Account Receivable Financing . Paying Proper Attention To This Business Cash Flow Solution?

Business Financing Method That’s Not The Harsh Reality You Thought It Was?

OVERVIEW – Information on accounts receivable financing in Canada . Understanding why .. and how! It works is critical to cash flow success




Accounts receivable financing in Canada. Rarely does paying proper attention to business details not pay off, and that's what we maintain this method of Cash Flow financing is all about. And, despite what you perhaps have heard, there’s no real harsh reality here. Let's dig in.

A/R financing in Canada is really a ' sub set ' of what we call asset based financing in the Canadian business financing marketplace. So why should the Canadian business owner or financial manager pay attention to this financing solution. Only one reason , that it advances cash flow to your company as you create sales - so if you believe cash flow and working capital are critical to your business ( that's a mantra we NEVER give up on ) then you're pretty well on board already.

This method of financing is, 99.9% of the time, offered by non bank lenders. They are commercial finance companies that specialize in providing your firm with a business based receivable line of credit.

While this type of facility works in the same manner as the traditional bank line of credit (you supply regular A/R and sales aging - funds are advanced). One immediate positive difference is that these funds are generally advanced at 90% of your outstanding a/r under 90 days - banks , surprising taking a more conservative approach ,

(!) advance at only 75%.

If we had to clearly identify to our clients one major concern most companies have it's the level of involvement of the A/R financier in your business when you borrow under this method. While banks simply register a security against your receivable and allow you to borrow funds against a specified limit at your will the A/R financing solution can be described as ' more involved '.

Why is that? One basic reason is that many firms that borrow from banks have a financially stronger financial profile. Firms utilizing AR finance often cannot meet bank criteria for any or all of the borrowing they need.

So is there actually a way to retain all the benefits of a business line of credit in A/R financing and control full ownership and control of your billing and sales function?

There is... and it's called CONFIDENTIAL RECEIVABLE FINANCING. Under this method your firm retains total command of your cash flow cycle. Bottom line, you're receiving all the benefits of A/R financing while being the master of your own domain - i.e. billing and collecting within our current customer relationships.

Another key factor, often also becoming a harsh reality, is the fact that Receivable financing from a commercial finance firm is more expensive than bank financing, which of course these days is in the low single digits when it comes to interest rates on business credit facilities.

The size of your AR facility is often a key determinant in pricing. While a small majority of firms in Canada can in fact achieve bank type pricing on this type of credit facilities the reality is that the overall cost of cash flow financing of receivables from a non bank finance firm is typically in the 2% per month range. But when you benchmark that against having all the cash you want, and having the ability to take on as much business as you want it’s not the worst tradeoff in the world.

Oh, and by the way, most companies can offset a huge amount of their financing costs by achieving faster asset turnover as well as being in a position to take discounts with suppliers now, often equaling the total cost of their borrowing!

So, if you haven’t paid attention to this method of financing your firm now just might be the time. And employing the services of a trusted, credible and experienced Canadian business financing advisor just might eliminate those harsh realities that were top of mind when it comes to financing your 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 :


7 PARK AVENUE FINANCIAL = CANADIAN A/R FINANCING AND CASH FLOW 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

Equipment Lease Financing In Canada . Why Its Better Than Just Average

Equipment Lease Financing In Canada . A Real HOUSE OF WONDERS Financing Solution for Canadian Business

OVERVIEW – Information on equipment lease financing in Canada . Here’s one key advantage of utilizing this method of asset financing that you probably didn’t know about










Equipment Lease Financing in Canada .When companies borrow from banks and other asset based lending firms there is, almost always, certain covenants that are put in place to ensure the lenders comfort with the financing. These covenants tend to be financial ratios (we can call them 'number relationships') that would allow a lender to get some sense of early warning that their loan may not be repaid.
The most typical covenants the lenders place on borrowings tend to be:

- Working capital guidelines
- Total debt versus total equity in the company
- Cash flow coverage - i.e. the company's ability to generate cash to pay the loans.


