A Financial Cash Flow Formula? Examining Winning Business Financing Techniques

Are We There Yet? Who’s Driving.. Your Cash Flow

OVERVIEW – Information on the financial cash flow formula considerations that make successful business financing in Canada work . It’s all about those cash flow drivers

A Financial cash flow formula? Business financing in Canada depends on putting a proper capital structure and ensuring owners/mgrs understand the factors that shape your business financing needs. That allows you to identify proper business finance solutions. Let's dig in.

Think about it. What does in fact determine the type of business financing you need (and how do you achieve that?!). Some key factors you need to consider are:

What you will use funding for

At what stage of life is your business in (start up / growing, mature/distress)

What types of business financing does your particular industry demand

How do owners feel about debt / equity and asset acquisition and monetization?

Is your industry popular, or ' out of favor' with lenders


Naturally private,' non public' companies have different views of what happens to cash and profits. How they address those views determines their business finance direction. If there is one commonality it's that everyone, (including the clients we meet daily) wants ' inexpensive ' financing. ' Cheap' financing , also known as Canadian Chartered Bank finance !... is a lot easier when your firm is growing at a normal rate, has good cash flow, profit margins, and low debt. Companies that have challenges in some (or all?) of these areas will not be eligible for ' low cost ‘funding.

The ability to plan your cash flow needs in advance of a crisis is what successful business is all about. It's also critical to spend some time in understanding the concept of matching proper funding to specific uses.

Some examples? Acquiring assets through proper use of equipment lease financing. Another requirement is daily operating needs re payroll, suppliers, fixed expenses, etc. Here is where the proper BUSINESS LINE OF CREDIT comes into play. In some cases your firm might be investing in R&D. Many firms utilize SR&ED financing for cash flow needs to help recover off funds spent on research.

The solutions to cash flow formulas that work are numerous - but which one works for your company. They include:

A/R Financing

Inventory Loans

Business credit lines - bank and non bank

Tax Credit Financing ( sr&ed )

Equipment Leasing/ Sale Leasebacks

Cash Flow Loans

Working Capital term loans

So, are we there yet? 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 understanding, and solving, your cash flow needs.


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 - 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 & Contact Details :

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

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

Receivable Finance Canada: Finally Your Clear Explanation Of Factoring & AR Financing

Eliminating The Hail Mary Pass on Canadian Receivable Financing Techniques

OVERVIEW – Information on factoring and receivable financing in Canada. Only when certain elements of AR Financing and cost are understood does this funding strategy make sense for your company

Receivable Finance generates somewhat of a ' fear of the unknown' when we talk to clients who are business owners / financial mgrs looking at AR Financing, commonly known as ' factoring'.

The problem though is that with so much diversity out in the market the solutions they are offered are ' reheated' / misunderstood. Not knowing the different nuances often have your company feeling like it needs a ' HAIL MARY PASS' for their Canadian Receivable Financing needs. The solution? Understanding the offering and how it works and benefits your firm. Let's dig in.

A ' Hail Mary Pass’? That's the legendary term coined by NFL great Roger Staubach. He actually borrowed it from two 1930's players at Notre Dame who coined the term when they needed a last chance ' low probability' pass that needed divine intervention!

No divine intervention needed here, just common sense. Owners/finance mgrs just need to think of A/R financing as a business line of credit against receivables. Simple enough. But not so fast. Because the paperwork of ' factoring' shows that you don't have ' ownership ' of the A/R certain terms must clearly be understood. Let's cover off key basics.

Your borrowing ability on your factoring line of credit will always be based on specific collateral, i.e. the amount of your outstanding invoices, typically less than 90 days old. (Older invoices are deemed uncollectible).

How much can we get? is a typical client question. The answer -more often than not your advances will be 90% of your outstanding A/R.

Cost? Financing costs are higher in factoring. However you can lower your costs by up to 50% or more if you focus on strong collections to clients. Simply speaking - the length of time your clients take to pay determines your financing costs.

Miscellaneous fees abound for many offerings which can increase your cost. These include closing fees, ' facility fees’, aka standby fees, termination costs, monitoring costs, and up front deposits. Our answer to all of the above - with the right lender pretty well none of the above

should apply to your finance offering.









Receivable finance works best when your sales are constant or growing... We caution our clients who might be in high distress of have flagging sales that entering into the wrong financing arrangement at this time causes negative cash flow due the fact that borrowings will mostly go to reducing the credit line.

Have we forgotten anything? Just that our recommended facility for almost all our clients is CONFIDENTIAL RECEIVABLE FINANCING, allowing you to bill and collect your own invoices without the required notification to your clients that 99% of the industry requires. It’s much better than the ‘reheated’ versions of old school factoring offered by most Cdn firms.

Our bottom line? Work with a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you in determining the total cost, as well as benefits of ' factoring' , including comparing the facility to a bank line of credit. Common sense Canadian business financing - no Hail Mary Pass needed!


