What If Inventory Financing Lenders Were the Solution to Your Cash Flow Based Financing

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Information on on how Canadian business owners and financing managers can access inventory financing lenders for cash flow based financing and additional working capital. Requirements to initiate an inventory and PO finance strategy for your firm

Just what if your firm had a significant inventory component and you had access to cash flow and working capital against that inventory investment in working capital that your firm has made.

A proper inventory financing facility in Canada is one in which you can draw down on a satisfactory level of your inventory value and repaid it as you replenish capital via account receivable and cash collections. Your success in achieving a proper inventory financing component in your overall business financing in effect optimizes your working capital to the extent you need to.

How would your overall financial position change with that additional working capital and cash flow? You would then have the ability to take on additional contracts and purchase orders, your supplier relationships would most probably improve, and faster asset turnover of assets and receivable generates faster profits and return on assets. Those are good things.

The main advantage of an inventory financing or A/R financing component is your ability to accelerate cash flow. Let's be honest, if you were self financing (i.e. no borrowing facilities) and had to wait for inventory to be sold and receivables collected then you are significantly slowing your growth ability.

In the context of the inventory financing we are discussing this financing is not a loan per se - that's important to understand. It becomes a part of your revolving facility and is simply collateralized by receivables and inventory.

Your inventory financing arrangement is reflected in a type of document generally known as borrowing base certificate. We also advise our clients that it is highly preferable to have a strong handle on your inventory reporting, and also you should preferably be using some sort of a perpetual inventory accounting system.

Inventory is a very generic term, we hate to do it but we complicate things further by discussing with clients the fact that inventory can consist of raw materials, work in process, and of course final finished goods inventory. As a result the valuation of what is financed varies by industry and inventory type. Slow moving or highly specialized product is much more difficult, but not impossible, to finance.

Could you be more competitive and profitable if you have inventory financing at 40-50% of your gross inventory value - we are pretty sure you could be!

On larger transactions you should fully expect some sort of initial appraisal and valuation on your inventory.

In Canada inventory finance is highly specialized, we can almost call it a niche financing. Speak to a trusted, credible, and experienced business financing advisor to determine if this financing works for you. Through that process you should be able to develop a clear understand of the differences between bank financing, asset based lending, which incorporates inventory finance, and purchase order financing if that is applicable to your business model.

At this point you are now in a position to ensure that inventory financing advances are a great way to acquire mfr and carry inventory for orders and contracts you receive

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

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Business Credit Needs ? Here’s Your Working Capital & Financing Primer!

Business Financing Alternatives In Canada

OVERVIEW – Information on business credit in Canada . Numerous sources of working capital, cash flow and asset financing solutions currently dominate the SME COMMERCIAL FINANCE market . Which one is right for your firm

Business credit needs are anything if not... consistent! In many cases the access to capital/ loans/ financing is one of the biggest obstacles to growth for a large section of companies constantly searching for SME COMMERCIAL FINANCE solutions. So how does the owner/mgmt ensure they access to commercial financing needed to grow the company. Let's dig in.

You can't find it if you don't know what you are looking for. What do we mean by that? Simply that cash flow, working capital, business financing can be sometimes ' overworked' ' catch all' terms that mean various things to various people.

When we're talking to clients we discuss the need first, not the solution! Thankfully those needs can be nicely broken down into several categories as follows: day to day operating capital, immediate growth needs for new opportunities, equipment and asset acquisition, hard asset refinancing.

The most common ' go to ' solution in the eyes of ownership/mgmt is to solicit chartered bank financing in Canada. If your firm has a strong balance sheet , profits, established history and additional collateral etc you'll find all the financing you need from our chartered banks who have virtually unlimited financing potential .

That's easy for us to say, but the majority of clients we meet simply can qualify for all business credit and working capital they need to survive and grow. Typically they have some traditional financing but not enough, or, in a more severe case, do not qualify for traditional bank lending in the Canadian landscape. So what's the plan?

When the going gets tough, the tough get going goes the expression, so it is a case of getting somewhat ' creative' in your search for working capital .If your firm has assets and growth prospects we firmly believe you can get most, if not all the financing you need.

This financing can be achieved in a number of ways. Strategies include monetizing your current assets via a working capital facility for receivables and inventory. Properly set up you should congratulate yourself - You just negotiated unlimited working capital! The reason? These facilities allow you to borrow on an ongoing basis relative to the size of your current asset investment in accounts receivable and inventory.

