Options For Commercial Business Financing In Canada Provide A Competitive Edge

Do Business Finance Options Allow You To Wreak Havoc With Competition ?

OVERVIEW – Information on commercial finance choices in Canada . Options for business financing are essential for growth and profits



Options for business financing , executed properly often give the Canadian business owner and financial manager the ability to ' wreak havoc' with the competition, a feeling all businesses probably want to relish. Knowing the commercial financing choices you have available to wreak that havoc is key. Let's dig in.

Just knowing some solid info on how your competition operates can often lead you to financing choices as they relate to the size of your firm, how fast you can grow, the maximum profits you can achieve, and understanding the overall credit profile of clients in your sector .

In some cases also your ability to achieve growth from a merger or acquisition is totally dependent on financing solutions that can make that happen.

In recent times we've learned the hard way that its not just about getting a ' deal ‘, more often than not in the SME sector its simply knowing that somewhere out there is either a traditional, or ' alternative ' finance option for your business.

Lenders, investors, even competitors who know a bit about your firm will often spend significant time on how certain relationships of items on your balance sheet and income statement will show your strength or weakness . Firms with a large amount of debt quickly run into two tricky situations:

1. They are vulnerable to a downward spiral of sales and profits

2. They find that access to traditional bank type financing all but disappears

It goes without saying that if you have your financial house in order your financial strength and access to financing provide a solid bridge to sales revenue growth, cash flow, and profits.

Top experts tell us that a recommended way to address options of financing revolves around two key areas:

1. The amount of funds you need and how you will use them

2. Knowing ( and buying into ) what stage of life your business is in - as that ' stage ' dramatically affects type , cost and structure of financing you need.

As we have offered in the past you are in 1 of 4 different ' stages' of business existence - Simply speaking: startup, early growth, middle market SME, and large cap mature

While the following options are all available to Canadian business:

Going public
Mezzanine financing
Govt SBL loans
Tax Credit Monetization (SR&ED, etc)
Bank lines of credit
Bridge loan
Sale Leasebacks
Non Bank asset based lines of credit
Equipment financing
A/R financing
Inventory finance
PO/Supply chain finance

It’s important to note that some are either unavailable, or even inappropriate for the size, nature and stage of your business.

The right business finance options will always allow you to strategically position your company ahead of the competition; in effect wreak your own style of ' havoc' with the competition.

Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in positive havoc creation as it relates to finance choices!



Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :


7 Park Avenue Financial = Canadian Business Finance Options Expertise







Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

Stan Prokop

Sr Ed R and D Financing And Film Finance Credit Bridge Loans Are Cash Flow Power : Here’s How

Drawing A Blank On Tax Credit Financing In Canada?

R&D And SR&ED Bridge Loans And Media Tax Credits



OVERVIEW – Information on sr&ed and film finance credit finance solutions. SR ED bridge loan r and d financing and media tax credits provide solid cash flow solutions



SR ED R&D financing , as well as the film finance credit often has some clients we meet ' drawing a blank' when it comes to how to monetize either one of these two significant programs.

The reality is that either tax credit provides significant cash flow power, and the ability to finance you credits either before, or after they are filed represents your ability to beat the 'waiting game’ as it pertains to the government approving, and processing your refund chq. Let's dig in.

The SR&ED program, for those who follow or have a vested interest in it has been turned upside down and inside out in the last year or two. It got to the point where the govt did what they do well (?), which is commissioning a report on the validity and benefits of the program to the govt and claimants.

Given that the government provides funds for these two programs in the Billions of dollars it's no surprise the R&D credit program came under significant scrutiny. Since the thousands of claimants under the program are in the SME (small / medium enterprise) sector they have become significantly dependent on the program the changes out of the government study (‘The Jenkins Report') were fairly dramatic, both positive and negative. They included:

Significant emphasis on the real government ' pay back' on the program

Simplification of the application process

Elimination of certain of the credits under the program - i.e. capital expenditures (The main deductions center around payroll and contractor expenses)

Strong focus on who exactly is preparing the claims (aka ' Sred Consultants') and how compensation is charged

The program is primarily for private firms and doesnt discriminate when it comes to industry, geographical location,


FILM TAX CREDIT FINANCING:

While some might say the SR&ED program doesnt maximize Canadian investment in research the converse is probably true when it comes to the film finance credit. (Film finance credits include movies, TV, animation and digital effects) The ' Hollywood North' nickname for Canada didn’t come by chance; hundreds of productions have been filmed or produced here because of the tax credit investment climate.

The three largest cities, Vancouver, Toronto and Montreal all have booming media business.

The financing challenges on any project in any media category are significant. The right film tax credit, when maximized with the assistance of a good tax credit accountant delivers anywhere from 30-50% of total financing required.

