Working Capital Financing . Introducing A Way To Manage And Finance Your Inventory And Receivable Investments

Working capital quality, not quantity!



OVERVIEW – Information on successful working capital and cash flow solutions around inventory financing and receivable finance





Working capital financing in Canada. As a business owner or financial manager are you 100% comfortable in knowing the signals of when you really have to better manage your business current assets? More so, do you know the tools and solutions that come with that challenge? We think we do, so let’s dig in!

When we talk to certain clients in hindsight around their inventory finance and the receivable investments challenges they make on a day to day basis they are often surprised about how little of some key basics they in fact did not know.

That's because it’s difficult for some to cut through all the finance and financial statement jargon and concepts to figure out the real root of some of those challenges.

What aspect of business couldn’t be more complicated today, whether it’s financing, growing your company, staying on top of the competition, etc?
We're NOT suggesting industrial espionage, but if you knew your competitor had very slow moving inventory or uncollectible or very slow receivables you would be in a great position of profit and exploit market opportunities.

That goes for your firm to, which brings us to the key subject today, the quality of your current assets - i.e. A/R, inventory, and the need and ability to finance them properly.

One of the best ways you can interpret critical upcoming problems in our working capital and cash flow situation revolves around a few ' slick tricks' solutions, as we call them, around your A/R and inventories.

The way most people and even stock analysts look at a company receivable or industry status is to calculate day’s sales outstanding, i.e. DSO, or inventory turns.

But wait; there is even a better way to look at all this! And that is to monitor those two asset categories as they pertain to sales going up or down. If you set up a simple tracking system that captures your sales and a/r and inventory amounts over specific periods of times, i.e. monthly, quarterly, etc ( By the time you get to annually we can guarantee you it will be too late !) you will be able to spot poor collections and growing inventories.

You just might find that sales growth, which hides a lot of problems, is in fact fast becoming your biggest problem. And that's even when your income statement show you're making a profit. (Yes, profitable companies can go under!)

So the bottom line is that growth in A/R and inventory with stable or declining sales will signal huge upcoming cash flow problems. At the same time, the Canadian business owner or manager will get a lot of comfort knowing that if their sales are growing and a/r and inventories are staying the same, declining, or growing commensurately will mean you're a winner in the cash flow and working capital game .

Let's try and illustrate a quick example, which is tougher to do when you don't have a chart in front of you. But let's assume you are tracking A/R, inventory, and sales on a simple chart or spreadsheet. Let's assume for our sample that sales are growing by 20% ( congratulations by the way ) but a/r seems to have ballooned to 100% in that same period?!

What has happened? Simply that yours sales success has shifted problems into your A/R account. And that affects cash flow and cash in the bank.

The solution? Monitor those current assets as we have suggested. And speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with working capital, receivable financing, and inventory finance solutions such as:

A/R Discounting
Supply chain/PO finance
Non bank asset based lines of credit
Commercial bank loans,



Etc!

You've got the power now!







7 PARK AVENUE FINANCIAL
CANADIAN WORKING CAPITAL FINANCING


Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 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/inventory-receivable-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

Commercial Loan And Business Financing For The Story Credit In Canada

Could Your Company Be The Story ? We’re Going To Tell You Where To Go!




OVERVIEW – . Information on the concept of a ‘ story credit ‘ in Canada . What this term means and how it affects your firms ability to obtain a commercial loan and other types of business financing




Difficulties in obtaining a commercial loan or business financing for your established or start up firm in Canada? First of all you're not alone, and secondly it's because you're what's known as a ' story credit ‘. That's the term that commercial lenders use in Canada when financing needs to be structured uniquely to your firm’s current situation /status. Let's explain!

Given that our Canadian chartered banks tend to be the first ' go to ' when you're looking for financing it's no surprise we often hear the term ' where to go when the bank says ' no' .. ' .. or never.

So when the business owner finds himself or herself in that situation it clearly is a time when they are looking for some real world advice on financing solutions that still might be available. And they are available, it’s just that you need the help an expertise to find and access them successfully.

