Best Business Acquisition Financing to Buying A Business ?

How to Use Business Acquisition Financing to Buying A Business

When business owners and entrepreneurs make the decision to buy an existing business they need some solid info around how to finance the transaction . So what are in fact the best ways to execute your strategy on business purchase financing?

In many situations clients tell us they often have the ' inside track' on a business or company that would accept a good offer based on the current situation of the seller. There are of course various reasons for sellers wishing to divest of their business - these days succession and management buyouts are popular reasons.

Obviously there exists key reasons why buying an established company is a solid way to execute on your business plans . Most of those reasons are obvious:

Existing revenue and profits

Experienced management and personnel already in place

Elimination of start up risk

Etc. !


In many cases some seller financing may in fact prove to be critical in financing your deal. Previous owners remain in a subordinate position via whats known as a vendor take back, and often the skills an expertise of the seller are valuable in early stages of the takeover.

A debate sometimes exists, but most experts believe it is easier to arrange funding for an established business. When cash flow and sales are positive they play a key role in establishing the ability to repay business acquisition loans of various types. In many cases franchises are part of todays acquiring of businesses - they have brand and reputation already place.

The concept of valuation is key in purchasing a company . Higher valuations might in fact mean you have to finance goodwill when most lenders prefer asset financing solutions

We should point out that many businesses that are purchases are in some form of ' distress' . Here valuations are often attractive but the buyer must demonstrate confidence around ' the turnaround'. Valuations can be made through the buyers own expertise, or you can use the services of qualified business valuators.

What are the key issues in valuation and financing ? They include:

Quality of financials

Revenue trends

Cash flow and working capital positions ( Throwing off cash is better than using cash !)

When we work with clients we spend a lot of time ' normalizing' those financials to ensure the right assumptions and costs are in place.

Business acquisition finance can be facilitate through term loans from traditional and alternative sources, government loans, asset based loans, and cash flow loans.

Seek out and speak to a
trusted, credible and experienced Canadian business financing advisor with a track record of success in how to finance business acquisitions.





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

Click Here For 7 PARK AVENUE FINANCIAL website !





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

Make The Best Business Line Of Credit Work For Your Company

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A Business Tool For More Cash Flow

Asset based lending might just be the best business line of credit that your firm needs .

If you're looking for a financing mechanism that fills the gap in your cash flow needs we have a solution that's working for thousands of firms in Canada already !

And the surprise? Simply that many business owners and financial managers aren't aware of this solution!

After the 2008 financial recession many firms found it even more difficult to achieve proper financing for their business. In otherwords .. credit had dried up. Banks tightened up, some finance firms disappeared ( a good example : GE CAPITAL !) and many businesses and even whole industries found themselves ' out of favor '.

Asset based lending takes a deeper look - if your firm has assets it's financeable! This type of credit line

focuses solely on asset collateral - typically receivables, inventory, equipment, and yes, even real estate.

How does this unsecured credit line work ? Simply by having those above mentioned assets margined to a much greater per centage than you would typically get from a bank . In effect they are your ' borrowing base ' on an ongoing basis.

Asset based lenders often have great expertise in certain asset categories, namely inventory as an example. Asset based line of credit providers monitor your assets on a monthly basis based on your monthly financials . That typically will get you 90% margins on accounts receivable and anywhere from 30-70% on inventory. Often an updated appraisal on equipment and real estate will allow even more borrowing power on those two asset categories.

Once the ' ABL ' revolver credit line is up and running your borrowing power is virtually unlimited as your sales and business assets grow. A combination of regular reporting and good quality assets such as your a/r, etc will allow you to face even minor downturns such as a negative income time period . Many businesses lose money at certain times in their history .

So if you firm has a solid management team and good controls on your business you can expect to receive maximum financing from the asset based lending solution .

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success who can assist you with your overall cash flow needs.





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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


CLICK HERE FOR MORE INFO ON BUSINESS FINANCING AND CREDIT LINES ?





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

Quick Way To Solve Lack of Bank Financing ? Receivable Financing Companies

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Factoring Facilities - The Way Towards Unlocking To More Cash Flow

Receivable financing companies just might be the ' new and improved ' solution to your business cash flow challenge. Factoring companies are providing solutions that in many cases Canadian chartered banks are unable to provide based on their more severe credit requirements for borrowers.

