Buying An Existing Company : Do You Know Enough About The Business Acquisition Loan

Looking For An Edge In Buying A Business?

OVERVIEW – Information on business acquisition loan options in Canada. Buying an existing company requires specific knowledge around financing and value . Here’s what you need to know

Buying an existing company is an attractive option for many business people/entrepreneurs. The right business acquisition loan and financing play a key role in the ultimate success when that decision is chosen. Let's dig in.

The reasons to choose the ' buy a business' strategy are obvious to most people: Circumstances around the purchase might make the purchase value of the business very attractive. Additionally most would agree it's easier to grow a business than build a business from scratch, thereby eliminating a lot of risk.

The downside? Solid businesses that are growing and profitable are rarely ' cheap', and also, if any business came with 'no risk’ that would be a rare thing. We've met many clients who have inherited numerous supplier/financial/employee issues that were not discovered in any due diligence process.

The price of the business you are looking to purchase will almost always come back to the valuation and what type of financing can help complete the transaction successfully. Careful review of the financial statements around asset quality is absolutely key. One example might be the quality of the accounts receivable which can often unveil other issues related to sales/inventory/service etc.

Other issues to look for in the financials are profit margins, sales history, expenses, and owner takeout. Knowing these numbers gives you significant leverage in making a final offer you are comfortable with, and one that is ' financeable'.

Not always, but on occasion it’s an advantage to have the seller of the business participate in the financing. How? Via the ' vtb ' (vendor take back) option. This eliminates the need for some of the financing you require.

Although it's technically possible to purchase a business without owner equity this generally is not how things work, and a commercial lender/bank will certainly prefer your financial participation in the deal. Many transactions completed also have the owner on occasion putting up some ' outside' collateral.

What type of information is needed to acquire and finance a business properly? The basics include a business plan, a breakdown of how the loan proceeds will be used, financial statements for the business, and a cash flow statement. Remember also that the business acquisition loan is often a ' term loan' and you will more likely also need a business line of credit.

Small transactions under 500k can often be completed under the Canadian Govt Small Business Loan program. It places emphasis on the assets and leaseholds of the business, and is not a cash or working capital loan.
If you’re focused on the benefits of buying a business 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 the knowledge and that special ‘edge’ of expertise required to value and finance a business properly.



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 ACQUISTION 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

How Does Ed Predict My Business is going to Go Bankrupt?! And who is Ed?

We are quite sure that many business owners and financial managers, and to some degree even sophisticated financial analysts have never heard of Edward Altman.

Altman was a pioneer in financial research into trouble firms. He was a New York professor/scholar.Obviously this took a lot of what we could call ' back testing ' - that is to say going back in a companies history to determine why they failed and what were the financial characteristics of that failure. A lot of his work revolves around the in depth analysis of 33 firms that went bankrupt eventually.

Altman wrote volumes on companies in distress and bankrupt companies, and is most known for his contribution of a short formula called 'THE Z-SCORE '.

What is the Z-SCORE? In essence it's a predictor of bankruptcy and business failure! One might think the formula is overly complex, but it is not. It is simply an analytical tool that could be used by any business owner, financial manager, or for that matter a personal investor looking to purchase a stock in the stock market. It is somewhat of a dramatic statement, but Altman felt you could predict the bankruptcy, in many cases, several years before the actual event. (Short sellers of stock take note!!)

Altman developed the tool in the 1960's and we feel it is still very valid today. The ultimate result of a Z-SCORE calculation is an absolute number. If firms have a score of 1.8 or less Altman maintains the company is a strong credit for bankruptcy.

How is the score calculated? Again, readers will be surprised at how easy the score is to calculate. Remember that the absolute number of the score essentially is a reading on the company's financial health.

The elements of the score are as follows:

Working Capital
Total Assets
Retained Earnings
Earnings/Profit
Sales
Total liabilities

Note ** If any business owner does not know how to get those numbers from his financial statement we suggest they are already headed for business failure!

The calculation is done as follows:

Working Capital divided by Total Assets
Retained Earnings divided by total assets
Earnings divided by total assets
Retained Earnings divided by Total liabilities
Sales divided by Total Assets

Each number is calculated and then added up. The result is a final Z-SCORE. Remember that we have said that if a company has a score of less than 1.8 Altman. (Note there is a weighting assigned to each calculation also - readers can do their own research on the calculation)
Believed they were headed for bankruptcy. Obviously when he back tested those financials of firms that ultimately failed he showed they had exhibited a score of less than 1.8 much earlier.