In a lot of situations we see when talking to clients it’s about not getting enough. By that of course we mean that you can view your financing as your firm’s need to be fed, it’s your job to ensure that appetite is satisfied.

The concept of a story credit still pertains sometimes to traditional financing, but more often than not it comes under the umbrella of alternative finance. It's simply that your firm, for whatever reason, is not ' GRADE A ' today. So you need to properly explain ' the story’

When you're a ' story credit ‘it’s never as important to ensure you are prepared when you are looking for business financing. This is definitely not the case of looking in the yellow pages and making a call - there a bit of work and preparation required! In fact it’s been our observation that a lot of clients we meet have failed in the past to raise the financing they need simply because they present their story properly or fail to document correctly their need for financing.

It's important also to differentiate between equity and debt financing- we're focusing in our discussion here on debt financing and asset monetization. Top finance experts agree that debt financing is pretty well always more costly than equity financing, but the wrong type of debt financing has disastrous consequences.

Don't get us wrong , we're all for more equity, it's just that the journey in dealing with angel investors, friends and family, and initial public offerings or capital pools and VC's can be one of the longest roads you'll take .

There are some sources of debt financing that in fact can be quite creative that you may wish to explore - these might be Community Futures loans, Royalty Financing, loans from high net worth private investors, and even the government?

Did we just say the government?! Well in facto for many firms the government small business loan is a great way to access capital in your start up or early stage. Close to 8000 firms a year, including your competitors, rely on this program which offers great rates, terms, and structures and low personal guarantees.

Other forms of ' story credit' financing when accessing a commercial loan.
They include:

Factoring receivables
Supply chain/PO Finance
Asset based non bank lines of credit
Financing SR&ED tax credits
Leasing Companies which consider less than 'GRADE A 'credits

Our key point today? It simply that if your firm has a unique challenge, or is in the throes of a turnaround you still are eligible for commercial loan and asset finance in Canada.

Seek out and speak to a trusted, credible and experienced Canadian Business Financing Advisor who can assist you with your story credit business finance needs.



Commercial loan business financing story 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/commercial-loan-business-financing-story-credit.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

Government Loans For New Business . The SBL Loan Program In Canada

BREAKING NEWS! YOU ARE ELIGIBLE TO APPLY FOR A GOVERNMENT BUSINESS LOAN



OVERVIEW – .Information on government loans for new business in Canada. The benefits of the SBL loan are substantial for the Canadian entrepreneur and business owner




It shouldn't be, but it is. You are probably eligible for government loans for new business in Canada. The term many people use for this financing is the ' SBL LOAN '. Oh, by the way although thousands of business owners and entrepreneurs use the program for new or ' start up ' businesses you can still be an established business and use the program. Essentially the only rule here is that your business must be under $5,000,000.00 in revenue/sales.

In talking to clients all day everyday one thing is clear, whether its reality or perception the general feeling is that Canada’s chartered banks aren’t doing cartwheels when it comes to being interested in business financing in the SME sector. Those certainly arent the type of bankers we're hanging out with, so we suppose you're just handing out with the wrong crowd!

Experts offer up several reasons re the bank lending scenario - reasons given include small business loans cant be packaged and sold like mortgages, but still require a lot of work, admin, underwriting, etc Many people also offer up that small business loans aren't profitable . Who knows?

Rather than weigh in the eternal discussion of bank lending to business in Canada let's focus in on the benefits of the SBL program. I guess you could say we're staying positive!

The focus around government loans for new business is simply serving the purpose of addressing your financing needs for two asset categories - equipment and leaseholds. (Real estate is allowed also -however the program just doesnt seem to be used much in this regard)

One of the key ' misunderstandings ' around the SBL loan is that isn’t a cash loan or that it can be used to finance receivables and inventory, or goodwill, or franchise fees. Not the case. End of story.

It's important for the Canadian entrepreneur to understand that because the program is SME based that the owner/owners must have a reasonable personal credit history. By that, in Canada we mean a credit bureau score of 650+.

