The Govt Loan For Business. Why SBL Loans In Canada Deliver On Financing

Less Syllables. More Financing. The SBL Loan Works !


OVERVIEW – . Information on the govt loan for small business in Canada . Commonly called ‘ SBL loans’ this financing delivers on financing needs for start up and established companies with revenues less than 5 Million $




SBL loans . It's the govt loan for business in Canada if your firm has under 5 Million dollars in revenue or is a start up. Yes, we said start up! SBL is the acronym for what we lay people call the government small business loan.

So why does this method of financing have the potential to deliver for your firm or start up business. The fact of the matter is the SBL loan has helped close to 8,000 businesses in Canada every year, to the tune of several billion dollars. In many ways it’s the ' go to ‘to purchase and finance machinery, furniture, fixtures, and leasehold improvements. Included in that category are your computer and application software needs also.

We forgive clients who think that for some reason that they will be dealing directly with ' government ‘, which, rightly or wrongly has all sorts of connotations of red tape, delay, forms , etc. Nothing could be farther from the truth. Although the program is regulated and mandated by INDUSTRY CANADA in Ottawa the day to day reality is that the SBL'S are in fact delivered daily in your own community via chartered banks which , shall we say ' run' the program for the government .

So if you in fact thought you would have the pleasure of meeting with government for your loan we're going to have to disappoint you. It's much easier than that. Our own personal gripe with this is that each Canadian chartered bank, in our opinion, has a little different ' spin ' on the program . But we digress. Luckily we know the right ones!

We're the first to admit that you are very mistaken if you are looking for the proverbial ' easy money '. That is not the case. Although the actual deliverables of the loan are very attractive:

5 -7 year terms

Low competitive interest rates - (3 over prime)

No early repayment penalties

Nominal 25% Personal Guarantee

You don't necessarily need to be incorporated - partnerships and proprietorships ok!

Your opening balance sheet must be constructed to meet a proper debt /equity and current ratio

350k borrowing cap

Some relevant business experience





We can categorically call out that this is not ' easy money'. However, are the qualifications stringent or difficult? We don't think so. They are:

- You must be legally allowed to borrow in Canada
- You must have a reasonable personal credit history
- You must have a business premises lease for your company
- You need to have a minimum permanent 10% down payment/equity in the financing desired
- Strongly recommended/required that you have a business plan/cash flow forecast for the business

In your business plan and financial forecast you need to pay attention to the fact that cash flows from the business will be able to retire the loan properly.
It's strongly recommended that your opening line NOT be: We don’t have the money now, but if we do in fact get approved we'll repay you from sales ...'! . AGAIN, not recommended!

As a business owner you have the ability to make the whole process as complicated or easy as you choose. A better idea? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can ensure the govt loan for business, the 'SBL ' works for your Canadian business.




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 :

GOVT SBL SMALL BUSINESS LOAN




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

Canadian Business Financing Blog hits 50,000 Pageview Milestone

Our Canadian Business Financing Blog hit 50,000 page views today.



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Thanks to clients and readers who continue to have interest in our desire to spread the word on Canadian business financing solutions and alternatives !

Financing Franchises In Canada . Expert Facts On Obtaining A Franchise Business Loan In Canada

A STUPID QUESTION ROUND UP ON FRANCHISE FINANCING


OVERVIEW – . Information on successfully completing a franchise business loan in Canada . Financing franchises requires the right expertise and professional advice


A franchise business loan in Canada . We challenged ourselves recently to come up with some ' stupid' questions on financing franchises in Canada. Actually it turned out to be not that hard. No one would ever ask these questions would they? We're hopeful they wouldn’t but there’s a lot of misinformation around these days. So let’s dispel some serious fallacies around financing your business as a franchisee entrepreneur. Let's dig in!

Question # 1 - ‘Do I really need to finance a new franchise. Can I just pay cash or collapse my savings, registered, investments, or put a collateral mortgage on my house. That's what my banker recommends’

Answer - We suppose that you could pay your franchisor the full amount per your banker’s request. But why would you honestly do that? You incorporate as a franchisee to separate your business life from your personal life. That limits your liability to the assets of the franchise, aside from any personal guarantees. There’s a whole world of financing help out there when it comes to financing your business - specialized franchise finance firms, leasing companies, working capital solutions, even private equity firms in certain circumstances. Don't risk your personal financial assets if you can properly finance a franchise with rates, terms and structures that make sense.