Why then should a business owner of financial manager be looking at a receivable financing facility ? That's a typical question posed by business owners who sit down with our firm to discuss their finance challenges.

The simple reason is pretty basic -

accelerated business cash flow

. From the day you generate an invoice and make a sale your company is eligible for immediate cash. And the good news is that you can finance all your sales and invoices, or only partially draw on a basis that suits your needs. Most companies have their own cash flow cycle, including the seasonality of the industry they are in.

We have mentioned that in spite of accounts receivable financing rates ( they are higher than bank financing ) this type of corporate finance solution has become the de facto alternative to traditional business credit lines. More so for the small and medium sized business in Canada, also know as the ' SME ' sector. But don't be surprised when we tell you than many larger firms use a flavor of this method of finance also.

Why is being ' cash flow positive ' so important in today's biz world? Simply because competition is tougher than ever and your ability to enhance your reputation with suppliers and customers is critical. It gives your firm 'professional visibility '.

There are in fact

other forms of short term cash flow financing including sale leasebacks, financing sr&ed tax credits, short term working capital loans

based on solely your sales volume, etc . A/R factor financing collateralizes your receivables, but not other assets.

Business clients will always ask if there is an ' upper limit ' to the amount that factoring companies will provide against their sales. The answer is there is no upper funding limit! Your sales revenue becomes almost an automatic ATM machine!

If there is one solution that we recommend against all others for a receivable financing facility it's a ' Confidential ' facility . It allows you to bill and collect your own receivables and achieve all the benefits of this type of solution .

If you're focusing on almost daily ' cash flow survival ' it might be time to recognize the finance solution is right in front of you - A/R finance !

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success in business finance.







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

Click Here For 7 PARK AVENUE FINANCIAL website !

Steps To Commercial Business Financing Options

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Ending The ' No Bank Financing ' Conundrum

Business financing options are provided by a number of non bank specialized finance companies in Canada. They provide an array of corporate solutions , all of them different but still allowing you to achieve cash flow and working capital goals . They are in fact , the answer to .. you guessed it ' no bank financing' conundrums.

The challenge for business owners and financial managers is to identify and execute on who those sources are and what they can do for your company . Many companies, and industries in fact have specialize needs .

When you think of the right type of business financing for your company it's important to think of senior and junior ! What do we mean by that comment ? Simply that a senior lender will want all the security on your business, typically handled by a document called the G S A - General Security Agreement . It then becomes a challenge to source other types of cash flow and debt solutions which can't be monetized.

A good example of a senior lender is Canadian chartered banks. But when that source of capital isn't available many firms these days choose asset based lenders , allowing them to drawn on various assets of their business but with more flexibility.

In some cases your business might need a ' bridge loan' - they solve temporary capital shortages .. they are a ' bridge' to future refinancing of your business.

Leasing companies are one of those specialized asset lenders that financing both new and used equipment, even software. While many firms think they are eligible for VC or private equity financing in fact they are poor candidates for that type of financing .

Is there a bottom line? We think so , Simply that if you are looking for a commercial finance company for debt and medium or
short term financing options alternative non bank lenders are a great choice.


Seek and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success when looking for a non bank commercial finance company in Canada.







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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !





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

Receivable Financing Problems : Here's What Really Matters

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Creative Ways to Solve Working Capital Challenge : Steps to a Successful Receivable Financing Problems

Receivable financing problems grow out of the need for a businesses inability to grow cash flow as you run and grow your business. One strategy we recommend to clients is to grow cash flow and ' lose money'. That's not a trick statement of course, and when business owners understand several forms of receivable finance
via invoice factoring can solve their challenge they want to know more. Let's dig in!

A/R financing is a source of working capital - it's not debt or a loan per se. In technical terms it's the sale, or ongoing sale of your A/R generated out of your sales. That transaction is accomplished via a ' discount' basis, typically in the 1 to 2 per cent per month basis if you're on top of your collections. That's where ' the loss' comes in - it's a financing cost but at the same time has delivered all the cash flow you need. Suffice to say your business should be able to handle that 1 or 2 per cent drop in gross margins with the result being - Cash Flow!

Invoice factoring allows you to run and grow your business, sell more by taking on being orders and contracts, and also has the unique ability to allow you to negotiate solid supplier prices . Why ? Because you have the cash!!

This form of receivable finance is used by almost every industry in Canada . Even those Bay Street boys use it also - they apply a fancier name - Securitization.

