A Business Line Of Credit In Canada : It’s True That Asset Financing Revolving Lines Deliver !

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Eliminating The Tough Road In Accessing Business Credit Lines

OVERVIEW – Information on accessing a business line of credit in Canada. Along with bank facilities asset financing non bank revolving lines deliver on cash flow and daily working capital needs

Business line of credit needs may often require the business owner/financial mgr look beyond the ' norm' associated with revolving credit lines, That's where asset financing revolving loans come in - they're the viable bank alternative . Let's not forget though that bank facilities of this type offer low cost and flexibility if they can be accessed. Let's dig in.

Fundamentally it's all about the cost of financing benchmarked against the ' risk ' associated with your firm or its industry. It's at these times that looking at alternatives make sense.

Revolving credit facilities are primarily used for growth; and in some cases they are a solid re-financing alternative.

The ability to constantly access and draw down working capital/cash flow needs is the key attraction of securing the proper line of credit facility. The assets that make up and drive this type of business credit are:

Receivables
Inventory

As these two ' current asset' levels rise and fall so does the line of credit accessibility. Technically speaking the bank, or the asset based line of credit provider determine your firms access by establishing what they call a ' borrowing base' - typically on a monthly basis

In the case of banks typical margins against these two assets are as follows -

A/R = 75%
Inventory - 50% (varies)

The asset based lenders who provide lines of credit typically offer higher margin borrowing:

A/R - 90%
Inventory - 50-75% - (varies)

We can with confidence and experience say that asset based non bank credit lines, while more costly, almost 99% of the time offer more borrowing power.

It's important to not also that various conditions will be imposed by a Canadian bank or non bank LOC provider. We can (again) say with confidence (and, again experience!) that conditions imposed by asset based lenders are less onerous and more flexible. To some extent the actual limit on the line of credit can almost automatically increase without further applications, etc

What then is the bottom line of your firms search for revolving lines of credit? The key points include:

Consider the entire funding landscape currently available in Canada

Be open to looking at both bank and non bank solutions - aka ' traditional' versus ' alternative’

Have a strong sense of your working capital and cash flow needs

Ensure you have the data to allow a bank or non bank lender to consider the credit facility - typically that's financials, aged receivables, inventory, payables, etc

Always be open to ' Plan B’

In summary, if you’re focused on shortening the journey on the tough road to business cash flow and working capital financing consider all options, including speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you with funding needs... that deliver.

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 : Term Loan & Cash Flow Finance Solutions Uncovered !

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Everything You Need to Know in Negotiating a Term Loan

 Information on business financing in Canada . A term loan and other types of cash flow finance solutions require the business owner/financial mgr to understand lending criteria . The focus =  Be Prepared

 

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' in previous articles.
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. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business finance 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



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

Direct Line = 416 319 5769


Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

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

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


Stan Prokop

Article Source: http://EzineArticles.com/3658324

 

Asset Based Lending In Canada : Business Loans & Financing Your Company Should Consider

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The Secret Flexibility Of Asset Based Lending

OVERVIEW – Information on asset based lending in Canada. Rarely do business loans such as ABL credit lines provide the financial flexibility you need to run and grow your business cash flow and working capital needs

Asset based lending in Canada offers some of the most flexible financing that many companies need in the current challenging corporate finance environment. When it comes to business loans that makes sense ' ABL ‘(short for asset based lending’) clearly delivers. Let's dig in.

There are not too many firms that aren't focused on growing revenues or simply trying to ' hang in' in today’s competitive environment. Much cash can be consumed in acquiring new assets or strengthening the overall equity base of your firm - that's where ABL comes in.

What distinguishes many companies today from their competition is their willingness to check out new sources of financing previous not considered. Although asset based lending may be considered one of the new ' alternate financing sources' in Canada the reality is that it's been around for years. Oh and by the way, it’s been utilized by some of the most successful and well known corporation, not just smaller firms in the SME marketplace.

While Canadian chartered banks get most of the ' mind share ' when it comes to business financing competition the reality is that not all firms can satisfy the credit quality required to obtain low cost / flexible finance solutions offered by our banks.

