Business Finance Access Dried Up ? Do’s And Don’ts For Loans & Alternate Financing Strategies

What Happens When Your Company No Longer Has Access To Financing ?

OVERVIEW – Information on business finance access when companies are financing financial distress. Alternate financing and other types of loans to the rescue !

Business finance
access should always be a concern to business owners/ financial mgrs in Canada. Alternate financing loans and other solutions arise out of the necessity to fix what's wrong with your company. We're covering some of those ' do's and ' don’ts '

when your financing access ' dries up ‘. Let's dig in.







For a starter it's critical to be able to recognize those warning signs when the financial health of your company is going off kilter. Although business folks always have a fear of their sales revenues going south they rarely associate a huge sales increase with financial distress. In some cases even the simply issue of ' seasonality ' can affect your firm negatively when it comes to cash flow or working capital needs.

When those sales translate into a change in profits or worse, a huge investment in unpaid accounts receivable, it's safe to say you could be on the verge of financial distress. Alternate financing, such as A/R Finance solutions such as factoring or asset based credit lines or PO Finance can fix that problem, and are often the sole solution to the dramatic increase in your sales.

Putting the sales revenue issue aside any unattended increase in working capital needs will always highlight cash flow problems - whether you're making money on paper or not. Pricing, margins and inventory type issues always need attention. Those two solutions can also address an often common problem of the traditional lenders concern (aka ' the bank ') that your company is too dependent on any one customer.

In some cases your company might not be able to make the investment in areas such as new equipment /technology, or even R&D, for those firms that consider themselves leaders in their industry. Proper equipment leasing and financing strategies, as well as SR&ED Credit financing can often assist in these two respective areas.

On occasion we meet clients where the ugly head of ' CRA ARREARS' has arisen. That failure to pay taxes or divert those intended funds to other areas of your business is a key sign of financial distress, and many forms of alternative finance can 'fix' the CRA delinquency issue.

Many firms who are too far down the path in financial challenges find themselves off side with their bank; in many situations they are place in the ' special loans - non performing loan ' category. This is exactly the time to consider alternative finance loans as your ' takeout ‘.

It's important at times of financial challenge to either reschedule liabilities, restructure your business finances, while at the same time taking a hard look at your operations. In some cases refinancing owned fixed assets such as equipment or real estate can be accomplished via an effective sale leaseback lease or loan. An appraisal, while potentially a cost, has great value to both your company and any proposed lessor/lender.
Bottom line - At these times it's critically important to take a hard look at your balance sheet and monetize assets or refinance effectively. A cash flow /business plan time investment is also a solid requirement in these times.


If you're looking to fix your firms financial healthier and ensure access to financing at all times seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your business finance access when it's most important.


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 FINANCE AND ALTERNATE FINANCING EXPERTISE




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

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

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

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




Stan Prokop

Business Lines Of Credit : Welcome To ABL Asset Lending

Business Credit Line Access – A Solution Nobody Told You About

OVERVIEW – Information on business lines of credit in Canada. The lesser known alternative ‘ ABL ‘ solution is the asset lending fix for working capital needs

Business lines of credit are one of the most solid tools to help companies grow revenues and hopefully...profits. Asset lending , known as ' ABL is the credit line that may in fact give you ' full time' assistance to cover your working capital and cash flow needs. Let's dig in.

The necessity for ongoing cash requirements has business owners always looking ahead to how their business can remain ' liquid’. They are looking for that cushion of help when they really need it. Companies seeking SME Commercial Finance understand very quickly that the bias of banks seems to lean towards larger corporations - while they toil to source financial resources to meet growth needs.

As we have said in the past, thousands of firms in Canada find themselves ' underbanked’. That situation forces them to look at alternatives to traditional Canadian bank financing.

In some case clients we meet are in fact being asked to, shall we say, ' exit ' their bank relationship. At the other end of the spectrum the company is growing so fast traditional financing is unable to meet the needs. In both these cases Asset Based lending offers the solution, albeit almost always at a higher cost and terms.

Those companies wishing to return to prosperity though must consider all options, and the ABL credit line, typically from a non bank commercial finance company is almost always the way out. Naturally some planning is required along the way, including hopefully cash flow and sales projections.