There are reasons why you wouldn’t be approved for an SBL loan in Canada. Your greatest chances of success are when you have a solid business plan or executive summary, as well as a cash flow that represents how you are going to generate profits and cash flow. We don’t recommend showing that you plan to lose money or use cash, not generate it! Some do that, we don't!

Many business owners we meet can't explain or articulate their business, how they make money and key issues in your industry.

Back to those key benefits of government loans for new business:

They include:

5-7 year amortization terms
Competitive interest rates - currently 3% over prime
Low personal guarantee (25% of your loan amount)
Repayment without penalty

Getting approved for an SBL loan is clearly a combination of art and science - we've shared a lot of the ' science '. Seeking an experienced, credible and trusted Canadian business financing advisor will help you match that science with the art of 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-loans-for-new-business-sbl-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

Does ABL Loan Facility Financing Give Your Business Credit Needs The Wind In Your Sails You Require?

Looking for a business credit finance boost ?



OVERVIEW – Information on the ABL loan facility financing known as an asset based business credit line




Business credit in Canada. Can An ABL Loan facility financing really provide you with that business ' wind in your sails ' your company needs to generate ongoing working capital and cash flow needs? We think so, and here's why! Let's dig in.

These days, as we’ve noted recently, there isn’t a day when we don’t hear abut the challenges of companies ' stumbling ' when it comes to their challenges in finding working capita and even long term financing. (Today we're talking about working capital/ cash flow)

However, the good news about the revolving door is that it when ' the bank says no ' or the bank says ' yes, but not that much ' there is always an ABL asset based lender willing to step up to bat .

The simple reason that asset based lenders provide the business credit you need is that they are solely focused on the amount, quality and monitoring of your business assets. Those assets? They are receivables, inventory, equipment, and in some cases real estate if that pertains. Our Canadian chartered banks in their wisdom focus on financial statements, ratios, covenants, and outside guarantees. Who is right? We won’t weigh in on that one today; we'll simply say that each institution, the bank and the ABL lender is one of two options to finance your business- we'll let you decide which one works best. While ABL solutions are often more expensive (not always) that’s clearly one of the reasons why companies gravitate to bank financing first. By the way, Asset based lending firms tend to be non bank commercial financing companies, although some Canadian chartered banks have entered the ABL market.

An ABL loan or operating revolver as it is termed offers your firm continuous working capital as long as you have those assets. The key beauty of this type of borrowing is that it grows with you; it’s not set in stone once as year as it might be via a bank approval

Who uses ABL? Pretty well every type of firm in Canada - that includes manufacturers, service firms, retailers, and high technology firms. Again, pretty well everybody! Size of these facilities really determines who you deal with and your overall pricing and structure. Small deals start in the 250k range, while larger facilities can easily be in the tens of millions of dollars. Just to show you the spectrum, a start up can have an abl line of credit, and some of Canada's largest and public corporations have abandoned bank financing in favor of ABL business credit.

A key benefit of this type of business line of credit tends to be borrowing power - receivables are margined at 90%, inventory ranges from 20-70% , and appraisals and valuations done on your fixed assets allow them to be thrown into the mix also . Just imagine being able to borrow daily against the value of your fixed assets. That’s ABL power!

Your firms ability to get approved for this type of borrowing will depend on you ability to produce regular and proper financial statements, as well as the need to ensure you can report on current assets on an ongoing basis - i.e. aged receivables, inventory, etc .

Intrigued? As a Canadian business borrower you should be. Seek out and speak to a trusted, credible and experienced Canadian Business Financing advisor who can assist you with your ABL business credit needs.



7 PARK AVENUE FINANCIAL
CANADIAN ABL LOAN 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/abl-loan-facility-financing-business-credit.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

Buy A Franchise. Next Step? Franchising Financing Companies And Solutions !

