Franchise Business Loan Financing In Canada . Here’s Your Version Of Private School

What Happens When Franchise Business Loans Work?



OVERVIEW – Information on franchise business loan financing in Canada. What special info and insights and expertise is require to successfully finance the franchisees’ entrepreneurial dream and vision



When Franchise business loan financing works in Canada it's easy to see why the franchisee and entrepreneur feels like they just go all the benefits of a private school education. We won't weigh in on the benefits of private versus public education of course; we will say though that if you have the right financial advice, info, and industry expertise contacts you're well ahead of the pack. Let's dig in.

Key to understanding franchising finance needs is the ability to obtain the right type of term loan, credit line, or other type of financing that 's related to a franchise - for example equipment financing.

A lot of those types of borrowing facilities also relate to the amount of personal equity, the proverbial ' down payment ' that comes from your own financial resources. In fact a lot of the up front charges related to a franchise acquisition can generally not be financed - they might include things like franchise fees them, incorporation costs, etc.

Many clients we work with initially under estimate the total amount of financing they need for their purchase from the franchisor. A lot of that pain and embarrassment can be avoided by clear up front discussions with your franchisor as to the total amount of capital required to facilitate a successful acquisition, allowing you also to run and grow the business. A good example here might be a credit line if your business in fact needs one. Business such as the hospitality industry often operate on just a cash basis, which necessitates less working capital.

In some cases the franchisee might be considering the re-purchase of an existing franchise... That's a whole different other 'kettle of fish' - as you're dealing with the owner of an already existing franchise. Key here it to determine the right valuation of the business, as well as clearly uncovering the motivations of the seller who now wants to sell the business. While there are some 100% legitimate reasons for selling, it’s also evident that many franchisees realize they can obtain the sales and profit potential they had hoped. Bottom line you don't want to be purchasing a franchise that is somewhat in ' death spiral ' mode.



A well crafted business plan, prepared by yourself, your franchisor, or an experienced Canadian business financing advisor will allow you to see all the inflows and outflows of cash from day one.

It's a great tool for any business, but for the franchisee it's critically important as they must achieve certain revenue milestones to meet royalty fees, payments on a term loan, etc. Just having a sensible sales and cash flow forecast prepared allows you to see when you're reaching breakeven and profit goals you have set.

Seek out and speak to a trusted, credible and experienced Canadian business financing/franchising advisor who can assist you with your own version of ' private school' info when it comes to successful franchising success.



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 BUSINESS LOAN FINANCING 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

Business Financing Loan Options In Canada. Corporate Credit Is Not The Secret World You Think

Feeling Handcuffed When It Comes To Commercial Finance Options?


OVERVIEW – Information on business financing loan options in Canada . Different corporate credit needs require different solutions . Here’s why … and who and where!





Business financing loan options in Canada... it's no secret that thousands of Canadian business owners and financial managers feel somewhat ' handcuffed' when it comes to their sense of limited corporate credit options.

It's almost as if they feel they can't penetrate the secret world of business financing that many of their competitors seems to have succeeded in. Why is that the case and what can be done about it when it comes to financing your firm? Let's dig in.

We don't think there is anything more frustrating in business than not being able to take advantage, in an opportunistically positive way of business growth opportunities.

The truth is that there is a whole world of options outside Canadian commercial chartered banks. These financing options are provided by independent commercial finance companies, insurance companies, pension funds, etc. In most, but not all options the finance options tend to be more expensive than the bank, but at the same time they provide you with the growth capital you are looking for. We’ll let you weigh the advantages of business survival against a higher cost of borrowing!

One unique and often unheard method of financing 4 key business assets at the same time is the ABL. Thats the term for ASSET BASED NON BANK LINE OF CREDIT. Using this facility as an example of an alternative financing option your firm is able to borrow, under one line of credit, against inventory, receivables, unencumbered fixed assets, and even company real estate if that asset category finds it way into your mix of operating assets.

While many Canadian businesses find themselves informally looking for business finance alternatives in some cases many companies have been asked to exit their banking relationship. Simply speaking their loans have been called and they have been segregated into the banks book of ' SPECIAL LOANS '. We'll of course hold off on the humor around that term!

If your firm is in fact in jeopardy at the bank and has any chance of survival the asset based credit line can almost more often than not take out the bank and provide you with even more ( yes, even more) borrowing power than you had before .

Other solutions to refinancing the bank include BRIDGE LOANS and SALE LEASEBACK of assets, all of which, in effect, refinance the business.

The often fasted way to gain a positive refinancing is to utilize the talents of a Canadian business financing advisor who is experienced in the area. That can be done with the assistance of your accountant or lawyer, or simply searching ' CANADIAN BUSINESS FINANCING ADVISOR ' via the internet, etc. Working with the right party allows you to save you valuable time and brings credibility to meetings and discussions with the plethora of non bank asset lenders in Canada who really do want your business.

