Government Guaranteed Loans : Is A CSBF Your Potential Business Loan Lifesaver

We're Cutting All The Red Tape In The Gov't Guaranteed Business Loan

OVERVIEW – Information on government guaranteed loans in Canada . The ‘ CSBF ‘ business loan satisfies the capital needs of thousands of business people and entrepreneurs every year

The Government guaranteed business loan in Canada is quite often the financing that entrepreneurs in start ups and ' small business ' require to access capital for financial assistance. In many cases it's the ' lifesaver ' that the business owner is looking for. Welcome to CSBF (Canadian Small Business Financing) loans 101. Let's dig in.

Most business people in Canada, rightly or wrongly, associate anything to do with ' government' as mired in red tape/bureaucracy. That really isn’t the case with the Govt SBL (Small Business Loan) program. It certainly can be though if you're poorly armed with key critical info on the program itself, how to access it, and, most importantly, how to get approved!

By the way, do Not apply if you're a large business - and the program clearly defines that as any business with over 5 Million dollars in revenue. The actual size of the loan portfolio by the way is in fact ' large ', with billions being financed every year for thousands of applicants.

There's not mystery as to the popularity of the program, as top experts tell us everyday that it's ' Small ' business that generates employment and taxes in a big way

Why then do business people/entrepreneurs bother to investigate this type of loan? While many focus a lot of time and effort on raising equity capital from friends and family, angel investors, VC's, etc they are more often than not disappointed by their efforts in this area.

What is the appeal of the SBL loan? First of all its, longer repayment terms, as typical terms are 5-7 years. Secondly, approval is much easier as compared to traditional bank financing or other offerings from Commercial Finance companies that lend to the SME sector

It’s necessary to understand the type of loan you are applying for. For a starter, much a surprise to many is that there is no loan from the government. Industry Canada sponsors and administers the program and it simply guarantees the loans to Canadian chartered banks that provide these loans Banks therefore are more open to providing loans that in other cases they would not make!

Key to being successful is knowing what the program DOES NOT finance - and that’s working capital and inventory. It also does not refinance current debt. What it does fund is equipment, leasehold improvements and real estate.

If you're looking for a prompt answer , instead of ' maybe yes', or ' maybe no' when it comes to government backed loans in Canada seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you cut red tape and make govt loans your lifesaver for capital.


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 GOV’T GUARANTEED 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

Bank Lending Plus Lesser Known Business Finance Alternatives Deliver Financing Solutions

Looking For More In Bank Financing

& Alternative Loan Solutions ?

OVERVIEW – Information on business finance alternatives and bank lending in Canadian business financing

Bank lending needs often come at a time when Canadian business owners and financial managers are not necessarily 100% in control of all the forces that might affect their business - external and otherwise. A business finance alternative might also be a solution for almost any business in any industry. Let's dig in.

Those same financing needs, as we've explained in the past come in different timelines, short, intermediate and long term. One of those external sources that many business owners forget is their vendors and suppliers.

Here collateral is not required, trade credit is MUCH easier to obtain and in many cases discounts for prompt payment may be offered and taken. Naturally stretching payables is a dangerous game, as you need suppliers and vendors on board when times are challenging - so while a/p mgmt is a key part of ' cash flow ' it's one that must be handled properly.

Bank lending comes in various forms - not all of which are understood by owners/financial mgrs in the SME commercial area. While it's true that Canadian banks do in fact offer ' unsecured' loans these are totally focused on... you guessed it... provable cash flow.

Typically these loans might be at a higher rate are and more long term in nature. The bottom line - ensure you balance sheet, profits, and historical and projected cash flows are up to mustard!

Bank lines of credit provide revolving facilities up to a maximum amount based on current asset holdings such as receivables and inventory. Typically these bank credit lines come with restrictions known as covenants and ratio maintenance - it's not just about the assets.

Commercial finance companies provide alternatives to the ' traditional ' bank loan sector. These tend to be asset based, easier to obtain, but come with higher borrowing costs.

