The Rise Of Online Financing In Canada

Check our our article which was featured as a cover story in the latest issue of CANADIAN EQUIPMENT FINANCE MAGAZINE ( article is on page 20 )


Here's the link to this excellent publication geared towards borrowers and lenders alike :


http://issuu.com/dmn.ca/docs/cef_novdec2014_w/1




If you're looking for finance solutions in any area of lease financing including
technology acquisition, software finance, sale leaseback contact us .



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 '

Receivables Loans Provide AR Cash Flow Advantages

The Design Genius & Advantages Of Non – Bank Confidential A/R Receivables Based Financing

OVERVIEW – Information on AR cash flow solutions in Canada . Receivable Loans ( it’s not a loan per se!) via Confidential A/R Financing just might be the solution to beat your working capital finance challenges

AR cash flow can be achieved in a number of manners. Receivable loans (they are not actually loans by the way!) for many business owners and financial managers immediately conjures up bank financing. But that's not always the case as we'll see. And you just might find the 'design genius ' of some of these offerings quite interesting, and more importantly... achievable. Let's dig in.

The concept of financing A/R revolves around the need for short term day to day operations. That challenge is accentuated when it comes to ' growing ' your revenues and profits. Businesses requiring SME COMMERCIAL FINANCE needs should not feel alone in this area - some of the largest companies in Canada constantly have to address cash flow needs.

So what then is ' Confidential ' A/R based finance? At it's simplest it's securing financing via your client receivable base on a typically ongoing basis. When you're dealing with a bank your accounts are ' pledged’, but a commercial finance firm utilizes paperwork to reflect an ongoing 'sale ' of your accounts as they turnover. That's the essential difference.

It's not secret that bank rates for any business financing is typically the lowest cost of borrowing. While Confidential ' non notification' loans are more expensive, their benefits mirror a traditional bank facility. This is achieved via your ability to bill and collect your own invoices, while still reaping the cash flow benefits of same day financing for all your sales.

Many firms that utilize commercial A/R cash flow loans are in a transitory phase. They are either leaving the bank (having been asked to!) or seeking commercial financing for their sales as they repair any financial issues in their business allowing them to migrate back to... you guessed it... the bank!

There is no business that does not have the ability to finance their accounts receivable. The only requirement - Sales and commercial A/R.

While we have painted a picture of many businesses having no access to bank funding there are numerous firms who have access to some bank credit, but not all that meets their needs.

From an approval perspective Confidential A/R funding takes a holistic look at your whole business - that encompasses your current financial position, its challenges, your industry, as well as your overall client portfolio. Issues that can slow down, but not hinder your AR financing might be CRA issues or having some clients or a client represent a large part of your whole business - i.e. the concept of ' concentration'.

What then are some key ' drivers' that you would consider in receivable loans? They include:

Positive : the ability to achieve continual financing day to day, facilities revolve, growth becomes virtually unlimited , greater flexibility in negotiating terms with key / new /large clients

Less than Positive

- higher cost, occasional higher reporting needs


If you're interested in the 'design genius ' of AR cash flow financing that mirrors a bank 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 in your 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 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

Bank Financing Solutions In Canada : A Mindset Rework On Working Capital & Term Loan Solutions

Diving Into Bank Financing In Canada With Knowledge Vs. Myth

OVERVIEW – Information on achieving successful bank financing in Canada. Working capital, cash flow and term loans can power your business to new levels with flexible finance and low costs if you know how to qualify and position your business

Bank financing in Canada is often viewed as a ' hurdle ' for business owners/financial managers, particularly in the SME COMMERCIAL FINANCE needs area. These can be often overcome with some basic knowledge of success strategies to achieve what is arguably the lowest cost/most flexible financing available to the Canadian business owner. We're diving into some truths and myths around bank lending .Let's dig in.

We're not 100% sure of the per cent age amount of bank finance applications that are declined in the Canadian marketplace , but we do know that in talking to clients it's difficult for them to overcome getting inside the box . The box? That's the credit box of ratios, covenants and collateral that your firm must fit in. When you are not approved you're forced to get financing ' outside the box '! - more on that later.