Just feeling comfortable about the different options and pricing of those alternatives gives the Canadian business owner peace of mind. Bottom line, those ' handcuffs' can now come off!



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 FINANCING LOAN OPTIONS







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

Alternative Financing Options Are Not The Complicated Concepts For Business Loans You Thought They Were

Out Of Ideas On Business Finance Options ? We’re Not!

OVERVIEW – Information on alternative financing options in Canada as an alternative to traditional business loans in Canada




Alternative financing options are not the complicated concepts and structures some clients we meet think they are. In fact over recent years when it comes to business loans many finance solutions formally thought of as ' alternative' have in fact become... as we maintain .. the new traditional. Let's dig in.

No secret that Canadian business owners and financial managers are looking for straightforward options and advice when they look to obtain debt solutions or asset monetizing strategies.

The good news here of course is that the majority of companies looking for financing are doing that because they have both great promise for larger revenues, as well as the need for the working capital, cash flow and term loans that will satisfy that growth.

The optimal solution is no nonsense financing that matches the right rates, terms and structure to your company's specific need. Yes of course it would be great to go to the Yellow Pages

(does anyone still do that?), look up business financing alternatives and call the right #.

In fact you probably could do that if you were totally, and we mean totally prepared, but the reality is that a lot of clients we meet spend a lot of time searching for solutions that are totally inappropriate for their specific need based on their current financial ' profile '.

The best example of this is when the ' go to ' financing solution is, in the mind of the business owner ' the bank'. If they were to better understand why Canadian chartered banks won't lend them money they would be saving a lot of time and probably a few dollars.

At the core of bank financing in Canada is the concept that business loans made in the Canadian business financing landscape are made 'safely' There is a full expectation there is little, or no risk, simply because as Canadian consumer account holders we have a full expectation with the bank that our funds are safe.



So yes, if your firm is established, has demonstrable historical, present and future cash flow and collateral assets to further back up our financing need its ALL SYSTEMS GO.

BUT .. if your firm is ' bleeding edge' when it comes to new products or services, or if you are ' pre revenue ' , or if your contracts are out of the country , or you require further R&D to complete products and services .. Well we think you know where we're going with that one.

In some cases we can consider government assistance as alternative funding to some degree. Programs such as the Canadian BIL/SBL program or the SR&ED program can provide a significant amount of capital to SME sector firms

So what in fact are those alternative financing options? They might include:

Confidential Receivable Financing
PO/Supply Chain Finance
SR&ED Tax Credit Financing
Short Term Operating Leases
Non Bank asset based commercial business lines of credit
Sale leaseback strategies
Royalty Finance
Contract financing - Example SAS (Software as a Service)


For business loans and alternative financing solutions that make sense (for your firm) seek out and speak to a trusted, credible, and experienced Canadian business financing advisor with a track record of success.




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 LOANS AND ALTERNATIVE FINANCING OPTIONS 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

How To Value ( And Finance ) A Company Business Acquisition In Canada

The Highs And Lows Of Acquisitions Financing


OVERVIEW – Information on how to value a business in Canada and issues that arise in financing a company acquisition





How to value a business when contemplating a company acquisition is one of the larger challenges in Acquisitions finance. The bottom line, as we maintain, is there are some real ' highs and lows ' when it comes to buying a business. Let's dig in.

Larger corporations use some very sophisticated methods of valuing a business. While small businesses and business in the SME sector don't have those same resources the good news is that the same fundamentals apply and they are easier to understand and more common sense than you think!

At he heart of the matter is the ability for you to understand the amount of profit and cash flow that any business acquisition can deliver. For smaller business acquisitions you want to ensure those profits are accompanied by your ability to take a reasonable salary or dividend out of the business if that is needed.

Remember also that if the acquisition has you taking on debt to complete the deal that debt must be retired in some manner. In many cases a solid company acquisition can be financed by monetizing the assets within the business - those assets typically might include receivables, inventory, and fixed assets such as equipment.

A very traditional way of valuing a business is the use of ' multiples'. That could be a multiple of sales, or cash flow.

Businesses that don't sell to clients on commercial credit terms have some unique challenges. Yes, cash is king, but only when it's reported and recorded properly! We encourage our clients as part of many types of financing to obtain 3 months of bank statements for any company in the financing ' cross hairs’.

That gives you a strong sense of inflows and outflows in the business you are looking at.

Murphy's Law (what can go wrong... will!) can play a key role when you want to know how to value a business and finance it. We suppose that's where some of the ' lows' come in that we've mentioned.

