Factoring Receivables This Way Makes Your Firm Untouchable When It Comes To Cash Flow And Account Receivable Finance

And Now For My Next Trick .. Turning Receivables Into Instant Cash

OVERVIEW – Information on factoring receivables in Canada . Using specialized offerings in Receivable Finance provides cash flow and working capital supremacy for your business . Account Receivable Finance tricks of the trade







Factoring receivables in Canada is a method in which your sales are turned into automatic cash. The good news is that no magician is required. And one or two little known tricks of the trade will allow you to maximize the benefits of A/R finance. Let's dig in.

By the way, we're the first to admit, and educate clients on the fact there is no replacement for ongoing proper management and due diligence on the receivables you generate from sales. We're never more amazed when even clients with great customers of high quality neglect the ongoing importance of turning that AR investment into cash for operations and growth

And yes, there are other additional ways to generate cash - i.e. working capital term loans, refinancing of assets , bridge loans , monetizing any SR&ED tax credits etc ; but on an ongoing basis your investment in A/R is the next closest asset to cash on the balance sheet - enough said .

Why then is factoring receivables so popular. Part of the lure of this method of Canadian business financing lies in the fact that it's a simple process. Once your initial agreement is in place (with the ‘right’ commercial lender) you have the ability to raise capital in any amount commensurate with your sales growth. At the right cost, and using what we feel is the best way to utilize factoring (we’re talking about CONFIDENTIAL ACCOUNT RECEIVABLE FINANCE) you have just turned your company into a cash flow machine.

What then are the advantages of Confidential AR Financing? The largest benefit should be self explanatory - it's in the ' MIND YOUR OWN BUSINESS ' category, allowing you to finance your cash flow needs without your suppliers, clients etc knowing your financial strategy. 99% of receivable factoring in Canada requires that your clients be notified in this whole process. That is not the optimal strategy sought by the Canadian business owner and financial manager.

Utilizing Confidential Receivable financing is your method of a sales line of credit really; comparable to a bank facility but at a high cost. The trade off is that you have all the capital you need when you can't access it through traditional sources
Here's a good example of how the cost of this method of business financing works.

Let's use a $ 10,000 invoice as an example. When you are in a position to invoice your customer for services rendered or product delivered you would pay approx 200.00$ for a 30 day ' loan ' on that balance. If your customer pays in 60 days (unfortunately many do!) the finance charge becomes $400.00. Remember though that cash in your bank is now used to generate more sales, grow profits , and you can even reduce your financing costs by using part or all of those funds to take discounts with your own suppliers - who now suspect you're ' cash rich '!


If you’re looking to maximize the benefits of the ‘ right ‘ A/R finance solution 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 working capital 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 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

Equipment Leasing Rates In Canada : Lease Costs And Your Next Interest Rate Just Got Better

The Complete Guide To Not Swearing About Equipment Lease Rates In Canada


OVERVIEW – Information on equipment leasing rates in Canada . Lease costs and the interest rate are dependent on a number of factors – Here’s what you need to know






Interest rate and equipment lease costs seem to be a major mystery to the Canadian business owner and financial manager. That doesn't have to be the case. That type of confusion has left some business people cursing about leasing cost!

Lease costs are dependent on a number of clear factors that seem to be not generally known when companies use asset leasing to acquire assets. If you want to take advantage of Canada's most popular method of acquiring business equipment you need to understand what's behind the pricing. Let's dig in

There are a number of factors in lease finance costs - as we've said too many owners/managers focus solely on the ' interest rate ' which is rarely the most important part of a lease, especially as the size of your assets grow in $ or numbers.

At the heart of any transaction is understanding the actual calculation of a lease rate. They are: term, financing rate, asset cost, monthly payment, end of term obligation. When you know any 4 of those you can pretty well calculate the missing piece of the puzzle. In fact most lease companies in Canada quote only monthly payment, not the interest rate. And to add to the confusion the way in which the rate is presented may not always be the same! (Next time you are quoted a lease rate ask the lessor if they have quoted you in ' advance' or ' arrears ‘)

We've advised in the past that the owner / manager has two choices in types of leases offered - the ' CAPITAL ' lease to own, or the ' OPERATING' lease to use . Because operating leases are in fact rentals many business owners may be surprised to know that the actual rate calculated may be negative - i.e. below 0! That's because the lessor is betting you will return the asset and they can resell or refinance it again.

