4 Most Overlooked Benefits of leasing of equipment as a Business Finance Strategy

Tweet

Make lease financing work for your firm !

Information on the benefits of equipment financing and lease options for acquiring assets for your business. Any asset, including software, can be financed

Most Canadian owners and business managers wouldn’t think of always paying cash for equipment and other capital acquisition needs. They also can’t imagine, in the current economic climate, paying cash for everything. Whether you are in an industry that is highly capital intensive, or if you simply on occasion need to upgrade or purchase new equipment the leasing of equipment should be considered as an effective overall financing strategy for your company

Naturally no form of business financing in Canada could be considered perfect and met absolutely every one of your needs, but let’s examine what are considered to be normally the top four benefits of equipment leasing. Naturally you want to ensure you are dealing with the right type of lease firm and you have also carefully examined your rights and obligations under the business lease.

Anyway, benefit 1. Flexibility. The reality is that working with the right lease partner firm should provide you with the flexibility you want in your transaction. Flexibility is of course a broad term, but we are basically referring to the type of lease that works best - for your firm! Not everyone else’s. That flexibility comes in the form of low or no down payment, monthly payment structuring options ( here are possibilities abound!) , balance sheet optics around the amount of debt you can carry without getting your bank offside . Flexibility also comes in the form of the ability to return the equipment or extend the lease for a pre agreed period of time.

Benefit # 2 might well be called Cost efficient. The last thing you want to be doing is getting your firm locked into a long term lease on a depreciating asset - and the reason you lease financed the equipment in the first place is that you as a Canadian business owner and financial manager recognize that the equipment ultimately will probably have no value after its economic life is completed.

If the business world was slow moving and predicable you would never have to worry about competition, changing technology, etc- however things don’t work that way and as your needs change over time you can using equipment financing as the tool to address those needs .

Benefit 3- Tax benefits! We hate getting into long accounting and financial statement dissertations when we are lease financing info with clients, but the reality is that leasing of equipment as a business finance strategy has accounting and tax benefits re write off strategies around your payments .

Our final focused major benefit is simply Cash flow conservation. It's tough enough in today’s business environment to achieve positive working capital and cash flow for daily and long term needs. Utilizing lease financing as a tool to minimize cash outlay and reduced down payment requirements makes total sense. Choosing an off balance sheet operating lease strategy will also ensure your ratios and debt covenants stay intact.

In summary, as we stated, no overall business financing strategy works perfectly for all companies in all industries. But leasing of equipment has significant benefits that clearly outweigh other options such as purchasing for cash, entering into long term loans, etc.

Speak to a trusted, credible and experienced lease financing advisor to ensure you can take advantages of the 4 key benefits we outlined.







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

Your Company Qualifies For A SR&ED Tax Credit : Can you Finance A SR&ED Claim? Yes You Can

Tweet

SR&ED Financing Can Work For You

Information on the sr&ed tax credit, how sred financing works and your ability to factor sred which creates additional working capital and cash flow based on your r&d claim

Many companies in Canada taking advantage of the sred program (formally called the Scientific Research and Experimental Development) are surprised to find that they can in effect ' cash flow ' or 'monetize' that claim into the liquid gold business calls cash flow.

So, does sred financing make sense for your firm - by the way, we think it does... and how can you ensure you qualify? Let's ensure we cover off some of the basics around those issues in order for you to determine if sred finance makes sense for you.
If we go back to square one it all comes down to knowing what the program is, ensuring you qualify, and then having a claim to submit. SRED claims are submitted when you file your year end tax return.

If you have never filed a sred claim 2 key points immediately are a focus of discussion when we meet with clients - first of all you have to have the technical expertise to prepare a claim. Secondly, in the last year or so the government has altered the program in order to make submission more expeditious. You of course need to be aware of the new format guidelines, which in effect simplify your preparation and filing process.

In our opinion, and most agree we are quite sure, you want a sred consultant to prepare your claim. These are folks in private industry who specialize in preparing claims, and more often than not they have done work in your industry. We are quite sure we have your agreement than an expert in any industry is better than a rookie.
Technically your accountant could prepare you claim, but we're often surprised to hear clients tell us that their accountant was not even aware of the program!

In order to receive funds for your sred credit - and by the way these funds are non - repayable (yes you heard us correctly) you simply need to file a qualified claim.

Waiting for your refund is what sr Ed tax credit finance is all about. Sred financing is based on the premise that your firm could use the cash flow today, instead of waiting for weeks, months, or even a year in some cases.

So how do you factor, or discount, or cash flow, or monetize that sred claim. (All those terms mean the same thing). It’s a simply process; locate a specialist in Canadian business financing who can assist you in preparing a simply application that includes your sred claim and basic financial application info. Claims are generally financed at 70% loan to value, meaning the 30% is held back as a buffer. No payments are made on the financing and the final cheque from the government is netted against your advance.

