Liquidity Problems? Cash Flow Challenges? Bank Problem? Here’s Your Next Step

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Solutions To Big Financial Dilemmas



Information on solutions for Canadian firms who have cash flow challenges or a problem at the bank. Answers for business working capital and liquidity problems

Liquidity problems and cash flow challenges plague thousands of Canadian business owners and financial managers. A lot of this challenge revolves around a company's inability to properly access bank financing in Canada. If that's the case what is the next step then?

We think that next step understands your alternatives, ensuring you understand why you are in a liquidity crisis, i.e. that cash strapped feeling, and finally understanding what might get you back on the right course at the bank.

As we have stated in the past Canadian chartered banks are the first ' go to ' when it comes to securing capital and Canadian business financing. Yet many business owners often find that the bank is either not suited or pre-disposed to solving their cash flow and working capital challenges.

Is there an easy way to a business owner of finance manager to assess the overall probability of achieving bank financing? For our purposes it comes down to your ability to understand 4 key issues. What are they?

First of all, as a general rule you have to be able to show profitability. We can't count the number of firms we meet who are in either a bad year financially or in many cases in the throes of a turnaround back to profitability. Unfortunately in general that doesn’t count at the bank. Banks take the approach that you will pay the loans or working capital financing back from profits. If you can’t demonstrate that there is an immediate obstacle to bank financing success.

Your firms overall collateral position is the 2nd focus from a bank perspective. Certain types of collateral are more preferred than others. They include real estate, receivables, uncollateralized equipment, etc. In general inventory is rarely viewed as appropriate collateral by the bank.

The third focus from the bank is your overall balance sheet. Aside from ensuring it balances..!! .. you must have the right combo of debt and equity. Is there a rule of thumb in this area? Typically the answer is that you must have a dollar of equity in your firm for every 2 dollars in debt.

Finally, is there anything more uncomfortable than the issue of personal guarantees? It's all about ' putting it on the line ‘, which of course many business people are reluctant to do. Your logic is of course that you incorporated to avoid guarantees, and that there should be some risk sharing. Again, that’s your view, not the banks.

We do believe, and have seen that in many cases a strong financing proposal might eliminate all or at least part of a guarantee, so be prepared to address this issue delicately and properly.

Although Canadian chartered banks are among the absolute best in financial strength, management, services and infrastructure it's of course still easy to cast dispersion and doubt on their stated goals of helping Canadian businesses, particularly small and medium business .

So when you or the Canadian chartered banking system have lost faith in each other what’s next? The reality is that many non-bank institutions and independent commercial finance firms provide a variety of cash flow solutions to your business. They include :

Non bank asset based lines of business credit

Receivable financing,

Equipment financing

Sale leasebacks,

Supply chain and tax credit financing


And these solutions work, and in many cases compete directly with bank offerings.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in identifying the next step in Canadian business financing alternatives 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

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

Inigo Montoya’s Guide to Cash Flow Financing : The Business Working Capital Loan demystified !

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New Rules For Working Capital Finance In Canada


Information on the concept of cash flow in business financing in Canada . What type of working capital loan makes sense for your firm?

Have we got a story for you! Actually it's not even a story, it’s a fairy tale. A fairy tale? Truth to be told it’s actually been told already - we talking about the movie ' THE PRINCESS BRIDE ' which some might associate for kids, but it's actually on a few different levels.

A character in the movie is Inigo Montoya . So, Inigo Montoya? The Princess Bride? Oh, yes and cash flow financing! What in the heck could they have to do with each other? Let's explain.

In the movie our friend Inigo is known for always saying ' I do not think it means what you think it means ‘. That's our premise today on ' cash flow. With apologies to Inigo Montoya.


Business cash flow financing. We hear that a lot, clients want to talk to us about it a lot, and most of all, we hear about it in an inconceivable number of ways. Cash flow and its sister, working capital can be used in very direct ways or obscure ways. The offerings that bring about cash flow financing solutions are both direct and indirect.


A good bottom line for us to focus on is that cash flow is a crucial way of determining your company’s health. So that is why it’s a good way to get a handle on processes around cash flow in your company, our terminology (here we go again with Inigo) as well as what internal and external ' players' can affect your cash flow performance...

As we said, cash flow, as well as profit are what most people would agree are the two most important measurements to determine if Canadian business owners and financial managers are winning. The reality is though that while you might look at those two measurements over, say, a yearly period they are quite different and have different uses or meanings to you, the business owner or manager.

Suffice to say that when you are looking at operational issues and challenges the focus is often more clearly on cash flow and working capital as opposed to profit. Ironically we find that when we talk to people about their stock investments in individual firms they talk about profit more than cash flow... we'll never figure that one out.

