Buying A Business In Canada ? Acquisition Financing A Challenge ? Try Some Common Sense

A Not So Secret Plan For Buying A Business & Financing It Properly

Information on what you need to know when buying a business in Canada . How does cash flow and financing play into your acquisition financing challenges ? Buying and financing an existing small or medium enterprise in Canada

I often wonder if business owners who are looking at purchasing a business take the same sort of outlook as when they are buying something in the stock market.

Let's take some thoughts from the way Warren Buffet

looks at a company and determine if we could be using those same successful strategies.

Those strategies tend to be summed up in a very concise manner -> make sure you understand what you are buying, ensure the industry prospects are favorable, and if management is going to stay on in some capacity make sure they know what they are doing!

Many owners I meet look to buy into businesses, or franchises for that matter, in an industry they don't understand. We would say that if you can't positively feel good about knowing the real sales potential, how expenses occur, what is the cash flow cycle of the business then you should not by look to purchase that business. Naturally many business owners will often get a strong sense of missing a major opportunity - the business owners forgets that Buffett once said 'above average results... are often produced by doing ordinary things'.

Many business owners like to focus on buying a turn around business, a business that has been either abandoned or poorly managed by its previous owners. While there are clearly some great turn around stories out there, more often than not these transactions become large challenges and financial nightmares. More simply speaking: The business was cheap to buy for a reason!

In a perfect world, (and we realize it's not!) it is optimal to consider purchasing a business that has a solid product and reputation.

The people aspect of purchasing any business is also important, and great investors such as Buffet place a large emphasis on management. Obviously the business purchaser has the focus of either keeping management or replacing management. Naturally management that has a focus on the bottom line and on long term growth are to be very valued.

At a certain point it gets down to 'price'. Business acquirers should focus as much on return on equity as just net income. That is one the key areas in a Buffett type purchase decision. A huge mistake is to also focus on volume as opposed to profit margins. Most business acquisitions involve the buyer assuming or generating debt. The overall focus, it goes without saying is to minimize debt.

Getting back to our legendary investor, Buffett creates a formula for what he calls owner earnings - which formula is as follows:

Net profit + deprecation - Capital assets needed to be acquired

We would agree that this is a great way to look at profit potential in any business being acquired.

Buffett modeled his career on one book, a famous finance book entitled 'The Intelligent Investor ', by a fellow named Ben Graham. As dry and out of date this huge text might seem to today's business person, we could still all use a little ' intelligent investing' assistance when make a major decision to buy a business.

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

The Truth About New Business Loans for Your Franchise Investment

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Information on how Canadian franchisees can finance their franchise investment via new business loans that make sense for the franchise industry. What types of loans are available.

You can't handle the truth! We love that now famous movie line,

but we are pretty sure you can handle the truth about one of your major life decisions, completing a franchise investment via new business loans.

When we talk to clients about their desire to finance a franchise it's clear they recognize that this is a specialized type of finance that and are unclear about how to go about completing the financing they need to both acquire the investment and then run the business for future growth and profits.

Let's cover off some of the basics around the truth behind how many hundreds, perhaps thousands of franchises are financed in Canada each year.

There are 3 or 4, depending on size and type of franchise, lenders that are key to completing your franchise investment. The good news is that you know one of them really well, and have some excellent negotiating strength with that person. That person is actually you! Why? Because one of the components of franchise finance is called the owner equity investment. Your part of the funds that you put in are generally recorded as a shareholder loan, and you become in effect a creditor of the business.

That might sound like accounting mumbo jumbo to most of our clients... the truth they are seeking is even more basic than that - ' how much do we have to put in' is always what their questions comes down to! And the truth on that one is that it depends. We can categorically say that over the last couple years with the credit crunch and other factors that you should be prepared to put down anywhere from 30 - 50% of your investment. That in many ways is a good thing because you are helping to shore up equity as opposed to taking on to much debt. If franchises were able to be financed on 100% debt we can assure you there would be many more business failures because of that same fact. If you business falters or stumbles on revenues or collections cash flow problems could set in.

Clients assume, incorrectly, that banks finance franchises outright. We haven't seen that happen once yet - it may have, we just haven't seen it. So getting back to the truth you are looking for, do banks provide new business loans for franchise finance in Canada? You're going to hate us for being vague but the answer is ' kind of '. The reality is that the banks do in fact provide most of the financing for new franchisees in Canada, but they do it under the auspices of a specialized loan called the BIL/CSBF. This loan is actually underwritten and sponsored by our good friends in Ottawa, the federal government. In the U.S. it's called the SBA program; here we call it often an SBL - i.e. Small Business Loan.

