Securitization & Other Cash Flow & Business Financing Solutions In Canada

Here's the Good Stuff On Securitization & Other Cash Flow Solutions

Information on securitization as a cash flow financing tool in Canada . Business finance solutions can come in non traditional formats that still provide solid working capital needs for Canadian corporations

Business financing in Canada comes in many forms . Securitzation is a financing term that is not commonly used by the average finance person, let alone the average lay person who has no detailed knowledge of business financing and alternative financing. The term ' securitization' became increasingly well known during the financial and liquidity crisis that the world experienced in 2008/2009. We discovered that one of the main causes of the world wide financial collapse was, in effect, the securitization and marketing and sale of mortgages.

Securitization is an alternate form of funding for corporations. When it works well it is an excellent source of funding for many organizations. Securitization is a form of structured finance.

How does it work? A company or organization takes certain assets that are desired by various investors. These assets are most typically receivables, contracts, car loans, credit cards, mortgages, etc. The quality of these assets is key in the entire securization process. We watched the financial world fall apart when people discovered those securitized mortgages that were bundled in the United States had a very low credit quality.

One of the reasons investors like securitized assets is that the risk is spread among hundreds, probably thousands of different borrowers. This diversifies risk. We continually here how one needs to diversify to control risk, whether in business or in our personal financial affairs. The cash flows that come out of that pool of assets backs up the quality of the investment by the buyer of the securitized asset.

For a transaction to be properly securitized there has to be a strong level of predictability in the repayment of the loans, leases, mortgages, etc.

How are Securitizations structured? The assets become known as a' pool 'of assets. Financial analysts or the credit rating agencies ( Standard & Poors, etc ) assign a credit rating to this newly created SPV. ( Special Purpose Vehicle ). Investors buy this pool of assets because they theoretically understand the asset quality and the risk. There are many subsets to the risk which we wont cover in our article - for example concentrations of assets or customers, etc

The pool of assets is usually ' serviced ' by the seller. He collects and maintains the portfolio - of course it has he who also created the portfolio of assets. The ongoing collection of the portfolio flows back to the investors who purchased it.

Securitization has become more and more popular because it has provided great liquidity to the financial markets.

In summary, the securitization flow chart is as follows:

A seller creates the assets
A SPV is formed around those assets
Investors purchase the SPV
A trustee monitors the flow of cash, collections, etc.

Of course as one can imagine all sorts of lawyers, accountants and financial analysts have a healthy hand in various aspects of the above process flow!

The benefits of securitization can be summed up as follows:

* It provides cash flow to many companies who would otherwise have to wait years for customer payments, etc
* Profits from the sale of the pool of assets allow a company to grow and create more assets
* When properly structured there are certain balance sheet enhancements - i.e. the company selling the pool gets cash but does not take on debt.

If you're focused on alternative forms of business financing including :

A/R Financing

Non bank asset based lines of credit

SR&ED Tax Credit Financing

Unsecured Cash flow loans

Royalty Finance

Bridge Loans

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 innovative cash flow solutions that work for your firm.




Stan Prokop - founder of 7 Park Avenue Financial –

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 Financing In Canada : Which Cash Flow Loan Or A/R Factoring Solutions Works For Your Business?

Looking for a Laser Like Cash Flow Financing Solution?

OVERVIEW – Information on working capital financing in Canada. Whether it’s a factoring cash flow loan or other finance solution numerous options exist for the business owner/mgr

Factoring / Canada – these two words , relatively speaking , are new to each other. What is behind the sudden increase in popularity and usage of this age old financing concept which has been in place for hundreds of years around the world? Let’s get laser focused

First of all, it’s simply a new choice for Canadian business owners and financial managers – they either have been financing their receivables with their bank, or in many cases, have been unable, for a variety of reasons, to negotiate such a facility. The challenge for business financing in Canada is even more difficult based on a company’s smaller size coupled with the current challenging business environment of 2010.

Factoring in Canada, if you have the proper facility put in place, allows you to provide your firm with virtually unlimited cash flow based on your ability to generate valid receivables as you grow your business . For small and medium sized businesses this is absolutely critical – they didn’t coin the term ‘cash is king’ for nothing!

