Finance Lease Companies In Canada : Experience The Benefits Of Leasing Company Offerings

Let Business Equipment Leases Be Your Success Story In Asset Acquisition Needs

OVERVIEW – Information on finance lease companies in Canada . How does the leasing company offering give your firm the asset acquisition edge

Leasing company solutions can be the true ' success story ' of any business that requires assets and technology. But does the business owner/financial manager really understand how to maximize benefits achieved from this method of asset financing? Let's dig in.

Over the years the lease finance industry has gravitated to financing every type of asset - they call that from ' micro ticket ' to ' large ticket ' which can be an office photo copy machine for 2k or a corporate aircraft for 20M$.

The borrower, aka ' the lessee ' must know the differences of applying for and getting approved for different asset categories. Owners/managers can also waste a lot of shoe tread in dealing with the wrong firm when it comes to your company's credit quality, geographical location, etc.

When it comes to the small ticket market (people disagree on the exact maximum deal size within this market segment) a large part of the financial approval is often based on the personal credit history and guarantees of owners. If your company doesn't have a truly very strong profile (strong = growing sales, growing profits, growing cash flow, acceptable debt levels) it can almost be 'guaranteed' that personal guarantees will be requested.

The one thing we want to mention about guarantees is that owners/managers who can present their company financials properly can often have some 'wiggle room ' in the personal guarantee conundrum. That might mean a ' partial guarantee ' or a ' declining balance' guarantee. In some cases it might make sense to negotiate the type of ' covenants ' that are often related to bank loans - i.e. debt to equity / working capital ratios.

Old school

credit granting is not quite dead yet also, so traditional criteria such as years in business, usefulness of the asset being financing relative to revenue / profit generation, and commercial credit references also can play a large part in the overall approval process. If there is one good thing happening in financing approvals is that timelines these days are close to instantaneous in the small / mid market - typically same day or 48 hrs max.

We've always maintained that clients focus far too much on rate, if only for the reason that that finance lease companies are in a highly competitive environment - ultimately your firm’s credit quality will always drive the lowest rate in a competitive environment. Owners/managers would be cautioned to spend more time on areas such as terms of the lease, renewals, buyout options, and down payments or security deposits that might on occasion be required.

While we're talking in the main about ' lease financing ' remember also that term loans for equipment might ultimately make as much sense for your financing needs - Also assets already owned can be refinancing under creative sale leaseback or bridge loan scenarios.

Larger transactions for any leasing company will receive a lot more credit diligence when it comes to financial statement analysis, cash flow reviews, and consideration for nuances in the particular industry your firm might be in. Unfortunately some industries temporarily find themselves ' out of favor '.

We can't over emphasize the need for time spent on documents - that might be a ' Master lease ' scenario, or the rights and obligations you have under and operating lease. The ability to ' add on' to any current lease transaction is typically always available.

Amortization terms for finance lease companies tend to range from 2-7 years, in truth the majority of transactions are on a 3-5 year term which makes sense for a large category of different asset types.

What then are the most touted, and real... benefits of equipment finance – they include :

Ability to access other credit facilities other than current borrowings

Rates

Ability to finance 100% of any asset acquisition


If you're looking to maximize on the benefits of a leasing company 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 asset finance 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 EQUIPMENT LEASE 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

Financing A Business In Canada : Growth Capital Funding

Stalking Growth Capital In Canada For Your Funding & Business Finance Needs

OVERVIEW – Information on properly financing a business in Canada . Growth Capital and funding solutions might be closer than you think

Financing a business in Canada can sometimes make the entrepreneur / business owner / manager feel like they are ' stalking ' (without the creepy connotations!). How can that experience be turned into a positive one given the challenges and often stress of searching for growth capital or operating finance solutions? Let's dig in.

It's a given that any lender (whether that be traditional banks or commercial finance companies/alternative financiers) will want to ensure the odds of success in your company are positive. That requires the owner/manager/entrepreneur to ensure that certain aspects of the business be presented in a clear fashion.

Along with the often prepared sales forecasts must come the often forgotten cash flow forecast, financial statement presentation! It also helps to position your company in the best light when it comes to knowing your competition or industry stats.

How you intend to grow , and by how much is as important- as that often will direct you to the type of financing you need - that might be term loans, operating lines of credit, lease financing, or asset monetization.