Typical alternative financing solutions include:

A/R Financing - receivables represent your next closest asset class to cash and solutions such as Confidential Receivable Financing

Inventory Finance - These loans are typically for larger retailers and mfrs -

ABL Business Credit Lines - These are non bank business credit lines that combine the best of receivables and inventory financing into one revolving facility

Equipment Leasing / Sale Leaseback strategies

Tax Credit Monetization (SR&ED refundable tax credits, film tax credits)

Bridge Loans

Working Capital Term Loans

Government Guaranteed Small Business Loans

Purchase Order Financing

If you're not sure what financing solutions works best for your firm today and in the future that consideration can more easily be addressed by seeking the service and expertise of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success with a track record of 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 BANK LENDING AND BUSINESS FINANCING SOLUTIONS




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



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 Tax Credit Financing Loan In Canada : SRED Finance Allows You To Do More With Less With Your SR ED Claim

How To Get Ahead Via SR&ED Loans

OVERVIEW – Information on the benefits of a SR&ED tax credit financing loan in Canada. SRED Finance loans are a way to monetize your SR ED credits , allowing you to cash flow refundable tax credits for working capital needs today

A SR&ED tax credit financing loan for your refundable SR&ED credits satisfies one basic need - recovering your r&d spending ! Let's dig in .


There's really only one reason to consider SRED Finance loans - accessing cash flow today, eliminating the wait around your SR ED filing. It's really as simple as that.

There are a number of ways to look at why Canada has chosen an ' incentive ' type program to encourage Canadian business owners to participate in scientific research. Canada Revenue Agency administers the program, and pretty well all top experts agree that it’s a tremendous way to receive a cash refund for qualified spending.

The majority of the SR&ED claims in Canada are prepared by external consultants who have a lot of expertise in this area. When you finance your claim you should know that the overall reputation and quality of your claim has a lot to do with that consultant. And given that the main collateral for a tax credit loan is in fact the claim itself it goes without saying that its one key factor in approving your claim for financing. Naturally if you have filed before with the same consultant things move along even more quickly.

Although the program has been around for over 30+ years in recent times significant changes have been made to the program. At the end of the day these changes could probably be summarized as follows -

Easier filing via today’s technology changes

Reduction in some of the previously allowed expenses

Pre-claim consultation and simplified online filing

A focus and disclosure requirement on who prepares your claim and for how much


Why and how does your firm finance a SR ED credit? If you're in the majority who believes ' cash is king ‘a SRED FINANCE LOAN is simply the immediate monetization of your claim. While some may view the challenge of preparing and filing a claim as work enough, just imagine the issue around waiting for your claim to be reviewed, audited, and approved.

That timeline could be weeks but quite often months. Don't forget also that the cash you receive on a SR&ED loan can be used for any general company purpose. While many firms plough back the funds into more R&D funds are also used for working capital/operating expenses, growth, etc.

Tax credit loans are financing in a very creative manner. You receive 70% of the total claim as a bridge loan. No payments are made for the duration of the loan and when your claim is approved and funded by the govt you immediately receive the balance of the claim less financing costs.

The application process? It couldn’t be more simple and basic. A typical loan package would include your financials, a copy of your SR&ED filing, and details on who prepared your claim and if you have had previous claims that were approved, the latter being important, nice to have, but not necessary.

Preparing a claim but haven’t filed yet. Your claim can also be financed on a pre-filing basis.

Looking to ' get ahead ' in R&D spending. Consider SRED finance loans as a quick way to monetize the tax credit asset. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of 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 SR&ED 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



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Sources Of Finance For Businesses In Canada : Are You In Reverse Gear In Financing Your Business

Do You Really Know How To Finance Your Business?


OVERVIEW – Information on financing a business in Canada. What are sources of finance for businesses and how does the owner/manager access and choose those solutions

Financing a business in Canada can often leave the business owner/financial manager feel like they are operating in reverse gear .

The sources of finance for businesses don't have to seem unattainable if you've got some of the basics under your belt... along with some expert advice which never hurts. Let's dig in.

Timelines are not what you might be associating with your company's finance needs. However, the reality is that almost all the financing you require has some sort of timeline attached to it - typically short/ intermediate and long term. And in today’s relentless pace of business and technology the ability to adapt mid stream is quite often a necessity.