While the concept and general practice of factoring in Canada seems simple once the business owner learns about it we feel the greater challenge is simply to determine what the best factoring solution is for your firm. That is where an experienced, trusted, and credible financial advisor might be of great assistance. Factoring, if entered into in an improper fashion, can be very paper intensive, and also have significant ramifications on how you run your business, and how your business is perceived by others – by others we mean bankers, suppliers, and yes, even internal staff.

As you contemplate a Canada factoring solution it is necessary for you to ensure you have , at a minimum, covered off the basics - A good starter is simply ‘ Does my firm qualify for such a financing facility?’

Your firm clearly should be labour or product focused – very capital intensive industries sometimes are not the best candidate for a factoring facility in Canada.

While no one wants to finance a firm that is in somewhat of a ‘death spiral ‘the exact opposite of that often makes the firm a very solid factoring prospect – that is to say you are growing too quickly, with annual growth perhaps much more than the traditional 10% or so that we see in stable commodity oriented industries in Canada. High growth and factoring make the perfect marriage. Why is that? Simply because growing sales, if managed well, mean growing profits, and traditional financing strategies such as bank lines or working capital term loans are not a good fit for explosive growth firms. With explosive growth you get all the cash flow you need from factoring.

Many industries that are cash flow and labour intensive, a solid example would be freight companies or staffing / placement agencies require cash flow frequently through the month. A properly set up factor facility will allow your firm to generate cash flow from your receivables whenever you need it.

In a lot of firms there as seasonal issues, big contracts, and generally what’s known as ‘bulges ‘in normal requirements. Factoring solutions fit these sorts of bulge needs perfectly.

We meet with business owners that come to us that are start ups or relatively new – they are not aware they are often great candidates for factor financing (also sometimes called invoice discounting) but they clearly have discovered they are not candidates for traditional bank type financing that requires solid balance sheets, historical cash flow, and good operating ratios that typically the institutions such as the Canadian banks look for.

You also are a perfect candidate for Factoring in Canada if you have receivables from large slow paying customers. These larger firms might be good profitable customers for your business based on just the issue of sales volume, but they clearly tie up your working capital when your firm is not paid in 60, or sometimes even 90 days.

In summary:

Factoring is relatively new in popularity in Canada, it is gaining traction quickly. Careful analysis should be spent of whether your firm qualifies for such a facility – it has to work for you and the lender. If in doubt, and many are , because anything new can be perceived as complicated , enlist the services of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success in this area of Canadian cash flow financing !
P.S. Numerous other cash flow financing solutions may also work for your firm – These include :


Asset based credit lines

SR&ED bridge loans

Unsecured cash flow loans

Sale Leasebacks

PO Financing

Royalty Finance




Stan Prokop - founder of 7 Park Avenue Financial –

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 Solutions & Bank Loans In Canada : Solving The Term Loan Challenge

Everything You Wanted To Know About Bank Term Loans and Alternative Financing Solutions

OVERVIEW – Information on the term loan process in Canada. Here’s what you need to know on achieving success with business financing solutions that include bank loans and other working capital and cash flow alternatives

Business Loan expertise ? Most business owners and financial managers know the story - the bank has the money, you need it. Term loans can be a tough negotiation for any business owner. Part of that is simply because the final conditions imposed upon the bank can be somewhat restrictive.

As simple as it may seem, the business owner has to think like the banker - that allows one to reverse the negotiation stance to some degree. Also, it's all about 'strategy'.


We would point out also at the outset that there are a number of banks, and an equally larger number of independent finance firms that offer term loans. The business owner should ensure he is aware of the market players, and who offers what. The goal tends to always be the same though - get the largest loan at the best rate. Not easy to achieve!


Business people as we have said, should have a solid strategy in the entire process, and believe me it's a process.

Borrowers can benefit by doing research into the banks current market and objectives in commercial finance. There will be issues and objections raised by the bank on the owners submission - they should be dealt with in a manner that keeps the loan submission positive in nature. Thousands of books are written on the art of negotiation, and no business owner can expect to reasonably get the full amount with all terms that he or she asked for.


Term loans are generally for long term assets. They are paid by future cash flows and earnings. That bring two bear two key source of information that should be properly prepared - what has the business done financially, and what has it he potential to achieve - i.e. a forecast.


