WELCOME !

Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

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.



Friday, March 29, 2013

Franchise Banking Solutions. Business Loan Financing Options At The Speed Of Light ?




RIGOR . Your Requirement In The Franchise Finance Process!




OVERVIEW – . Information on franchise banking solutions in Canada . What is the expectation of the Canadian franchisee for business loan financing options ? Timing is everything!




Franchise banking solutions in Canada. Can the Canadian would be franchisee expect that business loan financing options appear and can be finalized at the speed of light? (We’re told that a photon of light in a vacuum fluctuates at 50 quintillionths of a second!) . We don't think so and here's why achieving success in franchising financing in Canada happens at a slower pace than you think - forcing you to accept our recommendation - be prepared!

Awhile ago we read a profile of a U.S. franchisee - the theme of that article being that even though the husband / wife team felt they were very experienced in many of the facets of franchising they in fact had realized that the whole business loan / financing process required ' RIGOR '. Let's examine some of that rigor requirement. Let's dig in!

Getting back that RIGOR.... The fact of the matter is that top experts in the field of franchise in Canada maintain that the actual financing process ties in to many other aspects of your franchise purchase decision. They include the size and nature of your purchase (i.e. asset based or service based , hospitality, etc ) as well as the need to tie in key aspects of the franchise industry into your finance plan . That for example might include factoring royalty payments into your cash flows, and, as or more importantly, determining what elements of your franchise needs can't be financed.

Items that cannot typically be financed include the actual franchise fee itself, or the 'financial goodwill ' component of a franchise you wish to purchase that is already existing, perhaps for sale by an existing franchisee, or a corporate / company store from your chosen franchisor .

While many of our Canadian chartered banks tout franchising banking as parts of their portfolios of commercial lending the reality is that each bank develops and assesses their own criteria when it comes to what they will lend against. That's one of the reasons franchise banking loan solutions do not happen at the speed of light - it’s a process for you the franchisee to get a banker on side to both support your application, and ensure it’s consistent with that specific banks interpretation of a success financing in franchising.

The large majority of franchises in Canada are in fact financed by the Government SBL loan program, which we maintain is quite perfectly suited to your business loan financing options. So if that’s the case then the whole process must happen at the speed of light, right. Not so fast! Each bank assesses the criteria for this financing in a different manner.

While the SBL / BIL loan is in fact suited to the majority of franchises each bank has different criteria to complete a successful financing. Some require a 10% permanent equity component, some require 50%... some finance 90% of your assets required, some only 75%. As you can imagine we're reluctant to name names, because we hang out with these guys and ladies, so we're protecting the innocent!

A solid franchise finance solution, whether it comes from a specialty firm or under the program we named still though involves the same key basics - a good business plan, reasonable cash flow and financial projections, an owner experience component, and reasonable business/credit history of the owners.

Our bottom line - allow for time to complete the financing , and seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with the help you need to complete your entrepreneurial dream.





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 :

CANADIAN FRANCHISE BANKING BUSINESS LOAN FINANCING OPTIONS



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














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Thursday, March 28, 2013

The ABL Facility . Is It The Perfect Marriage of Assets And Cash flow When It Comes To Business Lines Of Credit?




Financing Nation! Business Credit Line Worries ?


OVERVIEW – .Information on availability of business lines of credit in Canada. How does the ABL facility compare with Canadian chartered bank lines when it comes to cash flow borrowing

Business lines of credit in Canada . Accessing this type of borrowing facility continues to remain both a goal and a challenge by many businesses of all types and revenue sizes. Let's examine the ABL facility as it compares to Canadian chartered bank credit facilities. They are similar... and they are different.

In many cases we maintain asset based lines of credit are the perfect marriage of assets and cash flow. The Canadian business owner and financial manager is always looking for facts and proper comparison when it comes to making a balanced decision on where the weight of evidence lies on access to working capital credit lines .

They want to know what the issues are, what key technical points must be considered. Additionally they want to know what key issues are and where to go to find the answers. Just common sense.

