Purchase Order Financing In Canada : Made To Measure Trade Finance Solutions For PO & Contract Funding

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Secrets Of Purchase Order & Contract Financing In Canada

OVERVIEW – Information on purchase order financing in Canada. Trade finance solutions can finance your PO or Contract opportunities when traditional financing can’t be achieved

Purchase order financing in Canada solves a bad business nightmare. That nightmare? You got the PO / Contract ! Now what ? We're discussing trade finance solutions- so let's dig in .

Purchase order financing is a great tool for firms that have unusual purchase order and contract sales financing needs but are potentially unable to access traditional financing via banks or their own capital resources within their firm. In many cases firms are smaller, or sometimes early stage - in some cases it's just too much success via that large order/contract!

So how does it work? And does your firm qualify. Other client questions include:

How does this type of funding work >

What are qualifications and costs?

Great questions, now let's explore some answers!

Typically Canadian firms looking for this type of financing are distributors, manufacturers, or perhaps wholesalers. A variety of industries in Canada have access to this type of financing, but those certainly tend to be the typical firms needing assistance.

Your need for purchase order financing arises out of what we call the classic working capital gap. What do we mean by that? It's a case of your suppliers requiring payment either up front or within 30 days, with your firm unable to generate those funds for payment and therefore unable to fill large purchase order and contracts in your favor . That's the classic working capital conundrum.

Your supplier is asking your for payment in advance or 30 days, and you won’t receive payment for at least 60-90 days, perhaps more depending on your build cycle, etc.

Naturally no business owner/financial mgr wants to turn down orders or lose competitive market position.

The obvious solution for low cost large amounts of funds are Canadian chartered banks, but our observation is that many firms simply can’t satisfy the banks requirements for this type of financing to occur. If your firm is growing, profitable, has a clean balance sheet and strong historical cash flows and history you of course have a solid chance of meeting bank requirements. But, at we said many firms can't satisfy all those requirements of traditional finance.

When you access p o financing you can have comfort that your suppliers will be paid, and at the same time you generally have access to all the funds you need. Typical purchase order financing applications take anywhere from 2-4 weeks to complete and involve basic financial due diligence on your firms ability to fulfill the order, who your customer is (they must be credit worthy), and your proper supplier sources must be identified and vetted.

So, who exactly qualified for this type of financing? Naturally your company must be in possession of a contract or order that is not cancelable by your client. The PO finance firm arranges to pay your suppliers directly, that alleviates all you cash flow and working capital concerns.

The transaction is completed when you ship the goods and your receivables are generated on the sale. It is at this time the purchase order finance firm expects to be paid, and this is traditionally handled by your firms monetizing of its receivable via a bank or factoring facility. Factoring and A/R financiers are great partners to the P O financing strategy, because use of them guarantees payment to your P O firm.

Let's cover off a couple tips and secrets around the cost of purchase order financing - It generally is in the 2-3% per month range in Canada, and that means you have to have solid gross profit margins in order to be able to sustain the finance charges.

Let's be honest though - let’s say your firm has been doing 750k of revenue for the last couple years and you finally get the large order from a major customer for 1 Million dollars. Wouldn't you give up 2-3 % of your profit margin in order to make one sale which is the equivalent of your entire year's business? We think you should positively consider that! Who wouldn't!

Clearly the higher cost of this type of financing covers off the complexity and risk that the P O finance firm takes in paying for goods , waiting to get paid, and having the belief that your firm will fulfill the contract order .

It has been our observation with certain clients that your successful completion of a purchase order finance deal typically significantly enhances your relationship with your major suppliers and of course customers, that's a secret benefit that is intangible but invaluable at the same time.

Is P O financing for everyone? Maybe not. Could it be possibly the solution to major working capital needs if your business is growing and can't be financed traditionally - we certainly think so?

Seek out and speak to a trusted, credible and experienced purchase order finance expert to explore your options.


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

Is a Sale Leaseback of My Business Assets a Good Thing?

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At various points in the economic cycle a business owner or financial manager considers a sale leaseback financing. Is that type of transaction advantageous, and what are the risks and benefits?

Many firms do not fully know about or understand the advantages of this type transaction. This is a classic alternative financing strategy that works best when it is a good deal for the lessee and the lessor. It does not work well when the lessor presumes it is a 'cash grab' by the lessee.