Current financing relationships with the business you are acquiring must be ' unwound' or redone in some manner. The same applies to key relationships that have been established with key suppliers/vendors.

In some cases business acquisition finance involves the purchase of an existing franchise. In that case you must understand how franchise terms and royalties will affect your operating capital.

One of the best ways you can turnaround a business after purchasing it is by better managing operating and capital assets. That might include better receivable turnover, better inventory turns, and refinancing existing assets via a sale leaseback.

Always seek some professional help

when it comes to business valuation. That might include help from your lawyer, accountant, or an experienced, credible Canadian business financing advisor; it’s all about reaching highs and avoiding the lows of company acquisitions 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 = BUSINESS FINANCING AND VALUATION 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

Working Capital Management Is The Hidden Power Of Cash Flow And Growth Financing Solutions

Ready To Pull The ‘ Delever’ Stick Via Asset Monetization?


OVERVIEW – Information on working capital management solutions. Cash Flow and Growth isn’t necessarily funded by taking on debt load




Working capital management solutions in Canada. When it comes to cash flow and growth plans for your company it’s not always about the concern of taking on more debt for your company. Let's dig in on that one.

The other day we were listening to the radio as we drove along the Malibu highway in L.A. heading towards Napa... Oh sorry, I think we were actually dreaming and we were stuck in traffic on the Gardiner Expressway in Toronto right near the CNE exit... but we digress...

The radio offered a news story about how Americans are back to ' leveraging up on debt ' after some really tough years. Canadians in turn were ' De- Levering '.. We were a bit better off post 2008 worldwide debacle... and were in fact lowering debt loads after some higher spending years.

That got us to thinking that companies, when they are in survival and growth mode don't necessarily have to take on more debt if they are planning for sales growth. And no prudent Canadian business owner or financial manager will in fact want to take on more debt at the expense of Return on Equity. That's naturally a tough decision for the business owner/manager to take on when the natural tendency is that if you're not getting bigger or growing your company won't survive.


The key point here is that the sales revenue growth you will take on with additional sales causes and increase in your current and fixed assets. Almost no firm, except that of a firm that has no receivables or inventory could achieve profits and sales success without investing in receivables, inventory, equipment and technology

In fact most firms that take on a lot of new debt are immediately suspect with their bankers, who prefer the standard 2:1 debt to equity ratio that comes within their lending guidelines.

So do you absolutely have to plan for new debt load to success in profits and cash flow and growth? Not necessarily! One method to avoid high debt levels is the financing of assets already in place, in both traditional and alternative asset monetization mechanisms.

What are these mechanisms?

They include:

Receivable financing/ invoice finance
Non bank commercial lines of credit for receivables, inventory/equipment
Operating leases for fixed assets
Tax credit monetization
Unsecured cash flow loans
P.O. Finance/Supply chain financing

Naturally not all business debt load is ' bad debt '... If your firm can in fact maintain generally satisfactory debt to equity relationships , while achieving profits, decent return on equity, and respectable interest rates on term debt your firm can of course maintain a ' CAPITAL STRUCTURE' that is a win win for owners, lenders, and management.

Our bottom line today? Working capital management and cash flow and growth scenarios can be achieved by solid asset monetization. Term debt solutions might make sense, but are not mandatory.

If you want to ensure you have working capital management solutions in place to limit debt and still achieve growth seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your business 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 :


7 PARK AVENUE FINANCIAL = WORKING CAPITAL FINANCING SOLUTIONS FOR CANADIAN BUSINESS







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

Business Factor Funding . Recycling A Centuries Old Financing Solution Via AR Finance

Looking For A Recent ( 4000 Year Old ) Business Financing Solution?


OVERVIEW – Information on business factor funding in Canada . Solving cash flow challenges via AR is a time honored financing strategy





Business factor funding in Canada. When it comes to cash flow financing strategies we're often quoted as proponents of new and alternative working capital strategies. But truth be told (similar to fashion!) there's one AR Finance strategy that seems new, but apparently is about 4000 years old . Recycling is hotter than ever... so let's dig in!


Are you aware that business factoring - aka ' receivable finance ' is ONLY about 4000 years old, supposedly starting during the reign of King Hammurabi of Mesopotamia. From that it grew even faster in medieval times as it helps growing garment and textile industries in Europe and North America.


So that quick history tour brings us up to today, where thousands of Canadian business owners and financial managers find themselves in what we can only often describe as challenging times in business finance. So cash flowing your invoices via AR finance, previously deemed as ' alternative' in nature is now simply one of the fastest growing business finance methods

We often find ourselves almost ' over explaining '

why and how factoring works. A simple explanation is to simply say that it's not ' borrowing ‘... it's ' selling'. The paper work around the accounts receivable financing solutions is the mechanism that allows you, at your will and choice, to generate immediate cash by invoking the AR finance mechanism ' factoring'.

