Management Buyout Funding In Canada : How To Properly Address Your Buy Out Finance Opportunity

Smart Ways To Finance A Management Or Leveraged Buy Out - SME LBO 101!

OVERVIEW – Information on best strategies for a management buyout funding transaction. Buy out finance leverages assets and allows mgrs or entrepreneurs the ability to finance a business purchase creatively

Buy out finance interestingly enough used to be known (in the old days) as bootstrap acquisition financing. While ' bootstrap' is a commonly used term today management buyout funding has upgraded its name to ' lbo ' - aka ' leveraged buyout '.

Enough with the terms, right?! We're examining how business owners, mgrs, and entrepreneurs in general can utilize the financing to acquire a business. Let's dig in.

While it's a common belief that in general a company would prefer to avoid ' debt ‘, used properly, and using the assets of an existing business a solid acquisition opportunity emerges that otherwise might not be possible.

Even more interesting is your ability to maximize the true value of the assets you are acquiring, in effect ' leveraging' them to finalize your acquisition. While we see a lot of movies around Hollywood’s take on LBO's and the corporate raider the true reality is that such financing is a solid tool in the Canadian SME marketplace, providing an alternative to acquire and grow businesses.

Why do business people consider management buyout funding? Clearly it's to maximize on opportunity. Current low interest rates, available credit from banks and especially non bank lenders, and the ability of the new owners/mgrs to grow businesses and profits.

The essence of this type of financing is all about the assets in the business being acquired, as well as the new owner’s ability to generate cash flow from those assets. In effect the acquisition is paying for itself!

Naturally a fine balancing act occurs given that the amount of new debt taken on also has the ability to bring on financial distress if not managed properly. New owners of the business also have to ensure they have the ability of course to acquire new assets or technology that might be required.

What do you need to cover off when it comes down to the basics of buy out finance? Issues include the fees involved that come from financiers or advisors, the amount of interest you'll be paying, and the types of debt that will reside on the balance sheet when the transaction is completed. Almost all businesses need revolving credit lines, and they must be able to meet the needs of the business.

Who can assist you in financing a mgmt buyout? Typically its Canadian banks, non bank commercial finance firms, Asset based lenders, and mezzanine finance companies. Naturally all of these will have different rates, terms and structures. Consider seeking out a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you in making management buyout funding a success around your business acquisition.

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

Condocorp Loan Financing In Canada: Condo Term Loans Make Absolute Sense In Numerous Circumstances

Condominium Corp Financing : Reviewed & Understood

OVERVIEW – Information on condocorp loan financing in Canada. Condo term loans are desirable and effective when constructed properly with the right business financing advice.

Condocorp loan financing
needs arise out of numerous situations that confront directors of the condo corp as well as the owners they represent. While it may well be that cash and reserves cover needed investment or repairs/upgrades it is also a case that borrowing via condo term loans must be considered. Let's dig in.

There are numerous reasons , many of which we will cover for condominiums to seek special financing . That financing is of course the alternative to depleting the condo corp reserve, or.. heaven forbid, issue a special assessment to owners! In many case while many condominium owners and their mgmt might maintain a positive and healthy reserve the full depletion of that reserve is highly undesirable.

While good planning and cash flow forecasting and reserve analysis is the essence of any solid condo mgmt owner/mgmt team surprises often occur, as they do in any business.

Condo repair and upgrade financing is clearly a specialized form of financing, and in many cases the transaction certainly isn’t ' collateralized' in the same manner as a typical business corporate entity might be. So it's clear that for the condominium corporation to borrow effectively the expertise of a solid loan application is required. That ability to translate the condo corps payment ability into the real world of cash flow is critical.

In many cases Canadian chartered banks don't really offer this type of financing, it's highly specialized as we have noted. When you consider the facts the individual owners move and the board and condo mgmt company can also be in flux over the years the term 'specialized finance ' makes tremendous sense.

What documents are critical to a solid borrowing plan from a lenders perspective? Key elements are a budget and cash flow forecast, historical and current financials, as well as specialized docs specific to a condominium such as a reserve study. That cash flow analysis is reviewed carefully as it would be with any other normal business operating entity.