Altman noted that firms with a Z-SCORE of greater than 3 were, in general, strong financially. Readers can also guess that a company with a score somewhere in the middle is a firm in the 'grey zone '. The bottom line - lower is worse!

So would you invest your personal money in the stock market in a company that had a Z-SCORE of 1.8? And do you believe you have a tool that can effectively predict the ultimate failure of a company. And finally, do you know the Z-SCORE of your own firm as a business owner or financial manager - we have shown that it is not hard to calculate. We note that ALTMAN did feel strongly that the formula works better for larger corporations. What the reader does with that data is a subject of another discussion

No formula is absolute, but, the weight of evidence suggests that if Ed (his formula /model) is predicting something, we should listen!



About the Author

Stan Prokop is the founder of 7 Park Avenue Financial

See http://www.7parkavenuefinancial.com
The company originates business financing for Canadian companies and is a specialist in working capital and asset based financing of all types.






Stan Prokop

Business Loans In Canada : Navigating Happy Sad In Bank Loan And Alternative Finance

Waiting For Your Ship To Come In On Business Loans?

OVERVIEW – Information on business loans in Canada. Bank loan or alternative finance solutions must be accessed for the right reason and in the right manner

Business loans and the value they provide often have business owners/mgrs on a journey of what we're calling ' happy / sad '. The ability to successfully navigate a bank loan or an alternative finance loan from a commercial lender will often define how successful and fast your business will grow/profit. So... still waiting for your ' ship to come in ' on business financing needs? Let's dig in.

Whether you're a mature business with growth needs or in startup mode there will always be a certain need for capital. Even cash businesses such as retailers have both inventory and operating capital needs. The question re: financing always becomes: How much, when, and from whom?

In some cases business loans are needed simply for... buying a business! In a vast majority of other cases it's to acquire specific assets to run the business - those needs might be technology such as computers, or fixed assets for the shop floor, as well as rolling stock transportation needs.

Business loans, i.e. Term loans with fixed terms and rates and amortizations do not really solve the day to day ' operating ' needs of the business. That's of course the cash required to pay staff, rent, insurance, taxes, and acquire inventory/services. Those needs are best served by bank credit lines, or, alternatively, an asset based business line of credit - commonly known by professionals as an ' ABL '.

Business loans come in a variety of manners; we can correctly say that often a ' mix and match' solution is required - as term loans can be for assets, leasehold improvements, etc.

A loan is NOT a lease. In many cases it might make sense for the business owner/financial manager to use EQUIPMENT LEASE FINANCING to acquire assets. There are a variety of reasons to consider the ' lease vs. loan' option and often it's valuable to sit down with your accountant, or in some cases your banker or business financing advisor to discuss those needs. It’s helpful to perform , formally , or otherwise, what is known as a ‘ lease vs. buy ‘ analysis to determine the best financing.

One type of business loan used by many early stage or smaller firms is the Govt of Canada Guaranteed Small Business Loan. Limits have been raised and the rates, terms and structures are very competitive when benchmarked against traditional financing. The loan only covers financing for three categories - equipment, leasehold improvements, and real estate. This is NOT a cash or working capital loan.

Canada's crown bank corporation also offers working capital term loans which can be used for cash flow needs and working capital purposes.

Business loans in Canada, when it comes to SME COMMERCIAL FINANCE needs will almost always be secured by assets as well as the guarantee of the owner / owners.

If you're looking for help in ' navigating' commercial business loans that make sense for your firm seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in your bank loan or alternative finance needs.





Stan Prokop
7 Park Avenue Financial :

http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS LOAN EXPERTISE





7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


ABOUT THE AUTHOR

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

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





Stan Prokop

A/R Finance Funding : Why The Receivables Purchase Facility Might Just Make Sense

10 ( Count ‘em ) Ways That A/R Debtor Finance Works

OVERVIEW – Information on A/R Financing funding in Canada. How does a receivables purchase facility work and how does the business owner/mgr compare it to a bank solution when assessing financing needs

AR Finance funding in Canada just might make sense for your company. A simple reason why? A receivables purchase facility works! We're examining 11 reasons why. Let's dig in.

First let's ensure we all understand the basics. When it seems like everyone, your customers and your bank included, is hanging on to their money difficult challenges arise for cash flow and working capital needs. While large corporations and public companies can tap capital in numerous ways SME COMMERCIAL FINANCE options are somewhat more limited.

A receivables purchase facility is the simple ' monetizing ' of your 2nd most liquid asset on the balance sheet - your A/R. It's the ultimate in short term financing, allowing your firm to cover daily operations, and, as importantly, grow the business.

