Franchise Financing Loans In Canada

Tweet




Franchising Loan - Are You Approved? Here's How


Information on
franchising loan strategies to ensure approval for the entrepreneur

Franchise financing approval in Canada is a key aspect of the entrepreneurs challenge to purchase and build a business. Canadian business people purchase franchises because they wish to profit and be successful on an already proven business model. We of course assume they have picked the right franchise!


What mistakes can be made in franchise financing as it relates to the purchase of a new or existing franchise? Naturally solid planning and careful preparation of a business plan increases the chance of success.


Whether a business is a franchise business or not the under pinnings of a successful finance strategy are important to long term success. Business owners, bankers, other lenders and financial analysts always look at the relationship between debt and equity – in simply language that means how much you yourself are putting into the business and how much you are borrowing. If you borrow too much you are considered ‘over leveraged. Therefore in the course of purchasing your franchise you should be prepared to make a personal investment in the business also – that’s a given – it cannot all be OPM, which is and an acronym for ‘Other Peoples Money ‘.


So of course when we meet with clients they always ask ‘how much do I have to put into the business? The answer is as follows – many franchisors will actually insist on a certain amount of money being put down , because based on their actual experience with their own locations and other franchisees over time there develops formulas as to what is an optimal investment by yourself .


Also keep in mind that if you, as an example, are purchasing, say, a large unit of a restaurant chain that transaction might be in the 1 Million dollars range. Let’s say you put 25% down of 250k. Another franchisee might be buying a service oriented business that does not have and furthermore does not require fixed assets such as leaseholds, equipment, etc. If that business cost 100k to purchase a 25% down payment is of course only 25k, much less than the 250k other franchisee had to put down in absolute dollars. So our point is simply that if the purchase price of your franchise is asset intensive, and has a higher dollar value you must naturally assume that a large absolute dollar amount of financing is required. That probably is clearly the appeal of many service based franchises that do not require assets.


So how are asset based franchises financing in Canada. There is in our opinion a large amount of dis information on franchise financing in Canada – therefore new and prospective franchises are encourage to speak to a trusted and credible franchise financing expert . That is simply because you will know your options and strategy much better. It certainly doesn’t hurt, if you can, to speak to other franchisees in the franchise system that you are looking at purchasing.


In some respects there is a benefit to purchasing an existing franchise from a current franchisee in the system you are looking at. Our observation is that those units come with a higher price , for the simple reason they are proven already, they have sales, profits, and cash flows that you can analyze , with your franchise financing expert, to determine the overall viability of the business .


We have worked with a number of prospective franchisees who actually are comfortable in buying a franchise that is not doing so well because they strong feel they can turn it around. So there are in effect buying a business that is proven, but temporarily distressed in some manner, usually relating to issues such as poor sales revenues, etc.


Franchises in Canada are financed predominantly by one major government program that is in existence – we have found that by utilizing this program, and complimenting that financing with a working capital term loan and lease and equipment financing (if applicable) helps to ensure overall franchise financing success.


In summary, ultimately you as a business owner have to be comfortable with what you are purchasing – but you should also take comfort in knowing that franchise financing is available in Canada, and simply needs to be tailored to the type of business you are buying, its size and asset requirements, as well as the utilization of proven and available financing methods such as the government CSBF program we referred to.


Investigate your opportunity, plan financing carefully, execute on that financing and your chances of success increase immensely






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

Film Tax Credit Financing Canada – Cash Flow Tax Credits Now!

Tweet

Information on financing film and digital tax credits in Canada

Financing Film, television and digital multimedia productionsin Canada is less of a challenge when you have access to interim capital to assist in completing projects and of course moving on to the next one!

There are a number of excellent new programs at government levels that allow you to monetize tax credits which in many cases now come in the form of a rebate - that rebate can now be monetized to recover a significant portion of expenses related to offerings in various media sectors .

Whether a Canadian business is manufacturing nails or shoes, or created digital content for the entertainment masses cash flow continues to be king. As Canada emerges from the worldwide liquidity debacle of 2008-2009 business seems to be getting better in all areas, and media and entertainment projects are again emerging and flourishing.