While in theory (and law!) the condo corp can issue special assessments and ' liens' on the property those actions are highly undesirable and not how the boards of condominiums like to operate. Boards that intend to borrow by the way require a solid bylaw be in place ensuring the board of directors has full authority to borrow.

Lenders will also want to ensure proper use and disbursement of funds vis a vis the reserve and operating expenses. Characteristics of a good condo corp. loan are that they are for proper repairs that are warranted in ' common element' areas. Condominium repair loans are typically structured as term loans with fixed interest rates. Larger projects might be funded in stages, via ' progress payments'.

Careful care should be taken by the board (as well as the lender!) to ensure cash outflows match the useful life or repair of the asset or improvement.

If you're looking for experienced condominium corporation financing for repairs and improvements that bring financial flexibility and health to your condominium corporation 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 condo term loans that make sense.


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

Working Capital Term Loans In Canada : Why A Cash Business Loan Might Make Sense

Is a Cash Term Loan Important To Your Business? And Here’s How To Get One!

OVERVIEW – Information on working capital term loans and small business loan solutions for Canadian business. When does a term loan make sense for your term?

Business loan needs in Canada that are sought by owners/ financial mgrs basically come down to two separate categories - revolving credit facilities and working capital term loans. There are important aspects of each type of borrowing, and understanding them is critical to financial success. So when do term loans make sense (spoiler alert - they don't always)? Let's dig in.

The key aspect of a term loan is the concept of ' fixed payments’. That defined payment and fixed interest rate make it easy for the owner/mgr to play for repayment through cash flow.

Your ability to pay the loan is essentially judged around a careful analysis by both you, and the lender. That analysis typically comes from careful inspection of your cash flow projections. In certain cases some form of prepayment may be allowed at certain times during the loan if in fact it's amortized over several years. We note however that a full prepayment of the loan might come with some sort of penalty as the lender assumed the loan would travel its full course!

As we said, key in understanding your needs around a business term loan is the use of its proceeds. In some cases it is used to acquire an asset such as equipment - we would note of course that need can also be accomplished via equipment lease financing in Canada. The whole issue of ' lease versus buy ' is a subject for another day, as there are merits to both.

The optimal use of a working capital term loan is when its proceeds are used to generate more cash flow or profits. That's when it's critical to understand asset life as well as having a good handle on your projected cash flow.

How do commercial lenders ' price ' the cost of fixed term loans? It's simply a matter or risk and cash flow assessment. Rates will fluctuate with the term and amount of the loan relative to your overall credit risk profile.

Typical requirements in getting a term loan might vary, but often include the business financials, historical bank statements showing inflows and outflows, as well as information on the owners if the business is in the small to medium enterprise (SME) area.

Term loans can range in amortizations of 1 year to 3-5 years if your cash flow warrants a longer term.

What are some common uses of working capital term loans? They might include:

Leasehold improvements / new locations / company moves

Reducing payables

Marketing initiatives

Inventory build up

Purchasing new assets

R&D

If you're focused on a cash flow loan that makes sense for 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 in assessing needs and qualifications.


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

Asset Financing Therapy : Equipment Leasing Companies Deliver On Finance Challenges

Looking for the best odds in financing new assets?

OVERVIEW – Information on asset financing solutions in Canada. Equipment leasing companies deliver on your finance needs

Asset financing in Canada sometimes just requires a certain level of ' therapy '

when business owners/mgrs consider acquiring new assets.

Solutions provided by leasing companies in effect provide your best odds (even if you're not a betting person!) in solving that business finance challenge. The dictionary defines ' therapy ' as an ' act that relieves tension' and equipt finance solutions certainly do that when it comes to the challenge. Let's dig in.

Leasing is all about using and not owning - that’s the basic simple premise. The reasons why 80% of all North American businesses at some time or regularly lease assets is that they want to use cash for running, expanding, or growing their business - sometime even buying another business.

Where it gets tricky is knowing which lease company to use as the industry is somewhat fragmented. You can deal with an independent firm, or in some cases divisions of large corporations or banks. The end solution will always be the same though - access to capital to buy equipt with a monthly cash flow outlay that matches your firms financial profile.

If there is one standout feature of equipment leasing companies it's their ability to provide special expertise for a lot of industries that are not mainstream, or where asset life and specific use is unique. By the way the other standout feature of lessors is that it is generally acknowledge by all experts that lease financing is easier to obtain than bank term loans.