Banks focus on cash flow - so they will want to carefully look at what the risk is to those future cash flows. Business people should be prepared to talk thoroughly about their own particular industry, many industries are currently out of favor - example: automotive; many are sought and in favor: 'Green' industries - (solar, et al).


The owner should anticipate what risks the bank or other lender will perceive in their industry - they should be prepared to talk to those risks. Owners should also remember that although they need this term loan now for this asset, that the bank will also want to look into what else they might need in the future, which might have the ability to restrict the cash flow somewhat.


Unfortunately more often than not the lender looks to historical cash flow to reflect future cash flow - therefore is a company has lots of changes in sales and profits over the years the why's and wherefores around these need to be discussed and presented.
While the focus is definitely on cash flow the balance sheet will definitely come under scrutiny. Weaknesses in the balance sheet need to be tabled and discussed.


Banks love 'ratios'. We have called them 'number relationships' .
It is highly recommended that the business owner review and understand some of those 'ratios 'which will come under scrutiny. Typically those are liquidity, operating, and fixed asset coverage ratios.


In summary, all banks and other finance firms have very similar and basic analysis models around term loans - they involve industry and financial statement analysis, focusing as much on the past and future as the present. It behooves business owners and financial managers to understand some of those metrics used by banker, which should, in the long run, limit loan restrictions and get the business owner the capital he or she needs.


By the way, although our conversational focus has been term loans it’s critical for business folks to understand numerous other cash flow, debt and working capital options are available to your business . Those options include:

A/R Financing

Inventory Loans

Asset based bridge loans

Non Bank asset based lines of credit

Unsecured cash flow loans

SR&ED Tax credit loan finance

Royalty Finance

PO 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 your term loan or cash flow needs.



Stan Prokop - founder of 7 Park Avenue Financial –

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

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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

Financing Solutions For Franchise Financing In Canada : Solving The Franchising Loans Challenge !

Your Crash Course In Franchise Financing Loans In Canada

OVERVIEW – Information on business finance and franchise financing in Canada. Financing solutions via franchising loans have some key requirements

Franchise Financing in Canada
is a key part of the total solution that the entrepreneur needs to put in place when considering the purchase of a new franchise or an existing unit. How do you get approved for that financing and who offers these loans? Let’s dig in.

Proper franchise financing, coupled with a solid franchise opportunity helps the entrepreneur assure financial and personal goals will be attained.

When we meet with business owners to discuss their Canadian franchise financing needs they often reveal they have contemplated purchasing their own business for quite some time but that financing was an obstacle. We firmly believe that financing should not be an obstacle to success.

The hard reality of franchise financing is actually very simple - that is that if you have a reasonable personal investment into the business ( we'll discuss' reasonable' later ) , and a decent work and credit history that are some great options for franchise financing in Canada .

Many new entrepreneurs are industry or work focused, and they don’t consider themselves ' financial types '! That simply emphasizes the point that you should be working with a trusted, credible, and experienced franchise financing advisor who can both guide you through the best solution, and in fact get you the capital that you need . It should not be any mystery that a combination of a strong proposal and application geared towards the type of financing you need almost guarantees total success.

If you don’t have a business plan or financial projection for your business you must realize you absolutely need that document. 9 out of 10 of our customers don’t have that plan, or recognize the importance of it. In that case we work with the customer, and prepare the plan based on input from you on your projected revenues, profits, expenses, etc. In our experience a winning plan is geared towards financing and not marketing and advertising.

We do get a little concerned when many new budding entrepreneurs come to us with no industry experience in the business they wish to purchase or enter into. That generally speaking is viewed as a negative, it does not mean you wont are financed, it simply means it’s a negative point that has to be taken into consideration.

Our experience in franchise financing with Canadian entrepreneurs is that a careful well thought our business plan, cash flow forecast, business summary give you a 95% chance of financing success.

In Canada our firm uses a three pronged strategy to finance franchises - we utilize the CSBF program , working capital term loans, lease financing, and oh yes, the 4th piece of the puzzle - your own investment .