Let's employ somewhat of a rapid fire method of explaining what we mean. Let's dig in.


The ABL facility is (usually) a non bank way of financing your business line of credit. It allows you to borrow, under one credit line, against all your asses on an ongoing basis. Major assets financed under the credit line include A/R, inventories, fixed assets, and real estate, if that applies.

Asset based credit lines in Canada are getting more popular everyday. They are used by some of the largest corporations in Canada, and start up and emerging companies in all sectors of the economy. They are positioned as a borrowing alternative to the Canadian chartered bank credit line.

If there are two principal advantages of the asset based credit line it is that it substantially increases your borrowing power, and does not come with the ties that bind when it comes to qualifying for a bank credit line.

Public and private companies can access the ABL facility, the borrowing criteria, i.e. your assets, remains the same.

How is borrowing power increased by this method of financing? Easy to explain. Receivables are traditionally margined at 90%, and inventory can be margined anywhere from 25-75%. When you ‘throw in’ the other business assets under the same facility we have easily seen clients achieve 50-100% more borrowing almost immediately. In some cases more!

Monthly reporting is more stringent under the ABL. While a bank typically might request quarterly or annual financial statements the asset based borrower must be prepared to send in monthly receivables, payables, inventory lists, and a balance sheet and income statement. That's a minimum! Over time we have observed this makes the business owner/manager more financial astute, as he or she tends to understand their business better.

Does your firm have a challenge in accessing working capital via a proper line of credit that suits your needs? If it does consider busines lines of credit that come under an ABL facility solution. Why? It works, more companies are doing it every day, and you just might find your competitors are talking about ' the new you ' when it comes to sales and revenue growth, vendor reputation. etc. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your credit line 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 :

BUSINESS LINES OF CREDIT – THE ABL FACILITY


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











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Wednesday, March 27, 2013

Cash Flow Finance . Solving Your Working Capital Problem ? It Will If Done Right!





We’re Declassifying Some Cash Flow And Working Capital Secrets


OVERVIEW – Information on cash flow finance management and solutions . Unlock your working capital problem and debt financing challenges



Cash Flow Finance in Canada. Can it solve your working capital problem? We say yes, with one caveat... namely done properly. That's the key, its almost as if we're ' declassifying ' some secret documents not previously know to others - at least that's how it feels when we speak to business owners grappling with their business financing challenges.

Debt or monetization of your assets to generate cash flows isn't always a good thing, but actually top experts in finance have suggested over the years that many companies can add to the overall value of their company by 10-20% if they are using debt properly, deducting interest and finance charges, etc.

But with that financing comes the restrictions that are imposed by lenders, or simply the suitability of certain financings for your firm. A lot of business finance solutions look good on paper, but ultimately might not work for your company.

Should you have any specific goal when searching for optimal financing methods? One of them is pretty important; it’s ensuring that you give yourself some flexibility along the way. We meet so many clients that have locked themselves into some form of debt or asset monetization strategy that has done one thing: Making it impossible to raise more capital!

That might be because of the security you have offered up, or been asked for. When that occurs one other ' bad thing ‘that happens is that you are now operating and running your sales strategies in a different manner because you are locked into a financing arrangement that does not allow flexibility.

One other point of caution - entering into the wrong type of financing forces you to then consider making changes in your expenses and budget and making you less aggressive in exploring or taking on new sales opportunities and contracts. There is one benefit in that though... unfortunately it’s the benefit of your competitors, who sense weakness and attack from the rear!

Remember also that when you enter into a working capital problem resolution financing that you are now in the world of loan covenants, offering up personal collateral in some cases, and if you are highly leveraged that’s going to become a regular issue with you all the time - forcing many business owners and managers to de-focus on what they do best - run their company and grow sales and profits.

There are many types of debt or asset monetization solutions that, if done properly allow you to achieve the right amount of cash flow you need. Some of those include:

Canadian chartered bank operating lines of credit
Receivables financing
Inventory and PO / Supply chain finance
Tax Credit monetization
Asset based non bank lines of credit
Asset leaseback strategies
Short term bridge loans

Those financing mechanisms, if done properly allow you to take on the right amount of debt, achieve stronger sales revenues, and consider new opportunities for products, acquisitions, etc.