The advantages of selecting the right funding are clear - it allows you to achieve your growth expectations in a more quick and realistic manner. If your business is somewhat, or a lot, capital intensive the financing associated with those capital needs must be addressed early on. Naturally the financing needed might be ' operating' in nature (salaries, rent, insurance, etc) or our previously mentioned ' capital ‘in nature. (Technology, plant equipment, software, real estate, etc)

Because Canadian banks tend to be ' cash flow ' lenders any firm in start up or early stage will find it very difficult to attract capital they need in our previously mentioned categories. In many cases that's where ' Alternative ' non bank financing comes in. This financing includes:

Receivables Finance

Inventory financing

Sale leasebacks/ bridge loans

Monetization of SR&ED Tax credits for research funds recovery

Asset based non bank operating lines of credit

Sales/Royalty financing

PO Financing

A great example of a ' hybrid’ traditional/alternative finance solution is the Canada Govt Guaranteed Small Business Loan which can provide up to 350,000.00 of financing for start ups and young businesses with less than 5 Million dollars in revenue or projected sales.

Unfortunately the inexperienced in their ' stalking ' for business finance solutions can do serious damage to their businesses. That might mean taking on too much debt, the wrong debt for the need - impacting the balance sheet in a way that cannot be undone without harm.

Business owners often forget to ensure that business life is separated from their personal financial history - so all efforts should be expended to ensure only a minimum amount of personal collateral is pledged to the business lender - bank or otherwise .


Financing needs can often be quantified by some simple planning - along the lines of understanding your needs, knowing you can fulfill them ( traditional/alternative ) and ensuring you have assets or a financial package that highlights repayment .

If you're looking for assistance and some ' stalking ' help in addressing the right financing for your needs seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your growth capital and funding requirements.


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 AND GROWTH CAPITAL 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

Alternative Financing In Canada : Cashing In On SME Commercial Finance Solutions

Alternative Financing Is Not The Wild West Anymore – Here’s Why & How SME Commercial Finance Solutions Work

OVERVIEW – Information on alternative financing solutions in Canada . SME finance needs are often not being able to be fully met by traditional banking solutions

Alternative financing in Canada may seem to some like a bit of the ' wild west ‘, but the reality is that SME finance has dramatically changed the landscape of the commercial loan market in Canada . What are some of these solutions, what do they cost, and how do they work? Let's dig in.

Commercial finance firms and alternative financiers are for the most part unregulated businesses. While that might seem to some as that ' wild west connotation the reality is that they simply arent subject to a lot of the reporting and lending rules that Canadian chartered banks are subject to .

These firms are also perceived as more ' nimble ' and the bottom line is that they are more willing and likely to lend to businesses (and in a much speedier fashion!) - The trade off is usually a higher cost of borrowing. In essence it's a question of ' access' to capital, not ' cost' of capital.

Though borrowing rates are still at historic lows in Canada there's no mad rush by traditional lending institutions to finance firms that are in start up mode, or experiencing ' challenges '.

We think the real trick of understanding the world of alternative finance solutions (a/r financing, inventory finance, tax credit financing, sale leasebacks, equipment financing, po /contract finance / asset based lines of credit, sales royalty financing, merchant advances) is really all about how to manage the cost and debt and ensure these financing mechanisms are used properly to generate cash flow and profits.

Some top experts in the U.S. have actually termed these alternative finance firms as ' shadow banks ‘. Whatever one calls them they certainly deliver capital quickly.

Alternative finance solutions in the SME sector almost always work best when they are funding sales and assets. Being able to monetize those to aspects of a business is really the key to working capital solutions.

A/R Financing is probably one of the clearest ways to explain the alternative lending solution in Canada. As businesses generate sales it's a pure reality that commercial business customers will not pay your firm for anywhere from 30-90 days.

The ability to cash flow this liquid asset (receivables) within 24 hrs and use the capital to pay suppliers, purchase inventory, thereby selling more is a great use of capital. Picking the right A/R financing solution (we recommend CONFIDENTIAL A/R FINANCE) allows the business to bill and collect its own receivables, mirroring the exact way in which a traditional bank credit line would run.

If you're focused on ' cashing in' on new business financing alternatives 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 borrowing 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 ALTERNATIVE FINANCING SOLUTIONS


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

Is Tax Credit Funding The Right Strategy : Financing SR&ED (SRED) And Film Incentives

Understanding the Power Of Tax Credit Financing For Film & SR&ED Credits

OVERVIEW – Information on tax credit funding in Canada . Film and SR&ED ( ‘ SRED ‘ ) incentives can be financed for maximized cash flow

Tax credit funding in Canada (SR&ED / SRED and Film Incentives) is the ability to harness the power of two powerful government programs that provide refundable credits to business. It's only the right strategy when you need the cash flow of course which is almost always these days. Let's dig in.