This type of financing should be contemplated if your firm has the following characteristics:

- Experiencing working capital challenges

- Declining profits

- Excess unencumbered assets

- High amount of debt

If a company has a high amount of debt a sale leaseback transaction can still be a very positive financing event. By structuring the the transasction as an operating lease the debt becomes 'off balance sheet '. This gives the appearance of the company being not so highly leveraged and quite often it can save the company from being in default of its loan covenants.

In many cases the sale leaseback can bring a significant amount of capital back into the firm.

So when does a firm consider such a transaction - every industry is different but if the firm is bottom line, over leverage, i.e. Debt too high, there can be advantages to an off balance sheet sale leaseback transaction.

If a company has historically had pride of ownership, and has significant assets, and is suddenly going through a high growth stage it also becomes a good candidate for a sale leaseback. Cash flows are restructured and the company gains significant new working capital.

The best candidates, overall, for this type of financing strategy are high growth companies who would prefer to invest additional cash in receivables and inventory. Naturally no lessor wants to consider such a financing if the company is in some sort of death spiral.

In some cases when assets have in fact appreciated (not depreciated in value) the company may actually be able to report a gain in earnings, as the sale leaseback transaction in excess of book value allows the company to book the sale leaseback gain into the profit account!

Many government institutions, such as municipalities, hospitals, etc may find this type of financing strategy as optimal in solving temporary budget cuts and working capital challenges.

In summary, a properly structured sale leaseback can provide new cash, enhance earnings, and in effect be a creative way to temporarily re finance the firm or institution.

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














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

Article Source: http://EzineArticles.com/3723483

Avoiding Blunders in Working Capital Financing and Cash Flow Financing

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Information for Canadian business owners and financial managers on working capital financing and their ability to choose the right solution for cash flow financing needs. Traditional and alternative methods of financing can be cobbled together to give you a total Canadian business financing solution.

Mistakes. As Business owners we all make them. Let's talking about wrong choices in working capital financing and how the right types of cash flow financing can turn adversity into opportunity for growth and profits.

All Canadian businesses need working capital, permanently, and in many cases, on a ' bulge' basis from time to time. In essence you are financing your operating cycle, and most business owners intuitively know their industry has a unique cycle - that being simply the time it takes for a dollar to flow through inventory, A/R, and back to cash.

Larger or established? You probably have a better chance of seeking what people refer to as ' traditional' forms of financing. Quite frankly we're not sure anymore what traditional means, as the lines are getting blurred between what some consider as non traditional working capital financing.

Maybe we're different, but we seem to meet more and more clients that are unable to access capital for growth and development. They seek to enhance working capital in a variety of methods. Those include receivable financing, aka ' factoring', asset based lines of credit, financing for purchase orders ( yes, you can finance a purchase order!), and even monetizing hard assets into revolving facilities such as a short term bridge loan on equipment, with proceeds used for working capital and cash flow.

The bottom line is your need to focus on liquidity, so if you have positive working capital as calculated by the text books ( current assets - current liabilities ) you must therefore monetize those assets into the ' cash is king ' model.

The harsh reality is that as you textbook calculation of working capital goes up your actual cash flow is negative, given that your investments are simply tied up in inventory and receivables which seem to be collected more slowly every year in our opinion and those of our clients.

Naturally if you are able to be paid in cash at time of sale, of if inventories turn very quickly, and billed customers pay promptly,, well suffice to say the cash flow financing pressures are eased quite a bit - but reality of business usually does not give us that luxury.

We are often amazed at how many clients we meet who are looking for proverbial ' working capital ' but are in a position of not being able to define the type of financing they think they need

The ultimate cash flow support tool is the Chartered bank operating line of credit. But many business owners who do not qualify for these facilities are moving to either a receivable financing facility or an asset based line of credit. These come at a higher cost, but provide liquidity often 100% greater than might have been achieved previously, had they been bankable.

So whats our take away tip here - simply that you must look beyond the rate and focus on what collateral you are providing to get the liquidity you need.

Ultimately you need to understand your particular need and choose a financing solution that provides you with the cash flow financing to meet your business needs, as well as grow your business. You have options, which many Canadian business owners and financial managers don't realize. Be they traditional or alternative, one or several of them will work for your firm.

Speak to a trusted, credible and experienced Canadian business financing advisor who will put you on a clear path to the solution for working capital 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






Article Source: http://EzineArticles.com/5440055

Working Capital Factoring - Working Capital Factoring, A Dear John Letter in Canada

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Dear John - Working Capital Factoring in Canada continues to be a disappointment for you and I sympathize with what you are experiencing. I think we have some solutions and observations for your firm that will help you change your attitude towards working capital factoring.