What then are two major benefits of this method of Canadian business finance. It's simply the ability to get a cash advance on your sales and of course the quick turnaround- typically 24 hours! Bottom line - pretty well same day funding

Yes factoring is more expensive than Canadian chartered bank financing = that's the perception. But that must be balance against the hard reality that thousands of businesses do not qualify for all, or even some of the cash flow financing they need. And when you're carrying a/r 60=90 days even that bank credit line doesn't help.

The best form of account receivable cash flow financing? We call it Confidential A/R Finance - You bill and collect your own receivables, reaping the benefits and eliminating disclosure.



We're open enough to say that the majority of firms who in fact entertain receivable factoring can't get financing elsewhere, particularly at their bank. But don't forget also that many instances involve firms such as yours who are growing too quickly or who have landed that ' big contract' or order.

It's at this time that business owners appreciate the fact that their net worth, profitability, debt coverage, or operating losses aren't under the microscope anymore. And your firm is free to explore other methods of debt financing outside your A/R assets.



Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success in this key area of Canadian corporate finance.





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

Click Here For 7 PARK AVENUE FINANCIAL website !

Commercial Equipment Loans : Financing Tips That Work Like A Charm

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Secrets You Didn't Know About commercial equipment loans

When it comes to commercial loans we're quite sure our clients agree ' good enough' is not the best attitude to take when acquiring new assets or focusing on used equipment financing. In today's competitive arena its import to acquire the best equipment financing rates and terms.

The ability of Canadian firms to acquire new assets has typically always been a challenges for small and medium enterprises in Canada. Both the pricing as well as how you finance assets on your balance sheets are key points in business finance.

80% of Canadian businesses do it right . Stats show that they employ solid equipment lease strategies as part of their overall asset strategy.

In fact the leasing marketplace is very competitive these days, and that's a good thing for Canadian business owners and financial managers. Knowing how you can save money and avoid costly mistakes is key to running and growing your business. Mistakes in poor asset acquisition can be costly.

Let's look at the example of a company that wants to acquire computer equipment and software, a 'must' for pretty well every business these days. Knowing what term to select and what type of finance lease to utilize will ultimately  reflect how much you pay both on a monthly basis and in the long term . Don't forget - computers depreciate !

Leasing companies have ' credit boxes '. That is the way that they approve your transaction when it comes to size, pricing, additional collateral, down payments, admin fees, etc. Understanding the ' credit box' is key to asset financing success.

Don't let the  benefits  of leasing financing in Canada escape your firm. Billions of assets are finance annually - your competitors finance their assets.

Commercial Equipment Loans: It's Not as Difficult as You Think

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success.  We knew you wouldn't settle for second best !







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


Click Here For 7 PARK AVENUE FINANCIAL website !

A Quick Guide To The Government Business Loan In Canada

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Government Business Loans Solve Business Credit Challenges

How do government business loans work ? If we only had the proverbial nickel every time a 7 Park Avenue Financial client asked us that questions. You guessed it.. we'd be rich!

Due to the fact that both the government and the banks are involved in the government business loan process business owners and entrepreneurs can be forgiven for not understanding how this business financing scheme ( hint - it's not a ' scheme; !) works.

Sometimes the frustration with timing and the mechanics of the loan relate simply to the fact that business folks don't understand how the program works - and it's not complicated.

So let's be clear - the Canadian government small business loan ( some folks call it the ' SBL ' ) is a program that has been in existence for many years and is administered by Industry Canada. It's a great way to acquire long term and often start up capital for a business .

The three categories of assets you can finance are:

• Equipment

• Leaseholds

• Real Estate

In some cases the loan cap is one million dollars, we typically see our clients borrowing in the 200-350k range. So that's not necessarily small.

Key Point - many franchises are financed under the program! Govt loans can be used to buy a business - franchise or otherwise.

The program requires a minimum 10 per cent owner investment into the loan amount. The government guarantees the rest to the bank,

WHAT DO YOU NEED TO GET A GOVERNMENT LOAN APPROVED ?

• A business plan/cash flow

• An equipment list

• Good personal credit of the applicant - typically a 650 credit bureau score

Looking for a way to ' fast track' your loan?  Seek out and speak to a

trusted, credible and experienced Canadian business financing advisor with a track record of success.





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




Click Here For 7 PARK AVENUE FINANCIAL website!



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.