SR ED Financing Via Sred Loans : A SR&ED Tax Credit Loan Monetization Strategy That Works

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Is Your Company Taking Advantage Of SR&ED Loan Financing? Consider This ..

OVERVIEW – Information on SRED loans in Canada. SR ED financing via a tax credit loan is the logical way to monetize your r&d capital credits for cash flow purposes

SR ED financing is the most efficient way to accelerate and monetize your investment in R&D capital. A SR&ED tax credit loan allows you to take maximum advantage of this most famous and used govt refundable tax credit. Why do SRED loans make sense for your firm then? Let's dig in.

Of course the actual ' formal ' name for the program is the Scientific Research & Experimental Development refundable tax credit .By the way , we've never been one for name calling , so whether you call it ' sred ' ' shred' or anything else for that matter only the importance of the program is key to us!

Canadian business owners and financial managers in a variety of industries have the ability to of course file sred claims, and at the same time, if they choose, they can finance their claim and generate immediate cash flow and working capital from this valuable government grant program. Again, to be clear, those funds are non repayable.

Safe to say that the only thing that prevents you from financing a claim is if you do not file a claim, so understanding the basics around a claim, as well as the characteristics that claim needs to be financed is valuable information for Canadian business owners and financial managers. The govt refunds billions of dollars every year under this program , and many owners/mgr choose to finance their claims.

Claims are filed and substantiated under the normal program guidelines. One of the misconceptions around the program is that your R&D has to be successful in nature, and that's actually NOT correct, you just have to be in a position to document what you did and how you did or tried it.

Although claims prepared by owners and management can be considered for financing, the reality is that if you are applying for sr&ed financing it makes a lot more sense to have your claim prepared by one of two parties, either your accountant , or what is known as a ' Sred Consultant '.

Claims have never been easier to file, as the govt has very much streamlined the program - but total care is needed to adhere to current filing guidelines - that's where those SRED consultants come in.

With the information we are sharing here we want to be able to ensure you understand how the quality and size of your claim affect its overall financeability. SRED claims are applied for in all sorts of amounts, we have seen clients file as low as 20,000 - 30,000$ per annum, and as high as 1.5 million dollars, and we are sure there have been higher claims.

The actual claim preparation has an effect on your claims financeability - as your goal, should you need the cash flow and working capital, is to monetize that claim into a short term sred loan - with the sred itself being the collateral for the loan.

When you choose to finance a claim the general advance is made at 70% - so let's do some rough arithmetic around a sample claim and it's financing.

We're told that in business timing is everything - As a business owner you can wait anywhere from 1-12 months to get your cheque in from the government, which is reimbursed at the federal and provincial levels. Or, if you choose to utilize those funds now under a sred loan, you can get an immediate loan of 70% of that claim.

What do clients do with their SRED Loan proceeds? Funds are typically used for working capital purposes, equipment purchases, or even more ongoing sred activity! Looking for more good news? No payments are made on your sred loan; financing costs are calculated at the back end of the claim when you receive your funds, including the previously mentioned 30% that was held back on the financing.

Furthermore, if you have successfully financed sred claims in the past you could be very eligible for sred accrual financing - which is a special program that reimburses you for your sred expenses as you go along during the year.

Traditional financing institutions such as banks and business credit unions are poorly equipped to understand and finance sred tax credits .As a result we recommend you work with a trusted and credible business financing advisor to ensure your claim can be financed quickly and with a modest amount of preparation.

A bottom line on SRED Loans? If you in fact utilize the SR&ED program consider cash flowing your claim to accelerate the monetization of your claim. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in financing your R&D capital refund.


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 13 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 Sources In Canada : Perils Of Not Understanding Cost Of Loans & Available Cash Flow Solutions

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Everything You Should Know About Business Financing Sources & Costs In Canada

OVERVIEW – Information on business financing sources in Canada. Loans and other cash flow monetization strategies can make or break your business success

Business financing sources in Canada come with a variety of solutions and different costs associated with these loans and cash flow monetization strategies. Is it important to understand these costs and alternatives? We think so! Let's dig in.

Typically (in a perfect world - and we know it's not) business owners & financing mgrs want to know that can access cash and loans on an ongoing basis. It's critical to know, and understand the costs and benefits associated with those different types of financing.

Working capital needs are often the main driver in the search for supplemental financing - When you understand what working capital is you are obviously in better position to source it!

