Franchise Loans Canada : Let The Sun Rise On Franchising Finance Success

Are You ‘ All In ‘ When It Comes To Franchising Finance in Canada You Don’t Have To Be !

OVERVIEW – Information on franchise loans in Canada . Franchising finance properly executed doesn’t have to be the financial personal commitment that some franchisees think it needs to be . Here is why


Franchising finance makes many would be ' entrepreneurs ' feel like they must be ' ALL IN ' when it comes to franchise loans in Canada. ‘ALL IN ' of course connotation major personal investments in their franchises. Does it have to be that way? Not necessarily! So let's dig in.

When it comes to financing a franchise in the current ' hot ' Canadian franchise market the clients we talk to seem to think that comes with significant personal investments, overdrafts on personal lines of credit, and complicated financing packages that inter mingle with their personal finances. Again, that’s what they think, but it’s not necessarily the case.

We must emphatically say that the would be franchisee would be entrepreneur must in fact contribute some capital to the business. It goes without saying there no ' free ride ' on ' OPM ' - i.e. 100% other people’s money.

In fact some of the amounts required to properly finance this type of business in fact are normally not financeable - those include the actual franchise fees themselves, brokerage or consultant fees, etc. These types of charges typically come out of the owner’s capital investment.

As a broad rule you should be prepared, depending on the overall situation, to put down anywhere from 10-50% of the total amount of financing required to kick start your venture.

Funding the balance of franchise loans in Canada is typically dependant on the size of the purchase, the quality of cash flow forecasts, and lenders interpretation of the viability of your franchisor as a whole. Not all franchisees might be aware that many franchisors are willing to let a franchise fail, knowing they can re-sell it to another potential viable franchisee. Here issues such as ' location/ location/location' and mgmt competence and experience are important.

Never forget that at the end of the day the actual repayment of the franchising loan, which typically is amortized over 5-7 years will in fact come from ongoing cash flows and profits. Since most franchisees tend to be 100% cash businesses that is important.

In Canada franchises are financed via a small handful of specialty finance lenders, the Govt SBL loan, and a combo of various other financing solutions that might inlcude equipment financing, merchant advances, working capital term loans, etc.

So our advice? You don't have to be ' all in ' thinking you have to pledge your personal assets in franchising finance. More important is the ability to seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your funding 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 FRANCHISING FINANCE 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

Lease Back Financing Tips : Sale And Leaseback Transactions Can Be A Winning Strategy

Sale Leaseback Financing Makes Seemingly Impossible .. Possible!

OVERVIEW – Information on the ‘ leaseback ‘. Sale and leaseback transactions, done properly, can be a solid cash flow tool . Here’s some key considerations







Sale and leaseback transactions are sometimes a truly perfect solution cash flow needs. In some ways it’s a ' perfect storm' of financing - your business gets to keep the asset in question (typically equipment or real estate) while at the same time employing its use and possession.

By the way, that could include your corporate jet - although we don't run into
a lot of those these days.


What are the fundamental reasons for choosing the lease back? It usually comes down to:

A need for access to capital that otherwise might not be available, or available the rate and structure the business owner/manager desires

It’s sometimes a more efficient and quicker process than starting the journey into looking for new debt solutions or having to consider ownership dilution from new equity sources. Alternately the owner/owners of the business are now required to put in additional personal funds

The ongoing need and use of the asset to operate and grow the business - otherwise the asset should probably simply be sold!

In certain cases, as we mentioned, rates and costs of financing might be more attractive under the sale/leaseback

Because of the nature of how the transaction is recorded the lease back, properly structured can enhance the overall ROI - ' return on investment’

As we noted any asset of the business can theoretically be sold and leased back. A typical solution is business real estate, i.e. the business operating premises. Even Canadian banks in recent years have shed their huge office towers under this effective strategy. - And they of course still inhabit the buildings.

The other asset category is business equipment, which, while depreciating still has valuable use to the business. That raises the point that it’s important to consider the financial and tax consequences of the leaseback - for example if the funds received are greater than the present value of the equipment a profit on the transaction might have to be reported.

When you enter into this financing strategy your choices are the same as with any other lease financing transaction. Simply speaking you can structure your deal as a capital ' lease to own' or an operating ' lease to use '. The operating lease might be perfect for things such as a technology transaction for computers and telecom equipt. for example.

And that corporate jet

we were talking about? All of a sudden is a perfect candidate for an operating lease!

We caution clients that it's always important at the start of considering such a transaction it’s important to fully understand the value of the equipment or asset being re financed. That residual value must be well understood in the context of your company's needs for the asset and the financing structure required.

Seek out a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in putting together a winning strategy on refinancing business assets. The impossible just became possible.