P.S. You might want to remind your banker that the Canadian SBL/BIL/CSBF loan program is in fact one of the most popular methods of financing a franchise via a bank . Or is it that they don’t want to do the extra work that’s required to complete one of the best loan facilities in Canada for a franchise .


Question # 2 - ' I know what I am doing; I don’t need to spend time or pay for a business plan, do I?

Answer - Business plans, whether they be detailed or in executive summary format are required for all commercial lending opportunities when it comes to buying a business such as a franchise. They also later serve as a management tool to measure how well you are doing compared to your original financial goals. It's one of the best scorecards you can have when done properly. If you don’t have the time or financial expertise to prepare a business plan seek the advice and help of a Canadian business financing advisor.

Question # 3 - ' Once I finance via a franchise business loan I don't require further financing, right?"

Answer - While many types of franchises are in fact cash flow positive from day one certainly not all come under that category. So you need to spend some ' financial time ' in two areas - the early days of the franchise when more is going out than coming in, and secondly for long term growth and replacement of assets or leaseholds that might need updating. In some cases your franchisor may in fact insist that certain assets and leaseholds be updated/replace. So don’t forget to factor in ongoing working capital needs which can often be identified through your business plan or a cash flow forecast.


In summary - don’t let the challenge of financing franchises become a major hurdle in your success as a franchisee. The research and effort you put into picking and checking out a franchise should continue in the financing process.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your franchise business loan project.



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 :


FRANCHISE BUSINESS LOAN - FINANCING A FRANCHISE




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

Unlocking Business Credit Lines Secrets. Why ABL Just Might Be TheBest New Offering From The Commercial Lender

Can You Name The New Trendsetter In Business Financing?



OVERVIEW – .Information on business credit lines in Canada. The asset based non bank line of credit, the ‘ ABL’ , is the new trend in finance from your Commercial Lender





Business Credit Lines Via ABL . It's our feeling that this business financing solution via a commercial lender is the newest trendsetter in commercial finance in Canada. We've checked with legal and we're most comfortable in saying that. Why? Let's dig in.

We're told that a ' trendsetter ' is simply a person or thing that establishes a new trend. And that new trend, as far as we are concerned is the ' ABL ' (Asset based line of credit for business).

Thousands of business in North America, Canada included by the way! , are utilizing this unique business financing service to grow their company. ABL , most people agree originated in the U.S. and has gradually over the years moved to Canada and other European countries.

And what is ABL? It's simply speaking a method of borrowing against all your business assets under one operating line of credit formula. Those assets are receivables, inventory, equipment and real estate if that latter is applicable.

The true beauty asset based business credit lines is that they work in a large variety of circumstances. Those include:

- Fast growth scenarios
- Management buyouts
- Acquisitions
- Turnaround refinancing

Unlike some methods of financing it’s also perfectly suited to both public and private companies

It also works well in both good and bad times - good time’s typically meaning fast growth situations where maximum borrowing power is needed, and those not so good times when business credit is hard to achieve.

Why is this new form of business credit lines gaining more traction everyday? Top experts in the field say that it’s because of the flexibility that’s available to business owners and their financial managers. More and more companies are using it, so it’s all about market acceptance we suppose. While Canadian chartered banks provide tremendous amounts of liquidity to Canadian business it definitely can’t provide it all, primarily due to lending restrictions.



How much new working capital/cash flow can be obtained from a commercial ABL lender? We can comfortably say that it often is anywhere from 30-100%, as we have seen those examples all the time. Take the simple fact that ABL typically offers 90% A/R margining versus the banks 75%. Also inventory and equipment are then bundled into the equation; create a new surge in your borrowing power. It’s simply a case of quickly reaching your maximum borrowing power.

One key point that we make to clients is that the actual approval criteria when you compare bank credit lines with ABL are significantly different. While the chartered banks, by virtue of their mandate rely heavily on the quality of your profits, strong balance sheets and ratio and covenants that define those the ABL lender focuses on one thing - ASSETS!

Business owners and their finance managers that plan for the future pay close attention to their future borrowing power. When that ability to borrow what they need to survive and grow is restricted... well you can take it from there!

We point out to clients that there are some unique ' sub sets' of ABL business credit lines. They might just be for A/R, or just inventory (in the case of a retailer), or combinations of those that might include equipment, tax credits, etc. That same day / all day access to credit capacity is what differentiates ABL as the new ' trendsetter' in business finance.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with the needs you require from a commercial lender.






