Alternative Financing Lending Companies And Loan Solutions In Canada : A Crash Course

The New Frontier : Why Canadian Business Is Turning To Alternative Finance Loans

OVERVIEW – Information on alternative finance lending in Canada . Companies requiring non traditional loans are seriously investigating alternate financial solutions

Alternative finance lending companies in Canada are often viewed as the new frontier in Canadian business financing. Offering loans and asset monetization solutions to the business owner/manager has helped fill the gap for businesses lacking the ability to access traditional bank capital. Let's dig in.

Both access to capital and convenience tend to be the hallmarks of why owners/managers in the SME Commercial sector turn towards this type of financing. Also the ability to explore numerous solutions via the internet certainly has helped.

The traditionally higher costs of this type of financing ( there are numerous types of ' alternative finance ' ) certainly is not the reason popularity has exploded - it can easily be stated that that alternative financing is often 2-4 times current bank pricing in Canada which is in the 3-5% per annum range.

Most business owners are keenly familiar with those bank ' algorithms' on debt service and cash flow ratios. While in many cases these same criteria are looked at by alternative these folks are more comfortable with collateral and sales growth. Another key point is that the 'alternate lender' product line is quite robust - It includes:

Factoring
Confidential Receivable Financing
Inventory Finance
Sales Royalty Finance
Franchise Loans
Asset based non bank business credit lines
Sale Leaseback/ Asset based bridge loans
Equipment financing /leasing
Refundable Tax Credit Loans

This provides borrowers with a wider range of solutions that in many cases can be combined to provide a full financing needs solution.

A careful review of the robust ' alternative lender' offering shows that these solutions are primarily ' working capital ' and ' cash flow ' based , allowing owners/managers to avoid the dreaded 'D' term - debt. The other observation we can derive here is that the alternate financing is more akin towards ' dating'... not ' marriage '... as these solutions tend to be short term in nature. In fact it's the goal of many companies requiring alternate finance is to gravitate back to traditional bank type solutions. No secret that bank financing costs and flexibility are most attractive for those firms that are approved.

Top experts in the U.S. maintain the growth in alternative finance lending companies is primarily due to frustration borrowers exhibit in application time and complexity when dealing with banks.

It should be mentioned that alternative financing is also very ' start up' friendly , although we advise clients they still need some ' skin in the game ' and reasonable personal credit history to maximize alternative lending success. Many clients we meet have ' CRA' issues which can often be solved with alternate financing paying out the CRA arrears, often impossible via a bank solution.

Both start ups and established firms can utilize 2 solid and recommended government solutions for financing. They include the Govt Small Business guaranteed loan, as well as Canada's ' SR&ED' program which allows for significant recovery of legitimate r&d expenses under the program rules . By the way you SR ED refund can be then financed as soon as it is filed... or even earlier.

Your 'crash course'

in alternative finance solutions can further be augmented by 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 loans and asset monetization strategies that solve your challenges .


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 ALTERNATIVE LENDING 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 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 Finance Solutions In Canada : Behind The Scenes In Commercial Financing Options

SME Commercial Financing Options In Canada Have Not Gone The Way Of The Dodo

OVERVIEW – Information on commercial financing options in Canada . Various business finance solutions both alternative and traditional are discussed from a viewpoint of need and applicability

Business finance options have Canadian business owners/financial managers often feeling that commercial financing needs for their business have gone the way of the ' Dodo ‘ that rare bird associated with disappearing and finally extinction. Let's examine finance options that help guarantee survival and success in your business, eliminating that ' broken ' feeling. Let's dig in.


The ability of your business to get banks and commercial finance companies 'on side' is one key factor in long term success and survival. Those success milestones might be around growing your business, buying a competitor, or simply meeting the challenges of working capital/cash flow finance.

In some cases your firm needs new assets while at the same time experiencing times of challenge. It's at these times staying in control of your finances and knowing your options is key. Let's consider some ' behind the scenes' loan and asset monetization options that will provide you with the right balance of debt and ownership.


Many clients we meet have access to some sort of finance power, whether it is traditional or alternative in nature. The problem? It's not enough! In the mind of the owner/manager the more the business sells the more capital it seems to need.