The term of the lease will of course drastically affect the monthly payment - being approved for a longer term (amortization) will in fact lower the monthly payment - that longer term of course increases the finance profit for the leasing company.

Credit quality drives the majority of lease costs rates in Canada. Rates are very competitive if you are dealing with lessors that directly compete with each other. Financing approval is often as important as the ‘rate ' to many clients we meet and work with.

We mentioned that interest rates aren't the be all and end all in asset financing. That's because lease documentation, financial statement impact and tax impacts are a key part of a true lease financing deal.

Understanding the terms and conditions in your equipment lease transaction is also critical - end of term obligations, maintenance issues, and other ' nuances ' affect your ultimate cost to finance.

If there is one way to step delicately through the lease costs minefield in Canada its to seek the services of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assure you that your next lease finance transaction will just get better.



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/equipment-leasing-rates-lease-cost-interest-rate.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

Startup Loans : Don’t Read This If You Don’t Want To Know How The Canada Government Business Loan Works

Confused About Govt Business Loans ? You Shouldn’t Be

OVERVIEW – Information on startup loans in Canada. Start Up financing via the government business loan provides key financing to make your venture successful

Startup loans in Canada bring one of the largest challenges any entrepreneur/business person will face. That challenge in many cases can be complete eliminated via the Government Business Loan - often called the ' SBL ‘. Yet confusion many times still reigns supreme when it comes to this program, how it works, how to access it, and... Oh yes, how to be successful.

As we have hinted, SBL loans allow you to get within reach of the initial financing you need fro any business start up. A startup can take many forms - starting from scratch, buying or acquiring a franchise, even buying an existing business and ' starting over ' (sometimes called a ' restart '). In other cases other financing can already exist that you have arranged and the govt business loan simply supplements that.

Many of the challenges you face on financing are preceded by other issues you have already faced prior to financing ; for example selecting a business location, negotiating a premises lease, doing your due diligence and research on your transaction , etc.

Putting the right finance solution in place for your venture means two things, arranging initial financing and ensuring and allowing you will have some working capital and cash flow for your ongoing operations and growth .

One of the main misconceptions of govt business loans in Canada is that they in fact can provide working capital and cash flow. They can't!! The program is specifically formulated to address only 3 asset categories -

Equipment

Leaseholds

Real estate

In the case of purchasing an existing business or franchise an appraisal of existing assets and leaseholds provides the basis of collateral for your new SBL startup loan.

In business you don't necessarily get all the chances you need to be successful, so government loans provide a solid base on which to start, operate and grow your company or franchise.

We've been somewhat amused for years because clients always want to discuss or focus on ' interest rate ' on any new financing they are seeking for start ups. While a rate must be competitive and allow you to of course pay the loan the reality is that start up financing outside the govt loans is difficult , if not outright possible to achieve . Yet the SBL program provides a very competitive rate (3% over prime) and even allows you to repay without penalty. Even traditional financing won't allow you to do that.

SBL loans work fundamentally because they are government guaranteed. Canadian chartered banks which offer and specialize in the loan like the program because the majority of the loan is guaranteed by the Canadian government. Almost 8000 businesses annually take advantage of the program.

If you are looking to turn dreams into reality for your Start up seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with this and other finance solutions.





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 GOVERNMENT BUSINESS LOANS AND STARTUP 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

ABL Asset Based Facilities Reinvent The Credit Line : Get In Charge Of Your Business Credit Line

What Are The Real Benefits Of A Non Bank Business Line Of Credit ?



OVERVIEW – Information on the business credit line option in Canada. ABL asset based facilities offer key benefits not typically available in revolving bank lines.. here’s why and how

Business credit line needs can often fully be satisfied through an ' ABL ' asset based credit facilities. They are ' non traditional ' in nature only because the sole ' traditional ' solutions is Canadian chartered bank facilities. Yet they deliver on everything you need and more often than not... more. Let's dig n.

When the Canadian business owner / financial manager thinks of revolving credit facilities they rarely think ' outside the box ' so they are quite surprised to find out from us that all business assets can be combined into one total borrowing facility that revolves based on day to day business needs, seasonality, ' bulges ' in sales growth and cash flow requirements. Hence the name ' Asset Based Line of Credit '.

They two issues that immediately need to be table when it comes to focusing on a business credit requirement are ' facility size ' and the cost. We can clarify and explain the cost issue very quickly - ABL costs more 99% of the time; but the benefit is unlimited access to credit needs based on your sales. It's common knowledge that business borrowing costs today at the bank level are the lowest in recent history.