Is there a clear path to understanding when the lease finance solution will work for your firm? In fact there is and we think we can summarize it as follows:

Owners/mgrs seeking lease finance should understand the length of time the asset will be in use at their business

Will the asset still have value at the end of the lease and who is best to address that value - you or the lease company - that is reflected in your monthly payments by the way, especially in ' lease to use' transactions such as operating leases

What is your cash flow situation relative to credit approval and cash outlay?

If you're looking to beat the odds in asset financing needs 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 equipt finance challenges,.


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

Commercial Finance Companies In Canada: Hot & Available Loans and Financing Solutions!

Trending Now … Commercial Finance Options in Canada!

OVERVIEW – Information on business financing solutions offered by commercial finance companies in Canada. What you wanted to know but were afraid to ask on various loans and asset monetization strategies for cash flow and working capital needs

Commercial finance companies in Canada are often the alternative and solution provider for loans and financing solutions. In other words... they are ... trending! Let's dig in.

One key factor around loan solutions and asset monetization strategies that is commonplace with a non bank finance firm is that they are often ' niche' focused , simply speaking they have a tremendous amount of expertise in certain areas of business finance.

Since these firms do compete with banks they tend to offer a broader range of services and credit facilities. Most importantly they offer solutions that are not provided by our Canadian chartered banks - a good example might be purchase order financing or SR&ED tax credit financing for refundable tax credits.


While is it sometimes common to refer to these financiers as ' asset based lenders' the reality is that the term is so general that further clarification is required. In almost all cases Canadian banks prefer, in fact insist upon being your ' senior lender ' - which very simply means they typically have a charge on all assets of your company, including , unfortunately, the assets they are ' not ' financing!

The most common senior lending facility tends to be the business revolving line of credit. These facilities, whether from a bank or a non bank commercial finance company offer revolving credit for daily operations? The main difference in a business credit line from a commercial finance company is that it is often more ' asset ' focused as opposed to ' ratio' and ' covenant' focused as with a bank. That translates into more credit approval and higher borrowing power!

Term loans and other bridge loans are also offered by commercial finance firms. They tend to be shorter term in nature and are often a ' bridge ' to future financing.

While unsecured cash flow loans are often sought by business owners/financial mgrs, such a bank loan will come with strict covenants and ratios around your cash flow. These loans are often more easily obtainable from commercial finance firms, albeit at a higher rate. Another term for those loans in particular is 'mezzanine ' financing.

Statistics tell us that over 80% of all Canadian businesses finance new assets via equipment leasing companies. Whether it’s for growth or asset renewal these equipment finance solutions are the backbone of fixed asset financing in Canada. Assets financed include technology, plant equipment, rolling stock, etc

If you're focused on understanding which non bank commercial finance companies can help your business operate or grow seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can ensure access to funding solutions that make sense for your particular business.



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

SRED Tax Credit Financing In Canada & Funding Your SR ED Claim

Special Delivery On Your SR&ED Refund : SRED Loan Financing

OVERVIEW – Information on sr ed tax credit financing in Canada. SR ED Financing is a viable way of funding your SR&ED refund and monetizing that asset today

SRED Financing allows firms that have an r&d program to connect today to the cash flow refund they were waiting for - it's as simple as that . Monetizing that refundable tax credit is, via a SR&ED loan, is a process, as is , of course the whole process of preparing and applying for maximum refund. Let's dig in.


Not all Canadian business owners and financial managers are aware of one of the greatest government programs still currently in existence at both the federal and provincial level. The formal name for the program is Scientific Research and Experimental Development program. Most people call it simply the SRED (SR &ED) program; we have also heard many people pronounce it as 'SHRED 'also!

We put Canadian businesses into two categories when we discuss the program - those that don't know about the program period, and those that know about the program but are not aware that their claims can be financed.

SR ED financing is an excellent source of short term cash flow, and allows a company to reap the benefits, in cash of funds that they have put into R&D.