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 AND LEASEBACK 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

Business Asset Finance Via Confidential Factoring Services Finally Explained

Looking for a Cash Flow Rescue Solution - Confidential A/R Finance Via Non Notification might just be it


OVERVIEW – Information on the benefits of confidential factoring services . Business asset finance via an invoice discounting program is a happy medium between bank A/R financing and alternative finance solutions




Business asset finance comes in a variety of 'flavors '. One of those is Confidential Factoring Services, which is the monetizing of your sales and receivables into immediate cash flow. Let's dig in.

While any form of Canadian business financing is meant to allow the owner/.manager to grow the business the harsh reality sometimes is that it also ' rescue ' the company when financial challenges and pressures have made traditional forms of financing unavailable . Think ' the bank'.

And by adding the word ' confidential '

into this method of financing it’s as close to traditional financing as one can get.

In the business cycle of any commercial business, whether that is a product or service sales generate receivables which generate cash. Whether your firm is start up, early revenue, or fast growth its all about your ability to ' release' working capital out of sales revenue.

Canadian chartered banks do that for you by setting up business lines of credit. The receivables (and sometimes inventory) act as the 'collateral' for the facility. Confidential factoring services provide the same result; they just do it in a different manner.

That difference is the essence of receivable finance/factoring in general, as the paperwork around the facility ' monetizes' your A/R. The paperwork in effect has you ' selling' your sales for cash as they are generated, and the use of confidential factoring allows this to be done privately between you and the finance firm.

That level of confidentiality is important , because we benchmark that against ' old school'

factoring ( still hugely popular ) which makes the whole process fairly public between your clients, yourself etc. In our experience business owners and financial managers in the SME (small to medium enterprise) sector like to keep how they finance their business to themselves.

Let's make sure we all understand the process of CONFIDENTIAL RECEIVABLE FINANCING. As you generate sales you receive 90% of your sales invoices as immediate cash to your business bank account. In our case immediate pretty well means ' same day ‘. Bye bye receivables - hello cash on hand!

So what are the benefits then?

Hopefully they are pretty obvious. They include your ability to run and grow your business. As long as you are generating revenue you will always have the respective amount of cash available.

For the majority of many of our clients we see them now being able to take on larger contracts and sales orders. No more worrying that your are reaching your ' borrowing limit ‘, as with pre set bank credit lines.

Some clients also use this cash to pay down other debt they have taken on, although it’s important to ensure you are matching short term financing solutions with short term debt obligations.

Let's summarize the process again quickly -

1. Sell your products and services!
2. Provide your invoices to your finance partner
3. Receive immediate cash (10% is held back and paid to you as soon as your client pays - it’s a ' buffer ')

Note - the financing costs of Confidential factoring are taken out of that 10% holdback and as an example would be in the 150 -200$ range on a 10,000$ invoice.

If you're looking for a rescue plan on cash flow challenges seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can ensure that this unique method of financing is carefully explained re costs, benefits, and operations.



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 CONFIDENTIAL RECEIVABLE 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

Tax Loans For SRED Credits In Canada : Finding Your Way In SR ED Financing

What Seems To Be The Problem Here? SR&ED Tax Credit Financing Explained – Finally !



OVERVIEW – Information on R and D tax credits in Canada . SRED Credits can be financed. Here’s how SR ED financing via tax loans works and why tax credit financing should be considered if you are filing these claims







Tax loans in Canada for SRED Credits - Canada's R &D refundable credit system seems to pose challenges for some clients that are looking to monetize, via SR ED financing, their claims. Does there have to be a problem? We don't think so, let’s dig in.


SR&ED credits are available, of course, via the governments ' Scientific Research and Experimental Development Tax Credit ' program. Although federal budgets in recent years have changed the program significantly from a view point of streamlining the process, certain portions of the allowable refund were also cut back, i.e. capital expenditures relating to the actual R&D.

In Canada the majority of tax credit claims are prepared by independent consultants. These claims are filed of course in conjunction with your year end tax return. Retaining a good preparer for your claim is one part of the financing process of a claim. In the past couple years a lot of focus was placed on the way consultants bill and prepare claims - the majority of which are on a ' contingency' basis which in hindsight probably caused some bad behavior by a small few.

We encourage all clients to both consider whether they are eligible for the SR&ED credit, as well as focusing on filing the claim promptly as there are some deadlines in place under the program


Refundable credits return billions of dollars to Canadian corporations each year. Your ability to cash flow or monetize your claim makes the program complete in some way. Your company is in effect ' fast tracking ' the return of cash flow to your company by filing and financing your claim.

