Acquisition Financing Options In Your Business Purchase Options In Canada

Financing Is the hidden connection to a successful business purchase or acquisition

OVERVIEW – Information on acquisition financing options for Canadian firms considering business purchase or mergers

A business purchase in Canada has to come with some acquisition financing options for entrepreneurs and business people. And for those options the more the merrier and creativity is certainly welcome. The right financing at terms, rates and structures is really the hidden connection to a successful purchase/acquisition. Let's dig in.

Bank financing is often the typical first choice among purchasers, but accessing this type of capital comes with certain criteria that sometimes can't be met. Firms in the small to medium sized market place are often underserved when it comes to acquisition finance options. More about some of those bank criteria later.

So, those other options? One of those is ' seller finance' - allowing the owner to participate in the actual business financing. Naturally owners must be both motivated and able to participate in such a transaction.

Cash flow or ‘mezzanine' type finance is another option when bank ' senior debt ' can't be arranged. It is in effect unsecured business financing, allowing you to rely on the cash flow, and profit margins of the business to pay back the loan which is typically 3-7 years in length. Here it's critical to demonstrate that those cash flows we require have been there historically, now, and in the future!

When both the seller or cash flow financing is not possible another solid source of purchase finance is 'Asset based lending'. This type of commercial lender will focus solely on the existing balance sheet of your business - and those assets of receivables, inventory, and fixed assets - as well as real estate if applicable. Be mindful also that there must be enough assets left over to also enable you to have operating working capital.

The strongest and most common ' sub set ' of asset financing is Receivables finance. A credit line against receivables provides solid liquidity.

Back to those bank criteria we've mentioned already. Although there is a lot of truth in the fact that banks prefer larger merger and acquisition activity they are certainly willing in the current competitive banking environment to service merger and acquisition transactions in the SME COMMERCIAL FINANCE area.

Buyers should be well warned that certain financial ratios and covenants around cash flow, debt to equity, etc will always be on the table with the bank. You can almost pre-quality yourself by spending some time determining if cash flow of 1.25:1 and debt to equity of 3:1 are in fact achievable under your finance plan. Here owner equity to some level will again, almost always be required.

Banks recognize that transactions financed properly help the new business to be stronger and more successful. That includes being able to eliminate other competition, achieve economy of scale, as well as grow the business geographically or with new products and services. A strong business plan with conservative clarity around growth, profits and cash flow is clear here.

Being able to negotiate the right price is as important as funding your business properly - many owners/mgrs/entrepreneurs will need help in the different valuation techniques employed by those ' big boys' on Bay Street.



Poorly informed purchasers around financing, valuation, and creative alternatives are almost certain to fail. If you're looking for proven financing techniques in a business purchase 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 ensuring you are not in ' no mans land' when it comes to buying a business in Canada.



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 BUSINESS PURCHASE 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 Bridge Loan Finance : Your Masters Degree In How To Actually Get Your Refundable Research Development SR ED Credit Filed And Financed

Is Your Company The ‘ Wrong Way Feldman’ Of SR&ED Claim Filing And SR ED finance?

OVERVIEW – Information on the SRED Bridge loan. The refundable Research Development SR ED Credit recoups r&d capital and accelerates cash flow

A SR&ED Research and Development Tax Credit absolutely doesn't require a masters degree to successfully file, or finance the claim. How then does the whole process work, and when it comes to receiving your credit or financing it via a SRED Bridge Loan can you avoid being a ' Wrong Way Feldman'? Let's dig in.

Wrong way Feldman? He was a character on the iconic ' Gilligan’s Island' TV series - portrayed as being very incompetent. Quite a character, as a pilot he had fear of flying! (He once flew to New Orleans by mistake, intending to land in Minneapolis!)

So how do you avoid those ' Wrong way' moves in both the preparation and financing of your claim? ... Allowing your firm to receive your share of the billions in R&D credits annually. And by the way, to finance your claim is even easier when your filing and prep process are done properly. (SRED Bridge loans can often be successfully accomplished within a couple of weeks from start to finish).

The ability to recoup capital, i.e. the refundable SR&ED tax credit, while both staying competitive through improved products and processes is what 'SR ED' is all about .

What resources do you have at your availability to properly prepare and finance a claim? More about the financing later, but when it comes to filing a research and development sr Ed credit it's all about the quality of preparation. That work, almost 99% of the time is done by qualified SR&ED consultants - working in conjunction with your firm and your accountants re the year end filing process.

Typical claims capture the technical narrative and data as well as itemizing the expenses and costs relative to your claim - Typically 35-40 % of all your expenses are recovered under the R&D credit. We see clients claiming anywhere from 25k to $1,000,000.00 in refunds.