So, have we ' declassified' some of the info the business owner/manager needs to solve the eternal working capital problem? We hope so, and it should be the goal of business to pay attention to current and anticipated funds flows to balance their overall financial policy.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with sources of capital that work... for your company.




CASH FLOW FINANCE WORKING CAPITAL PROBLEM



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-finance-working-capital-problem.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


















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Tuesday, March 26, 2013

Financing Customers In Canada . A Better Way To Increase Sales Via a Vendor Finance Program




Death Of By No Financing . A Sales Tool Savior For Canadian Business . Easier Than You Thought!




OVERVIEW – Information on financing customers in Canada . How does a vendor finance program increase sales revenue, what are some of the other benefits and costs?





Financing customers in Canada. Would a vendor finance program, either on a one of basis or on a regular ' program ' type basis have saved that sale? We think so, and here's why. Let's dig in!

Sorry to hear about that. Meaning of course that many a sales opportunity in Canada has been lost by many companies, including yours by the way, if you had the opportunity to offer some form of financing to your customer when in fact that could be the ' make or break ' that completes a successful sales transaction . Top experts in sales and sales finance maintain that not offering a financial solution to your customer for your products and services (services - for example software solutions) is a key factor in... Well... losing the deal.

So why is that the case, and how can you fix that? Let's review some key advantages of offering a finance program to your customer. Oh, and by the way, the cost around that - as close to zero as you can get if that’s your chosen model!

Why do companies in fact need to offer a finance solution to their customer? In some cases there are in expanding or competitive markets and are looking for ways to increase sales revenues. When you offer a ' total solution ' to your client you immediately move your proposal to the top of the pile when it comes to your competition. You are in fact removing what we have called in the past a huge ' obstacle to innovation '. And that obstacle - it’s the cost of your product and services.

Your clients are looking for ways to afford your products, which typically must be asset and service based to conform to a proper vendor finance program.

A key point in our information today is that you don't have to provide that financing yourself. By working with a trusted, credible and experienced advisor or partner firm you can be in a position to providing the solution your customer is looking for, what at the same time committing no extra capital or any other business risk to your sales. Naturally you could start a finance firm to finance your own sales, but that’s a subject for another day! It's the proverbial ' different kettle of fish'.

Simply by having a source of financing for your clients will get you to the goal line. That financing can be an equipment lease, a loan. Or a monetization of your contract with the client.

Is there a quick way we can summarize the key benefits of a sales finance program? There is, and it's as follows:

- Providing financing for clients focuses your product or solution on value, not pricing

- Your firm becomes the easy ' one stop solution ' for your clients - saving them management time and money in acquiring products and service they need. You are on track to become a preferred vendor!

- Cash flow. For you and your client. Your firm gets paid immediately on acceptance of your products and services. The client has a cash flow/monthly payment solution that work for their internal needs.

So, does all of that sound like a common sense solution to increasing sales? We think so, and your competitors do also, as thousands of firms offer of align themselves with a financing solution.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your vendor finance program. Financing customers = increasing sales!




FINANCING CUSTOMERS AND VENDOR FINANCE PROGRAMS


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

















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Monday, March 25, 2013

Accounts Receivable Credit Financing . The Non Bank Financing Difference ! How Receivables Funding Works .. and Doesn’t Work





No Need to Be Naïve About The Difference Between Accounts Receivable Finance and Invoice Discounting And Bank Financing



OVERVIEW – Information on how an accounts receivable finance solution works in Canada . This type of receivables funding is dramatically different from bank financing and being adopted by firms of all size



Accounts Receivable Credit Financing . For the majority of Canadian business owners and financial managers that are considering receivables funding as a finance strategy the main question seems to be:

What is the difference between A/R finance and bank financing for their company? It's a legitimate question, so let’s dig in!