It is probably useful to do a short overview - let's call it a SR ED primer!
The program is administered at the federal and provincial levels of the Canadian government. It is very important to note that the SR ED grant (yes it's non-repayable) is for Canadian private firms only - it does not apply to public corporations the program is applicable literally to almost every type of firm and industry in Canada. A company files it's claim at the same time it files it's year end tax return.

In our experience the majority, we feel almost 95%+ of claims are prepared by an independent third party. They have expertise, credibility, and have a strong knowledge of the program and the government requirements. We would further point out that if a claim is not prepared by a qualified third party then there may be an issue in financing the claim - not always, but sometimes.

Claims can be expensive to process and prepare, and in general the industry has evolved into two types of costs associated with the claim. What are those two cost scenarios?

1. Customer pays a third party in full for time and preparation involved in the claim. The customer reaps the full benefits of the claim when it is processed

2. Customer signs an agreement on a contingency basis, and pays the preparer of the SR ED a portion of the claim when it is approved - bottom line he has no cash outlay and the SR ED consultant is at risk re time and preparation involved in the claim.

Let's now focus on financing of the claim. The financing of the claim is somewhat of a boutique industry in Canada, and requires specialized knowledge around the quality and collateralization of the claim. The Canadian banks, as a rule, with only minor exceptions, do not make SR ED loans.

Claims are financed at approximated 70% of loan to value. What do we mean by that? We mean that loans on SR ED are made to 70% of their combined federal and provincial amount. Example - Customer files a claim for $ 300.000.00. The SR ED loan would be for 70% of that amount: = $210,000.00.

Claims can be financed relatively quickly when working with a qualified financing expert in this area. It certainly is possible to complete a transaction in a couple of weeks, from initial discussions.

Naturally some level of due diligence is required on the firm, and we point out that many firms are in fact total start ups and are filing their claim for the first time. An additional financing note is that first time claims are scrutinized more closely as the customer at that point does not have a track record in this area. Track records help the financing.

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 the ' special delivery' process on your SR&ED refund.




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 Funding Sources In Canada: Clarifying the Capital Financing Connections You Need

Is Your Business Funding Situation As Clear As The Great Molasses Flood of 1919? Not Any Longer

 

 

 

 

 

 

 

OVERVIEW – Information on business funding sources in Canada. Which financing source offer the right type of debt or cash flow capital that your company requires

 

Business funding sources in Canada often has business owners/financial mgrs looking for the right ' connection' they need when looking for capital and financing solutions. Often times the situation seems clear as mud... or molasses? Let's dig in.

Molasses? We're referring to the Great Molasses Flood of 1919 in Boston - where a large molasses tank burst, streets were flooded and 21 folks lost their lives! That of course isn't the same level of anxiety that business people experience around finance choices, but it often sure feels like it.

How then does the owner/mgr, particularly in the SME (small to medium enterprise) space make those right ' connections' - and, as importantly, what can they expect. It's critical of course to know what any source of capital delivers on. That changes with the current financial profile of your company and the perceived risk that lending sources associate with your business... or industry.

When owners/mgrs start the financing process and are looking for the right connection to capital they are often most concerned about the cost of that capital. These days, depending on the risk profile your company generates that rate can be 2.5% per month, or 2.5% per annum. Most clients we meet want the latter!

What then are those key factors that lenders utilize when you're on the hunt for sources of financing? They primarily are:

Size of your company

Stage of Growth - i.e. start up, early stage, growing, mature, etc

Assets on the balance sheet

Cash flow generation potential

Industry and your reputation


Many owners/mgrs we meet are often incorrectly focused on the actual type of financing they need. In fact they don't even understand the wide level of choices they have in cash flow financing and debt financing.

Those sources? You'd be amazed at your choices, including:

Cdn chartered banks

Receivable and Inventory Finance providers

Asset based lenders - financing both assets and credit lines

Leasing companies

Sale leaseback specialists

Mezzanine finance

Royalty finance solutions

PO / Contract finance

Merchant cash flow advances

Naturally some solutions are shorter term focused and provided a temporary fix, while other solutions can bring working capital and cash flow finance in the millions and could be considered long term finance strategies. Safe to say it's important to know whether you're in need of a temporary ' fix ' or a long term capital solutions. That allows you to position your company and negotiate from a level of strength

If you're looking to avoid that ' clear as molasses' feeling we described 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 and capital 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