A/R Finance funding is a form of asset based finance. Numerous other names for this method of Canadian business financing exist for the owner/mgr to digest - factoring, invoice discounting, etc.

While bank financing is almost always less expensive that AR finance via a commercial finance firm. A key point here is that A/R finance funding is a fee, versus the ' interest rate' charged by the bank. When properly understood and calculated this makes this working capital solution much more attractive. Unfortunately many firms rarely take the time to understand the costs and mechanics.

Rarely does a Canadian business utilize a receivables purchase factoring facility for its needs forever. It's best viewed as a transition option during high growth or challenging times. The attractiveness of the facility has companies in every industry in Canada looking to this solution for cash flow needs - and by the way start ups are welcome.




1. A/R Finance does not add any debt to your balance sheet



2. It’s a logical alternative to bank borrowing when Canadian chartered bank financing can’t be achieved

3. The application process is simple and straightforward


4. Overall financial quality of your firm is not the key requisite - it's all about the A/R


5. Typically outside collateral is not required


6. Cash flow needs for daily operations are always covered by your growing sales


7. Typically concentration issues are not an issue and can be dealt with - Some firms have a large portion of their business with only a small number of clients.


8. Owners personal credit history plays typically only a small part in final credit decisions

9. Profits can be enhanced and costs lowered via the effective taking of supplier discounts - your firm now has the cash to do so

10. Companies who choose CONFIDENTIAL A/R FINANCING can bill and collect their own receivables. This choice allows you to avoid any of the 'notification' that is required in traditional receivable factoring offered by 99% of the industry players.

If your firm is focused on staying ahead of the curve and growing investigate A/R non bank solutions. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital 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 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

Need Equipment Loan and Lease Financing? Re-Program Your Leasing Finance Strategy Today!

Look at Equipment Financing in a Whole New Light !

Sometimes you just need to re-program

things to make them work better - that's what we're also suggesting when you review your lease finance and equipment loan financing strategies for your company.

Let's examine how you can maximize your leasing strategy to attain maximum benefits and minimum hassle! That's clearly a win win strategy.

Focus clearly on eliminating what we can only call the 'hassles' of dealing with other types of financing, It's all about ' time' and your ' business bandwidth ' today when you are visiting a new asset acquisition. Without a doubt we can state that leasing equipment is by far the quickest method of obtaining an approval, satisfying both your vendors need as well as your own time constraints.

With only a very basic financial calculator you can quickly review all your lease finance options - the favorite question of almost all clients is: 'What will my monthly payment be?' It's about time for you to answer that question yourself, and make sure that your cash flow and working capital remain intact on the equipment loan financing you are contemplating. How? Just remember that the only elements to any lease are: term, rate, amount financed, payment, and end of term option. If you know any 4 of those you can always solve for the final item, which in our case is payment. You should assume an interest rate that is consistent with your firms overall credit quality.

Business owners and financial managers should view their lease finance acquisitions in the context of your overall financial strategy. You might need to 're-program' your thinking on buying and paying for assets outright. Doesn't it make more sense to keep your cash and line of credit reserves intact, and match the useful economic life of the asset you are acquiring to a predicable cash outlay?

A quick way to 're-program' your leasing needs is simply to always use the same business template for each asset you are acquiring. They key aspects of that decision template, if we can call it that are: cash flow budgeting re the monthly lease payment, reviewing the asset in the context of not having to draw on your business operating line of credit, determining how long you will use the equipment for (thereby matching term and payment) and finally, factoring in balance sheet and tax advantages into your asset acquisition decision.

What's the biggest 're-programming' issue with most firms. It's simply their mild obsession

with rate. Yes a rate has to be competitive, but view the lease financing rate in the context of the current interest rate environment, the challenge of getting traditional bank financing, and the fact that in the current 2011 environment rates are probably going up and not down. The real reality is that you determine your own rates in your new leasing re-programming strategy! That's because the largest factor in determining rates for equipment financing is the manner in which you properly present your overall credit quality and financial health.

In summary, equipment loan financing, aka 'leasing' has been around for over a hundred years in North America. Take a hard look at why you finance your assets, reprogram your strategies around benefits and 'how to,' and acquire your assets with the knowledge you have made the best financial decision for your firm. Need help? Given a choice we'll take an expert over a rookie any day! Speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who will work on your ' re-programming strategy with you!


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



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




Article Source: http://EzineArticles.com/6050941

Business Refinancing In Canada: Your Turnaround Finance Fix Via An Asset Loan And Other Solutions

The Rise Fall and Revival Of Your Company : What would Henry Frick do?

