Business Financing In Canada : Putting Some Chemistry Into Your Loan And Cash Flow Needs

Looking For Some Business Financing Magic?

OVERVIEW – Information on business financing in Canada. Various types of cash flow and loan needs can work together to provide you with the finance solutions you need to run a business successfully

Business financing in Canada shouldn’t rely on any sort of ' magic ' when it comes to getting the right type of loan or cash flow solution for your business.










In fact when things work well you're more likely to rely on some real ' chemistry'

among the right type of financing solutions for your balance sheet. That chemistry, or interaction of various parts of your balance sheet that will deliver on that ' magic' that business owners/financial mgrs are looking for. Let's dig in.

In many cases financial solutions you are looking for don't even require major increases in sales or expense reductions. The right loan and asset monetization strategy simply accelerates the cash you need to run your business. It's actually a basic business goal - more cash / less time!

Business owners and financial mgrs are constantly challenged on some finance basics. They include managing the assets you already own, ensuring they are properly financed, knowing what options are available for borrowing, and recognizing the benefits that comes with either equity or debt financing, both of which have their own merits. Today we're focusing solely on debt financing and monetizing you assets and sales.

Those businesses that manage their cash flow and working capital better than others are able to show higher levels of cash and hopefully profits!

Short term working capital needs revolve around financing your current assets. Strategies here include:

Bank lines of revolving credit
Non bank asset based credit lines
A/R Financing/factoring
Inventory Loans
Tax Credit Loans (SR&ED)
Purchase Order/Contract Financing
Royalty Finance


Until business owners/mgrs understand how much they need to finance daily operations they will never be successful in cash flow mgmt. And managing those assets such as A/R and inventory in a better fashion will always lower financing costs. Given that most businesses buy on commercial credit terms even managing payables more efficiently leads to better cash flow.

So how much financing do you in fact need for your company? If your business is getting ' larger' and growing ' faster’ you should very much be focusing on financial solutions that fill the gap.

Longer term financing needs can be addressed via other solutions. They include:

Equipment Financing
Sale Leasebacks
Working capital/cash flow term loans (That becomes permanent working capital)

If you recognize the need to focus on the right type of chemistry, and dare we say financial ' magic ' in your business seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you with your loan and 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 :
http://www.7parkavenuefinancial.com


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

Operating Loan Search ? Boom Not Bust Business Credit Line Strategies

There Ain’t Room Enough In This Town For 2 Kinds Of Business Credit Lines ! Or Is There?

OVERVIEW – Information on different solutions for a business Credit Line. Are You Aware of Your Operating Loan Needs and Options?

Business credit line arrangements are often sought by companies that are new, established, or growing (that pretty well covers all the scenarios!!) their businesses. The operating loan is often the heart of a company's financial arrangements yet many business owners/financial mgrs don't really understand all their options in this area of Canadian business financing.

And yes, there are two kinds of credit line arrangements your company can undertake, and time has proven there's room enough in town for both of them, but which suits your firm. Let's dig in.

About those two arrangements. There is of course traditional Canadian bank operating lines of credit. These come with typically a maximum ' credit limit' that you can borrow up to based on historical benchmarks of cash flow, sales levels, and quality of receivables and inventory. Banks of course prefer receivables to inventory as they are more liquid and manageable - and quite frankly they aren't in a position to do much with inventory if something goes awry in your business arrangement with the bank.

The other alternative, gaining more traction everyday in Canada is the Asset Based Credit Line. These facilities are offered by commercial finance companies and mirror bank arrangements really only when it comes to how you access funds and how the facility revolves. In almost all other cases differences are a bit more dramatic.

The solid advantage of an operating loan is the fact that you are only using credit when you need to - the facility revolves and interest is only charged on the funds you are using at any given time. Banks tend to structure these facilities as ' demand loans' which means they can be ' called' at any time. Trust us that's not a call you will always want to take!

To effectively access an operating loans of this type you need to ensure you have some key basics nailed down. They include perhaps a business plan or executive summary, but always your historical as well as up to date financials and a cash flow forecast. While asset based line of credit lenders don't place over emphasis on personal credit of owner’s banks insist that the owner demonstrate personal credit worthiness and external assets as backup collateral.

Asset based lenders focus on the hard and liquid assets of your business, and typically lend significantly more than the bank - offering up of course more liquidity, but it's important to note that that always comes at a higher cost of borrowing than the bank. Typical margins on asset based credit lines tend to be 90% for receivables, and a pre set % for your inventory based on a hard look at the type of inventory your business carries.

Asset credit lines also differ substantially from banks in that they will almost always lend against your fixed assets as a part of your borrowing line. That's a key difference, especially in companies that are capital intensive.

If you're looking to ensure your business credit line search is a boom and not a bust 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 operating loan 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 :
http://www.7parkavenuefinancial.com


7 Park Avenue Financial

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

Direct Line = 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

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

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


Stan Prokop

Business Financing In Canada: Your Secret Code To Cash Flow Finance & Funding Assets

Looking For A Reality Check On Business Financing Success?

