Asset Based Lines of Credit – Canadian Financing Solutions

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What Would Happen To Your Business If You Had All The Credit You Need?

OVERVIEW – Information on asset based lines of credit . This alternative finance solution allows companies to achieve maximum liquidity when chartered bank lines are not available to the Canadian business owner/financial mgr

Asset based lines of credit are an alternative to Canadian chartered bank financing in Canada. It is certainly well documented that Canadian business, small, medium, and even large has experienced general credit tightening by our chartered banks here in Canada. Business owners and financial managers are forced to consider alternative financing solutions which are certainly not numerous in natures here in Canada. Let’s dig in.

So what in fact would happen if you had access to all the business credit you need to support sales growth .

Asset based lines of credit are absolutely one solution to the financing you might be searching for. Surprisingly many of our clients have not even heard of this type of financing, much less understand it.

Many customers are actually forced to consider an asset based lending solution because of the concern of owners, lenders, and suppliers that their business does not have the ability to finance the firm properly. When suppliers and other lenders act aggressively on the belief that your firm can’t meet its obligations problems ensue!

One key point we continually make with clients, and we would recommend this to everyone is that you should be aware of your financing alternative before you are forced to be aware of them. Simply speaking, it behooves you to learn about asset based lines of credit. Although the ‘ABL ‘ ( short form ) financing facility has been around for years some people still associate it with distressed lending – it is not just that . It also is not borrowing or taking on additional debt, which is certainly a relief to owners.

So what is it then? It is just the financing of all your current (and sometimes fixed) assets as total collateral for borrowing. In fairness most of that financing is done on receivables and inventory

Because you are in effect borrowing more than you ever could have in a traditional financing arrangement there is some additional reporting requirements when you borrow under an asset based line of credit. But frankly when we talk to customers they indicate this additional reporting often helps them to understand their business better.

It is interesting to note that many firms utilize this type of financing for a long period, and view it as an excellent source of financing, while some business owners and financial mangers view it as a bridge to solve temporary working capital and financial statement challenges. Generally firms considering asset based lines of credit can’t meet some of the ratios required for traditional banking and debt service, yet at the same time they have new contracts, need new assets, or more headcount , etc – with asset based financing being a solid solution to provide this additional capital .

In summary, asset based lines of credit are a business financing option. They are utilized in Canada by hundreds, even thousands of medium sized and larger firms. They are a form of non traditional lending that in reality is become mainstream. Asset based lines of credit provide the maximum working capital against your operating assets such as receivables, inventory and equipment...

Speak to a business financing advisor who has credibility, experience in this aspect of Canadian business financing. You can then determine that if it’s the right solution for your Canadian business.


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

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 .

' Canadian Business Financing With The Intelligent Use Of Experience '

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

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

Stan Prokop

Is Lease Financing In Your Asset Acquistion Plan? It Should Be

How Much More Can You Learn About Equipment Lease Finance ? Lots!

Equipment Financing Approvals – You are a Canadian business owner or financial manager who requires lease financing for asset acquisitions. Although a majority of leasing firms are located in the Toronto area lease financing is of course available across Canada. We encourage clients to seek out and develop a business relationship with a trusted and credible lease financing advisor.


So what is important in getting a lease approval? Unfortunately most clients tend to focus on only one thing – the interest rate. The actual accounting reality around lease financing is that the interest rate is not even a rate per se as you are utilizing the equipment but not necessarily owning it. Anyway that point alone is a discussion for another day.


Naturally the financing rate attached to the lease is important, but face reality – your rate is always going to be commensurate with your overall credit quality – if your firm has excellent financials, is profitable, has good cash flow, is growing and is in a good industry sector we can assure you that you will always have a competitive rate within a ¼ point or so.


The lease credit decision actually plays a large part of the entire lease financing approval cycle. Factors that determine your overall final approval are as follows:


Overall credit quality of your firm – ( key factors include your balance sheet, are you profitable, years in business, and amount of financing requested

Type of asset you are financing

Dollar size of transaction

Special structuring requests


Traditional lease financing focuses on your ability to demonstrate you can make the payments – no surprise there of course. But how does your lease firm make that decision. Fortunately or unfortunately it’s a very mechanical decision – it’s a case of taking your cash flow from your financials - i.e. net income and depreciation combined together, and determining if that cash flow supports on an annual basis the next 12 months of payments .So there, we have just shown you how you can influence and present your cash flow repayment ability.