The BIL/CSBF loan is a specialized loan with some basic requirements - many of our clients stumble and falter on their own because they are incapable of presenting a package that contains exactly what the banker and government wants to see. We therefore recommend that you seek the services of a trusted, credible and experienced Canadian business financing advisor who can guide you through that process, successfully.

Other ways to compliment the financing of the franchise are equipment financing and term working capital loans.

So, did you handle the truth? We are pretty sure you did, and focusing on how things are done properly should assist you in the successful financing of your franchise investment.


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/5491685

Canadian Business Financing Advice : Here’s 1 Way to Get Proper Loans & Cash Flow Business Finance Advice

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Getting Enough ? We’re Talking About The Right Business Financing Advice Of Course !

OVERVIEW – Information on the proper sources for Canadian business financing . The right business advice around loans and cash flow needs can make your business – wrong advice has broken others !

Canadian business financing advice seems to be all over the place today - but how in fact do you pick a trusted financing advisor? Wrong decisions in this area can lead to major challenges which are not easily fixed.


Many business owners and financial executives want to ensure they can rely on an independent 'trusted' financing advisor when it comes to their business finances. How does one pick such an advisor? Who can get the job done? Let's dig in.


Naturally in today's environment business owners don't have time to waste. Financial or growth challenges abound - Owners and financial mgrs look for someone that can bring expertise and solutions to their business.


We believe this whole area of developing a trust between the advisor and the company is a two way street. It is incumbent on the business owner to make sure the goals and needs of the company are made very clear. Business owners or financial managers should not blur the issues to the point that each party does not understand the goals and the respective roles.


When a trusted financing advisor is chosen he or she needs to be given access to the reins and information on the business and its challenges.


Business owners need to ensure that the specialist firm they are dealing with has experience either with the challenges they are facing, or the particular industry the customer is in. Many business financing challenges are industry specific, so this is not the time to be training and advisor on your business! Most people realize though that many financing challenges are somewhat generic in nature, so although an industry expertise is often helpful, it is clearly not always 100% required.


The business owner and financing advisor need to be able to have effective dialogue and communication on what the operational and financing issues are. Many times there is what we call ' warning signs ', yet in other cases companies are already clearly in trouble.


A financing advisor needs to be given information and clarification on issues related to:

- Sales
- Profits
- Current lenders
- Working capital issues
- Asset issues
- Future goals of the company

A basic understanding of those areas will allow an advisor to recommend / implement solutions such as:

A/R Financing

PO Finance

Working Capital term loans

SR&ED loans

Asset based non bank lines of credit

Equipment Loans/leases

Commercial mortgages

Sales leaseback of fixed assets or real estate

Bank loans/ lines of credit



Naturally the above list is hardly all inclusive, but it is a solid start to the dialogue. The business absolutely has to have a handle on what the intermediate term goals are. Management needs to have a strong sense that the business advisor can assist in the recovery, and the advisor must be given the tools that he or she needs.


Both the business owner and advisor should have frank discussions around the probabilities of success and the timelines associated with that success. What's realistic, what isn’t?


Business owners and financial executives should clearly check the background and experience of the advisor. References are of course highly recommended. Professional affiliations are of course important, but not critical.


References from lawyers, bankers, and accountants are often excellent sources of information. The business advisor should clearly be indicating they have the right attitude and credentials around the business owners financing needs.


It is certainly not unrealistic to have solid discussions around timelines and action items responsibility. Ultimately business is of course people, so chemistry is important, and the business owner should have a sense they could work with the financing advisor. However, at the end of the day you don't have to like people to get the job done (it certainly helps though!). Credibility and experience are ultimately always at the top of the list - but it sure helps to work with someone who's ' user friendly'!
All engagements should of course be documented properly re success, work fees, etc. A credible business financing advisor will of course be willing to sign any required non-disclosure document.


In summary, a trusted business financing advisor is a valuable ' out of the company ' asset to any firm. Business owners and financial managers should choose such an advisor carefully, and pay important attention to the qualities and capabilities that advisor can bring to the table, and ultimately, your firms success.


