Small Business Borrowing In Canada : Your Self Driving Solutions To Cash Flow & Capital Financing

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Self Driving Finance?

The Best Way To Deal With Small Business Financing via Canada’s SME Commercial Finance Solutions

OVERVIEW – Information on financing a company in Canada. Whether start up or established, small business borrowing for cash flow & capital requires solid information and assistance – Here’s why and how

Small business borrowing in Canada forces business owners and financial mgrs to recognize the needs for cash flow and capital but in many cases these two key areas are a challenge. What solutions are in fact available, and do they need to be temporary, current, or permanent. Is there a ‘self driving ‘solution available?! Let’s dig in.

We can't count the number of clients we meet who want to gear up for growth but can't due to business financing constraints - Recent 2016 studies indicate a 87% of small to medium sized businesses want to invest more in their company . Currently alternative financing is so popular due to its access to credit and flexibility.

In a lot of cases it's a permanent solution that is required and that of course necessitates a good understanding of your growth and capital needs. Even hiring new people needs cash! We always remind clients that Equipment leasing is the most solid method of investing in new equipment / technology, software, etc.

The best way to grow sales and profits is to ensure you have the right working capital solution to your specific needs. A typical need we encounter via many of our clients is simply their ability to have enough working capital on hand to buy inventory and fulfill new contracts and orders.


If you are carrying the additional inventory and receivables that come with that growth you have a working capital challenge. Therein lies the challenge of course - what type of solution do you need, and how do you find it. Naturally you want a facility that meets your needs, can grow with your firm, and is structured under the right terms and rates.


If you have a proper working capital facility that should generally require no permanent additional working capital.


Many business owners simply don't know or understand where that cash flow comes from. It comes from two areas, your ability to maximize on your current assets, i.e. receivables, inventory, and purchase orders, or new debt that you are willing to take on in the form of a cash flow working capital loan.

If we refer to the former solution Canadian chartered banks offer the best rates, terms and structure for maximizing working capital. The challenge simply is that you are not always able to get the capital you need for growth in the Canadian chartered banking environment.


The key to understanding your needs is your ability as a Canadian business owner or financial manger to understand your working capital cycle - i.e. how fast do you collect your receivables, how does your inventory turn, and what are your payment terms or pressures from suppliers.

By having a clear understanding of those numbers you can determine working capital needs, and also assess what the proper solution is. In short term working capital that means several things - a new or better banking facility, financing your receivables through a more aggressive non bank working capital facility. This could be either a factoring arrangement for receivables only, or a more extensive
Asset based lending arrangement. In medium sized to larger firms in Canada it could also be effectively addressed by a mezzanine or sub debt cash flow loan.

Start up firms will always require special expertise and assistance in accessing capital - Here it's important to differentiate between what type of investment you need ( assets ? overdrafts ? cash flow? ), as being able to demonstrate the right level of owner commitment and expertise.

If you're looking for that ' self driving ' solution to business funding seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your small / medium business borrowing 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

Cash Flow Finance Solutions In Canada : Are You Part Of The Factoring & AR Financing Boom ?

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Inside the Business Of ‘ Factoring’ In Canada

OVERVIEW – Information on factoring and cash flow finance solutions in Canada. The proper role and use of of AR Financing determines the ultimate success of working capital solutions your firm undertakes. Here is how and why

Cash flow finance solutions in Canada are somewhat misunderstood as well as growing in popularity. To ensure you are a strong candidate for the AR Financing boom it's of course necessary to understand what this finance took, aka ' factoring' is all about. We're going to clarify some issues and debunk some of the misconceptions around how your firm can and should be financing its most liquid asset - accounts receivable! (Next to cash that is!) Let's dig in.

When a company can't leverage bank financing through traditional sources, and if they are unwilling to take on debt via working capital loans then factoring is in fact one solid solution to leverage cash flow and working capital. When financed properly your a/r can also help address other issues that might be on your balance sheet such as accounts payable and government super priority payments. Key point - when financed properly!

As we have hinted, factoring via A/R finance is not the only or be all and end all solution. You can add new owner equity to your business, or take on debt via a cash flow loan or some other kind of term debt (Bridge loans or sales leasebacks come to mind). Those of course are fixed options and must be met, come ' hell or high water' as your lender will note. So working capital solutions such as non bank A/R financing add no debt to the balance sheet - yet they do supply the cash you need.