The end result of a successful claim? You receive a refund in the form of a cash return. However that whole process, depending on the gov'ts timing, as well as yours can take many months. Here's where financing your SR&ED credit might well make perfect sense - if only for the reason of generating additional cash flow for more r&d needs as well as daily operational and investment needs . (Your SRED refund, of the financing of the claim allows you to use the refund for any general company purpose).

SRED bridge loans are constructed to provide 70% funding of the total value of your claim. No payments are made during the duration of the loan, which can be prepaid at any time, or of course when the govt sends that final actual refund chq. It's also interesting to note that you can finance any or a combination of last years, this years, and next years claim! Talk about flexibility and access to funds!

If you're looking to be avoid being a ' Wrong Way Feldman" in research credit funding focus on the proper basics : Identifying eligibility, keeping careful track of your spend in r&d, working with a SR&ED consultant with a good reputation, and following CRA filing procedures.

And financing your claim ? Seek out and speak to trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you finance your claim and generate that immediate cash flow recovery.



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 SR&ED 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

AR Funding Via Selling Receivables Is A Solid Asset Finance Strategy .. Sometimes

Are A/R Financing Mistakes Leading To Bad Results ? Secret Tricks To Successful Invoice Finance

OVERVIEW – Information on selling receivables as an asset finance strategy for Canadian business. AR funding.. done right

Selling receivables via (A/R) AR funding is often a solid move as part of an overall asset finance strategy. But can this financing move lead to bad results? It only can, if done improperly. Here's our views on ' secret tricks'

to successful invoice financing when helping clients with the right moves in cash flow financing. Let's dig in.

Carrying receivables is one the largest liquidity challenges for any size business - from start up to major corporation. The (hopefully) profits locked up in A/R can contribute to major cash flow issues if not funded properly. By the way, it sure helps if you can turn those invoices into cash faster - with or without financing!

How does the ' traditional’ asset finance strategy of selling receivables work? The fundamentals are simple - it when we get down into the weeds that there are potential problems. A/R Funding is simply the sale of your receivables on an ongoing basis, for instant cash. It's interesting that advances on your A/R in this manner are even more generous than banks. (Banks finance 75% - the right invoice finance facility delivers a 90% financing.

Business owners/mgrs should not get caught up in security paperwork behind an AR asset finance facility. Similar to banking it collateralizes your receivables, and, very much like bank facilities places a blanket security on your firm. The right commercial A/R finance partner will always allow you to finance equipment, inventory and other needs separately.

What are the key factors in how a lender assesses your A/R portfolio? Typically they look at:

Non North American Receivables - Cdn and U.S. accounts are ok to finance

Typical amts and size of your invoices

Quality of your aged receivables - invoices over 90 days old can't really be financed




Why do businesses consider non bank AR Funding? Reasons include:

Faster approval for such facilities

Generally straightforward paperwork

Less reliance/emphasis on owner guarantees

Good quality receivables and your mgmt thereof ensure almost unlimited financing capability - you've turned your firm into a cash flow machine

General credit quality (often a factor of what industry you are in)

Commercial A/R financiers love high growth (banks don't necessarily ascribe to hyper growth, favoring stability in sales and finances)

So what about those ' BAD RESULTS ' when it comes to asset finance and selling receivables for a revolving credit facility need? Things can go wrong when you don't understand the higher cost of non bank A/R asset financing. Clients we initially meet are both surprised and confused around how various firms price these facilities.

Additionally many clients we meet don't fully understand this is often an interim solution - its higher cost with unlimited capital that more often than not takes clients back to a traditional finance solution.

The largest negative in selling receivables? Opinions vary but we believe strong that most Canadian business owners and financing mgrs don't like the ' notification' aspect which traditional A/R finance demands - i.e. advising your clients this financing is in place. Do we have as solution? Your bet! Consider a CONFIDENTIAL INVOICE FINANCE strategy, allowing you to bill and collect your accounts, all the while maintaining your client relationships while having access to unlimited funding.

So, is selling receivables a solid asset finance move? Speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your asset finance needs. It’s all about those tips, tricks and secrets for successful financing of your business.



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 ASSET FINANCE AND A/R 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 Financing In Canada : Outrunning Your Finance And Banking Needs

Are You On High Seas Navigation For Business Financing With No Road Map ?

OVERVIEW – Information on business financing in Canada. Understanding the critical need for commercial finance and banking solutions that make sense

Business financing in Canada might well have business owners/financial mgrs feeling like they are navigating the high seas... without a roadmap. Not recommended? How then does your company in effect ' outrun'

it’s needs, choosing commercial financing for survival and growth. Let's dig in.

Companies with stable and positive financials look to Cdn. chartered banks for their business needs. When banks can't/won't satisfy those needs other solutions are available- more about those later.