OVERVIEW – Information on business refinancing solutions and strategies in Canada . Turnaround finance comes via an asset type loan solution or other forms of monetizing assets

Business refinancing solutions
are often required when your company has been in the rise... and then unfortunately fall situation. Turnaround finance typically requires an asset loan of some type, in combination with performance changes in your business. Let's dig in.

Challenges in the turn around abound, especially since in a turn around .especially when it comes to SME COMMERCIAL FINANCE needs, new equity/owner capital is often difficult if not impossible to acquire. So that lack of money must come from operating assets and sales. The ability to maintain sales and increase profits is of course also key.

Safe to say that owners/mgrs have to recognize the issues that arose prior to a turnaround need - they include issues such as costs in the business, mgmt/employee performance, or lower sales. Naturally those types of issues, combined with a poor asset and sales finance strategy are typically the key issues.

Key signs of a poor finance strategy being in place are your inability to buy new needed assets , inability to meet fixed cost commitments, and loan and lease default scenarios.

Many businesses get to the ' crisis ' situation without ever having prepared a proper business plan and cash flow plan. Suffice to say that now is the time to do that! That financial forecast and plan will determine where turnaround finance is needed and how it could be achieved. Those type of efforts will determine where cash will come from and how and when it will be used.

There is a great story around a fellow named Henry Frick - In 1871 he borrowed through good and bad times to acquire and grow businesses. His secret? It might well come from the actual bank notes from Thomas Mellon of Mellon bank - a bank U.S. money center bank . Those notes? They read ' land is good ... the ovens are well built, manager on job all day... keeps books in evening... knows his business’!

There often emerges a clear ' pecking order ' in who or what needs to be paid and addressed in a business refinancing. That list of key players is pretty short - government obligations, key suppliers, and utilities/rent!

For those customers with bank facilities in place they are of course forced to address the turnaround when a demand loan is called. An asset loan is often the solution that ' takes out ' the bank and provides an interim financing solution.

Turnaround finance Solutions that are available are diverse - They include:

Asset based bridge loan on assets

Asset based revolving credit facility - combines A/R, inventory and equipment and real estate into one business credit line

Tax credit finance

A/R financing

PO / Contract financing

Sale leaseback lease/loan on unencumbered assets

Sales/Royalty finance

If your business is facing operating losses and other issues requiring business refinancing seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
for help in asset loan and 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 = CANADIAN BUSINESS REFINANCING AND TURNAROUND 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

Unlocking Business Capital : Operating Financing 101

Avoiding The Cash Flow Tailspin Via Proper Business Finance

OVERVIEW – Information on operating financing sources in Canada. The right amount of business capital, from the right sources will help guarantee business success and growth

Business capital , well actually the lack of it, can put companies into a highly undesirable tailspin. How does the business owner/financial manager ' unlock' the operating financing he or she needs to run the business? Let’s dig in.

Once companies are past that challenging ' start up ' phase the need for even more capital emerges. That funding needs to come in the form of longer term capital, as well as operating cash. That operating cash provides ' fuel' to your business, allowing it to grow.

Thousands of Cdn firms choose to invest in R&D to better their products/services. If that's your firm and you aren't taking advantage of Canada's SR&ED program for your refund in research and development... well... shame on you! We'll add that those r&d credits are financeable also, and a SR&ED bridge loan helps to accelerate business cash flow recovery.

We're focusing mainly though on ' operating expenses' and how the business finances those needs. Here's where a basic cash flow forecast comes in as essential. Most business owners/mgrs will agree that it's a bit more challenging to forecast ' cash flow coming in' versus expenses, many of which are fixed.

As we have hinted, cash ' inflow' is more about ' timing',

so knowing how to finance your assets and your sales is really the essence of the secret to unlocking business capital.

Where do those funds come from? The most basic sources of funding include:

Owner equity / collateralized personal assets (Businesses that can't demonstrate long term financial potential to outside investors/partners will have to self fund their businesses)

Business credit cards

Term loans / Revolving credit facilities

Trade credit from suppliers

Accounts Receivable Finance (The appeal of A/R Financing, via a bank or a commercial lender is significant. Financing comes from your sales, not from your overall ' business credit' profile)

Govt Business Loans (The federal ' SBL' loan program has recently been expanded and will have appeal to many start ups and early stage firms)

Tax Credit Financing

Equipment Finance


Which of those will work best for your firm? The reality is that it's a combination of matching several of those finance solutions to effectively run, and grow your business.

So, our recap? Simply that careful time should be spend on estimating and understanding your operating finance needs, either from your business assets or from your sales . Consider speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you with external finance needs that will allow you to ' scale' 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 BUSINESS CAPITAL 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