Accessing interim capital through strategies such as film tax credit financing allows your team to complete projects and access additional capital in the form of equity or gap financing as an example. We are the first to admit that most media and entertainment people quickly realize that in Canada there are certain limitations to chartered bank financing, term loans and subordinated debt for media and entertainment productions.

Recognizing this challenge , while at the same time seeing potential revenue and economic benefit from this industry, the government has stepped up to the table and developed programs to refund a healthy portion of production expenses back to the industry .

And to make matters even better, by working with an experienced , trusted, and credible advisor in this industry you can monetize, or lets call it ' cash flow ' these refunds into working capital and .

So how do you achieve that cash flow? You do that by simply ensuring that the proper costs associated with your production and the intellectual property are documented, certified, and approved under your project. The rebate or tax credit is then financed as a short term discounting or in effect a ' factoring' of the claim. There is only one bottom line, which is you get your funds now and can place them back into the project to both recoup costs and also of course to complete the project.

As various parts of government have committed millions of dollars to these rebate credits why would you not want to accelerate the benefits immediately?! If the government and the industry are breaking new ground in this area of financial assistance you want to be able to take advantage of it - that surely is for certain.

The interesting part of this whole scenario is that the credits now virtually cover all aspects of media, and now also include video-game development and interactive media. There is also a breakthrough in the new legislation which doesn't have the government entities in a position to choose between what projects might work and what projects might not be successful.

Most business people outside the industry often wonder why these rebates our offered, but more and more data is emerging that reflects the fact that the government and economy as a whole benefits ten times over from such investments . Ten times over is great R O I !

Speak to a trusted and credible film tax credit advisor to ensure you are able to access this great funding strategy.




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

Business Working Capital - Now !

Tweet

Generating Cash Flow Through A/R Finance Solutions

Information on accounts receivable financing solutions as as Factoring and Confidential Receivable Finance solutions

As a Canadian business owner or financial manager you have heard of this type of financing but require more information in two areas:

- How does it work

- What does it cost

Naturally, even more important, is it right for your firm? Factoring in Canada is what we would call somewhat 'fragmented' as a business or industry. As a result many clients we meet either have entered into the wrong kind of factoring facilities, or simply don't know where to go when they want more information. Because of that we encourage business people to enlist the aid of a trusted and experienced financing advisor in this area.


Unbeknownst to many people there are even banks in Canada, including some in the big 6 that offer this type of financing. We would position that offering as probably the best one in the industry, however our overall financing volumes must be very large and typically a facility would be at least in the one to two million dollar range, so that does not work for everyone .


When we refer to factoring we can make the statement it is in the general category of
asset based financing – but it's very specific in that in deals only with your account receivable. The basics of the factoring finance offering are that your receivables are purchased, as soon as you issue them, (if you wish). Legal ownership of the receivables is not longer your firms, but you have the immediate cash flow and working capital by virtue of having sold those receivables.


In our opinion 95% of the factoring in Canada involves the factor firms role in the billing and collection of your accounts – we don't necessarily feel that is the best facility for the Canadian marketplace and encourage customers to initiate a facility whereby they get all the benefits of factoring from a financial perspective, but at the same time are able to bill and collect their own receivables. Most Canadian business owners are not looking for what we could call an 'intrusive 'financing facility that has their customers interacting with the factoring firm.


Canadian business probably does not realize that factoring, also otherwise known as invoice discounting, is used by thousands and thousands of firms in Canada. It has become more popular for a variety of reasons, one of them simply being that as it gets more difficult to obtain business credit in a challenging financial environment factoring itself offers total solutions to working capital and cash flow challenges. Another key point is that this type of financing has a broader appeal to companies that are either in start up phase, or growing very quickly and unable to access more traditional working capital.


A true feature of factoring is that it in effect provides you with unlimited working capital. By that we mean that if you have a traditional banking or term lending type facility it has caps and limits on it, including things such as covenants and other collateral. Since the underlying asset in factoring is just the account receivable, we can make the statement that if your receivables are continuing to grow you will always have the commensurate access to cash for all those receivables.

