Receivable Financing Services In Canada : The Power OF A Receivables Company Solution For Your Business

Receivable Financing Services Might Just Be The Buried Treasure Your Firm Is Looking For

OVERVIEW – Information on solutions from a Receivables Company In Canada : Receivable Financing Services Might Be The Right Solution for Working Capital Needs

Receivable Financing Services are one of the most popular working capital and cash flow alternatives today for Canadian business. Receivables company solutions are a solid alternative to the Canadian chartered bank offering - the 'business line of credit '. Let's dig in.

It's not hard to see why business owners/financial managers are mesmerized by the lure of bank facilities - they are low cost, have some solid flexibility. The problem? Getting approved! Essentially it's all about the credit standards set by our banks.

Receivable financing services are alternatively served by a true ' Receivables Company '. They just might be the ' buried treasure ' owners/managers are looking for. These commercial firms fill the ' need gap ‘, albeit at a higher cost. It should be no secret then that the key collateral is simply the business assets of the company, specifically A/R.

Receivable Finance, aka ' factor financing ' - its not ' equity ' or 'debt' financing, its simply monetizing your sales for the business life blood - cash flow.

Financing costs for A/R financing vary widely , and are typically in the 1.25 - 2% per month range These costs though can be truly be significantly offset in a number of ways -

- Your business can negotiate better pricing on product and services because of new found cash availability

- The business can now afford to take valuable supplier discounts for prompt payment, which themselves are often 2%!

- Less sophisticated owners do not always take into account the actual cost they incur to ' carry a/r’

- Larger commercial or govt contracts can be taken on with the knowledge sales can be financed

In our own experience meeting and talking to clients the actual 'needs' of the business become blurred - as the business owner / manager often co-mingles other needs such as equipment , property, inventory .

The best way to view A/R solutions is along the lines of short term operating needs.

There are some distinct advantages to a commercial A/R financing facility. One of them is simply borrowing power, as typical advances are 90% of outstanding A/R, significantly better than the bank 75% ratio. The best use of a facility is when you have an ongoing facility based on the ebb and flow of sales and A/R collections

There are some other solutions out there that might be worth investigating - they include Revenue based finance, which simply allocates a portion of all sales as your borrowing base. In the smaller end of the market, i.e. small businesses and retailers/restaurants ' Merchant Advance ' solutions are popular. They simply monetize future sales - today.

Top experts will tell you that the best use of non bank commercial financing is for business growth - in the majority of cases they are the ' bridge ' back to traditional financing and common timeframes for utilizing this type of service is a year or two.

One of the best A/R factoring solutions is ' CONFIDENTIAL RECEIVABLE FINANCE ‘, allowing you to bill and collect your own invoices without any notification to others - least of all your competitors .

If you're looking to explore the potential ' power '

of a Receivables company seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your working capital needs.


Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN A/R 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

Mergers And Acquisitions Financing In Canada : Connecting The Dots On SME Commercial Finance Opportunities

Talking Serious On Financing Mergers and Acquisitions For SME Commercial Finance Needs

OVERVIEW – Information on financing mergers and acquisitions in Canada . SME Commercial finance needs can be always be met if you are purchasing a business or merging two firms .

Mergers and Acquisitions financing in Canada is somewhat of a ' connect the dots '

challenge for many entrepreneurs, business owners and financial managers who are looking to successfully complete SME Commercial Finance transactions in Canada . Whether you're a buyer or a seller it's all about knowing alternatives and recognizing how obstacles can be overcome... bottom line... ‘Talking serious '! Let's dig in.

Quite often a calculated merger makes sense for many companies - other times opportunities arise (sometimes at the misfortune of others) that cannot be ignored but should be exploited in a positive manner. Raising capital in either a sale, merger, or acquisition creates wealth when executed properly.

In many cases it's simply a sale and purchase of assets and other interests a business might have, up to and including business ' relationships '.

One of the immediate complexities of any sale or purchase of a business is the issue of ' asset' versus ' share' transactions. Here's where talking to your lawyer and accountant can help avoid major pitfalls. Issues to consider are asset values, taxes, and potential liabilities.

Existing financing must also be addressed, including secured creditors, leases, premises, etc.

In a lot of cases a formal ' opinion' or ' valuation' of certain or all assets or total busines value might be required. Many times a lender will specify a certain appraiser or valuator as a condition of their financing, which is a case of a trusted relationship between the lender and the appraiser.

Highly recommended in any case of purchase, sale, or merger is a proper business plan that reflects areas of value and challenge - most importantly cash flows.

