Traditional Versus Non-Traditional Financing - What Are the Differences?

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Business owners at either start up or sometime in the business existence need financing. Many a joke has been offered regarding financing offers when you don't need it, however if you need financing to survive that becomes a different story. Business owners must be able to assess whether they are candidates for traditional or non- traditional financing. Traditional lenders want to grow your business; they are not looking to fix your problems. When business owners have to attract additional equity the problem usually is that they have to give up a healthy piece of the ownership of the firm. So who are these 'Traditional 'lenders? It is essentially a short list:

Banks and Trust Co's
Independent Finance companies
Venture Capitalists /Private Equity Firms
Government

Let's discuss some of the basics of those traditional players. Banks are the most obvious of all traditional lenders - they focus on assets and collateral and personal guarantees of the principals. If a firm cannot meet their lending criteria it's three strikes and you are out scenario. Venture Capital firms look for healthy portions of a firm's equity. They want big gains over a longer period of time. Generally venture capital deals are very significant in dollar size. These funders are very professional and have deep pockets, backed often by large institutions.

We feel strongly that the biggest mistake firms make when contemplating venture capital is either the small size of their transaction, or that funds are being solicited for the wrong reasons. Independent Finance firms are largely collateral based. Rates are typically a bit higher than bank type rates, and specialties include leasing and asset based lending, as well as non bank working capital arrangements, commonly called ' ABL''s. Various government loans and grants are available to business borrowers. They have very good rates and good structures - the main complaint of borrowers is time to consummate a transaction. Non- Traditional Lenders: This group can be categorized in 4 categories.

Employees
Friends/Family
Private third party lenders
Suppliers

Most business owners do not realize key employees are often an untapped source of capital. They have a vested interest in their employment and careers, and often want to be considered for ownership and in succession scenarios. Management buyouts are a very common and quite successful strategy. Friend and Family is of course a sensitive area - we all know comments made around mixing friends, family and money. Care is required in this area.

Most business owners never consider suppliers as a form of potential capital. This group has a vested interest in making your firm successful - your firm is a customer, and they quite often can see the advantage of some sort of strategic alliance. Even a simple restructuring of your payments to a key supplier can bring valuable capital to your firm. In summary, there are various sources of traditional and non-traditional funds available to business owner. They certainly are not unlimited in choice, and every business has a unique need and situation that requires a special focus and assessment.

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



















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


Article Source: http://EzineArticles.com/3645694

Accounts Receivable Factoring Finance in Canada

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Why Factoring Accounts Receivable Is Your Cash Flow Machine

Information on accounts receivable factoring finance solutions in Canada. This type of Canadian business financing solves the cash flow challenge businesses in the small to medium enterprise sector face everyday

Guess what? Whether you are a start up, an established business, growing like crazy, or just trying to survive and stay competitive - you need business working capital financing. That is why one solution might be accounts receivable factoring in Canada.

We hasten to point out that while receivable factoring , factoring accounts due to your firm is often used by firms that are unable to get traditional financing that some of Canada largest corporations utilize this method of working capital financing to grow . Larger more sophisticated firms might call it securitization, or make it a component of an asset based lending facility, but, bottom lines it is still called factoring.

Canadian firms gravitate to the benefits of factoring as they are significant relative to financial resources they might be otherwise unable to obtain. At the core of the factoring accounts solution is simply the ability of your firm to get a predictable cash flow in place that is, in essence, unlimited. Why is that? Well it is because as your sales grow you create receivables and if you cant financing those receivables with traditional bank lines or working capital term loans you have the option, using receivable financing, of turning those receivables into cash flow at your discretion. So you can factor one receivable, all your receivables, or some of your receivables – you make the call!

Another way you can view this type of business financing is simply that it’s a mechanism to link your sales to your cash flow immediately. Although some view the cost of this type of financing as a deterrent we can say , after discussions with many clients, that most business owners and financial managers don’t understand the true costs of factoring, or , an even better way to put it that they don’t understand the costs of not being able to discount their receivables .