In the meantime you can make use of those funds for any general corporate purpose.

So - do you qualify for a sred tax credit financing - if you have a claim you do? Should you consider a factor or finance scenario around your claim - that’s for you to decide and for us to suggest. And by the way, if you don’t need cash or working capital, then don’t finance the claim - but who is in that position these days?







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

Canadian ABL Financing – Why Asset Based Finance Lending Is A Class By Itself : Trusted And Versatile !

Tweet

Asset Based Lines Of Credit For Canadian Business

Information on ABL financing in Canada . How does this type of asset finance differ from bank facilities and why asset based lending increases borrowing power for working capital purposes

'Confidence in good sense ' - that’s one definition of the word trusted. And we think that’s a great way of thinking about ABL financing and asset finance in Canada. So ABL... What is it? It stands for asset based lending, and the simple definition of this new Canadian business financing facility is simply as follows.

ABL is a revolving line of credit facility whereby your assets are secured by the facility you borrow against all those assets on a daily basis.

But, and its a big but, as opposed to bank financing via a Canadian chartered bank facility you are allowed to borrow against the real world maximum liquidity of those assets . Typical assets secured under an ABL financing facility are receivables, inventory, fixed assets, and on occasion real estate if that also fits into your asset equation.

The uniqueness of Asset based lending is simply that the majority of these facilities are offered by what we call ' non - banks - given that that majority of Canadian business owners and financial managers associated ' borrowing' and lines of credit with Canadian chartered banks. Instead , the ABL community tend to be independent finance firms, some of whom are U.S. based but doing business here , who focus and have tremendous expertise in the one thing you cherish most - your business assets !

So where does the versatility com from then? That’s the great part of a line of credit via asset finance strategy. It's all about what we call ' maximization ' (is that really a word?). In ABL financing usually 90% of receivables become an immediate borrowing base, and inventory tends to be financed in the 30 -70% range. In case you haven’t figured it out yet (we’re sure you have) that’s about 30-70% more than you probably were getting before. And, under the concept of true asset finance, the appraised value of your unencumbered fixed assets also now become part of your daily borrowing ability for cash flow and working capital as you need it . Tell us that isn’t versatility!

Because ABL financing increases your ability to borrow for liquidity purposes it allows you to put aside the challenges of meeting qualifications for chartered bank lines of credit - all those things your banker loved to talk about - leverage, cash flow coverage, minimum debt to equity ratios and on it goes... you know the drill.

So, is your firm eligible? It is if you meet the sole criteria - you have assets! The beauty of asset finance is that it works for small firms, major corporations, firms that have financial challenges, and those enjoying the best of all worlds, high growth and profits and a need for constant new working capital.

So, got what it takes? If you have the need, for increased, flexible and higher lines of borrowing power then speak to a trusted, credible and experienced Canadian business financing advisor who will ensure you have a facility that meets your firms unique survival, growth, and 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

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

What is the Factor Cost Of Factoring Accounts Receivable?

Tweet

How To Rationalize the Cost of Factoring : Weighing The Benefits of A/R Financing !

Information on the cost of factoring and receivable finance solutions. Pros and cons of a/r finance - P.S. They're mostly pros!

Canadian business owners and financials managers who are considering financing accounts receivable often ask us how they can calculate , or moreso, understand the factor cost of factoring accounts receivable .

There are a whole bunch of factors ( excuse the pun ) that seem to be coming together to make the financing of accounts receivable a high growth , popular, and accepted method of business financing in Canada . The reality is that even just a few years ago most business owners did not even realize that they could sell their accounts receivable to a private non bank firm, gaining valuable working capital, i.e. cash flow! in the process .

Business is being driven to this method of Canadian business financing out of a very basic need - meet payrolls, make fixed term obligations, and purchase products and services. And when your customers make you wait, 30, 60, and unfortunately 90 days for your funds all of a sudden factoring, also known as invoice discounting and receivable financing becomes very popular. Not hard to understand.

Business owners want to know more about factoring and receivable financing simply because they recognize that cash flow challenges hinder them from growing, and yes, even surviving. And, we are sorry to say, many clients simply can’t get the bank financing they need to fund and grow their business - that isn't necessarily a condemnation of Canadian chartered banks, it’s a case of individual financing challenges within the current credit crunch and global economic challenges.

So, let’s cover off what you need and want to know about factor cost and the true way in which you should be looking at the pricing around factoring accounts receivable in Canada.