Valuation plays a large part in the successful financing of any transaction. Capital raised is dependent on actual asset values ( a/r , inventory, equipment ) and ability to generate cash flows to pay down acquisition financing as well as daily operational financing .

Many less experienced business people are often either confused or unaware of the different valuation methods - ' Comparables ' ' Times Earnings/ Times Sales ' ' Discounted Cash Flow ' ' Cash Flow Analysis ' etc.

The type and cost for the valuation will ultimately depend on the transaction size, complexity and risk profile.

Ways to achieve merger and acquisition financing in the SME Commercial area? They include;

Govt Small Business Loans

Bank term loans / operating facilities

Asset based lending

Sale Leasebacks / Bridge Loans


They might be separately considered, or in some cases cobbled together to successfully complete a transaction. Don’t forget also that ' Seller Financing’ can often be the last piece of the puzzle.

If you're looking to ' talk serious ' when in comes to purchases or merging or selling a business 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 your 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 MERGERS & ACQUISITIONS 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

Lease Vs Buy Declassified : Addressing Equipment Finance Financing Considerations In Canada

Lease Vs. Buy Decisions Don’t Have To Be A ' Hair Raising' Question or Challenge

OVERVIEW – Information on how business owners and managers can address the lease versus buy question when addressing equipment finance and general financing needs for asset acquisition

Equipment finance poses an interesting and challenging question for Canadian business owners and financial managers. That question? Should we lease or buy the asset in question. Or should we care ? ( Answer – you should ) . Whether it’s a one time asset acquisition or if you company is somewhat ' asset intensive ' there are numerous ' repercussions’ (both positive and negative) around addressing that question properly .Let's dig in.

It's should be no secret that the lease industry touts the many advantages of equipment financing as beneficial to your business. Those benefits are real, but even more real is the fact that every company is somewhat different relative to its own needs and any peculiarities surrounding their business or industry.

What then are some of the key factors around your choice to finance, or buy an asset or technology? (Yes Virginia, your tech needs can be financed!)
And by the way, we're not trying to complicate the decision, but other alternatives to leasing do exist - including term loans, sale leasebacks of owned assets, and temporary bridge loans.

Back to the ' lease vs. buy ' decision though at the heart of that decision almost always is some cash flow analysis.

It's really the ' timing' of monthly payments and cash outflow that brings many owners to the decision to opt in favor of leasing. Some of those other issues that should be taken into consideration include tax issues that might well be discussed with your accountant.

In our own experience clients tend to consider balance sheet and, tax, depreciation and other issues in favor of... you guessed it... interest rate! If only we had a dollar for every time someone asked us ' what’s my rate ‘......

In some ways, primarily because the industry is very competitive and overall credit quality drives rate it’s really the least important issue in lease finance!

What are some key data points in managing your overall decision to purchase or lease an asset? They will include:

How the equipment will be used and maintained?

Is it advantageous to my business to include other miscellaneous costs tied to the acquisition in the financing - delivery, installation, service, etc?

Do I have ' wiggle room ' in getting out of a lease early (Answer - basically you do not!)

How can upgrades or add ons to the asset/assets in question be handled?

If you're looking for expert assistance in the lease versus buy conundrum 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 ‘ declassifying ‘ data into asset acquisition financing that makes 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 EQUIPMENT 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

Tax Credit Financing In Canada : Investigating SRED Finance Loans

The Art Of Making Waiting Go Away Via SR&ED Tax Credit Financing In Canada

OVERVIEW – Information on tax credit financing in Canada for the SR&ED program . SRED finance loans maximize and cash flow the benefits of a SR ED claim – here is why and how

Tax credit financing in Canada SRED finance loans is all about making ' waiting' go away. There's really only one reason to finance a SR&ED tax credit, and that’s to utilize the cash today that you ordinarily would wait much longer for.

Let's dig in.

There is a basic structure around the whole SR&ED credit process, and the majority of that evolves into the basics of financing your claim. It goes without saying that new claimants (many companies file successful refundable tax credits under the SRED program every year) want to ensure they are eligible to file.

There's a time and cost investment to file a claim that maximizes your refund, so eligibility is key. Recently the govt instituted a ' pre claim ' process allowing businesses to get a comfortable sense they qualify. By the way, top experts tell us that only about 1/3 of claims eligible are in fact filed! Information technology projects are a huge part of SRED - a lot of software development is funded under the program - and therefore financeable.