We referred to generalization of terms such as cash flow, working capital, etc - the lending we have just described is best known as asset based lending, and in many cases can cover off purchase orders and new contracts also.

What about acquiring new assets for your business? Equipment financing and sale leaseback financing for either new or owned/unencumbered equipment are great solutions to acquire or refinance capital acquisitions. In Canada lease financing is available for all asset and credit qualities for any amount, from 1000.00 to millions of dollars.


Although the majority of clients we discuss working capital needs with are private firms your firm might be public, as a result you might be in a position to consider an equity line of credit, with the equity questions being your stock.

If your firm has revenues under 5 Million dollars and is privately owned you should consider the best financing available in Canada - it's the government BIL/CSBF loan that is underwritten by our good friends in Ottawa.

Loans up to 500,000.00$ are available for hard assets such as equipment, leaseholds, real estate, etc. You can even be a start up and qualify. The financing rate is incredible attractive, guarantees are limited, and terms and structure flexible. This program is one of the great secrets in Canadian business financing.

It’s always about the bottom line, so what’s our bottom line today? Focus on what type of financing you need, determine if you qualify for traditional financing, and if you don't get creative with a multitude of solutions available.

Confused? Hopefully not. Seek out and speak to a trusted, credible and experienced business financing advisor who will guide you through the maze to what we believe will be the right solution for your firm.


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 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

Benefits Of Invoice Factoring And Factors That Affect The Cost Of Factoring Receivables

Cash Flow Challenges Become Your Regular Routine?

Here’s A Solution If You’re Serious About Changing That

OVERVIEW – Information on the cost of factoring receivables in Canada. Invoice finance is currently the most popular method of accessing immediate cash flow finance sales activity

Invoice factoring, and other versions of receivable finance / asset based financing in Canada, and the cash flow challenges that come with running a business remind us of that classic movie ' BEING THERE' starring Peter Sellers. Sellers, playing a ‘savant’ gardener in the movie says " and then we get spring and summer again”!


In the movie he has a ' routine ' in life - things are always the same. How then can Canadian business owners and financial mgrs break out of the constant cash flow challenge cycle? Receivable finance is one clear solution to that problem.
As an owner/mgr you know the drill - working capital is tied up in your A/R and inventory. Can invoice financing help untie that capital.

Let's address that issue around the following key points: Exactly what is factoring, what are the benefits for your firm, what does it cost, and how does it work. That's a mouthful, but your understanding of these key issues could be the first step in your better understanding of one of the most popular methods of business financing today in Canada.
Factoring is the method by which you ' sell ' your receivables as soon as you issue them. Selling anything gets you ' cash ' and that's the core premise of factoring. The largest, most successful corporation in Canada also offloads their receivables. They do that under a fancier method - securitization - at the end of the day it’s the same thing - Selling you A/R constantly as you make sales to generate instant cash.


Do you have to sell your receivables? Of course not - you can wait 30/60/90 days for your customers to pay you - but you've been there already and that's not working!


So what then is the main benefit of factoring solutions? Essentially it's unlimited working capital in cash flow as you grow your sales. How can we say unlimited cash flow - well, simply because if you have receivables you will always have immediate cash for them. Cash flow problem solved!


Part of the problem in our clients understanding the cost of factoring is that they view it always as an ' interest rate '. A/R commercial finance firms don't call it that - it is a discount rate. They purchase your receivable (either on, some or all of your invoices) at a discount - That discount in Canada is anywhere from 1-2%. The norm tends to be closer to 1.5 - 2%. So a best case scenario is giving up $150.00 on a $ 10,000.00 receivable.

So who in fact ' qualifies' for this type of financing? The reality is that if you have receivables you qualify! This type of financing covers pretty well every industry in Canada. There seems to be a number of industries that are always using factoring - i.e. trucking/transportation, staffing, security guards, etc - but don't be confused by that point - if you have a receivable, Canadian, U.S. or otherwise , it can be financed - or in our lingo ' sold' and ' cash flowed'. Even international receivables can be financed with a few modifications to the program.


So are there alternatives to factoring? Of course you can arrange more traditional financing via a bank, Canadian credit union, etc. However, that type of financing comes with stringent requirements, including solid financial performance, personal guarantees, other collateral, etc.


A/R finance facilities can be efficiently put in place - the process simply involves a basic application and the documentation to register the facility, in a similar manner that any bank would, i.e. a security agreement on your receivables, etc.
One other key benefit is facility size - at a bank type revolving line of credit you have of course a limit, and you can't exceed that limit .That concept goes out the window with your receivable financing facility because your limit grows lock step with your sales and receivable investment. That's true unlimited financing!