There are three; lets call them ' drivers ' in the pricing process of financing your receivables. Those three drivers are the time in which it takes for your invoice to be paid, and we mean right down to the day. Secondly the factor firm calls their pricing a ' discount ' - so the actual discount rate they quote you becomes critical in your knowledge of understanding your true cost of financing A/R. And finally, to keep things simple we often explain to clients in initial discussion that they receive immediate cash for their receivables once they finance them, i.e. same day cash.

However the reality is that the industry advances a (significant) portion of your receivable le, the rest is a hold back. Typically this portion is 90%, but many firms calculate total financing not just on the holdback but the invoice amount.

When do I get the holdback? Ask clients. The answer is that they receive the holdback as soon as the actual invoice is paid.

We thing its clear that the discount rate, of the three key drivers we have mentioned is the most focused on by clients. Because the commercial receivable financing industry is not regulated firms charge what markets will bear.

In summary, understanding the returns of your commercial factor firm will better assist you in determining if this overall receivable financing strategy is for you. Speak to a trusted, credible and experience Canadian business financing advisor to better understand the benefits of this growing method of financing your company.







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

A Simple Proposal – Canadian Working Capital & Commercial Business Finance Loans Info - No Strings Attached

Tweet

Wonder Why You Waited For This Information ?

Information on working capital and commercial business finance loans in Canada . Utilize this expert advice

Recently we came across the thought that knowledge without wisdom is dangerous. Wow! That seemed to us totally applicable to thousands of Canadian business owners and financial managers who struggle to manage or find working capital and commercial business finance loans and solutions for their companies.

But what about combining knowledge with the wisdom of experience? Now that’s a concept! Yes it might take some time to investigate a solution but boy in the long run wouldn’t it be worth it.

It's never easy when Canadian business owners and financial managers are out there looking for solutions. Although rates interest rates in Canada are generally perceived as ' quite low ' the ability to access cash flow solutions is still a challenge.

If you company has a solid asset base , good cash flows from a historical perspective , then you of course have a stronger chance of being more success in business financing .

On the other hand if you find yourself experiencing hyper growth, or coming out of a period of financial losses or turnaround scenarios then you need some help in both identifying and , even more importantly , accessing commercial business finance loans and solutions .

At the end of the day your solutions boil down to traditional or alternative... it’s as simple as that. Many new solutions that we focus on with clients are viewed as alternative in nature, but the reality is that these types of financings are gaining traction every day.

That’s where the assistance of expert advice, coupled with wisdom and experienced can really pay off we think. Doesn’t it make sense that if you haven’t even heard of some of these cash flow solutions then you probably also doesn’t have the knowledge and expertise to comfortably access them?

Commercial bank facilities from Canadian chartered banks are the obvious solution. If your firm can withstand financial statement due diligence around historical profitability, ratios, covenants, personal collateral of owners then you're clearly eligible for the lowest cost form of business financing in Canada.

Thousands of firms aren’t of course eligible for this type of financing - so that’s where our alternatives come in. They include ABL facilities which are a solid alternative to commercial bank lines of credit. Smaller and start up firms can access basic working capital facilities that simply margin A/R and inventory in a combo type arrangement. A fabulous, (yes fabulous!) form of business financing around receivables is C I D. That’s the name we've given to Confidential Invoice Discounting or financing - it has you in charge of your receivable financing, not a third party intrusive factoring firm.

Other solutions you can consider are securitizing receivables, leases, or contracts, and don't forget purchase order financing and tax credit financing.

So, a bottom line? How this. Experience and wisdom is a powerful combo. So consider talking to an experienced Canadian business financing advisor who can assist you in maximizing working capital wisdom with... you guessed it... experience!







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

Downside Of Canadian ABL Asset Based Finance ? P.S. There Is No Downside! Business Financing And Lending That Works

Tweet






Asset Based Lending Works



Information on ABL asset based finance. Explaining the perceived downside of lending via asset base lines of credit financing for Canadian firms

So, which is it? We're big proponents of ABL asset based finance in Canada. So once in awhile a client pops the question. What's the question? It's ' Is there any downside to asset based financing for a Canadian firm?" Fair enough. ABL lending seems to have only good things attached to it in terms of the benefits. So about that downside...

We often hear the term perception versus reality. In the mind of the perceiver the perception is of course reality.

The world of ABL financing in Canada is in some ways fairly new. It's used by wholesalers, distributors, retailers, and manufacturers as an alternative to the commonly known ' bank operating line of credit '. One guesses that to be able to ' pan ' something and express concerns about the downside that you have to know what you're talking about.

In simple terms ABL lending in the context we're talking about it is a revolving line of credit secured by the assets of your company. Those assets are most commonly A/R, inventories, and in some cases we can throw unencumbered fixed assets and real estate into the mix. Again, simply speaking you borrow on a daily basis against the total value of all those assets once the asset value is agreed upon between yourself and the ABL lender.