Businesses with SME COMMERCIAL FINANCE needs often face challenges in choosing a bank, a banker; our banks tout convenience and online services, etc but many businesses are unable to meet basic business credit line criteria.

‘Old School ' lending talked about the 4 C's of bank lending - character, capacity, credit, and collateral. While many of our clients have no problem passing' character ' they can't meet issues of collateral, proven cash flow, and credit history.

Enter... stage left...

non bank alternate financing sources! Is there a finance solution to the business line of credit that meets your needs? Those bank lines provide overdraft protection based on personal guarantees and financing against your sales/receivables - typically 90% of A/R value. For businesses with a history of profits and success it's low cost flexible financing.

When your company can't access bank financing top experts tell us that business owners resort to personal loans, collateral mortgages on their homes, equipment leasing, etc. There is one very solid alternative to the bank credit line - it’s the ASSET BASED NON BANK BUSINESS CREDIT LINE... aka the 'ABL' line.

How does the ABL work? In many ways it’s the ' low tech' solution to business credit. It takes your receivables, inventory, and equipment and packages them into one ongoing revolving business line of credit. Somewhat ironically the level of borrowing is actually more generous when it comes to margins on your receivables, inventory and equipment.

Are there some other solid finance solutions we haven’t talked about? One is internally available! Your ability to maximize trade credit from vendors is a valuable source of cash flow. Another solid solution is Equipment Leasing for fixed asset needs.

There is one other ' subset' of the asset based credit line - A/R Factoring. Paperwork around this type of facility allows you to cash flow your receivables at the same time you are generating sales. Our recommended specific solution in this area is CONFIDENTIAL A/R FINANCING... allowing you to achieve all the benefits of factoring while billing , collecting and financing your receivables.

If you're looking for some ' high seas navigation' in Canadian business financing solutions 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 banking and financing needs.



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

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 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

Business Cash Flow : Funding Your Business Via The Right Finance Solution

How To Get Business Cash Flow To A Constant Positive Hum

OVERVIEW – Information on business cash flow solutions . Finding the right funding to finance your firm

Funding your business properly is a key for all business owners/mgrs. How does then do we finance business cash flow to the point where we have the right financing in place to continue and grow the business? The goal? A constant positive hum in cash! Let's dig in.

A great way to think of cash flow is simply focusing in how funds move via your incoming revenues and outgoing expenses. Pretty basic, right? , but when profitable business can even fail when cash flow fails that ' pretty basic' statement becomes all important.

Having the right financing in place is of course only one solution to the challenge, albeit an important one. For start up or earlier stage firms that is all important; yet at the same time the wrong financing at the wrong rates and structures is also a double edged sword , especially when financing is secured by your key assets.

We're all for growing sales revenues, but when you over extend credit and are improperly financed problems quickly arise. Those challenges are most often solved by monetizing current assets - your A/R and inventory. Finance solutions available? They include:

Bank revolving credit lines
A/R Commercial financing
Inventory loans
Asset based non bank lines of credit (They combine receivables, inventories as well as fixed assets into one credit line)

Some alternative funding solutions for current assets include SR&ED tax credit financing, royalty finance, and PO financing.

Those above noted solutions keep cash flow ' humming ‘, keeping suppliers, lenders, and employees ' happy'.

Another potential major drain on our ' cash flow hum ' is the need to acquire assets to run your business. While the temptation from such ideas as ' pride of ownership ' has some business owners/mgrs purchasing assets outright that can be a huge drain on our cash flow hum. The optimal solution here, more often than not is Equipment Financing/Leasing. Financing assets from daily operations is rarely the right thing to do.

We'll also mention that for those firms that have inventories the key to inventory mgmt is solid asset turnover and maintaining the right levels of inventory - always a challenge!

A good way to look at the 'big picture' in business cash flow is to isolate the movement of cash into what you can call the ' constant daily hum' of regular selling and collecting, while assessing ' non regular' outflows such as asset purchases, seasonal bulges in your business, new or large contracts.

When you're looking at the putting the right lending facility in place for managing business cash flow seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can ensure you're tapping into the right financing sources for your... cash flow hum.


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 BUSINESS CASH FLOW FUNDING 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 Financing : Top Benefits Of Mezzanine Cash Flow Loans

The Basic A to Z Of Cash Flow Financing Via Mezzanine And Other Solutions

OVERVIEW – Information on mezzanine cash flow loans as a business financing alternative in Canada . ‘ Mezz’ finance and other alternatives are a solid solution to traditional finance needs

Business financing in Canada offers some alternate solutions not often considered by owners/mgrs. One of these is ' mezzanine' cash flow loans. We're covering the basics, an a to z approach, so let's dig in.

