Commercial Financing For Business Credit Lines . Is ABL A Revolutionary Way To View Operating Finance Needs

Looking To Get The Upper Hand When It Comes to A Business Credit Line?

Information on commercial financing in Canada . ABL borrowing is a viable alternative to bank business credit lines for firms that can’t always access the financing they need


Commercial financing for business credit lines. Is there a revolutionary new way to look at the way businesses in Canada can access operating credit? We know there is, and it’s the alternative to the good old stand by of bank commercial borrowing. It's called ' ABL ‘. Let's dig in.

ABL’s are asset based lines of credit that are typically ' non bank ' in nature. Some of the very reasons your firm might not be able to obtain bank financing are the same reasons you're the perfect candidate for a business credit line via ABL.

Non bank commercial entities offer asset based loans that operate in a very similar manner to bank revolving credit facilities. All these facilities monetize your current assets -typically A/R and inventory. The asset based credit line takes it two steps further:



1. It often includes fixed assets which increase your borrowing base, but the facility revolves in the same manner

2. Borrowing margins are significantly higher - Receivables typically financed at 90% - Inventory in the 30-70% range depending on quality and mix of the asset in question

Business owners who are growing or have their debt to equity and cash flow ratios temporarily out of whack are also very appropriate candidates for this method of financing. Dont get us wrong though - you still have to have qualified commercial receivables to decent clients, as well as inventory that have the appropriate amount of turnovers and can be liquidated by the asset based lender if needed. Hopefully that is never going to be the case though!

Asset based financing started in the United States, and is also prevalent in Europe. It continues to gain a strong foot hold in Canada, but clearly there are fewer players involved. This often makes it challenging for the Canadian business owner and manager to access the right partner . Some expertise in picking the right partner is highly recommended.

Clients often question us on minimum and maximums size of transactions for business credit lines that are non bank in nature. Typically $ 250,000 is the minimum, and all things being equal there is no upper borrowing limit if your firm has the assets to qualify.

Many businesses are pressured either via banks or other lenders or their equity investors to put additional equity into the company. ABL business credit allows you to eliminate the ' equity ' component of your overall financing strategy. As a result it’s good for larger retailers, tech firms, manufacturers, distributors, almost ever industry is a candidate.

Is it all ' apple pie and motherhood ' when it comes to ABL credit? Not all the time, as this method of financing is typically (not always) more expensive and you have to be prepared to report a bit more regularly on the assets being financed. That’s because they are the sole collateral for your borrowing! Debt to equity and cash flow coverage don't really play a role in this type of borrowing.

The average business owner, financial manager, CFO rarely feels they have the ‘upper hand ‘ when negotiating day to day credit facilities. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you select between bank and ABL facilities in a manner that suits your company best.


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 7 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

7 Park Avenue Financial = Commercial Financing & Business Credit Line Expertise













Stan Prokop

Financing Sources In Canada. Eliminate Turbulence When It Comes To Canadian Business Financing

The Secret Science Of Business Finance Sources In Canada


Information on in Canada . Canadian business financing challenges can be eliminated when utilizing the right type of finance at the right time



Financing sources in Canada. Truth or Fiction? That's probably one of the feelings or comments some clients we meet have when it comes to Canadian business financing.

Let's get in behind some of those sources of finance for the commercial borrower and eliminate some of that turbulence.

Primarily we'll focus on what we could term ' intermediate ' sources of capital. These include trade credit from suppliers, banks, equipment lessors, A/R financiers, and inventory finance solution providers.

Occasionally the business owner /manger forgets to consider that supplier/vendor financing is one of the best and cheapest forms of capital and cash flow. Quite frankly it is much easier to obtain, is rarely, if ever ' secured' or ' collateralized ‘and typically carries no interest penalty

Don't forget though that while delaying payment to suppliers is a ' cash flow positive ' you never want to have that strategy deteriorate the relationship you have with a key vendor. Furthermore if your firm has the cash the cost of not taking a payment discount also must be measured.

Just a quick example on the whole issues of prompt payment. You can check with your accountant but let’s say you bought 10k of product from a supplier and were able to successfully negotiate a 2% NET 60 payment term.

If you calculate your discount foregone and the proceeds from the use of the money you might find that’s an 18% savings rate -so if you can borrow for less than that you clearly are ahead of the game. Bottom line - don't underestimate the power of supplier financing from a payment and cash flow perspective.

Banks are of course the business owner/manger ' go to ' when it comes to financing sources under consideration. However unsecured loans for business, while available, will rarely give you company all the funding you require. Business lines of credit from banks are low cost and flexible - they simply require appropriate bank collateral and the understanding from yourself that there might be some restrictions on your financials re additional borrowing from others, etc. If your company meets cash flow and ratio requirements from banks they are an excellent source of intermediate term capital for loans on equipment, fixed assets, etc.

A/R financing is becoming increasingly popular in Canadian business financing. Why? Simply because it can provide significant capital without additional equity and allows you to avoid long term debt. It has a higher cost, and we also spend a lot of time in speaking to clients around the fact that the old stigma of A/R factoring disappears more and more every day. The old alternative is fast becoming the new traditional.

Other benefits of A/R finance include immediate cash flow and the ability to handle seasonal bulges in your business.

Inventory financing is typically done in combination with a bank line of credit or non bank asset based line of credit. Good inventory financing is available if your firm has quality products; good inventory turns, and is not of a perishable type - i.e. food.

Equipment financing is a solid use of intermediate financing. It allows you to avoid large cash outlays, replenish assets and technology, is easier to obtain from a financing approval point of view, and allows you to simply pay for assets over their useful economic life.