In the majority of cases, ( but not all ) Asset line of credit lenders are looking at ' tougher/more difficult' transactions Here they are focusing on the true collateral in the business - inventory, receivables, fixed assets, and of course sales prospects. In some cases business owners are looking to dramatically increase the ' personal guarantee' aspect of their current financing arrangements.

In almost all cases asset based lines of credit offer ' flexibility ‘. Owners and mgrs utilizing the asset based credit line are focusing on growing the company and ' righting the ship ' from a financial perspective. In some cases these credit facilities can easily finance a merger or acquisition. The real competitiveness in the ABL market today allows companies to choose from a number of firms offering this facility.

If you're looking for a real world focus on business financing intelligence around financing solutions such as ABL business lines of credit 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 finance needs. who can assist you with you finance 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 :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS LINES OF CREDIT & ASSET LENDING EXPERTISE



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

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '






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

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



Stan Prokop

ABL Lenders In Canada : How To Solve The Hunt On Your Business Credit Line & Banking Dilemma

Feeling A Tad ‘ Underbanked’ These Days ? Here’s A Call To Action

OVERVIEW – Information on how Canadian business can access the business credit line . These facilities are offered by bank and commercial ABL lenders and provide a constant cash flow source for the business

The business credit line requirement often has owners/ financial mgrs feeling somewhat ' underbanked’. This type of facility is only offered by either a bank or ABL lenders. (Asset Based Lending). Take us up on our ' call to action '

and let's end that hunt for that constant cash flow dilemma that you face. Let's dig in.

Let's cover off some basics. These types of facilities allow you daily access to capital as you need it. It's a ' pay as you go' type of borrowing that only charges interest as you access the credit - with the ability to pay it down all the time, typically daily as you collect receivables, etc.

Typical uses of the credit lines include payrolls, marketing, inventory purchases, and most importantly - filling the time gap between sales and collections!

Two key offerings are available in Canada - Banks and Non bank lenders. Banks offer secured and ' unsecured' revolving facilities - typically non bank lenders are fully secured by security agreements covering collateral assets such as A/R, inventory, and often equipment, and of course owner guarantees. The best use of the credit line is when your company pays down and fluctuates the facility regularly.

Typically bank lines are not available to newer or start up businesses, and they are not a source of covering your financial losses/business errors.

While the ' unsecured' credit line is highly appealing you need to understand that your overall business record and financials must be very strong and at a certain point based on dollar requirements typically security is requested. You must demonstrate profits, good financials, and a command of your business. (Financial statements tell almost all about whether you're ' in command ‘)

Key point: Term loans are fixed in nature and usually are for specific assets. They are NOT credit lines per se, the latter having more flexibility. Note however that credit lines almost always have a limit!

To access the right amount of revolving credit facility you should be able to produce on an ongoing basis proper schedules of A/R, inventory, and other obligations your business has committed to. A cash flow forecast is ALWAYS helpful. You want to be able to demonstrate how and why the credit lines will assist you in running and growing your business.

While bank facilities are ' lowest cost ' they are more challenging to secure. Asset based lenders offer more credit but come at a much higher cost -although those costs have come down substantially in the last few years due to the highly competitive nature of the business.

If you're feeling ' underbanked' these days and want to access more, or better suited credit facilities seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you achieve the flexibility and ' gap covering' that your business requires.


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.




7 Park Avenue Financial

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


Direct Line = 416 319 5769


Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '








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

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



Stan Prokop

Business Cash Flow & Working Capital Funding In Canada : The Money Bottom Line!

Everything You Thought You Knew About ‘ Business Money ‘!

OVERVIEW – Information on business cash flow and working capital funding in Canada . Do finance and money needs remain a top priority

Funding working capital needs for Canadian business comes with both legal , often personal ramifications, and of course costs. Some call it business cash flow, we can even refer to it as ' business money ' - The reality is that the movement of money/funds through your company has some dramatic implications. Let's dig in.

What’s bugging you ? As one top expert recently put it business owners/ financial mgrs find themselves constantly ' bugged' by the cash flow financing challenge. While the might be comfortable with sales and those ' paper profits' their ability as owners to access real cash for corporate and personal needs becomes a constant challenge.

One' rule of thumb' in business is to always have a buffer against unexpected cash needs. Not having those creates constant pressures that come from suppliers, your bank, even staff.

