Financing SRED Credits: Cash Flow Optimization Via A SR ED Tax Credit Loan

The Silver Lining In The Dark Cloud Of Waiting For Your SR&ED Claim Refund

OVERVIEW – Information on the benefits and utilization of a SR ED Tax Credit Loan in Canada. Financing your SRED Credits is a smart way to accelerate your SR&ED refund

Financing SRED (SR&ED) credits in Canada is one key way in which business owners/manager participating in the program can ' optimize ' the benefits of this popular program. We're maintaining that a SR ED Tax Credit Loan is in effect a great ' silver lining in the dark cloud “of ... waiting for your refund. Let's dig in.

There are also other ways in which you can, effect, monetize your SR&ED filing each year. It's your way of course to take part of the 3 Billion $+ the federal and provincial governments typically spend on the program each year. The double whammy of receiving a refundable tax credit while at the same time maintaining your competitive stance is clearly a key driver in utilization of the program.

Whether it's simply filing your claim, or financing it your company is constantly in a 'waiting game’. In fact certain deadlines for filing and having your claim adjudicated are in fact cast in stone in Canada Revenue Agency rules. Their service standards are clearly laid out. By the way the financing of your refund allows you to leap frog the timelines in question.

Optimizing your claim, including considering a SR ED tax credit loan revolves around the proper preparation of your refund claim. While a very small portion of firms prepare and write their own claims typically this work is most effectively completed with the services of a ' SR&ED Consultant.

A good consultant will also lend credibility to your SRED finance loan application in that their work in areas of writing the narrative to your claim, as well as properly itemizing the costs is to key our ' optimization ' them . Who wouldn’t want to have a goal of ' fast tracking ' CRA' in areas of eligibility, expenses incurred, and co-coordinating the filing with your accountants. That ' notice of assessment ' followed by your refund cheque is clearly the goal line!

It's important to note that since SR&ED refund claims are filed only when you have completed your year end financials and corporate tax return this simply enhances the temptation of accelerate your refund via a SR ED tax credit loan.

Very few could argue that the funds you receive under the program (typically in the general range of 35% of all monies incurred in R&D) is valuable cash flow. Many firms who are start up or early revenue will attest to this!

Financing SRED Credits is of course an option, not a requirement. Only firms who are looking to accelerate cash flow should consider the SR ED tax credit loan. You need to give consideration to the overall timing of your claim as well as the actual need for funds. Typically your firm would use the proceeds of a SR&ED bridge loan for general working capital purposes in any area of their business

Financing your refundable sred tax credit couldn’t be simpler. The loan is structured as a bridge loan for 70% of the total value of your claim. No monthly payments are required, as financing costs ' accrue’, thereby making the loan even more attractive from a viewpoint of cash outlay. And by the way, you can start financing yesterdays SRED, today’s claim, and next years claim... whenever you wish.

Looking to ' optimize' the benefits of the Canadian govt R&D program? Finance your refund with the assistance of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your cash flow needs.



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 100 Million $ of financing for Canadian corporations . Info /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 '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.









Stan Prokop

Business Credit In Canada In A Nutshell : Funding Sources 101

The Great Business Financing Treasure Hunt : Digging Up Finance Solutions In Canada

OVERVIEW – Information on business credit options in Canada . Funding sources for firms in the SME sector are available if you utilize this information properly

Business credit in Canada
often feels like a ' treasure hunt' of sorts for Canadian business owners/financial managers. The reality in the search for those funding sources that will work for your company is that, like many aspects of business, some key basics apply and help to guarantee success. Let's dig in.


There's always an interesting debate around whether businesses in the Small to Medium Enterprise (SME) space either require financing, or, more importantly, are getting serviced properly by banks and other traditional lenders. While that debate rages on top experts agree that at the end of the day is important for owners/managers to understand options and qualifications.

While business credit needs in Canada relate to ' the business' most owners often are surprised to find that their personal financials play heavily into any borrowing situation. It's probably a bit closer to the truth that while personal credit history won't be the only or the major cause of a decline in funding approval for your business it clearly carries a vote. Bottom line - ensure you understand the dynamics of your personal financial situation as it relates to guaranteeing your loan / getting approved.

