Canadian Business Financing - 7 Park Avenue Financial

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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 :


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 '

Business Finance Funding & Refinancing In Canada : Much Ado About Something

Problem : Business Finance Funding & Refinancing In Canada

OVERVIEW – Information on business finance funding and refinancing in Canada . Business rescue solutions are available for owners/managers who take the time to understand the reality around possible options

Business finance funding in Canada, unfortunately for many owners/ financial managers (especially those in the COMMERCIAL SME sector) is, to paraphrase our friend Shakespeare

... MUCH ADO ABOUT SOMETHING. That something is the challenges faced by companies who require, among other things refinancing and monetization of assets. Let's dig in.

If there is any good news it's that the options available simply require some patience and expertise. By that time typically the business has started to grow into revenue. They have passed the ' friends and family' phase, including popular options today such as ' crowdfunding'.

Business financing is all about sales, assets, and cash flow. Without all of those in some measure options such as additional equity capital must be explored.

In Canada those firms that are involved in R&D in some manner have the unique benefit of being able to utilize the SR&ED refundable tax credit program ; they are now able under that fed./prov. program to recover a large majority of their r & d spend . Even more good news is that program is 100% financeable, allowing firms to monetize / cash flow those credits and eliminate the waiting period for the refund.

What then must the owner/manager do to access the right funding at the right time? The answer is the business equivalent of ' going back to school ' - You need to educate yourself on the different methods of financing available , how they work, and what they can do, or not do, for your firm.

A quick recap of the basic funding options is as follows:

Bank credit lines / term loans

Inventory & A/R financing

Asset based non bank business credit lines - “ABL’S"

Working Capital Term Loans

Govt Guaranteed Small Business Loans

SR&ED tax credit monetization

Purchase Order Financing

Bridge Loans/ Equipment Financing/ Sale Leasebacks

Royalty / Sales Financing

After you understand the basics of each of those offerings it's important to ensure you can supply the information needed to ensure you qualify for one or a number of those offerings. That might include a business plan, cash flow forecast, and asset schedules around receivables, inventory and fixed assets.

With respect to being prepared it's very safe bet that that if you can demonstrate control and knowledge of your business finances you're in a much better place when it comes to finance funding approval.

If you want to address the problem of refinancing or funding your business and want some help in the time it takes to source the right solution seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can shorten that timeline.



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

Sale Leaseback Asset Finance : 7 Reasons To Consider The Leaseback Financing Solution

Note To Self : Check Out Sale LeaseBack Financing

OVERVIEW – Information on the benefits of sale leaseback financing in Canada . Asset finance, via a lease back , can bring significant financial benefits to any business considering the transaction

Sale Leaseback is an often overlooked form of business asset financing in Canada. How does this financing work, and, more importantly, what are the benefits. Let's dig in.

Let's explore those potential benefits around the ' lease back ' of business assets, including by the way, real estate.

1. Some leasebacks could bring significant balance sheet and tax advantages to your firm. Although probably the majority of transactions are structured as term loans or capital leases it is of course possible to structure a deal as an ' operating lease ' - allowing the monthly payments to become an immediate expense. Depreciation benefits may also come to bear.

2. The possibility to structure a lease back can really be undertaken at any given time. If there is not immediate financing need (there usually is though!) your company has the opportunity to do a transaction when market conditions on rates are optimal. Today’s current low rates are clearly an example of that

3. The concept of considering lease backs is sometimes just all about focusing on what your business does best. The pro's call it ' core competency. As an example many Canadian chartered banks have sold off their prestigious bank towers on Bay St, utilizing capital in other parts of their business. Pride of ownership is sometimes, unfortunately, a thing of the past in today’s competitive environment.

4. Many transactions in this area focus on elimination of debt - this often improves borrowing ratios which more traditional lenders focus on and allow capital to be deployed in other areas relative to growth, more profits, etc

5. Employing assets via a leaseback will often improve your firms overall return on investment.

6. The unique nature of this type of financing allows you to still use the assets you need - i.e. equipment, real estate, etc - you just don't own them.