Sales revenues via your receivables investment generates profits for your firm. The goal is to ensure that key asset - your sales & receivables are financed properly - keeping your balance sheet stable. Additional term debt can of course render your firm ' unstable’

No firm has to secure and access business credit lines such as bank facilities or commercial factoring solutions. However when you don't you'll often limit growth prospects. Companies that are self financing are often viewed as stable and successful - it's just that without external financing they don't often grow.

So the solution to growth finance. It's financing your A/R as you generate sales. That helps to meet business goals, increase additional profits and grow the total value of your business.

When business owners / financial mgrs address the cost of external financing several scenarios become very obvious:


- Continue to self finance and limit growth and competitiveness - including the obvious working capital and daily cash flow challenges
- Borrow on a term debt or subordinated debt basis
- Sell receivables as you generate them - increase sales and profits and capture all the opportunity costs of additional working capital

Somehow our third option remains more appealing!

So why are we not hearing more about Canadian business owners who have discovered a holy grail of financing? When we talk to customers we know the answer - they have entered into the wrong type of factor facilities.
The fragmented and U.S. influence on factoring in Canada has many firms entering into the wrong type of facilities. We advocate CONFIDENTIAL RECEIVABLE FINANCING,also called ' non notification factoring ' with no locked in contracts, and fair competitive pricing.

Check out the benefit of factoring in Canada, and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital and 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

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

How To Finance Cash Flow Via Purchase Order Financing & Direct A/R Receivable Finance

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Eliminating That Painstaking Challenge of Cash Flow & Working Capital Funding Needs For Your Business

OVERVIEW – Information on a/r receivable finance solutions in Canada . Purchase order financing and direct funding for accounts receivables ensures cash flow success

Purchase order financing & Receivable Finance via a direct A/R funding solution are two key ways for Canadian business owners and financial mgrs to maximize working capital via key financeable assets - in this case either :

Accounts Receivable

Purchase Orders / Contracts

If they can't fund these two asset categories their firm will run the risk of serious working capital and cash flow deficiencies.

To paraphrase one of the most famous lines ever written - ' it's the best of times and the worst of times ' ... that being the case when sales and profit potential is great but owners are challenged by key issue such as :

- New owner equity or outside equity
- Debt (loans)
- Operational efficiencies

We're going to focus on that third area - improving operational efficiencies via proper financing of your current assets and sales. By the way, believe it or not that’s actually the cheapest way to finance your firm - given the higher cost of long term debt and the even higher cost of bringing in outside equity.

By leveraging your current assets - typically A/R and inventory you have the ability to both increase bottom line profits as well as optimizing cash flow.


Let's look at purchase order financing as an example. If you choose a purchase order financing facility you are obviously in a position to take on larger contracts and generate more profits for your firm. Overall larger orders and contracts also increase your competitiveness in your industry - with typically your competitors wondering how you do it!

By utilizing a p.o. financing strategy you simply allow the p.o. finance firm to pay suppliers for goods and service you need to facilitate the order. When your product is shipped and delivered the purchase order finance firm is paid via your bank or A/R Financing facility.

Although to many the perception is a higher cost of financing let’s look at what really has happened - you have converted inventory into A/R into cash - Payment by your customer generates profit. Without the financing of the purchase order you more often than not could not have fulfilled such large orders or contracts. So by sacrificing some gross margin you have grown revenues and bottom line profits.

Firms who have a significant investment in inventory can achieve similar financial success. With an inventory financing facility in place you can stock more products and generate those additional sales.

For firms who cannot achieve the traditional bank financing sought by most a combination inventory and receivable financing facility is available via an asset based line of credit. Here it's all about the ' cash conversion cycle ‘- turning A/R and inventory into cash and profits.
The higher interest rates charges by asset based lenders can easily be significantly offset by smarter volume purchasing and negotiations with key suppliers on pricing : Bottom line - you know have cash to pay for products and services.

The cost of not taking discounts or being unable to make volume purchases for cash is significantly great than the financing costs you have for alternative financing facilities such as inventory financing, purchase order financing and receivable financing.