When these covenants are broken discussions ensue with the bank and the company!


Leasing and equipment financing, as a borrowing strategy, 99% of the time we feel, eliminates the additional risk a company takes when borrowing on equipment. That is to say that lease companies, in general, to not insist on those same restrictive covenants that the bank does. We can therefore make a statement that the company has a greater feeling of independence when it enters into a lease financing arrangement.


Why does the lease company not require those restrictive covenants? That is probably for two reasons - the first is the fact that leasing rates are, in general, higher than bank rates, so the lease company reflects their risk in pricing. Many times the lease firm will also ask for a deposit or advance payment to further augment our above point.


And at the core of why the lease company does not insist on restrictive covenants is the fact that most lease firms have very strong asset experience and are generally comfortable with collateral. As we can all imagine, banker can't be expected to have a strong sense of equipment valuation and remarketing - they are of course more 'numbers' oriented - relying on the balance sheet and income statement to predict payment, not the value of the asset.


In summary, leasing as an alternative form of finance allows a firm to acquire equipment without additional concern over lender covenants and ratios more commonly associated with banks. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your asset 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 = EQUIPMENT LEASE FINANCING EXPERTISE IN CANADA




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

Sred Funding Film & Digital Media Tax Credit Financing In Canada . Eliminating Glitch In Finances Of Tax Credits

We Are Not Pigs At The Trough … We’re Just Maximizing Canada Tax Credit Incentives for Cash Flow



OVERVIEW – Information on SRED funding and digital media tax credit and film financing in Canada . Use tax credits to cash flow your government programs – Everyone else is




Tax Credit financing in Canada. Certainly any form of a business tax credit conjures up images of Canadian business as ' pigs at the trough' - taking maximum advantage of government programs in a manner that connotates greed.

So what is our point today? Simply that utilizing valid government programs such as the SR&ED program, or the digital media tax credit designed for film and animation projects is simply smart business sense. And when you finance these very legitimate and established programs you’re simply ' cash flowing' those two government programs to ensure business and economic sense. Let's dig in.

No one doesn't admit there are ' naysayers' around these two programs. In fact the SRED (Scientific Research Experimental Development) program went through what can be only called a major overhaul in the last year or two. When all the dust settled though Canadian business owners were still eligible for approximately 40% or so of their R&D expenses via a tax credit.

Most people probably agree that the biggest change under the program, and it certainly affects the financing amount quite a bit, is the end of being able to get credit for equipment assets under the program covered. So that typically in the past has included computer equipment, lab equipment etc that was obviously needed for the research.

However, even if you back that component out the SRED credits are still very valuable, and, when financed, provide a strong source of cash flow and working capital for firms committed to spending. And to make out point, one of Canada's leading business publications stated awhile back that a solid portion of growing companies in Canada used SRED tax credits and financing thereof for almost 1/4 of all their external financing needs.

SR&ED funding in Canada is a very basic process. Claims are generally financed at 70% of their total federal and provincial level. Transactions are structured to maximize finance benefits for your firm - the structure is really a bridge loan, without payments, that gives you cash today for your tax credit tomorrow. Simple as that. That allows companies to access valuable working captial prior to the government doing their usual thing on validated your claim, and processing your annual return, etc.

Oh, and by the way, the biggest new trend in SRED funding is the ability to cash flow next years credit now. There’s a cash flow advantage!

Changing lanes very quickly, let’s recap the Digital media tax credit used for film and animation projects in Canada's media and Transmedia industry. It's not secret to most that Canada enjoys the nickname HOLLYWOOD NORTH.

Canada's film tax credit industry pulls in hundreds of Canadian and foreign producers because we have what can only be described as ' healthy ' tax credits that help fund productions. And these, as we have noted, are financeable! So when you see a movie that looks like ANYTOWN USA it just in fact might be the corner of YONGE AND DUNDAS in Toronto, or STANLEY PARK in Vancouver, or Montreal's Laurentians.