A hard fact of life basic for business funding is that ' time in business' counts. Starts ups and early stage companies know this all too well and of course traditional lenders such as Canadian chartered banks place heavy focus on operating history. Sales and sales growth hopefully translate also into profits and cash flow and asset acquisition so ensuring you can demonstrate revenue generation potential is key in any business finance plan.

Do business owners/financial managers really properly assess challenges in the following two areas?

1. The amount of financing they need

2. The type of financing they require

We've never been fully sure of that, if only for the fact we've seen many clients telling us they have spent time and money chasing down sources of financing for fixed assets, working capital, or even real estate from lenders that were totally inappropriate for their requirements or financial situation...

The concept of ' collateral' plays heavily into any traditional or alternative lending solution; in many cases hard assets can even backstop working capital and cash flow solutions.

Many businesses that have ' written off' their chances of getting financing from a bank , at bank rates often forget they might be eligible for the Canadian Govt Guaranteed Small Business Loan ( 350k max) which is offered through banks . We're of the strong opinion it’s important to focus on a good banker, not any specific bank.

As we have hinted, numerous non bank financial solutions are available to the business owner - they include:

A/R Financing
Inventory Finance
Asset based business revolving credit lines
Tax credit financing (Primarily SR&ED Refundable tax credits)
Equipment Leasing/ Sale leasebacks
Bridge Loans
Purchase Order Financing
Sales/Royalty finance

Business owners are very quick to share reasons they have been declined for financing needs - Those all too common issues are collateral, personal credit history, industry out of favor, lack of proven cash flow , owner equity issues, etc. All of these issues can often be addressed via numerous financial solutions not always generally known to business people.

If you're focusing on being successful in the treasure hunt for business credit and funding sources in Canada seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who is committed to successful financial solutions to the Canadian SME Commercial marketplace.




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


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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINES CREDIT AND FUNDING EXPERTISE






ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.








Stan Prokop





' Canadian Business Financing With The Intelligent Use Of Experience '






















Stan Prokop

Asset Based Financing In Canada : The Simple Design Tweak For A Business Credit Line

The Chase Is On For Business Line Of Credit Solutions and Alternatives





OVERVIEW – Information on asset based financing in Canada. These types of facilities are strong alternatives to business credit line needs . Here’s how ‘ABL’ facilities can work for your company









Asset based financing in Canada is really another term for a ' simple design tweak' in the business credit line requirement your firm needs for cash flow/working capital operations. Clearly in the current environment ' the chase is on ' for alternate methods of financing your business. Let's dig in.

The Canadian chartered bank requirement for a revolving credit facility for firms both large and small is very clear - track records and financial statements that measure up in every way, from clean balance sheets, profits and cash flow coverage. But what if your firm can't meet one, much less all those criteria? One solution is the ' ABL ' - commonly called the asset based line of credit.

These facilities mirror bank financing and typically secure the same assets - i.e. receivables and inventory. Asset financing credit lines differ however in that they can, at your option , also include fixed assets/equipment and even real estate as a part of that revolving credit line. Talk about an increase in business borrowing power.

There is no need for business owners/financial managers to struggle in understanding how the asset credit facility differs from a bank line - Bank lending in Canada is steeped in what banks consider time tested methods of analyzing risk - i.e. debt ratios, covenant breaches, etc. Canada's strong banking system also imposes a lot of regulation on banks. Asset based credit facilities are typically offered by commercial finance firms that are not regulated via the constraints imposed on banks by gov'ts and shareholders.

The concept of the uses and needs of a business credit line in Canada is based around what lenders call your ' borrowing base' - namely the pool of assets that is being financed. Typically the current assets, i.e. A/R and inventory form the majority of your borrowing base. Typically these asset categories will fluctuate based on sales and asset turnover, i.e. days sales outstanding and inventory turns.

It's always important to remember that neither a bank line nor an asset based credit line are ' term loans'. Your business credit line fluctuates daily and does not add debt to the balance sheet - suffice to also say there are no fixed payments or amortization schedules.