We had referenced previously that your personal investment must be reasonable, there is no absolute number that can be tabled here - simply that an owner equity investment of 10 to 30, perhaps more per cent investment usually carries the approval. We can’t over emphasize that each franchise financing differs with client needs re amount, structure, types of assets being financed, etc.

So, our final bottom line - Be prepared, consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success . Have credible info and demonstrate you know your business. Soon you will be on the way to franchising success!


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

Franchising Loan Solutions In Canada : Sourcing The Right Franchising Financing Lenders

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Franchising Loan Solution In Canada : Stalking Those Elusive Franchise Lenders

OVERVIEW – Information on sourcing franchising loan needs in Canada. Locating the right franchise financing lenders for your needs is a challenge you just might need some help with

Franchising loan needs of course involve franchise financing lenders. That search for the purchase of your business can seem very elusive to many entrepreneurs, particularly those that are new as franchisees.

How then do we find the right lender for our needs, and who in fact are those lenders. We supposed you could say we're stalking those funders that participate in franchise financing - but not in a creepy way of course! Let's dig in!

The majority of business owners would normally think that Canadian chartered banks probably offer their best chances of securing a franchise loan to purchase either a new or existing business. In some ways they could not me more wrong. If your bank does not have a formal ' program ' in place with your franchisor financing will be, shall we say... challenging! Banks prefer very established names that come with a brand and a lot of ' unit ' success in the market. (Think golden arches and rolling up cup rims)

Where the banks do play a key loan in franchise funding is via their partner in the transaction - the Canadian govt! That's via the Govt of Canada Guaranteed Small Business Loan program which makes the transaction less ' risky ' given that the govt guarantees the majority of the loan in case of default. That type of backing makes any loan ' low risk ' for sure!

One point of clarification: Your bank will of course consider financing your franchise choice outside the Govt Small Business loan program. (By the way, the new 1 Million dollar limit on this program isn’t exactly small) However that will require full disclosure by yourself of your personal finances, tax returns, sources of income/savings, etc.


While banks could provide the maximum amt of funding you need at absolutely the lowest cost it's safe to say that many franchisees would prefer to separate their business and personal finances when it comes to risk. Also if your bank is not willing to consider a pure franchise loan on its new merit it is often difficult to establish a new relationship within a short period of time based on your funding and timing needs.

Other sources for your franchising loan needs. They include a small handful of specialized franchise lenders who again also focus on programs they have in place with major franchising chains. These loans can be complemented by financing for various other lenders including leasing companies, working capital providers, etc.

Not sure you want to be a ' stalker' when it comes to tracking down franchise financing lenders? One alternative is to 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 originating the best funding to start or continue your entrepreneur journey.


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

SR&ED Loan Financing In Canada : R&D Tax Credit Loans Work And Here’s Why

If You Haven’t Heard Of SR&ED Refundable Tax Credit Financing .. You Will !

OVERVIEW – Information on SR&ED loan financing in Canada. R&D tax credit loans provide cash flow and working capital funding for your SRED claim. Here is your why and how!

SR&ED loan financing is the funding of your Canadian sred r&d tax credit. It brings the uniquness of factoring, or invoice discounting as it is also called to the Canadian governments SR&ED Tax credit - which most business owners know is a non repayable cash grant for your firms research and development activities. And non repayable cash from the Canadian government is a good thing, right?!


Not all business owners and financial managers in Canada are aware of the total amount of funding that is going on this great Canadian program. Each year well over 10,000 firms participate in the program and the total cash from the government is approaching the 2 Billion dollar milestone.

If your company is private, does r&d around new products, processes, etc you probably qualify and you should be talking to your accountant or a qualified SR&ED preparation firm about getting your share of that almost 2 Billion dollars .


Once you have filed the claim why not take advantage of a great financial strategy to in effect 'monetize ' than claim into cash flow and working capital now. That is done via a form of factoring or discounting of your claim.

Claims are financed in the 70% range on what we can call a SRED loan to value process. That is to day that on successful factoring of your calim you receive immediately, on claim funding, approximately 70 cents on the dollar now for the value of your tax credit.
The entire same process also applies to film tax credit also, but that is a subject for another day, lets focus on the Canadian SRED tax credit only for our discussion purposes.

