Inside The Government Guaranteed Small Business Loans Program In Canada

A Pessimists Guide To Government Guaranteed Loans In Canada

OVERVIEW – Information on the Canadian government guaranteed small business loans program . How can applicants achieve approval optimism and financing success ?





The government guaranteed small business loan program often brings a feeling of initial pessimism to many clients we meet and talk to. They construe ' govt ‘with thoughts of bureaucracy/paperwork and time expended ... with no results. The reality? The program is very accessible and no govt involvement required. Let's dig in.

How then can the business owner/applicant ensure ' optimism ‘

versus being a pessimist on loan approval success? Here's the low down on that.

If there is one ' great ' thing Canadian government has done for the start up/small business sector it’s the govt guaranteed small business loan program - aka the ' SBL ' (Small Business Loan).

The reality - the program finances thousands of businesses each year, for billions of dollars in loan guarantees. And the best way to access the program? It's done via a simple visit to your bank - but be forewarned that if you're not prepared failure is somewhat guaranteed.

Recent changes to the program have been viewed as some pluses and minuses around the program that has been in place for many years. That includes personal guarantees, which were more ' limited ' than in the past. The good news continues around collateral - only what is being financed is really the key collateral for the loan - no home guarantees or outside collateral required.

The three parties to the Govt Business loan are your company, the bank that administers the program, and of course Industry Canada - the branch of the govt that guarantees the majority of the loan to the banks. Borrowers have no contact whatsoever with the ' govt' - they should only know their loan is in the majority back stopped by the federal govt.

How then does the loan application process work You simply as a proprietor or owner of a legally incorporated business need to present a solid business plan, a reasonable cash flow forecast, and a ' needs ' list of amount financed and breakdown . Unfortunately many business applicants for the SBL misconstrue what the program finances - which is only two asset categories

Equipment

Leaseholds

The program does not refinance existing debt, and it covers no working capital requirements such as cash / ar finance, or the often sought after inventory financing. Those solutions can easily be covered off by various asset lending alternatives available.

Sloppy loan packages can pretty well guarantee

a decline - so careful time and preparation around your business proposal, your background info, and personal financial details count. At a minimum you must have at lease 10% equity in the total financing required - although clearly more is better.

The program is fairly liberal on debt to equity and working capital ratios, which are often the key focus in the financial part of your proposal. And you can typically expect a final answer on your completed and proper applications within a few business days.

Govt guaranteed loans can also be used to buy an existing business - that might include a franchise also. Amortization terms are generous and can go as long as 7 years on a term loan basis.

If you're focused on ' optimism ' around the government guaranteed small business loans program seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can prove to you the program was meant to help the entrepreneur.




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



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 Capital Financing In Canada : Eliminating Your Dark Days Of Loans & Asset Finance

3 Reasons To Borrow For Business Capital



OVERVIEW – Information on business capital financing in Canada . When business owners have solid reasons to borrow for growth numerous solutions are available and the time is just about now




Business capital financing in Canada, particularly in the SME COMMERCIAL sector often comes with that feeling of ' dark days ' for the Canadian business owner/financial manager.

Despite those challenges there are in fact some great reasons to borrow for your business - we'll cover off 3 of them. Let's dig in.

While it's debatable how great the current business climate is many firms are nonetheless in a position to grow their business these days. Business lending from banks, alternative finance providers and others seem to be on the rise.

So why should the owner/manager consider new or enlarged sources of financing? Here are our three reasons:

1. Today's competitive business environment calls for continual investment in your business. Very simply speaking - your competitors are there already.

2. Timing has never been better - Canadian chartered banks tout SME lending and alternative finance solutions from niche providers have never been more abundant

3. Borrowing rates and costs for both traditional and alternative financing are at all time lows with of course the general consensus being that rates can only go up in the future. Naturally though not all business financing is done at locked in rates


Even the Canadian govt is willing to step in, having recently revamped to a certain degree the Government Small Business loan program, which guarantees the majority of your loan to the banks. The key advantages of the govt guaranteed loan are still the same - flexible terms, competitive rates, and the ability to finance equipment (new and used) and leaseholds

Many businesses require key technology upgrades and its often a wise choice .to utilize equipment financing for new or upgrades in computers, software, telecom equipment, and other application software required by your business.

If you do believe top experts that business finance capital via loans or asset monetization is critical to success. Exploring options such as:

A/R Financing

Asset based business credit lines

Cash Flowing of SR&ED tax credits

Inventory Finance

PO Finance / Sales Financing/ Royalty Finance

Sale leasebacks

are all potential solutions to your capital conundrum. Oh and by the way, debt and asset monetization strategies don't dilute equity!

There's often no one solution to all your business needs, and often the ultimate solution is a ' cobbling together' of various solutions to match your overall financial strategy.