Certain types of business present challenges to the need for a credit line - some examples might include construction industry exposure or government receivables. Also, for many companies ' inventory' is a key asset and a large part of the ' current asset ' mix. While banks might often be reluctant to finance certain inventory the asset based lender takes another approach, preferring to determine market values of inventory and advance based on that assessment.

If your company is looking to explore business credit line options and alternatives via either a bank or asset based financing 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 needs.






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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS CREDIT LINE AND ASSET BASED FINANCING EXPERTISE


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

ABOUT THE AUTHOR:
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.





' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Special Loans & Bank Workout Relief - Exiting The Troubled Waters Of A Bank Breakup In Canada

Escaping The Bank Special Loan Workout – That Get Out Of Jail Free Feeling In Business Financing

OVERVIEW – Information on exiting a special loans category when your business credit facilities are terminated by Canadian chartered banks. A bank workout has various exit options

Special loans is of course the name for your company’s relationship breakup with your bank, and Neil Sedaka had it right when he penned ' Breaking up Is Hard to Do!

How can business owners successfully emerge from a bank workout scenario and what options are available to do this? Let's dig in.

We've always been a little bit amazed at the surprise of some clients who advise us they didn’t see it coming relative to having their bank facilities called. Suffice to say that the implications of this 'relationship termination ' can be significant for your business if not attended to in the proper manner.

From the banks perspective it's a simple case of your company being deemed over and above the risk level they are prepared to take in an ongoing bank relationship that might have both revolving and term facilities in place for your financing needs. Typically your firm has not met the loan covenants and ratios established by the bank at the outset of the relationship.

The critical part of your Special loans journey involves any deadline set by the bank. Here it's important to determine whether the bank exit strategy is ' immediate' or if they will work with you on options that can ultimately save the relationship. The bank is of course interested in full recovery of any loans or credit facilities, so the critical question becomes: Can this relationship be saved or are other financing options available?!

We've used the word relationship a number of times - it's important to mention that your old account mgr and branch will often be disappearing at this point as specialized ' workout ' managers are now handling your banking.

We've worked with many firms who are in Special Loans and spent numerous amounts of time in seeking other Canadian chartered bank facilities to replace the stress of their Special Loans scenario. We have rarely seen this strategy be successful, if ever, if only for the fact that we're of the opinion that competitive banking is not achieved by buying someone else’s problems!

At this point never has it been more important to assess the assets and collateral your business has. We'll mention also that the bank workout managers will typically ask you to be reporting more on key asset categories such as receivables, inventory, payables, etc. In certain cases if your business is of a certain size expensive audits and appraisals will be required by the bank, at your cost. This is a great time to determine what you feel your future financing course will be, if only to avoid these high fees.

At the heart of the bank workout is your determination as to whether you in fact need to move on to another method of financing your business. In some cases if it hasn’t been made perfectly clear your bank might be viewing your entire industry as ' out of favor ‘. Over the years industries such as auto, printing, etc have found themselves to be deemed ' high risk ‘.

Various options are in place for new financing for your firm. Most typically they include new ' NON BANK ASSET BASED LINES OF CREDIT ' from commercial lenders who are focusing on your assets and business prospects. In certain cases temporary asset bridge loans might make sense, providing an interim step to a new finance strategy.

If you're looking for options and that ' getting out of jail free' feeling via your current situation in a bank workout special loans scenario seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can provide options in the troubled situation of your bank breakup .


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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN SPECIAL LOANS EXIT FINANCING EXPERTISE


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 '

ABOUT THE AUTHOR:
Stan has over 40 years of business and finance executive experience. He has been recognized as a leading credit/financial executives for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






Stan Prokop

Financing Sred Claims In Canada : Your Explainer On The Shred Tax Credit Loan

No Optical Illusion : Your Sr&ed R&D Tax Credit Refund Just Turned Into Cash : Here’s How

OVERVIEW – Information on financing SR&ED refunds in Canada. Financing SRED claims via a ‘ shred’ tax credit loan enhances valuable cash flow acceleration , allowing businesses to put funds to any general corporate purpose

Financing Sred claims in Canada often seems to require an ' explainor ' for numerous firms we meet who either didn't know a ' SHRED ' tax credit loan is available, or, equally generating curiosity... how is such a refund financed. (Spoiler alert: Financing SR&ED claims couldn't be easier) Let's dig in.