OVERVIEW – Information on business financing in Canada. Cash flow financing and funding assets requires a clear knowledge of market solutions that fit your business, industry, and financial model

Business financing in Canada requires, more than ever, some ' financial intelligence'

on behalf of the owner/financial mgr/entrepreneur. The ability to know how you are funding assets in the short and long term is what cash flow finance is all about. And it might just be time for a reality check! Let's dig in.

Naturally the more you understand your business financial position and the options available to finance your company positions you for success. How you use your business financial intelligence comes from understanding your numbers. Looking for a ‘ secret code ‘ – In fact top experts tell us that those companies that use their business financial intelligence properly when it comes to financing their business stand head and shoulders above their competitors

Financing your company comes from understanding what your real profit is, what the assets on your balance sheet are truly valued ( and therefore financeable ) at, and how those two parts of your business always come back to ... CASH FLOW!

Warren Buffett has another term for all that - He calls it ' owner earnings' and says it’s combo of operating your business on a daily basis , investing in new assets, and ensuring owners also have the ability to properly take money out of the business.

It's easy for most business owners to understand that they need cash to pay bills, buy new equipment and invest in the future - in some cases with real R&D expenses.

When a business is growing it's very easy to focus less on cash flow - when early warning signs start to emerge around cash flow and funding problems it’s time to consider all your business finance alternatives .

Those alternatives? They include

A/R Financing

Inventory Finance

SR&ED Tax Credit Loans (R&D refunds)

Non Bank Asset based lines of credit

Equipment Finance/ Sale Leasebacks

Purchase Order Finance

Unsecured Cash flow loans

Those solutions are of course the alternative to Canadian chartered bank solutions. While alternative financial solutions we've mentioned are typically more expensive they are much cheaper than looking for new owner equity. While the debate seems eternal on whether Canadian banks support the SME sector in Canada it's comforting to know there are in fact more new options than ever before.

Business owners/mgrs that run their business soundly around things like accounts receivable turnover, inventory turns, and proper financing of new assets will always have the upper hand in negotiating new finance solutions. It's also easier because when things head in the wrong direction new forms of financing are more easily negotiable.

If you're looking for a true reality check on your business financing options in Canada 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 cash flow financing 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 :
http://www.7parkavenuefinancial.com


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

Buying A Business In Canada : Which Company Acquisition Financing Loan Works Best For You?

3 Things You Need To Know About Buying A Business & Financing The Purchase

OVERVIEW – Information on buying a business in Canada and the techniques and key issues around company acquisition financing . 3 key factors can play a role in the successful purchase and finance of an existing business or competitor

Buying a business in Canada may not be as challenging as you might think. Although some maintain credit markets are ' tight ‘, transactions with the right fundamentals and homework done still make a lot of sense. 3 key points cannot be overlooked. Company acquisition financing is in fact available from a number of sources - Here they are, so let's dig in.

Valuation, i.e. what you'll pay for a company is of course key. Overpaying is not our recommended strategy! , and underpaying can of course reveal a number of issues... much later! So the business owner/ entrepreneur/ financial mgr must know how to analyze the real value and ' earning power ' of the business you're looking at acquiring... or merging with.

That valuation process if of course accomplished by taking a hard look at those financial statements - either on your own if you have got some expertise, or an expert business advisor in this area. What in fact are you buying? When you think of it, it comes down to assets or cash flow/profits. What you can do with those ' assets' is equally as important
.
Who can in fact assist you in the entire valuation, and financing process? It's all about getting access to the type of business and financing advisor who can help you get information, determine real value, and then of course structure and assist in financing the deal via the proper strategy. You're looking for someone to work with you, not for you - someone totally focused on what you are trying to achieve.

That whole process of assistance will pay off in dividends later, only because you got a good value for the company you're buying, the deal was done with the right amount of confidentiality, and you put the right legal and financing structure in place.

The ability to ' pick apart ' the financials and put a matching company acquisition financing deal in place is key to success. While a fair price makes sense to both buyers and sellers as a buyer you want to know what level of financial success you can take the business to with your mgmt skills and industry expertise. Things like the state of the industry you're in, product and service reputations, etc. are key.

Look at trends in operating ratios and sales and benchmark those against competitors. If the company want managed properly in the past you might need all new levels of capital and financing.

Financing to both acquire and run the company is important .Set up a list of key issues you want to explore and ensure you can tackle each one. Those issues include a total understanding of profits, what working capital and credit lines you need, and what those assets are really worth and contribute.

Financing for buying a business in Canada comes from a variety of sources. In many cases a ' combo' approach works. Those solutions? They include:

Franchise Loans

Govt Guaranteed Small Business Loans (they are not as small as you think

Bank loans

Asset based lines of credit

Equipment financing

Unsecured cash flow loans

Vendor takes back strategies


So, a recap of our 3 critical issues. They are valuation, using the right expertise and advisors, and understanding how those financials will take you to the right business finance strategy.