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 - 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 & Contact Details :

http://www.7parkavenuefinancial.com/ar-financing-factoring-receivables-finance.html

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 : Which Credit Facility Works For Your Company?

Here’s The Important Stuff On Business Credit Facilities In Canada

OVERVIEW – Information on the choice of credit facility arrangements that are available to the Canadian business owner. Business financing success is determine by the flexibility and type of financing you need to run and grow your business

Business financing in Canada, (despite the belief of some) still involves choices in the type of credit facility that works best for your firm under different circumstances and needs. We're reviewing the ' important stuff ' on these types of finance. Let's dig in.

When we talk ' credit facilities ' it's important to distinguish between various types, i.e. loans, revolving credit lines, leasing facilities, etc. Credit facilities of various types complement the shareholder equity in the business. That balance of debt and equity is critical to business success as it really determines both financial pressures and flexibility around your borrowing requirements.

Whether you're looking at short term operating needs of longer in nature ' term loans' it's all about ensuring you have the flexibility to run your business. In effect it's your ' back up plan '!

The positive aspect of ' working capital' / ' revolving' facilities is that they are ' evergreen ' in nature, constantly allowing you to draw on funds based on traditional collateral such as receivables and inventory and the cash flow that comes from those two assets. Think of these types of credit lines in effect it’s a credit card for your business, allowing you to constantly draw on funds as needed.

Long term loans can vary anywhere from 3 to ten years for a business - in the case of a commercial mortgage 15-20 years are in fact reasonable time frames for such a finance need. The best term loans for your company match the asset to the cash flow.

Using our analogy of comparing the business line of credit as a ' credit card' for your business it's important to... you guessed it... not max out the facility! Firms that are constantly at their borrowing maximum on credit lines and term loans are of course perceived as being in at least some form of financial distress.

The security for business lines of credit themselves are either some or all of the business assets or in some cases just the ' cash flow ' the company generates. Rates from either banks or non bank commercial finance companies will reflect the credit quality and collateral of the loan or credit line.

It's important to have a solid credit line facility in place as it's the ultimate daily ' safety net' for your business.

If you're looking to understand business credit facilities such as:

Term loans

Equipment Leases

Business Lines of Credit (bank and non bank)

seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you on the... important stuff'!



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 - 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 & Contact Details :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS FINANCING CREDIT FACILITY 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

Canadian Business Financing : The Big Secret In Funding Your Needs In Company Loans

Canadian Business Finance : Abe Lincoln May Have Had It Right !

OVERVIEW – Information on access to Canadian business financing . When it comes to company loans and funding your business it is critical to understand the lending landscape and to have the ability to identify proper alternatives

Canadian business financing ' aint ' easy! So what’s the secret to success in funding and accessing the right company loans?

Abraham Lincoln? While we're quite sure he wasn't referring specifically to the Canadian Business Finance challenge he is credited with the following - ' Give me 6 Hrs to chop down a tree and I will spend the first 4 sharpening the axe '. That's of course his guidance to approach the challenge of anything, including business finance with a ' sharpened axe' - i.e. preparation! Let's dig in.

While Lincoln was in fact a wood cutter early in his life he used this saying as a metaphor for anything we undertake in business (or life?).

How then should business owners/ financial mgrs approach the capital and cash flow challenges of their business? Of primary importance is understanding the business finance landscape, or working with someone who does!

While Canadian banks might tell us in their TV commercials they are competitive they of course enjoy the next best thing to a monopoly, and thousands of firms in the small and medium (SME) sector experience the fact that they don't have access to finance. Some stats from experts tell us that almost 50% of all business financing requests are rejected or not properly completed in some manner.

Here's where ABE's tool sharpening comes in. In our case it's all about knowing your alternative sources of finance. For firms that have assets and sales and growth opportunities numerous forms of alternate finance solutions are available, they include:

A/R Financing

Inventory Loans

Equipment Financing/ Asset leasebacks

SR&ED Tax Credit Financing

Business lines of credit that are revolving and 'non bank’

Purchase Order Financing

Sales / Royalty Finance

Unsecured cash flow loans

Working Capital Term Loans

Government Small Business Loans

What the business owner/finance mgr needs to do is to spend some time and understand the mechanics of delivery of the above solutions that might pertain to their specific funding needs. Traditionally alternate finance providers have the ability to act more quickly and assess lending decisions with a focus on faster approval.

Other industry stats also indicate that in many cases businesses only approach the one bank they are dealing with. It's therefore important to understand who other providers are - the bottom line being: ' Don't give up!”

So, our ' big secret ' in Canadian business finance is really simple - take the time to understand alternative forms of finance. 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 funding needs.



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 - 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 & Contact Details :


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

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

Commercial Bank Financing In Canada : Eliminating What Could Go Wrong With Your Business Credit

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Commercial Bank Financing in Canada : Is Your Access To Business Credit Working Hard Or Hardly Working ?!