The Scientific Research & Experiment Development Program in Canada is your businesses way of maximizing eligible expense that your firm incurs in various aspects of your R&D.

Naturally it's important to know:

If you qualify

How much you can recover

How are claims submitted/who submits them


Filing a ' SRED ' claim puts you that much closer to working capital and cash flow nirvana. Being able to maximize your claim (typically done with the help of a ' SR&ED Consultant) and then cash flow it puts you one step ahead of your competition - which these days is pretty well nationally and globally. Top experts tell us that those firms that continually re-invest in new products and services are able to ensure their long term position in their marketplace.

Just how big is this program in Canada? In recent years well over 20,000 firms (of all sizes by the way - from start ups to much larger firms) take advantage of the program. In fact well over 4 Billion dollars annually is claimed. By the way top experts tell us that by far the large majority of claimants are in the SME COMMERCIAL area of the economy - it's not just for the big boys!

Your actual claim under the program is filed by your regular accountant, but the majority of claims are in fact ' written up' by a small industry in Canada known as SR&ED Consultants. They are the ones that carefully analyze your expenses in the area of salaries, contractors paid, and overheads to ensure you are maximizing your claim. There are very specific formulas as provided by the feds and your province that allow you to maximize your refund.

Moving along to making movies, TV shows, documentaries and Digital animation.......! While those subjects seem worlds away from the laboratory or plant work involved in R&D the bottom line is that the other very powerful tax credit in Canada is in the Media industry. These film tax credit incentives are provided by the federal government and the provinces to ' lure' producers to complete projects in Canada.

From the governments prospective it' about jobs and the economy and national culture. From the producer/owners point of view it’s about taking advantage of one of the best ways to help complete the financing of any project. It's not unusual for film tax credit funding to finance anywhere from 30-50% of any particular project.

The role of the SRED CONSULTANT in R&D is replaced by the role of the film tax credit accountant. He or she helps you calculate maximum percentages of your costs under various federal and provincial tax credit incentives.

Weren't we discussing financing of tax credits? Here is where some of the similarity comes together quite nicely in our two subject areas. Tax credits are financeable for both SRED and Media. In effect you are ' selling' or ' cash flowing ' credits to receive cash flow today.

Typical financings are structured as bridge loans for up to 75% or more of the value of your credits. And the monthly payments? There are none! You receive funding today and the loan is collapsed when the federal govt and the province remit your claim. Naturally this could be many months, sometimes quite longer, so cash flow today becomes very appealing.

Canada is a major beneficiary of the HOLLYWOOD EFFECT - many U.S. and international productions that qualify can take full advantage of the film tax incentives.

If you are looking to harness the power of film and Sr&ed tax incentives as well as eliminating ' the waiting time ' seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you harness the power !





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 TAX CREDIT FINANCING






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 Advisor Financing Solutions : 7 Reasons To Choose Proper Funding Assistance

Can A Business Advisor Be Your ‘ Undercover Agent ‘ In The Search For Financing

OVERVIEW – Information on the benefits of utilizing a business advisor for the financing and funding needs of your company for growth and operations. What characteristics should you use to formulate a choice for a finance partner








Financing via business advisor assistance might well be viewed as your version of utilizing an ' undercover agent '

for your funding needs. It's all about getting the right finance solution after exploring all those potentially previously hidden solutions. Let's explore some key reasons to utilize a third party for your company’s financial needs .Let's dig in.

1. While some owners / financial managers might consider it a potential extra cost there are some tremendous offsets. By the way there are many advisors who might actually be compensated by the funding source, so in effect that value and benefit is quite often not a direct expense. We're the first to recognize though that there is ' no free lunch ' in life!

The bottom line is that if an advisor can help your firm bring a financing solution to the table that helps your firm generates profits and survive in today’s competitive environment that should be a major consideration.

While many owners have taken to the internet ' big time ' to try and source their own financial solutions it can be a confusing scenario around who you are dealing with, what they are offering, etc . The real issue here is that many companies have a ' unique ' need that requires some level of customization to the particular challenges they are facing.

2. The danger of a 'do it yourself' type investigation should seem obvious but the risk of engaging the wrong party or getting simply wrong facts and information can only lead to potentially dangerous problems down the road .