How then are the claims financed? It certainly doesn't have to be problematic if you have some expertise backing the process. A simple business application starts the whole process - typical info needed here are a copy of your claim, info on who prepared it, as well as your business financials.

We note here that many firms that complete claims range from start ups to firms that are still in early stages of revenue. So it's important to understand that the key collateral under a SR ED financing is fact just the claim itself. In effect you've created a (government) account receivable and are simply financing /monetizing that specific A/R.

The newest trend in tax loans for SRED is the ability of your business to in effect pre-finance your claim - you are reimbursed for funds you are spending during your spend . That fast tracks the return of R&D capital even faster.

If you're looking to avoid any ' problems ' associated with financing SRED CREDITS seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
The probable result - Problem gone!



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 TAX CREDIT LOAN 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

Asset Based Lending In Canada : 7 Park Avenue Financial

7 Park Avenue Financial - In the News

The Editorial team at CANADIAN EQUIPMENT FINANCE magazine recently asked us to comment on ASSET BASED LENDING in Canada . Here's the article below from this excellent Industry/business magazine - CLICK HERE FOR LINK TO DIGITAL VERSION OF THE APRIL EDITION






The Growing Popularity of Asset Based Lending

By Stan Prokop, CEO, 7 Park Avenue Financial

From a general overview, asset backed lending (ABL) is both popular and
readily available across almost all industry sectors within the Canadian
marketplace. With its uptick in popularity over the last several years, ABL
has not only seen an increase in traditional asset backed lending, but most
Canadian chartered banks have embraced ABL finance in some form as well -
either through direct ownership of ABL entities or through partnerships.

The Current Trends

Asset backed lending is currently seeing some of the lowest borrowing rates
in years. The result of these low rates has been the placing of tremendous
pricing pressure on those deals that have higher credit quality.

When looking at sector trends, within retail there are many larger retailers
taking significant advantage of ABL inventory credit lines to finance
growth, expansion, and basic refinancing needs. Certainly ABL lenders that
place significant emphasis on the liquidation value of assets have made
major inroads on transactions. The healthcare sector is also a fast-growth
sector that is benefitting from asset backed lending.

Historically technology-based firms have not utilized ABL to any major
extent - typically because their assets are heavily focused on intellectual
property with lower emphasis on the staples of ABL borrowing such as
receivables and inventory. However, with the competitive nature within the
current lending environment, many asset based lenders are compelled to
consider alternate asset categories, such as purchase orders, contracts,
patents, and tax credits, as financeable assets.

Along with the widening of alternate asset categories, maximum deal sizes
continue to be almost unlimited in nature. However, many firms are lowering
the bar on minimum transaction size. While Tier 2 lenders will consider
$250,000 deals, Tier 1 lenders are more apt to consider transaction sizes
below $5 million. In the past this has not typically been the case. On
larger transactions it's certainly not unusual to see inter-creditor
agreements between ABL lenders and other secured lenders.

Gains in Market Share

In recent years, 'subsets' of ABL have made huge gains in market share.
These include such sectors as factoring firms, working capital lenders,
purchase order/supply chain financiers, floor plan lenders, and merchant
cash advance firms. While considered a part of ABL lending, these firms are
generally smaller, more nimble, and niche oriented.
As well, although the venture capital market in Canada is currently
considered to be emerging from a very difficult period, many private equity
lenders are now considered real competition to true ABL lenders and are
providing both equity and liquidity to transactions.

Knowledge and Awareness

ABL is still significantly misunderstood and oft miscategorized. Many CFOs
and business owners still continue to view Canadian chartered banks as the
only primary financing solution. However, increasingly, business owners,
managers, and boards now recognize that asset backed lending solutions are
often the solution to refinancing troubled firms that face insurmountable
challenges from the traditional lending environment. And as a result, the
role of the intermediary is taking on ever-increasing importance as business
owners recognize that they don't have the time and expertise to source ABL
financing solutions without the assistance of qualified, trusted, and
experienced advisors.

Despite some lack of awareness and knowledge among CFOs and business owners,
asset backed lending is nevertheless coming into its own in Canada. The
recent IPO from Callidus Capital suggests this to be the case - certainly
from a public acceptance point of view - and the oversubscription of that
public offering seems to suggest true interest and validation of this aspect
of Canadian business financing.

Stan Prokop of 7 Park Avenue Financial provides business financing for
Canadian firms. He specializes in working capital, cash flow, asset based
financing, equipment leasing, franchise finance, and Canadian tax credit
finance.