The Other Half Of The Battle – Financing Your Franchise




OVERVIEW – Information on financial info needed when you buy a franchise in Canada . What franchise financing companies and solutions can help



Buy A Franchise . We guess that's challenge # 1. And # 2? It's of course franchise financing companies and solutions that will allow you to realize on the franchisee dream in Canada. That's our job we guess. Let's dig in.

It goes without saying (but we will anyway) that the goal of every new entrepreneur in the franchise industry is to be successful. Putting a proper financing package together with solutions that match your needs, budget and cash flow is what that's all about.

It's really a combination of financing you need to purchase and acquire the franchise and then funds required to run it. Although most franchises are run on a cash flow positive basis - ie cash sales, etc there still is a working component to your transaction. No matter how carefully you've prepared your budget and cash flows Murphy's Law always seems to kick in on occasion.

In Canada the financing that you secure comes from yourself, that’s the equity component, and one or a combination of debt scenarios - your loan / loans. Financing from debt and equity typically covers franchise fees, equipment, leasehold improvements, and potentially a working capital component. Spending some carefull time on the breakdown of those components will save you a lot of grief in the long run. Oh and by the way your banker or commercial lender needs to see those also!

The goal of every business borrower in Canada is to minimize risk - to that extent you should try and avoid securing personal assets at all cost. One way to do that is via an ' SBL '?

An ‘SBL’..? It's the trade name for the Government of Canada Small Business Loan, and hundreds, if not thousands (we’re not really on a first name basis with the govt) of franchisees utilize this program. It was certainly NOT created to specifically address the needs of franchisees in Canada, but boy has it turned out that way.

So why an SBL franchise loan? Some pretty basic reasons really - low competitive rates, limited personal guarantees, no personal collateral, and flexibility as to repayment without penalty etc. That's a powerful combo of benefits in case you haven’t figured it out already.

Franchisees can of course pay cash for their business purchase, and even contribute their own capital to financing the operations and growth of the franchise. However, we've always guided our clients not to collapse RRSP's, take out collateral
Home mortgages, borrow from friends and family. While those solutions work they quite frankly mix up your personal and business finances in an unhealthy way

If you aren’t securing a Govt small business loan for your franchising you need the assistance of a specialized franchise finance firm. Alternatively other Canadian lenders can assist you with solutions based around equipment finance scenarios.

One suggestion? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your goal to buy a franchise and the solutions available to complete a successful acquisition of a new or existing business in Canada's fastest growing business segment.


7 PARK AVENUE FINANCIAL - CANADIAN FRANCHISE FINANCE EXPERTISE





Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 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/buy-a-franchise-franchising-finance-companies.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

Have Business Funding You’re Proud Of ? Options And Sources Of Cash Flow Financing Revealed !

We Hate It When We’re Right All Along About Business Financing



OVERVIEW – Information on business funding options in Canada . Access To sources of cash flow financing and debt financing might be closer than you think





Business Funding Options in Canada. And we have to say, this is starting to get embarrassing, because it seems as if these days, all of a sudden all the experts seem to agree with what we've been preaching all along. And to prove it? ... There it was again - a major article just the other day in one of Canada's two best daily business papers entitled ‘ CANADIAN BUSINESSES FALTERING DUE TO LACK OF FUNDING ' - Feb 16/2013

Wow, is it just us or is everyone finally catching on? And the gist of the article - summarized it would be as follows:

There is less mid sized companies these days

Competition and the ability to ' access capital ' were driving businesses to failure

Many mid sized firms are getting smaller, not bigger!

And the solution offered in the article - ' MORE RESEARCH’!!!!! ??????


We're all for academia , but we work in the real world everyday, so lets discuss and offer up some real world solutions on Canadian Business Financing ! And we're talking about financing that you can be proud of when it comes to growth, profits and costs commensurate with your credit quality.

So how in fact do you access sources of cash flow when it comes to assessing need and availability of solutions? Canadian business owners are looking for straightforward solutions to finding funding. Those funds are used for starting, funding, or growing your firm.