The 3D industry is a booming example of the Canadian film industry. Spending by Cdn and co production partners is in well over a billion dollars in VFX areas.

FINANCING YOUR SR&ED or FILM TAX CREDIT:

Tax credit financing is most often structured as a bridge loan. To the benefit of the borrower no payments are required during the duration of the loan and the loan is collapsed as soon as your refund chq comes in. While some banks participate in this type of financing many producers and foreign co production partners seek commercial financing expertise outside the banks.
If you are looking for true financing of a SR ED or Media tax credit seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your cash flow needs in this area.



Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :


7 Park Avenue Financial = Canadian SR&ED And Film Tax Credit Financing Expertise!






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653

Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

Stan Prokop

Cash Flow Finance Solutions : Positive Thinking On Canadian Asset Financing

Transforming Sales Revenue Into Cash Flow

OVERVIEW – Information on cash flow finance solutions in Canada. Mastering the right asset financing at the right time helps guarantee business success



Cash flow finance solutions are all about transforming your sales revenue into cash flow for your company. Sometimes it's easy, more often than not... it isn't. Various forms of asset financing are available to achieve that goal - they come with different costs, structures, and implications. Let's dig in.

One of the things that business owners don't often recognize is the need to take a hard look at the ' difference' between working capital and cash flow in their business. What? There's a difference? There sure is we tell our clients - because the text book situation occurs when your sales are growing, things are great, your accountant tells you that you're making a profit... the only issue .. you feel you're constantly in a cash flow crisis.

The best way to look at it is to simply view the situation around cash flow as the funds that are generated at specific times. It relates directly to what we call the ' cash flow conversion cycle ' which simply tracks the time it takes for money to flow through your business... and end up in the bank.

The profits you show on your income statement almost never approximate the amount of cash you have in the bank. How does the business address financing the working capital accounts: receivables, inventory, and work in process? Numerous solutions are available. A few bring new debt on the balance sheet, which often isn't desirable (example - a working capital term loan).

The other solutions which typically 'monetize' your working capital accounts simply cash flow your assets - into capital... today. Those solutions? They typically include:

Canadian chartered bank lines of credit

Non bank asset based lines of credit

Inventory Finance

Receivable finance

Tax Credit Monetization (Financing your SR&ED claim)

Working Capital term loan

Unsecured Cash Flow Loan

Purchase Order Financing

Sale leaseback of owned assets

Certain types of cash flow finance solutions require traditional credit criteria - for instance banks insist and require clean strong balance sheets, profits, and solid historical cash flow. Thousands of business owners and financial managers can't meet these criteria, so other solutions are still relatively easily attainable - they often come at a higher cost but still provide all the capital you need.

An example - The non bank asset based line of credit. It provides a revolving credit facility that monetizes your A/R, inventory and equipment into one business line of credit. While often 2-3 times more expensive thank current low bank rates it’s still a solid method of achieving cash flow finance.

We mentioned already that profits and assets don't equal cash. If there is any good news in this statement its that if you do have positive working capital - i.e. assets to cover your short and long term liabilities you are solvent. But how you manage, and finance those assets will ultimately determine the success of your business.

If you are looking for ways to transform assets in to cash and manage growth seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow needs.


Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :


7 Park Avenue Financial = Canadian Cash Flow Financing Expertise





Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

Stan Prokop

Confidential Receivable Financing : The Re- Invention Of Invoice Factoring Services

The Experts Guide To The Best A/R Financing

OVERVIEW – Information on receivable financing in Canada. One of the best factoring services is Confidential receivables finance – here’s why




Receivable financing in Canada has made some interesting gains in recent times. First of all there is nothing like winning a 'popularity contest ' and thousands of firms have continued to embrace this method of financing cash flow. And even better than that some interesting ' changes' to how this finance works has offered even more appeal to the Canadian business owner/ financial manager. Let's dig in.

The SME (small to medium enterprise) sector in Canada can be forgiven for feeling under served when it comes to accessing capital that other larger and public companies find easier to achieve. So a sub set of asset based lending, ' factoring services' have stepped in nicely when they find themselves less ' credit worthy' and unable to access all of the working capital they need.

If we step back a bit it's not hard to discover why receivable financing services have such appeal. Utilizing this method of financing, including our favourite and recommended " CONFIDENTIAL RECEIVABLE FINANCING ' your company can finance all North American A/R , ( international accounts often require some form of credit insurance ) , and depending on the type of financing you need risk of bad debt can even be transferred to your financing partner.

While the traditional form of this financing can be termed somewhat ' invasive ' as the collection dept of your firm is taken over by the finance firm it still works for thousands of firms who simply wish to access capital , and aren't really concerned about notifying clients about how they finance their business .