Bank business lines of credit are of course one of the optimal ways to achieve cash flow needs. Some clients we meet are actually in arrears with CRA due to those liabilities being ' rearranged ' for other purposes. That strategy by the way has some serious ' personal guarantee ' issues and is not recommended.

Many business financing alternatives such as:

A/R Financing
Inventory loans
PO Finance
SR&ED tax credit loans

can alleviate ' bulge' needs in business cash flow. Whether ' temporary' or ' seasonal' it's good to know your alternatives.

Stats tell us that a large majority of business owners in Canada spend more each subsequent year on replenishing or purchasing fixed assets. Here's it good to understand your equipment lease financing options as those capital expenditures can take a large bite out of working capital if allocated improperly.

Those ' CAPEX ' needs will always arrive with three questions -

How much can we spend on new assets/technology?
How much internal funds can be used for asset purchases
What outside financing is available?

What then are some solid key considerations in understanding your business cash flow?

They include:

Understanding your real profits

Why are receivables and inventory going up without the same increases in sales?


What options are available to finance new assets

The whole area of working capital, and in particular cash flow is a very misused term as its often neither real ' cash ' , or real ' flow '! If you're looking for straight answers on ' business money ' and company financing techniques and solutions seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with funding your business properly .






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 To Finance & Acquire An Existing Company : Business Acquistion 101!

Looking For Acquisition Financing ? Try This

OVERVIEW – Information on how buyers can acquire a company . The ability to successfully finance a business acquisition is key to winning when buying a company or merging your business into one

Acquire a company ? That’s one way to beat the ‘organic growth ‘path to business success and it can be a proven strategy ... when done properly. How then does the owner/entrepreneur successfully finance a business acquisition? Some experience in the area helps - given that difference sources of finance in this area demand different approval criteria. Let's dig in.

When buying / acquiring a business, or merging your business into another (That’s the 'M ' in m&a) it’s important to visualize the ultimate structure of the company. While it's preferable that your target business has little or no debt, strong cash flow, and valuable assets the reality is that's not always going to be the case. Therefore different types of financing are required to shore up the overall ' business valuation’

As we have said in the past, financial statements don't provide a ' magic number '

for value, but properly completed (and available) they should show you the cash flow situation of the business. Again, the past is not the future, so careful examination of future financial potential is key.

Buyers must also determine if they are buying the ' shares' of the business, or the ' assets'. There's a big difference in tax obligations here and this is where it's best to consult your lawyer or external accountant. Sellers need to take into consideration the fact that there is no real ' market ' for private company shares. The buying and selling of businesses relies then on proven ' formulas' for valuing a business.

Those valuations typically include giving a multiple to cash flow, profits, sales, or some combination of those. In some cases it's all about the ' assets ' of the business, so both a buyer and seller would benefit from a third party independent appraisal. While sellers will maintain an overall ' glossy ' outlook on assets.... it's buyer beware when it comes to sellers risk. Example: Specialized assets

The quality of the financials and the performance of the business historically dictate what type of financing you will need to complete a transaction. Poor profits, high levels of debt, and other operational deficiencies will dictate finance solutions. Ultimately understanding the working capital and assets are key. Remember also that in the small to medium enterprise area ' GOODWILL ' is rarely if ever financeable.

Oh and by the way the ability to ' sell yourself ' as a manager with skills is key.

Let's get back to our actual finance solutions. They include:

Canadian chartered banks

The Govt of Canada guaranteed ' Small Business Loan'

Asset based loans and lines of credit

Sale leaseback strategies on owned assets


Unsecured cash flow term loans

Seller financing participation - i.e. the 'VTB'

Buyer equity

While larger deals might be able to secure private equity or a public listing for financial success the real meat and bones of the small to mid market area of acquisitions relies on those 7 strategies ( or combinations of them ) that we highlighted above.

If you're looking for expert help and real world financial solutions to 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 in your business acquisition finance 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 ACQUISITION FINANCING EXPERTISE



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


Direct Line = 416 319 5769

Office = 905 829 2653

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

Buying A Company : Acquisition Financing Methods And Options In Canada’s SME Sector

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Key Points To Consider When Buying and Financing An Existing Business In The Small & Medium Enterprise Sector

OVERVIEW – Purchasing or buying a business isn’t just for BIG business . Understand your acquisition and financing methods and options if you’re buying an existing company

Company acquisition financing methods & options are the method by which Canadian business owners/mgrs successfully complete the pursuit of a desired business purchase. Things go awry when the right expertise and finance terms are not achieved. What are essential points and strategies to successfully complete buying a company? Let's dig in.