In many cases, certainly in the current more challenging business environment your financials might not be in a position to meet these cash flow calculations. That is where extra skill on your behalf (but more probably and properly achieved with a leasing advisor) is required to present what I have called ‘the weight of evidence ‘that you can make those payments and are worthy of an approval. Additional factors might include some potential restructuring of the lease term – i.e. a shorter term, or accelerate payments . Although many firms stress leasing as 100% financing the reality is that for the transaction to work for yourself and the lessor you should be expected to offer up a 10- 15% (sometimes more) down payment.


Typical other factors to be taken into consideration are your payment experience reports at a Commercial Credit bureau or Dun and Bradstreet, and miscellaneous factors such as years in business, cyclicality of your industry etc. In some cases offering up some additional equipment that isn’t financed as collateral will get you to the goal line.


In summary, lease financing approvals in Canada is a bit of both an art and a science .A proper presentation of your ‘weight of evidence ‘around your ability to pay should ensure you receive a satisfactory rate, term, and structure. And remember, it’s not always about the rate – pick a solid lease partner and work towards a long term relationship which will pay off ten fold over time relative to your lease financing needs.

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


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 .

' 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 based Line of Credit – Canada

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What's In It For Me ? We're Glad You Asked ! Here's How Asset Based Credit Lines Can Benefit Your Company

Information on the benefits of asset based lines of credit in Canada

Your best financing solution in Canada just might be an asset based line of credit facility . These facilities are gradually becoming on of the newer and more popular methods of business financing in Canada.


The facility is generally totally focused on what we generally refer to as working capital, or more specifically, short term working capital. The largest part of the asset based financing facility tends to be your firms accounts receivable, but quite frankly in our experience it can be inventory also, as well as a component of equipment even purchase orders .


Most business owners are surprised when we tell them they are in a position to quite accurately calculate their own amount of total credit facility. That is because there are some very accepted rules as to how much is advanced and on what. By now the business owner or financial manager of a Canadian business understands that this type of financing is an alternative to a Chartered bank line of credit. The facility ‘ in general ‘ works in the same way , but there are some major difference in setting up the facility and in the effects , or rather lack of effects it has on your business .


Let’s clarify. If your business has a Chartered bank line of credit there are three things that facility has that don’t apply to an asset based lending facility. They are as follows:


A facility cap or maximum

Loan covenants and ratios

Additional collateral often required, with heavy emphasis on owner guarantees


Asset based credit facilities, also called ‘ABL’’s” are generally able to increase to the same extent that your firm can increase its receivables and inventory. The bottom line is that you are not constrained to grow!


There are little or no covenants or ratio requirements in an asset based lending facility, it’s totally based on the amount of assets you have


In general the assets financed are the only assets secured


One of few similarities of an asset based credit agreement is that, similar to a bank facility, receivables under 90 days are the only receivables that are financed.


So let’s just focus on the receivables portion of our asset based line of credit for a moment. A quick example would be:


Your firm has 500,000.00 in accounts receivable - Under your facility you can borrow up to 80 or 90% of that amount at any given time. Naturally the line fluctuates daily, (similar to a bank facility) because you are receiving payments every day and you are invoicing every day.


We can say as an across the board statement that asset based lines of credit are less restrictive than bank lines, they also cost more. Customers we meet with regularly though are in a position where they frankly don’t qualify for traditional bank financing – this could be for a variety of reasons. (A net loss in the current year, a high debt/equity ratio, can’t meet bank interest coverage requirements, etc.)


So yes, your firm has a higher cost of borrowing – asset based credit facilities in Canada have a wide spectrum of pricing, from 8-9% per annum, or in some cases 1-2% / month . But if your firm needs financing for growth, or even survival, and you have no access to traditional bank or term credit, asset based financing in many cases will save your company, give you almost unlimited access to working capital based on your sales, and at the same time position you for the next level of growth or a return to traditional financing. Many customers we have dealt with actually decide not to return to traditional bank financing once they realize and calculate the benefits of an asset based line of credit.


In summary, investigate asset based lines of credit via an experienced and credible advisor in this area of Canadian financing. Weigh the benefits and advantages and you may find this is the business financing solution you never heard of but works for you!



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

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 .

' 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

8 Reasons To Consider Canadian Receivables Finance And Accounts Receivable Service For Cash Flow

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Compelling Reasons To Consider An A/R Finance Strategy

Information on Canadian receivables finance and why an accounts receivable service can turn your firm into a positive cash flow

Receivables Finance ! said the client. ‘Give me one good reason why .... ' We hear that one a lot , so we'll do one better and provide him, or her with 8 solid business reasons to consider an account receivable service for your cash flow financing needs .