Should you be surprised when you are doing well, (from a profit perspective meaning of course expenses were less than sales) that you are out, or short of cash? Naturally if you could immediate ' cash flow ' or monetize all that revenue you wouldn’t be in this position, right.

The three elements of your cash flow statement are financing, investment and operations. They affect cash flow in different ways. Challenges arise when you find you can't invest what you need in your business or that you need to take on more debt.

So, cash flow. As we said, there isn't a day when we don't hear about a different meaning or interpretation of the term. In a way they are all correct, it’s about managing your cash inflows, budgeting your cash flow, granting credit to clients,

Are their solutions to your working capital loan or monetization challenges in Canada? You bet there are. They include turning that revenue and those receivables and inventory into business working capital, either via a loan or direct monetization. Solutions include receivable finance, inventory financing, sale leaseback finance , asset based lending, confidential invoice finance, tax credit monetization, and a working capital term loan.

Speak to a trusted, credible and experienced Canadian business financing advisor for solutions that make sense to you. With apologies to our good friend Inigo Montoya!

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

Direct Line = 416 319 5769

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

2,450 Ways To Pinpoint Cash Flow Problems Via Working Capital Solutions In Canada

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Do You Think You Understand Solutions To Canadian Cash Flow Problems – But Perhaps Don’t ?!


Information on how Canadian business can pinpoint cash flow problems and implement working capital solutions for greater cash flow success

Cash flow problems and working capital solutions to those challenges that are faced by Canadian business. Are we really saying there are 2,450 ways to pinpoint the problem? In a way yes. Let's explain.

Although cash flow challenges are more than ' intuitive ' in the real world (that’s where we ourselves work) Canadian business owners and financial managers often fear or just simply don't understand how to quantify those problems. The reality is that the actual problem can be quite clear if you go to your financial statements, preferably on an ongoing basis.

Let's assume you can identify 2 data points in your financials - the number of simple relationships you can look at with those 2 numbers is of course 2.
3 different numbers or data points in your business numbers would allow you to calculate 6 relationships, 10 for example would allow you to calculate 90 relationships. Finally, if you identified 50 numbers in your balance sheet, income statement, or cash flow statement you would, you guessed it, be able to formulate 2,450 calculations. It's of course a geometrical solution we have just laid out.

So, you next question is of course ' what the heck is your point?! )

It’s simple actually; the relationships we are talking about are in fact more commonly called ' ratios' by financial types. Naturally you don't have to calculate 2,450 ratios to in fact get some meaningful data from your financials; a small handful will do nicely!

Let's examine quick examples to show you how you can very quickly pinpoint cash flow problems in your firm. Let's take 3 data points, your sales and your working capital. The working capital calculation is current assets over current liabilities on your balance sheet. Isolate those three data points and do the calculation. The actual calculation is Sales / Working capital.

Congratulations, you have just completed your working capital turnover calculation! It measures how your company is in fact managing your cash flow, because as sales go up inventories, receivables and payables rise also. All of those have been captured in our final calculation! In effect you have just mastered a simple way to compute the very complex relationship within your firm on a daily basis as you sell and collect.

Important to note that the number in and of itself is not meaningful. When you track it over time, say monthly, it becomes VERY meaningful. And for the purposes of this ration a lower number is a better number.

It's also important to note that each industry in Canada will have a different number as a result, ranging anywhere from 2 to even 18. Each industry is different.


We're not accountants but what we have hopefully demonstrated is that any business owner or manager can use any number of data points in their financial results to pinpoint cash flow problems and performance.

It's all about asset management; in our example it’s those current assets that pay bill and allow you to make loan payments. Your goal is to manage the ' cash on hand ' account in your business well enough to put you in constant survival mode - and it's a jungle out there!

In Canada various solutions exist for cash flow problems. They include receivable financing, bank lines of credit, asset based lines of credit, monetization of tax credits, and supply chain finance. Each of these works in a different way, but all provide you with working capital solutions.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with score carding and solving your cash flow challenges.

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

Direct Line = 416 319 5769

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

Know The Happiness Formula For Cash Flow Financing And Working Capital Problems ?

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Are You A Great Cash Flow Manager ?


Information on cash flow financing management and working capital problems and their solutions in the Canadian business space.

Cash flow financing in Canada. Is there in fact a ' happiness formula' for solving and managing through cash flow problems? In our opinion it's really a combination of management as well as sourcing the proper solution based on your firm’s particular situation.

Let's examine some tools, tips and strategies around what we might consider a ' Happiness Formula '! in Canadian business financing .

A good way to address the topic is to focus on 3 sub topics - understanding what is in your financial statements, using that information to work through your cash flow cycle, and, finally, financing cash producing assets... properly.