END OF ARTICLE




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 :






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 '

Purchase Order Financing : The Hidden Genius Of P O Finance Companies

Finance Solution # 68 : P O / Contract Financing

OVERVIEW – Information on purchase order financing in Canada. The ingenius role played by P O finance companies in growing sales revenues when traditional financing can’t be achieved

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



Purchase order financing in Canada . We've labeled it finance solution # 68. While there probably aren't 67 other different unique financing solutions ahead of it , ( although there is more than you think ) it's safe to say it's probably the least well known, or thought of finance solution in CANADIAN BUSINESS FINANCING .

Let's examine how P O FINANCE COMPANIES market and offer the... dare we say it the ' genius '

of purchase order finance. Let's dig in.

Many businesses in Canada lose out or are forced to step back when it comes to taking on contracts or orders when they realize they don't have the financial resources to successfully fulfill client needs. It might be a single order or a large ongoing contract.

Enter the P O financier. But why then is this a solid solution for growing sales /revenue in a big manner? The answers are perhaps not well known, but simple:

Purchase order financing is not debt

Suppliers/vendors are very comfortable with the concept as they are assured payment

Properly constructed no transaction is really too large when it comes to opportunities that involve legitimate vendors and clients

The added expertise of the Purchase order financier often adds value to the overall transaction

Whether a firm is a start up of established qualifications are still the same to benefit from this unique financing - a verifiable non cancellable order, a legitimate client, and your ability to demonstrate a solid profit margins on the transaction. (P O financing is in fact ' genius ' financing - but its one of the most expensive forms of business finance solutions)


So how exactly does PO / Contract finance work?

What are some of the key mechanics? It starts with understanding that sales revenues are generated from inventory and receivables. Your suppliers for orders or contracts are in effect guaranteed payment for products shipped to your firm under the P O finance facility. The alternative for paying suppliers in advance is to have established bank credit lines in place, and for a variety of reasons that often is impossible for many companies.

So the essence of offerings from P O finance companies is that your firm has the ability to fulfill an order, your client must have the ability to pay for it, and your vendor must be an established firm as independently verified by the finance company.

If your firm wants to utilize or better understand finance solution # 68 - Purchase Order Finance then consider seeking out a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you in fulfilling sales and contracts traditionally outside of your firms ability to deliver . It's ' genius'.


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 PURCHASE ORDER FINANCING EXPERTISE










Stan Prokop

Financing Options : How To Survive and Thrive With These Cash Flow Finance Solutions

At the end of the road in Business Loan Solutions ? Avoid Doomsday with these solid choices

OVERVIEW – Information on financing options for medium and small sized businesses in Canada. Which of these cash flow finance solutions works for you











Financing options in Canada - they are all about the ability of your business to thrive, and yes survive.

So whether its cash flow finance solutions or taking on the right amount of needed debt, we're examining the ability of your company to achieve business loan solutions and avoid the ' doomsday' that unfortunately comes with being unable to finance the company. So let's dig in.

The right amount and type of financing is often a solid indicator of general business health. Depending on which ' top expert' you're listening to these days you won’t find any naysayers when it comes to acknowledging the importance of day to day cash flow.

We're quite sure that a good amount of business owners in the SME Commercial sector don't really how much time large corporations, equity investors, and even VC's place on analyzing cash flow in businesses they are looking at.

The ability of your company to access financing options involves how you manage the ins and out's of cash. When it comes to financing things definitely don't happen automatically in business.

Several things need to happen:

Your business has to be able to track financial performance - if you can't show you have a handle on collections, granting credit, identifying cash flow gaps, etc you are in fact on the road to doomsday.

Managing asset turnover and growth is key

The business owner/ financial manager must be able to distinguish between short term needs and long term needs

What are key short term and long term basic financing options - they include, but are not limited to:

SHORT TERM -



Bank lines of business credit
A/R Finance/Confidential Receivable Financing
Inventory finance
SR&ED claim financing (if applicable)
Asset based ABL lines of credit
Royalty financing
P O / Contract financing



LONG TERM



Working capital term loans
Equipment leasing
Cash flow loans

Depending on how well you manage your business your firm will qualify for either traditional bank financing or the alternative, which is in fact ' alternative finance"!

When you approach the accessing of finance key questions the owner/manager needs to address are:

Overall business credit quality - as demonstrated by historical, present, and future cash flow

The amount and type of financing you need (While much business can in act access some form of bank financing we often meet with clients that just can’t get enough!

How does your profit and sales growth enable you to expand business opportunities?


Although traditional financing options are the most flexible and inexpensive, alternative solutions can often provide (at higher cost) all the financing you need to grow. Alternative lenders love assets and high growth!

Avoid that doomsday feeling. Consider seeking out a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in your cash flow financing solutions. There are, (almost always) financing options for every business and every industry.




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 :

http://www.7parkavenuefinancial.com/financing-options-cash-flow-finance-solutions.html





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