One other critical aspect of factoring is simply that it’s not debt – you are not adding debt to your balance sheet – you are simply monetizing one of your largest and most liquid assets, your receivables. In some cases if we term this type of facility a ‘working capital ‘or ‘asset based lending’ facility an inventory component can also be considered for financing, thereby even further increasing your overall liquidity.

As we said before the true beauty of this type of cash flow financing lies in the fact that it is applicable for companies of all size and type of business. As a result if your business is experience challenges, has tax or lien problems, etc you can still be a solid candidate for this financing.

Understand the basics. That’s what we tell clients when they ask us how factoring work, what are the different types, and how does a business assess the costs. Let’s recap some of those basics. If you have a bank line of credit your receivables are owned by your firm, but they are assigned to the bank, which finances them. In factoring accounts receivable are sold, giving you immediate cash , almost same day, in fact usually the same day . You are then in a position to grow sales and extend credit to customers.

Costs and they way factoring works on a day to day basis should be understood also. Invoices are typically funded in the 90% range, meaning you get 90% of funds for the invoice immediately, the rest is held back. Factoring fees in Canada vary from less then 1% per month to 2-3% per month. Factor firms in Canada don’t view this as an interest rate; they call it a discount fee. We point out to customers that they have potentially the ability to recoup a huge part, if not all of that fee by using funds to take supplier discounts and negotiate better pricing. The biggest bottom line is the elimination of your working capital worries.

In Canada things get confusing because there are many factor firms, some are foreign based, some are Canadian, some are large, some very small and unable to services your needs from a viewpoint of capital you require . In many instances the factor firm will bill and collect your receivables, we are not in favor of that method and strongly suggest you maintain account and customer control by negotiating a facility that allows you to bill and collect.

You have now seen many of the advantages of receivable factoring, and should understand now the basic of ‘how it works’. Speak to a trusted, credible an experienced business advisor in this area to determine how you can be in control of your working capital and cash flow 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

Click here for 7 PARK AVENUE FINANCIAL


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

Business Leasing - How to Get Approved for Lease Finance For Your Equipment Needs

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Information on lease finance solutions for the acquisition of new or used assets to run and grow your business. Business leasing solutions almost always make sense and conserve cash flow

Factors Affecting Your Equipment Financing Approval

Business leasing and lease finance continue to play a main role in your overall equipment acquisition strategies. In Canada the equipment financing industry is very mature and developed, and as a business owner and financial manager you have a number of financing options. Most lessors are non bank entities and are much focused on certain types of assets and lease types that are offered.

Let’s examine how you can maximize your chances for approval for your asset finance acquisition. It is important to know how the other side thinks and behaves – That other side is your lessor. Your lessor is motivated in three ways, and if you know those motivations you can focus on maximizing the benefits in leasing and, of course, get approved.

We can safely say that the three motivators for any lease company are the tax and accounting benefits they derive from leasing you equipment, the interest rate they charge you on the transaction, and finally the asset re sale or disposition if the asset is structured as a return to a leasing company.

Let’s focus on lease company motivator # 3 for a moment – the remarketing of the asset. If you do not want to retain ownership of the asset at the end of the lease you are probably going to want to enter into what is known as an operating lease. The key elements of any lease structure are: term of the lease, interest rate, value of your transaction, the monthly payment, and you obligation at the end of the lease.

Therefore it is important to focus on a firm that specializes in operating leases if you intend to approve the equipment – and getting to the core of our subject matter, your lease approval on an operating lease becomes much easier if you structure a financing that meets both your requirements and the lessors.

We can safely say the most critical element in getting your transaction approved is the overall credit quality that your firm portrays on your lease application and supplemental business info that might be required by the lessor. You should know that the smaller your equipment lease the less attention will be paid to overall credit and due diligence – that just makes sense. In Canada many leases under, say $ 50,000 as an example are credit scored via some basis info that the lessor acquires on your firm or the business owner. This data might be a commercial credit report, a credit report on the owners, and viewing some payment experience with some of your other suppliers. Small ticket leasing in Canada is very easy to acquire.

The larger challenge comes when you are acquiring assets over the 50k range. If your overall credit and financial position is weak you can well be expected to offer up items such as additional collateral, a down payment, or a guarantee buyback from the vendor.