Traditional cash flow challenges revolve around firms that are growing their revenues and being unable to find the ' current asset ' financing that comes with the requirement to fund additional sales, inventories and receivables (let alone equipment/technology acquisition needs).

Business owners and financial mgrs are often pleasantly surprised at the flexibility of asset based business credit lines. Why? Simply because they combine your A/R, INVENTORIES, and EQUIPMENT into one borrowing facility that fluctuates with your sales growth. As sales grow you can borrow more, pretty well automatically.

That ability (flexibility) to include your fixed assets into your borrowing base of course removes the need to consider term loans and additional long term debt that most business owners/financial mgrs would prefer to avoid.

Your firm’s ability to leverage your assets into a business credit line will make sense to any commercial borrower who sees bank financing as a challenge. 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 firms’ business loan and financing 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

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

Fixing Business Financing In Canada : Accessing Bank & Alternative Finance Loans

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A Lot Of Smart People Still Aren’t Happy With Their Business Financing – Here’s The Fix !

OVERVIEW – Information on business financing solutions in Canada. Whether its traditional bank loans or alternative finance funding here’s how to consider capital options for your business

Business financing needs in Canada often leaves owners/ financial mgrs with that ' not happy ' feeling when it comes to loans or alternative finance solutions. And by the way, in today's competitive environment there are some pretty smart people out there when it comes to running and growing their firms- yet even they are searching for ' the fix '. Let's dig in.


When it comes to raising finance needs for your business today’s environment calls for looking far beyond the traditional solutions of the past. More often than not that has meant ' the bank ' as the sole solution provider of business capital.

But by addressing proper cost of capital versus growth opportunity as well as the ' risk ' element associated with any form of traditional or nontraditional finance a whole new world of capital providers is out there.

What then is the best way to look at some of those alternatives, and, as importantly, what are they?! It starts by assessing your need, which is usually in one of three categories:

Growing sales

Refinancing

‘Other’


That other can cover various scenarios, one of which might mean a forced exit from your bank relationship - i.e. the dreaded ' special loans' category.

As we have said, understanding how things work, cost, and risk are the key elements of a new financing strategy. That kind of thinking will often determine what's best for your business.

Looking for some key tips around new sources of business financing and capital? We've narrowed it down for you as follows:

Keep an open mind to new solutions available

Consider both traditional and alternative financing solutions

Understand what you need - i.e. new assets, working capital, investment

Focus on potentially a combined solution of different methods of business finance

Ensure you are in a position to present your company properly - i.e. current financial statements, a strong exec summary or business plan, etc

Be prepared to consider ' Plan B '!

Let's recap business financing solutions most typically available to your firm - they include:

Bank credit lines/term loans

A/R financing

Inventory loans

Equipment finance

SR&ED Tax credit bridge loans

Sale leasebacks of owner assets

Non bank business lines of credit

Unsecured cash flow loans

Royalty finance

If your firm needs finance ' fix ' seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you with your loan and cash flow needs

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

Traditional Verses Non-Traditional Financing - What Are the Differences?

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Information on alternative financing and traditional finance in Canada . An overview of bank loans and cash flow finance solutions for Canadian firms in the small and medium enterprise area

Business owners at either start up or sometime in the business existence need financing. Many a joke has been offered regarding financing offers when you don't need it, however if you need financing to survive that becomes a different story. Business owners must be able to assess whether they are candidates for traditional or non- traditional financing. Traditional lenders want to grow your business; they are not looking to fix your problems. When business owners have to attract additional equity the problem usually is that they have to give up a healthy piece of the ownership of the firm. So who are these 'Traditional 'lenders? It is essentially a short list:

Banks and Trust Co's

Independent Finance companies

Venture Capitalists /Private Equity Firms

Government

Let's discuss some of the basics of those traditional players. Banks are the most obvious of all traditional lenders - they focus on assets and collateral and personal guarantees of the principals. If a firm cannot meet their lending criteria it's three strikes and you are out scenario. Venture Capital firms look for healthy portions of a firm's equity. They want big gains over a longer period of time. Generally venture capital deals are very significant in dollar size. These funders are very professional and have deep pockets, backed often by large institutions.