7. In many cases the selling of an asset allows owners to take out equity in their business - More often than not, in the case of real estate the assets are in a separate legal entity anyway.

Although some might view this method of financing as ' alternative ' in nature in reality its as much ' traditional' in nature. Final rate pricing and structure depend on the overall asset and credit quality.

So should you check out sale leaseback financing? If any, or several, or all of our 7 benefits can help your firm 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 you asset 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 SALE LEASEBACK 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 Credit Incentives Financing : Best Thing That Happened To Your Film – Animation – TV Production In Canada ?

Masterminding The Why And How Of Film – Television – Animation Tax Credit Financing In Canada

OVERVIEW – Information on financing film, animation , and tv tax credit incentives in Canada . The finance of your refundable media credits help cash flow your project

Financing film, TV, or animation tax credit incentives in Canada is somewhat akin to masterminding successfully productions in these three areas of entertainment. Canadian federal govt and the provinces provide these credits which are modeled closely to those tax incentives provided for by other countries, particularly those Hollywood folks. Let's dig in.


The tax and employment benefits around movie, TV and digital animation projects have encouraged Canadian governments to provide some of the best funding available in the world. As an example let's look at Production Services Tax Credit, which is just one incentive that is financeable.

The federal portion of this credit (there is often both a federal and a provincial component to each type of credit) pays for 16%, as an example, of the labor on any project,

As we noted the true power of cash flowing refundable tax credits revolves around maximizing all that is available. In that case producer/owners of projects should always consider the matching programs offered by the provinces. In this case the provinces (primarily Ontario / BC / Quebec - but pretty well all have credits available) actually compete very aggressively against each other for a piece of your action! Foreign producers have to then make a choice on where they will film, or in the case of digital animation, produce their project.

When it comes to Transmedia projects utilizing all or in part animation Ontario, Quebec and British Columbia have a very attractive

To make our point, combining the provincial program with the federal one can often pay for anywhere from 30 - 70% of your total labor cost on a production, Ontarios (again, as an example) animation credit is called ' OCASE ' and can be layered onto your applicable federal credits.

But wait, there's more!

In certain cases, let's use Ontario as an example, if you film outside of major metropolitan centres such as Toronto, additional credits are applied.

The actual work around preparing your tax credit for financing ( if you so choose to finance/cash flow the credit ) is really a combination of effort with a good film tax credit accountant

as well as your lawyer, who typically on his or her part sets up a separate corporate entity for each project .

It's typically your tax accountant or lawyers work to get the actual ' tax credit certificate' as well as maintaining the financials and legal filings just as they would for any other type of business.

So the actual cash flowing of these tax credits? We thought you would never ask! Refundable TV, film and animation credits can be financed at anytime, i.e. prior to filing, after you file, or even after your project is completed. Typical advances on the credits are in the 70% range. The appeal to the producer /owner is that they help cash flow any current project, or help you fund your next one. Further appeal arises around the way in which these are financed - no monthly payments and structured as a temporary bridge loan.

If you're interested in masterminding the financing of a film, TV or animation 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 cash flow the credit.




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 FILM TAX CREDITS 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

Business Financing In Canada : Knowing Loan Alternatives Is Preventive Medicine For Your Company

Looking For All Seasons Business Financing ? Kicking The Tires On Loan Alternatives

OVERVIEW – Information on business financing and loan alternatives in Canada . Knowing the ‘ credit box ‘ is key to successful debt and asset monetization financing

Business financing , and loan alternatives, in Canada is either at one time (or constantly!) sought by owners/financial managers. If loan options are not understood chaos can reign supreme. Let's dig in.

Unless you're solely in the retail business cash flow, working capital, and debt alternatives should be on the table. We're constantly amazed at the amount of time new clients have spent chasing down financing in areas they will never qualify for - these might include VC equity, Private Equity, etc.