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

Acquisition Financing In Canada : Avoiding The Wrong Distractions

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The Psychology Around Buying, Selling & Financing Issues In Acquisitions & Mergers

OVERVIEW – Information on acquisition financing in Canada . Knowing key issues around buyer and seller & financing ‘ hot points ‘ makes buying or selling a business with success a high odds strategy

Acquisition financing in Canada almost always involves validating the price you're going to pay to purchase a small / medium enterprise. One reason is that companies in the SME sector don't always have the same talent available to price real value. Business people should of course rely on their trusted advisors for professional help in that area, but this article will hopefully give them insight and advice into their challenge.

The terms involved in financing a business you are buying can themselves be overwhelming to those who don't regularly work with
EBITDA, intangible assets, capitalization and discount rates, etc!


We would point out that as technically overwhelming as some of those issues might be, there is even a whole additional layer of complexity around longer term issues down the road. These would include:

- Owner and management compensation

- Insurance planning

- Estate planning

- exist strategy


With reference to our last point on ' exit strategy ' imagine the look on some purchasers faces when they have not even completed the deal and are encourage to talk about an ' exit strategy '!


At the heart of the matter around the final price paid for a business is the concept that both parties feel they have reached a fair deal. As we all know the buyers and sellers perception of the same deal might vary greatly. Ultimately all the technical jargon around buying a business comes down to a term such as 'reasonable market value'.

As common sense as this may sound it also has its challenges since is it only a hypothetical value based on all the difference financial elements related to the purchase of a business.


The most commonly used valuation of a business is known as ' value of future earnings '... Accountants and financial advisors often project earnings out as far as ten years and try and then place some value and normalcy around those future profits. Our on piece of advice in this area is simply that owners should not focus solely on future earnings potential; there are other factors to be taken into consideration.


Some of those other factors of course include the true value of the current business assets, such as equipment, real estate, fixtures and leaseholds, etc. We can only say that as critical as those assets are they must be supported by the company's ability to generate the cash flow to support those assets and grow the business.

Buyers and sellers frequently disagree on the total purchase price, with all sorts of psychology kicking in around prices being set artificially high for negotiations purposes, the buyers focus on a low- ball offer, etc.

We would also point out the buy/sell challenge is accentuated when it relates to a ' service' firm as opposed to a product firm. Many experts agree that ultimately the valuation of the business was so far out of whack that this clouded any possible attempts to negotiate a fair price for buyer and seller.

The bottom line: buying or selling a small to medium enterprise has its challenges. If owners are aware of the key basics around the technical aspects of the matter they can successfully utilize third party assistance (accountant, lawyer, trusted financial advisor) to consummate a successful transaction.

Buyers and sellers must focus on tangible issues as well as all the intangibles that come into play in order to assist in a proper (and a successful) buy or sell. Methods to finance a purchase depend on the overall size and credit quality of the business. Commonly used financing techniques in acquisitions and mergers include:

Asset Based Loans

Non bank asset based lines of credit

Govt Small Business Term Loan

Cash flow loans/ Mezzanine Debt

Traditional bank financing

A/R finance

Sale leaseback strategies

Vendor take backs

If you're looking to successfully explore the key aspects of buying and selling a business seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with buying or selling your business.

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

Acquisition Financing In Canada : Charting The Right Way To Finance The Business Purchase

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Looking At Buying A Business? Merging? Here’s Financing Information To Help Complete The Deal

OVERVIEW – Information on acquisition financing in Canada. Know what finance sources are available to complete a business purchase or merger is critical to long term success

Acquisition financing in Canada, what the Bay Street guys and ladies call “M & A “in high finance parlance is a very specialized part of the business journey. It doesn’t necessarily have to be as complex as it might seem. Here's why. Let's dig in.

Naturally larger transactions in this area are handled by investment bankers or merchant banks - those are the deals we read about every day in the business papers - but what about the SME area - that huge part of the Canadian economy? Everyday a number of small and medium size businesses either complete or contemplate such transactions.

Generally when a business owner or management team contemplates a merger or acquisition there is a 'strategy 'behind the transaction. So why consider such a transaction?

Many companies simply realize that there is business logic and a risk component to diversifying out of their core businesses. We all know that 'diversification' is preached in all areas of financing, including our personal financial strategies. Companies who merge or acquire other firms for diversification realize they are lowering overall business risk.

Many times there are some classic synergies that can make a transaction in the 'M & A' environment very appealing. If a firm has a strong brand and they can add additional products to that brand then and grow both profits and sales that becomes a viable transaction. A smaller firm might have more of a 'reputation' than a 'brand' of course.