We have said it before, and of course we'll say it again, too many business owners and financial managers focus on their financial statements from a viewpoint to looking primarily at their income statement, perhaps then the balance sheet.

Guess what though; probably the most important way to view cash flow management and to identify working capital problems is in that third part of your financials, it’s the ' Cash Flow Statement '. For us old timers it was also aptly called ' Sources and Uses ' and we're talking cash of course! We love the line ' Cash ... where got ... where gone'!


So what we are saying is that this particular part of your financials can lead you to our sought after 'Happiness Formula.’

The simple part of looking at this statement is the fact that it quickly identifies the gap between profits and cash - and as most business owners know they are often, if not always, NOT the same!

The bigger that gap is of course a solid place to and time to start thinking about solving working capital problems.

So how do you in fact secure the proper cash flow financing in Canada. And don’t forget that it’s not just about surviving in business; it’s about growing your business. That growth will simply enhance the value of your company.

The cash flow statement will properly identify your overall business or operating cycle. In fact it’s even a precise calculation that you can use to track how long 1 Dollar flows through your company, from order to collected receivable. The longer the time gap the more working capital problems and challenges you have.

Cash flow financing come from two areas, borrowing, or simply turning your assets such as A/R and inventory over. Naturally you also want to manager your fixed assets so they are in a proper relation to your overall equity and capital structure.

And those solutions to cash flow finance in Canada? They are varied - they include chartered bank facilities, asset based non bank lines of credit, receivable and inventory financing that are again non-bank in nature. Additional sources are monetization of tax credits or the sale and leaseback of owned assets.

Still searching for the Cash flow Happiness Formula? Speak to a trusted, credible and experienced Canadian business financing advisor today.

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

Direct Line = 416 319 5769

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

Refinancing? Solutions Your Company Can Live With Via A Restructuring Loan Or A Bank Special Loans Takeout

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Looking For A Restructuring Loan For Refinancing Your Business ?




Information on refinancing your Canadian company when a restructuring loan is required . Why Special Loans situations are not ‘special’ !

Many Canadian companies find themselves domiciled in the town of ' Dire Straits '. That’s when a 'relocate ' via restructuring loans and refinancing is in order. In certain other cases extreme situations might exist whereby a Canadian chartered bank or other institution has in fact ' called ' their loan, putting them in the unenviable situation of being in what our banks call ' Special Loans ‘. And we'll promise to hold off on the humor around the work ' special '!

When you consider your firm is either in, or a candidate for refinancing or restructuring
that involves a focus that’s combined with what the finance folks call the ' stakeholders '. They include owners of the firm, lenders, and of course key suppliers. These situations are often dynamic and time sensitive, further adding to the excitement!

What are some of the benefits of working with someone, or a team that is experienced in this area? Naturally finding an individual or a firm that is as serious about your turnaround as you are is key... it’s that ' people thing ' we hear about so often. You're looking for both technical synergies and of course... solutions.

Naturally the final outcome of any restructuring can be different. It could involve the sale of the firm, a partial sale of equity, of more simply, a refinancing of the business that addresses the key issues and problems.

'Assets ' are key to turnaround and restructuring. Whether they are hard assets or perhaps future cash flows under recurring revenue model its all about keeping customers and injecting new cash flows into the business.

So what are some key elements required to get your firm out of ' SPECIAL LOANS ' and back into a day to day operating business cycle that you can live with .?
They might include asset sales, supplier term renegotiations, or financing of badly needed to assets to sustain and grow the business.

There are some key things you can expect in any restructuring of your company. First of all it usually takes longer than you think, a worst case scenario re timing is never wrong to have in place.

Financing solutions in Canada that work well with special loans takeouts include asset based credit facilities, bridge loans, sale leasebacks, and working capital financing re A/R and inventory programs that margin current assets to the maximum allowed.

The bottom line - restructuring and refinancing of any firm, small or large is rarely a fun cake walk! But solutions exist, so seek out and speak to a trusted credible and experienced Canadian business financing advisor today for the experience and special attention that this challenge requires




Click HERE for 7 PARK AVENUE FINANCIAL

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

Direct Line = 416 319 5769

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

Turbo Charge Your Banking Via A Business Line Of Credit ABL Revolver!

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Small, medium or large? We're not talking about a coffee cup size... we're referring to the fact that no matter what your size of business your access to a business line of credit is the lifeblood of your company. That's why an ABL revolver (ABL = asset based line of credit) is potentially the solution to turbo charge your working capital and cash flow.