The common problem in what the experts call the ' cash flow gap ' is having your sales pick up but being unable to finance inventory and receivables that arise out of those sales. When bank lines of credit are not available due to bank lending requirements alternative solutions such as invoice financing and inventory finance take up the slack. The ability of the owner/manger to know that sales raise cash at the same time allows continued focus on growth/profits.

Probably the most complimentary solution to some of the challenges we have described is the Asset based non bank line of credit. Providing a line of credit that’s based on the total combination of your receivables, inventory and fixed assets becomes a new life line of your business. More often than not it's the perfect solutions to a cash flow crisis. That same ' ABL’ (asset based line of credit') is often the only solution to a ' turnaround' story when sales have fluctuated and profits disappear. Its asset leverage 101.

The other category of business we haven't touched on is the ' start up '. Simply speaking your expectations and needs in finance rarely match those of the bank!

It's at this time that alternative finance solutions such as factoring, SR&ED tax credit financing, leasing, sale leasebacks, etc make the most sense, notwithstanding their often higher cost of borrowing.

When owners/managers deem the ' organic ' route to growth is slow the right business finance commercial financing options can help complete the acquisition of a related business or competitor. This minimizes the equity component needed, while helping to guarantee a properly completing transaction.

If you're looking for those ' behind the scenes' options that come with business success 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 required solutions.



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 = BUSINESS 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

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

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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





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 Financing Plan Challenges : Solving The Commercial Loans And Finance Needs Conundrum In Canada

Here’s Your Clean White Canvas For Canadian Business Financing

OVERVIEW – Information on commercial loans and other finance needs in Canada. What the business owner/entrepreneur needs to know about the business financing plan challenge in Canada

Business financing plan
challenges rarely come with a ' clean white canvas' when it comes to options sought by Canadian business owners/financial managers seeking commercial loans or other forms of finance for their business. Let's take a ' start from scratch' viewpoint. Let's dig in.

The reality around the only two options for financing your business (debt or equity) still nevertheless provides numerous subsets of solutions within those two categories. In fact in some cases there are even ' hybrids' of those two financial choices.

So if you could start over in your financing options your understanding of where you business is in the spectrum - i.e. start up, early stage, growth, etc. is critical .Companies can burn through a lot of cash in the start up/r&d phase and those that can are encouraged to take advantage of Canada's SR&ED program if applicable. By the way, those R&D credits can be easily monetized via a Sr&Ed bridge loan, replenishing that much needed early stage cash flow.

Finance solutions for firms that are not yet profitable can also present a challenge. Although if you do have revenues those sales can be easily monetized via solutions such as A/R financing or inventory finance. Also large sales or contracts from legitimate clients can also be financed via P O / Contract / Sales Royalty finance solutions.

In some cases many Canadian firms focus on North American or overseas clients and markets. In some cases traditional finance solutions such as bank lines of credit or A/R factoring will in those scenarios require some form of credit insurance on your client base.

Debt financings suggest ' secured financing' via hard assets/term loans, etc, while some business owners prefer to ' chase ' solutions such as ' angel investments ', reverse takeovers of public companies or ' shells' or the proverbial (and somewhat elusive ' venture capitalist ').

Let's not forget the ' Government '. Along with the SR&ED program that we mentioned there is of course the Government guaranteed Small Business Loan providing financing (maximum 350k) for thousands of businesses in Canada at attractive rates and structures.

Where do many owners / managers requiring SME COMMERCIAL FINANCE solutions miss the point when they try to access traditional financing? One is simply understanding the focus of traditional lenders such as banks. Their focus? Profits and sustainable cash flow! Their fixation with your ability to paying their interest and principal is... focused! When no additional collateral can cover their preoccupation with cash flow and loan servicing it is unlikely you will get bank/traditional financing.

The good news? That ' clean white canvas' we've been talking about can deliver other forms of accessible financing - they include:

Non bank Asset based ABL business lines of credit

Lease/sale leaseback / asset bridge loan finance

Working capital solutions including Factoring/Confidential Receivable Financing/Inventory finance

If you're looking for a ' start over' strategy that works in your business finance needs seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you solve the Cdn. business finance conundrum.



