Business Financing Options . Ready For A Really Good Year When It Comes To Loans And Borrowing?

Business Finance Options Aren’t The Light Years Away You Think

OVERVIEW – Information on various alternative and transitional finance options that simply become loans and asset monetization that gets your company where it needs to be



Business financing options in Canada . Is your firm having a ' good year' when it comes to loans, business borrowing, asset monetization, etc? Unfortunately many firms can’t make that positive statement when it comes to capital solutions for their company. So are financing options really seeming ' light years' away? It certainly doesn't have to be the case, so let's dig in.


Many forms of financing these days carry the word ' alternative ' with them - in reality a better description for them is temporary, interim or conditional. That is to say they are mechanisms to either give you a good financing start, or in some cases, get you back to where you want to be.

One such method is receivable financing. When your firm has sales revenues but can't qualify for traditional commercial bank lines of credit then A/R finance steps up to the plate really quickly... Very typical timelines for a firm to have and carry such a facility tend to be 1 to two years. More often than not the company regains banking status (lower cost) and then continues to grow and thrive in a positive manner.

One often misunderstood point about AR finance is that it includes only companies that sell real products. However if you firm provides a service, or perhaps software , or even has progress billings related to the delivery of your services your business can still be financed in this manner.

Another major misconception is that when you are working with a commercial receivable financing company they tend to take full control of your A/R function, including billing and collections and client notifications. That certainly DOES NOT work for many of our clients, which is why we propose CONFIDENTIAL A/R FINANCING as a solution. The bottom line on that one? You bill and collect your own receivables and maintain full control of the client interaction.

One other form of solid financing solution that’s often ' interim' in nature is the ABL loan. It is a comprehensive business line of credit that combines your asset of receivables , inventory, equipment, and real estate ( the latter if applicable) into one business credit line that revolves on a daily basis as your borrowing needs dictate relative to sales and collections going up and down, as they do in any business.

Companies often need new assets when it comes to growing or maintaining their competitive posture. Enter equipment financing, allowing you to finance assets. Although everything from a new photo copier or a laptop up grade for your employees can be lease financed the solution makes most sense when it comes to larger ticket items. That is a proven fact - using our friends in the U.S. as an example over 85% of larger ticket items in business are in fact acquired through a lease financing solution.

One of the most popular methods in the past of acquiring assets under a lease strategy was using the ' operating lease'. This financial ' trick' if we could call it that , allowed you to move asset debt off the balance sheet ... the arrangement being that you were ' using ' the asset, , not ' owning ' it with the debt that comes with that type of transaction. Over the years bankers, analysts, and investors in companies have more or less figured out that it's still a debt though, they just have to dig harder in the financials to figure it out!

Although operating leases ' seem' less in vogue today they still make solid sense when it comes to technology solutions for computer hardware, software, telecom equipment, etc.

There a many reasons why you might be looking for a transitional finance solution. They might include:

Meteoric growth (typically not understood by banks)
Cash flow and debt ratios that is temporarily out of whack
Repayment required to investors/partners
CRA issues that need to be resolved ( asap!)

Etc


Seek out and speak to a trusted, credible and experienced Canadian business financing advisor , who will show you the financing you need isn’t in fact ' light years ' away, its here today with interim solutions that make sense.


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/business-financing-loans-options.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

A SR&ED Tax Credit Loan Is Utilizing The Financing Tax Credits Tool In The Best Manner

Turning The Tables On Your SR&ED Tax Credit Waiting Time

OVERVIEW – Information on the SR&ED Tax credit loan in Canada. Financing tax credits is a simple process that enhances research and development cash flow and maintains your competitive stance



A SR&ED Tax Credit Loan is one of the best ways for small to medium sized businesses in Canada to address some critical working capital and growth and survival issues. If the Canadian business owner or financial manager is committed to R & D then financing tax credits allows you to turn the tables in a very positive manner. Let's dig in.

It's pretty basic stuff that firms such as yours who are committed to research in product innovation and processes are doing that to stay one step ahead of the game when it comes to competition. Unfortunately there's a financial cost attached to that investment commitment, and that's whether you're a start up, pre revenue /early stage revenue business, or established for years.

It's a pretty safe bet that companies that innovate have a better chance of surviving. We read about one company named APPLE that ... well apparently you've heard the story also.

The good news is that the Canadian government recognizes that investment you make also via the SR&ED program in Canada. And you can take that program one step further, as we have noted, by financing your tax credit instead of waiting for your cheque to arrive from Ottawa and your provincial capital. (‘SRED’ credits are a two pronged credit - federal and provincial).

It's a pretty safe assumption that firms who could in fact invest in R&D sometimes don’t as a simple measure of the capital required to move their products and services forward in a competitive manner. Simply speaking, they feel its ' cost prohibitive'. By the way , many business owners we meet who are great candidates for SR&ED also say it's ' too much paperwork' ; and that's an excuse we have a real problem in accepting when the government of Canada hands out Billions ( yes that's Billions with a B ) to the SME sector to your competitors.

That same excuse of ' too much paperwork ' brings out a key point in the whole SRED financing process. Sred claims that are financed tend to be financed by SRED consultants - professionals prepares of your claim. Their experience and integrity adds a lot to the SR&ED tax credit loan process.

So how does the whole financing of tax credits work? It's a more basic process than you think. Credits are financed at 70% of their value in general. They take the firm of a bridge loan with no payments - i.e. your firm receives the funds for your filed credit and your loan is paid and closed when funds are remitted from the government.

And as the man or lady on TV says ' BUT WAIT... THERES MORE’!

(We supposed this is our version of a SRED Finance infomercial!) . One of the newer trends in tax credit finance is accrual finance, or R &D credit lines, allowing you to monetize next years claim... today!






If you want to turn the tables on the waiting game for your tax credits seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with the tax credit financing tool you need to maintain your competitive posture.




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 SR&ED Tax Credit Financing 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

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