What then are some of the elements of understanding what financing you need and when. In our clients mind it's usually cost, and of course that's a factor. Some financing sources present a certain element of risk. Take for example Canadian chartered bank financing - low cost and plentiful if you qualify. Those qualifications often come with debt and liquidity ' covenants ' - Failing to meet those has the potential to put your entire business at risk.

Knowing what the big boys call your ' capital structure ' is important also. - that will affect the amount of debt you can take on. In some cases Canadian business owners and financial managers have found themselves in a position that their industry or the economy creates severe financing pressures - i.e. access to liquidity, etc.

Top experts seem to always agree that arranging financing in advance makes most sense - that sense of desperation never seems to impress the lender/banker/financier

In some cases refinancing your whole business with a focus to turning short term debt into long term might makes sense. Knowing you cash flow capabilities is key here.

What then are those business financing sources, and can we put some timelines on them?


SHORT TERM - typically one year in nature

A/R financing

Inventory finance

Bank lines of credit

Asset based non bank lines of credit

Purchase Order/Revenue Financing

Tax Credit Monetization

Bridge loans


INTERMEDIATE TERM - typically 3-5 years

Equipment financing

Working capital term loans


LONG TERM - 5-25 years?

Commercial mortgages

Mezzanine financing


If you want to reverse gear on financing a business properly seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can ' right track' you to sources of finance for businesses that make sense.




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 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

Business Acquisitions Finance : SME Commercial Acquisitions Financing In Canada

Ever Prayed For Acquisition Financing ?


OVERVIEW – Information on business acquisition finance solutions in Canada. Financing acquisitions in the SME sector requires information on sources and methods of financing

Business acquisition finance solutions in Canada don't necessarily have to come with the requirement of saying a prayer. The ability to purchase, and finance a business requires knowledge of some fairly common sense factors coupled with expertise in some specialized areas. Knowing who to go to and what to talk about is key. Let's dig in.

Top experts tell us that acquisitions financing is such a hot topic for a couple of different reasons - one is the eternal need of the entrepreneur to purchase and operate a business, the other is the amount of businesses available today , particularly in the SME sector , as many founders/owners retire.

Only 1 question remains then - how do you finance the purchase? While Canadian chartered banks can certainly pick up a good part of the slack many owners, as well as the financial profile of the firm they are buying, simply don't meet bank requirements. Some statistics out of the states indicate that 80% of deals are bank rejected. That then requires specialized knowledge in a variety of other sources which can finance such transactions.

The one exception to bank participation in your deal is the Govt CSBF loan program, allowing you to finance business acquisitions to a maximum of 350k. However, that amount, as well as some other forms of ' top up ' financing might well get the entrepreneur on his or her way to close a deal.

Personal equity in the transaction is almost always a requirement in financing acquisitions. Amounts vary relative to the amount of capital you need and the risk profile of the deal. Also factored in there will be lender perception of your management depth and experience. Here's where solid concise business plans focused on cash flow and profits make total sense.

Don't forget also that the seller can also assist in the form of a vendor take back, the ' VTB '. While a lender appreciates the personal capital you are putting at risk the seller is also at risk to a certain degree when they agree to a vendor take back. More often than not they are always a positive influence on a deal.

The one thing to remember though is that in some cases a VTB might essentially be viewed as additional debt you are taking on. So that obligation must be factored into balance sheets and cash flows in your presentation.

Venture capitalists

and private equity groups finance only a small portion of businesses for sale - primarily because these transactions are often done in only the millions and tens of millions of dollars.

Other solutions to finance a business acquisition include:

Unsecured cash flow loans

Equipment financing

Bridge loans

Sale leasebacks

Asset based lending

Working capital term loans from Canada's crown corporation bank

A/R financing

If you're looking for solid, yet creative ways to finance a business purchase 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 acquisition 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 BUSINESS ACQUISTIONS 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 AR Finance : The Inside Secret To Financing Receivables Via Factoring

Practically Invisible A/R Financing?

OVERVIEW – Information on how Confidential AR Finance works in Canada . This subset of ‘factoring’ allows businesses to run and grow their business without any 3rd party intrusion . It’s the non bank business credit line for working capital needs.