KEY POINT:

Even if purchase order ,inventory and receivable financing were equal in cost to the cost of carrying receivable and inventory on your own books it would still be a viable solution because you would have less sales and less competitiveness in the marketplace .

Example - if f your firm could buy 500,000.00 of inventory on 2% net ten day terms and you were unable to take the discount the opportunity cost of not taking that discount is over 36%.

The simple statement we make to clients is as follows ' the cost of paying in full is usually much higher than the cost of borrowing '!

If your firm is focused on selling more, efficient financing around asset turnover and proper focus on the opportunity cost of working capital seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you determine the exact working capital / cash flow strategy around your company 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

A Tax Credit Loan Via SR ED Financing Maximizes Your R&D Capital Investment : SR ED Loans 101 !

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We’re Taking Questions ( And Giving Answers ) On SR&ED Tax Credit Financing !

OVERVIEW – Information on SR&ED Finance in Canada. SR ED financing via a bridge tax credit loan provides valuation cash flow / working capital . Here’s what you need to know about Sred loans!

SR ED financing may often play a key part of your overall cash flow strategy as it relates to your R&D capital investment. How does a tax credit loan work and how can your firm access SRED loans that make sense for your business? Let's dig in.

The alternative to financing your SR&ED claim isn't often an easy one - it's called ' Waiting ‘! That process can be anywhere from 6-18 months for the govt refund that's a combo of your federal and provincial SR&ED claim. It's plain to see that financing a claim is all about taking advantage of the valuable cash flow that's tied up in your claim filing/refund.

Typically Canadian chartered banks almost never finance a SR&ED claim. There are probably a few reasons why that is the banks position, one of them being that claim ultimately might not be approved/processed for refund. That of course simply strengthens the case to ensure you've got a solid SR ED consultant preparing your claim. That's key.

Note that even first time claims can be financed, although it's safe to say that firms that have filed previously clearly enhance the chances of getting their claim financed. But to our point, first time filers can finance, and many firms we have worked with are start up and pre revenue stage companies.

Why do firms consider financing their R&D refund? In general it's always about their cash flow and capital needs -in many cases the cash is actually used to continue to further research on the next years claim! Hopefully that R&D investment helps them position future success as translated into sales and profits.

Clients we talk to are also happy to hear that they can also finance claims that have not yet been filed. We can call this a form of a SR&ED credit line, allowing them to fund as they invest. That clearly shortens the waiting period given those interim advances.


Your Sred Financing is a very defined process, with the participants being your privately owned Canadian firm as the SR ED applicant, your SR ED preparer or consultant, CRA itself, and of course the finance firm as the final piece of the puzzle.

We meet with many firms that actually have qualified for SR ED cash grants for years and have not taken advantage of these funds. Unbelievably some business owners tell us they viewed the process as too time consuming, therefore they simply did not apply for the funds. In today's business environment with a total focus on cash flow, working capital, and global competitiveness we feel you can't afford to not take advantage of both the SR ED funds, as well as SR ED financing.

The basics are very simple - establish that you qualify for SR ED cash refunds, work with your accountant or an independent consult to set up a process and prepare claims on an annual basis, and, finally, unlock the cash flow in those SR Ed claims if you wish to finance the claim.

What is the actual finance process? Essentially consider your tax credit loan as a ' bridge loan ' with the actual collateral being the claim itself. In a way you're creating a special government account receivable finance strategy. Loans are typically 70% of the total value of your combined fed/prov claim. Using a 350k SR&ED claim as an example your tax credit loan would be in the 245k range. Key point: No payments are made for the duration of the loan - financing costs accrue and are paid at the end when the loan is closed.


Key steps to success in Sr Ed financing are simply:

Ensuring you qualify

Preparing a clean claim with documentation ( with your accountant or consultant) We further note that many consultants with prepare your claim on a contingency basis, therefore ensuring you have zero out of pocket expenses in claim preparation .

In our experience the financing portion of the SR ED claim process typically takes up to 2-3 weeks. Is that a long time? Well of course the alternative is to get your aforementioned 245,000$ now or wait one year for the government to send you the cheque. Hopefully we have made out point! Seek out and speak to trusted, credible and experienced Canadian business Financing Advisor with a track record of success for your answers on SRED loans that make sense for your business.



