Business Loan Interest Rates In Canada . You Can Quote Us On This – 3%.

What Is Your ‘ FUD’ Regarding Business Financing Costs?

OVERVIEW – Information on business loan interest rates in Canada. What determines financing costs and who offers what and why?




Business loan interest rates in Canada are a constant discussion point with clients when we're discussing financing options for loans and asset monetization strategies. And it's safe to say there is a huge ' FUD ' factor when it comes to that discussion. FUD is of course Fear, Uncertainty and Doubt, and the costs and different financing alternatives certainly create that FUD factor in the mind of the Canadian business owner and financial manager. Let's dig in.

Different types of funding for your business brings the issue of costs and the sources of that capital. The Canadian business owner and financial manager sometimes forgets to address the fact that there’s a difference in where that capital comes from and the rates that come with that financing instrument.

The reality is that the sources of capital you choose already have defined their required rates of return, whether that be a Canadian commercial bank. A commercial finance company or an alternative lender of sorts. Their business models dictate how that financing is to be priced and there's very little ' wiggle room' once you're inside the 'credit box.'

What then are key factors that determine your interest rates and cost of financing? They include key areas such as:

Financial strength in your balance sheet and income statement

Where your company is on the maturity cycle - i.e. Start up, pre revenue, fast growing, mature, etc

Industry issues and concerns - industries are always in or out of favor - the stock market is a great example of companies that are in their halcyon days or alternatively in a death spiral

Management credibility and reputation

Risk assessment by underwriters associated with your lender - this will shock you but some of them have a bias!

As a general rule we can say that depending on the type of financing you require or choose the rates in Canada are generally 3%. The challenge is that it's either 3% per annum or 3% per month, depending on the financing vehicle you choose. And in some cases that 3% per month makes a ton of sense and is justified...and works!

It's also important to understand who the players are and who offers what, when it comes to debt financing, and of course equity financing, which is not the focus of today’s discussion.

Who then makes up the Canadian business landscape? Key players include:

Canadian chartered banks
Commercial Finance Companies
Insurance Companies
Equipment finance companies
Private Equity/VC types


Their solutions are priced, as we said to risk and the overall business model of your lender. Solutions include:

Commercial bank lines of credit
Receivable Financing
Equipment Finance
Mezzanine/cash flow financing
Asset Based lines of credit - non bank
Bridge Loans
Royalty financing
Traditional Factoring
Confidential Receivable financing
Inventory finance
Term loans
Buyout /merger financing

When the business owner/manager understands their own firms risk profile, and what the benefits are of any type of business financing they can better eliminate the FUD factor when it comes to business loan interest rates and financing costs in Canada.

Seek out and speak to a trusted, credible and experienced CANADIAN BUSINESS FINANCING ADVISOR with a track record of assisting firms who require the right financing, right now!





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-loan-interest-rates-in-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

Factor Financing . Can A Factoring Company In Canada Be Your New 8 HR A Day Cash Flow Generater?

Don’t Be HirooOnoda’d When It Comes To This Method Of Business Financing




Information on how a factoring company in Canada works . It’s time the Canadian business owner/manager understood the ‘factor’ concept and why and when it works for your firm








The factor finance solution in Canada. When it comes to this method of financing a Canadian business a few of the clients we meet these days admit they have done a HIROO ONODA in avoiding understanding receivable financing as a cash flow method.

HIROO ONODA? He was a soldier in the Japanese army that had heard the war ended on his remote island station. The result? He spent 30 YEARS doing things the same old way, not knowing the world had changed around him. So bottom line, it just might be time to surrender to the new alternatives in Canadian business financing. Let's dig in.

How then has one single method of financing your firm changed the landscape so much? Some might make the case that banking in the SME sector is somewhat 'down for the count ' these days - it’s simply hard to achieve in the amount that you need.

Part of the challenge around understanding what the factoring company in Canada does is being able to wade successfully through the different terms and offering of this finance mechanism. So it’s very easy to miss the big picture, or even worse, miss out on the right type of receivable financing that works best for your business.

Our own most recommended solution is CONFIDENTIAL RECEIVABLE FINANCING which allows you to retain full control of the billing, collecting, and financing function of your sales, while the entire time still generating the cash flow you need for operations. So pretty well everyone uses that these days right. Wrong, we would guess that only a small majority of firms who utilize A/R finance in fact are even aware of confidential factoring.