The vast majority of companies engage ' SR&ED Consultants ' to prepare claims, which are then filed in conjunction with your corporate tax return. ( By the way , although most firms tend to finance their ' refundable credits' after they file them recent trends in financing innovation and creativity allow you to fund your claim prior to filing - or , at the opposite end of the spectrum - you can start to fund next years claim .. today!

When it comes to preparation of the claims that's where the expertise of the consultant you utilize helps to maximize the total refund - based on formulas under the program for allowable expenses of applicable salaries, contractor fees, materials, use of your premises, etc. Naturally the larger claim = more financing available!

Going ' solo ' in business is never a good feeling as it sometimes denotes risk - but the reality of tax credit financing is that you're in good company with the 20,000 or so firms that file r&d expenses annually - receiving close to 4 Billion dollars or more in cash refunds . As we said, you should only finance your refund if you require business funds - and who doesn't?

Remember also that many businesses filing SR&ED claims are start ups or early stage revenue firms - you still get a cash refund if you arent generating profits in your business.

When it comes to the financing of a SR&ED credit the documentation couldn’t be more simple - a copy of the claim, info on who prepared it , some basic data on your firm, and any recent financial statements, forecasts, etc .

Claims are typically financed at 70% loan to value and the uniqueness of financing a refundable tax credit allows the transaction to be structured as a ' bridge loan ' with no payments. The transaction is closed off when the govt confirms and funds the claim, therefore closing out the loan. Bottom line - you only pay to finance funds for a short period of time.

If you're interested in specializing in the ' art of making waiting go away' consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with investigating SRED finance loans.





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/sred-finance-loans-tax-credit-financing.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

Government Business Financing In Canada : Canadian Govt Loans Deliver

Unboxing government SBL Small Business loans in Canada

OVERVIEW – Information on government business financing in Canada. How Canadian govt guaranteed business loans solve financing challenges

Government business financing in Canada - While many entrepreneurs have heard of Canadian govt loans they have not fully understood his business finance offering. Let's ' unbox ' the program and discuss the merits and applicability of this loan to your business - and that applies to start ups, franchises... in fact any business tha is under the pre-requisite 5 Million in revenues. Let's dig in

Established by the federal gov't many years ago the Small Business Financing program is dedicated to helping new , young, and growing businesses access the financing they might otherwise not receive.

The uniqueness of loan is that the majority of the loan is ' guaranteed' to Canadian banks which offer the financing. At the end of the day it's the govt commitment to encourage Canadian banks to lend to new and smaller businesses. Naturally one of he benefits to the government is the overall economic stimulus in employment, taxes, etc.

In recent years upwards of 7000++ businesses access the loan annually - for billions of dollars. The accessibility of the loan is augmented by the fact that Canadian ' bricks and mortar' branches are on every main street in Canada. (Truth be told the challenge is not finding the right bank, it's finding the right banker).

The ability to get approved for a govt small business loan in Canada provides realistic access to capital for businesses who otherwise cannot qualify for ' traditional ' loans. Yet the actual offering of the program is just that - a traditional term loan at attractive rates, great amortizations, and even the ability to pre-pay without penalty.

Many businesses who utilize the loan are either new, or in some cases purchases of businesses, including the very popular ' franchise ' segment.

The requirements of the loan are pretty basic - the owner must have reasonable good personal credit history, and must be able to contribute a minimum of 10% or more of permanent capital to the financing in question. The loan can only be used to finance 3 separate asset categories - equipment, leasehold improvements, and real estate. (The latter, real estate is rarely used in our experience as commercial mtges are more suited to this type of finance need).

As important to understand what the loan does to is what it doesn't offer. You cannot use proceeds to refinance existing loans or for working capital/line of credit needs.

Other key aspects of getting approved include a good business plan, a cash flow forecast, and basic info on your business location, previous business experience, etc.

If you're looking to ' unbox ' government business financing in Canada seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist in making Canadian govt loans a realistic part of your new or existing business venture.



Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN GOVERNMENT SMALL BUSINESS 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

Business Line Of Credit Lenders In Canada: What You Might Not Know About Funding Options

Looking For A Detour To The Right Business Lines Of Credit In Canada ?

OVERVIEW – Information on business line of credit lenders in Canada. Funding A/R and Inventory can be accomplished in more ways than you think

Business line of credit lenders offer one of the most valuable types of funding required by all types of businesses in Canada. It allows a business to in effect monetize sales via the financing of receivables, inventory... or both. Let's dig in.

When financed properly these credit lines allow a business to sell more of their product and or services - Revenue, and the resulting receivables and inventory are converted into the business life blood - cash flow.