Most of the factoring in Canada is done on a recourse basis , so your firm ,or your factor partner, has to do some level of due diligence on your customers, although naturally every Canadian business should be doing that anyway . So if a receivable becomes uncollectible then you need to repay that amount that was advanced on that receivable.

In summary, if your Canadian firm is looking for a traditional factoring model and you don't have concerns about your customers being notified of your factoring facility , this type of financing will suit you.







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

Worried About The Cost Of Business Accounts Receivable Factoring ? Problem Solved !

Tweet

Minimizing Factoring Costs and Maximizing profits !

Information on the true cost of business accounts receivable factoring in Canada and showing a new way of looking at financing your business with account receivable finance strategies

While many Canadian business owners and financials managers are accepting the significant benefits that come from business accounts receivable factoring what they continue to struggle with is the cost of this type of financing. Let's examine the proper method of looking at this cost of financing and ways to minimize the cost with the choice of an effective partner.

As a basic primer invoice financing is essentially the short term sale of your receivables, or ' AR’ that generates immediate cash flow and working capital for your company. Sounds good so far right? In certain cases it even eliminates all your credit and collections costs, although we must be frank and say that type of financing (turning over your credit decisions to another firm) isn’t our favorite, or recommended strategy. Clearly being able to obtain the benefits of this type of financing and being in total control of your own invoicing and collecting is the optimal solution.

The benefits of accounts receivable financing all come back to cash flow - business owners quickly realize that sales don’t equate to cash, and that can become an ongoing problem . Many entrepreneurs we meet advise they struggle with cash and working capital issues on a daily ( if not hourly !) basis, And given that they cannot obtain all, or the proper financing from their banks it seems logical that business accounts receivable financing is truly the only, and perhaps best, solution.

So, back to our main topic, which is understanding the cost of this type of financing! Canadian business needs to realize that if the lack of financing is stopping you from growing your business then the cost of new financing should probably not be your biggest worry.

Let's look at a real world type example. Take a look at your balance sheet. You probably have limited or minimal cash on hand and significant investment in receivables.

Let's use a firm with 1 million dollars in sales as an example. Lets assume you have some decent, or even great gross margins, or ' cost of sales '. Your overhead costs are fixed, and in control, and you are a profitable company. Since you haven’t any access to bank or traditional financing your net income is positive, but not growing.

If you can grow, or perhaps even double, your business by solving your cash flow problem then the business accounts receivable factoring cost is only associated with your additional growth that comes from accounts receivable financing .

Again, back to our example - your sales are 1 million, you have no financing, and factoring or invoice discounting will allow you to grow your sales to 2 million dollars. The cost of financing would probably be in the 40,000 to 50,000 dollar range - however, your overheads, or your fixed costs have stayed the same. Your profits, minus the factor cost can probably easily double.

Our example above focuses on the concept of opportunity cost, i.e. what you can do with capital by achieving more turnover and profits.

The actual financing cost of business accounts receivable factoring in Canada vary - they typically are between 1- 2% a month. 1.5 % tends to be the norm. Better pricing can be achieved based on the size of your facility, the relative quality of your receivables, as well as the type of firm you deal with when you enter into a receivables financing arrangement. And don’t forget that confidential account receivable finance is also available in many cases - allowing you to totally control your customer base and cash flows.

Speak to a trusted, credible and experienced Canadian business financing advisor so you can truly understand the real cost, and the lost opportunity issues we have provided as an example. It may well be your ultimate cash flow revelations and solution!






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

Equipment Financing Companies Canada : 3 Things You Must Know

Tweet

Equipment Lease Financing in Canada

Information on equipment lease financing in Canada, Critical information regarding financing assets for your business

Canadian business owners and financial mangers need to know a couple critical pieces of information when contemplating an equipment financing and leasing transaction in the Canadian marketplace. We tell clients that if you don’t have good info and insights into these three factor you are poorly equipped to enter into a lease financing strategy.





