Government Guaranteed Small Business Loans . What’s Better Than An Inside Scoop On The SBL Program

Trouble Connecting The Dots With The GOV’T SBL / BIL Loan?


OVERVIEW – Information on government guaranteed loans for small business in Canada . Accessing approval for this valuable finance program helps the business owner financing equipment and leaseholds assets via finance otherwise not available



Government guaranteed loans in Canada. What Canadian small business owner wouldn't want any ' inside scoop ' on anything to do with the government and business.

The reality is that the Canadian business owner and financial manager has no real direct involvement of any sort with the govt on this program that he or she still seems to have a lot of problem in .. Connecting the dots... for financing success. We're quite sure we've got clarity, so let’s dig in.

For a certain type of borrowing in the Canadian start up and SME sector in Canada there is no better option than what ' main street ' calls the 'SBL' loan program . While choosing the right bank / banker to move your loan through is a challenge its still a great vehicle to put equipment and leasehold assets that you need on the right footing - inside your business!

While the perception might be that it’s difficult to achieve this financing you'll be surprised to hear that you can navigate the program with relative simplicity - if you have the right documentation and know what constitutes approval criteria. That's our job we suppose!

Commercial banking in Canada many times (in spite of those TV commercials!) does not lend itself to start up or leasehold financing. That’s where the small business government guaranteed loan comes in - it works specifically only in those areas.

The quick recap is as follows - maximum loan size = $ 350,000.0O - items financed are only equipment, leaseholds, and real estate. We'll quickly add that not many real estate deals are done under the program, because in many ways it doesn’t make sense -at the same time we'll add that computers and application software are in that ' equipment ' category that we referenced. So a great way to acquire some technology.

We are often amazed about why there is confusion under the program because the reality is that the ' basic drill ' has not changed. We think it’s because the general commercial borrowing environment has changed a lot more than the program - i.e. tougher!

So how can the business owner improve the odds of getting approved? A good way to provide that answer is to advise why you will be declined. You may well be declined for the following reasons:

Poor personal credit history

No business plan or cash flow

Unable to produce a premises lease that matches the term of your loan request

Inability to match the permanent 10% down payment/equity required by the program

We advise clients that a proper loan proposal meeting the basic criteria has a very strong chance of approval - and with rates, terms, structures, limited personal guarantees etc all being excellent every business owner should at least consider the program.
As we said, no government involvement at all (they simply guarantee your loan to the bank) and connecting the loan application dots is a lot simpler than you thought! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your SBL small business loan .




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 Government Guaranteed Loan Expertise

















Stan Prokop

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Franchise Loan? The Benefits Of Properly Arranged Business Franchising Loans In Canada

Thinking Complicated When It Comes To Franchise Financing ?

OVERVIEW – Information on the Canadian franchise loan . Doing it right when it comes to business franchising loans helps guarantee entrepreneurial success



Business franchising loans in Canada. Two things come to our mind when it comes to a franchise loan in Canada. First of all, it doesn't have to be complicated when it comes to addressing the sources of financing and getting experienced assistance in completing your finance.

Secondly, as in any aspect of business ' doing it right ' has a lot of benefits. More so for the entrepreneur who wants to be successful in either the turnkey franchise he or she has opened, or perhaps bought from an existing franchisee or franchisor. Let's dig in!

When it comes to borrowing for a franchise business it’s a question of not over borrowing, but at the same time getting the right amount of capital you need. Franchisees that have an ' all cash ' business - i.e. in the hospitality / restaurant area have a bit of an advantage because their working capital needs are more limited. Franchises selling to clients in a B2B (business to business) environment have to think of addressing the same issues as any other company in Canada - i.e. how to plan for financing receivables, inventory and future capital cost needs?

Franchise sizes, in terms of cost to purchase, range anywhere from 5k to the millions of dollars. That's quite a spread - and the franchisee should be prepared to put in anywhere from 10 -50% from an owner equity / down payment scenario.

It's important to ensure you have the personal capital to invest in the franchise - both your franchisor and your finance partner/partners will want you to prove your ability to demonstrate that you can meet the required equity requirements. This is typically easily accomplished by providing your franchisor, and lender with a completed ' PNW ' - Personal net worth form that shows the make up and liquidity of your personal assets.

Also, it is difficult, if not impossible to finance certain intangibles such as the franchise fee itself - so that typically comes from the owners pockets.

Knowing the types of financing available and who offers this finance will uncomplicated your pursuit of financing. If you are not dealing with a ' Specialty ' lender whose sole focus is franchise finance then a logical other alternative is the SBL / BIL loan program that is supported by Industry Canada.

Financing you need will typically be in the form of a term loan and potentially an overdraft / line of credit. Many hospitality type franchises finance their future sales through innovate ' merchant advance ' type loans, although they come at a higher financing cost.