Your focus on getting approved is the challenge, so you should know that there are different tiers of credit quality, and the lessors adjust the rate on your transaction to reflect the overall credit quality of your business, taking into consideration the asset also. So if your firm does not have pristine credit you should still be 100% aware that lease financing can still be approved and is available. Factors that now come into play under this scenario are the higher rate, a down payment request, etc.

Clients are always asking how they can position their transaction for approval. The reality is that you are, in many ways, in charge of your own approval. What do we mean by that .Simply by putting together a basic package that focuses on key areas such as your years in business, your ability to make the lease payments in question, your industry experience, etc can often garner a positive approval?

Financial statements may or may not be needed for your lease approval – this often depends on the amount and the policies of that lessor. If you are required to provide financials then the focus will be on historical cash flow. We tell clients that it is a bit of an irony that many lessors use your historical cash flow to approve your future dealings. From our perspective that was then and this is now!

In summary, you as the lessee can be key factor in your business leasing and lease finance approvals .Understand the type of lease you want, position your company in the best light possible by preparing the data we have shared with you that lessors focus on, and be fully aware that lease approvals of any size can be properly structured to make sense for both parties, your firm, and the lessor. Speak to a credible, trusted and experienced business lease financing advisor to ensure you get the approval you need and deserve for equipment leasing in Canada.

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

Click here for 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 .

' 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

Reinventing Your Business Funding with Asset Based Lending Companies

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Business Financing In Canada That You Need and Can Access

Information on asset based lending companies in Canada and how these lenders offer a total business financing solution that meets the needs of growth prospects and cash flow generation

Asset based lending companies have come a long way baby! Seriously though, business funding has dramatically changed in Canada - it was always a challenge - 2008 Global implosion happened, and guess what, business financing is more challenging than ever. Every Canadian business owner and financial manager for companies of all size and industry knows that.

We're all heard that when the going gets tough the tough get ... well you know what we mean. So business financing via asset based lending was slowly becoming more popular in Canada (It’s huge in the United States) and has become, can we say ' ultra popular' in our current time.

Asset based lending as new as it is in Canada certainly can't really be called ' innovative '- it simply focuses on, guess what ' assets '! It is essentially a great financing solution for companies that are normal, distressed, leveraged, experiencing high growth, etc.

The problem we have with the term asset based lending or asset based finance is simply that it is a bit of a catch all when it comes to being used or explained to business owners. We define this type of business funding as revolving lines of credit based on asset quality, receivable discounting, inventory and trade financing, which sometimes can actually include purchase orders or contracts.

The reality is that this type of financing can be customized to every industry for companies of all size, although typically we tell clients that the facility works best on transactions of 250k+.

Asset based lending companies can help you manage and grow your business, with the focus on ' grow’,

The biggest mis understanding around asset based lending is that typically it is not done via a bank; it is managed through private independent finance firms that are very experienced in asset valuation and funding. Their experience allows them to take a look at your financeable assets and maximize what is known as an ongoing ' borrowing base' for those assets. Typically we are talking about receivables, inventory, equipment, and as we noted, in some cases purchase orders and contracts.

The benefits of working with asset based lending companies are that it is a fast, innovative method of financing your company that is not focused around the requirements that a Canadian chartered bank would typically impose. We can honestly tell clients we have never seen an asset based line of credit not deliver on significantly more financing that the customer would have ever achieved with a bank revolver.

So what’s the bottom line - simply that by investigating this method of business funding you potentially have the ability to enhance your overall business financing for growth and success. Speak to a trusted, credible and experienced business financing advisor who can put you on track to better business financing! That’s a good thing.



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

Give Me Ten Reasons Why My Firm Should Consider Lease Financing!

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Equipment lease financing is an alternative choice for firms who wish to acquire capital equipment and other assets. Typically the other two methods to acquire such assets are either a cash purchase, or a loan of some sorts, usually via a bank. The lease financing solution can frequently offer significant cost savings to the borrower, know as the 'lessee'.

Equipment lease financing is an alternative choice for firms who wish to acquire capital equipment and other assets. Typically the other two methods to acquire such assets are either a cash purchase, or a loan of some sorts, usually via a bank.