We can summarize those items as follows:

Know the type of lease you need – there are several types, and the wrong pick in this area can nullify the benefits you are seeking in a lease financing strategy

Focus in on what advantages of leasing are important to yourself and your firm – Not all advantages will usually apply to everyone

It’s not a perfect world, there might be disadvantages to lease financing in your particular case – Understand what those might be.


Let’s elaborate on those key points. First of all there are two types of leases in the Canadian marketplace – you can answer which one is best for yourself by simply asking the basic question – Do I want to ultimately own the equipment, or in fact do I simply want to use the equipment. There a big difference there that affects both the overall pricing of your transaction, and how it is structured financially on your books.

The two types of leases in technical terms are capital leases, and operating leases. In a capital lease transaction you make fixed payments over a period of time and then gain ownership of the equipment. The payments to the lessors cover the cost of the equipment and the interest or financing charges. Again, the bottom line is that you retain ownership at the end of the lease.

In an operating lease scenario you pay for the equipment and its use for a specified term, the most typical rate we encourage clients to enter into on an operating lease is 3 years. These types of leases have significant cash flow and balance sheet advantages and make sense when leasing items such as technology, i.e. computers.

Let’s focus in on critical factor # 2 – what leasing advantages are important to your firm. There are several very obvious ones which include:

Cash flow and working capital conservation

Higher loan to value financing – usually only a nominal down payment is required

Your other credit facilities remain untouched – we strongly recommend to clients that they match long term asset acquisition with a long term lease financing strategy, You don’t want to purchase assets with your revolving credit line or receivables financing facility

In 90% or more of lease financing deals the only collateral is the asset being financed
Your accountant will advise you that you have a number of tax, write off, and investment tax credit scenarios which may further maximize your transaction.


Let’s close off now and move to final critical item # 3 which we can simply start out by saying – It’s not a perfect world! No single financing strategy is beneficial for all firms. Some of the potential and that’s important, potential disadvantages are that leasing in some cases has a real or perceived higher cost. Also, if you are doing a sale lease back financing in some cases if your asset is below the sale price there might be a capital gain tax to pay. Although they aren’t ‘ disadvantages’ per se, you should also thoroughly understand insurance, install, purchase options, and any restrictive covenants that might come into play in a lease financing strategy .


Leasing continues to be one of the most important sources of long term working capital .Don’t over look it, but do clearly understand how our 3 factors can assist you in making an informed equipment financing decision.






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

Why You Should Utilize Asset Based Lenders for a Revolver Line Of Credit Facility

Tweet

Why An Asset Based Line of Credit Might Be Your Bank Alternative !

Information on why a line of credit known as a ‘ revolver ’ might be a solid business financing solution via non bank asset based lenders in Canada . How these facilities work and what they cost

Some Canadian business owners and financial managers aren't familiar with the term ' revolver line of credit ‘. So for clarity purposes it’s simply terminology for a business operating line of credit. It revolves, or goes up and down everyday, as your firm collects receivables, pays bills, buys inventory, makes loan payments, etc.

Naturally clients can be forgiven for asking '' What is the difference then for asking why asset based lenders offer a unique , and we think better revolving line of credit than perhaps their Canadian chartered bank can offer .

We're going to cover off the basics of a revolver line of credit via an asset based lending solution with a focus on ' why ' you should this type of business line of credit.

The reality is that asset based lenders are playing a more important role everyday in Canadian business - that’s simply because most business owners and financial managers agree that it is more challenging than every to meet their day to day financing needs with bank facilities . That is because banks place more focus on external collateral, operating results that meet their guidelines, and a lack of desire to finance items such as inventories, purchase orders, etc.

The key main reason why you should consider an asset based line of credit is simply that the firms that provide this type of financing specialize in exactly what you need - maximum financing for receivables, inventory, and equipment .

Very typical margining of these current assets in an asset based line of credit with a non bank is 90% of receivables, 50%or more for inventory, and full appraised value of equipment and other fixed assets. We have seen real examples where a revolver line of credit has tripled a firms borrowing power, even at better rates on occasion.