But ' cost' should never be the only factor when it comes to business borrowing - so when ABL offers all the capital you need to run /grow your company we're suggesting you listen.

Oh, and by the way, have we forgotten to mention that thousands of companies actually cannot qualify for either any, or all of the financing they need at certain critical times. That alone is a good reason to entertain Asset based lending facilities.

We are not presenting the ABL solution as the 'be all and end all ' method to finance your credit line needs, but it clearly is a logical alternative to traditional borrowing. The spectrum of users of ' ABL ' is very large, from start ups to the largest corporations in the world. Naturally it's those larger corporations that represent the small percentage of applicants that can actually achieve bank or better pricing.

To qualify for ABL your firm must be able to produce regular financials and report on the current assets in your business in a regular manner - typically monthly, on occasion even weekly. That typically is not as bad as you think - it’s just about providing regular reports on aged payables, receivables, and inventory lists. We suggest to clients that if you can’t provide those reports you're in bigger trouble than you think... if not today... tomorrow.

ABL business credit lines provide 90% financing on A/R, 30-70% finance of inventories, and even combines the value of your unencumbered fixed assets. At the end of the day that simply means anywhere from 50-100% more borrowing power on an ongoing basis. Remember also that this facility, unlike the typical bank line grows as your sales grow, and is not fixed, which typically is associated with a bank credit line.

If you're looking to feel ' in charge ' of your working capital and cash flow needs and want to explore the real benefits of ABL asset based credit lines 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 reinvention of credit solutions.





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 ABL ASSET BASED CREDIT LINE 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

Federal Government Loans In Canada : Different Rules : Different Objectives : Great Results From SBL Government Lenders

You Might Not Believe These 4 Uses For Government Small Business Loans In Canada

OVERVIEW – Information on federal government loans in Canada . SBL government lenders can help you achieve various business financing and acquisition goals – here’s how

Federal government loans in Canada are truly an ' all purpose ‘financing solution for various types of finance needs. The ' SBL ' (small business loan ') from government lenders have a number of great uses - we're going to cover off 4 of them. Let's dig in.

Different objectives in Canadian business financing more often than not requires different solutions - so that typically means different rules around what works, what doesnt and what's required. But uniquely to the SBL loan it has the ability to ' fix ' at least 4 different financing needs.

Let's recap those 4 uses of the program - They are:

Purchase an existing business

Start a business

Buy an existing or new franchise

Finance leasehold improvements to your premises


We've spoken of ' government lenders ' in the program. In reality there is just one government lender and that’s our Canadian banks. They are essentially the ‘delivery vehicle ' for your SBL financing needs. There's a little irony here in that the same loan you COULD NOT get from a Canadian chartered bank is suddenly ... AVAILABLE!

The simple reason for that is that the government, via INDUSTRY CANADA essentially guarantees the majority of the loan to our Canadian banks. In recent years that has meant that every type of business in Canada, in almost all industries has received billions of dollars of loans annually - recent stats are that about 8000 companies apply and are approved under the program.

At the end of the day it's simply an ' incentive ' for our banks to lend to the SME sector. One technical point is that if your firm has either over 5 Million dollars of actual or projected (in case of a start up) sales revenue you are disqualified for the program. Luckily that 5 Million $ threshold still covers tens of thousands of firms that can still access the loan. In fact govt stats tell us it’s these firms that are powering a huge part of the economy.

If you're serious about getting approved for the right amount and in a timely manner it's necessary to give the banker and the program what they want. The good news is that list is not that large.

Essential elements of a solid loan package include:

Business plan / cash flow
Owner bio
List of assets /items to be financed/acquired
Personal financial info on the owner (reasonable personal credit is a must)
A Premises lease identifying your business location


If you feel you're unable to access the right banker or put together a proper package consider seeking out and speaking to a trusted, credible and experienced Canadian business FinancingAdvisor with a track record of success who can fast track you to federal government loans success.



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 SBL GOVERNMENT 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

A Franchise Loan Need : No Miracle Required For Loans For Franchises

Let Franchise Financing Be Your Success Story In Entrepreneurship

OVERVIEW – Information on loans for franchises in Canada . What are the key elements of franchise loan success for the new or existing franchisee








Loans for franchises in Canada have the ability to make entrepreneurship a true success story in Canadian business - being unsuccessful brings the opposite. Let's dig in.