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 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 :
http://www.7parkavenuefinancial.com

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

The Key To Working Capital Financing - Asset Based Lenders

Information on working capital financing solutions in Canada as provided by Commercial Asset Based Lenders

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 provide 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 - 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

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
















Article Source : http://internationalexpertdirectory.com/search-articles/content/finance-tax-banking/the-key-to-working-capital-financing-asset-based-lenders.html

Financing Business Growth In Canada : Loans & Capital Strategies

The Fine Line In Growth Financing For Your Business

Information how owners/financial managers can obtain the right loans and capital for their business. Financing business growth properly determines your growth success

Financing business growth challenges in Canada requires the right type of loans and capital strategies. Does your firm have what it takes? And talk about the fine line of knowing how much debt to take on, how fast your company can grow ( before imploding ) and whether in fact other strategies that don't require debt can work for your business. Let's dig in.

Running out of funds in your business will often lead to difference levels of financial distress. Again, that's our ' fine line again, growing, surviving, or failing - the ultimate business tightrope.

Smaller businesses, including most the SME COMMERCIAL firms in Canada are private and have to forget about raising capital and stock publicly. It's great for large well known and successful companies, and close to impossible for the rest.

While it's definitely possible to run your business on negative cash flow for a period of time that strategy ultimately ends when you're at the point of being unable to meet operating expenses and loan/creditor commitments.

5 basic sources of capital exist for your business - some of them internal. They include:

Suppliers/landlords

Canadian chartered banks

Asset based lenders

Equipment finance firms

Commercial finance companies providing receivable financing/inventory loans - Their services include factoring, confidential receivable financing, tax credit financing, sale leasebacks, etc

Thinking/Dreaming of growing your business? Cancel that strategy if the patient (your company!) exhibits the following symptoms:

Slow payments/Delayed payments to your suppliers
Negative business credit report items
Poor operating ratios - dso/inventory turns, etc
Negative industry issues

The challenge of growing your business when it comes to proper financing is hard enough in good times when you're making money; your industry is thriving, etc. That challenge can often border on the seemingly impossible if your overall financial picture isn’t positive

Your overall balance sheet health will often drive what type of financing you need. It is in fact relatively easy to obtain growth financing if your firm has assets and realistic growth possibilities. That's because asset based loans totally focus on the collateral in your receivables, inventory and equipment.

Asset based loans and lines of credit typically ' replenish automatically as your business grows and turns over its assets.

Looking to walk that ' fine line' tightrope in growing your business...properly? 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 financing business growth.


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


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 Purchase Financing In Canada : Winning Tactics To Buy A Company Successfully

Smart Strategies To Finance A Business Purchase In Canada

OVERVIEW – Information on business purchase financing in Canada. Numerous options to buy and finance a company are available to owner/entrepreneurs

Business purchase financing in Canada
requires ' smart' strategies to complete a transaction that make sense for both the buyer and the seller. In fact there are some proven winning tactics to effectively complete acquiring a business - even your competitor! Let's dig in.

Whether purchasers like it or not the amount and type of financing capital you can raise will often have a dramatic effect on the size of company you are looking to purchase, or merge with. We're talking of course of a combination of both debt and owner equity.

Of course valuation methods differ on that ultimate purchase price, and valuing a business from both the sellers and buyers perspective is an entire conversation for another day - suffice to say that good deals are completed when a fair purchase price is agreed upon.

If one expectation is clear in business purchase finance it's that there must be a reasonable amount of both debt and owner equity. As important is the fact that different types of finance will require more owner equity. When using bank financing it is safe to assume a good level of owner equity/down payment will arise.

When buying a company that has profit and financial challenges the purchase price will more often than not be very attractive - the challenge being ' the turnaround required.

In many cases sellers are willing to participate in the sale of the business to you. That's known as the 'VTB ' - the vendor take back and can be a strategic part of your overall financing plan.

Caveat Emptor - while the majority of banks or commercial finance companies view vendor take backs as quasi equity, in some cases this might simply be viewed as another form of debt - therefore subject to all those same capital/ debt equity issues .







What are the key elements of positioning your purchase of a company for a commercial finance company or bank? They include:

A solid business plan and operating strategy

A clear overview of the industry (which hopefully is not ' out of favor ' currently)

Ownership/mgmt experience

A financing plan for sales/ growth and profits

What then are the key mechanisms used to finance a business purchase? Note also that some of the finance strategies listed below is often a combination of financings depending upon how complex or large your transaction is -

Business Purchase Finance Solutions:

Canadian chartered bank term loans

Mezzanine financing / Cash Flow Loans

Asset based term loans or non bank business credit lines

Sale leasebacks / Equipment financing

Govt of Canada Guaranteed Small Business Loans

If you're looking to buy a company and want to ensure you've got a winning finance strategy in place 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 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 :

http://www.7parkavenuefinancial.com

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