You therefore need to know how to measure working capital in terms of your overall business needs. That’s part of the problem and challenge, because when we sit down and work with clients on working capital and cash flow needs we quickly determine that working capital and cash flow mean different things to different business owners .

The problem usually starts with the business owner assessing his working capital needs by looking at the cash available in the company bank account. That amount doesn’t of course reflect the ' near cash ' that is tied up in receivables, inventory, prepaid, etc.

We can go to the text book definition also ( not our favorite way of doing things ) and finding out that working capital is simply current assets minus current liabilities, calculated by a quick look at your balance sheet . We are not a big fan of that calculation, simply because it doesn’t give you a true sense of the turnover of those critical balance sheet accounts such as A/R and inventory. Cash flow is all about asset turnover!

By the way , don't assume bigger is better in your total working capital amount - in fact the more funds you have tied up in A/R and inventories will simply place a larger stress on your cash flow needs . That's where constant asset turnover helps - turning inventories and collecting receivables. You should regularly, at least monthly be calculation your days sales outstanding and inventory turns.


By the way, even effective payables mgmt will increase cash flow - much to the chagrin of your suppliers! Don't over manage and ruin vendor relationships which are key to a successful business. Deterioration in supplier / creditor relations is one of the worst things that can happen to your business.

So now you have a better handle on working capital, what next? Well you clearly recognize that cash on hand and growing inventory and A/R isn’t helping your cash flow at all - you need external financing. You achieve external financing by the profits you generate from your business, plus working capital facilities via a bank or independent finance company. Your needs might be seasonal, or ongoing, depending on what industry you are in.



Other more traditional alternatives are bank operating lines of credit, these come with the best rates, current in the 4-5% range in early 2010 in Canada. The only problem? Great rates but difficult financing to achieve as Canadian chartered banks demand solid financials when they are granting this type of facility. A better way to achieve full liquidity via this method is to consider a factoring or asset based facility.

Rates in Canada range for 9% / annum to 1-2% per month based on your overall financial position and size of facility. But, they offer you 100% working capital for all your business financing needs, so that’s a good trade off. 99% of the time you will have increased your available credit availability by 100% as your receivables are margined at 90% and inventory financing is also a key part of a non bank business credit line.

So back to our sources of financing and the costs associated with those sources. You of course have the option of either generating a working capital term loan, or, if it’s a larger facility, it might be called a Sub debt or mezzanine loan. Essentially they are unsecured cash flow loans with rates in Canada ranging from 10-15% - they are traditionally on a fixed term, fixed rate basis - 5 years is common.

You also have the option of putting more permanent equity into your business via an equity injection of bringing in a new shareholder. We are perfectly clear with clients that this is the most expensive form of financing, because you are giving up future ownership.

Other miscellaneous sources of business financing come with various costs but significant upside to your funding chances. These include:

Sale leasebacks

A/R Factoring / Confidential receivable financing

Bridge loans

SR&ED Tax credit loans

Merchant advances for retailers

Equipment financing for new and used assets

Understand what sources of financing are available to your firm, knowing their costs, and executing on facilities or solutions that make sense for your business is the true working capital and cash flow solution for Canadian business. Speak to a trusted, credible, and experienced business financing advisor to guide you to the right business financing decision.


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 13 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com



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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing with the intelligent use of experience '

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

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


Stan Prokop

Asset Based Lending Might Be The Ultimate Cash Flow Financing Solution – Why Asset Finance Strategies Work

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Business Success Is Hard –

Business Financing Success Is Even Harder – Here’s A Solution

OVERVIEW – Information on asset based lending in Canada. The right cash flow solutions for your firm might just come from these asset finance strategies

Asset based lending in Canada often brings one simple question from our clients - namely: Can you explain asset finance cash flow solutions to us ?Businesses all over Canada in every industry keep hearing about nontraditional lending solutions for their businesses - in many cases their competitors are already taking advantage of them . They want to know more... so... let's dig in.


So is business financing via asset finance a difficult concept to understand? Hardly. Asset based financing, often called 'ABL' by those in the industry, is simply the method of obtaining the maximum working capital you need from your assets, which include typically receivables, inventory, and in many cases some equipment and/or real estate. That's as simple as it gets.


So how can monetizing your assets be the potentially ultimate working capital tool for your business?
Although it's been in existence for many years, in the past asset finance or asset based lending (we also call it a 'working capital facility ") is coming into vogue.