Enter Confidential A/R finance. The appeal here is significant. While the main benefit continues to be the fact that you have daily access ( if you need it ) to working capital this type of ' confidential ' credit line facility allows you to bill, and collect, all your receivables without any intervention whatsoever with a third party . In our own experience with clients that seems to be the desired route business owners/ financial managers wish to take, perhaps it’s our inherent Canadian conservatism!

So how does this method of financing cash flow work? It's pretty basic stuff. Standard finance documents that you would sign with any type of financing are put in place at the outset of the arrangement.

All sales you generate can be financed the same day that invoices are generated. 90% margining of accounts is typically available, which by the way even beats the 75% offered by our Canadian chartered banks. Your clients are totally unaware of your financing mechanism, and you're running a ' business as usual ' company, with one exception; you have all the cash flow and financing you needed based on your sales growth!

If your firm has good financial records and a track record of growth, as well as future growth potential seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with the best factoring services.





Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :


7 Park Avenue Financial = Canadian Receivable Financing expertise!







Stan Prokop









Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Direct Line = 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

Stan Prokop

A Sale Leaseback Is A Solid Way Accessing Bridging Finance Needs : The Asset Bridge Loan Made Easy

A Different Way Of Looking At Short Term Loans Via Bridge Finance



OVERVIEW – Information on the bridge loan concept in Canada . Sale leaseback transactions can help the balance sheet and cash flow via a unique way of looking at bridging finance need




Bridging finance , in some manner, is often sought by Canadian business owners and financial managers. The sale leaseback, via a traditional lease, or a ' bridge loan' (there’s a difference) is one way to achieve that financing need. Let's dig in.

Your company has the ability to make maximum use of your firms owned assets in a manner you may not have considered. It's the 'sale lease back’, and by selling back the asset, or assets to a third party you can address several key challenges you might be facing on the balance sheet, not the lease of which is cash flow.

So how is this type of transaction completed... successfully ? Several factors come into play. When you have assets such as equipment, technology, and even real estate that are used in your core business, are still needed, and are owned outright a significant opportunity exists to ' cash flow' the asset/assets.

Naturally the need for capital can be satisfied in a number of ways, but most owners are reluctant to address the issue of new equity investment - it dilutes ownership and sometimes simply isn’t possible.

Let's recap some of those key benefits of a bridge loan/ leaseback on owned assets. They inlcude:

The ability to free up equity that’s held on your balance sheet - this could actually be distributed to the owners or used as a working capital component to continue growth of the company

If your business is doing well and simply hampered by growth capital the ability of your company to earn higher profits that offset the costs of the bridging finance is a desirable route

In many cases it allows the company to re do their balance sheet in some manner, i.e. pay down other more expensive debt, eliminate some debt altogether, etc

Using company owned real estate as an example you can ensure your company is using capital to operate and grow the business, as your charter is clearly no real estate ownership. Note: Many large corporations, even our chartered banks included have sold their real estate holdings and leased them back - even the big guys recognize they are running a business, not investing in real estate. Apologies of course to those ' PRIDE OF OWNERSHIP' folks!

In certain cases the interest rate environment alone might be a major consideration. The current low rate environment might make sense to acquire capital at 4% and reduce debt acquired at 9% as an example.

Finally, in some cases your advisors such as accountants and the tax folks might be able to point out some solid advantages to a sale leaseback.

If you’re looking for a different way to raise capital/cash the sale leaseback is a great way to address bridge finance needs. That might be either a traditional lease or a short term bridge loan. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can turn those needs into ' easy'.



Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

7 Park Avenue Financial = Canadian Sale LeaseBack expertise!







Stan Prokop









Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

Stan Prokop

Franchise Loan Search : How Not To Ruin Franchising Opportunities In Canada

Franchise Financing : If Opportunity Knocks Are You Ready? Here’s Your Backstage Pass

OVERVIEW – Information on financing franchise opportunities in Canada . Getting a Franchise Loan Approved Is About The Right Info With The Right assistance




A franchise loan search in Canada, when it comes to exploiting franchising opportunities that appeal the entrepreneur can be a daunting search. In fact top experts tell us that the industry as a whole recognizes the fact that access to the right amount of loans and financing is ' top of mind' for new and existing franchisees. Let's provide a bit of a ' backstage pass ‘into critical aspects of this challenge. Let's dig in.

Franchisees in Canada have access to numerous services provided by their franchisor and other members of their ' team'. However actual loan financing tends not to be one of them.

Almost all franchisors provide a portfolio of ser vices around location, training, business development and other aspects of franchise survival. Is anything missing in all that assistance - Most often it’s financing!

It comes down to some pretty simple basics - knowing who finances franchises, understanding how they are financed, and knowing if you qualify for the capital you need to both acquire, operate , and grow the business.

Think of it as basically matching your profile to the right amount of capital - simple as that.