It always comes down to cost and the overall pricing of your facility will depend on several factors - the overall size of your receivable portfolio, its credit quality, how your customers have paid traditionally, etc.


We recently met with a customer who advised us that their total all in rate with a Canadian bank, including the rate and fees for all services, etc, was close to 11-12% when you factor everything in. Let's say your factoring rate was 2% per month. And lets also say you now had unlimited cash to pay suppliers promptly, take prompt payment discounts, and negotiate better pricing.
There really isn't in most cases that much more difference in factor pricing and bank pricing when you weigh in all the comparables.


Speak to a trusted , credible, and experienced business financing advisor who can assist you in determining the best A/R pricing for your firm , and allow you to focus on benefits that you can reap from this growing in popularity business financing in Canada .

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

How To Finance CRA Tax Credits : SR ED Financing Is The Solution For Your SR&ED Cash Flow Plan !

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We Just Killed 2 Birds With One Stone When It Comes To Cash Flowing Your SR&ED Credits

OVERVIEW – Information on how to finance CRA tax credits in Canada. SRED finance is an accepted form of cash flowing your SR&ED refundable tax credits

SR ED financing is the 2nd part of our ' killing 2 birds with one stone ' strategy around how to successfully finance CRA tax credits in Canada. (By the way, for the record no birds were harmed in the actual writing of this article). So... should your business consider financing via a SR&ED loan, and as important: How do you do that? Let's dig in.

The ability to ' unlock’ the cash flow represented in your SR&ED claim is a key part of the working capital challenge undertake by firms who participate in the Scientific Research & Experimental Development ( SR&ED ! ) program .

We're all familiar with the age old expression... 'Pay me now or pay me later '. In the case of sred financing it becomes a similar question ' should I wait for my cheque from the government, ( which could actually take potentially a year or more ) or should I finance that claim and put that cash back to work now .

The importance of your R&D Capital investment keeps you competitive, so why not re invest those funds and get them working?!

When you finance your sred claim you are in effect discounting, selling, or we can even use the word 'factoring 'the claim. You may or may not have chosen to book the sred as an account receivable, that's your call, But ... we can assure you if your claim is valid that it is a true receivable and can be monetized for cash flow and working capital now.

In general in Canada banks and tier one institutions do not finance sr&ed claims, so special expertise is required. The entire process can be completed in a matter of a couple weeks, and we often liken the sred financing process to any other business financing that you would contemplate - meaning:

Determine you are eligible for the sred program

Prepare a claim

File a claim - ** Remember claims don't need to be fully filed or completed to be financed

Do some math around how long it will take you to get your money and what you could do with 70% of the claim funds being in your bank now. (Claims are usually financed at 70% loan to value) The loan is a bridge loan with no payments required.


We hate to hit you with another age old cliché, that being 'time is money ', but quite frankly the essence of our info focuses on that statement. By that we mean that if you have a sred claim, and you have filed it already, and you are days, weeks, or perhaps a month or so away from getting your cheque, well... clearly it might not make sense to finance your claim.

However if you haven't filed your claim yet, or you have just filed it and haven't had a technical or financial audit on the claim then clearly if you need the cash flow back from your r&d investment then consider financing the claim .

So consider financing your claim and taking advantage of the opportunity cost of capital involved in using your SRED cash. Most firms can use cash to help generate sales, profits, and re-invest in more R&D capital expenditures.

The SR&ED program is probably the best government support program out there for Canadian business and industry. Take advantage of your share of the billions of dollars that go out to you in the form of non repayable grants for your investments. If it makes sense finance the claim and accelerate your cash flow and working capital.


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

Working Capital Lines of Credit and Loans That Work - Not Just For the Bank!

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When business owners and financial managers have successfully negotiated working capital facilities or term loans it should not be the end of the story. By that we mean that the business person needs to continually focus on what the bank or other financial institution requires, and more importantly, how they view the customer from a control point of view - i.e. are they in control or able to exert control on your business.

The balance sheet must be a top focus for the business owner - once a firm is over leveraged, i.e. borrowing too heavily, the bank generally starts positioning around their overall security or your ability to de-leverage.

Borrowers must be comfortable and knowledgeable about the use of 'triggers '. Triggers are the implied actions the bank or institution will take when things aren't working out. This can include everything from general poor financial performance to very specific pre agreed upon financial ratios. And the business owner must remember that he or she agreed to and concurred with these ratios.