Let's examine how.
Clients seem to always wrestle with the fact that they don't really understand the differences between this type of business financing and banking as opposed to a 'regular' operating facility with the bank. The differences could not be more dramatic. While a bank facility (by the way, we are all for them also, when they work! ) focuses significantly on your balance sheet ratios and over all profitability, etc the ABL revolver solution hones in on one issue only - your assets and their overall quality and size. It is on that quality and size that the ABL business line of credit is structured.


Borrowing power is what business lines of credit are of course about. When you utilize the ABL approach you in effect leverage all the power of the assets, which certainly isn't like what we like to call ' traditional bank borrowing '

.
So, why would a business such as yours want to unlock that borrowing power? The reality is there are some very recurring needs for firms which choose this type of business financing. First of all they either can't get or can't get enough working capital borrowing power against their inventory, receivables and equipment. Secondly, all sorts of other problems, challenges, and yes opportunities can e overcome with an asset based line of credit.


Many examples exist of firms who have doubled and in some cases tripled their business financing access via this type of finance. The answer is simple - it's based on asset size, not ratios and covenants and external collateral.
Those include firms which have large seasonality issues, companies who which to merge with or acquire a competitor on an asset financing basis, and, most commonly, firms that view themselves in turnaround or restructuring mode when it comes to where they are at in their life cycle - i.e. coming out of a challenging economic time or negative business event (operating losses, etc).
Did we just say ' operating losses '?

Yes, the reality is that even firms who are experience operating losses and could otherwise not achieve maximum operating cash flow are excellent candidates for ABL financing. We should mention that the type of facility you get, the pricing on that facility, and how the facility works vary within ABL revolver financing depending on your overall transaction size and asset coverage.


We must never forget also that these type of facilities never bring debt to your balance sheet, you view them similarly as an operating line, in that you are just monetizing your assets for working capital and cash flow - the only difference is you've got tremendous flexibility around borrowing power - because you are borrowing against a base of receivables, inventory, unencumbered equipment, and in some cases real estate also.


In summary ABL revolver financing gives you a full service business financing, its cost effective, addresses almost every financing problem you have had related to cash flow, and is available in facilities from 250k to many millions of dollars.
It somewhat of a secret to many that some of Canada's largest corporations choose this type of financing over a traditional bank facility. Speak to a trusted, credible, and experienced Canadian business financing advisor on why ' ABL ' give you that ' turbo charge' boost in cash flow we've talked about.

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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.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/6059576

Key Issues In Factoring And Receivable Financing . Bringing Clarity To Solutions For Funding Receivables In Canada

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Clearing The Air On Canada’s Most Misunderstood Business Financing Solution




Information on factoring in Canada . How receivable financing differs from a bank borrowing solution and why funding receivables is becoming more of a proven successful strategy for the Canadian business owner

Key differences in banking and receivable financing have the ability to get the Canadian business owner and financial manager confused. Let's try and UN - confuse some of that information to provide some clarity as to why thousands of firms are gravitating to receivable factoring in Canada.

The core differences are in fact quite clear... how they are interpreted and what sort of solution you ultimately choose is where things get exciting! And those key difference - they arent as complex as you might thing. Simply speaking they are that the ability to borrow in this method of Canadian business finance revolves solely around the size and quality and value of your sales. Point number two is that this is not, we repeat ' not debt ' financing - so you are in effect just monetizing assets for cash flow. And that’s a good thing.

And our third difference - simply that the type of facility that you undertake when choose the strategy of finance via funding receivables is critical. That’s because your firm is not a borrower per se, you are a party to a 3 way business transaction involving your firm, your factoring partner and your client.

Quite frankly though it’s our recommendation to leave your client out of it! Is that possible? It absolutely is if you choose a confidential receivable financing facility that allows you to bill and collect your own A/R without notice to any other party - i.e. your client! And this can be easily accomplished if you have the right assistance and guidance from receivables professional.

We always point out to clients that although our focus today is discussing the financing of a business A/R the reality is that this type of facility can be nicely combined into a comprehensive working capital solution that bundles up your receivables, inventory, and even unencumbered equipment into one borrowing facility. That's supercharging your borrowing ability, and often delivers additional financing anywhere from 50 -100%, or more of cash flow power.

The general consensus is that receivable financing is expensive. While some may argue strongly that it is it is important to understand that the way the industry delivers pricing is not in the form of an interest rate per se. It’s in actuality a discounted amount based on receivables covered under the financing arrangement.

What's more important than rate in actuality, we feel is your ability to now borrow as much as you need to based on sales revenue, new contracts, large orders, etc . And if you're on top of your receivables and inventory turns all we are saying is that you're turning over more assets... more often, and that equates to... you guessed it... more profits.

Speak to a trusted, credible and experienced Canadian business financing advisor on what makes sense for your firm when it comes to a receivable financing program that best suits your needs. Finally... clarity!

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

Direct Line = 416 319 5769

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