One of the main reasons in fact that many companies choose an A/R receivable credit solution is that is simply doesn't involve new long term financing for your company. The most simple explanation of that difference between a commercial finance solution vs. a bank scenario simply involves understand that the receivables factoring / discounting solution is simply the sale of your receivables, as opposed to the financing of them. Both get you immediate cash flow - they just work a little differently.

On a daily basis the sale of a receivable generates cash flow for your firm. In Canada you typically get 90% of all your invoice the same day you instigate the A/R discounting process. The other 10%, less financing costs of approx 2% is remitted to you as soon as you client pays. Simple so far, right?

That 2% fee in fact becomes larger, commensurate with the time your A/R is outstanding. So don’t be prepared to lull yourself into a fall sense of security on your new cash flow tool, because whether you are holding receivables and waiting, or financing them in an accounts receivable credit factoring situation is still going to cost you money . Carrying balance sheet accounts such as A/R and inventory are a hidden but very real cost of doing business - and the faster you turn over balance sheet accounts leads to great profits and operating efficiencies.

The key advantages of a factoring solution are:

Immediate on going cash flow

Funding as needed for your business if you have seasonality or bulge requirements

A more solid balance sheet that reflects cash, not A/R

It's important to us when we’re in front of clients to maintain a balanced position when it comes to explaining receivables funding. So we do point out that if you enter into the wrong facility (and Canadian companies do that everyday) the actual optics of how people thing you are financing your company can be perceived as negative. It should not be that way, but it is.

Remember also that this method of financing doesn't take away the risk of carrying A/R, unless you have a receivables funding insurance program, which most companies don't. So making proper credit decisions around your clients needs should still be top of mind.

One of the key things to understand in a/r financing is simply that the cost of using this method of cash flow and working capital is a rising and falling process, depending on how much you are drawing down, what that final approximate 90% advance rate is, and the administrative costs you need to run an a/r finance program.

So , no need to be naïve when you weigh the costs of receivables funding vs. bank financing consider seeking and speaking to a trusted, credible and experienced Canadian business financing advisor who can help you set the record straight on those pros and cons of each method of finance.






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 :


ACCOUNTS RECEIVABLE CREDIT AND RECEIVABLES FUNDING





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



















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Sunday, March 24, 2013

Business Financial Strategies . Pros And Cons For Your Funding And Lending Needs In Canada









Top Methods For Financing Your Company In Canada - No Plan And No Objective Equals No Results



OVERVIEW – Information on business financial strategies for funding the Canadian business . Knowing what type of finance solutions works when is key to operating and growth success




Business financial strategies in Canada.When it comes to funding and achieving lending success for your business it’s always important to understand the pros and cons of various financial solutions that will work for your company.

Some of those methods will work, some won’t... and if you don't have a game plan we can assure you your chances of wasting time, and failing are... well lets say .. excellent! But spending management business time and not achieving your financing goals isn’t our recommendation, so let's discuss the fixes.

A large part of the fix is understanding the need and having a plan. No secret there. The need is often very clear - your objectives might be to increase sales revenues, introduce new products, become technologically more competitive, etc

It's also critical to understand your current financial strength. Knowing how well your business is operating is key, and there are many basic analysis tools you can use to get a sense of:

1. How well your business is doing from an operational financial perspective

2. How bank and the many other commercial lenders will perceive your firm from a funding perspective.

Is there in fact a plan and process that allows you to successfully achieve external financing? We think there is and that process revolves around some key planning basics:

Ensuring you have a solid package of information that your proposed lender will need - those key basics includes interim financials, year end financials, a cash flow forecast , and a management and company bio . And if you don't have the time or expertise to put that together (a good package of info is a winning package) then there is a lot of expertise via your accountant or an experienced business financing advisor who can assist.

In some cases the winning business financial strategies revolve around cobbling together a number of financing sources - in many cases there is no one ' catch all ' that will solve different types of financing needs. Oh and by the way, a lot of the financing you think you might need in fact isn’t not required if you are turning over your assets properly (inventory, receivables, etc), allowing you to turn paper profits on your income statement into cash flow on your balance sheet.

