Asset Based Lending Breaks The Impossible Business Financing Barrier ? Here’s How!

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Got 5 Minutes? Here’s  Some Business Loan & Working Capital Solutions For Companies Seeking SME Commercial  Finance Solutions

 

OVERVIEW –     Information  on  traditional bank and alternative non bank financing solutions in Canada. Financing strategies such as cash flow based asset based lending provide sought after working capital and cash flow alternatives for companies seeking sme commercial finance solutions

 

Asset based lending, a term unknown to some business folks, is often a great solution to companies that are unable to access traditional bank type financing. Many new, smaller and growing companies are simply looking for additional financing these days. Owners and mgr's want... options! Let's dig in.

                                    

Those challenges tend to be painfully obvious to the Canadian business owner or financial manager that has worked to get traditional bank and equity financing. Here are typical traditional lender concerns:

 

Perceived industry or product risk

 

No collateral

 

Uncertain financial projections

 

Limited Performance history

 

How can companies overcome these very traditional roadblocks and challenges? There are a number of ways.

 

First of all, all alternative methods of financing should be pursuing. Alternative financing methods are most non dependent on the above noted risks and challenges. Those alternative methods of financing might include:

 

 

*Business Angels or strategic partners (think suppliers!) for short term arrangements

 

 

*Equipment Lease financing

 

 

 

* Sale leasebacks on equipment already purchased and paid for

 

 

*Asset based lending arrangements that provide working capital facilities against initial receivables, inventory, and purchase orders  KEY POINT : (These facilities don't have the same requirements as banks)

* Sr Ed Tax Credits - Customer who have filed claims can finance those claims for cash

 

* Invoice / Receivable Financing - Immediate cash for your firm's receivables (these facilities can be of any size). Our most recommended solution in this area is Confidential Receivable Financing. Your firms bills and collects its own receivables and creates an automatic cash flow machine from your sales revenues.

 

In summary, newer or smaller firms fall into the ' void ' area of financing, where very few traditional financing strategies can be implemented, at a time when cash flow and working capital are most critical. The above mentioned solutions fall into our general category of ‘ ASSET BASED LENDING ‘ .. so now you know!

 

Business owners should review non alternative strategies which can be of great assistance in early growth periods 

 

  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

 

 

 

Equipment Leasing : The A to Z of Businesses Best Asset Finance Solution

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Equipment Leasing – Can You Imagine Financing Assets Without This Asset Finance Strategy?

OVERVIEW – Information on equipment financing solutions in Canada. The ability to finance new and used assets for your business helps companies grow while conserving cash

Equipment leasing continues to be the best way to maximize cash flow and overall cost effectiveness for new asset acquisitions. The other significant advantage of a lease equipment strategy is the ability of this type of financing to achieve financing creativity based on the needs of your Canadian firm. In Canada corporations of all size, including the government by the way, utilize leasing as a financing option.

Is there any asset that can't be financed? For years we have half jokingly told clients that anything can be financed, and quite frankly, based on your firms overall credit structure and quality, we still believe that to be very true .

Many business owners don't often realize that even 'intangible 'assets can be financed, such as software, installation costs, maintenance contracts for your financed asset, etc. Those additional charges, when not financed, can put a real dent in your cash flow!

The whole issue of equipment leasing for Canadian asset acquisitions quite frankly revolves around the ' right ' lease, and, as importantly, your leasing firm partnership. Properly structured leases create a win / win scenario for all parties to the lease - namely the equipment vendor or manufacturer, your firm, and of course the lease finance company.

We are often somewhat disappointed when clients are only focusing on 'rate ', because in a large number of cases overall lease amount approval, structure of lease, and type of lease chosen have significantly more importance that the 'rate '.

'What's my rate 'is not an effective way, we believe, to enter into a lease negotiation. Naturally having said that, a rate must be commensurate with your overall credit quality - as credit quality, combined with the asset collateral, drives the final rate decision.

A quick recap of the generic benefits of leasing should emphasize the advantages of this type of asset acquisition financing. Those benefits are:

1.Ability to acquire equipment while minimizing your cash outflow for asset purchases

2.Cash flows match the benefits and useful life of the asset you are acquiring

3.Potential tax and balance sheet advantages

4.Ability to upgrade equipment and stay ahead of the competitive curve based on your ability to acquire items that you might not necessarily be able to purchase on a cash basis

Equipment leasing often tends to also be 100% financing - that's a great way to maximize cash flow , and , as we noted, many Canadian business owners and financial managers are often surprised to know that lease financing can include tangibles, as well as those maintenance and upgrade costs depending on the asset you are financing ; Hint - Think computers!


There are a number of tools that allow you to evaluate lease financing options, one of which is a 'lease calculator 'or' lease vs. buy calculator'. These are widely found on the internet.

We strongly recommend that you utilize the services of a lease financing expert who has credibility and experience. That will translate into your firm capitalizing on one of Canada's great alternative financing strategies. Seek out and speak to a trusted, credible lease financing advisor today.




7 Park Avenue Financial :


http://www.7parkavenuefinancial.com

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


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 .





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