Asset Based Lenders : They Have Changed The Face Of Alternative Business Finance In Canada

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Your Business Financing Isn’t Broken .. So It Must Be Working.. Right? Asset Based Lending 101

OVERVIEW – Information on asset based lenders in Canada . Alternative business finance just might be the way to get your company financed properly

Asset based lenders play an increasing role in the business owners/financial mgrs search for alternate business finance needs that solve their challenges around growth and operations. Let's dig in.

One fundamental challenge of understanding the ‘ABL’ (asset based lending) offering is... you guessed it... understanding what it is! As in numerous industries different terms mean different things to different folks. In the context of what we're talking about it’s the offering by commercial finance companies of loans and credit lines based on the core collateral of your company. Typically that’s receivables, inventory, and fixed assets. It's as simple as that.

Because a real asset based loan or credit line is based on borrowing against specific assets the real benefit of ABL emerges very quickly - more cash and significantly more flexibility as compared to Canadian chartered bank offerings. We can't say it any more simply - it's all about the asset!

Different forms of asset finance are available for the stage your company is in, up to and including distress. In many cases certain industries demand more financing needs, and your company may be in a transition stage from typical scenarios of start up, high growth, mature, distress, etc. Because it's all about the assets and the true value (not book value!) ABL works.

Most common forms of 'ABL ‘? They include

Non bank asset based lines of credit (they combine receivables/inventory and fixed assets into one revolving credit line)

Sale Leasebacks

Tax Credit Financing

Inventory Finance

A/R finance

SR&ED Tax Credit Financing

Equipment Finance


What then are some key benefits that would make the business owner consider an alternative business finance solution. They include:

1. Any form of debt or alternative finance is cheaper than giving up equity ownership

2. Business owners/mgrs still have all the flexibility of running their own company without the fear of falling offside on ratios and covenants typically associated with senior debt financing

3. The competitive nature of the asset finance industry allows owners/mgrs to gravitate to a firm who best meets their needs

4. True asset based credit lines grow along with the business

One of the most interesting aspects of the offerings of asset based lenders is the fact that these offerings appeal to firms of any credit quality. Even well managed growing and profitable businesses have the constant pressure of working within current credit facilities to run and grow their business.

Equally, companies that have much more unpredictable financial progress (variable profits and losses, cash flow bulge needs, too much term debt, etc) are more often than not the perfect match for the asset based lender offering.

If your business financing is ' broken ', and you want to fix it 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 you alternative business finance needs.



Stan Prokop – Founder : 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.

Info re: Canadian business financing & contact details :

7 PARK AVENUE FINANCIAL = CANADIAN ASSET BASED 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

Fax = 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 : Sensible Loans And Funding Options That Work

You Can’t Handle The Truth ! Or Can You? How Much Debt & Financing Do You Really Need

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OVERVIEW – Information on business financing in Canada . The right funding options and loans will determine financial success. Here is why.. and how

Business financing needs in Canada often raises the question “How much debt can my business handle?". Loans come with fixed payment obligations and other funding options also come with other challenges such as collateral, covenants, personal guarantees, etc. Those outside restrictions alone will often determine the amount of financing you are eligible for. Let's dig in.

While every business owner/financial mgr appreciates a lender who understands their business and industry access to that quality is never guaranteed. While it's true an eligible business can ' load up ' on financing to the point where it's ' unhealthy' for the business in many cases it's your bank or commercial finance company that will set a cap .

The issue of ' how much ' is also an interesting one because different industries have different financial characteristics. For example lenders and financial analysts feel most mfg. companies can carry twice as much debt as their owner equity while finance firms, as an example, can have 2, 3, 4, 5 times and more debt than equity. Knowing a bit about your industry characteristics can help you therefore determine the amount and type of funding options you need.

For companies that are young or growing quickly the issue of personal guarantees is always a careful one to consider. Knowing the true value of the assets on your balance sheet is key, we assure clients that a bank or commercial finance firm will focus in on this area. Asset and liquidation values are a ' worst case' type calculation, but nonetheless important.

Remember also that debt typically comes in the form of fixed obligations such as loan payments or lease payments ; but numerous financing options available to the business owner/mgr also simply monetize or ' cash flow ' your assets - adding no additional debt to the balance sheet. Cash flow budgets are also important - business rarely travels in a straight line and peaks, valleys, and ' bulges' are common.

It's important to mention also that quite often, in fact in most cases, that no one single type of financing will solve all your business challenges. The better news though is that numerous types of loans and funding options can solve your borrowing needs. Those solutions include:

A/R Financing

Term Loans

Bank lines of credit

Non bank asset based business lines of credit

Inventory finance

Tax Credit Financing ( sr&ed )

P O Financing

Royalty/ Sales financing

Sale Leasebacks

Equipment financing

Commercial mortgage re-financing

While the solutions available are of course ' positive ' in nature it's important to remember also that it's sometimes a challenge to navigate working with 2 or more lenders.