Banks want to see cash flow ' flowing ' - flowing to repay their debt - so there many be triggers put in place by the bank to ensure that minimum cash flow standards are kept, and also that owners and shareholders do not withdraw excess funds.

Over time business owners will probably find, in our experience, that the bank restrictions either tighten up or loosen, depending of course on the overall comfort level the bank has with the firm. Clearly firms that seem temporarily challenged in profits and balance sheet quality will receive much more scrutiny.

Business owners can do some very solid and valuable preparatory work in negotiation of bank triggers. If they have a solid long term history of earnings this should be a very strong negotiating point with the institution. Simply by self introspection of the firm can the owner or financial manager focus on what is going to go wrong re sales, pricing, forex, etc. The owner needs to be able to talk to these issues and show how he could address them.

For a start calculate your own key operating ratios, if they are going to be discussion points with your bank or institution you might as well know your numbers now. Using 'what if 'scenarios help immensely and will position yourself as knowledgeable about your business.

Discussions with your bank need not be absolute and immediate on any time of loan negotiation - you can get a great informal sense of what the bank is thinking and work from that point forward. Try and read between the lines as to what is hot, and what a Vis is not with the bank Vis their perception of your firm, industry, etc.

In summary, business owners need to show maximum flexibility on working capital and loan negotiations. Negotiations should be from strength, accentuating the positive. Example - strong forecast sales and profits and potentially offset a weaker balance sheet. Trade-offs with the bank is also encouraged- and fewer triggers and covenants are better than more! And yes, there is more than one bank in the world, although business owners should be cautioned that shopping around is not optimal at all times, and can in fact backfire, particularly a small business. Business owner beware!


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

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Is 'Good Enough' Ok In Equipment Leasing When Structuring A Business Equipment Loan or Lease?

Information on equipment leasing in Canada. Canadian business needs to maximize the benefits of a business equipment loan or lease and ' good enough ' should not be an option!

Is 'Good enough' acceptable to your firm when you are looking at equipment leasing and arranging a business equipment loan or lease in Canada. We don't think so and we'll share some fundamental info and strategies that take your business financing to the next level when it comes to benefits.

You have arrived at the lease or buy decision base on your need for new fixed assets for your business. Financing those assets out of regular cash flow, or entering into cumbersome bank loan arrangements isn't an option.

The use of the asset over the long term should be what drives your financing decisions. Longer term assets require long term financing, and that's what equipment leasing is all about - matching the useful economic life of your asset to your cash flow and financing structure.

We encourage clients to take a hard look at lease term. Don't let our 'good enough' statement overtake your decision to properly match he asset term. Many lease firms that are focused on offering one type of term, or one type of lease (there are two types) are going to try to sway you towards their product or service offering. If there were only one lease company in Canada that would be problematic - fortunately there are hundreds!

Business owners and financial managers need to separate. What do we mean by that? We mean that you must separate the manufacturer and the price of the equipment from the financing. If you are dealing with a MFR that is also the financier of your asset make sure you maximize the benefits of that type of financing, known as 'captive financing' as its often the best available in terms of rate term, and structure.

The lease financing industry preaches '100%' financing for your business equipment lease and loan needs. The reality is though that often times a down payment of security deposit is required. Make sure that request is reasonable, and competitive, don't fall into our 'good enough' scenario of having to accept every term or down payment that is specified in your finance offer.

Structuring is what lease financing is all about. Be armed with a cash flow analysis that makes sense for the type of asset you are acquiring. Remember, if you don't ask or request a 'vanilla' or typical lease solution will be offered up - you don't have to accept that if your cash flow needs, business seasonality, or term of the lease are particular to how you want to benefit from lease financing.

Let's take a quick example - let's say you are leasing a 100k computer system. The lessor offers you a 5 year lease based on your firms overall credit quality, and requests a 20% down payment. and specifies payments of 1685/mo. Did you know that in many cases you could get the same lease payment for a 3 year term, saving you two years in payments? That's by utilizing an operating lease and shortening the term. Again, back to our point, don't let 'good enough' be your only choice in asset financing.

In summary, every firm in Canada has unique financial needs, and you need lease financing payments, terms, and structures that work for you. Don't accept 'good enough' in business financing. Speak to a trusted, credible and experienced Canadian business financing advisor on how you can truly maximize financial benefits of a business equipment loan or lease.

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 '


Stan Prokop








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

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