So what are those key basics that the franchisee, he or she, must have under their belt? They include:

Understanding term debt and operating capital needs for both acquisition and ongoing operations

Knowing the amount of capital that you need to invest as an equity investment that satisfies the franchisor, your lender, and the capital structure and ongoing needs of the business (Too many franchisees we work with underestimate long term needs for credit facilities and asset replenishment)

If you are approved for a franchise loan is there a clear understanding as to how the loan will be repaid out of cash flow and profits (The cash flow in your business plan must be realistic and allow for contingencies)

The ability to assess how much personal collateral/guarantees are required

In Canada franchise loans are made by a small handful of specialty lenders as well as the often used Govt Small Business Loan ( SBL) which has evolved into being perfectly suited for the acquisition of a franchise . Interest rates by specialty lenders as well the SBL loan are very reasonable , in our opinion and misc. set up fees or processing fees are ultra reasonable in the scheme of things.

The forms of finance you undertake come under 3 categories:

Assets
Leaseholds
Operating Capital

You need the right mix of financing to successfully attain all three. Numerous external financiers such as equipment lessors and working capital lenders (term and operating) round out the financing of franchise opportunities.

The most clarity to your financing needs will come out of your business plan, which will include info on yourself, aka the ' franchisee', as well as the industry, the business model, and solid financial projections that provide a road map to the right financing.

To ensure you're ready for a franchise loan when opportunity knocks in this industry seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your loan needs.





Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

7 Park Avenue Financial = Canadian Franchise Financing Expertise





Stan Prokop







Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653




Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

Stan Prokop

Financing Film Tax Credits And The SR ED R And D Tax Credit : Think You’re Winning ?

The ‘ Second Coming ‘ Of SR&ED And Film Tax Credits Is : Financing !

OVERVIEW – Information on financing the SR ED ( SR&ED) R & D tax credit in Canada . Finance Research and Film tax credits accelerate cash flow and working capital for two great Canadian government programs



Financing the SR&ED R&D Tax Credit, or Media and Film Tax Credits is, in our opinion, equivalent to the ' second coming '. A bit of a play on words, but signifies the added benefit that a tax credit loan brings to the already good news inherent in a tax credit claim in these two solid Canadian programs. Let's dig in.


SR&ED

While there's been a few times over the last years when everyone, ourselves included, tried to figure out where SR ED was going it turns out that a lot of those changes simply solidified the program. While it's unclear whether the Billions of $ that the government provides via refundable tax credits will see a reduction in usage it’s absolutely clear on the other hand that the program is still in full force.

Yes, when it comes to R&D credit calcs some of the rates have dropped, and capital assets are no longer eligible - but truth be told the majority of claims have never really included the capital asset spend . Simply speaking the Scientific Research Experimental Development Program is still the largest program out there to allow Canadian business owners and financial mangers the ability to recoup their R&D spend.

Business owners can accelerate, or initiate that ' second coming ' by financing their SRED claim. While there seems little doubt that the government is committed to speeding up claim approvals ( they have level of service standards around claim receipt acknowledgement /processing and reviews ) this whole process in many cases can takes months and up to a year for the owner/manager to await the cheque for their claim.

Financing the claim simply accelerates the whole process - and super accelerations kicks in if you choose to finance next years claim - now! That's done by accrual financing, allowing you to start cash flowing next years spend!

FILM /ANIMATION/TELEVISION/MEDIA

The other industry that also generates Billions of dollars in refundable (and financeable!) claims is the entertainment industry in Canada. Although we say ' Canada’, approved joint ventures/co-ventures can also utilized tax credit programs and of course financing.

The tax credits that come with film/TV/ animation are a key part of any total financing package in the industry. They in many cases form the largest part of the total finance package. Ontario, BC and Quebec based productions garner the majority of the action, but almost all provinces participate. Using Ontario as example owners/producers can opt for any of the three major programs in place, OPSTC/OFTTC and OCASE.

FINANCING SR&ED and MEDIA TAX CREDITS

We comfortably can talk about bridge loan financing for both of these two programs because of key similarities. Those include:

1. Claims are either prepared by a specialty accountant or consultant in each area (SRED consultant / Film Tax Credit Accountant

2. Both Financings require a simple application with appropriate back up including a copy of the claim, any previous claim experience etc

3.Claims are typically financed at the 70% range of the total value of the combined Federal and Prov. claim

4. Financings are structured as Bridge loan with no payment being made during the duration of the loan

The main security in the financing is the claim itself

If you want to accelerate that ' Second Coming ' of a tax credit, i.e. the cash! seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your finance needs in this unique area of Canadian business finance.




Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

7 Park Avenue Financial = Canadian SR&ED & Film Tax Credit Financing Expertise




Stan Prokop









Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

Stan Prokop