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 – ABL BUSINESS CREDIT LINES







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

Email = sprokop@7parkavenuefinancial.com
















Stan Prokop

Business Financing Services In Canada . Fixing Financial Emergencies Via Specialized Funding

Putting The ‘ Ding’ In Fun When It Comes To A Financing Emergency . It’s Funding !



OVERVIEW – Information on business financing services and financial strategies for the funding needs of your firm when emergencies arise.



Business financing services in Canada . That's where the Canadian business owner and financial manager looks when they need to quickly put the ' ding ' back in the fun; which equates to FUNDING of course!

We meet many clients who fortunately are doing a pretty good job of planning ahead for their financing needs. What they don't forsee is the unanticipated event that causes an immediate negative reaction in their cash flow and working capital funding needs. Just the other day we met with a client who had lost their major client. The problem? That represented 80% of all of their business. The adverse reaction? Well, you can pretty well feel the pain, but one immediate thing that happened was that their bank called their operating line of credit.

Is there some ways to take stock of how you can plan for adverse business events that happen pretty fast? We think there is, so let's dig in!

A lot of the points we'll make revolve around three areas, growing your business, generating profits, and just plain surviving! It's the goal of the owners and financial managers to keep cash flowing through all those periods, and each of them has their challenges.

It seems easy to prepare a cash flow forecast and get a strong sense of your inflows and outflows over time based on your own experience. But what will you do when the unexpected occurs: That might include:

Competitor issue re pricing/products
Government legislation
Technology change

Etc!

That's when things get exciting, in the worst way!

So how can the business owner plan for funding when an emergency situation occurs? To us it comes down to three elements:

1. Having a strong sense of the time it takes to search for funds - It just might be recommended that you always have an expert in Canadian business financing to talk to - even in the good times

Knowing what options are available - These might include a temporary bridge loan on unencumbered assets, a receivable finance strategy, Purchase order financing, an unsecured cash flow loan, and finally a monetization of any tax credits which can be financed . (Yes you can finance a SR&ED claim), and the sale leaseback of owned assets. Oh, and by the way, do you recall that client that had their chartered bank operating line of credit called - they are fully eligible for a non bank asset based line of credit?

3. Knowing that you do have a strategy to mobilize resources you are not using today. At this point you are no longer ' keeping score' in business; you're taking stock of all your financial resources in business assets, financing relationships, etc

Financial emergencies can happen to your company at any time. At that point you need to ensure you know what your resources are, what assets can be liquidated, and knowing you have alternative financial vehicles to cope with planned outflow of cash.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with a financing emergency, or help you to avoid one!





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 – CANADIAN BUSINESS FINANCING SERVICES


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

Technology Finance Via Leasing In Canada. From A Laptop To PC’s And Servers Equipt Financing Has Got Your Back!

Hitting A Bulls Eye In Technology Financing


OVERVIEW – Information on the leasing of computer, laptop, server, and tablet assets via a technology finance solution that meets the needs of Canadian business




Technology finance in Canada . Business owners and financial managers are always challenged about their ability to financing their technological needs, and that ranges all he way from laptops, tablets, personal computers , and the backbones of their infrastructure, ie servers, software, etc. They recognize the importance of technology in moving their business forward - they just struggle with the costs and the constant change.

Simply speaking they want to get the most out of their tech assets, at the lowest cost and capital outlay. It's the use of those assets that becomes the challenge in technology leasing - if only for the reason that obsolescence seems to set in awfully fast these days! Whether its a ' mission critical' need, or just operational in nature relative to your daily operations the owner/manager needs to understand the importance of acquiring technology in the right manner.

While many assets in your company have a long term use that's certainly not the case with your ever changing tech needs. That is simply why lease financing is by far the recommended by top experts method of acquiring these assets.


While normal leases in Canada run between to and 5 years it’s very common for computer leasing to be in the 2-3 year range, although as we have stated, the business owner does in fact have the option to utilize a longer term.

The overall process could not be simpler - you choose your vendor or manufacturer , negotiate your price and then your leasing company partner arranges payment with your vendor. In certain cases it’s optimal to have the mfr. finance your transaction if they in fact have a captive finance company associated with their business. Captives are incented to make transactions happen, and that means faster approval and occasionally more liberal credit approval criteria.

When you make a technology decision around new assets you have to focus on whether you wish to ultimately ' own' the asset, or if you wish to ' use' the asset for its benefits. That translates directly into one of two choices you have to make when entering into a tech lease - choosing between a capital ' lease to own' or an ' operating' lease to use. This is an important decision that must be made up front at the inception of your transaction.