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 Finance Secrets? How Much More Can You Learn About Asset Based Lending & Financing?

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Looking For A ‘ Secret’ Financing Strategy : ‘ ABL ‘ Just Might Be Your Answer !

OVERVIEW – Information on the growing use of asset based lending as a business finance strategy . ' ABL ' financing can deliver cash flow and capital in a variety of manners - here's why and how !

Business finance solutions in Canada are on a regular basis delivered via asset based lending and financing. For the business owner and financial manager who hasn't heard of (or checked into) this type of funding solution they might just mistake this for a new ' secret ' financing strategy. Frankly though, the secrets out! Let's dig in.

Asset based loans (‘ABL ' ) are often considered an ' alternative ' strategy in the brave new world of nontraditional and ' fintech' solutions. But guess what? Main street is using this form of financing everywhere in Canada, in all industries, and all size of companies.



Asset based lending in Canada differs based on transaction size and the methodology around which day to day transaction are handled., and which assets are being financing . We can broadly put ‘ABL ‘solutions into several key categories

Non bank business lines of credit

A/R Financing

Inventory Finance

Tax credit financing

Sale Leasebacks

Working capital term loans / merchant loans


There are different levels of due diligence in setting up any of these facilities, often dependent on facility size, what industry your firm is in, and the quality of your assets being financed.


When Canadian business owners and financial managers sit down with us and ask us to explain ' asset based lending ' we cover a fair amount of ground, as there are various types of ' ABL ‘facilities.

The benefits of asset based financing? They are pretty basic - you will often differentiate yourself from your competitors given you have increased amounts of capital and cash flow - allowing you to secure more sales/contracts , as well as enhancing relationships with suppliers and other lenders you might have in place. In many cases ABL finance addresses the seasonality challenge you might have in your company/industry.

Asset based lending is simply the monetizing of your assets to their maximum cash availability. The most common assets financed include:

A/R

Inventory

Fixed assets

Real estate

Technology


While ' purchase orders ' of new ' contracts ' aren’t technically an asset on your balance sheet asset based lending includes PO / CONTRACT financing solutions! The emphasis is clearly on your ' assets ‘!

ABL business finance frequently replaces traditional bank financing, or in many situations provides more cash flow and working capital that banks can't deliver on due to their lending constraints. This is no more evident than in the SME COMMERCIAL FINANCE sector. Flexibility is often the differentiator given that ABL solutions don’t rely as heavily on ratios, covenants, outside collateral, personal guarantees, etc. Note though that costs of this type of financing are almost always higher - so the decision becomes access to capital versus cost of capital!


We spend a lot of time with customers showing us how some of the ' perceived 'higher costs are in fact not really that due to the ability of the company to convert assets into cash and repeat their business cycle over and over, generating additional profits based on faster inventory turns and receivable collections .

One of the tools we use is the ' DUPONT MODEL ' which will clearly demonstrate to our customer how asset turnover affects profits. It's a great financial tool!

If your firm has been affected by liquidity concerns and you need additional funding to survive and grow check out asset based lending as a way to unlock cash flow and capital. Speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your 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

Expansion Financing Off The Rails ? Here’s Business Finance Solutions For Loans To Grow Sales & Profits

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All Seasons Growth & Expansion Financing Alternatives

OVERVIEW – Information on expansion financing alternatives in Canada. Loans for growth are a key part of business finance success when your firm is looking to grow sales and profits

Expansion financing is successful when your company has access to loans and other finance alternatives on a year round... shall we say ' all seasons basis. Growing your sales revenues and profits requires business finance for the times when your company has the opportunity to expand. Let's dig in.

What type of funding and capital does your business in fact need to expand? That challenges revolves around some basic issues based on exactly what your current needs are, as well as your firm’s ability to handle and manage that new financing. Here's where some solid planning and foresight put you in a win win position - that planning we mention replaces the full time search for capital that we seem to meet many clients on - taking away from their day job - running and growing their business !

Loans and asset financing and cash flow strategies are going to typically come from a bank or, in many cases a commercial finance lender. Here's where loans and the different options that currently reside in the SME COMMERCIAL FINANCE market need to be understood by the owner/financial mgr.

