Business Lender Challenges : Loans & Financing From Lenders That Fit !

Prayers Answered ! Finally A Solid Perspective On The Right Business Lenders For Your Company

OVERVIEW – Information on financing and corporate loans in Canada. Are you working with the right lenders? What type of business lender suits your firms needs via a traditional or alternative finance solution

Financing via the right business lender delivers on the right financing for your business. But the question arises which lenders will provide the right loans and other financial solutions? Let's dig in.

When Canadian business owners are optimistic about their future those sentiments don't necessarily translate into what type of financing will deliver on those aspirations of growth in profits and sales.

Top experts tell us that a solid majority of owners/ mgrs in fact expect their sales to grow which has therefore resulted in the need for additional loans. The way to grow a company is obviously viewed differently by owners - some choose to grow organically while others take the acquisition route - acquiring a competitor or another strategic/synergistic opportunity.

So back to our conundrum. What is the right business lender for your business - in fact quite often the case is plural - which ' lenders' are going to solve your financing challenges.

Let's provide a clear recap of why businesses such as yours are looking for capital/loans/asset monetization strategies. They include:

Expanding their business locally and otherwise

Financing working capital needed for growth

Refinancing existing loans with current lenders/banks

Upgrading fixed assets

Owner equity takeouts

Distress situations

Do Canadian chartered banks take up the slack when commercial financial solutions are required? That debate rages eternal among business owners and financial mgrs. Of particular debate is the fact that the small to medium sized marketplace in Canada, literally tens of thousands of firms potentially like yours feel somewhat underserved when it comes to realistic financing solutions for their business.

Those bank credit lines are sometimes being cut back; doing little for the entrepreneur that is focused on growth, let alone hyper growth! Again recent surveys, albeit in the U.S. indicated that over 66% of all businesses in the SME sector reported on their inability to raise external capital.

What then is the reason that financing is a stumbling block for businesses? Very simply speaking it’s because those businesses are outside the ' credit box ' that traditional financing places on commercial lending.

Worse yet is the time that we see clients have spent chasing the wrong lender , compounded often by their inability to present their business case in a proper format .

If you're looking for:

A/R Financing

Inventory Loans

Access to Canadian bank credit

Non bank asset based lines of credit

SR&ED Tax credit financing

Equipment / fixed asset financing

Cash flow loans

Royalty 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 with financing needs. Prayers answered!


Stan Prokop

7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations

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 - You're Forgiven For Misunderstanding The Term ! Funding & Financing 101

You're Forgiven !

Information on business cash flow financing in Canada. Funding your company requires a basic knowledge of this of used term!

We find that the term, or concept ' cash flow ' is widely misunderstood - having different meanings to different parties.

There are at least 7, if not more, methods in which the term is utilized in a number of areas of finance.

First of all the term is of course just a general term used in finance literature and textbooks relating to investments, etc.

When we see a company financial reports in the press there are often references to cash flow in the financial reports of the firm.

Getting even more specific, there are three parts to any financial statement, the balance sheet, the income statement, and the Cash flow statement. In older times this cash flow statement was called the Sources and Uses statement - simply indicating where a company got the money, and where they spent the money.

Some financial analysts refer to a company's ' funds statement ' and designate the total funds provided by operations as ' cash flow '.

Confused? We're not there yet. Financial managers and business owners use various types of analysis when making long term investments for the company. They use sophisticated financial analysis known as rate of return, payback analysis, and, guess what ' discounted cash flow ' analysis.

When a business owner is planning he will often prepare, and refer to, his ' cash flow ' budgeting.

And finally, business owners and financial mangers refer to; cash flow;
controls as they monitor the flow of funds and the control of those funds inside any company, small or large.

Financing business cash flow needs comes from solutions such as :

A/R Financing

Inventory Loans

Tax Credit Financing

PO Financing

Bank lines

Asset based non bank business lines of credit

Working Capital Term Loans

What becomes clear is that ' cash flow ' has become somewhat of a ' catch all ' wording and is somewhat confusing as more often than not it does not reference actual ' cash ' on hand, or evens the flow!!