So, can you handle the truth? If you're looking for ' sensible ' business financing seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing your capital needs.


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING EXPERTISE



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.

Info re: Canadian business financing & contact details :



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

Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

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

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






Stan Prokop

Canadian Franchisee Loans and Business Funding - 4 Secrets To Financing A Franchise

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Information on financing a franchise in Canada. Loans and funding tips you can use as a franchisee seeking business funding for your start up business in the franchising industry sector you have chosen

The inside edge. You want it, we have it! Have we got some tips and secrets to share for you.

We're talking about financing your franchise - the successful completion of your entrepreneurial dream in Canada. As a franchisee you want to be aware of your options in loans and funding programs that are geared specifically to financing a start up business in the booming franchise industry.

We're going to discuss 4 key elements of a proven formula for franchise success. What are they? Simply speaking its ensuring you have a business plan that accurately resembles the financial aspects of your business. Number two is the types of emphasis that is put on your own personal background and credit history. Number 3 is the knowledge of franchise financing options in Canada, and number 4, (often # 1 in your mind probably) the amount of personal funds you have to commit or invest to get your business going and your franchisee funding approved.

Let's dig in! OPM. What is it? It's stands for other peoples money and its critical you understand that a franchise is composed of two elements with respect to your financing plan - debt (what your borrow) and equity (what you put in). Our key point here is simply that while there is no proper mix of what works for the combination of those two elements. No franchise is financed with 100% borrowed funds - conversely you don't want to ' pay cash ' for your business and risk all, or a lot of everything you own (house, savings, etc) for a start up business such as a franchise.

We will also share with you that some of the very specialized franchisee loan program in Canada typically require a 30 - 40% owner equity, or down payment. That can be achieved in several different ways.

Should you tap into your retirement plans to fund your franchise? That's not our call, but if you have capital outside your savings we would not recommend collapsing RRSP's, or taking out home mortgages, etc for the purpose of financing and funding your franchise.

Clients often ask how their personal credit history affects their ability to get franchise financing. In general we can say it's a key point in the whole approval process. Many Canadians aren't aware that the entire credit history system in Canada is based on a simple score. You should have a score of at least 650 to be successful in traditional franchise finance. So check your score in advance. And by the way, higher is better!

The business plan is a key element of your whole package. Many clients don't have experience or financial acumen to prepare a proper plan. Not a problem as you can seek a Canadian business financing advisor, or accountant, etc to prepare your plan. A good basic plan comes at a very reasonable cost.


The business plan is your ' total picture 'of your franchise. Basic elements are yourself, your background and business or industry experience, info on your franchise, and some basic financial projections. Naturally the better recognized and successful your brand the more attractive your perceived chances of success are.

As a franchisee what loans and funding is available in Canada. As unbelievable as it may seem the government of Canada, via Industry Canada, is one of the largest players in your franchise success. A program called the BIL / CSBF program is hugely popular and finances mot franchises fewer than 350k in Canada. We strongly recommend you seek out and investigate this program, it's probably the key to 95% our client's success in financing a franchise with funding that comes with great rates, terms and structures and limited guarantees. Bottom line, check it out!

So there you have it, 4 key elements, and secrets if you will, to franchisee financing success. Summarized... a solid business plan, some good business or industry experience coupled with a reasonable personal credit history, a down payment that is aligned to your overall financing needs and personal situation, and, last but not least, knowledge of programs such as the BIL which are geared toward franchise finance success.

So now you know!

P.S. Good luck in your entrepreneurial dream, and going it alone is never good, so seek the services of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.


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

Fax = 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



Article Source: http://EzineArticles.com/6224647

The Key To Working Capital Financing - Asset Based Lenders

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Feeling Like You Just Got Clocked In Your Business Line Of Credit Needs?

Information on working capital financing and asset based lines of credit offered by asset based lenders in Canada. How these facilities improve and increase your cash flow

Wondering how your competition seems to have all the working capital financing they need and you don't - the key

to that answer might just be asset based lenders and the asset based lines of credit they offer to Canadian businesses such as yours.

Let's examine how this relatively new and unique method of business financing can totally alter your business financing success.

The acronym for this type of financing is A B L; simply speaking its daily cash flow provided against your current, and sometimes now so current assets. What do we mean by that? Simply that this facility allows you to margin your receivables, inventory, and in most cases, should you choose, fixed assets and real estate. You are probably saying to yourself that you could arrange financing on your own re those fixed assets and real estate - but we are talking about using those assets as collateral for your daily revolving line of credit. So you aren't borrowing, you are not bringing debt on to your balance sheet, you are just leveraging your ' assets ' (that's the 'A' in ABL!) for daily cash flow and working capital.

