Business Acquisition Loans In Canada : Simple Rules And Financing Options

Captain’s Log : Existing Business Acquisitions

OVERVIEW – Business acquisition loans in Canada . Information on financing options for purchasing an existing business

Business acquisition loans in Canada require some key considerations for those contemplating acquiring or merging with another company, not the least of which are purchase price amount. In the SME (small to medium enterprise) sector various financing options exist to consummate your transaction. Let's dig in.

Experts agree that a poorly executed purchase of a company often has the buyer too focused on price without planning around terms associated with the financing, as well as a poor focus on future sales growth.

While it's no ' cake walk'

around your finance options there does exist several key alternatives around successful finance execution of your purchase. Safe to say the global 2008-2009 financial crisis didn't help, with lenders such as banks changing borrowing rules on almost every aspect of their business, including mergers and acquisitions.







Your equity (aka ' down payment ‘) on the transaction will typically be in a large range of 10-50%. Ultimately the purchase price will depend on some combination of down payment / seller financing/bank financing/third party commercial financing company. It's safe to say that down payment/equity needs have risen over the last few years.


Anytime the seller chooses to participate more in your transaction (known as the ' vendor take back) your chances of total finance success increases. Note though that some banks and finance firms will also possibly view the seller take back as potential debt - it varies among lenders. Sellers tend to secure their ' VTB' typically with a promissory note of some type. A typical rate range is in the 5-10% area.

When it comes to interest rates and financing costs associated with business acquisition loans those will vary depending on what source of capital you choose - traditional or a commercial alternative lender.

If there was a ' perfect world ' ( apparently it isn't )

scenario around the target company that firm would have minimal or no debt , a solid asset base, and demonstrable past , present and future cash flows. Those are key areas that will drive your financing cost... and success. When those criteria are proven your transaction is an excellent candidate for Canadian chartered bank financing - if they are missing other sources of finance will often have to be considered.

A good way to look at your financing challenge around purchasing a business is to think of it in ' layers'. More often than not it might include several of those layers of capital. Here it's important to have a strong sense of value of the assets and how cash flow will be generated for debt repayment and growth of the business.

Firms with little or no assets can still be financed if they have receivables, cash flows, or both. More often than not these are ' service based' firms. One can assume that unsecured cash flow loans are more challenging to acquire!

Many purchasers often forget the Government Small Business Loan as a source of finance. The one limitation is the maximum loan amt., which is 350k, clearly defining the size of the transaction that it can successfully complete. Nevertheless it’s a solid alternative.

What then are the key sources for financing options for your acquisition? A summary is:

Canadian chartered banks
Government Crown Corporation Bank
Govt Small Business Loan
Asset based lenders
Specialty Lenders - receivables /inventory/ asset bridge loan solutions
Cash Flow / Mezzanine finance solution

At the end of the day a well thought out financing strategy will help your chances of success in getting a solid deal structure in place. 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 identifying financing options for a merger or acquisition strategy.


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 ACQUISITION 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 start ups 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

Cash Flow Problems In Business Finance : Eliminate That Flying Blind Feeling

Looking For Some Positive Disruption In Your Working Capital Solution Needs ?

OVERVIEW – Information on solving business finance cash flow problems in Canadian business. Financing solutions for working capital is all about recognizing the problem and sourcing the right solution before it’s too late

Business finance and the challenges that come with financing your company can easily make the business owner/manager feel like he or she is ' flying blind’. So when it comes to cash flow problems business owners would welcome some ' positive disruption' in their finances. Luckily a number of solutions, as well as mgmt techniques can help. Let's dig in.

' All tied up ' is really a solid expression for the working capital/cash flow challenge - if only for the reason that your investment in inventory and receivables is in fact tied up on you balance sheet - as opposed to those funds being in your bank account

Top experts tell us that working capital performance varies greatly between SME (small / medium sized businesses) firms and larger corporations. It's interesting that one way that larger firms improve cash flow is by using the clout they have with clients to delay payables - which is a key factor in improving cash flow!

It's important you have a handle on a few tools that help you measure cash flow performance and needs, as well as identifying times that external financing is needed. That financing for your cash flow needs can come from a variety of traditional (Canadian chartered banks) and ' alternative ' sources. Those sources include:

Invoice Financing / Factoring/ Confidential Receivable Financing

Working capital term loans

Non Bank Asset Based Busines Lines of Revolving Credit from Commercial Finance Companies

Financing Refundable Tax Credits

P O / Contract / Sales Royalty Financing




While alternate forms of financing will always cost more they provide the capital you need to fuel your business.

Using Confidential Receivables Financing as an example a business can access 90% financing on its total receivables. With proper collection processes in place this puts cash in your bank today. The higher cost of financing can be significantly offset by using that cash to take vendor discounts or negotiate better pricing, as well as giving the owner/manager confidence that they can take on more business without the dreaded cash flow problem worries that come with growth.