Most financial people would probably agree the purest form of ' cash flow ' is in fact one of the items we have mentioned above - that is to say its the cash referred to in the company’s CASH FLOW STATEMENT - we referred to it as one of the three pillars of any financial statement . The common calculation of this number is the net income of the company, plus the depreciation, which was not an actual cash outlay.

In summary, we have seen that the term cash flow means a lot of different things to different people - Business owners, and financial managers should know what method of cash flow they are utilizing, its uses, and how it will be interpreted by lenders, financial analysts, shareholders, etc. Looking for help ? Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success .
And yes, you are forgiven for misunderstanding the term!



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 Finance Canada : A State Of The Union On Capital Sources & Corporate Financing

Are You In The Lonesome Corner When It Comes To Business Financing

OVERVIEW – Information on business finance alternatives in Canada. Financing and capital sources

Business finance challenges and problems often have owners/mgrs feeling like they are in the ' lonesome corner ' as the need for financing solutions and capital sources seems never ending and seemingly unattainable. So let's look at our Cdn version of the current ' state of the union '

in funding your business. Let's dig in.









We're going to assume a couple of things - first of all that as an owner/mgr your goal is to ensure the right amount of liquidity in your business. Additionally as cost is always a consideration in business financing it is a case of ensuring you have the most capital funding at the lowest cost - which is of course driven by your overall credit quality.

The right mix of what you have in the company already (i.e. owner equity) versus the maximum amount you can borrow is what is going to give you what the pros call maximum ' return on capital'.

We mentioned the business owner as potentially feeling as if they are sitting in that ' lonesome corner' - in fact the way to remove that feeling is simply to be more proactive in understanding what capital sources are out there relative to how you wish to use those funds. ' Use of funds' is important as you need to distinguish between ' assets' you need to run and grow the business versus those short term cash needs such as business credit lines.

We can't overemphasize that issue of funds ' matching'. Big mistakes occur when you use wrong strategies - Example: taking cash on hand or accessing credit lines to acquire a long term fixed asset. (Those types of assets should be acquired via business finance strategies such as equipment financing or term loans. It's a case of simply focusing on what those assets will cost and what type of cash flow and profits they will generate over the longer term.

We're always referencing the fact that the owner/mgr has to sit back and get a sense of what stage their company is in. Those stages are actually very defined. They are:

Start up

Growing / emerging

Mid market

Mature and or large publicly traded

The capital sources these firms need vary and include:

A/R financing

Securitization

Bank lines of credit / term loans

Non bank asset based business credit lines

Equipment Finance

Refundable Tax Credit Finance

PO Financing

Unsecured cash flow loans

That’s our ' state of the union' on capital sources in Canada. If you want to exit our ' lonesome corner' analogy and access the financing and capital sources your firms needs, today and tomorrow... seek out and speak to a trusted, credible and experienced Canadian business financing advisor 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

Business Financing In Canada : Grown Up Loan & Growth Finance Solutions

Opportunity Lost – Is Your Company Missing Out For Lack Of Business Financing

OVERVIEW – Information on business financing options for Canadian companies . Growth Finance and loan opportunities identified and analyzed

Business financing in Canada often faces the challenges of ' opportunity lost ‘. Growth finance and loan and finance solutions are a part of your company ' growing up ' - so we're examining those ' grown up ' solutions that can accelerate your business success. Let's dig in.

Naturally it's a fine line between taking on too much financing versus the ownership capital in your business. Nevertheless it's every owner/mgr/entrepreneurs dream to not miss out on growth opportunities. Again it's that balancing act we've referred to in the past - being too aggressive in growth or simply...missing out and watching your competitors leap frog you.

In truth short term financing goals are probably easier to achieve than long term fixes. But if you take on the right type of debt and manage your cash flow and finances well opportunities abound.

In some cases , particularly for start up and earlier stage companies debt financing and monetizing existing assets is in fact simply a more realistic solution than searching for new owner equity capital.,

It's important to note also that the amount and type of business financing loans are also sometimes somewhat dictated by the type of industry you are in and how capital intensive it is. Also, as your company grows within you industry numerous types of financing emerge as being more applicable.