Our bottom line? You can eliminate the turbulence that comes with business finance challenges by understanding what sources are available for what maturity and need. Simple as that. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your needs for financing sources in Canada.


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 Financing Sources




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

Asset Financing Dead As A Doornail ? Let An Equipment Lease Company Revive Your Business Finance Challenges

Is Equipment Lease Financing The Magician You’re Looking For Re: Asset Finance Needs?


OVERVIEW – Information on the equipment lease company solution in Canada . Why this method of asset financing continues to gain traction for Canadian corporations





Asset Financing. Could the Canadian Equipment Lease company be the ' magician ' that turns your asset financing challenges around? We think it does, in more ways than one - and we'll prove it. Let's eliminate that ' dead as a doornail ' feeling around business financing . Let's dig in.

Every Canadian company in Canada is a candidate for lease finance solutions. From the start up to the country's largest corporations - all of them have utilized lease financing. North American stats show that over 80% of companies employ this asset finance strategy.

The lease marketplace in Canada is extremely robust. Whether you firm can command rock bottom rates for large ticket transactions, or alternatively if you have financial challenges a lease transaction can always be structured.

Is it the perfect solution all the time? We're a bit biased , but we recognize that for some companies issues such a pride of ownership, the desire to maximize the residual value of the asset, or wanting 100% control of every aspect of the asset over its useful equipment life are prime .

But, if you concerned about issues such as:

Technology obsolescence
Limited use of assets for a specific period of time
Capital preservation
Credit / Financing approval
Budget limitations and cash flow and working capital issues
Flexibility during the term of use of the asset


Let’s just say that - Welcome to the world of equipment finance

So how does the magic come about when you're looking for the optimal asset financing solution? First of all, pretty well every lease company in Canada wants your business (some might not be perfectly suited for your firm - but they probably still want your business!) - The industry is flourishing and robust in Canada.

Rates in lease finance are always commensurate with credit quality - and even Canadian chartered banks for the most part aggressively participate in this method of business asset financing. Bank lease rates are among the most aggressive in the country. If you company has a clean balance sheet, profits, and good predictable cash flows you are in the enviable position of commanding low rates and amortizations that can go anywhere for 2-10 years in most cases . (Typical lease terms tend to be 3-5 years).
But didn’t we say that everyone is pretty well a candidate. So if your firm has credit and financial challenges lease transactions can still be structured to meet your needs.

How does your firm engage in the ' magic ' when it comes to process? You can approach a lessor directly, solicit bids via tender (government and large corporations often do this, or you can solicit the services of an experienced and credit business financing advisor with lease finance expertise.

Issues such as credit finance approval, type of lease you choose, ensuring competitive rates and structures can easily mystify or distract the business owner/manager -. That's the time to get some solid expertise. Issues such as documentation, tax issues, balance sheet implications, etc seem boring but have a large impact on the ultimate success of your asset financing strategy.

So, can the Canadian equipment lease company put the magic into your asset financing success? Thousands of companies day in and day out can't be wrong. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist.


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 Equipment Financing 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 Financing Options . Difficulties In Learning To Love Financing Funding Alternatives In Canada ?

Need A Checklist For Business Financing Success?


OVERVIEW – .Information on business financing options in Canada . External Financing Issues and recommendations



Business financing options in Canada . Boy is it difficult to learn to love something that always seems so elusive. Is there though, a checklist we can employ to ensure finance funding strategies can properly be put in place? We think there is, so let's dig in.

Having a strong sense of your current overall capital/ financing structure is important as a starter. That will of course determine the amount of debt your firm can or can’t take on.

Any sort of intermediate or long term debt affects how the banks or other commercial lenders view your firm in the context of additional credit extension. In some cases a more positive solution might be to monetize current assets such as receivables and inventory - these don't add debt to the balance sheet and simply enhance working capital and cash flow.


A good example of asset monetization. It might inlcude, but not be limited to:

A/R Financing
Commercial bank lines
Non Bank asset based lines of credit
Sale leasebacks
Monetizing tax credits

If you’re firm has access to what we can call traditional capital you need to be in a position to understand current interest rate trends in the context of Canadian commercial borrowing.

Another key checklist point is to understand and have a handle on your overall corporate objectives. Are they focused on cash flow and working capital, or building assets and infrastructure to enhance long term growth?

Remember also that depending on the type of financing you undertake that there are always some tax ramifications which should be both understood in the context of talking to your accountants re pros/cons, future liabilities, etc.

Your company's overall profitability will also affect the type of financing you can undertake. If you don't have current on ongoing profitability in some cases you have access to business credit - however it will be at a cost. A typical situation might be a firm that is in turnaround mode.

If your firm is in growth mode you need to look out at the intermediate term and determine the amount of working capital levels you need. All companies are in different stages - which ranges from start up to mature and working capital levels, and access to them... differ.

A key factor that many clients we talk to seems to be forgotten on occasion is the fact that you need to plan for future cash fall shortages. Here the old adage of getting financing in place when you don't need it is important. In some cases it might, but not always, make sense to consider more equity financing from owners. Dangers of additional equity financing include though certain restrictions that will affect how you can operate the company in the future.

If a lot of your financing needs are affected by what we could call ' external' forces you need to really focus hard on stability and reliable financing.

In some cases firms with challenges can ' refinance the company - i.e. lengthen the term of financing in place, etc.

So, are business financing options and finance funding your ' elusive butterfly’? Proper planning helps eliminate the problems your firm encounters for financing success. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your 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 Business Funding And 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

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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