R Financing Benefits?



OVERVIEW – Information on factoring account receivable advantages in Canada . Cash flow financing is effective when the business owner/manager understands costs and benefits




Feel totally familiar with factoring account receivable advantages in the Canadian landscape? We think its time for a ' cash flow ' roll call!

One method in which Canadian business owners and financial managers can fix the proverbial ' cash flow is tight ‘problem is to enter into an agreement with a finance firm to sell receivables. It's a more simple process than you think. You are advanced 90% of your sales, as you generate them, and the 10%, a ' holdback ' of sorts is remitted to you promptly, less financing costs, once your clients have paid the invoice. Pretty simple, right?

Some of the advantages of this type of business financing seem more obvious than others, the most obvious being that you are no longer in ' wait ' mode, you're in ' cash flow' mode! With technology and banking systems as sophisticated as they are today you typically get your funds the same day!

Broadly speaking factoring account receivable finance is available to every type of firm, from start up to Major Corporation. We certainly can't make that statement about all other types of Canadian business financing.

The actual cost of invoice financing tends to be the most, shall we say ' controversial ‘subject when we sit down and talk to clients. Like many other types of alternative finance we maintain that cash flow financing using factoring is about as mainstream as you can get these days. And that cost of financing, typically in the 1.5-2% per month range is offset when business owners consider that they are not taking on debt, they don’t need to sell equity or give up ownership, or , in many cases , find themselves being unable to achieve traditional financing through our Chartered bank system .

In receivable finance you are only paying for facilities you have drawn down on - that's important.

One other advantage of using this method of financing is the comfort that it brings knowing Canadian firms can utilize the financing for their Canadian and U.S. clients - currencies and geography are not an issue. If your firm in fact has foreign receivables they typically need to have some credit insurance in place - but that’s also the case if you were able to secure commercial bank financing for those same sales.

There are of course other alternatives to factoring - they might include business credit cards, working capital term loans, external collateral, but when you consider the ease and simplicity of the factoring process the other solutions often pale in comparison. You in effect are able to turn your company into a cash flow machine. generating sales and cash at the same time.

It's not a perfect world of course, so your firm has to have some decent gross margin to absorb the 1-2% finance charges, and you have to spend some time understanding the approval, process, and types of factoring available.

Do we have one favorite recommended solution? We do. It’s a type of factoring known as ' confidential invoice finance ' - allowing you to bill and collect your own A/R, retaining total control of the client relationship. Not all facilities offer you that, so seek out a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing the factoring account receivable advantages you have been looking for to enhance your cash flow prospects.

7 PARK AVENUE FINANCIAL
CANADIAN RECEIVABLE FACTORING 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-account-receivable-advantages-cash-flow.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

Financing Tips For Entrepreneurs

Here's and interview we did on Financing Tips For Entrepreneurs :


http://www.evancarmichael.com/blog/2013/02/02/stan-prokops-1-tip-for-entrepreneurs/

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.


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

Business Financing Options In Canada . Don’t Make These Mistakes!

Don’t get us wrong, but we don’t believe in Angels !

OVERVIEW – Information on business financing options in Canada . Sources of financing and alternatives just might be more plentiful than the business owner or manager might think!




Business finance options in Canada. And oh yes, we don’t believe in angels! We’re not talking about those heavenly ones, just primarily VC’s and angel investors.

Truth be told we acknowledge and respect them of course, it’s just that we cringe when we talk to many clients who focus on these two sources of capital when the reality is that 98% of the funding your firm needs is probably only available from debt financing, and asset monetization for working capital or cash flow. That ' equity capital' search unless for firm simply wastes valuable time – unless you’re ready. Many are not!

While the sources of funding for the Canadian business owner and financial manager might seem plentiful in the TV commercials or newspaper, the real world tells us that there are a lot of trick obstacles facing the owner /manager looking for financing options.

Is there a way to change all that and make ensure that the odds aren' so stacked against you. We think there is and it comes down to simply knowing what business finance options are available to you and picking the one ( or ones ) that suits your operational or growth needs,

So how do you analyze and choose debt or asset monetization options. Our clients think it has to be a Canadian chartered bank solution. And we're the first to start working on that , provided you have cash flow , collateral, profits, a clean balance sheet, and solid owner personal credit histories. That's tough to achieve these days for many, which still leaves a number of financing solutions on the table.