John - I know as a Canadian business owner you are looking for financing that will be a major tool in assisting you to grow your business and allow you to reach your sales and profit goals. When we talked you told us that you perhaps had jumped too quickly into a working capital factoring facility that was not up to your expectations.

So let's backtrack a bit John, let's understand what working capital factoring is about, why it doesn't work well for many firms in Canada, and how we can make it work almost perfectly for you.

Factoring in Canada came from U.S. and European models that have been in place for hundreds of years. When we line up ten methods of business financing in Canada Factoring might well be number ten, and also enjoy the privilege of being the most misunderstood. That seems to be your experience also John!

However, every years hundreds of millions of dollars are injected into the Canadian economy based on factoring facilities. Many firms who have financial challenges, are struggling with grow, etc are finding that factoring sometimes is not a solution, it is the ONLY solution!

John - when we talked a year or so ago based on your investigation into factoring we recapped the basic - it's simply the selling or assigning in some cases of your accounts receivable, at a discount. I know the discount has been a challenge for you, and we'll address that shortly. The essence of factoring is you selling and delivering your products and services and not having to wait 30 -90 days sometimes for your payments from your customers. As you have stated, if you had the cash immediately, you would re invest that cash into more inventory, sell more, and once again, collect immediately.

So John, what went wrong, and why have you contacted us for assistance? Here is what we think. While you recognized factoring as almost a perfect option for your challenges, you entered into the wrong type of factoring facility with the wrong firm. Everyone had good intentions, but it just didn't work. You wanted a working capital factoring arrangement because you had a line of credit with your Canadian chartered bank, but it was far from what you needed based on new orders and contracts. You were OK with factoring discount rates, which in Canada can be from.75% - 3% per month.

The reality is John, as we stated, that you 'signed up 'with a factoring firm that did not meet your needs or understand your business model. We recommend what is known as a non- notification working capital factoring facility. It will remove 80% of the problem you have with factoring, which is that you did not understand that the factor company would be billing and contacting and collecting from your customers. That is intrusive you found, we agree!! So let's focus on getting you the non notification facility so you can bill and collect your own receivables and maintain those customer relationships.

John - because you didn't read the fine print of your working capital factoring arrangement we now find you are locked into an agreement for several more months. We will put you in a facility that will not lock you in; you can move on or amend that facility at any time. That takes away another 10% of your problem with working capital factoring.

Now let's talk price and discount - We will arrange that you get same day funds for 90% of your invoice amount, and you will receive the balance quickly, less the discount fee, when your customer pays. I think we have just taken care of 100% of your problems with working capital factoring.

John - in our next meeting we will address more advantages about working with a firm who is trusted, credible, experienced and capable of providing you with the best working capital factor facility for your needs. Thanks for calling and telling us what happened!


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






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

Article Source: http://EzineArticles.com/3986747

Business Financing In Canada : Are Asset Finance Strategies Your Secret Weapon For Loans & Business Funding

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The Optimists Guide To Business Financing In Canada

OVERVIEW – Information on business financing in Canada. Adopt a positive outlook to loans and funding needs via these asset finance strategies

Business financing searchers in Canada sure could use a secret weapon for their loans and funding needs. Adopting a positive attitude sure helps, and that's achieved when you're confident of the alternatives and solutions. Let's dig in.

The reality is that certain business finance strategies and tools work better than others based on your firms particular needs. ABL, the acronym for ' Asset Based Lending' might well be the main ' secret weapon' you've been search for in cash flow independence.

.What if you have a financing mechanism that was a non bank type financing that covered all every size of business, all industries in Canada, and did not place a major emphasis on your balance sheet, income statement, profits or lack thereof! And was, relatively speaking easy to arrange.

We can hear you lining up as we speak! Let's talk a bit about what this financing is, how it works, and cover off some key questions that clients have about costs, day to day paper flow and reporting, and the key advantages.

No business finance strategy is without some form of ' downside ' so we'll explore that also in case there are concerns that need to be addressed.

ABL, or asset based lending allows you to borrow, on a regular, ongoing basis, against; you guessed it, ' assets '! Your assets in any business are always going to be the same and they can be categorized into a few key categories which include receivables, inventory, equipment, and, in some cases real estate.


When you are in a traditional Canadian chartered banking relationship your lender lends against those same assets, but probably not to the extent that a true asset based line of credit would provide you with. And the pre requisites for that banking facility are all too clear for Canadian business owners and financial managers.