Naturally every industry is different relative to cash needs - service businesses for example are less capital intensive and typical financing needs revolve around receivables only. Larger mfg firms need full blow business credit lines to cover off inventory and other asset needs. Leasing assets is a great way to offset the cash flow investment required to facilitate asset growth.

The bottom line? No matter whether your firm is a start up, SME rising, or larger corporation it's important to ensure you've got access to some ' positive disruption' in cash flow needs. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success , avoiding that flying blind feeling in running and growing your business.




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 CASH FLOW 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

Business Loans : Playing Catch Up With Capital Funding Solutions In Canada

To Do : Check out Business Loan Alternatives In Canada







OVERVIEW – Information on business loans an alternative financing solutions in Canada . Solving the quest for capital and needs for Canadian business owners from start up to high growth

Business loans and capital funding
for Canadian business is often ' top of mind ' for owners/financial managers in the SME sector. But what are the differences in types of loans, and, even more importantly, is a loan really the solution to your financing need. Let's dig in.

Borrowing for that ' loan always conjures up Canadian chartered banks as a possible solution to your financing needs. Business people tend, for some reason, to view the bank as their ' supermarket ' for financial needs .However banks are very reluctant to finance start up or newer businesses without collateral. Remember also that when it comes to equipment and other asset needs (i.e. technology, etc) equipment lease financing is a very solid alternative. No or minimal down payments and favorable amortizations make leasing the chosen provider for almost 80% of all businesses in North America.

Let's get back to that 'start up ' or early stage company need. One area the banks do come through on is the Government Small business guaranteed loan, which has Ottawa guaranteeing a large portion of your loan to Canadian banks who participate in the program. Each year billions are funded via this loan.

For businesses that invest in R&D thousands of firms take advantage of the SR&ED refundable tax credit program. Your SR&ED credit can also be monetized in the form of a bridge loan, eliminating the waiting period for your refund.

Another reason for popularity of this program is that it only finances two asset categories - equipment and leaseholds. Typically leasehold improvements are very hard to finance, ergo the popularity of the Small business loan. Although Cdn business tends to associate ' government ' with red tap and delay there is NO direct contact with the govt - its all done via your bank.

Many businesses are profitable, growing, and sometimes a combo of both. While owners/financial managers associate finance needs with a ' loan ' in reality they should be looking for a business line of credit that satisfies working capital and daily cash flow needs. It's important to know the difference between loans and asset monetization!

Alternative or ‘non bank’ lenders offer multiple solutions for ' loan ' needs. These financings include bridge loans, tax credit loans, and asset based business credit lines that work just like a bank facility - in fact they almost always are more generous when it comes to borrowing power. They also move... quickly! Additionally non bank and alternative lenders are open to taking on more risk, which of course means a higher cost of borrowing.

Looking to waste some time? You then must be one of those business owners /mgrs who focus on equity or venture capital. The hard reality is this type of financing is probably only suitable for a couple thousand businesses in Canada, if that , among the millions of small and medium sized businesses. However, if you're able to demonstrate hyper growth and unique products and services an equity investment is possible, although it’s important to remember debt in the form of loans is always cheaper than giving up ownership in your business.

Companies that have strong sales and purchase orders or contracts can also take advantage of PO Financing or Sales Royalty finance solutions. These monetize sales, and when you've generated receivables these can also be financed without the necessity of taking on debt via a ' loan '.

If you're looking to get properly ' caught up ' with business loans and the different types of capital and funding available to your business seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you take that one of your ' TO DO ' list!


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 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

Business Finance Sources And Commercial Financing In Canada Canada : High Stakes And Higher Rewards

Business Financing In Canada : Let’s Play Ball

OVERVIEW – Information on business finance sources in Canada . Commercial financing has more baseball similarities than you might think !

Business finance sources in Canada are quite akin to some solid baseball analogies. While that might be missed by some consider the following -

Stepping up to bat

Getting to first base

Rounding Second

Home Plate = Success

Sliding into home plate

highlights the risk and yes, high rewards of financing achieved properly.

Commercial financing still presents a huge challenge to firms all the way from start up growth in the SME sector. Let's explore that analogy, allowing your company to ensure its one of the ' good players'. Let's dig in, or should we say ' let's play ball'

Unlike many sports that allow you to practice and get it right many poorly chosen business financing options can quickly take you down the wrong road. At the same time though preparing properly for the financing you need
is in act a key ingredient to business survival and success.

