SR&ED Financing In Canada : Benefiting From The ABC's Of the SRED Loan Process

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You Didn't Know Your SR&ED Refund Claim Can Be Financed ? Now you Do!

Information on SR&ED financing in Canada . The ability to monetize your refundable tax credit refund is a mechanism to accelerate the cash flow your company requires to run and grow your business. A SRED Loan works - here's why and how

Not all Canadian business owners and financial managers are aware of one of the greatest government programs still currently in existence at both the federal and provincial level. The formal name for the program is Scientific Research and Experimental Development program. Most people call it simply the SRED (SR &ED) program; we have also heard many people pronounce it as 'SHRED 'also!

We put Canadian businesses into two categories when we discuss the program - those that don't know about the program period, and those that know about the program but are not aware that their claims can be financed.
SR ED financing is an excellent source of short term cash flow, and allows a company to reap the benefits, in cash of funds that they have put into R&D.

It is probably useful to do a short overview - let's call it a SR ED primer!

The program is administered at the federal and provincial levels of the Canadian government. It is very important to note that the SR ED grant (yes it's non-repayable) is for Canadian private firms only - it does not apply to public corporations the program is applicable literally to almost every type of firm and industry in Canada. A company files it's claim at the same time it files it's year end tax return.

In our experience the majority, we feel almost 95%+ of claims are prepared by an independent third party. They have expertise, credibility, and have a strong knowledge of the program and the government requirements. We would further point out that if a claim is not prepared by a qualified third party then there may be an issue in financing the claim - not always, but sometimes.

Claims can be expensive to process and prepare, and in general the industry has evolved into two types of costs associated with the claim. What are those two cost scenarios?

1. Customer pays a third party in full for time and preparation involved in the claim. The customer reaps the full benefits of the claim when it is processed

2. Customer signs an agreement on a contingency basis, and pays the preparer of the SR ED a portion of the claim when it is approved - bottom line he has no cash outlay and the SR ED consultant is at risk re time and preparation involved in the claim.

Let's now focus on financing of the claim. The financing of the claim is somewhat of a boutique industry in Canada, and requires specialized knowledge around the quality and collateralization of the claim. The Canadian banks, as a rule, with only minor exceptions, do not make SR ED loans.

Claims are financed at approximated 70% of loan to value. What do we mean by that? We mean that loans on SR ED are made to 70% of their combined federal and provincial amount. Example - Customer files a claim for $ 300.000.00. The SR ED loan would be for 70% of that amount: = $210,000.00.

Claims can be financed relatively quickly when working with a qualified financing expert in this area. It certainly is possible to complete a transaction in a couple of weeks, from initial discussions.
Naturally some level of due diligence is required on the firm, and we point out that many firms are in fact total start ups and are filing their claim for the first time. An additional financing note is that first time claims are scrutinized more closely as the customer at that point does not have a track record in this area. Track records help the financing.


In a future article we will discuss further relevant aspects of SR ED financing. Our key take away points here are that the SR ED program is a very viable program and source of cash for Canadian business. Claims can be financed, and are a valuable source of working capital for many Canadian firms.


7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .








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

Sr&Ed Factoring – Cash & Working Now for your Canadian SRED Claim

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Information on SR&ED loans in Canada. Financing the refundable sr&ed tax credit delivers cash and working capital back to your business. Factoring sr&ed claims makes business sense - here's why!

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Sr&ed Factoring , or in effect the financing of your Canadian SRED claim is a unique and innovation method of financing your tax credit .

For many Canadian business owners and financial managers the amount that their company has invested in research and development of innovative products and services represents a significant amount of their budgets.
Naturally Canadian business appreciates the amount of funds that the Canadian government refunds as non-repayable cash grant for your firms investment into product and technology advancement.

When we meet with customers who wish to finance, (factor) their SR&ED claim it’s all about timing. They want to get the immediate benefit of that cash flow and working capital back into their firm. The financing of the claim is the way to do that – it’s a case of immediately receiving the cash refund for your claim as opposed to having to wait anywhere from several months to a year to get the refund . And if your firm is filing a SrEd claim for the allowable period of two years prior well that cash flow and working capital has now doubled and provides a significant amount of cash flow if you finance the claim today.