Bottom line - it's very hard to unwind a financing that was not meant to be and simply doesnt work for your firm.

3. One key critical benefit of a true business finance specialist is the ability to meet or discuss with your firm first hand any unique challenges your firm might be facing. While many firms in any particular industry have common traits there is always some uniqueness in the way you do business. Uncovering solutions to those challenges is the true value of a business financing advisor.

4. A truly experienced funding advisor should be able to demonstrate financing knowledge and success in numerous industries and provide a unique perspective to your firm’s particular situation.

5. Because the advisor is independent he or she has the ability to remove ' bias ' from any proposed financial solution. The right specialist will also be totally up to date with what is happening in both traditional and alternative finance solutions.

6. Credentials and past success are always important, so the ability to demonstrate success with previous employers and clients is key to your firm benefiting from any solution.

7. Any type of business financing comes with benefits and potential risks. The ability to understand those and ensure the right balance is in place is key to the comfort level of the business owner/owners.

If you're looking for financing assistance in traditional or alternative solutions such as:

A/R Financing

Inventory finance

Bank term loans/credit lines

Asset based non bank lending facilities

Equipment Financing / Sale Leasebacks

Tax credit monetization (Sr&Ed and film)

Working capital term loans

PO/SUPPLY Chain finance

Sales/Royalty financing solutions


consider seeking out and experiencing the benefits of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your needs. It's your version of the ' undercover agent ' utilized properly!






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/business-advisor-financing-funding.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

Financing The SRED Credit And Film Animation Tax Credits In Canada

The Surprising Overlap Of Film and SR&ED Research Tax Credits – They’re Both Financeable





OVERVIEW – Information on financing the SRED ( SR&ED) Research Credit as well as film animation tax credits . These two refundable tax credits can be cash flowed for company / project financing

Film and animation tax credits in Canada, along with the SR&ED research credit have an interesting overlap. That overlap is... FINANCING.

Let's dig in.

Yes, there is no business like the tax credit business (as the song goes?!) And when it comes to financing these two programs there are some remarkable similarities... and benefits.

A tax credit in Canada can come in many forms .- they are essentially ' incentives ' that allow public policy in certain industries ( in our case ' research ' and ' film ' ) to provide a benefit that might otherwise not exist . And when those credits are' refundable ' in the form of real dollars the benefits truly kick in.

Let's first take a look at the SRED (‘SR&ED’) program. In place now for over 60 years in some form, it provides encouragement to business of any size to conduct research for business benefits. In Canada billions of dollars each year are sent to firms who participate in the program, and that reflects business of all sizes, including start ups by the way. Claimants in this program are approaching 20,000 firms annually by the way.

The spirit of the program is of course to allow firms such as yours to take products and services globally, enhancing Canada's reputation along the way. The major areas of expense recovery under your claim include labor, contractors, and overheads directly attributable to the R&D you are carrying on. Computer programming is often a large part of many claims and has helped make many software firms successful.

While a small number of firms choose to prepare their claim themselves the majority of the work done in Canada in SR&ED prep is done by SRED CONSULTANTS. It's their job to sort through areas of experiments, research, and to determine what’s eligible and what’s not, including summarizing that activity.

The area of ' FILM '

which includes movies, documentaries, television, and the hot new area of digital animation is the other large beneficiary of a tax credit. These credits attract producers and owners to Canada, and the credit has proven to create jobs and tax revenue, as well as an overall ' stimulus ' to Canada's reputation and economy.

When it comes to the financing puzzle of putting together a film project well over 35% of any project can be fully financed via film and animation tax credits.

When we talked about refundable ' SR&ED ' credits we covered the role of the SRED Consultant. When it comes to the film industry that role is shared by a ' Tax credit Accountant '. They maximize the percentage available to your project... allowing producers and owners to ensure maximum benefit is being taken into account under the program.

The programs, by the way, are a combo of federal and provincial incentives. Knowing what amounts are available from what province under which program is key!

We spoke of the ' overlap ' of these two seemingly different programs. But whether its the ' white coat' scientist in the lab or the movie producer shooting in the field or the digital engineer working on an animation project the bottom line is that refundable tax credits in each program are financeable !

Even more similarity exists in how the credits are financed, which are typically 75% loan to value, and being structured as a bridge loan with no payments. Financing can also potentially occur before the tax credit certificate and your financials have been filed.

If you're looking to monetize a ' SRED ' claim or a film , TV or transmedia digital 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 in monetizing your claim for maximum benefit .




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 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