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 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 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

Sred Tax Credit Financing In Canada : SR ED Loans Solve The Refundable Credits Waiting Game

No Grain Of Salt Required ! SR&ED Bridge Loans Work

OVERVIEW – Information on SRED tax credit financing in Canada . SR ED loans accelerate the benefits of Canadian R&D capital investments made for processes and products under Canada’s Scientific Research and Experimental Development ( aka ‘ SR&ED ‘) program.

Sred tax credit financing in Canada (SR&ED) , we maintain, comes with a ' no grain of salt required ' statement attached to it. Most business owners/financial managers would agree that a lot of advice / information/sales pitches they received must in fact be taken with ' a grain of salt ‘! Yet the thousands of firms that take advantage of SR ED loans in Canada have proved that cash flowing their refundable tax credits in Canada's ' SR&ED ) program becomes the final benefit of participating in the program - receiving your cash refund earlier! Let's dig in.

The general nature of Canada's R&D refund program allows companies in any industry to participate. (However they must be privately owned, not ' public' firms). The incentive to recover your cash after the whole SRED process is appealing to thousands of firms who receive billions of dollars in refundable tax credits (aka ' cash ‘! ) based on an ever more simplified application process.

‘Processes’ and ' Products ' are the heart of most of the r&d under the program. SR&ED consultants are the most commonly used third parties who document the costs and activity of your R&D process. They augment the role of your accountant who typically files the claim with your year end tax return - At that point you're ' crystallizing ' your SRED receivable.

While companies choose different accounting treatments to document their SR&ED claim in their financials (‘govt receivable ‘refundable investment tax credit' etc ) the commonality is that you're now in a line up in the whole SR ED process Vis a vis receiving funds.

SRED tax credit financing helps immediately monetize your recovery of wages/materials/ contractor costs etc that are a part of your whole research and development process. We meet clients who have claims ranging from 50k to 1 Million dollars or more. In some cases the cash monetized via your SR ED bridge loan is a critical part of the firms annual cash plan needs. Since the majority of SR&ED claims in Canada are prepared by third parties who work on contingency the financing of tax credit loans makes even more sense - no cash outlay to prepare your claim and no monthly payment for the duration of your waiting period for your refund. (These loans have no monthly payment - they are short term ' bridge ‘finance’)

Business owners/financial managers we talk to are focused on accelerating their claim - that includes the use of a good / experienced SRED preparer, timely filing of their claim, and the choice to finance your credit refund if cash is needed by your firm.

If you're looking to finance your refundable tax credit and eliminate ' waiting ' for your refund seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with discounting your claim for cash .. today.


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 SR&ED TAX CREDIT LOAN 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 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

Factoring Finance Companies : A Smarter Way To Evaluate AR Receivables Financing Solutions

7 Key Considerations For The Right A/R Financing Solution

OVERVIEW – Information on A/R Receivables credit solutions in Canada . Factoring finance companies offer different ‘ flavors’ of AR Financing . What does the business owner /financial manager have to consider in picking the proper solution?

AR receivables credit solutions
come in a variety of manners and offered by a multitude of new and established ' factoring ' finance companies and other commercial finance companies in Canada. There are 7 key considerations in picking the optimal solution for your firm - utilizing these solutions is a smarter way to ensure you have properly evaluated financing that is right for your firm. Let's dig in.

A/R financing is all about financing you need for your daily cash needs. As opposed to a bank ' interest rate ' on your borrowing a fee is charged. Using a 10,000.00 invoice as an example a typical fee would be in the 150$ - 200$ range. (Assumes you sell on 30 day terms and are collecting from your clients).

While a factoring finance fee will almost always compute to a higher cost of borrowing vis a vis a bank ( it's not a real apples to apples comparison ) A/R commercial factoring facilities have a more generous borrowing power ( typically 90% ), plus you are achieving the key benefit of receiving cash as soon as you make a sale.

The truth is that pricing from Canadian factoring companies differs greatly, notwithstanding that some of the key fundamentals remain the same - i.e. size of your monthly sales/ client credit quality, age and collectability of your client invoices, as well as any ' special ' services provided with the financing. Some firms actually require you to finance all you A/R, which to us seems like an unfair option!?

It's critical to remember that this is not a loan per se, and it's certainly not equity financing. Bottom line its cash flow financing based on your sales. In meeting clients and discussing this finance option we compare it to a retailer who offers credit card payment options - the retailer is paid immediately by the credit card firm.