It doesn't take rocket science to understand when, given traditional financing almost totally collapsed in the 2008-2009 global meltdown, that companies began searching for options and alternatives to their business financing needs.

Lenders like asset based financing simply because they are using their expertise and knowledge in your assets to help you cash flow your business.

Although many companies turn to asset based lending when they can’t access traditional bank financing the reality is that this type of financing has some unique characteristics that allow you to utilize the financing for other reasons - Those include:

Major expansions

Buying another business

Bridge financing your business while you undergo a restructuring or turnaround.

In many cases it's ' buffer' financing allowing you to get back to more traditional ' bank type ' financing.

As we stated, it's very simple for us to explain to clients what an ABL facility is, it's a bit more complicated to get them to understand how it works. The best way to explain it though is to simplify it all and say that you should consider asset finance via a working capital facility as simply a ' revolving line of credit around all your business assets '. Can that be anymore simply to understand? We don't think so.


Typically the process is as follows - After the traditional ' application ' process there is an agreed upon value put on all your business assets - as we said , 99% of the time the assets under this financing include receivables, inventory, equipment, and in some cases real estate . The most common assets though are receivables and inventory.


Your firm provides regular monthly, and in some cases weekly updates on the values of these assets, and you in turn use your regular bank account to draw down on funds, as you need them, to run your business. Similar to a bank revolving line of credit facility your asset based financing facility fluctuates everyday as a dollar of capital flows through your business - you purchase product, you generate a receivable, you collect your receivable, and of course the process repeats itself.

If there is one simple advantage of asset based lending it's that the financing grows as you grow sales and assets! You can truly say you have access to unlimited financing, albeit often at a higher cost.

Other forms of asset based lending such as SR&ED Tax Credit Financing, Leasing, factoring receivables, and PO Finance are being routinely used by many of your competitors. Why not your firm?

Asset Finance strategies help you do that. 50% of Canadian businesses report that the inability of their sales growth to generate funds hinders their progress. Top experts such as Canada's BDC cite growing a business as the most common goal of the vast majority of firms.

Speak to a trusted, credible business financing advisor in this area to ensure you understand the options, and of course the benefits, of this unique and creative method of business financing.


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 13 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

Sources Of Financing In Canada : Sorting Out Working Capital & Cash Flow Finance Options

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Get Hard Wired On Your Best Solutions For Canadian Business Financing Needs

OVERVIEW – Information on sources of financing for Canadian businesses with SME COMMERCIAL FINANCE needs. Getting the most out of working capital and cash flow solutions requires this information

Sources of financing requires business owners & financial mgrs in Canada to get ' hard wired' into real world accessible financing for solutions to their working capital and cash flow challenges. Let's dig in.

Funding for your business typically revolves around growing your sales and staying a step ahead of the competition. Businesses in the SME sector in Canada (small to medium enterprises) represent the largest majority of business in Canada.

Those firms that have been in business awhile, are growing their sales, and have the ability to sell products in other geographies are always strong candidates for new financing.


Tapping into sources of financing must for most business owners and financial managers in Canada seem like finding the holy grail of financing - We're far past the 2008 recession but most businesses still find finance options inaccessible.

Most business folks associate Canadian banks as the sole source of business financing .When we meet with clients who have been denied bank loans we can of course commiserate. Is there a solution?

The bottom line quite frankly is that Canadian business is looking to alternative sources of financing for working capital, cash flow, and asset acquisition. The Canadian government has a full scale bank that is a non bricks and mortar bank, i.e. not branches, and they are committed to providing working capital and equipment financing.

However, the bottom line reality is that if you can access the business financing you need you should consider non bank financing, because it is these firms that seem to be the current bench strength in asset and receivable financing - these firms include:

Leasing companies - (Note that top experts tell us that machinery & equipment are almost always at the top of the list in new financing needs) Right behind that is investments in computers, software and other technologies

Asset based lenders - equipment, receivables and inventory

Purchase Order and Inventory financing firms

Factoring firms - i.e. receivables

Tax credit monetization firms - i.e. sred/Sr&Ed credit financing

When we talk to clients they often use the term 'government grants and loans '- We feel that term is not realistic, in that that the only two real world programs out there are the Canadian SR&ED program, which is the non repayable grant for r&d, and also, the government Small Business Loan .
Working capital financing in our terms means several very clear solutions:

Monetizing your current assets such as receivables and inventory

Cash flowing items such as Sr&Ed credits

Entering into a government working capital term loan

Negotiating a working capital/receivables financing facility - which in larger dollar terms is referred to as an asset based lending (ABL) arrangement. These facilities provide a significant amount of business credit line on terms far more attainable than traditional bank type financing. Asset based lending is leading the charge in the revolution in Canadian business financing.