Let's cover off some basic bank solutions to your capital needs, and then let's discuss several key areas you can in effect ' pre-qualify' yourself on, thereby improving chances of success.

The good news in Canadian chartered bank financing is that, when successful, you can achieve all your short, intermediate and long term financing needs for your business.

Those needs? They include:

Unsecured business loans: These loans are substantiated by your immediate cash flow. Terms are shorter in nature and are often for interim financing or seasonality finance needs of your business

Business line of credit: This of course is to cover off your ongoing working capital needs. It's quick daily access to your ongoing working capital and cash flow needs. In essence it funds your working capital accounts on your balance sheet - typically A/R and inventory.

Term loans/ Leasing - These solutions allow you to finance fixed assets and take on debt that makes sense for your firm. While not all Canadian banks offer ' leasing' solutions for assets in some cases they partner with major well known players. A term loan can also often achieve the same results and equipment lease finance.

Let's cover off some basics around the process. First of all it's critical to have a strong handle on what can be called your ' use of funds'. Knowing how much to ask for allows you to take a look at your finance statements and ensure you can meet 'debt service' ratios that are required for approval. Key point - banks love ratios!

Get used to it!











Typically a cash flow ratio of 1.25:1 is required. By knowing your cash flow ratio you can literally determine yourself the amount of busines credit you will qualify for - all other things being equal.

In the SME COMMERCIAL space in Canada owners must have reasonable personal credit. Know your credit score and be prepared to address issues that might arise out of that discussion.

Canadian chartered banks focus a lot of collateral, both inside the business as well as the owners outside net worth/assets. Different types of assets have different value - a good analogy would be real estate versus perishable inventory. Big difference in collateral!

Bank financing can also be achieved via the Govt Guaranteed Business Loan, which is administered by the banks but is actually a govt program, it’s a great way to achieve inside the box financing that you might otherwise not qualify for.

If it's necessary to go ' outside the box '

don’t forget that numerous non bank solutions exist for business capital needs. They include:

A/R Financing
Inventory Finance
Asset based non bank lines of credit
Tax Credit Financing for refundable tax credits
PO/Royalty financing
Leasing/Sale leasebacks

If you're looking to do a rework on your mindset of what Canadian chartered bank business financing is , or is not seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital needs - inside and outside the box!



Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

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



7 PARK AVENUE FINANCIAL = CANADIAN BANK 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

Asset Lending In Canada: A Multiverse Possibility On The Newest Business Revolving Line Of Credit

While You Were Out A New Kind Of Business Credit Line Emerged

OVERVIEW – Information on asset lending as the newest form of a business revolving line of credit . Here’s why this works .. and how

Is a business revolving line of credit the only one of its kind in Canada, or the universe for that matter? The answer is a resounding ' no '! - Apparently it’s really a ' multiverse '! where asset lending has created a unique version of business borrowing for revolving credit facilities. Let's dig in.

Asset lending is somewhat of a ' stealth ' type of borrowing in Canada - unbeknownst to many it has become extremely popular. So in our parallel universe we have the Canadian chartered bank line of credit as well as the 'ABL' (Asset Based Lending ‘) facility. While our banks choose to focus on a combination of cash flow, balance sheet proportions, and evidence of good profits the ABL credit line chooses to keep it simple - it's all about your assets - namely a/r , inventory, and fixed assets; any single or combination thereof .

The asset based line of credit also distinguishes itself in that it can also be used as the base financing for purchasing a business, merging with one, or reviving one via a turnaround. Larger retailers, who typically only carry inventory as their financeable asset, are excellent candidates for asset lending as one can imagine.

In the U.S. for example some of the largest and most successful well known corporations have turned to asset based lending as their ' credit line of choice ‘. It should be mentioned that for larger successful companies there is almost no negligible difference in rates/financing costs when benchmarked against bank lending.


However, in the SME COMMERCIAL FINANCE area in Canada these facilities, while providing more liquidity come at a higher cost. So for the business owner/financial manager its all about balancing liquidity needs and access to capital versus cost of financing.
Similar to bank facilities the ABL credit line is typically renewed on a yearly basis; although some companies prefer (or are asked) enter into multi year commitments for the financing.