Business franchising loans get really uncomplicated if you have a slick, clean loan financing package. Key elements are a business plan, cash flow, info on yourself and the franchisor. Other miscellaneous requirements are in fact that same as any other type of financing sought by businesses.

Remember that the franchise lender, unlike you, doesn’t share ownership and profits. Their goal is a lot more simple - getting paid from your profits and cash flow - so demonstrate that repayment clearly in your work.

We repeat – the franchise loan process in Canada is as complicated as you make it – it certainly doesn’t have to be with proper knowledge and assistance. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with franchising loans that suit your individual 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 :

7 Park Avenue Financial = Canadian Franchise Loan Expertise




CONTACT:
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

Bank Financing Loans In Canada . Does A Business Loan Seem Like A 1 Million Step Recovery Program ? It Doesn’t Have To

Is Selecting A Bank For Financing Your Company Harder Than Herding Cats?

OVERVIEW – .Information on bank loan financing in Canada . What are the right steps and strategies to address business loans from Canadian chartered banks


Bank financing in Canada . When it comes to a business loan from a Canadian bank why does it sometimes feel more challenging than ' herding cats '? Some clients feel that the process of getting approved for a bank loan is more difficult than working your way through the 12 Step Recovery program! We've got some clarity and solutions, so let's dig in!

Unlike many, we've got a different angle on bank financing success in Canada. And it’s a pretty simple premise - it’s about your banker, not the bank. Is it just us , but don't all the banks have those great branches, high ceilings, columns at the door to their head office, and that ' church like ' quietness that makes those halls so hallowed.

In the U.S. the borrowing situation is even more compounded for stress - you actually should be checking out your bank there to see if it’s healthy for loan to deposit ratios, etc! We in Canada don't have that problem - but it’s still a challenge nonetheless.

Our Canadian banks do a great job of avoiding risk - they are world renowned in that area. So the job of the Canadian business owner and financial manager is to demonstrate that your business loan or revolving line of credit is not risky. That means being able to demonstrate profitability and the ability to generate cash flow.

It's also critical to prove that you can demonstrate some decent, however rudimentary, financial reporting. The basics are often fine - monthly balance sheet and income statement, aged A/R and a/p, etc. We would submit that if you can't produce those you've got bigger problems already that you don't know about.

We also point out to our clients that in the ' old days ‘a lot of the credit approval for bank business loans resided at the branch. These days it’s with underwriters at head office that we can assure you that you'll never meet. They are probably nice people, but you won't be the judge of that!

So it is therefore important to communicate clearly with your banker as to what's important and what isn’t when it comes to ratios, collateral, historical track record of your company, etc. In the case of banking in Canada more often than not more info is better than less. Sales and growth projections are very solid tools.

Accountants and experienced Canadian business financing advisors are solid resources in negotiating with banks. They have both the relationships and know the lingo!

Any bank financing request should clearly indicate:

Funding required
Term and Nature of financing - i.e. term or operating
Use of funds
Repayment capabilities via cash flow or monetization of current assets

The bank will ALWAYS focus on collateral quality and cash flow. Be prepared to discuss those.

So, should you focus on finding the best bank in Canada for your business? Our own opinion is to seek the best banker. Remember also that numerous non bank financing sources are available to Canadian business. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with you bank and non bank commercial business loan needs.

P.S. It's probably just us but we suspect the bankers in the TV commercials aren't actually the ones approving our financing request .




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 Bank Financing and Business Loan Expertise






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 Credit In Canada . Knowing When You Need Financing Options And Sources

How’s Your Business When It’s On The Operating Table ?


OVERVIEW – .Information on business credit and financing options for Canadian business. How does the owner / manager assess the need for finance options and sources of capital in Canada




Business credit financing options in Canada. Sources are capital are consistently sought by owners and managers of Canadian firms. One way to assess the type of financing you need is by putting your company on the ' operating table '. Let's examine some basic techniques, strategies and real world solutions that will provide meaningful answers to the eternal question ' Where's the money '. Let's dig in.

Whether you call it an 'art' or a ' science ' the answer to the type of Canadian business financing that you need lies in looking at your companies practical situation and looking for quite easily found ' clues ' your over solvency and liquidity in terms of day to day operations and growth .

A top priority for the business owner / manager is to ensure they understand current and long term solvency of their firm. It's that overall solvency that allows you to get credit from banks and commercial finance firms offering a wide variety of non - bank solutions. Those non bank potential financing solutions include:

A/R Finance
Inventory Financing
Asset based business lines of credit
Sale leasebacks
Equipment financing
Bridge loans
Unsecured Cash flow loans
Tax credit monetization
Supply chain /PO Finance

When your company is on that operating table don't forget to check the patient for ' circulation’. However the circulation we're talking about is how your current assets circulate - typically that’s the flow of your cash to inventories to receivables and back to... you guessed it... cash! Your circulation is excellent if you're collecting your A/R to terms and turning inventories over promptly.