OVERVIEW – Information on the commercial bank financing offerings in Canada. Business loans and other non bank offerings are profiled regarding benefits and alternatives

Business loans via commercial bank financing in Canada can often leave business owners / financial mgrs with the sense that something isn't right. We're looking at the access to capital via bank solutions, ensuring that business credit ' works' for your firm. Let's dig in.


Bank finance solutions are of course not the only way for you to fund your business. Other solutions may well achieve the goal - they include:

Asset based loans - Asset based business credit lines

Factoring /AR Financing

Inventory loans

Purchase Order/Contract financing

Equipment leasing

Royalty/Sales Finance
SR&ED Tax Credit Finance


Why does business tend to gravitate towards ' the bank ' for its financing needs? Two most common answers to that question are cost and flexibility.

When does bank financing not work for your firm? The answer typically is that your firm can't demonstrate ' cash flow ' and ' collateral' that are the two main components of the bank credit decision. Your ability to properly demonstrate consistent cash flow is always the focus of the banker.

Because are banks in Canada are both highly regulated, as well as being ' public companies ' they are scrutinized by both the govt and shareholders on a constant basis. Many business owners/financial mgrs are therefore mistaken when they adopt the mindset that there is a major difference between different banks.

Key point - While there isn’t significant differences in the bank lending mindset there are huge differences in individual bankers relative to their expertise and capability and reputation within the bank. Our point? It's the banker, not the bank!

One of the greatest challenges a company can face is when the business becomes ' off side ' on the bank relationship. That ' special loan' or' problem loan' status can be a difficult one to overcome if you don't have the proper advisor in place.

At that point your ' collateral' and ' capacity ' are not working , and you need to get it working - quickly . While in some cases the bank relationship can be saved that unfortunately is not always the case. That's the time to consider a ' specialty lender.

An interesting aspect of Canadian business finance is that many of the ' non bank' solutions offered by commercial finance firms have been targeted by banks. A majority of the banks now offer some or all of the specialty offerings offered by commercial finance companies. So once again it’s incumbent on the business owner/ financial manager to evaluate the cost, quality of the relationship and expertise, and your ' capacity' to meet bank requirements. The caveat - beware the intense conservatism of the bank as it relates to financial covenants, reliance on back up personal guarantees, etc.

If you feel your business credit needs are ' hardly working' and you want to elevate status to code ' working hard ' seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can ensure you are making the right financing decisions.


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 - 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 & Contact Details :

Info re: Canadian business financing & contact details :


7 PARK AVENUE FINANCIAL = CANADIAN COMMERCIAL BANK FINANCING AND 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

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

Account Receivable Financing : The Receivables Factoring Solution Not Everyone Knows About Or Understands

What Happens When You Use The Right Accounts Receivable Financing Solution?

OVERVIEW – Information on account receivable financing in Canada. Factoring receivables is often misunderstood and benefits are significant . Here’s why.. and how to!

Accounts receivable financing solutions often have Canadian business owners/financial mgrs not fully understanding the impact and benefits. Also known as ' factoring receivables' one top expert probably describes it best - Expensive... and Valuable! Let's dig in.

Numerous source of A/R financing are available to your company when you're looking to finance sales. That, whether you like it or not, is part of the confusion around the multitude of ' offerings' that come from asset based lenders and commercial finance companies.

The best way to describe the fundamental receivables finance offering is to think of it as an alternative to a bank line of credit - although numerous key differences have to be fully understood to make the ' Valuable' part of our expensive/valuable equation work!

One positive aspect of factoring is the fact that it provides a significant borrowing leverage - typical advances are in the 90% range. Most business owners are aware that banks only finance AR at 75% as a most common practice.

A proper financing will allow you to draw against the previous month end A/R. With that information the owner/mgr can then calculate ' borrowing power' for the month, allowing for proper cash flow planning.

When you are factoring receivables who your client pays and how they pay is key to getting the best possible facility in place. In the majority of cases payments by your clients are made to a bank ' lockbox/post office box' controlled by the finance company. This works best... for the finance company. The optimal solution sought by most owners is of course to have their clients pay them. They want to maintain the client relationship as well as be perceived as in charge of their own business finances.

The solution to the client payment problem? We call it CONFIDENTIAL A/R / INVOICE FINANCING. The process? Your client pays you!

Pricing on A/R financing in Canada varies, again emphasizing the need to ensure you are working with the right firm or advisor. While small facilities are in fact available and popular the truth of the matter is that facilities typically are in the 250k range and up - with virtually no upper limit - including 'factoring' in your growth prospects.

In future updates we'll discuss the more on the mechanics and cost of factoring receivables and why the perfect solution to financing your sales might just be around the corner. If you're looking to understand ' VALUABLE ' versus ' EXPENSIVE ' in non bank sales finance 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 in your funding needs.



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 - 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 & Contact Details :


7 PARK AVENUE FINANCIAL = CANADIAN ACCOUNT RECEIVABLE FINANCING AND FACTORING EXPERTISE



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

Direct Line = 416 319 5769

Office = 905 829 2653

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 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