As we have stated the whole scenario of financing a Sr&Ed Tax credit is essentially the process of factoring, or ‘discounting the claim ‘. We would point out that the whole process is applicable to film tax credits also, which a growing and robust industry is given that the government has heightened its grants in many areas of film tax credit financing.

So whats involved in monetizing your SR&ED claim? And perhaps as important, what amount of funds can you get today for the claim. We have stated the claim is discounted or factored - business factor because they need immediate access to cash when current assets such as accounts receivable cannot provide cash flow in a manner that allows your firm to have the working capital it needs. In some cases the factoring of receivables or a SR&ED claim may be one options for cash flow generation, however in a great deal of the cases it in fact is the only option .

That is because Canadian banks are reluctant to finance SR&ED claims because of the partial uncertainty in the final approval of the claim, and the reality is that many Canadian small and medium companies currently are challenged in obtaining all the business financing they need.

How much can I get? Is the typical question asked by Canadian business when financing their SR&ED claim? The answer is typically 70% now, and generally financing is structured along the lines of no principal or interest payments on the SRED loan financing until the government approves and funds the claim. At that point your firm gets the additional 30% of the claim, less financing costs associated with the claim which vary based on size of claim, overall financial situation of your firm, etc.

We want to clearly point out that no company should be deterred from financing a claim because they are in a pre- revenue state, or if they have other financial problems or challenges, as the essential security of your SR&ED itself is the prime collateral for the financing.

Talk to an expert in SR&ED financing and determine if you’re a solid candidate for immediate cash flow and working capital via this great Canadian government program.



7 Park Avenue Financial :


http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .







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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

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

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



Stan Prokop

Business Financing Services In Canada. Fixing Financial Emergencies Via Specialized Funding

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Summary: Information on business financing services and financial strategies for the funding needs of your firm when emergencies arise. Putting The ' Ding' In Fun When It Comes To A Financing Emergency.

Business financing services in Canada. That's where the Canadian business owner and financial manager looks when they need to quickly put the ' ding ' back in the fun; which equates to FUNDING of course!

We meet many clients who fortunately are doing a pretty good job of planning ahead for their financing needs. What they don't forsee is the unanticipated event that causes an immediate negative reaction in their cash flow and working capital funding needs. Just the other day we met with a client who had lost their major client. The problem? That represented 80% of all of their business. The adverse reaction? Well, you can pretty well feel the pain, but one immediate thing that happened was that their bank called their operating line of credit.

Is there some ways to take stock of how you can plan for adverse business events that happen pretty fast? We think there is, so let's dig in!

A lot of the points we'll make revolve around three areas, growing your business, generating profits, and just plain surviving! It's the goal of the owners and financial managers to keep cash flowing through all those periods, and each of them has their challenges.

It seems easy to prepare a cash flow forecast and get a strong sense of your inflows and outflows over time based on your own experience. But what will you do when the unexpected occurs: That might include:

Competitor issue re pricing/products
Government legislation
Technology change

Etc!

That's when things get exciting, in the worst way!

So how can the business owner plan for funding when an emergency situation occurs? To us it comes down to three elements:

1. Having a strong sense of the time it takes to search for funds - It just might be recommended that you always have an expert in Canadian business financing to talk to - even in the good times

2.Knowing what options are available - These might include a temporary bridge loan on unencumbered assets, a receivable finance strategy, Purchase order financing, an unsecured cash flow loan, and finally a monetization of any tax credits which can be financed. (Yes you can finance a SR&ED claim), and the sale leaseback of owned assets. Oh, and by the way, do you recall that client that had their chartered bank operating line of credit called - they are fully eligible for a non bank asset based line of credit?

3. Knowing that you do have a strategy to mobilize resources you are not using today. At this point you are no longer ' keeping score' in business; you're taking stock of all your financial resources in business assets, financing relationships, etc

Financial emergencies can happen to your company at any time. At that point you need to ensure you know what your resources are, what assets can be liquidated, and knowing you have alternative financial vehicles to cope with planned outflow of cash.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with a financing emergency, or help you to avoid one!




7 Park Avenue Financial :

http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .







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

Why Equipment Leasing In Canada Dominates The Acquisition Of Assets For Your Business : Right Choice 101

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The Rise And Fall .. And Rise Of Equipment Leasing in Canada!

OVERVIEW – Information on basic financial fundamental reasons why Canadian business owners and financial managers choose lease equipment financing as a great financial strategy for new equipment, technology, etc , including examination of key benefits for business owners and financial mgrs

Equipment lease financing in Canada has business owners and financial mgrs constantly coming back for asset acquisition alternatives.

So as business credit continues to always be a challenge it's no secret that equipment loan needs are on the rise. Simply speaking its
one of the best alternative methods of acquiring equipment in a very cost effective manner!
We use the term equipment, but let’s be clear that that term includes every business asset you can imagine for Canadian business needs - that includes

Construction equipment


Airplanes!

Computers

Telecom assets

Software (Yes Virginia software can be financed!)

Plant machinery and equipment

Bottom line: virtually any asset you can utilize in your business.

For many of our customers it's all about a ‘competitive 'lease rate (well actually they ask for the best rate!) but we often point out that while every customer is due a competitive rate based on their overall credit quality, it is equally as important to ensure you have the right type of lease selected, the right term or length of lease, as well as the expertise in structuring your lease along the lines of your business model and financial and cash flow needs.
Example: A ' seasonal ' businesses - that isn't necessarily related to the weather all the time, it’s just the ebb and flow of their particular industry, for example a wholesale that has huge orders and contracts from a major retailer at Christmas time, etc.

Our customer are often surprised at the nuances that we can structure in a lease, such as seasonal payments, quarterly payments , sometimes even annual payments . In most cases it is not uncommon to finance all the taxes, plus the installation and maintenance relating to the equipment. (Think computing technology or sophisticated shop floor equipment).

Our customers know they have a need for the equipment. What they want is of course the equipment and the ability to preserve their capital, either their cash on hand or working capital by way of their bank operating line or asset based lending facility.

There are many financial/accounting advantages to business leasing. Lease payments more often than not are tax deductible, so they have further advantages over term loans obtained via banks or other financial institutions.

Key point: It's always good to do some solid lease versus buy versus loan analysis to determine what the right way to acquire a business asset is.

SUMMARY: there are financial benefits and overall business benefits based on the proper use of leasing. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your asset purchase needs. That’s a winning Canadian financing strategy!




7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .







7 Park Avenue Financial

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

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing With The Intelligent Use Of Experience '

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

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

Stan Prokop

Asset Finance In Canada : Would Your Company Benefit From An Asset Based Line Of Credit

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The Not So Secret Origin of Asset Based Non Bank Revolving Credit Lines

OVERVIEW – Information on asset finance solutions in Canada. The asset based line of credit can solve the working capital and cash flow needs of Canadian Businesses In the Small To Medium Enterprise sector

Asset finance and revolving credit lines that can generate cash flow / working capital for business are almost always a top priority for Canadian business owners and financial mgrs. Could your company benefit from this method of financing? We think so, let's dig in.

Independent finance firms are the real origin of asset credit lines - they are therefore ' non bank ' in nature.

Entering into this type of facility should always be done with the expertise of a business financing advisor, your accountant, and in some cases... your bank! More on that last one later.

The most important thing you can do in contemplating such a transaction is to both understand the financial offering, and at the same time ensure you understand how the Canadian marketplace works.

Asset finance, or asset based lines of credit provide your Canadian firm with maximum utilization of asset values related to 3, possibly essential components of your firms asset base.

Those components?

Inventory

A/R

Equipment

(In some cases real estate can be blended into your credit line)



So why does this facility work differently than a more traditional chartered bank line of credit? The answer?

Higher borrowing/margining limits!

What is meant by that? Well is simply the ability of your firm to leverage higher borrowing, when and if you need it, against those asset classes which we have just mentioned. In the case of receivables it tends to be 90% of receivables less than 90 days, and in the case of inventory it's a case of understanding in advance the true value of your inventory on an ongoing basis re your costs and ultimate marketability of that inventory.


The true cost benefit of an asset based line of credit facility is that you use the facility when you want and to what extent you want - from a cost perspective that equates to paying for only what you use.