It's another reality that short term cash, liquidity and solvency issues don’t fix your long term capital structure. Always be cognizant of the amount of debt you are carrying relative to owner equity.

Three great ' buzzwords' to keep thinking of as you assess your solvency and financing options are:

Trends
Changes
Movement of cash

Business credit in the short term typically revolves around inventory and A/R turns.

While all business owners we meet consider their firms unique the reality is that you can easily benchmark your balance sheet and operating results against others in your industry.

Ownership of assets such as equipment and real estate requires that you seriously consider your ability to generate profits and cash flow - notwithstanding that the assets themselves are the actual collateral for the debt.

We're always impressed by business owners/managers that maintain on going income and current asset information - aka ' budgets'. These allow you to assess current and seasonal needs. They are great tools to impress and secure bank financing in Canada.

Certain types of financing can help the business owner address unrealistic debt burden. Many businesses in Canada are simply weak because of what we can only call ' inadequate financing '.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in assessing business credit needs and identifying financing options and sources of capital and cash flow.



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 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



















Stan Prokop

Accounts Receivables Financing. How The Credit Crunch Popularized Factoring In Canada

Why Is A/R Finance Winning A Lot of Popularity Contests These Days ?



OVERVIEW – .Information on who provides accounts receivable financing in Canada . Factoring continues to replace many previous methods of business financing including bank lines of credit . Here’s why




Accounts receivable financing in Canada . Also known as ' factoring ' or invoice discounting it has gained large popularity in the Canadian business financing marketplace . Why is that , and is it a solid consideration for your company ? Let's dig in ?


Canadian chartered banks clearly aren't the only ones that lend against your business assets these days. In the ' old days' they certainly always played the lead in this role, but these times as our buddy Bob Dylan said ' time's they are a changing' ‘!

Although A/R finance was certainly in place and used in Canada prior to 2008 it is safe to say the global recession/financial meltdown in 2008 exasperated a lot of attempts for businesses to finance their assets. And we're even talking strong companies, sizeable in nature!

Unregulated companies, both U.S. and Canadian started at that time to gain significant traction in the commercial lending marketplace. Simply speaking they had more flexibility and to a certain extent are prepared to take on more risk when it comes to business lending. Factoring simply allows loans to be paid from the liquidation of your receivables. While facilities certainly exist that can be a ' one of ' in nature typically this type of financing is on an ongoing basis - replacing traditional commercial bank lines of credit.

The other reason A/R finance has taken off is that it is much less prejudicial to certain industries, stage of development, etc. Even a start up with sales growth can easily be financed with factoring in Canada.

Other reasons for popularity include the fact that these facilities grow, pretty well automatically, with your business. Bank lines and other forms of term debt borrowing imply set credit limits, and covenants such as debt to equity and cash flow that must be maintained to satisfy ongoing financings.
Additionally firms that often use factoring solutions have some serious seasonality or bulges in their requirements that a traditional lender just can't always address.

Any lender, certainly banks included, prefers to deal with growth type businesses. However the A/R business financing solution, non bank in nature even allows companies experiencing distress to access cash flow and working capital requirements. In truth though declining sales or firms who are in death spiral mode are not the best type of candidates for any type of finance!

The entire approval process in accounts receivable financing couldn’t be more basic. Initial requirements are simply your year end financials, interim statements, and aged assets lists, including A/R and also A/P. On balance Canadian firms can typically borrow up to 90% of outstanding accounts- which also is significantly better than bank margins for lending. Our preferred solution for clients is
CONFIDENTIAL A/R FINANCE allowing you to bill and collect your own receivables through the entire financing relationship with you’re A/R lender.

What does the Canadian business owner or manager need to know when assessing this new found popular method of financing? The basics are the actual financing or discount fee charged, understanding the actual advance rate ( our previously mentioned 90% is the norm ) and getting a solid grasp on any misc fees including set up, termination, and misc expenses for wire transfers , etc.

If you sales are increasing and you can’t access the cash flow you need , create immediate positive cash flow with a factoring solution. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with working capital finance 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 :


7 Park Avenue Financial = Accounts Receivable Financing Solutions






CONTACT:
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

Bank Financing In Canada. See Business Credit With Different Eyes

Is There A Shortcut To Better Bank Financing In Canada ?


OVERVIEW – .Information on bank financing in Canada . Business credit can be accessed through chartered banks, if you know the criteria . When you can’t meet those criteria alternatives are available



Bank financing in Canada. Business credit is not always viewed the same way by business owners and financial managers. In many cases clients we meet are sometimes even thinking there's some sort of short cuts to quicker assets to bank finance.