In fact we feel that many sources are simply overlooked or not even utilized properly. Oh and by the way, there's probably no one single perfect solution for financing your firm - it’s a mix of pros and cons and risk based on amount and type of business funding you're seeking.

Critical to the aspect of sourcing funding for your firm ( that's beside some expert help!) is ensuring you understand both warning signs of capital issues in your company, as well as the criteria required for the solutions. Those two points can save you a lot of time.

As we have hinted, you only will find out the solutions to your financing needs when you recognized proper warning signs and need. Liquidity is very close to the top of the pile! Your ability to operate daily is key to satisfying senior lenders who have financed your firm

In Canada numerous business finance options are available to bolster your firm’s success. They include:

Asset based ABL non bank lines of credit
Sale Leaseback solutions
Receivable financing facilities - aka ' invoice factoring'
Purchase order/ supply chain finance
Tax credit monetization - (SR&ED)
Working capital facilities that combine A/R and inventory
Unsecured cash flow loans
Government Small Business Loans - ‘SBL’

Your ability to manage and finance asset turnover is key to being proud that you have accessed options that make sense for your firm. Seek out and speak to a trusted, credible and experienced trusted credible and experienced Canadian business financing advisor who can assist you with cash flow sources and business funding options.




7 PARK AVENUE FINANCIAL
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/business-funding-options-sources-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

Leasing Companies In Canada You Need To Know This About Equipment Financing

Looking For The Best Solution ?



OVERVIEW – Information on leasing companies in Canada . Equipment financing, when used properly offers the Canadian company great and flexible solutions for their asset finance needs




Leasing companies and equipment financing. Is it possible that this Canadian business finance method addresses all your needs such as cash flow, accounting and tax when it comes to asset acquisition in Canada? We think so and here's why.

The reality of business asset acquisition and replacement needs is that the Canadian business owner wants to optimize the solution around that need. He or she wants options, flexibility and quite frankly less worry or business stress surround the need to purchase equipment assets.

It's been described that the whole process around equipment finance is in fact a ' cycle ‘, and when you learn how to manage and optimize that cycle you're in a winning position . It's not as difficult as you think, it’s simply entering into the right lease structure, ensuring you have and understand your flexibility and rights in the transaction, and then decided at the end of the term what your best options are re: replacement, sale, upgrades, disposition, return, etc.

The dominant form of equipment financing in Canada is probably what the industry calls ' finance leases'. At their basics they are simply full payout transactions with you owning or purchasing the asset at the end of term. The economics to the leasing company are pretty simple - their profit is the spread between what they borrow at and what your lease rate is.

If that sounds a bit boring... we don’t think it is... but... that's when the excitement begins. Many other benefits and features in the whole leasing cycle can kick in , should you choose, to address cash flow management, end of life options ( that's end of life in the lease by the way!) And various renewal and purchase options that maximize the flexibility we've been talking about.

One of those options we're talking about today is fairly under utilized these days. It’s the ' operating' or ' fair market value' lease, which allows you to consider your asset transactions in a term that many lessors call the ' asset life cycle '. That’s because when you utilize this type of transaction you can invoke your right to change your assets, payments, etc during the term of the lease. Operating or ' FMV' leases are very solid solutions when it comes to assets such as computers, telecom, aircraft, etc. Who wouldn’t want a corporate jet with low monthly payments we think!

Approval on leases comes down to a combination of credit quality of your firm and the focus on the true value of the asset at the beginning, middle and end of term of the equipment financing transaction. Leasing companies in Canada 'price to risk ' and the good news is that the industry can address the entire spectrum of business credit - from start ups, to challenging credits, to blue chip investment grade transactions which are funded at an ultra low cost to your firm if you qualify . Oh and by the way, competition is intense in the industry, so hundreds of firms and intermediaries want your business.

Using an INTERMEDIARY by the way is one of the best ways to address your inter action with leasing companies. A solid intermediary will know the market, have the respect of the industry and be able to deliver you the best asset finance solution at the lowest cost with maximum flexibility.




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-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