Asset finance and asset based lines of credit tend to traditionally be more expensive than banks lines of credit. Let's just understand the basics of that. Currently banks pay between one or two per cent, perhaps three per cent to depositors in Canada. If they can lend out those funds at 2-300 basis points more - i.e. 5 or 6% rates to your firm the banks consider that a winning proposition .

But they want to be secure on that transaction, so that involves your personal guarantee, lower margining of the asset, and strict rules and covenants around ratios, operating performance, etc.


Independent finance firms borrow from banks, or raise capital themselves - they therefore mark up those funds so in general, asset finance and asset based lines of credit cost your firm more .

But if your firm can grow revenues and increase profits with a higher borrowing cost is that not ok. We think the weight of evidence suggests that proper consideration of an asset finance and asset based line of credit warrants significant merit.

The bottom line is as follows:

You should consider asset based facilities if your company is growing or has growth opportunities .Bank lending is still difficult to access for many small and medium sized firms

Investigate asset finance, determine your needs, and work with a credible advisor to ensure your Canadian asset facility can help your firm grow revenues and profits.


7 Park Avenue Financial :

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .




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

Common Sense Tips on Buying a Business and Selling a Business

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I am often asked by clients for assistance in validating the price they are going to pay to purchase a small / medium enterprise. 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.

We also encourage our clients to talk to either their own peers, or in some cases our clients with respect to others experience in this area. This may help alleviate some of the concern around those business people who are ' non - financial ' in background and somewhat overwhelmed by discussion of terms such as 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 purchasors 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 know 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.

In summary, 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.





7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .







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/3459268

Cash Flow AR Financing In Canada - Is Invoice Cash The Working Capital Miracle ? You Decide

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Does Financing Your Sales & Cash Flow Needs Seem Like A Constant Duel To The Finish?

Here's One Solution

Information on how invoice cash, also known as factoring or invoice discounting can assist Canadian firms with working capital turnover and cash flow solutions for greater growth and profits . Our recommended strategy : Confidential A/R Financing

As a Canadian business owner you in fact feel that pressure every day - one business owner I know who has had his business for over 30 years says you aren’t an entrepreneur until you have ' sweated a payroll ' - which of course meets rising to the challenge of meeting that key payroll requirement for your employees .


Invoice cash - How can Canadian companies address the problem of growth and lack of working capital. The majority of any firm’s liquid assets are tied up in accounts receivable. Over the years customer that paid in 30 days now take 60 or 90 days to pay your firm. This then places tremendous pressure on working capital. Thats the problem - is there a solution.

How can a Canadian business owner of financial manager determine when working capital is tightening? They are some very basic calcs you can perform. There are a number of great indicators you can monitor - here is one - it’s the ' Collection Period ‘. Simply take your accounts receivable and divide you your average daily credit sales the longer your Collection period number is the greater attention you need to pay to working capital. Receivables are a huge component of working capital. So what if you had a solution to obtain all the working capital you needed based on current and projected sales growth?

That solution is invoice cash, or the immediate factoring or discounting of your accounts receivable. If you have no bank line with a Canadian chartered bank, by sacrificing a couple of percentage points in your gross margin, you can immediately monetize your accounts receivable.

The ' challenge ' - if we can call it that, in the Canadian marketplace is simply setting up the right invoice cash facility. We advise our clients on focusing on a ' non notification ' facility. Factoring , or invoice cash, or accounts receivable discounting, came to Canada via the U.S. and Europe , where the process has been in practice hundreds of years . Canadian business owners are less willing to turn over their accounts receivable function to a third party finance firm.

We therefore focus on non- notification solutions for clients - a financing facility where you can bill and collect your own receivables, and still get daily, weekly, or monthly advances ( It's your choice ) on your accounts receivable .

An ever better option is to marry an invoice cash facility with an inventory financing facility - you'll be able to finance your inventory also. That means only one more thing - additional cash flow and working capital.

Speak to an experienced, trusted business financing advisor on your options for Invoice Cash, also known as factoring, in Canada. Putting together the right type of facility will allow you to generate needed working capital and cash flow to run ( and grow!) your business .


7 Park Avenue Financial :

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .


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

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

' Canadian Business Financing With The Intelligent Use Of Experience '