Let's take a look at the proper way of addressing and accessing this critical financing for established and growing companies. And by the way, if you’re not established and doing well there are in fact other business financing alternatives to financing your business. Let's dig in.

The key point in achieving bank financing success in Canada is knowing of course how the bank views lending. That's actually the simple part of the puzzle, because, simply speaking, banks are cash flow lenders with a, shall we say ' strong interest ‘in secondary sources of repayment! Those secondary sources include personal guarantees, collateral, etc.

In fact that's one of the key challenges you face if your firm in the opinion of the owner and manager has great prospects - because our Canadian chartered banks focus on how predictable your cash flow and profits were in the past. So having a bad current or past year in a number of areas simply puts you behind the 8 ball quite a bit.

While it’s not the concern of business of the business owner / manager one must not forget our banks, who are among the best rated and highest reputation in the world are highly regulated. As Canadians that’s a good thing when it comes to bank stability, solid capital bases etc. That, however, does little for the business owner looking for some maximum thinking or ' out of the box ' thinking.

Pricing for bank financing for business credit needs is pretty well the best relative to any other comparable finance solution. However, how is that pricing established? In the end it’s a combination of collateral you personally and your firm can provide, shareholder equity, the infamous ' cash flow coverage ‘

An interesting point? Even if your firm has all of those you might find that the bank views your entire industry as unfavorable or high risk, as a result you'll still be significantly challenged when looking for business credit solutions. That's when some of those other alternatives might make sense. Those include:

A/R financing
Asset based lending
Sale leasebacks
Mezzanine financing
Tax Credit financing

Many businesses find themselves in the unfortunate position of being place in SPECIAL LOANS if they default on their bank covenants. We again point out to clients in that position that there are numerous non bank alternatives to being rescued from special loans designation.

One other conundrum of the business owner seeking bank capital in Canada is ' GROWTH ‘. Growth is a good think right? Not so fast mister... or Mrs! That because when it comes to financing growth means using cash, not generating cash, and banks historically wrestle with that issue. Again, that’s where some of those non bank solutions work best!

There is no real short cut to bank financing and business credit in Canada. You have to see it through the banks eyes, not your entrepreneurial ' special vision ' glasses!

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with bank needs and alternatives sources of capital.



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 = Bank Financing Business Credit And Alternative Solutions


CONTACT:
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

Small Business Government Financing . 6 Things You Might Not Know About Canadian SBL Loans

You Might Have It Wrong On Government SBL/BIL Loans






OVERVIEW – .Information on small business government financing loans in Canada. The SBL Loan works for thousands of companies just like yours with Canadian finance needs



Canadian small business government financing . There isn’t a day when we don't meet clients who are looking for information on the SBL loan in Canada. What's worse, in many cases what they do know... well suffice to say... they've got it wrong. We think we can fix that in pretty short order, so let's dig in!

There are several methods of financing a start up in the start up and SME sector in Canada. Knowing what they are and preparing to address them is what the business owner/manager needs to deal with.

In many cases our clients often focus on their bank that they have always dealt with - that comes from the convenience of a past and current relationship more often than not. Just remember though that convenience and a short walking distance are not always guarantors of successful Canadian business financing!

No Canadian chartered bank is going to bend rules or get involved in marginal situations, so it’s important to focus on a bank and banker that will deliver - many do, but not all. While things like fees, access to on line services, etc are important they ultimately depend on getting your company the kind of credit and working capital you need.

Common sources of business financing in Canada also include unsecured business lines of credit, business credit cards, supplier financing, equipment and receivable financing.

But is that all? Definitely not, because today we're focusing on the Govt SBL loan and why it just might make sense for your firm.

So, here's 6 things you might not know about the BIL (that’s the formal name of the program) loan in Canada.

1. The loan has limited personal guarantees (for some reason our clients like that one!)

2. Pricing is very competitive given that many businesses that apply are in start up or very early years of growing their business

3. There are only 3 asset categories that can be financed - they are equipment assets (including trucks, etc), Leasehold improvements, and real estate.

4. The term ' government ' is a bit of a misnomer - while the government runs the program and guarantees the loan to banks in actuality all loans are delivered through the chartered banking system. So as much as the Canadian business owner dreams about having a strong day to day relationship with the government and its business the reality is that its business as usual with no direct contact with the government!

5. Many clients imagine the application is cumbersome and involved. It isn’t. You need a business plan, some very normal info on your business - i.e. articles of incorporation, premises lease, etc - Voila... you're off to the races. Oh and by the way, while many business people choose to be incorporated you in fact can be a proprietorship or partnership.

6. Even firms that are start up in nature can be financed under the program which provides a maximum loan of 350,000.00. That covers off a lot of business financing needs.

So, did you have it wrong? Many do... so seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your finance needs via small business government financing - aka the ' SBL '.






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 Small Business SBL Loan Financing






CONTACT:
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