So what's the trick? It's of course identifying the right loans and business finance & expansion financing solutions that make the most sense for your firm - in many cases that's also closely tied to how your industry and competitors are financed. Here it's all about knowing if you qualify for the financing you need.

The typical expansion finance needs your business needs revolve around operating expense due to salaries, etc, as well as the necessity to carry more inventory and receivables and acquired new assets.
Along the way of course there is no ' straight line ' so cash needs fluctuate in the short and intermediate term.


Canadian banks, commercial finance companies, and even the Govt (via the Guaranteed Small Business Loan - max to 1 Million) play key roles in providing those solutions.


Funding solutions for business expansion include:


A/R financing

Inventory Loans

SR&ED Bridge loans

Commercial business credit lines/ term loans

SBL loans (The Govt guarantees and underwrites the majority of your loan)

Equipment financing

Sale Leasebacks

Asset based bridge loans and asset based revolving credit lines

Royalty Finance

P O Financing

Unsecured cash flow loans


Owners and financial mgrs need to differentiate on whether they are looking for cash flow financing, working capital solutions, long term debt, and asset monetization. All of those needs are delivered by different business finance solutions.

Critical issues that must be considered in growth finance include: loan term/length, amount of funds required, collateral, personal guarantees,


For a growing company it will often be the case that a combination of finance solutions is required. That's because growing sales will necessitate financing around credit line needs, fixed asset financing, term finance.


If you're looking for that ' all seasons' finance solution 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 capital 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

Business Financing In Canada : Quietly Explaining Those Loans & Growth Finance & Funding Options You Can & Can’t Have!

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Does Your Company Want To Borrow Just Like An American ? You Can’t, and Here’s Why !

OVERVIEW – Information on business financing options in Canada. While U.S. borrowing options might be more plentiful there are a variety of loans available for funding and growth finance for companies in the SME COMMERCIAL FINANCE sector

Business Financing in Canada
can't be compared to U.S. borrowing options. That’s a good and bad thing as we'll soon explain, as it relates to the right loans and funding you need to achieve growth finance goals. Let's dig in.

Surveys tell us that many Canadian business owners and financial mgrs actually feel strongly that lack of financing in Canada is in fact a 'barrier to growth’. We're talking primarily about 'debt financing ' via loans as well as closely related ' asset monetization ' via credit lines, etc.

Many Canadian businesses start with owner equity and the proverbial ' friends and family ' type financing - that's not really debt finance of course. A large part of the equity in Canadian SME firms lies in the shareholder loan category!

In the U.S. there is clearly a lot more ' risk ' financing with a wider variety of lenders , leading of course to the perception or reality that the Canadian lending landscape doesn’t offer as much funding that is priced to risk, and therefore more available !

Given that many Canadian lenders are also ' deposit takers ' they of course are more risk averse - EXAMPLE: Canadian banks and insurance company lenders. While the Canadian lending landscape was in the past very limited to bank financing new alternative lenders are providing more financing choices - similar to the variety of loans and lenders available in the U.S.

The traditional financiers in Canada are:

Banks

Business Oriented Credit Unions

Insurance companies

Leasing Companies

Mortgage Institutions

Traditional financiers in Canada use the same approach for almost all borrowers, which of course has a tendency to restrict financing. In Canada companies seeking SME COMMERCIAL FINANCE (small to medium sized firms) constantly are challenged to finance sales and assets. Access to business credit lines is always a challenge - Asset based lines of credit in Canada have exploded in popularity.

Canada set up its own version of the U.S. ‘SBA ' program. In Canada we call it the 'SBL ' - It's a govt guaranteed loan with the federal govt guaranteeing 85 % of your loan to the bank. In Canada the program only finances equipment, leaseholds and real estate. In the U.S. numerous other options are available under the same program.

What then should Canadian business owners consider when it comes to real world financing options available to their business? The offerings for owner/financial mgr consideration include:

A/R Financing

Non Bank Asset Based lines of credit

Equipment financing

Sale leasebacks

Bridge Loans - asset based

Tax Credit Financing (film and SR&ED)

Franchise Loans

Govt Guaranteed Loans

Working capital term loans

Merchant advances

If you want to borrow with a full understanding of your business finance options 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 loans, funding and growth finance options specifically for your company.



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