A franchise loan in Canada, achieved properly and under the right circumstances gives the franchisee the ability to acquire and grow a small business into a larger successful business. Unfortunately there is no ' instruction manual ' on getting franchise financing done right , so we'll share some sound strategies and info on ensuring you're a part of the Canadian franchise success story .

While there are always different factors why a franchise might fail - i.e. lack of management, experience, a poor choice for franchisor or location , etc its a pretty sure thing that financing done properly is also at the heart of franchise success.

Not having the right amount funding will always be a setback for the new franchisee - most will agree it sets up a recipe for guaranteed failure. That undercapitalization comes from a couple of key mistakes made by the new franchisee:

Inability to truly understand their operating costs

Poor start up estimates

No back up plan if additional equity is required

Lack of working capital after the franchise is acquired

Poor planning for future investments required in assets, working capital, renovations, etc

There is no easy money when it comes to franchise loans in Canada. While the U.S. market has a substantial number of other financing options the Canadian franchisee must choose from a small handful of finance options - therefore re-enforcing the need to do things right.

Those franchise options? They include specialty franchise funding from the one or two players in Canada offering this financing, the Govt Small Business Loan , and a combination of commercial finance solutions via equipment financing, leasehold finance, merchant cash flow advances,

Whether it’s a franchise loan or any other type of business financing leverage, i.e. the right amount of debt is key to business success. Typical satisfactory debt to equity ratios for franchise financing are in the 2:1 OR 3:1 range, meaning simply that the owner should have at least a half or a third of the total capital committed personally .

Those funds typically come from savings, but we always encourage franchisees to never over commit personal capital and not to collapse registered investments or take on collateral mortgages on personal property. Bottom line - don't mix your personal and business finances in the wrong manner.

If you're looking to be a ' SUCCESS STORY ' in Canadian franchise financing when it comes to a franchise loan seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help that ' miracle needed ' process along .




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 EXPERTISE IN LOANS FOR FRANCHISES











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 Businesses In Canada : Recognizing Early Warning Signs For A Business Plan Proposal Requirement

What Types Of Canadian Business Financing Require A Business Plan

OVERVIEW – Information on how Canadian business owners can determine the need for a proper business plan proposal for finance requirements . Financing businesses in Canada ( sometimes ) requires a proper busines splan proposal

Financing businesses in Canada may, or may not, require a business plan proposal. When do business plans make or break your firms financing objectives, and are they required at all? What are the risks of not having a plan when you need one? Let's dig in.

Business owners and financial managers typically associate business plans with funding requests. Done properly the document reflects the type and amount of funding you need (for example - capital expenditures / buying a business, etc) potential future financing needs, and what banks and other lenders (commercial finance companies, etc) call the ' use of proceeds'.

Additionally a proper document such as that will include how the loan or financing needs fit into your businesses overall working capital and cash flow needs. It sometimes is forgotten that the lender is fixated on one thing - getting repaid!

While many plans we see focus on the past and present it's always critical to integrate your financing into the future - re-iterating how debt will be repaid, etc. Time periods for repayment are important also, as you want to be able to demonstrate things like timing of cash flows, cyclicality in your business, temporary ' bulges ' of sales and cash flow.

A sense of urgency is not the best theme to have in your business plans. That's when the ability to properly anticipate future financing needs helps your proposal stand our as more legitimate. Financing under pressure almost never works - dire straits financing is certainly achievable - but not recommended as a strategy!

Start up business financing almost always requires a proper business plan. Here capital and funding is typically more costly as it's associated with more ' risk ' - so your ability to have a clear sound business plan reflecting realistic potential success is desired. Certain industries are occasionally out of favor - if that's the case even more care is needed.

Here's a quick recap of some of the main types of Canadian business finance solutions - highlighting a more clear need for when you might best consider the need for a business plan

A/R Financing - not required

Inventory Financing - not required

Govt SBL Loans - required/recommended

Term loans - Recommended

Acquisition Financing - Required/recommended

SR&ED & Film Tax Credit Financing - not required

Franchise Financing - Required and recommended

Working capital term loans - Recommended


The cost and time in preparing a business plan that reflects your funding needs is more reasonable than most owners imagine. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can ensure your plan is cost effective and works.

The business owner/ financial manager should always be on the lookout for those 'warning signs' that a good business plan proposal is required - one that reflects that your company merits and deserves the financing it needs to start /operate/grow or acquire a business.



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 PLAN 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