The lease financing solution can frequently offer significant cost savings to the borrower, know as the 'lessee'. However, this is not just an expense strategy; there are numerous other reasons why this type of financing should be considered.

As an example, a lease transaction that requires only a low down payment might assist the company who has a lot of working capital tied up in receivables and inventory. Receivables and inventory typically represent the largest components of a company's working capital.

If a customer chooses to purchase the equipment instead they are in effect giving up certain key rights they have in a lease - for example, upgrading equipment, early cancellations, etc.

Normally when a customer considers either a lease or buy decision the business owner or financial manager would prefer to focus on ' hard dollar ' savings; while this is optimal of course many of the benefits of leasing in effect are intangible and should still be considered as part of the acquisition strategy. Let's look at some of those intangible benefits.

1. Credit Power - many lease firms have less restrictive credit qualifications than banks or other financial institutions. This is more so the case when the lessor is actually the manufacturer of the equipment!

2. Final Disposition - the company avoids having to dispose of the assets at the end of the term of the lease

3. Timing is everything - Lease approvals tend to be faster to obtain than a loan or bank type financing

4. Payment alternatives - many lessor allow skipped payments, seasonal payments and structured payments - example: A snow plough operator might request lower payments in summer when business is slow, etc

5. Bank lines untouched - in the current economic and banking environment businesses find it more difficult to access, or even maintain their bank lines - leasing leaves those lines untouched

6. Budget issues - Leasing eliminates one the of largest obstacles to a customers ability to acquire equipment - the cost of the machine. Many firms have budget issues and the lease strategy allows them to in some ways circumvent that strategy and pay the lease through an operating budget, not a capex budget

7. When a customer is concerned about warranties or maintenance of the equipment he has significant leverage, via payments, to influence a high level of service from the manufacturer or lessor.

8. Use of asset - if a customer over uses an asset he does not necessarily have to reimburse the lessor

9. Down payment - Leasing requires only a small down payment

10. Balance Sheet optics - Properly structured leases can have the effect of enhancing the customer's balance sheet as the liability does not appear on the balance sheet - Customers want to use equipment to generate profits, they don't necessarily want to own it.

In summary, yes the business owner and manager would prefer a hard dollar evaluation of any asset acquisition, but we have shown that there are many intangibles to consider also, many of which could benefit the firm in a number of ways and have a significant impact on their business growth, financing, and profit.



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






















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


Article Source: http://EzineArticles.com/3630883

Not Considering Sr&ed Tax Credit Financing Could Be Costly

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SRED loans enhance Cash flow !

Information highlighting the benefits of SR&ED Tax Credit Financing for companies using the SRED program to enhance business growth

Canadian business owners know that the SR&ED program in Canada is a huge benefit, and an incentive to the funds that Canadian firms commit to research and development - we haven’t met one firm yet who doesn’t think it’s a great program.

But are you missing out one on aspect related to ' SRED ‘, which is that you are able to implement sred tax credit financing that in effect supercharges your non repayable tax grant . Simply speaking your ability to monetize or cash flow you sr&Ed claim remarkably enhances your overall business financing.

THE SR&ED program (Scientific Research & Experimental Development) reimburses your for your R&D expenses - you know that already. So at this point a compelling choice emerges - you have the option of waiting for your cheque from Ottawa and the Provinces (you are perhaps familiar with the saying ' the cheque is in the mail’!) or you can facilitate a SRED loan to obtain your cash today.

Many younger , emerging or start up firms that we have worked with count on the cash from their SRED grant as one of the largest receivables or cash injections they will receive at one time during the year . That’s a lot of money to most firms. Actually the government statistics show that anywhere from 2-4 Billion dollars in any year go out to firms such as yours in the form of non repayable sred grants.

So how does sred tax credit financing work? Asks clients? Is it complicated, time consuming, what else is involved? Those are all perfectly legitimate questions.

We'll provide a very basic overview of the sred tax credit financing process. First things first - you need a sred claim completed and filed. In certain circumstances financing can also be done prior to filing your claim, but for simplicity sake we will focus on your claim having been filed.