They include:

Asset based lending

Receivable /Invoice Cash Financing

Government guaranteed SBL loans

Equipment finance /leasing

Non bank asset lines of revolving credit

Tax Credit Monetization

PO/ Supply chain financing

Sale leasebacks

Securitization/mezzanine financing

P.S. We’re e not fans of ' friends and family loans' as they make those warm family gatherings somewhat uncomfortable!!

You might not know it but in a lot of cases your borrowing power is already pre-determined if you're already in business and have assets. Receivables can be financed up to 90%, inventory financing ranges from 25-60%, and appraised assets can be financed anywhere from 50- 80% of their true value. Many clients we work with consider refinancing their buildings and assets as a great source of working capital when the rate and structure is suitable.


The goods news about these solutions, again with apologies to all those great angel investors and venture capitalists in Canada, is that you aren't required to give up equity ownership when you source any one of these options.



So , yes you can consider those angels and VC's with the searching and managing that comes with that journey, but remember that there are a lot of straightforward financing options readily available for your firm if you have growth prospects and assets .

So, cancel that IPO (really, what were you thinking?!) and seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs. Eliminate the complications and the risk, and get the business financing options you need.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS FINANCING OPTIONS 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 :


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

Will The Small Business Financing Loan Still Work ? The Status Of SBL Loans In Canada

How Will Changes In The SBL Loan Program Affect Canadian Business Financing


OVERVIEW – Information on sbl loans and the government small business financing loan in Canada . Will changes in pricing and approvals affect borrowing ability and success ?

Heard the news?

Those drums are rumbling in the distance. The small business financing loan, aka ' SBL LOANS ‘may be getting a bit more expensive. We're pretty old ourselves and we actually can't remember when there has been a change in pricing to the ' SBL ‘- Canada's revered government guaranteed loan.

So is the program working ? Naturally the press and all the financial pundits (We suppose that includes us!) are weighing in on bank profits on this program, higher costs to the borrower, and the overall merits of the program.

Current interest rates under the program are 3% over prime and the scuttlebutt seems to be that the loan pricing might increase by 3/4 of 1%. It's probably just us because we ourselves don’t borrow a lot, but with rates an all time historic lows in Canada we're not quite sure everyone should be gnashing those teeth.

The program rate increase under this loan will supposedly over a multi-year period cost borrowers hundreds of millions more. That math should be quite acceptable though, given the program puts out Billions of dollars every year in loans to the SME sector in Canada.

When we talk to our clients about the program we focus on common sense, so let’s look at a real world example. The current borrowing cap under the program is $350,000.00. The most typical amortization or ‘loan term’ that we seek and recommend for our own clients tends to be 5 years.

So SBL loans on a 5 year term, for 350k of financing would currently cost you: $ 6766/m0
Using the new proposed pricing the loan payment would be: $ 6889/mo
We’ll let you mull over difference ! So whets our point here - lets not beat around the bush. It's simply that if the SME sector in Canada can achieve financing at 3 3/4% over prime for equipment and leasehold financing they might not be able to achieve otherwise is that really a bad thing.


Consider that the programs other features include:


A low personal guarantee

Repayable without penalty

Terms from 2-7 years

The ability to actually finance real estate under the program

A 10% only down payment /permanent equity requirement

Do we need to go on? We think you get the point, which is that at any interest rate SBL financing is a great deal when all terms and conditions are considered.

We hear often that the banks don’t make a lot of money on the program and that there is what one writer recently termed ' an administrative burden '.
So where does the business owner /manager fit in. They simply want access to financing that they might not otherwise be able to achieve. That's still a tough haul if you're a service business because the program only finances assets and leaseholds and real estate.

The bottom line? We think the Small Business Financing Loan, on balance, is still a great deal for those firms who have less than 5 Million dollars in annual or budgeted revenue, which is a qualifier under the program. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with SBL loans to start or grow your business.

P.S. The program is perfectly suited for the franchise industry also.

7 PARK AVENUE FINANCIAL
CANADIAN SBL LOANS 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/small-business-financing-loan-sbl-loans.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