When looking for sources of financing for working capital and cash flow is sure you understand the meaning behind the jargon. Determine whether you are looking for liquid operating capital, or a longer term working capital solution.

A recent BDC study concluded that 1/3 of all businesses in Canada have difficulty in accessing financing to run and grow their business. Is that you?

Seek out and speak to a trusted, credible, and experienced financing advisor who can guide you through the Canadian working capital maze and determine what the best cash flow and source of financing is for your long term growth and profits.


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 13 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

Equipment Financing In Canada : Addressing Lease Finance Options Via Traditional & Non Traditional Leasing Solutions

New Year - New Ways To Consider Equipment Financing Needs In Canada

OVERVIEW – Information on equipment financing in Canada. Properly constructed lease finance solutions provide a number of diverse options when it comes to leasing assets & technology that your company requires

Equipment financing decision in the New Year ? The good news is that lease finance may well be one of the easier finance decisions you might have to make in Canadian business financing choices. The trick - be well informed. Let's dig in

Naturally you don't have to finance the new assets or technology that your company requires. That situation brings up the issue of what is known in business as the ' lease vs. buy ' conundrum. In some cases you want to own the equipment at the end of your lease - other times it's all about using and returning it.

Those two scenarios - owning or renting the asset are in effect the two ' flavors ' of lease financing in Canada - capital leases and operating leases respectively.

Operating leases tend to be very attractive to your firm if your overwhelming desire is to 'use 'the asset, not to 'own 'the asset.
Equipment leases and equipment financing in general is clearly the alternative to bank financing or taking out a term loan for the equipment. Most businesses in Canada time and time again tend to utilize equipment financing in many cases simply because it is easier to get approved as well as you tend to be in a position to close the financing in a much shorter time frame .

While banks offer lease financing thru their ' leasing ' divisions , or even simple term loans for asset finance the general consensus is that bank financing takes longer to approve, and may well come with some restrictive covenants.

The true power of leasing equipment comes from the fact that companies of all credit quality qualify for approval. And by the way even used equipment can be financed. Firms that might not have stellar credit still utilize lease financing - in most cases the rate might be higher or the transaction will require some ' structuring '. In certain cases certain assets may be better leased/financed via a firm that specializes in that type of equipment or industry.

We should also mention that almost any asset in Canada can be financed, from high end costly industrial equipment leasing all the way to something more esoteric as computer software. The fundamental precept of lease equipment financing is that the asset itself is the main collateral for the loan.

Key in presenting your lease application is the ability to demonstrate how the asset will benefit your business and that your firm can handle the monthly payment obligation that comes with the lease.
The two concepts that a lessor looks at is primarily cash flow and your overall debt position versus equity. This basic concept is known as sale leaseback financing.

Much is written on the key advantages of leasing - at the end of the day they can be summarized as follows:

- Your ability to acquire the asset you need while removing the key obstacle of ' cost’

- Term - You want to be in a position to match the term of the lease with the expected useful life of your asset acquisition

- Tax advantages - talk to your accountant, as in many cases it is more advantageous to lease rather than purchase or take out a loan

- Payment flexibility - payments can very often be matched to the seasonality and cash flows of your business

Is there a bottom line for your asset acquisition plans in the new year? It simply that you should consider lease financing as a key component of your Canadian business financing toolkit,

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your asset 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 13 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 Credit Line Solutions In Canada . Exploring Asset Finance & Traditional Financing Solutions For Working Capital Needs

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You Don’t Need An AI BOT To Solve Your Cash Flow & Business Credit Needs!

OVERVIEW – Information on business credit line needs in Canada. When it comes to working capital & cash flow solutions do asset finance facilities or traditional bank make sense for your firm

Business line of credit needs are often best solved when your firm understands why you need this type of financing / working capital facility. And the good news? You don't even need one of those ' Artificial Intelligence Bots ' to run thousands of algorithms around your cash flow needs. It's all about understanding how your company is doing and what type of solution is available. Let's dig in.