Canada recognizes the contribution in revenue, taxes, and image enhancement by this industry; As such productions get tax credits for the amount they spend in Canada for production spending, and to certain degrees cast and crew, etc

The film tax credit is financeable also, and often is the final straw in a total financing package that allows the production to move forward. Other elements include producer equity, pre-sales, advertising budgets, etc.

While SRED and film tax credits are hardly related relative to their respective industries they are financed in pretty well the same manner - IE bridge loans funded based on specific amounts as validated by a good film tax accountant that maximizes your spend credit .

Film and Media projects in Canada tend to be out of Toronto, Montreal and Vancouver. In fact the provincial domains of those three great cities compete fiercely for your tax credit business, as most politicians seem to believe their provinces recoup tenfold in economic activity.

So, bottom line, we can sit around all day and talk about PIGS AT THE TROUGH, or MANNA FROM HEAVAN. Our point is simple. SRED and Film tax financing maximizes these two legitimate and available programs. Utilize them while you can to enhance your business success.

Seek out and speak to a trusted, credible and experienced Canadian busines financing advisor who can assist you in your tax credit financing 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 :


http://www.7parkavenuefinancial.com/sred-funding-digital-media-tax-credit-film.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

Business Finance . Diagnosing Your Need And Solutions For Financing Loans And Credit

Finding Business Finance Needs As Hard To Get Approved As A Senators Expense Account?

OVERVIEW – .Information on accessing business finance needs in Canada . Financing Loans and asset monetization are not as difficult as you think




Business finance solutions in Canada. Is it just us or are clients mostly saying these days its harder to access financing loans and business credit as ever - dare we say it to remain topical .. even harder than getting a Senators expense account approved! We understand the issues, and don't necessarily agree, so let’s dig in.

While there is a lot of misunderstanding out there in the business financing landscape we do still maintain that a lot of common sense, some basic business financing knowledge, as well as access to trusted proven advices is the heart of today’s discussion topic. Things are even more positive when we're talking about growth, but surviving is important also!

If there is one thing we always are seeing after initial client discussions it's simply that they have been pursuing the wrong type of financing. Companies in the small to SME sector are rarely candidates for VC and private equity type solutions - yet they share stories of having been led down the path to glory

by companies or advisors of that ilk












If you're a betting person you'll make a lot of money when you win the bet, which is that your company is the 1 in 500 that gets some sort of equity financing going. Ourselves, we don't like those odds, so we focus on proven solutions to growth capital, including, but not limited to:

Securitization
Receivable facilities
Inventory finance
Supply Chain/ PO financing
Asset based lending
Equipment finance and sale leasebacks
Asset based non bank lines of credit
Canadian commercial business bank financing
Secured and Unsecured cash flow loans

There are some solid rules around accessing the above types of capital. They include:

Being proactive in addressing financing needs before the cash flow crisis occurs

Understanding how the competition might be financing them ( Certain types of financing solutions lend themselves to certain industries more commonly )

Being able to articulate EXACTLY what you are going to use the funding for

Know who has access to the above names types of capital that we outlined above - those solutions driving growth and ability to monetize assets

Understand how different rates, terms and structures will affect your financial statements

More often than not some of the business finance solutions we have in fact outlined can help you fix some real problems in your business. And by the way, those same solutions don't need to be EVERGREEN in nature; they often are simply a bridge to a different type of financing. A typical client we talk to often needs alternative non traditional financing to help fix some issues or growth, all the while staying focused on getting back to some lower cost traditional bank type financing.

Diagnosing your needs for business credit is half the battle. Accessing the right solution that matches your company and industry needs - together with proven advice and expertise is the other half. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can make business financing a bit easier than getting that Senate expense account approved!



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 = Business Finance Solutions In Canada





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 Bank Credit . Understanding The Financing Habitat Of The Rare Great Commercial Banker In Canada

Commercial Bank Financing Seem More Like A Roller Derby Challenge ?