Yes, correct... its no ' optical illusion ' .Those funds that just arrived in your company's business bank account are the proceeds, today, for your refund you have been waiting... and waiting for. Finally this federal tax incentive makes more sense than every, and the ultimate benefit of the program - the cash flow refund is enhanced by the financing of your claim.

It should be common knowledge that Canada's ' Scientific Research and Experimental Development Program ' (aka ' sred' 'sred' ' sr ed' ' shred' ) benefits private non pubic companies of any size - from start up to large corporation. It's probably obvious to all that the cash flow generated from the SR&ED refundable tax credit is probably a bit more important to early stage firms, who often rely on this cash refund as a major component of their financing, and R&D commitment.

You of course maximize these claims for qualified expenditures typically with the assistance of qualified SR&ED consultants who have the ability to format and help file your claim under current guidelines. Though not a key factor suffice to say that the quality and reputation of the SR ED consultant you engage is one ' positive check mark ' in financing your claim , as their reputation simply enhances the probability of a full refund .

So let's circle back to the actual financing of your claim. Three key things to keep in mind:

1. You should probably only consider financing your SHRED Credit if there is a need for funds. If you have no reason to accelerate cash under the program why would you take on a short term obligation? If you are filing late, or require financing for next years R&D issues like that make it a positive consideration for a SHRED Loan.

SRED loans are bridge loans, short term in nature, that collapse as soon as the govt issues your refund cheq. Loans are typically 70% of the value of your total fed/prov refundable credit, and no monthly payments are made for the duration of the loan. Recipients receive the balance of the refund, i.e. the other 30%, less financing costs, when the govt remits your refund.

The main collateral for the loan is of course your actual refund credit.


2. Timing - most firms should be able to get a strong sense (via consultation with their accountant/CRA advisor/Sr ed Consultant) as to the timing of their claim. If you determine that refund might take months or in some cases the better part of a half year/year that’s when financing might make most sense from a cash flow needs perspective. It's all about putting funds to use today as opposed to waiting!

3. Dealing with the right lender. SR ED is niche financing and it makes sense to deal with a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can ensure your financing requirements are met.

There’s your ‘ explainor ‘on the merits, issues, and mechanics around financing SR&ED refundable credits in Canada.


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 100 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN SHRED TAX CREDIT LOAN EXPERTISE




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




ABOUT THE AUTHOR:
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Mezzanine Finance Solutions : The Powerful Persuasion Of Unsecured Cash Flow Financing

Why Mezzanine Financing Might Be Right ( Or Wrong ) For Your Firm

OVERVIEW – Information on mezzanine financing in Canada . When do ‘ Mezz ‘ bridging finance solutions work, and when are they wrong or unavailable for your firm

Mezzanine financing offers a unique allure to Canadian business owners/financial managers that seek additional capital for their firm. However in certain cases this type of finance solution is potentially either wrong for your firm, or, in some cases simply not attainable. Let examine what we call the ' powerful persuasion’ of the bridging finance capability of ' mezz ' and see when it works, and when it doesn't... Let's dig in.

Some of the key uniqueness of Mezzanine solutions revolves around the fact that it has unique elements of debt and equity - rare or non existent in almost all other financing solutions you might be looking at. This is because it's a ' 2nd position' financing that stands behind any secured lenders that might already by in place.

The other persuasive argument around this solution is the issue of collateral - essentially there is none, other than our aforementioned 2nd position on assets. Another key item is the fact that other secured lenders tend to ' love ' your mezzanine finance scenario if only for the fact that it is treated as ' equity ' on the balance sheet by secured/term lenders/lessors.

If the allure of ' MEZZ ' is that attractive how easy is it to get approved. Companies that are traditionally candidates should have attributes in the following areas:

- Established business
- Operating in a viable industry
- Good candidate for growth

Above and beyond those ' attributes' is the requirement for historical, present and future cash flow generation

that shows ability to service the unsecured mezzanine debt.