Loan and growth finance solutions that are a bit more ' alternative ' in nature include:

A/R financing/ factoring

Inventory loans

PO Financing

Asset based revolving business credit lines

Sale leasebacks

More established businesses with track records of achieving some level of financial success already include:


Bank operating credit lines/term loans
Equipment financing

Unsecured cash flow loans

Working Capital term loans


Knowing what type of capital all these solutions deliver on, and what they cost is key go growth finance success. It's all about ' linking' the type of capital you need to those growth opportunities.

As a general rule you need to understand how other companies in your industry finance their business, while at the same time understanding limitations around your current stage of growth and how much debt you either have in place already or are prepared/able to take on. Unfortunately the amount of loan accessibility is sometime also dependent on the lending markets current view of your industry, as some industries occasionally find themselves temporarily ' out of favor'.

If you're looking for ' grown up ' financing seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your 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: Eliminating The Black Holes In Business Finance & Loans

Looking for some Business Financing Therapy?

OVERVIEW – Information on capital financing solutions in Canada. Successful strategies in business finance & corporate loans

Business finance in Canada often has entrepreneur owners/mgrs feeling like they are being thrown into a ' black hole ' - that unique place where things go and aren't retrieved. Not a good feeling. In that case it just might be time for some business therapy. Let's dig in.

From the owners perspective it should be all about being able to as clearly define as possible the amount of funding that is required and how those funds will be used for either short or longer term purposes. Loans and other forms of capital financing come from various sources - knowing where those sources are and what they do will lead to proper business finance success.

The overall relationship between the amounts of debt you carry as well as the amount of owner equity in the business is really the silent driver in biz capital. Talk about a balancing act - where the ultimate goal is to avoid total business failure while at the same time stretching equity and borrowing ability to the maximum reasonable amount.

The interesting challenge in capital financing is that a company gets more return when it has more debt than equity. So we are back to that balancing act again! But don't forget also that while many owners/mgrs have the mindset that debt is undesirable they can also at the same time monetize assets on the balance sheet that will fund a considerable amount of operations and growth.

What are those asset monetization strategies? They include:

PO/Contract financing

A/R / Receivable Financing - (Our recommended solutions is Confidential AR Finance

Non bank asset based lines of credit (For those firms that can't access any or enough bank financing)

Sales Leaseback of owned assets

Tax Credit Financing

Royalty Finance

Unsecured cash flow loans

While alternative finance strategies are becoming more popular every day, as well as more abundant it's also important to note they typically cost more - however it's always a cheaper route than considering new equity/ownership dilution. Quite frankly it might come as a surprise to some but earlier stage and smaller growing companies in the SME Marketplace can probably obtain debt and asset monetization financing easier than new equity!

If you're focused on emerging from that BLACK HOLE

of business financing the right strategy might well be to seek some business financing ' therapy' by talking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you with that curative process of acquiring the right amount and timing around capital financing and 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 Alternatives : Removing Mediocre From Your Loan Funding Needs

Business Financing Action Plan : Got One?

Information on business financing alternatives in Canada . Different types of loan funding for your company come with different requirements and chances of success. Here is what you need to know

Business financing alternatives in Canada are best sought out and accomplished via an action plan. If a business is constantly struggling in its loan funding needs a sense of mediocrity sets in - that's not a good thing. Let's dig in.


While the goal of the company seems simple - i.e. access business capital in fact that journey is a potential complex process. Potentially there's a lot of turbulence

out that that comes in the form of issues in your industry, competition, and the current state of your financials.

What then are key factors that will ultimately affect your success / failure in accessing business finance solutions? They include the actual resources you have on your balance sheet, the amount of capital that owners have committed already to the business, and the knowledge that business owners/mgrs possess around sourcing and closing on funding needs.