How do commercial asset based lenders justify this type of borrowing when it comes to their own returns and risk? The answer is quite simple - as one top expert put it, they are ' fanatical' about asset quality and turnover, as well as putting in more disciplined reporting. This offsets the need for covenants, ratios, and outside collateral, which is the staple of commercial bank lending in Canada.

Typical asset lending provides a borrowing margin of 90% on receivables and a much higher level of borrowing power on inventories and fixed assets. So, in case you haven’t figured it out your business has access to different solutions in your business revolving line of credit needs. Whether it's traditional bank financing or credit line achieved via asset lending seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you navigate the financing universe, or should we say ' multiverse'.





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

Financing SRED Tax Credit Incentives In Canada: Unlocking Uncertainty In Your SR ED Claim Loan

No R.S.V.P. For SR&ED R&D Tax Credit Financing As It’s An Open Invitation

OVERVIEW – Information on financing SRED tax credit incentives in Canada. A SR&ED ‘ bridge loan’ is the effective way of monetizing your SR ED claim to accelerate the cash flow benefits of this program

Financing SR&ED Tax credit incentives in Canada comes with a pretty well automatic invitation, that's right, no RSVP required. It's all about this loan unlocking the uncertainty in both claim approval and even better, eliminating the waiting around your government refund. Let's dig in.

SR&ED bridge loans are in some ways a combination or marriage of technological and technical. Technological refers of course to the essence of your firms R&D claim - what the government and your SRED Consultant

call the ' uncertainty' your firm is addressing via the ' experimental development ' around new products and services.

The path to those expenses you incur leads to the basic technical aspects of a SR ED loan, which is typically constructed as a bridge loan to mirror the time that your claim is being reviewed and approved by the federal/prov. govt bodies that fund these claims.

Your firm is eligible to finance your SRED credit whether you prepare your claim your self (not common) or if it's prepared by a (hopefully!) qualified/experienced independent consultant. These folks seem to prepare the bulk of the claims in this industry - and they are paid on a fee basis for heir work and time, or in most cases they put themselves at risk by offering ' contingency ' - that is to say they only get paid when your claim is both approved and funded.

The consultants expertise (is it an art or a science we wonder?) maximizes the quality and amount of your claim. Since claims are financed under your SRED loan at around 70% loan to value the simple observation is of course that the more you claim the more cash you receive under your financing.

The documentation around your tax credit financing could not be more basic. Of course it revolves around the actual claim that you file yourself under the ' T661' form that you and your consultants and accountant complete as your submission of your claims.

The simple way to look at R&D TAX CREDIT FINANCING is that you need to simply supply basic info around your actual claim, as well as basic info around your company. As far as the company info is involved it's information such as financial statements, perhaps a summary of what your business does or hopes to do.

Hopes to do? Yes, that's because many of the businesses utilizing the SR&ED program and SR ED financing are often still in development, pre revenue, or early revenue stages. You may have figured out by now that the ' collateral' for your loan is simply the refund itself.

Recent innovations in tax credit financing couldn’t be more in favor of your firm, the borrower. They include the ability to access your financing prior to filing your claim, or to also start borrowing against next years claim.

If you're looking for your RSVP invite to trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can help you cash flow your claim today.




Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com

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


7 PARK AVENUE FINANCIAL = CANADIAN SR&ED TAX CREDIT FINANCING EXPERTISE



Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Government Small Business Financing Loans In Canada : Safecracking The Federal Loan Program

Ready To Trust Govt Small Business Loans In Canada – They’re Guaranteed !



OVERVIEW – Information on government small business financing loans in Canada . Here’s why this loan is easier to access than you might think – and if it isn’t there are alternatives

Government small business financing loans in Canada are often disregarded by Canadian business owners/financial managers if only for the reason that they have decided that the application process is somewhat of a burden.

Federal govt ' guaranteed ' loans are probably the most basic form of business application , so lets examine who's right and who is wrong on that belief - in effect we're cracking the safe

on this somewhat misunderstood financing . Let's dig in.

In Canada there are various perceptions around business lending in the SME COMMERCIAL finance needs area. Those perceptions include the fact that even though the 2008-2009 recession is well over business credit is still tight.

