Business Financing . How To Finance A Company In Canada

Overlooking the Not So Obvious When Considering Biz Finance ?

OVERVIEW – .Information on business financing in Canada . When the business owner or manager needs to finance a company what are the proper perspectives to keep in mind versus just focusing on the problem at hand . They include timelines and external factors sometimes overlooked




Business financing in Canada . How to finance a company is in fact a question that many owners and financial managers ask themselves... in hindsight.

Hindsight as we know is... great! But isn’t there a better way to assess your options and alternatives in the Canadian business financing landscape. We tell clients we think there is. Let's dig in.

Your timeline perspective when you approach your overall finance strategy is key. Simply speaking are we talking about short term, intermediate or long term financing alternatives and solutions? Short term for the purposes of our discussion tends to be 1 year, while intermediate could well be 3-5... And long term . Well its 5+ years of course.

Each finance solution your company undertakes has upside and downside scenarios. One might not necessarily be better than another, especially if overall cost or rate is your prime yardstick measurement.

In some cases business owners / managers are forced to endure the worst fate possible - becoming economists of sorts! That's because you also have to step back sometimes and understand some of the economic, political and industry issues that are pertinent to your business. These conditions may have influence on your ability to borrow funds or access business credit. If your industry is temporarily ' out of favor ' with lenders you're in somewhat of a potential ' dire straits ' scenario that may force you to access non traditional type funding.

While it’s easy to look at outside solutions when you're thinking ' funding ' the reality is that there are numerous internal sources of funds. They are many times overlooked. Just better turnover of assets - ie inventories and receivables, or better management of payables all lead to strong internal cash flow.

But when you do need your external finance strategy to be in place it then boils down to three key areas - they are:

The cost of the financing
The amount of risk to both your firm (and your lender!!)
The overall effect of the debt or asset monetization on your balance sheet - ie will this financing increase your overall solvency or endanger it?

Is business financing in Canada a challenge? It pretty well always is if you talk to clients we meet daily. So take a step back when your goal is to finance a company properly and keep issues as we have mentioned top of mind. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with proper vision when it comes to financing strategies, effects, and alternatives.


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 Solutions



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 Finance Advisor Needed ? Here’s What You Need To Know About Help Wanted When It Comes To Financing Advisors And Corporate Advisory

Can A Corporate Business Advisor Help Get Your Firm In Tip Top Financing Shape?


OVERVIEW – Information on the role of the business finance advisor when your firm is looking for financing solutions. Working with the right corporate advisors helps guarantee business success



The Business finance advisor . What exactly is the role of financing advisors when it comes to the help you're looking for in running, buying, or financing your business for operations or growth? Understanding the ' help wanted ' solution that you can attain is key to success. Let's dig in.

Why in fact would you want to work with such a person... or firm? Some of the basic needs might revolve around:

Acquiring or merging with another firm
Getting the debt financing you need
Accessing short term bridge finance
Acquiring traditional and non traditional working capital and cash flow solutions

Why can the finance advisor deliver when you can’t? Often times it's just a case of a strong reputation. That allows them to maintain relationships and deliver finance solutions that are attractive to both your firm and the financing entity - whether that is a chartered bank, a private commercial finance company, or alternative solutions of some type.

In a perfect world you're also not just looking for an introduction but for some one that will get you the financing credibility that you need to get the job done.

Clients we meet always want to get the issue of fee or compensation out of the way. Clearly the winning combination here revolves around payment for Success factors that make a fee worth it are the reputation of the person or firm, their background and experience- including track record, and the concept of personalized service .

The concept of working with your firm and the actual ' preparation' of your firm for any type of financing. This typically includes financial analysis and discussion of your company's finance history and needs, as well as negotiating terms , rates and structures available based on the financing you need .

Typical financing requirements that you might choose a Canadian business financing advisor for include:

Receivable financing
Inventory finance
Working Capital and Cash flow solutions
Bank facilities
Asset based lending solutions
Supply chain finance
Franchise Financing
Equipment Finance/ Sale Leaseback/Bridge loans

You accountant or lawyer is also in a position to either help or refer you to parties that have a track record of experience and credibility. The advice and support you get from finance advisors (good ones!) Will help the financing process go a lot smoother with a focus on what's needed in terms of your financing solutions? A good advisor will give your firm the credibility it needs to access financing solutions available -some of which may not have been known or available to your firm previously.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can deliver on the solutions you require to grow... or survive!


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 Advisor


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

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