OVERVIEW – Information on bank business credit in Canada . Understanding what the Canadian commercial banker offers and requires is key to business financing success



Bank business credit in Canada. Our clients are very much forgiven for sometimes feeling that obtaining commercial bank financing in Canada is more akin to working there way through a roller derby tournament - high levels of navigation required at all times.

Key to understanding your ability to access and receive commercial bank financing is understanding the habits of that rare beast - the Canadian commercial banker. We say rare because we're talking about the good ones! Let's dig in.

Although it should not, in our opinion, necessarily be the case the hard reality is that most Canadian business owners and financial managers feel our Canadian banks are the ' go to ' when it comes to debt or operating capital finance. (They often forget, or worse, don't know, that those same solutions are offered in abundance by commercial finance companies, lease companies, and non bank asset based credit line lenders.)

The business owner/ financial manager can be forgiven though, because when bank financing is accessible by your firm the financing is in great abundance, and every type of business financing needed can be on the table.

Bank offerings in Canada today, depending on who you are dealing with, offers -

Term loans
Lease Finance
Securitization
Equity Capital
Revolving credit lines
Trade Financing
Letters of Credit

Well, you get the picture. The key aspect that needs to be realized is that banks are at their essence cash flow lenders, so a great deal of emphasis is placed on analysis of your historical, current, and projected cash flow. Each bank might look at this a little differently (but not that differently) and at the back stop of that analysis is your ability to offer secondary corporate and or personal) collateral and guarantees.

We have always been of the opinion that there is a general similarity to commercial bank lending and competition. The difference, again, in our opinion, is the quality of your commercial banker. He or she operates in a very regulated and bureaucratic environment - so finding the commercial banker that is genuinely interested in your business and its growth is key, because, unlike in the U.S. , banks are highly regulated they are somewhat predictable in their behavior and offering Therefore the amount of capital they can lend, the rates, and margins on loan to value lending are not that dissimilar.

Many clients find themselves at some point in time being ' out of favor' with the bank. This might also mean they are segregated into a ' special loans' portfolio. At this point it's often time to consider non bank solutions, especially if your assets and growth potential are still there.

In general, start up companies in Canada can not, we repeat, cannot access commercial bank financing. The absence of our aforementioned cash flow coverage, collateral, and predictability of financing performance isn’t there. Don't count on your bank to properly finance a start up - but do consider non bank commercial financing sources.

Just knowing a couple of basic ratio qualifiers will help you often to understand your chances of success with bank business credit. Cash flow coverage should be greater than 1:1, and debt to equity rarely can exceed 2 or 3 to 1, respectively.

While commercial bank business credit in Canada is the lowest cost for pretty well every type of finance you need your challenge understands the criteria and probability of success. And finding a great banker is key - its alwasys back to the people component.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your bank, and non bank commercial financing 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 :

http://www.7parkavenuefinancial.com/bank-business-credit-canada.html





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

Cash Flow Finance . Time To Investigate The Merchants Of Working Capital Financing

Cash Flow Financing Won’t Make You Skinny .. But It Will ..


OVERVIEW – Information on cash flow finance solutions in Canada . Who offers working capital financing and what happens when your firm doesn’t have it!




Cash flow finance solutions in Canada. Just this week one of the world’s largest retailers made the news almost everyday with rumors rife around their ability to generate, or access... working capital financing to run their business. The result? Suppliers panicking, competitors cheering, and board members running for the hills.

How can you ensure your business is never going to be in that position? Part of the story is knowing what the problem is and recognizing it. The other half of the solution, we think, is knowing who the real ' merchants of working capital and cash flow ' are in Canada. Let's dig in!

Cash flow shortages mean different things to different businesses. In some cases it might mean the inability to replace much needed assets or technology. (By the way lease financing can easily help to address that one). Most business owners in the small and medium (SME) sector in Canada thankfully many times equate cash flow to profits. While incorrect, that’s not a bad thing, we assure you.