Confidential A/R Finance is a method which allows Canadian business owners and financial managers to benefit from the best parts of accounts receivable factoring. How is this method superior to traditional AR finance? Let' dig in.

Carrying a business receivable of course always involves some level of risk. Your ability to both manage and monetize your sales into cash is one benchmark of any successful business. That cost of extending business credit to customers is a key part of how factoring works, and in particular confidential receivable finance, also known as non - notification factoring.

If you’re not financing your receivables through a bank you either are self financing, and comfortable and successful with that, or are simply unable to meet bank starts for all the working capital business credit you need.

Naturally if you your business can't finance your working capital and cash flow needs you are not in a position to support sales through the ability to finance customers, purchase inventory, and fund operating expenses.

While the majority of clients we meet seem to focus on both trying to understand how this method of financing works , or what it costs they seem to forget some of the other key benefits of financing your firm in this manner.

Those benefits include:

The ability to substantially strengthen and increase supplier relationships - i.e. paying them on time, purchasing more

The ability to capitalize on opportunities for growth - that might include larger contracts or new customers in other geographies within Canada or the U.S. (Non North American receivables tend to need to be financed via credit insurance of some type)

Your overall business credit rating is critical to your long term success and factoring via confidential AR finance as payables can more easily be managed among all suppliers


Don't forget also that typically there is no upper limit in your borrowing power under a commercial A/R financing facility. That differs substantially from Canadian chartered bank credit lines, if only for the fact that those bank facilities tend to be capped at a certain limit. We should mention also that many customers who can in fact get approved by a bank often find
themselves in the position of having a low cost of funds but not being able to access all the capital they need.

So how does Confidential A/R finance work ?While it is priced competitively to other forms on non bank financing it allows you to bill and collect your receivables under you own name- accessing all the capital you need in relation to your sales growth . So, in our words, success and still being ' practically invisible '!

If you're interested in exploring what top experts deem to be the most innovate part of factoring seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can help you make that ' inside secret ' into cash flow 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 CONFIDENTIAL A/R FINANCING & FACTORING 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 Finance Sources : We’re Name Dropping On Financing Options

Getting It Wrong In Business Finance Is Not An Option

OVERVIEW – Information on business finance sources in Canada . Avoid these financing options pitfalls with careful planning and expert assistance





Business finance sources in Canada can, unfortunately come with pitfalls if not planned picked or executed carefully. Let's take a look at those financing options while demonstrating that getting it wrong is a costly option. Let's dig in.

Whether a firm's business is in a great economic recovery or even when times are tough any type of business financing is a challenge. Growth? Access to Capital? Cost of Financing? All of those play into the business owner/ financial manager challenge.

While ' low cost' financing seems logical to every applicant the reality is that low rate financing is typically only available from our Canadian chartered banks. If your business can't meet the hurdles imposed by banks (the holy grail of profits, clean balance sheets, strong cash flows)

then it becomes a question of will your business make it with alternative finance solutions.











We promised to ' name drop ' on some of those traditional and also alternate sources of capital. They include, but are not limited to:

A/R Financing

Inventory Finance

Purchase Order/ Contract financing

ABL’S (asset based non bank credit lines)

Equipment Financing

Working Capital term loans

Sale leasebacks

Bridge Loans

Tax Credit Monetization

Business owners with needs in SME Commercial Finance also have the challenge of separating their personal and business assets in the area of personal guarantees that are required by many lenders, including the banks by the way.

Many capital needs for your business, whether operating, or term in nature are actually rooted in the need for, or lack of planning. We couldn’t count the amount of clients we meet that often have no knowledge of, let alone actual cash flow budgets.

When you don't know how you'll make loan payments, or take on new or larger orders a downward spiral often starts.


Don't forget also that its not just about accessing new cash, it's also about managing what you've got. Adopting strong metrics in collections, inventory turns, and utilizing equipment financing proactively to acquire new assets (it conserves cash flow) should by your new normal.

Looking for professional help? That might come from your lawyer, accountant, or by seeking a trusted, credible and experienced Canadian business financing advisor who will help ensure that ' getting it right ' is your new strategy for Canadian business financing 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 EXPERTISE IN BUSINESS FINANCING OPTIONS





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