So... stepping up to bat ... If your firm is either in start up , or early revenue phases your ability to explore the right funding options is ' job 1 ". Options for start up rarely include talking on any form of debt, so typical initial financing includes:

Owner equity
Asset monetization - Receivable Financing / SR&ED Tax credit loans
PO/Contract financing

The one solid exception to ' debt financing' for Canadian start ups is the Government of Canada Guaranteed Small Business Loan - aka the ' SBL'. It is available without external collateral to owners/entrepreneurs who have reasonable personal credit history (i.e. Credit Bureau Score = 650+) and does a great job of financing new and used equipment needs, as well as leasehold improvements. Spoiler alert - rates and structures are very attractive and flexible

Trying to get to first base? As your firm gains business ' traction' you're in a position to take some real ' first steps ' in debt financing and asset monetization. These solutions include:

Commercial Bank Financing

Receivable Finance (Factoring, Confidential Receivable Financing)

Asset based 'on bank' business credit lines

Equipment Financing

Working Capital Term loans

Preparation for any of the above finance solutions should include up to date financial statements , aged summaries of a/r and a/p, and , equally as important, a realistic cash flow forecast. Note - Hockey stick unrealistic projections need not apply!

Rounding Second Base? This is always a critical time for business finance choices. Your firm might be in high growth mode, and may well want to entertain finance solutions such as Mezzanine cash flow finance. Alternately your firm may be experiencing severe challenges and may well have to address the need to change from traditional bank type financing to alternate lenders who are willing to take that extra risk. Here things like debt levels, CRA obligations, or the need to ' right size ' your business is key.

The home run scenario:

Canadian businesses that hit home runs have done their best and succeeded relative to financing challenges and mastering the unexpected problems along the way. Unfortunately business is never about just ' one swing of the bat ' for a home run, so if you want to ensure reaping the high rewards of a properly financed business at all times seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can ensure ' strike outs' are kept to a minimum and chances of business survival and success are maximized. Batter up!

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

Financing Tax Credits In Canada For Sred And FILM And Digital Media : Showing You The Money

Sred & Film Tax Credit Financing In Canada : Your Share Of The (Boodle, Clams, Dinero, Gelt, Kale, Lettuce, Lolly, Moolah, Pelf, Shekels, Simoleons, Wampum, Loot, Dough, Bread, Cabbage, Sugar, Scratch ) Money !

OVERVIEW – Information on financing refundable tax credits in Canada. Bridge Loans for Sred and Film and Digital Media Credits access critical cash flow you need today . Eliminating the ‘wait factor’

Financing refundable tax credits in Canada (sred / film / digital media)
continues to be immune from the recent front page headlines in Canada's busines press. Those headlines ' screamed' that (in the case of SR&ED) those generous R&D tax credits were in ' crackdown ' mode from Ottawa.

The actual title of the article was ' Ottawa's Generous Loans... Crackdown' and focused specifically on Canada's SR&ED program , which is one of the most generous and poplar 'subsidies ' in Canadian business . From our perspective the term ' loans' is a misnomer, business actually only receive a refundable tax credit. It's of course your decision to finance that refund instead of waiting for it. Let's dig in.

Time will tell if there is in fact a crackdown' on the popular R&D program which provides billions to thousands of firms year in and year out. Some experts say that amount is currently in the 3 Billion $ range and has in fact been higher in the past. The program is clearly the largest business subsidy in Canada.

Canadian firms who access the program are keenly familiar with all the changes that happened in 2012, including streamlining the application process while at the same time limiting some of the key deductions.

Any SR&ED tax credit refund can be financed - it's simply a matter of ensuring you have a legitimate claim prepared by a solid SR ED consultant, those third parties that dominate the industry as it pertains to claim preparation. It certainly helps when your consultant is recognized as someone who can show your claim is not too aggressive and therefore not subject to challenge/audit.

Many firms in fact are challenging the govt on what seems like the new ' austerity ' of SR ED approval. The irony, as pointed out in the article is that the govt seems more focused on direct loans as opposed to R&D tax credits

FILM/DIGITAL MEDIA CREDITS:

Canadian Tax credits in film and digital media also have gotten their fare share of publicity lately. In Nova Scotia for example the entire program seems under attack- with the govt reducing the tax credit budget to 6 Million... down from 24 Million!

Again, while any film/media credit is financeable there seems to be less to finance these days! Naturally the debate always continues as to how much the govt and Canada as a whole benefits from jobs, economic activity from the entertainment industry. Ontario for example spends hundreds of millions on film/digital credits. These credits financed almost half of the film and TV budgets based on figures from a few years ago.

Film and TV projects in Canada are akin to our friend Sisyphus’ journey.

Producers must sell rights; produce their shows raise equity, finance print and media advertising, etc. Stats show that on a sample 300k TV show production almost 50% can be covered off by federal and provincial tax credits.

So while the debate rages on remember that any legitimate SR&ED and film tax credit is financeable. Typical financing is structured as a bridge loan to your company or project (in the case of film/media) for 70% of the total of your SR ED or film tax credit certificate.

If you're looking to finance film, sred, or digital media credits 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 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 SR&ED AND FILM TAX CREDIT 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

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