To achieve traditional Canadian chartered bank financing you must be profitable, have a solid balance sheet, and have a decent measure of personal guarantees and outside collateral.

That's now what ABL is about, it's about only your business assets, and monetizing them in a fashion that makes them as liquid as you need them to be.

A typical asset based revolving line of credit would margin all your receivables, a significant extent of your inventory, and include drawdown ability on unencumbered equipment and real estate if they in fact were available and required. You therefore only have to remember one thing in ABL lending, ' assets ‘. Business assets mean access to funding!


Clients always want to know if and how they qualify for such a facility. You must be in a position to provide some decent reporting around the aging of your receivables, the turnover of your inventory, and the market value of your equipment.

We would respectfully suggest if you can't do that you might not even be a candidate for staying in business, so those certainly aren't onerous requirements!

So who is eligible for asset based financing? Businesses that are the best candidate for this type of financing are those with high growth patterns, or firms which are coming out of a challenging period in their history. A frequent misunderstanding around this type of financing is that it is ' debt '. That is not the case. ABL strategies simply monetize assets - They accelerate borrowing capability based on turnover and value of assets.

There's no Holy Grail ' perfect ' financing strategy - but asset based finance should always be considered when you're looking at day to day funding for growth & operations.

Oh, those ' disadvantages ' and risks we spoke about? The two disadvantages, or potential concerns are the higher cost of this financing, as well as the additional reporting we spoke about.

Other frequently used asset financing strategies that should be considered include:

Factoring/ AR Financing

Sale Leasebacks

SR&ED Tax Credit Bridge Loans

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your funding 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

Purchase Order Finance In Canada : Made To Measure Cash Flow Financing For Orders / Contracts

Purchase Order Financing Is One Way To Navigate the Minefield Of Cash Flow Financing Growth

OVERVIEW – Information on purchase order finance solutions in Canada. Financing sales via the right cash flow solution increases revenue potential and profits

Stan Prokop


Purchase order finance solutions in Canada address continuous comments from new clients. Their issue? 'Getting working capital financing for my orders and contracts actually is harder than getting the order itself? '. Let's dig in.

How do Canadian business owners/financial mgrs address their ability to get large new orders and contracts, fulfill the job, and did we forget to mention - get paid ?! It is the working capital and cash flow that come out of those contracts and orders that will of course help you grow sales and profits.
So how does purchase order financing and P.O. Factoring work in Canada? And is it actually available?! Here are your answers:
Purchase order financing or factoring provides you with capital for the key elements of your business, i.e. Product purchases, payroll, and working capital to carry receivables. Most clients we meet in the purchase order finance area have what can only be describe as the best and worst of problems - that is to say they have the order , they just don't have access to the capital to complete the order or project .

The downside of being able to fulfill those orders without proper financing is place is that you don't want to strain your relationship with key suppliers, while at the same time you strive to deliver your product or service on an 'on time 'basis.

Naturally your ability to accept larger orders enhances your overall competitiveness within your industry, and larger orders usually translate (hopefully!) into larger profits. That's how smaller companies get bigger.

Canadian business owners and financial managers consider purchase order financing and the factoring of their purchase orders, but at the same time they don't want to take on additional debt, or give up ownership of their business to an investor / partner.
Looking for the basic ' mechanics ' of P O Finance. It starts with having a P.O. and contract from a legitimate credit worthy company - More often than not some of these clients can actually be outside of Canada - we see that all the time.

The purchase order finance firm - typically a commercial finance company - not a bank , provides you with the minimum amount of capital you need to complete the orders. In certain cases this might involve making payments to your supplies on your behalf.
In some cases the PO finance or P O Factoring firm could be asked to issue a letter or credit to a supplier on your behalf - that is also a common P.O. financing and factoring strategy that achieves similar objectives.

Therefore the benefits of this type of Canadian business financing are very clear:

Being competitive on large orders/contracts!

Other alternatives to order/contract financing? You could enter into long term working capital or cash flow loans, but these typically involve payments that are fixed over 3-5 years. P O Financing strategies bring no debt to the balance sheet - you're monetizing /cash flowing and order/contract! Although purchase order financing is generally quite a bit more expensive than bank financing it allows you to do short term financing without taking on additional debt on your balance sheet.



Speak to a trusted, credible and experienced business financing advisor who can provide you with information on how PO financing and factoring works based on your unique company/industry 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