Not knowing how to obtain loan financing, and more importantly, knowing what finance sources you qualify for are key points to consider. There's a great analogy that Queen Isabella was the first VC, having financed Chris Columbus - and probably without a business plan! Key requirements are that some sort of equity be in place and with products and services that have future cash flow potential.

Private equity groups are on the other hand looking for no early development firms, and typically favor niches in certain industries they are familiar with. Whether it’s a VC or a Private Equity Group prepare for: DILUTION OF OWNERSHIP!

Early stage businesses, including start ups should take advantage, or at least investigate the Government Small business loan option. Getting someone to cover off and guarantee your loan is always difficult, so if the Canadian govt is willing to do that... check it out.

Business owners can be forgiven for not breaking down their financing needs into different loan types - that might be:

Lines of Credit - bank revolving credit facilities / non bank asset based lines of credit (typically these finance receivables and inventory)

Term loans - secured / unsecured cash flow loans

Equipment Leasing

Asset Monetization - tax credit financing, sale leasebacks, etc

In every case the owner / manager needs to understand if they fit into the ' credit box ' that defines any particular loan or asset monetization. Those ' fit factors’ include: length of amortization/ amount borrowed/collateral/personal guarantee requirements/ down payments

Business owners in our observation seem to have a desire to blanket the market with their loan / financing request. This often backfires for the simple reason they don't understand the particular ' niche ' that commercial finance company or bank or alternative lender specializes in.

So can we summarize key aspects to ' all seasons' financing? Key areas to focus on are:

Understanding lender specialties

Ensuring proper documentation is immediately available - i.e. business plans, cash flow forecasts, and owner information

Being prepared and knowing finance alternatives is in fact the ' best preventive medicine ' for your financing needs. Consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you avoid ' tire kicking' in Canadian 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 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

Equipment Financing In Canada - A Mid Term Report Card

The following article was published in the CANADIAN EQUIPMENT FINANCE MAGAZINE magazine - ( SEPT/OCT ISSUE )




Back In The Game

By Stan Prokop

The Canadian Leasing industry continues to take part in a strong upturn with portfolios growing at a strong pace. As the industry came out of the 2008/2009 global financial crisis, the industry has raised its sights on new goals for growth and new market segments. These trends have increased the overall importance and visibility of the industry, as it maintains its 'go to' status in asset financing for companies in virtually every industry.

A variety of financing mechanisms – i.e. going public, private equity, access to securitization facilities, etc., allow the industry to accommodate every need of the Canadian borrower. The ability to syndicate larger transactions or portfolios has allowed numerous players in the industry to seem – you guessed it – larger than they are!

So, what is in effect happening in the industry? In many cases it's a borrowers market as borrowing rates for lenders and lessees are at an all time low. There is some irony in the fact that while the lease finance industry is perceived by business borrowers as a quicker and easier way to finance new or existing assets, the reality is that there are complex issues that independent lessors face everyday.

They include:

• Taxation

• Changes in accounting (the near death of the operating lease)

• Capital structure requirements

• Entry of Canadian chartered banks into various segments that were previously the domain of non-bank lessors (sub-prime automotive, small ticket)

Yet the old adage that 'the more things change the more they stay the same' seems to hold true, and business borrowers – from startups to major corporations – continue to view lease financing as flexible, convenient, easier to obtain with respect to credit approval, and as an alternate credit facility. That data has been in my PowerPoint presentations for 35+ years now!

Certain segments of the market continue to enjoy what can only be called ' astounding' growth. One of those is the automotive and truck sector where small and large borrowers alike are looking to conserve capital, lower fleet costs, and acquire and restructure assets.

Element Financial has enjoyed what can only be termed a meteoric rise in this industry segment, and approaching a market capitalization of $4 billion dollars in only a few years. Simply speaking capital markets are 'user friendly' these days – and market players such as the life insurance companies continue to finance a large part of the industry via securitization facilities.