Let's circle back to our 7 Key Considerations in choosing among factoring finance companies:

1. Responsibility for Bad Debts - Care needs to be given around whether your firm is still responsible for uncollected accounts - this issue also is a component of your overall pricing

2. Client profiles - Issues for discussion typically should include type of clients, geographical location

3.Number of Invoices issued per month and overall Days Sales Outstanding Profile - smaller invoices typically cost more to administer in an A/R finance solution , Also your ability to prove you collect accounts effectively will absolutely lower financing costs

4.Annual financing volume - As in any industry some firms only prefer financing receivables when annual volume is at least several million dollars in revenue ; a normal monthly entry point is typically in the 250K range from a monthly A/R total balance


5. Specialized Knowledge - While Commercial factoring companies offer financing to any firm that sells on business credit a handful of firms are focused on specialized verticals, giving them a higher level of expertise in understanding your business.


6. Systems/software/ online solutions - There is substantial ' back office ' work in processing your daily / weekly or monthly funding needs. Ensure your chosen partner has the systems and people expertise

7. Collections -

In our humble opinion this could clearly be one of your main considerations. While for decades 99% of all factoring in Canada involves notification to your clients many business owners/finance mgrs don't realize an alternate solution exists. That solution? Confidential Receivable Finance! It allows you to bill and collect your own accounts with no notification of any kind to clients.

If you're looking to assess a proper AR Receivables solution for your cash flow needs and don't have the time or expertise to walk the minefield of factoring finance companies 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 you in evaluating and implementing a proper finance facility for 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 = CANADIAN A/R FINANCING & FACTORING 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 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

Turnaround Restructuring Financing In Canada : Constructing Your Restructure Loan Process

Surviving And Winning With Turnaround Financing In Canada

OVERVIEW – Information on the turnaround and restructuring financing process. For success a restructure loan process involves numerous key concepts outlined herein

Turnaround restructuring financing in Canada is a classic ' survival ' strategy to fix... save a business. Numerous key aspects to the loan/borrowing process will help you construct the right solution. Let's dig in.

There no time more than in a ' turnaround ‘when confidence is needed in the view of any commercial lender. Simple basic concepts such as a realistic cash flow forecast become more important than ever. That cash flow forecasting, along with your ' plan ‘allows you to survive in the short term and plan for intermediate/long term.

In some cases your firm might be in that dreaded category of ' Special loans' at a Chartered bank. Here day to day cash will be managed both by yourself and your banker. In many cases we see clients are at the absolute top of their credit facility with no additional borrowing power in sight. Here is the time that most businesses must consider alternative financing as new business credit from existing banks/lenders is near impossible.

There are numerous, shall we call them ' non financial' attributes to owner/mgmt behavior in a turnaround. These include:

Mgmt depth/experience
Evidence of financial controls/ability to produce required information
Ability to work with new lenders/advisors

In the majority of turnaround cases new commercial lenders will replace current secured creditors. Never has there been more importance at this time to ensure assets are properly valued. These typically almost always fall into the categories of inventory, receivables, equipment and occasionally real estate. Various non financial assets might also play a role, i.e. patents, contracts, etc.

A large majority of turnarounds loans are in the category of ' ASSET BASED LENDING ‘, Your firm and the lender will focus on present assets and asset growth that will also demand more interim financing . Example - financing to cover off growth in sales/working capital requirements.

When constructing your turnaround process you can also assume that in some cases there might be more than one lender. Other lenders might include equipment financiers, A/R financing firms , bridge loan specialists, real estate lenders, etc .This whole process involves ' carving out ' specific security for specific specialized lenders.

As we have hinted the turnaround financing process has different timelines attached to it. Short term survival must be balanced by long term re-growth of your business. Suffice to say in the short term cash is king... controlling and managing it! Issues such as collecting receivables on time and focusing on payables mgmt are key. It's all about asset turnover of A/R and inventory. If vendor / supplier relationships are key to your success before they surely should be top of mind now.

In certain cases it also might be prudent to sell non core assets - this might be real estate or equipment. Naturally no required operating assets should be sold! While owners might be reluctant to pledge new outside collateral in some cases that comes under discussion.

If your firm requires ' turnaround ' expertise in any aspect of its business financing seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your restructure loan process 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 TURNAROUND 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 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