Why is the case then? We can probably chalk that up to a lot of factors - companies who don't take the time to investigate how A/R finance works, or industry players who don’t offer this method of financing and therefore have very little inclination to explain it to you. And by the way, pretty well all the banks in Canada don't offer a stand alone ' factoring ' solution unless it's a subset of much larger transactions in the millions. That certainly eliminates most of the SME sector when it comes to receivable portfolio size.

We're often amazed at how clients seem to stumble on the factor finance solution in Canada. They are looking for alternatives, start talking to people, and suddenly realize, just like our friend HIROO ONODA that there's a whole new world of financing alternatives out there.

While factor financing is frankly available in all sizes for every firm it tends to work best and make sense when your receivables are in the 250k range and above. In many cases, as we have alluded to, its a subset of a total asset based lending facility that includes your inventory and equipment, but stand alone factor financing - i.e. just for your receivable works quite well on a stand alone basis.

So what then should the business owner and financial manager do when they seek alternative non bank financing? A good choice might well be to speak to a trusted, credible and experienced Canadian business financing advisor who can help you ensure the cash flow achieved via a factoring company in Canada works to the max for your firm. That will allow you to bring on that full time new employee, working 8 hrs a day and generating the cash flow you need – aka the Factor finance solution.



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 = A/R Factor Financing Solutions 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

Business Valuation Methods . They Work Whether You’re Buying Or Selling A Company In Canada

A Surprising Thing About Business Valuations

Information on how Canadian business owners and managers can understand business valuation methods when they are buying or selling a company






Business valuation methods in Canada. This should NOT be a shocker to you, but whether you're buying or selling a company in Canada the ways in which you look at the business are basically the same whether you're ' buyer ' or ' seller'.. , or even in a merger scenario. Let's dig in.

When we sit down with clients looking to buy or sell a business, or perhaps even acquire a franchise the proverbial question arises pretty quickly. That question? ‘HOW MUCH IS THIS BUSINESS WORTH'!

It's somewhat of an old saying, but the reality is that the best transactions when consummated revolve around a fair price for both parties. We love the old saying that the best deals are done when both buyer and seller feel like they didn’t get the best deal! Think about it.

So how does that whole valuation process work? And lest we forget, the tax man tends to sometimes, if not always have a vote in your deal.

The simple way to look at a valuation in the small to medium size private company business sector in Canada is to look at it in two ways:

Assets

Going Concern/Cash Flows

When it comes down to the assets in a business the value of those assets is key of course. And since assets are financed by banks, asset based lenders, leasing companies, commercial finance companies, etc your ability to pin down ' true values ' is critical to an asset based deal.

In some cases appraisals might be required. They are needed for both financing and valuation purposes. Appraisals come in three forms -

Fair market value

Orderly liquidation value

Salvage value

Naturally some assets are much more liquid than others. We can make the case the receivables and inventories are of course much more liquid than physical plant assets or rolling stock, aka ' trucks'.

While the business seller tends to focus more on fair market value because they know and believe in their business assets the seller, if prudent should establish the minimum price by focusing on liquidation value of the assets.

Accountants tend to focus on the net book value based on the seller’s presentation of financial statements. It gets a bit tricky though when you try and blend in the fact that recently profits might be down and future prospects, for a variety of reasons, might be at risk.

The whole area of GOING CONCERN VALUATION is the other method that presents opportunities and challenges. It focuses on a lot of time being spent on future earning power. The challenge here, as most business owners know, is that the past doesn't always represent the future! Here methods such as average earnings over a number of years are used to help in the overall bottom line valuation.

What are some of the factors that affect your decision process in a going concern valuation financing?

They might include:

Growth potential under new owners, management, additional financing

Current management positive attributes

Companies that aren't as subject to the economy

Service businesses that require smarts, not capital

Use a common sense approach to business valuation methods whether you're buying or selling a company. Also, assess which factors might affect your ability to finance the company. Financing a purchase might include solutions such as:

GOVT BUSINESS LOANS

ASSET BASED LENDERS

CASH FLOW LINES OF CREDIT

COMMERCIAL BANK TERM LOANS

MEZZANINE FINANCING

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor when it comes to business valuation and financing that makes sense for your deal.




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 Valuation And 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 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