Corporate finance text books talk about ' capital structure '. That's simply getting a handle on balance your debt and owner equity in a manner that reduces taxes but still allows you to fund your company daily and grow. Simply said, but hard to achieve! But truth be told your ability to find the right amount of debt to balance against the high cost of giving up equity ownership is a winning final strategy and should be your goal.

Business financial strategies for your funding needs will always revolve around what stage of life your company is in, i.e. start up, high growth, mature, turnaround, etc.

Some of those lending solutions:

Receivable financing / invoice discounting
Inventory and PO finance
Sale leasebacks of owned assets
Equipment financing via capital or operating leases
Bank lines of credit & Non bank asset based lines of credit
Working capital term loans - secured/unsecured

Other less well known solutions includes:

Confidential invoice financing
Tax credit monetization - SRED, etc
Royalty financing
Government SBL loans
Securitization
Mezzanine finance

Knowing which finance solution works for your firm is part of the ' no plan, no objective = no results' we have talked about. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can ensure that business lending is a success for your funding needs.





7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS FINANCING EXPERTISE























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Saturday, March 23, 2013

A Government Loan For Small Business? From Start Up Financing To New Finance Needs





Recognize These Symptoms? Fear ? Rejection? Here Your RX for Successful Business Financing


OVERVIEW – . Information on the government loan for small business . The ‘ SBL LOAN’ works whether you are a start up or an established business ! Here’s why and how!



A government loan for small business . Nothing seems to bring a look of rejection, fear and confusion on some of our client’s faces when we discuss this method of financing their business. That can range from start up financing to an established business with revenues fewer than 5 Million dollars. (5 M$ is the cap on revenues for this loan)

So does it all have to be about that confusion and fear of not being approved? We don’t think so if you've got the basics tied down, which is not as hard as you think. Let's explain and let's dig in!

It's important to understand the mandate and nature of this type of financing. While the common term is ' government loan' in fact you never deal with the government. So how's that for clearing up some confusion right away. The program is sponsored and administered by INDUSTRY CANADA, those great folks in Ottawa. But here's the rub! You never meet or speak to those folks, as SBL loans (That’s the nickname for the program) are actually managed and funded by the Canadian banking system. It's our chartered banks that are managing the actual funding and daily mechanics of your loan.

So where does the government fit in? Simply that they guarantee the loans, or a large part of them, to the banks. So if you are lucky enough to find a banker that has the knowledge and time to process your SBL loan ( yes, that really is a challenge believe it or not ) you're on the track for some great financing, whether you're starting a business, buying a franchise, or looking for financing for equipment and leaseholds for your business .

Is there a quick way to summarize the major benefits of the program? We simply advise clients as follows:

Loan rates of 3% over prime rate in Canada
25% only personal guarantee (tries and get that anywhere else)
5-7 year terms
Repayable without penalty
Assets financed include equipment and leaseholds

It doesn't get anymore basic than that!


Over the years there have been some nuances in the program, but the reality is that billions of dollars are advanced under the Government loan for small business every year, to thousands of firms in Canada just like yours.
In fact it might come as a surprise that the only recent major change was several years ago when the loan cap was increased to 350k from 250k. So it was actually a great change when it comes to Canadian business financing.

So what does the SBL loan require in the form of an application and process. It's more basic than you think. It’s a business plan/exec summary, description of the assets you are going to finance, and personal info on yourself re your business experience and personal financial affairs. You categorically do have to have a good personal credit history - this is not a ' bad credit financing program '!

Oh, by the way, your company must be private, not public (not a big challenge there, right?!) and you require a business location with a premises lease.

If you're looking for a prescription for success in Government loans for small business in Canada seek out and speak to a trusted, credible and experienced Canadian business financing advisorwho can assist you with your financing needs. You just might find that he or she has the banking relationships and expertise required to get you the funding you need under Canada’s, bar none, best program for small business.


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 :


GOVERNMENT LOAN FOR SMALL BUSINESS / START UP 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




















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