So clients start seeing very quickly why they should be utilizing this type of financing, they just don’t know with ' who ‘. There’s where it does get a little tricky, as firms offering this facility are less known than the banks, and are often independent finance firms of subsidiaries of U.S. banks that operate here in Canada. There is when its best to seek the services of a trusted, credible and experienced business financing advisor to match your needs with the right asset based financing solution.

Let’s summarize some key points that focus on the real issue we are talking about - why you should consider asset based lenders for your day to day operating needs.

First of all, size doesn’t matter in the asset based finance world. Facilities from 100k to many millions of dollars are available. We'll quickly add that some of Canada's largest corporations are financed by this method, we just don’t hear about it!

Other reasons why you should consider this type of Canadian business financing are as follows: you are in a turnaround situation, you can’t get equipment and inventory financing that you need to generate sales and profit. Other reasons include your growth - in some bank environments you are punished for growing too quickly, but asset based lenders raise your facility as you grow, with their only concern being the assets you have to cover the facility.

Make sense? We think it does, so speak to an expert business financing advisor on what the merits of a revolver line of credit are, and find out why asset based lenders may be your business finance savior in the current business financing environment.






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 Equipment Leasing - How To Get The Best Lease Deal!

Tweet

Strategies for Successful Equipment Financing

Information on Canadian equipment leasing finance . Achieving the best finance solution for an equipment loan requires knowledge of these key aspects of lease financing

As a Canadian business owner and financial manger you need a certain amount of skill and knowledge to successfully source and negotiate a Canadian equipment leasing strategy. Equipment financing in Canada can be simple or complicated – the business decisions you make around the financing and acquisition of your asset involves a number of factors which have to do with credit quality of your firm, the way in which you will account for the lease, as well as any business or legal considerations around the transaction.


From the viewpoint of your lessor we can probably safely say they are most interested in simply getting paid back, so the ability to present your firm as a reasonable credit risk will allow you to get the asset and amount you want approved, and, as what seems most important to many of our clients, you will get what we would like to call a ‘competitive rate and structure. You also want to know if you are making the right financing decision as opposed to considering an outright purchase or some type of term loan for your asset financing.

So at the end of the day you want to know what type of lease and benefits are available to your firm, and who is the best ‘lessor partner’ for this particular transaction.


We meet with many clients who spend countless hours, if not longer sometimes in talking to a large number of lease companies on any given transaction. What they don’t understand ( other than wasting their time ) is that lease companies in Canada are organized by asset and credit quality, and many lease firms are funded in different manners, and in some cases offer only one type of lease , which is not necessarily the lease financing you might need for your asset finance decision.

So how do you wade through all this clutter and noise? It might be proper to consider working with an expert who knows the Canadian lease industry, and is a trusted, credible and experienced advisor to your firm in this area.
When we meet with or get a call from clients who have been out in the market ‘ shopping ‘ for a lease it becomes very clear that they appear very un organized and have spent an inordinate amount of time .

Also, they are looking for ‘ all ‘ the ‘ benefits’ of lease financing in Canada, when in reality only a certain number , or even a limited number of those benefits might apply to their transaction . Countless firms recount stories of having paid too much for a lease or having focused on an option that ultimately had limited benefit to their firm.

Again, understand the market, or work with someone that does.
Your ultimate goal in a lease financing strategy in Canada is to ensure you have, at the start, outlined what makes sense for your firm regarding the lease structure and the appropriate partner. Firm you need to work with.


When you are soliciting lease pricing you should do that selectively with firms who are interested in your overall credit quality, asset type, and dollar size of your transaction. We tell clients to get a ‘market sense ‘of the type of lease financing that is available as the industry has the ability to use jargon that can be considered confusing to say the least!


One strategy you can use is to outline a basic lease financing request and solicit a number of bids – by clearly showing who you firm is, the asset you wish to finance, and the dollar value of the transaction, and the type of lease you require (there are two types) you can quickly eliminate a lot of wheat from the chaff!


In summary, understand what key benefits you want to achieve from a Canadian Equipment Leasing transaction get a sense of who can deliver on those options, and ensure you have a level playing field for lease firms you might want to work with.





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