If credit line needs provide one thing it certainly is ' flexibility ' as it relates to your financing ' wiggle room '. You're borrowing what you need and of course you're only incurring charges for amounts you use which hopefully are constantly revolving as you turn over key assets such as receivables and inventory.

Even more flexibility comes around simply knowing your firm should be able to handle the day to day ' surprises ' - aka ‘bulge ' cash flow needs.

Credit lines are of course also not term debt - while they are typically collateralized by your business assets it's at the end of the day somewhat unsecured.

Knowing, and understanding the true financial health of your business will often dictate what type of facility you're eligible for. Key to that of course is how long you've been in business, what type of financing rates your firm can handle, as well as speed and accessibility to financing approval.

Thousands of businesses with SME COMMERCIAL FINANCE needs are taking advantage of short term working capital loans which are often marketed (or disguised?) as business credit lines. They are sought after because they offer quick approvals and approval criteria are far less restrictive than those solutions offered by Canadian chartered banks.

How healthy your company is from a financial perspective will typically dictate what type of credit line your firm can access. The two most typical solutions are the traditional banking solution, or, alternatively, asset based lines of credit offered by non bank commercial lenders.

Knowing how well your business is running in the short term is key to both supplier and credit line provider relationships. While volumes are written on how business financial health is determined the real world dictates it all boils down to:

Profit/loss generation
Operating Cash Flows
Positive/Negative working capital positions
Existing debt

Firms that are financially challenged but who have or can increase good gross margins can typically absorb the higher rates that come with non bank business credit lines, often referred to as ' ABL 's ' - Asset Based Credit Lines.
If you’re looking for solid assistance and the cash flow / working capital solutions available in the Canadian marketplace seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can provide business credit line offerings that meet your 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

The Dirty Little Secret Your Banker Won't Tell You About Asset Based Lending and Asset Finance

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Information on a business line of credit strategy known as asset based lending. Why this asset finance strategy is the best kept secret in Canadian business financing, and why your banker probably never told you about it!

Can you blame someone for not telling you about a good thing? Especially when that thing is better than their thing! No surprise then that asset based lending is the dirty little secret in asset finance that that bankers in Canada don't want to let you know.

We hate to burst their bubble... but what the heck; we'll share that secret with you and touch on why it's such a powerful non bank financing strategy.

To understand why an asset based lending solution is so different we need to understand what we are comparing it against. The comparison is of course an operating line of credit with a Canadian chartered bank. They are great, low cost, and run smoothly on a daily basis. If... and we repeat if... you can get one and get it increased as you need it.

Your ability to access a business line of credit with the bank focuses in on everything you probably feel isn't necessary. You have assets; you have growth, so whats the problem. The chartered banks, in their wisdom allocate these lines of credit based on yes... the assets... but as importantly ratios, covenants, personal guarantees and outside collateral. By the way, we think they do a great job of that... mainly because they are lending you my money which is on deposit at their bank. So all power to safe lending practices, and that's why Canadian banks are some of the strongest in the world.

That's all great say our clients, except it does nothing for us when you want to access business credit. That's brings us to our secret - asset based lending in Canada and why this type of asset finance is a powerful working strategy. And could it be simpler. Not really. It focuses on the two things you have always had... assets and growth potential for sales and profits.

Asset based lending is the ability of your firm to borrow, daily, as you need it, against receivables, inventory, as well as equipment and real estate if they factor into the picture.

It supports you credit needs, and does not, we repeat, does not revolve around those other requirements the banks have, i.e. rations, covenants, emphasis on personal net worth, outside collateral, etc.

Want to know an even more surprising secret. Some of the Canadian banks actually have small boutique divisions of asset based lending. In our experience these divisions don't communicate properly with regular commercial bank divisions around what their offering is.

So who actually offers this type of asset based lending. In Canada it's a relatively small handful of firms, some of which are U.S. based, and who have a tremendous expertise on the things you already have, inventory, receivables, and purchase orders and contracts.

Asset finance can cost the same as the chartered bank offering, in,many cases it costs a bit or a lot more, depending on the size of your transaction.A business line of credit via an asset based line of credit generally starts at 250k and goes up to anywhere up to 50 Million or more!.

Accessing and navigating the maze of this boutique financing is difficult for the Canadian business owner and financial manager. Speak to a trusted, credible and experienced Canadian business financing advisor on why asset based lending is the secret you want to know more about. And why the heck didn't your banker tell you about it sooner!

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 13 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







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