The bottom line - with knowledge and expertise you can more easily eliminate those ' dark days ' oft associated with business financing. 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 loan and asset monetization 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 BUSINES CAPITAL 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 : Against All Odds You Can Improve Chances Of Business Finance Solution Success

Foraging For Business Financing In Canada ?

OVERVIEW – Information on business financing alternatives in Canada . The right finance solution for Canadian business must match sales, assets, and overall financial viability

Business financing in Canada. It is easy sometimes for the business owner/financial manager to feel they are ' foraging ' for solutions. There's probably no problem with that, although we're highly recommending that you learn as you gather! Let's dig in.

Feeling tired on exploring those finance solutions? Are the odds stacked against you?

Given bank loans, government guaranteed loans, niche solutions offered by commercial finance companies, and all those equity solutions that dilute capital (angel/VC funding, crowdfunding, etc) what really is the right solution that is achievable for your business?

Those equity solutions (as opposed to debt and asset monetization) are really only suitable if your business can achieve hyper growth, market dominance, etc. Not for everyone.

Sometimes it's also difficult for the owner/manager to decline a finance solution when in fact it might be the wrong one - that’s painful business financing and we see a lot of that when we talk to certain clients.

More often than not it’s a ' cash flow ' solution that is required. Those outflows simply aren't matching the inflows! , and the degree of seriousness of that problem has taken many a business down.

The best cash flow and working capital solutions are those that fix temporary and intermediate problems. In many cases they are not the long term fix that that equity capital can provide - from owners or outsiders.

We're the first to advise clients that working capital problems can be overcome by a lot of internal work, not necessarily requiring external financing solutions - that comes via selling more, generating higher profits , and focusing on asset mgmt and debt reduction .

What are though those external financial solutions to business financing, cash flow and working capital? They include:

Bank credit lines

Asset based lines of credit - full facilities or invoice or inventory finance separately or together

Tax credit monetization

Equipment financing/sale leasebacks

Tax Credit Finance bridge loans

The right financing solution can be identified, allowing a turnaround of sorts to commence.

There is a huge difference in the cost and access to financing that larger profitable companies have versus those struggling in the mid market SME Commercial sector in Canada. The reality is that smaller firms are ' credit scored ' in a fairly formulaic way - larger businesses get a bit more attention.

It' critical to understand why your firm can't get the financing you think it needs, but as important to know what the alternatives are. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can reverse that ' foraging ' feeling.



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

An Asset Based Bank Line : The Somewhat Radical Power Of Business Credit

No Engineer Required For Asset Based Financing In Canada

OVERVIEW – Information on the business credit solution known as the ABL asset based bank line . It’s non bank in nature and supplies businesses with all the liquidity they need based on assets and growth.

Business credit needs sometimes give owners/managers the feeling they need an ' engineer ' of sorts for financing such as an asset based bank line. In their mind they want a financing for now, and the future that ' fits right ' and is chock full of the advantages they need to run and grow their business.

Because some or all of the finance solutions you need arent necessarily available from Canadian chartered banks one alternate solution is the asset based ' ABL ' line of credit. It's one solution that puts your firm, the borrower in the drivers seat when it comes to unlimited capital relative to your growth needs. That's a radical statement of sorts, so let's dig in.

Many clients we meet with initially are very reluctant to step ' outside the box ' when it comes to what they consider to be ' traditional ‘working capital and cash flow needs. However, in case you haven’t noticed, times are changing!

While traditional bank lines come with the lowest cost in Canadian business financing they can be limiting when it comes to the limits the bank might place on leverage - or in other cases being unable to address the seasonality and bulges in your business.

The asset based non bank ' ABL ' credit line does come with some obligations on your firm’s part. One of them is the need to report more often, always monthly but sometimes even more on the assets part of your business. Typically that's simply aged schedules of receivables, inventory, and fixed assets. We would submit that if your company can't produce these efficiently on an ongoing basis there's probably other problems lurking on your financials.

The revolving credit facilities you need are often the most sought after part of the Canadian business financing puzzle. The asset based credit line has the potential to solve all your liquidity problems if structured and managed properly.

Companies that have higher debt , as well as balance sheet ratios that don't meet bank requirements but still have current assets ( A/R & INVENTORY ) have just discovered that they now have access to all the liquidity they need , albeit at an often higher cost .

When we explain the ABL asset based solution to clients it’s a function on focusing on the two different ways to look at a revolving credit line. The banks focus on cash flow, historical, present, and future. The asset based lender takes an ' alternate' approach, instead focusing on the hard assets in your business, monetizing them into one revolving facility. These types of facilities are also widely used in buyouts, acquisitions, and general refinancing of a business.

If you wish to explore the somewhat ' radical ' power of the asset based bank line and feel you need more ' business credit ' and flexible financing 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 financing 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 ASSET BASED BUSINESS 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

Canadian Business Financing - 7 Park Avenue Financial

This week our Blog on Canadian Business Financing surpassed 100,000 Pageviews . We thank those that take the time to view the blog as well as those that contact us for Business Finance Needs


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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