So, on to that perceived downside! Many business owners and financial managers make the assumption that their firm must have the same credit quality that Canadian chartered banks require - that being profits, clean balance sheets, owner guarantees, the necessity for outside collateral on occasion, etc.

So the perception is that the downside here is that approval for ABL asset based finance is challenging. That clearly is not the case, if your firm has assets that can be financed you are in fact the best candidate for asset based lending.

Pricing. That clearly is perceived by many clients as the downside to this newer method of financing Canadian business. So, again, perception, or reality?! The reality is as follows: larger asset based lines of credit; particularly those in excess of 3 Million dollars are priced ultra competitively with Canadian banks. In some cases they might be lower!

How's that for a perception breaker?! For facilities between 250k and the, say 3 Million range pricing is done based on credit quality. In general these facilities are in fact priced higher, but in fact become the only alternative for firms that can't access any form of traditional financing at all.

‘Our company is public ' says a CFO. So we assume we can't access ABL revolver facilities?' Nothing can be further from the truth, as our ABL financing solution serves both private and publicly controlled companies, either on the TSX or Venture exchange in Canada. Even subsidiaries of U.S. companies by the way could qualify for asset based lines of credit. And in fact we think shareholders of public companies would like the idea that asset based facilities tend to grow and provide ongoing capital as the firm grows.

Fees. That’s the other common complaint we occasionally here about asset based finance. Here's where we will give in a little bit to those naysayers, as yes, there are some miscellaneous fees associated with ABL lending. But those fees only are a bit larger when we're talking about those very large revolving facilities, and in that case the pricing and access to more credit and working capital tend to offset any cost such as an appraisal fee, commitment fee, etc.

Finally, time to get approved and closed. Clients perceive ABL financing, perhaps because it’s different, as taking long to close. If you have solid reporting, can talk intelligently about your business and are prepared to commit to a new lending relationship we don't think there is any more time involved versus a bank line of credit.

So, perceptions. Realities. You decide, but be open to accessing this new method of financing. Speak to a trusted credible and experienced Canadian business financing advisor for assistance in your reality check!







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

Managing ( And Solving ) Business Cash Flow And Receivables And Inventory Finance Challenges In Canada

Tweet

What is the Key to Managing and Understanding Business Cash Flow?


Information on business cash flow solutions in Canada for business owners facing receivables and inventory finance challenges

Business cash flow and working capital. U.S. financier Harold Geneen once said that you can make almost any mistake in business and be forgiven or remedy that, but ' when you run out of cash they take you out of the game ‘. W e agree!

So therefore the financing and management and solutions involved in receivables and inventory finance are key to the success of the Canadian business owner and financial manager.

While profit is the measurement of the income statement many challenges and problems arise when you are not managing cash and working capital. It's a constant juggling act, don’t you think? There is a great analogy about how you juggle the bowling pins of business to generate profits but it’s the spinning knives that determine cash balances and the pitfalls that come from that. It seems we're full of sayings and analogies today...

Busines cash flow is of course the life blood of your company's operations. The difference between cash and cash flow is essentially the difference between your balance sheet and income statement. It's really a presentation of dollar amounts at any point in time, plus the changes in those dollar amounts.

It the changes in your working capital accounts that really determine your cash flow.

While sales generate cash, but you use that cash to purchase goods and services, pay your staff, rent, utilities, loan payments, etc.

It's a constant balance act as every business owner knows and the alternatives can be very costly. You can of course increase your own equity in the firm, but that’s costly and means giving up some measure of control. Asset sales are also, generally, not desirable.

So we have made it clear that you can increase cash by one of several methods:

1. TAKE ON DEBT

2. INCREASE OWNER EQUITY BY OWNERSHIP DILUTION

3 .SELL MORE AND COLLECT MORE - Convert non cash assets such as A/R and inventories to cash

4. REDUCE COSTS

Suffice to say that number 3 is our favorite!

When your sales are growing and you turnover your receivables in a proper manner you can avoid a cash crisis. If you don’t have a proper inventory finance of receivable financing facility in place vendor relationships can get severely strained.

There are solid financial solutions for firms struggling with profitability or for those Canadian business owners and financial managers unable to raise equity. Bank financing might be available, but many times it is not. Even growth, as we have said in the past, can be a double edged sword. Great companies disappear when their cash reserves or financing procedures become insufficient to finance their growth.

In Canada solutions to business cash flow, receivable and inventory finance are abundant. They include asset based lending, equipment finance, sale leaseback strategies, receivable and inventory finance facilities, and even the monetization of tax credits.

Speak to a trusted, credible and experienced Canadian business financing advisor on how you can manage, and solve busines 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

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