And why are we claiming that this type of working capital financing just might be your key to business success. Simply because you have probably found it has been challenging to get the full amount of business credit you need. In some cases you might have discovered its been a challenge to get business lines of credit of any manner.

So if your competitors are using this type of financing today, who exactly is eligible for it, and is your firm a candidate. The answer is simply that if your firm has a combination of 250k in working capital assets you are immediately eligible for asset based lines of credit. We would add that firms with smaller asset sizes can still monetize those receivables via invoice financing or discounting, but that's not our key focus for today's information exchange.

So now you now the offering are out there. But why should you consider it. Simply because your firm might be in one of a number of special situations - that includes issues such as your need for increased daily operating cash, you wish to merge with or finance an acquisition, you have been unable to obtain inventory financing elsewhere, you are growing to quickly for traditional Canadian chartered banking financing, etc! We are pretty sure you get the picture now!

The benefits to this type of business financing must by now be pretty obvious. It's all about access to working capital financing and cash flow that you couldn't access before. Assets that couldn't be financed are now financeable, and inventory financing, previously limited or unavailable now looms on your growth horizon.

Who are these asset based lenders, and what is the cost of this financing? We'll leave that one for another day, but if you want to investigate asset based lines of credit for your firm ( remember, your competitor probably already has ) then speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who will assist you with identifying benefits and the best solution for your current strained needs in business finance.


Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.




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

Fax = 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






Article Source: http://EzineArticles.com/5895090

Business Finance In Canada: Stop Struggling With Loan Needs Via These Financing Sources

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Is Your Business Financing Strategy On Code Yellow : Here’s How To Get To Code Orange!

OVERVIEW – Information on financing sources in Canada for business finance loan needs . Choosing the right funding is critical to growth success

Business finance in Canada comes with a lot of challenges : While Jeff Cooper in 1989 was definitely not talking about financing sources and loan prospects in the Canadian marketplace he seems to have invented something that could well benefit business owners/financial mgrs.

That ' invention'? He's credited with encouraging the mind set of Code Yellow... allowing you to understand you might be in danger. His suggestion? Move to a ‘Code Orange ' mindset - that which you're prepared to take action! Let's examine ' Code Orange' in business financing! Let's dig in.

Knowing how much funding you require, and where to go for that funding is the essence of proper capital needs. Do you realize that those funding sources are in effect boiled down to 3 essential areas, with numerous options within those?

The three areas? Internal cash flow via better asset turnover and profit and margins. 2nd: Supplier/vendor/payable finance strategies. 3rd - banks and commercial finance companies.

Your business is ' well run' when you use the right combo of debt and owner equity. Debt and asset financing depends also on the size and stage of growth your business is in. When we meet with clients it relatively easy to identify what type of financing will work best for their current need. In fact 10 types come to mind. They include:

A/R Financing

Inventory Finance

Sale Leasebacks

Equipment finance

P O Financing

SR&ED Tax credit finance

Bank Credit Lines / Non Bank Asset based credit lines

Sales/Royalty Finance

Cash Flow loans

Govt Guaranteed Small Business Loans

It's in fact ' where your company is now ‘that really will determine which of these finance solutions will solve your current critical need.

Winning in business finance in Canada is really all about successfully planning ahead for your growth and operating needs. It's that mgmt mindset that moves you from Code Yellow to Code Orange!

The challenge exists because most top experts agree that no perfect financing exists, but some solutions are better than others for the current time. That's also where a cash flow forecast will always help you determine what your financing path is. It shouldn't seem a mystery to the business owner/mgr that different banks and commercial finance firms are in fact looking for your business.

In summary? You will move to Code Orange ( take action ) by ensuring you are know why and when you need funding, as well as determining the best cost and optimal use of funds. If you want to better understand what stage your business is in and what sources of funds are available seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can help you eliminate the struggle for proper business financing.


Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.

Info re: Canadian business financing & contact details :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCE EXPERTISE


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


Fax = 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

Asset Financing - Does Your Firm Have What It Takes For An ABL Facility With An Asset Based Lender?

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Information on a business line of credit known as an ABL facility via an asset based lender. This type of asset financing can double your access to business credit and working capital

You're on the hunt, and the prey is business financing under an asset financing scenario you have heard so much about. Let's examine what an ABL facility is, who is the asset based lender that offers this financing, and, oh yes, do you qualify?

To say that business credit financing is top of mind these days with Canadian business owners and financial managers is clearly an understatement. With the economic clouds clearing on the horizon after the 2008-2009 business credit meltdown business owners are looking for growth financing.

And the reality is that the type of operating facilities that you are looking for are getting tougher to secure from Canada's major chartered banks. We are of course referring in general to firms that have some sort of challenge, because medium sized and large Canadian firms with great balance sheets, profits, and solid cash flows can access great credit terms from the banks.