If your claim has been prepared by a sred consultant with experience and reputations that plays a great factor in your sred loan approval. As you can imagine the actual sred claim it is the collateral for the loan, so we want to ensure your calim has a very significant chance of being approved. We hate to say it but it is rare that a business owner or your accountant can prepare a proper claim, simply because as in all fields of business an expert is preferred.

For the actual financing of the claim it also doesn’t hurt to work with a sred tax credit financing expert. He of she will enhance the speed of your funding, which involves simply a basic standard business financing application as well as review of the claim as we have stated. Funding is not for 100% of the claim, a very typical amount is 70%, and the other 30% is more or less to be viewed as a buffer. You can expect the whole process to take a couple weeks, which certainly isn’t bad, and if you focus on working with a sred financing expert you should have minimal delays, if any.

In summary, if the Canadian government is allocating billions to firms such as yours, clearly having cash is better than waiting for cash - consider monetizing your claim today and stay one step ahead of your competition that are still waiting for that cheque. Remember, as we said, it’s in the mail!

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

Click here for 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 .

' 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

IT ( Information Technology ) Equipment Leasing – Why Computer Equipment Leasing Makes Sense in Canada!

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The Why and How For Leasing Business Equipment

Information on information technology , .. i.e. IT computer equipment leasing in Canada. By the way, software can be financed!

Let’s get the acronyms out of the way – IT is of course Information technology , and hundreds of millions on dollars of computers, software, and related technologies are acquired by Canadian business every year.

So why is ‘it equipment leasing ‘the chosen method of financing form firms who lease business equipment. The reality is that these assets make your firm more productive and competitive – and equipment financing and equipment leasing simply remove one of the major obstacles to your innovation – that obstacle is the cost of the equipment. Although the cost of technologies seems from a distance to be always going down (thinks PC’s and servers, etc) the overall sticker shock of your total investment is still a huge potential outlay of valuable cash and working capital.

Lets examine why the main advantages of leasing make total sense in the context of it equipment leasing. We’ll also discuss how you can actually get this type of financing in place.

First of all, and we hate clichés, but cash is (still) king! And most firms simply don’t have the cash available to pay for all their technology needs. You also don’t want to be in a position to match long term capital acquisitions with short term working capital availability. So your ability to match the anticipated useful life of the equipment with cash outlays is a considerable advantage. That’s what lease financing does of course.

Canadian rates are very volatile and although they are low they are expected to go up – leasing will often give you the option of fixing or locking in rates.

Whether your firm is large or small you need and have access to bank facility or working capital lines – maybe you are even self financing? A lease for business equipment leaves those credit facilities untouched. Also, and put your hand up if you have any input on this one, but lease financing is usually achieved with a basic business credit application and applicable information such as your financials, projections, etc . It is arguably the easiest way to get business financing approved in Canada.

In general any investment in technology makes you competitive and in many manners allow you to cut costs, simplify processes, etc. Put a financing solution to that technology and business improvement seems like a very solid decision.

The reality is that if you firm requires it computer leasing you quite frankly don’t have a lot of financing options. Bank term loans in general don’t make sense for technology that in general depreciates in value but still have a direct benefit to your firm.

Many computer leases are constructed around the concept of an operating lease. There are essentially only two types of equipment leases in Canada, capital and operating. Capital leases are leases to own, operating leases are leases to use. When financing technology, it, computers, etc you should probably consider the benefits of an operating lease – they have a lower cost, a lower monthly payment, and you have a triple option at the end of the lease term – you can return, purchase, or upgrade. That’s true flexibility!

So if you are focused on technology acquisition consider lease financing – we have show it is a better and more appropriate use of cash flow, it is generally easier to obtain, it hedges you against obsolescence of your acquisition, and may even have some solid tax and balance sheet advantages .

The Canadian lease financing business is both specialized and competitive. We strongly recommend you seeks the assistance and resources of a lease financing and business financing advisor who is knowledgeable, credible and experienced in it computer leasing. Advice you receive on the right lease partner, the best lease structure, and what competitive interest rate you might be a candidate for could save you thousands and tens of thousands of dollars.

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

Click here for 7 PARK AVENUE FINANCIAL

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