Reason # 1 is simply growth... one of the ultimate ironies we have found in business financing is that many clients are punished for growing. Generally of course that's growing too fast and traditional banking in Canada somewhat dislikes high growth.



But tell that to the entrepreneur who has been building his or her company, or working forever on that major contract or sale. We have said it before and we'll say it again, a surefire method to generate positive cash flow immediately is to slow down sales and accelerate collections. You'll be flush with cash, but guess what, you won’t be growing and that’s the dream of most entrepreneurs and business owners.


A/R finance likes, no, scratch that, loves! growth. In fact under most facilities you will enter into for this method of Canadian business financing you are automatically approved for whatever level of financing you need, as long as you have the sales and resultant receivables to back up your request.


Reason # 2- the ability to purchase smarter and harder. With the cash on hand from your instant a/r collections via receivables finance you are in a position to negotiate better pricing with key suppliers, giving them at the same time the assurance you will pay .


Reason # 3 - This is a powerful but often overlooked one. It's simply your new found ability to take prompt payment discounting, typically 2%, off major purchases. That reduces the cost of an accounts receivable service significantly.


Reason # 4- Timing and speed. A solid A/R facility financing can usually be put in place within a week or two. Compare that to the time it takes to set up a bank facility with all the requirements imposed by Chartered banks in Canada, which by the way also include profitability, personal guarantees, potential outside collateral, etc .


Reason # 5 - This one is a bit tricky. Under traditional A/R finance in Canada utilizing the popular U.S. model the finance firm takes over all your collections, after all they have purchased the receivable. That reduces collections costs and focus by the Canadian business owner.


That’s all good, but we'll point out that our favorite and in fact recommended facility is a confidential invoice financing, wherein you bill and collect your own receivables and sales. So in this case opting for our recommended solution would in fact not save you the burden of collections and customer interfacing.


Reason # 6 - You're in control. In Canadian A/R finance you are under no obligation to finance all your A/R, so you only pay for financing you use, when you need it. That’s flexibility. Many bank facilities have standby and usages fees that kick in when the facility is not used. That’s not the case with Canadian accounts receivable service finance.


Reason # 7 - Customers who have liabilities with Canada Revenue for source deductions, H.S.T. etc and in fact use their a/r advances to clear up these federal and onerous obligations . That's a good thing, as the tax man should be on your side, not at the door!


Finally, reason # 8. It's basically the concept of the bridge. View receivables finance as your temporary bridge to a more traditional financing. A properly constructed facility should have little or no contractual obligations, allowing you to move on to another method of financing that might come with a lower cost.


There are numerous other reasons to consider A/R finance as a business financing strategy for Canadian business owners and financial managers... We have touched on some of the key ones, but further investigation by you will no doubt lead to other potential benefits.


Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in implementing a facility that makes sense for your firm.

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

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 .

' 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

Inventory Loans and Purchase Order Financing

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Large Orders/Contracts ? Time To Check Out P O Financing & Inventory Loans

OVERVIEW – Information on inventory loans and purchase order financing solutions in Canada. These alternative financing solutions provide much needed capital to firms who are unable to achieve traditional financing in order to achieve sales growth

Inventory Loans in Canada and inventory and purchase order financing are subsets of a specialized industry that many refer to as asset based lending.

As sales and new order opportunities grow many Canadian business owners and financial mangers find that financing these to critical areas (inventory / p.o.’s) is increasingly become in a challenge. We advise clients that if these two critical areas of finance were a challenge in past times, that challenge is certainly magnified ten times over in the current global and Canadian business environment.

Are there specific solutions for inventory and purchase order financing in Canada. Yes there are, that’s the good news, but these are very limited and specialized in nature. We encourage all clients to speak to a trusted, credible, and experienced business financing advisor in this area who can provide guidance, assistance, and most importantly clarification on how this type of financing is achieved.


Inventory and purchase order financing in Canada extends beyond traditional Canadian chartered banks, who wrestle with the ability to truly understand a customer’s inventory component as a key part of working capital. (Working capital is derived from the continual conversion on inventory into accounts receivable).

Purchase order financing can be accomplished when your firm has the ability to generate sufficient orders from a major client, or clients, who are creditworthy. You must also be prepared to convince the inventory and p.o. finance firm that your company has the ability to fulfill customer orders successfully.

Starts ups in Canada can achieve inventory and p.o. financing, but be forewarned that management must have a strong background in the industry – you have to demonstrate you can perform and deliver.