So while many business owners/managers find themselves thinking of ' borrowing ' for business finance, they might just want to think more of ' Selling'. As they generate those sales they get immediate SAME DAY advance on the revenue they generate. By the way, the right A/R financing solutions allows to you sell invoices when you want, and certainly not all the time - only when you need the cash. Typically business owners tend to utilize the power of Factoring at key cash flow disbursement times approach - that might be payroll, term loan obligations, CRA payments, etc.



It's important to understand the concept of advance rate within this financing mechanism. Typically, more often than not, that advance rate will be 90%. That is to say if you have a 100k sale, which has been in fact ' earned' by shipping your product, or providing your service, you would receive that same invoice day, if you choose, 90k as immediate cash flow funding . The 10% is a holdback and that’s remitted to you as soon as your client pays. That hold back, in the case of our 100,000.00 invoice will typically have a 2k financing charge attached to it if your client honors typical 30 day terms.


If your firm has significant amounts of capital tied up in current asset accounts such as inventory and receivables you will clearly benefit from immediate same day cash flow received from your business factor funding solution. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your working capital solutions.

P.S By the way, 4000 years ago CONFIDENTIAL RECEIVABLE FINANCING did not exist - today it does. That allows you to bill collect and finance your cash flow under total control of your own management. Check it out.




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 FACTORING 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

Sred Tax Credit Loan Financing Needed? Here’s Precisely How SR ED Financing Works

A Financial Spoiler Alert ? SR&ED Financing Pays Off !

OVERVIEW – Information on how to obtain a SRED Tax Credit Loan . Sred Financing is a valuable cash flow tool to maximize research and development Credits for Canadian Companies .


The SRED Tax credit loan in Canada .Not all Canadian business owners and financial managers are aware of one of the greatest government programs still currently in existence at both the federal and provincial level. The formal name for the program is Scientific Research and Experimental Development program. Most people call it simply the SRED (SR &ED) program; we have also heard many people pronounce it as 'SHRED 'also!


We put Canadian businesses into two categories when we discuss the program - those that don't know about the program period, and those that know about the program but are not aware that their claims can be financed.
SR ED financing is an excellent source of short term cash flow, and allows a company to reap the benefits, in cash of funds that they have put into R&D.


It is probably useful to do a short overview - let's call it a SR ED primer!


The program is administered at the federal and provincial levels of the Canadian government. It is very important to note that the SR ED grant (yes it's non-repayable) is for Canadian private firms only - it does not apply to public corporations the program is applicable literally to almost every type of firm and industry in Canada. A company files it's claim at the same time it files it's year end tax return.


In our experience the majority, we feel almost 95%+ of claims are prepared by an independent third party. They have expertise, credibility, and have a strong knowledge of the program and the government requirements. We would further point out that if a claim is not prepared by a qualified third party then there may be an issue in financing the claim - not always, but sometimes.


Claims can be expensive to process and prepare, and in general the industry has evolved into two types of costs associated with the claim. What are those two cost scenarios?


1. Customer pays a third party in full for time and preparation involved in the claim. The customer reaps the full benefits of the claim when it is processed

2. Customer signs an agreement on a contingency basis, and pays the preparer of the SR ED a portion of the claim when it is approved - bottom line he has no cash outlay and the SR ED consultant is at risk re time and preparation involved in the claim.
Let's now focus on financing of the claim. The financing of the claim is somewhat of a boutique industry in Canada, and requires specialized knowledge around the quality and collateralization of the claim. The Canadian banks, as a rule, with only minor exceptions, do not make SR ED loans.



Claims are financed at approximated 70% of loan to value. What do we mean by that? We mean that loans on SR ED are made to 70% of their combined federal and provincial amount. Example - Customer files a claim for $ 300.000.00. The SR ED loan would be for 70% of that amount: = $210,000.00.


Claims can be financed relatively quickly when working with a qualified financing expert in this area. It certainly is possible to complete a transaction in a couple of weeks, from initial discussions.


Naturally some level of due diligence is required on the firm, and we point out that many firms are in fact total start ups and are filing their claim for the first time. An additional financing note is that first time claims are scrutinized more closely as the customer at that point does not have a track record in this area. Track records help the financing.


There our some other relevant aspects of SR ED financing but our key take away points here are that the SR ED program is a very viable program and source of cash for Canadian business. Claims can be financed, and are a valuable source of working capital. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with SR&ED 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 :

7 PARKAVENUE FINANCIAL = CANADIAN SRED (SR&ED ) TAX CREDIT FINANCING 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