The one main requisite of unsecured cash flow finance, i.e. ' mezz ‘is positive cash flow. That cash flow, when structured properly, allows business owners/mgrs to consider growth options normally not achievable, as well as potential acquisitions of competitors. Often it's the key financing building block in a management buyout also.

The reason this method of business financing in Canada works so well? Essentially it's because it reduces the amount of owner equity or outside debt that is required to make your chosen strategy work. Given that ownership equity (or giving it up) is expensive the owners/mgrs strive to create a finance structure that gives them the most financing at the lowest cost. That ' blended ' cost of all their financing reduces overall interest rates.

Mezzanine cash flow finance is often considered as an alternative to a traditional banking structure. One way of looking at it is that it's a way to fund future growth that otherwise might not be funded until some future point in time when all those required bank ratios can be achieved. What business owner does not want to accelerate growth!

The key concept around ' mezz ' is that it's essentially unsecured lending; providing only a promise to pay by the owner with the normal secured required.

Why does the traditional banking solution not work when owners think they have the right mix of assets for a traditional bank type solution? The answer is that those assets are often ' discounted ' by the lender - receivables are not financed on a 100% basis, appraisals might not back up the book values, and in many cases firms these days have some significant intangible assets on their books, which are typically not financeable.

As we've stated business financing through mezzanine cash flow loans gives your firm a solid chance to grow - more quickly. These loans, when structured properly are matched to your actual cash flow repayment ability. An interesting point in the whole issue of ' mezz' financing is that the senior secured lender, typically ' the bank' will often view your mezzanine loan as in effect...equity.

These unsecured cash flow loans typically cost more , with higher rates often approaching the teens, but again as we've stated its cheaper than giving up or raising more ownership capital.

If mezzanine cash flow financing might meet your needs for growth, acquisition, or recapitalizing seek out a speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you achieve the benefits of such financing.


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 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

Working Capital and Small Business Finance Loan/Loans Options

Listen To Captain Obvious : 'Guess What Your Business Needs? '

Just picture your firm having access to all the working capital you need. Seem impossible? Not really... if you have a solid understanding of your options and your firms capability of qualifying or executing on those options.

Whether you're the largest corporation in Canada or a small new start up (and everything in between) your business needs working capital. In Canada small business financing loans and financing arraignments for working capital are limited to a handful of possibilities - but being aware of what they are and qualifying for them could be the solution to your constant focus on cash flow via some sort of working capital loan.

It is probably easier than you think to ensure you are addressing the cash flow challenge correctly - where it gets somewhat ' thorny ' is matching a solution to the problem or locating an expert that can provide you with the business financing assistance you need.

Two key elements of your first step working capital assessment are your gross margins and your turnover. That's the big problem we have with text book / academic solutions to working capital - they point you to the text book calculation - give you a formula which essentially has you subtracting current liabilities form current assets, and voila!

the inference is you have working capital. However, our clients have never paid a supplier or completed a company payroll with a ratio!

To properly assess your working capital needs focus on understanding your turnover - how much inventory do you carry, what are the days outstanding in inventory, and as importantly, or more importantly, are your receivables turning over. Have you realized that for many firms 80% or so of the total of all the business assets you have are tied up in A/R, inventory, and, on the other size of the balance sheet let's not forget payables.

So can you have financial success based on your new found knowledge and analysis of your cash flow and asset turnover. We think you can.

Canadian business financing solutions to small business finance loans really revolve around a couple viable solutions. Typically, in our experience Canadian chartered banks cant satisfy your business working capital needs - if only for the reason that they rarely finance inventory and require significant merit in your overall financials, profitability, external collateral, personal credit worthiness, etc.

So, where do you go from there? The other solutions are very viable and can take you to a potential 100% turn around in cash flow - they include working capital financing as a bundled line of credit on a/r and inventory via an independent finance company. For firms that are larger we believe the ultimate tool is an asset based line o f credit that provides high leverage margining on all you business assets. Other more esoteric solutions, but still very viable although somewhat misunderstood are securitization, and purchase order financing of new contracts and orders. (Your suppliers are paid directly for the orders you have in hand - what could be better than that?)

Finally, coming up the road at lightening speed is factoring and invoice discounting. We mention them lastly but they are probably the most popular method, gaining traction everyday. Our favorite is confidential invoice financing, allowing you to control your financing.

So there you have it. You have identified new ways to determine the need; we have outlined 4 or 5 solutions that will take the guess work out of working capital. These loan and financing options are available with a bit of research, and, if you choose, speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can provide you with timely and valuable assistance in your cash flow needs.


Stan Prokop
7 Park Avenue Financial :

http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 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.










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