Technology continues to be a key focus in the industry as firms struggle to integrate front and back office shops and stay on top of leading software and internet trends to deliver service in a timely and cost effective fashion. One other aspect of technology is that captive tech lessors such as HP Financial Services and IBM Credit Corp., deliver billions of dollars of hardware, software, cloud, and SAS solutions annually to the market.

Vendor programs always have, and will no doubt continue to be a mainstay in the industry in Canada. They allow companies with products and services to differentiate themselves from competitors and use financing vehicles such as leasing as a competitive advantage.

In summary the industry continues to put capital to work every day. That 'open for business' attitude satisfies micro, small, mid, and large ticket transactions in almost every industry in Canada. New and existing players alike are truly ‘long and deep’ in the Canadian economy .

Stan Prokop is principal at 7 Park Avenue Financial and specializes in business financing for Canadian firms, such as working capital, cash flow, asset based financing, equipment leasing, franchise finance and Canadian tax credit finance. Founded in 2004, the company has completed in excess of $90 million of financing for Canadian corporations. www.7parkavenuefinancial.com




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 '

Business Refinance : Is Commercial Refinancing Loans And Asset Monetization In Your Cards ?

Could Your Company Benefit From Financial Re-Engineering?

OVERVIEW – Information on the value of commercial refinancing loans in Canada. Financial re-engineering via business refinance solutions can save, and strengthen your company for future growth

Business refinance in Canada might often require some ' financial engineering’. If that is ' in the cards'

for your firm what are the issues that might need to be addressed. What solutions for commercial refinancing loans, new debt, or asset monetization might make the most sense in your particular situation? Let's dig in.

Whether it’s a turnaround situation, or propelling your company to future growth it's all about knowing your finance options.

What then are the objectives of the business owner/ financial manager when it comes to assessing those finance alternatives? They include understanding the amount and type of working capital you need as well as the implications that come with those financing strategies

There are various tools the owner/manager can utilized to analyze why some strategies might work while others might not. It's difficult to undo the wrong financing strategies, and expensive! And by the way, how you mange your assets is equally as important as how you finance them.

Cash flow management is of course key in succeeding business. When owners/managers have a handle on their ' cash flow cycle ' it's almost as if they can visualize how cash is used, and how changes in A/R and inventories and payables affect the inflows and outflows of cash.

Finance re engineering strategies for capital inflows to your business can only be accomplished in really 5 different ways.

Let's take a look at those and determine which strategies might work for your firm.

1.Taking on new debt of a long term nature - This can be achieved via equipment financing , temporary bridge loans, sale lease back strategies , and consideration for working capital term loans . Here it's important to ensure you have the right maturity on any loan and your considerations should be around cost, any risk posed to the business, and the restrictions that some types of debt bring with them - i.e. covenants, personal guarantees, etc.

2. Increasing equity capital - While long term equity is often desirable it also dilutes ownership , and negotiations , discussions, and terms via Angel investors, VC's, and Private Equity Groups can bring in significant capital its often a journey that most businesses can't sustain - let along be worthy of


3. Sales increase working capital - simple as that. What many business owners find out the hard way is that the build up in receivables and inventories increase working capital, they do that by textbook definition only. That investment in receivables and goods decreases cash flow. That's where the prudent management of current assets comes in.


4. Decreasing current assets - It's here the business owner/manager will find the most options around proper financing engineering of their business. They include:

Canadian chartered bank credit lines/term loans

ABL (Asset Based Lending) non bank business lines of credit


Tax credit loans (Primarily SR&ED tax credits)

Sales/Royalty financing

Receivables and/or inventory financing - these are subsets of the Asset based lending solution

5. Selling fixed assets or utilizing a proper sale leaseback strategy

If your company can, or needs to , benefit from a business refinance strategy that make sense for your business/industry seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can ensure its ' in the cards' that a financing re-engineering is around the corner.





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