Unfortunately that isn't the client profile we're talking to everyday - as owners we meet have challenges such as inability to secure the operating cash they need, the requirement to acquire additional assets, or even a full acquisition of a competitor. And that economic turbulence we mentioned earlier usually means that many firms are coming out of a turnaround type environment and are slowly getting their financials back in order. Therefore the ability to secure an ABL facility (abl = asset based lending) for inventory and receivables becomes the goal in asset financing.

So what is the real difference in asset financing under and abl facility compared to a bank line of credit, commonly called a ' revolver ' in business finance. The best way we explain it to clients is that the bank focus is on cash flow, the asset based lender focuses on assets. Big difference!

So, does your firm qualify for abl financing? In general, as we stated, any firm with assets of receivables, inventory, equipment and real estate qualifies. Where the challenge comes in is deterring the overall quality of those assets as well as the size of the facility. An ABL facility is generally available for any firm with over 250k in a combination of receivables, inventory, and equipment. In certain cases even tax credit receivables can be financed.

Where you as a business owner have to focus is the choice of a partner in this type of financing. If your facility requirements are in the millions of dollars and you have high quality business assets (i.e. collectible receivables, inventory that turns) you can access significantly more credit than under a normal bank facility - at rates commensurate with bank financing.

Small firms pay a premium for this type of facility, but when you consider you can access almost all the business credit you need under such a line of credit, coupled with the ability to grow profits and revenues and take on additional orders... well, we'll let you decide if that's worth a premium.

If you want to comfortably walk the business financing minefield in ABL and feel you aren't 100% conversant with the players, requirements, and pricing then consider seeking a trusted, credible and experienced Canadian business financing advisor in this area.

P.S. If you found your access to business credit has just doubled, don't say we didn't tell you!



Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.



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

Fax = 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






Article Source: http://EzineArticles.com/5989784

Working Capital Factoring - Leveraging Receivables, Inventory and PO'S

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Information on working capital factoring and financing solutions. Financing receivables and Inventory might just not be the challenge you think !

Working Capital - Canadian business owners want to maximize the utilization of their receivables, inventory and incoming orders and contracts to leverage cash flow. The goals are very clearly, grow business revenues and profit with the right combination of internal growth, borrowing from banks and others, and achieving the best blend of working capital and cash flow by leverage those current assets.

Long term debt or additional new equity is not often the business owner's choice in arranging more cash flow for the business.

We meet with many business owners who tell us they have the opportunity to significantly increase sales.They are looking for a financial strategy to grow those profits and equity while the at the same time minimizing loan interest and any other external financing costs. When a business gets its hand on a proper working capital solution it has the potential to reduce or minimize debt, and increase bottom line equity or value in the business.

Our point is simply that if your business can absorb a reduction in your gross margin - (the cost associated with receivable, inventory and PO financing) then you can avoid debt and equity scenarios and still grow your business.

The Canadian business owner and financial managers challenge is to grow the business and understand the cost of growing the business under various financing methods.

Clients are often surprised to learn how much their business can chance by a simple analysis of their financing choices.

Using factoring or inventory financing as a cash flow supercharger is many times the best strategy for working capital enhancement. Most non financial business owners do not appreciate that power that working capital turnover

There are all sorts of tools that your business can very easily use to monitor your working capital needs. One is simple you need to monitor your working capital to sales ratio.

How do we calculate the working capital to sales ratio? It's easy. Working capital is essential your current assets minus your current liabilities. Take that number form the balance sheet and divide it by sales. If you have a low ratio then you ability to generate cash flow is stronger.

The solution for Canadian business owners is to maximize the turnover of those current assets such as receivables and inventory via working capital facilities. If those facilities can't be arranged with a bank then you have the option of working capital lines of credit and asset based lines of credit that will cover receivables, inventory and even under many circumstances bulges for new contracts and purchase orders

Working capital facilities via factoring or inventory financing or purchase order financing maximize your cash flow - they also cost more and many Canadian businesses simply focus on the cost. But they fail to measure the cost of carrying those receivables and the cost of not turning over that inventory efficiently. These two costs alone have the ability to completely in some cases erase your cost of financing under a factor and cash flow facility.

How does a business compute its cost of credit? The formula relates to your firm not taking credit and payment terms extended by suppliers. Your suppliers give you terms that specify a payment date the amount of the discount if you pay early, and of course the due date. The cost of NOT taking that discount is huge! Most owners don't realize that. If your firm can negotiate better prices by utilizing financing strategies such as factoring and inventory financing and purchase order financing you have just become the best comparison shopper in business!

In summary, the cost of not taking trade credit discounts is very significant when your business has the ability to take those discounts via aggressively financing your receivables and inventory. Utilize innovative strategies, you will find that the cost of paying in full is higher that the cost of a working capital facility to cash flow those receivables and inventory!


Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.


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

Fax = 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




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