The trick to knowing and understanding key cash flow shortage issues is really to track your company's progress on this issue over time. Where many owners and financial managers ' botch ' or misunderstand the process is when they get mixed up in what the financial techies call ' quality of earnings ‘. That’s really about ensuring you have good asset turnover as well as profits. When assets are incorrectly managed you essentially get poorer because the cash you need is tied up in inventories, receivables, and equipment.

Naturally cash flow in your business goes up and down every day, almost every minute. But over time a sense of what's really happening is often easy to spot. There are good reasons why cash flow might be temporarily negative, as in investing in new deals, equipment, technology, etc to maintain your competitive position. Just make sure its' TEMPORARY'!

We've referred several times over the years to the W.T. GRANT story. That company changed the way the entire financial world looked at cash flow and profits in the same snapshot. It's an incredible story - to the outside world the company was doing great- internally inventories built up, receivables were uncollected, and finally outside financing from our ' MERCHANTS OF WORKING CAPITAL ' was inaccessible. Your know the result of course. Bankruptcy, with analysts all around the world suddenly trying to figure out what happened.

So who then is the mysterious CASH FLOW AND MERCHANTS OR WORKING CAPITAL in Canada? They include:

Receivable financing

Inventory financing

Asset based lenders

Equipment lessors

Tax credit financiers

Securitization

And lest we forget, Canadian chartered banks.


It is correct that cash flow financing won't make you skinny, but it will allow you to grow your company, survive, beat your competitors, and generate real profits. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your cash flow finance needs. Don't be front page business news in the worst way.



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 = CASH FLOW FINANCE 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

Equipment Leasing Canada. Reverse The ‘ It’s Not Working ‘ Feeling With Proper Finance Lease Solutions

Warning Signs You’re In An Unhappy Relationship ( That’s Equipment Financing Relationship By The Way !)

OVERVIEW – Information on equipment leasing in Canada . Finance fixed assets successfully via a finance lease, bridge loan, or a sale leaseback transaction





Equipment leasing in Canada. Is it safe for us to assume you're potentially feeling you're in an ' unhappy relationship ' with this method of financing business assets? The finance lease and related financial solutions are a tremendous way to grow your business properly, if you are in fact in a ' good relationship ‘. Let's dig in.

What then would some of those warning signs be that your asset financing relationship currently isn’t working? Some of them might be as follows -

You don't understand what works and what doesn't

Everything seems a little to complex sometimes

You're not coping successfully with tax/ accounting/credit issues

You don't know what the other party is in fact offering when it comes to choices

You're seeking approval but don't know how to get it



Let's address some of those issues, in effect mending that relationship that your firm is striving to be successful in.


When it comes to choosing a finance lease the business owner / financial manager needs to assess which type of transaction best suits the asset that your are acquiring . That might be a lease to own type solution, or alternatively an operating lease, in effect a ' lease to use '. Under that operating lease you have a tremendous amount of flexibility when it comes to returning the asset, upgrading it, and lowering the overall cost given the asset reverts back to the lessor if you so choose .

While finance and operating leases are the mainstay of business asset financing remember also that you can choose a sale leaseback scenario on assets you already own, bringing in valuable working capital when you need it. Also assets already owned can also be structured under a non - lease transaction, aka a ' bridge loan '.

While it's important to understand the tax and accounting and credit implications of equipment leasing in Canada one also has to remember that you've got tremendous resources to assist you - that could be your accountant, a lawyer, or business advisor, depending on the complexity of the lease .

Approval for a finance lease transaction has never been quicker than in these modern times. Electronic credit reports allow you and your lessor to exchange key financial documentation needed for approval almost instantly, and credit approvals for your transaction can often take place in a day. Larger transactions might involve meetings with your lessor, or negotiations around rate, terms, and structure.




Our bottom line? Simply that an investment in understanding the how equipment lease finance works and how it can benefit your firm will surely mend that strained relationship you're feeling when it comes to acquiring assets for your firm.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your finance lease 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 Equipment Leasing Expertise And 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