The minimum amount of financing done in this area is typically $1,000,000.00 and that clearly is on the small size. Larger deals preferred! In some, but not all cases the lender will also ask for a future equity position in the firm, which owners must certainly consider as a factor in considering this method of finance. Top experts advise that firms can usually expect to receive ' mezz' financing at least 1-3 times its cash flow - although clearly amounts will vary.

Any type of debt, secured, or unsecured (Mezz) will inject a certain number of ratios or covenants into the financing. These typically focus around debt to equity, cash flow coverage, etc, but in some cases might even limit your firm to what it can spend and how re Capex or shareholder compensation/dividends.

We haven’t mentioned the ' cost of financing ‘. Suffice to say that borrowing rates for mezzanine bridging finance will typically always be in the ' teens' which reflects the risk a 2nd position lender takes on transactions such as this . Owners/managers typically benchmark this financing cost against other options such as issuing equity which is of course even more expensive.

Is mezzanine bridging finance right for your 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 business finance options.

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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN MEZZANINE AND BRIDGING FINANCE EXPERTISE


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 Finance Sources In Canada: Tragedy Free Funding & Loan Solutions

Experiencing That All Talk And No Action Feeling In Business Financing Needs?

OVERVIEW – Information on how Canadian business owners can address the need for financial solutions via loan and funding needs. Business finance sources have evolved into two channels, traditional and alternative . Which one makes sense for your firm ?

Business finance sources in Canada , when it comes to various types of loans and funding can easily leave owners/financial managers with that feeling of a ' lot of talk and no action' relative to their particular situation . Rather than view this as a ' tragedy'

in the making isn’t it good to know that currently choices for financing your business have never been better, and there are some solid reasons why! Let's dig in.

A recent (U.S.) stat indicated that banks are currently funding 2 in 5 requests for business credit as it pertains to the small and medium size lending space. Suffice to say that many non bank lenders and commercial finance companies and lease companies are approving many more transactions as a percentage of applications than that.

Bank credit of course is the lease expensive and most flexible for those firms that qualify. That, coupled with the strength and dominance of the Canadian banking space makes it a great place to borrow for qualified applicants that can demonstrate good balance sheets, profits, and cash flow. There's no question that the bank ' cash flow tap ' is on these days to qualified borrowers. Challenges here include finding the right banker and ensuring your firms’ company/industry needs are understood.

Our firm has observed on many an occasion that many borrowers stay with their banks and low rates even at the cost of not having all the capital they need simply because of the higher cost of alternative business credit.

These exists though a large gap in the number of business borrowers to need an ' alternative market ' when it comes to borrowing needs. That has given rise to a very robust non bank industry that typically provides for higher borrowing costs but provides greater access to capital. Those firms provide financing in areas such as:

Receivable finance

Inventory Financing

Equipment financing/leasebacks/asset based bridge loans

PO/Contract/Royalty type finance

Business credit lines based on business assets - ' ABL’

Refundable tax credit financing

Franchise loans

Unsecured cash flow/mezzanine loans

Also, we often meet firms , either start up, or established already that are unaware of the Govt Guaranteed Small business loan, which provides solid financing terms and structures for asset purchases ( new and used ) as well as leasehold improvements .

These solutions are available everyday and provide millions everyday in liquidity access to Canadian borrowers needing capital.

Business owners/financial managers can do a tremendous amt before borrowing heavily from either traditional or alternative lenders. Staying focused on business planning, cash flow mgmt, current asset turnover ( a/r and inventory ), as well as prudently managing payables all can reduce the amount of short term borrowing you need . The latter, i.e. managing vendors is a tricky slope as it requires that key relationships be maintained with suppliers that are critical to your business.

All the finance solutions we have mentioned are typically shorter term in nature - you will notice they match 'assets ' to short term cash and loan solutions. That's a winning strategy.

If you want to change that ' all talk / no action ' feeling on Canadian business financing needs 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 ' tragedy free' financing solutions that makes sense for you needs today and in the future .



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 100 Million $ of financing for Canadian corporations . Info /Contact :

http://www.7parkavenuefinancial.com/business-finance-sources-funding-loans.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
























Stan Prokop