It's important to note also that finance solutions can be short, intermediate or long term in nature. Choosing the wrong financing for the wrong timeline will simply have owners/financial mgrs hitting major roadblocks quite quickly. The goal though should always be simple - access capital at the best cost and ensure you haven't overlooked new financial innovations that abound in the marketplace. And sometimes it's a case of looking at a temporary solution versus a total solution.

How can the business take a hard look at its current financial position? Quite frankly it's all about the basics - taking a hard look at current payables, understanding your days sales outstanding, inventory turns ( if applicable )and figuring out how much debt you can take on . That's if in fact debt is the solution - in many cases simply monetizing assets on your balance sheet gets you to the goal line.

In many cases your current lenders may not be in a position to work with you on new financing - that might be because your firm can't meet those ' ratios' and ' covenants' that banks and other senior lenders seem to totally focus on. In many cases where we meet new clients it's a case that current financing arrangements are in a state of default either technically or informally via broken relationships. It's time to move on.

What are in fact the solutions available to your business from a view point of operational financing or growth financing? Traditional and nontraditional alternative finance solutions include:

A/R Financing/factoring/ Confidential Receivable Financing

Inventory Loans

Bank credit lines/term loans

Asset based business lines of credit

Financing existing tax credit receivables (SR&ED)

Equipment Financing/ sale leasebacks

Royalty Finance

Unsecured Cash Flow loans/mezzanine financing

Working Capital Term loans


If you're looking to move from ' mediocre' to highly desirable in loan funding 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 put that action plan in place .





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

Cash Flow Loan Solutions In Canada : How & Why Mezzanine Financing Works

Is It Easy For Your Business To Get An Unsecured Cash Flow Loan? You Decide

OVERVIEW – Information on mezzanine financing in Canada. Does an unsecured cash flow loan make sense for your company, are you eligible, and how does it work ? Here's your answers!

Cash flow loan
requirements in the Canadian business landscape might often mean that you need some form of mezzanine finance. What are the requirements and challenges in obtaining such financing and how does it work? Let's dig in.

At some point in time many companies realize they need additional capital to grow / expand. In some cases it also might mean they are seizing the opportunity to buy a competitor. In some instances this type of financing is a way for owners to take some cash out of the business based on the current assets and cash flow in the business. It's times like these that an unsecured cash flow loan makes the most sense.

In certain cases, not always though the way to think about mezzanine cash flow loans is that they are a mix of both debt and equity. The debt side of that equation is simple. It's an equity substitute that puts more cash on the balance sheet, therefore improving your overall relationship of borrowed funds versus owner funds.

One of the most common reasons owners/mgr seek cash flow loans is that the alternative for more senior or bank debt have been exhausted. What makes mezzanine finance even more alluring is that although it's a more expensive form of financing it's never more expensive than equity financing which of course dilutes the owner / owner’s position in the company. Ouch!

We made the statement that mezzanine financing is more expensive, usually in the ' teens' when it comes to interest rate. Why is that the case though? Simply because unsecured cash flow loans are a 2nd position behind any other secured creditors. Although there might be a 2nd lien position on your firm by virtue of the new financing it's clear to all that 1st position security on assets is still always held by a senior lender, typically in Canada a Cdn chartered bank.

The most common explanation of why a mezzanine cash flow loan might be considered ' part equity ' is that in some cases the lender might request a warrant or option to buy into the company based on the financing provided.

While large or public companies use this financing and call it various names - convertible debt, warrants, junk bonds, etc the SME COMMERCIAL FINANCE sector in Canada can safely just call this an unsecured cash flow loan. Simple as that.

Mezzanine/cash flow loans are all about ... you guessed it ' CASH FLOW'!

So to be eligible for this financing be prepared to demonstrate past, present and future positive cash flow.

If you're looking to access forms of funding you may not have previously considered seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success

.





SStan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com
OOriginating business financing for Canadian
companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess oOf 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 :


hHttp://www.7parkavenuefinancial.com



77 Park Avenue Financial

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

DDirect Line = 416 319 5769

OOffice = 905 829 2653


EEmail = sprokop@7parkavenuefinancial.com


'

Canadian Business Financing with the intelligent use of experience '


A

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

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


Stan Prokop













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