One of the larger mistakes purchasers make is to focus solely on the ' price / value ' of the company you are looking at. The reality is that financial statements that accountants prepare never are intended to figure out the ' value ' ' price ' of the company. (They do however hopefully reflect the profits and assets of the business)

Successfully getting financing approved and in place to purchase a business is a well known challenge. Larger corporations of course use the capital markets, the deep pockets of public 'cash rich' companies, or Private Equity firms to facilitate a transaction. The SME sector demands a lot more creativity but still offers some solid options for achieving your goal.

The key options to finance your business purchase will probably include one of the following:

The Govt of Canada Guaranteed Small Business Loan - (The ' SBL ‘)

Asset based Loans & Lines of Credit

Unsecured Cash Flow Loans

Vendor / Seller Participation in the Transaction

Mezzanine finance which typically also comes with a small equity participation request

Also, in many cases strategies that include equipment financing and leasebacks and A/R finance may well round out a transaction

Don't forget that in almost all instances some level of owner equity participation will be desired by almost all lenders.


While Canadian chartered banks of course facilitate these transactions their lending criteria has been modified and somewhat tightened since the global 2008 financial collapse.

The key issues in business purchase finance? They are: profits, cash flow, assets, and debt levels. Those 4 criteria will determine the amount and type of financing you need.


Your ability to successfully buy an existing company will come down to the amount of time and expertise you have in ensuring you have explored the right financing options. 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 completing your business purchase.


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 ACQUISITION FINANCE EXPERTISE






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

Direct Line = 416 319 5769

Office = 905 829 2653

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

Loan And Finance Sources In Canada : Business Financing Done Right!

Business Financing – What Could Possibly Go Wrong ?

OVERVIEW – Information on finance sources in Canada. Business Financing and loan needs come with a requirement to understand needs and sources of capital that match requirements

Business financing in Canada , executed improperly, has the possibility to go really wrong! So when it comes to finance sources and loan needs it's critical to have a solid ' lay of the land' to ensure your company is going in the right direction for survival and growth. Let's dig in.

In Canada there is somewhat of a line down the middle when it comes to the types of capital available - it really comes down to ' traditional’, or ' alternative. Those seeking alternative solutions demand more flexibility to the alternative of Canadian banks, and credit unions. Those banks of course have low rates, unlimited capital for your business, but tougher qualifying criteria - all for the right reasons of course.

The irony of the business landscape is that those firms needing financing the most are in fact the majority of the economy these days!

While business owners / financial mgrs associate government with our category of ' traditional' finance they often overlook two solid sources of funding in this area - Govt guaranteed business loans , and Canada's ' SR&ED program . Recent limit changes in the Gov't SBL program make the program very desirable for start ups and earlier stage companies. Additionally SR&ED credits allow firms to recoup in the area of 40% of their R&D activity, and these credits are financeable!

When we talk about things ' going wrong ' it's important to note that any early stage companies work the Angel investor/VC angle. The reality is that only the smallest % of firms really qualify for this type of financing, and the majority of those are in the tech/pharma area.

Some stats indicate that over 40% of all firms applying for the financing they need from ' traditional' sources are in fact declined. So then, given the need for capital for that ' running/growing' of the business what then are some alternative options.

The key alternatives include:

A/R non bank financing

Purchase Order/Contract Finance

Cash flow loans - Secured/unsecured

Royalty Finance

Working Capital Term Loans - 2nd position loans that provide cash for long term working needs

ABL's - These are non bank business lines of credit that bundle a/r, inventory and equipt into one daily accessible revolving credit facility

To make the right financing decision it's important to distinguish between debt financing and cash flow finance. When assets are being acquired owners/mgrs need to consider equipment financing or term loans. Funds for this category should typically not come from operating cash flow.

If you're focused on doing things right and proactively closing on your finance needs seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can help you address our key question ' What Could Possibly Go Wrong'!


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/business-financing-loan-finance-sources.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