The type of facility that your firm is eligible for is ultimately decided by the ' risk profile ' of your business That same ' risk profile ' will determine the sort of security your lender ( a bank - or a commercial finance company ) requires, and, as importantly, how they will manage the facility .

The business owner/manager should realize that there are different varieties of the commercial credit line facility. As an example more and more firms are turning to ' ASSET BASED LENDING ' as an alternative to the Canadian chartered bank revolving credit facility. One of the interesting features of this facility is that more assets (for example equipment or real estate - if applicable) can be a part of the leveraging of your assets for cash flow and working capital.

We'll add that even the banking community caught onto this one, and many of our major banks have specialized Asset based lending businesses - although some debate how different they in fact really are from a standard bank offering.

From the bank perspective it's of course all about risk, and that demands their ability to ensure requirements met for a credit line include profits, cash flow, clean balance sheets, and personal commitment of owners - aka the dreaded ' personal guarantee ' .

Banks, as opposed to the opposite lender can often be much more lax in monitoring current assets. The opposite side of the coin is the asset based lender - they tend to lend more, and can actually handle your firm having adverse issues (financial losses / weaker balance sheets, etc) because they focus heavily on more regular reporting.

Many commercial finance firms compete with the banks for what we call ' subsets ' of the bank credit facility. That might be A/R financing, or inventory financing, or equipment bridge loans. They do this by more closely monitoring and controlling cash receipts.

Traditional bank financing typically provides funding for mostly A/R and inventory. This is done by monthly borrowing bases that are established based on the value of those two ' current assets ' on the balance sheet.

Often the type of working capital/cash flow finance your business needs is determined by factors such as seasonality, bulges in sales revenue and their timing recognition, or simply the general ' operating cycle ' of the business - with different industries having different cycles and peculiarities.

In a perfect world (is there one?) solutions from business line of credit lenders (banks/commercial finance co's) will allow your company to convert sales into cash - allowing the facility to revolve.

In some cases a permanent working capital term loan might also solve a problem - it simply depends. These loans are repaid from predictable cash flows.

If you're looking for a ' detour ' in the business fork in the road for the right type of business credit line 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 funding options that both make sense.. and are attainable.



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 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

Confidential Receivables Invoice Finance Factoring Funding

A Realistic Receivable Financing Fix : No Scotch Tape Required

OVERVIEW – Information on confidential receivables invoice finance factoring in Canada . Why is this method of cash flow funding the ‘f ix ‘ your company is looking for

Confidential receivables invoice finance factoring and funding is one of the new ' hidden weapons ‘for a dependable sources of financing in Canada - specifically for working capital. This type of facility mirrors most closely a bank credit line - no scotch tape required! It's a real fix for a cash flow solution. Let's dig in.

Is there one key requirement for this type of business credit line? Yes there is... its ' SALES'!

A/R Finance is really what we could call a ' sub set ' of asset based lending. It can be achieved on its own, or, if your business merits it, can also include inventory and equipment under the same facility. But that's a discussion for another day -we're focusing on Receivables funding specifically.

Invoice financing might seem confusing to many business owners and financial managers - but in reality it’s really how the paperwork is handled - that's all. The concept is simple - instead of ' borrowing' against your A/R (as in a true Canadian chartered bank facility) the factoring paperwork designates that you're selling your receivables and receiving cash flow them. That's really the main difference, or ' optics’ behind this type of borrowing.

How then does ' confidential ' invoice financing work relative to the traditional factoring offered by most mainstream commercial finance firms? Here again it’s ' optics ' - as the main benefit of confidential receivables finance is that it's... you guessed it... CONFIDENTIAL!

The bottom line on that one - your company bills and collects it's own client accounts owing - while at the same time achieving the benefit of instant cash flow on those sales . Naturally how much you want to finance or draw down on at any time is your option - you are only paying for what you borrow.

Many firms might not really care that a traditional mainstream invoice finance firm will insist on notifying your clients that they are financing your accounts. If the business owner/ financial manager are not concerned by this type of ' notification' to clients they can also benefit that the factoring firm being very closely involved in credit approvals and credit lines for specific clients.

The bottom line is that Confidential Receivables Invoice Finance Factoring and Funding works best for firms that want to ensure they are perceived by their clients and suppliers as self financing. Our own experience is that if your client base is government or larger well known accounts the owner/manager is very concerned about the perceptions around their firm’s financial stability.

Oh by the way, there's no real extra cost for Non notification financing - which is another benefit to choosing this method of cash flow financing. If you're looking for a permanent fix - i.e. no scotch tape required! in A/R finance 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 A/R 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