We feel strongly that the biggest mistake firms make when contemplating venture capital is either the small size of their transaction, or that funds are being solicited for the wrong reasons. Independent Finance firms are largely collateral based. Rates are typically a bit higher than bank type rates, and specialties include leasing and asset based lending, as well as non bank working capital arrangements, commonly called ' ABL''s. Various government loans and grants are available to business borrowers. They have very good rates and good structures - the main complaint of borrowers is time to consummate a transaction.


Non- Traditional Lenders: This group can be categorized in 4 categories.


Employees
Friends/Family
Private third party lenders
Suppliers

Most business owners do not realize key employees are often an untapped source of capital. They have a vested interest in their employment and careers, and often want to be considered for ownership and in succession scenarios. Management buyouts are a very common and quite successful strategy. Friend and Family is of course a sensitive area - we all know comments made around mixing friends, family and money. Care is required in this area.

Most business owners never consider suppliers as a form of potential capital. This group has a vested interest in making your firm successful - your firm is a customer, and they quite often can see the advantage of some sort of strategic alliance. Even a simple restructuring of your payments to a key supplier can bring valuable capital to your firm. In summary, there are various sources of traditional and non-traditional funds available to business owner. They certainly are not unlimited in choice, and every business has a unique need and situation that requires a special focus and assessment.


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












Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/3645694

How To Stop Worrying & Love Independent Movie & TV Production – Spoiler Alert It’s The Film & Television Tax Credits Via Govt Refund !

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Film Tax Credits Aren’t Romantic

But They Will Help Finance & Finish Your Independent Film & TV Productions!

OVERVIEW - Information on film and television tax credits in Canada. Financing your Cavco tax credit and production incentive credits via the government refund program helps to cash flow your project - today

Film and Television tax credits in Canada , via government refund of your refundable tax credit hardly sounds ' romantic' or ' exciting' when it comes to this huge part of the entertainment industry in the Canadian market . As one recent market observer remarked, these credits helps pay for the tinsel in tinsel town, aka Hollywood north... aka ' Canada '!

How key a role do these production incentives/ Cavco credits play in the financing of movies and TV and animation projects in Canada? Quite a huge role, as you'll see. Let's dig n.

Almost all Canadian provinces offer tax incentives, via refundable tax credits to owners/producers of independent projects. Canada has naturally evolved as a great place to film and produce movies and television. In certain cases even the geography, i.e. where you film in fact garners a larger credit refund.

Independent producers/ owners of projects face a daunting task - however basic. That task? How to pay for the entire project. While large well known studios can fund entire projects the independent must fund via a variety of mechanisms, often which are ' cobbled' together to finance a project.

Those other parts of the financing puzzle? They include but are not limited to:

Pre sales
Territory / Geographical rights
Distribution agreements
Gap Financing/letters of credit/short term loans
Crowd funding/hedge funds

These financing vehicles, along with film and TV tax credits allow producers to have all, or more creative control in their projects given they have no backing from major studios.

The most interesting fact about the tax credit financing part of a film/TV or animation project is that the lender that finances the tax credit is not dependent on the commercial success of the project. And given that these production incentive credits can finance anywhere from 30-50% of an entire project it's easy to see the importance.

Refundable tax credits in Canada are all about Canadian content. Producers, along with their tax credit accountant pick one of two main credit categories, the Production Credit or the Services Credit. These credits cover labor and service costs associated with the project.

Financing your tax credit, once you’ve applied for and received your credit is a very straightforward process. These are in effect bridge loans with your tax credit being the main collateral . Typical loans are 70% of the combined federal and provincial credits. No payments are made for the duration of the loan and when final government funding occurs you receive the balance of the credit, i.e. the other 30%, less financing costs on the 70% that was financed. A great cash flow strategy for the current project, or your next one.

If you want to limit the worrying that comes with financing independent film and TV projects in Canada seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you finance those govt refunds.




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