There are various reasons why the Govt Business loan isn't being pursued. The program itself is a term loan, not a revolving line of credit or cash as many may have been led to believe. That implies taking on debt, as well as knowing that your firm in fact qualifies. That, coupled with our premise that many business people feel the application process is cumbersome (Spoiler alert - It is not!) may be some of the reasons that the federal ' SBL ' loan isn't access by more businesses.

Safe to say also that despite that fact that close to 8000 Canadian businesses every year qualify and are approved for billions of dollars some entrepreneurs/owners might feel that don't qualify. We say entrepreneurs because thousands of start ups and franchises are financed under the program also.

Let's dig into that ' application process'. Is it really as ' intimidating ' as some think? Hardly we maintain. The process includes some of the most standard documentation that anyone would expect in business credit. They include:

An executive summary or business plan around your business/project (This should include some financial projections that clearly reference how the loan will be repaid

Confirmation that the owner/owners have reasonable personal credit

Breakdown of uses of the financing (By the way the program only finances 3 asset categories - equipment, leasehold improvements, real estate)

Basic legal fundamentals around your business - i.e. incorporation details, business address,

We're the first to agree that ' time is money ' so your ability to properly prepare and present your proposal is key. Although all Canadian chartered banks offer the program it's critical to locate a supportive and knowledgeable banker.

Success in the government business loan allows owners/entrepreneurs to:

Start a business

Buy a business

Acquire a new/existing franchise

Grow a company

For those that would still maintain this excellent program is not for them numerous alternative financing solutions still exist - they include:

Receivable financing

Inventory Finance

SR&ED Financing

Asset based non-bank lines of credit

Equipment Leasing/ Sale Leasebacks

Whether you're looking to reap the benefits of the federal Government small business loan finance program, or looking to investigate other financing options seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you 'safe crack' finance solutions you can trust.


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 BUSINESS LOAN FINANCING EXPERTISE






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Business Acquisition Financing In Canada : Finance Solutions Not Built On Sand

Opening The Wallet On Financing Acquisitions In Canada In The Sme Commercial Market

OVERVIEW – Information on business acquisition financing solutions in Canada

Business acquisition financing in Canada, when successful, requires that the finance component of the transaction be not built on sand. Strength is needed in this area, so lets ' open the wallet ' on acquisitions acquired properly. Let's dig in.

There are numerous methods of acquiring a business and raising the right amount of capital to finance the transaction - One of those that is less known to business folks is ' subordinated debt ' - in effect an unsecured cash flow loan.

While a cash flow loan is almost always more expensive than traditional bank term loans it is more flexible and can often carry a large part of the total financing needed to complete a deal. This loan ranks 2nd behind any secured debt, hence it's ' subordinate' to the secured finance part of the transaction.

If the loan is ' unsecured ' how then does the lender, i.e. a commercial finance company or a bank, view chances of repayment. Here it's down to 2 words - ' CASH FLOW'.

So if you're contemplating a cash flow loan as a part of your deal it's safe to say you should spend some time on:

Past cash flow analysis

Present Cash Flow

Future projected cash flow (by the way - we' never met a projection we didn't like ' said one of our mentors)

Why would owners/financial managers consider a cash flow loan for business acquisition financing? Simply because 100% secured asset financing might not be possible, and the other alternative, ' owner equity' is less desirable because it’s either unavailable from the owners, or more dilutive.

Many times in business owners/managers find a situation whereby they can acquire a competitor or a strategic partner. The valuation price on the deal might be more than the assets can support - especially if current owners do not wish to be a part of the financing via some sort of 'vendor take back.' In many cases a cash flow loan might not be a part of required debt and other ratio covenants.

Other sources of capital available for financing a purchase include:

Government Guaranteed Business Loans

Asset Based term loans/lines of credit

Equipment Financing/Sale Leasebacks

Receivables/Inventory Finance

Whether it's an opportunistic transaction you come by or a sale of a business as part of the ' graying effect ' of older business owners the financing of a transaction, done successfully, can make your firm more strategic and competitive in your industry.

So whether it's about cash flow, assets, profits, or sales growth consider seeking out and speaking to a trusted , credible and experienced Canadian business financing advisor who can assist you with your acquisition 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 BUSINESS ACQUISTION 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