When you wish to not own assets and if they fall into the category of a shorter life cycle then an operating lease will always be your best solution. At the end of the lease you have the right to return, upgrade, or extend your transaction, and if properly structured new technologies in your firm can be maintained under that same monthly payment you achieved in the prior lease. Pride of ownership is NOT a decision maker in tech finances!

Cash flow and budgets drive a lot of technology lease decisions. Business owners want to get the most out of their tech assets, while at the same time preserving cash flow and staying within their mandated budgets. While your software and hardware needs are key to operations and growth it’s your cash outlay that is often the biggest concern when it comes to constantly upgrading technologies.

We advise clients that it is critical to understand your obligations, and , more importantly, your option that exist in technology leases and financing. Such issues as the ability to terminate, upgrade, renew or buy are at the heart of tech finance.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs all the way along the tech food chain – including software, hardware, and other related asset categories.



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 :

TECHNOLOGY FINANCING SOLUTIONS AT 7 PARK AVENUE FINANCIAL


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

What Happens To The Canadian Equipment Financing Asset At The End Of My Firms Equipment Lease?

Missing . Solving The Mystery Of The End Of Term Lease Finance Option In Canada . What Should And Should Not Happen!

OVERVIEW – .Information on equipment financing and the asset lease in Canada . What are key factors at the end of a lease term that the Canadian business owner/manager needs to address?



Equipment financing in Canada via an asset lease . Billions of dollars of assets are financed via leases every year in Canada.. What happens to these assets at the end of the lease, and how are some of the asset disposition and sales issues handled by your firm or the lessor? Let's examine some of the facts relative to the Canadian marketplace for equipment financing. Let’s dig in.



Naturally a significant amount of time is spending at the inception of leases in determining the new or used value of equipment to be leased. In cases where used equipment is being financed there is a need for appraisals and inspections, which are usually performed by independent third parties who have a strong sense and professional experience in valuing these assets. In certain cases where a lessor has repossessed equipment and the asset is for sale then an appraisal is also a very valuable tool.



At the end of the lease, depending upon the structure and type of the lease, the business owner or financial manager must enter into negotiations to address the final disposition of the equipment. We must remember that your firm entered into what is known as an 'operating lease 'you have in fact opted to 'use' equipment, rather than 'own 'it.



That of course infers equipment being returned to the lessor, or, per the terms of your contract, it can be purchased. Purchasing equipment at the end of a lease has significant implications for you around the value and use of that equipment. Naturally if you intend to simply return the equipment the lessor is chartered with disposing of that equipment.



We also note that it is a prudent business decision for Canadian business owners to monitor the value of leased assets through the term of their lease, especially important as the lease approaches termination. As the lease approaches its end of term the lessor may also invoke its right to inspect the equipment, suggest return provisions, and, most importantly to the Canadian business owner, start to suggest the purchase price of the asset if in fact your firm wishes to keep the asset, if in fact you have entered into that type of lease.



WARNING – BUSINESS ALERT ! Make sure you ensure your lessor has the responsibility to notify your company prior to end of the lease term . If that is not agreed upon, diarize the lease end of term. Thousands and millions are made by leasing companies in North America who continue to bill at the end of your lease term, simply because that issue was not documented properly ! They wouldn’t do that, would they?


From the lessors perspective it wants of course to ensure a reasonable and proper value of the equipment. A major term in Canadian equipment lease financing is a term called 'fair market value '. That term suggests that the asset under lease has a value to someone in the marketplace assuming there are a willing buyer and a willing seller.


The business owner or financial manager will want to look back at the asset and understand any upgrades or maintenance that was performed on the asset. Business owners are encouraged to look out into the marketplace and determine what current values are - the internet has become a fabulous asset to lenders and borrowers in assessing the true market value and availability of many asset types.


There are hundreds, perhaps thousands of used equipment dealers, brokers, and remarketers who can provide solid input into the value of the asset. Naturally contact several sources rather than one is a prudent action for both the lessor and the Canadian business owner.As information is gathered the true value of the asset will emerge.


In summary, as a general rule it is incumbent on the lessor or finance firm to ensure proper diligence and procedures around assets coming off lease. The lender want to ensure they are made whole on the transaction, as leases are a combination of interest charged and asset realization at tend of term.

For the Canadian business owner proper care, maintenance, and on going valuation of the leased assets is a valuable investment in time and cost. This investment becomes more important as the business owner evaluates disposition options at the end of term. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor for the asset finance expertise you are looking for.








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/equipment-financing-asset-lease-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



Stan Prokop