The financing of inventory and purchase orders is achieved via a direct payment or payments that made to your suppliers for product you need in order to fulfill orders and contracts. For Canadian customers this more and more means that key suppliers may well is located in the U.S., and in many cases, China. This does not deter the inventory and p.o. lender, but you must be in a position to show that you have sufficient gross margin ( i.e. profit !) in your business model in order to be able to withstand the additional financing charges that come with inventory and p.o. finance .


Also, unbeknownst to many business owners, the inventory and p.o. finance firm likes to generally get paid when an invoice to your customer is generated by your company to your customer. This requires that you have banking or factoring facility in place to convert receivables into cash, in order that the inventory and p.o. lender can be a paid.
We encourage all customers to take some time and understand the total costs of such a facility – you need to remember that your firm will bear financing costs for , often, between 60-90 days from the time you get and order, obtain product from your supplier, manufacture and / or ship the order, and, last but not least, wait to get paid !

Inventory and P.o. financing can be expensive, but naturally the alternative to avoiding this type of financing means simply lost order, opportunities, customers, etc.

No Canadian firm chooses to become less competitive by virtue of not wanting to incur finance charges to convert new sales into profits.


Speak to an inventory and finance expert – understand the basis paper flow and the charges involved in this unique method of business financing. Turn inventory and purchase order and new contract challenges into increased revenue and profits to promote your competitive edge.

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

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 .

' 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

Unique Canadian Cash Flow Financing & Working Capital Loans & Finance Options

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Cash Flow and Working Capital – Today’s New Alternatives !

OVERVIEW – Information on cash flow and working capital financing solutions for Canadian business. Types of loans and finance strategies that can save and grow your business

The Gap. That was the essence of a business story in Canada's national business newspaper regarding business financing optimism in Canadian business.At the core of business finance is financing working capital, generating cash flow and being aware of loans and finance solutions that make sense for your firm from a cost and benefits manner.

The incredible part of the article was that although Canadian business owners and financial managers were more optimistic about their business these days, dramatically so, the incredible part being that 70% of respondents said that access to ' cash ‘ and capital was still a challenge . Wow. do we ever envy that other 30% who seems to have all the cash flow and working capital financing they need!

There are some unique working capital loans and strategies that work for you, it’s simply a matter of understanding what your current needs are, assessing your financial position, and most importantly, understanding your financial alternatives.
When we think of financing working capital you need to focus on the following, receivables and inventory, other assets, as well as your ability to re structure and re organize your firm if in fact that’s required .
In many cases a simple re financing of existing, owned assets is a unique strategy that often makes sense. This can be done via a sale leaseback strategy, or, not as commonly used, a short or intermediate bridge loan of refinanced assets such as equipment, real estate, etc.

At the core of looking at either traditional or more alternative or unique cash flow and finance solutions is simply to understand the cost and benefits of these strategies. Those costs vary with your overall credit quality and can range from a point or two over prime to 1-2% per month, depending on your current financial position.

Many business owners wrestle with how to simply understand working capital, which allows them to then determine their needs. Unfortunately the text book or your accountant doesn’t do a great job of that... in that they tell us go to the balance sheet, subtract current liabilities from current assets, and that’s supposedly your magic number. We wish!

So we tell clients to look at some very rudimentary but useful tools and allow them to assess their cash flow and loans strategies. One is simply the metrics of the operating cycle - understanding how fast you collect your receivables, how your inventory turns, and the average number of days you take to pay your key payables. Simply tally up the total amount of days in your A/R and inventory and you will find you can’t finance that excess just by stalling suppliers/payables.

The shortfall brings us to those solutions you are looking for. You could finance all your working capital if you paid your suppliers every half year or so, but they won't really buy into that plan!

In Canada the traditional solutions for working capital are bank lines of credit - the only caveat being you have got to have decent financial strength, profitability, good owner credit and assets, etc.

Failing bank financing in Canada you have the ability to access just receivable financing - our favorite facility is called CONFIDENTIAL RECEIVABLE FINANCING - a method in which you receive cash for your receivables immediately, and bill and collect under your own control.


Other more robust solutions are what we term working capital facilities or asset based loans. These finance loans (they are not loans per se) combine your receivables, inventory and fixed assets into one revolving line of credit. The more sophisticated a facility you utilize brings you maximum margining of your assets.

Alternatively a more esoteric candidate on the horizon is purchase order financing and contract financing - your suppliers are paid by the lender. It’s more costly, but boy does it work to allow you to generate sales you may never have been able to entertain on your own.


So what's our bottom line - we guess it’s simply don't despair! Understanding your operating cycle , assessing the amount of capital you need, and then weighing those needs against the best solution, traditional or alternative, is clearly your recommended route.

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

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 .

' 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