Does a business have to be doing well to be considered for a purchase or merger - Definitely not! In the current business and economic environment there are many undervalued or struggling companies. These businesses can be perhaps purchased at a bargain, and may in fact be worth many times their current valuation due to unique circumstances.
Acquisition financing solutions include:

Asset based loans

Term loans

Franchise Loans

Cash Flow Loans

Vendor Take Back Strategies

Sale Leasebacks

Canadian Govt Guaranteed Small Business Loan - aka 'The SBL'

The other reason companies consider a merger specifically is the ability to lower costs while at the same time increasing revenue. That is simply a scenario in which many costs can be lowered in the overhead and operating expense departments.

In some cases, say a manufacturing company, efficiencies can be realized. Unfortunately this sometimes comes at a 'human cost 'as downsizing is common in this area of mergers and acquisitions.

In some cases an acquisition can simply be current management buying the company from the current owners. This is typically called an LBO, or 'leveraged buyout '. Management usually puts in some new equity into the company and in many circumstances assets are refinanced at the same time.

In summary the merger and acquisition area is a unique area of business financing. Business owners must have a solid rationale, as well as a strategy, for contemplating these types of transactions. If you're looking for real world expertise in buying a business or merging seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with 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 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 & Finance Alternatives In Canada : The Asset Based Finance Choice

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Stop Me If You’ve Heard This But Isn't Business Credit Still Challenging and Why All The Excitement About Asset Based Financing ?

OVERVIEW – Information on business credit solutions in Canada. Finance strategies such as asset based financing and other alternatives can provide all the capital you need to run and grow your business

Business credit and financing alternatives are dramatically different in Canada when compared to the U.S. . Why is that? One reason is that asset based finance alternatives abound south of the border. So stop us if you’ve in fact heard this, but the good news is that the trend is reversing and new transactions are being completed everyday in this asset financing category. Let's dig in.

Canadian businesses who need financing in excess of 250k (the upper limit is almost unlimited) can benefit from this relatively new Canadian financing strategy.

Clients we talk to always have questions as to what the financing actually is and, more importantly, how it works and does their firm qualify.

It is always surprising to us that asset based lending is still probably less than 5% of Canadian business credit while in the U.S. it accounts for hundreds of billions of dollars of ongoing business financing.

ABL, the acronym for asset based financed is simply loans secured by collateral (assets). In the case of a line of credit, it's secured by inventory, accounts receivable and/or other balance-sheet assets. Typically these loans are ' non bank ' in nature. You may not have heard that the banks actually have small divisions within the bank that also focus on asset based lending!

Lets address the qualification issue first - the reality is that if your firm has business assets in receivables , inventory, equipment , and even real estate those assets can be monetized into a business line of credit that focuses on the asset - Bottom line ? Less emphasis is placed on the overall quality or condition of your balance sheet and income statement. You got it - it's all about ... the assets!

No secret those Canadian chartered bank lines of credit provide a similar and more often than not less expensive form of financing via revolving lines of credit. Banks offer this type of financing outside their normal business banking, but qualifications and deal size are still somewhat challenging to meet in our opinion

When it comes to the banks most business owners know those facility offerings focus on balance sheet and income statement strength, ratios that must be met, and heavy emphasis on personal covenants and outside collateral. That's the key difference!


When you negotiate an A B L facility you and the lender agree up front on the market value of your ongoing receivables, inventory, and unencumbered equipment. That collateral becomes the essence of your financing and drawdown capability.

So why is this all different from a bank? The answer is simply - banks have regulated formulaic methods of financing business - in fact many would agree that bank business credit got increasingly difficult to get since the 2008 worldwide debacle. No question things are getting better though with financial markets and business credit becoming a lot more accessible.

So about these ABL players. Finance firms offering asset based lending are not regulated in the same manner, do business in almost every industry in Canada, even those that are deemed ' out of favor 'and the management of these firms typically have years of experience in lending against receivables, inventory (yes, inventory!), with the additional enhancement of allowing you to monetize your credit facility by including some borrowing against your equipment for ongoing working capital and cash flow.

Seek out and speak to a trusted, credible and experienced business financing advisor in this specialized area and find out how a new financing facility can put you head and shoulders above your competition in overall financing strategy.

P.S. Don’t forget also that several other key asset finance strategies can enhance your business financing success – they include SR&ED tax credit financing, Confidential A/R Financing , equipment loans, sale leasebacks, securitization – etc.



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