Many firms that inquire about sred financing often think their claim can’t be financed if the company is still in an early growth stage, but that is not the case. It certainly does help though, if you are an early stage company, that your claim is prepared by a knowledgeable SR&ED preparation firm, or if you have in fact filed previously and been successful via the government’s paper and technical audit. We've worked with many firms that are in effect still pre-revenue and very eligible for sred financing based on the nature, size and quality of the claim.

Would anything stop your claim from being financed? We can categorically state that one key ' deal breaker ‘is if your firm has tax arrears with Canada Revenue. However, the good news is that your claim can actually still be financed if you approve the direct payment to Canada Revenue of the tax arrears our of your SRED credit.

SR&ED factoring, or SRED financing generally takes 2-3 weeks to complete, and is quite frankly like any other business financing you would be entering into. So basic business principles apply - there is an application form, which is backed up by your SRED claim of course. The claim has to be filed and most Canadian business owners and financial managers know that the sred credit is filed when you file your annual tax return. In cases of your sred credit you can actually file for your tax credit non repayable grant for the last two fiscal years, so that’s a great bonus for the many firms we encounter that have just heard about the program . They have in effect just doubled the amount of cash they can claim and receive!

So what’s the bottom line of SR&ED Financing. It’s quite simple:

- The Canadian SR&ED TAX CREDIT is non repayable and one of Canada's great government business assistance programs

- You can finance your claim once it is filed - What wait 3-6 months or longer for your funds

Discover the benefits of factoring/ funding this receivable, and get the cash flow and working capital into your firm today for any worthwhile business purpose.

That’s a great Canadian alternative financing strategy! Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you monetize your claim.



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

Franchising Loan Search ? Solving The Franchise Funding Loans Challenge

How To Be Successful In Financing a Franchise In Canada

OVERVIEW – Information on accessing a franchise loan in Canada. Successful franchise funding loans come with certain requirements which are discussed

Franchising loan needs in Canada present a unique challenge for those entrepreneurs / business owners who require franchise funding loans to jump start their franchise acquisition. What are then the ingredients to the solution you need to acquire a business in this huge segment of the Canadian economy? Let's dig in.

Whether it's a large franchise or a smaller one some appropriate level of both personal investment and initial financing is required. Franchise loans are a very specializes segment of Canadian business financing. Although many franchisees are in fact experienced business people and have strong backgrounds in running a business it should be no secret that funding such an acquisition is always going to be somewhat of a challenge.

The players that finance franchises in Canada are limited to a small handful of participants - they include

Banks

Specialized Franchise Finance firms

Asset based lenders

In truth many franchises are in fact also financed by friends and family and the collateralizing of personal assets under such vehicles as home equity loans, collapsed savings, etc. Suffice to say that it should be the preference of all franchisees to secure the appropriate balance of personal equity and external debt. 100% owner personal financing of course doesn’t guarantee franchise success and also places personal assets at risk.

We mentioned Cdn chartered banks as a possible provider of franchise loans. In truth the banks focus on two areas of loans - one is utilizing the Govt of Canada Guaranteed Small Business Loan program - the other is their alliances with certain larger well known Cdn and U.S. franchisors (think golden arches as an example!). While those alliances don't necessarily fully guarantee loan approval there is certainly a high level of approvals given the brand success of certain well known and proven names.

Note also that in many cases franchises can become a partnership with 2 or more individuals. Let's just say in our experience in meeting clients who have entered into partnerships to purchase a franchise that we hope each party understands the strengths and character of their proposed partner! On the positive side having a partner you can work with also makes the personal investment requirement of buying and financing a franchise much more accessible - typically anywhere from 30-50% of the cost of the business tends to be financed by owners.


We would also add that recent changes to the Govt Small Business Loan, aka the ' SBL ‘, increased the loan amount available to 1 Million dollars.

What are banks and franchise specialty lenders looking for when it comes to loan and funding requirements for franchisees? The criteria frankly aren’t much more difficult than any other business loan:

Business experience

Reasonable personal credit history

A realistic business plan and cash flow forecast that reflects reasonable growth and profit projections

If you're focused on business success in the CANADIAN franchise industry seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you. Problem solved!





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