Questions On The Best Business Working Capital Loan ?

Get Rid Of Your Cash Flow Challenge Once and for all !

What is the best small business working capital loan for my business ? We get that question a lot and many smaller and even medium sized firms look for solutions to their cash flow challenge ?
.

Unfortunately the reality is that many smaller firms don't have the financing alternatives of the big guys. Many firms who sell on credit use the concept of either bank lines of credit or alternative forms of financing such as A/R factoring. These enhance balance sheet and cash flow liquidity .

These are a bit more sophisticated forms of financing, not totally out of reach for everyone, but in some cases not the sort of finance that a firm might need. Ask any business owner and you'll here it's an effort to get a bank credit line, let alone increase it.

Enter short term working capital   loans, which have become hugely popular. They convert sales into working capital . albeit at a higher cost than banks . It's simply a form of using your sales revenue as cash based on historical sales. They are typically short term loans with a year duration, and have very flexible repayment arrangements based on an analysis of your cash coming in.

As we have noted smaller firms aren't typically able to enter into long term loan arrangements - they have lower costs but come with stringent credit criteria.

If used on a regular basis the process generates ongoing working capital and relieves the day to day stress of managing cash. In some cases we can make the case that smaller firms have more flexibility in setting up short term working capital facilities. The facility can be used on a one time basis, or periodically - perhaps covering seasonality of cash in your business.

This type of loan can be set up in a very short period of time at at extremely low or no set up cost.

The Best Reason To Utilize A Short Term Business Working Capital Loan ?

Simply that business cash and liquidity are top of mind for every owner or business manager . Seek a
trusted, credible and experienced Canadian business financing advisor with a track record of success to assist you in this solid method of cash flow financing your small or medium sized business. You’ll be cash flow positive within a week !






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

Asset Based Finance Works Like A Charm

How to Use 'ABL' Asset Based Financing For Cash Flow Challenges

What is asset based finance ? That's a common question we bet from clients seeking basic understanding around asset based financing - they have heard the term, and also that it pretty well ranks # 2 , second only to traditional bank type financing.

Having an advantage in business is always good - and ' ABL ' (
asset based lending ) is fast becoming a financing of choice for Canadian business owners and financial mgrs.

ABL tries hard, and when it comes to provide commercial business credit lines that are essential to running and growing a business it's all about your assets and your sales growth. 

You use the value of your working capital assets to generate borrowing capability.. on an ongoing basis.

This type of finance doesn't rely on all the ratios and formulas that come with our good friends in Canadian chartered bank commercial lending. It's in fact your company that determines your borrowing ability based on things like receivables and inventory , and that sales growth we mentioned. As sales grow so can your credit line - pretty well automatically.

Asset based credit lines tend to be there in good times and bad - many companies that are in a bit of a downturn or restructuring should also consider this type of credit line. So you business can be in hyper growth and still get access to the business credit you need.

Many companies that use this type of financing tell us that their access to credit lines has in some cases even doubled or tripled . It's pretty well 99% of the time a larger borrowing facility that you could achieve elsewhere. Many commercial lenders in ABL have a lot of industry experience in various segments of the economy.

We can't fail to mention that in some cases your bank might consider an asset based financing ABL, but it's somewhat ironic that these businesses operate within the Cdn banks and compete with bank commercial lenders.

The Asset Based Finance Plan to More Cash Flow

Typical ratios of borrowing capability are 90% of receivables and 50% or more on inventory . Don't forget also that fixed assets and even real estate can be thrown into that formula!! The cost of financing in ABL is a wide range, and depends on your facility size, overall credit profile, etc. In some cases it can be very competitive to bank rates !

From your businesses perspective you must have the ability to report regularly , at least monthly on your receivables , inventory , sales growth , etc . That's because the collateral for your credit facility are those assets and sales.

Canadian business owners should check out this newer form of business financing . 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.

Stan Prokop

How To Get Financing For A Business

Why Your Business Financing is Missing the Mark (And How You Can Fix It)

More Cash Flow With Asset Based Lending

How to get financing for a business ? That's a question that comes up all the time with our clients, and they want solutions now, not down the road! One ' size fits all' solution is asset based lending . These 'ABL' techniques and solutions could provide all the financing your firm needs in today's compeitive environment.

Business owners and financial mgr's are looking for finance that grows with their business. As it became difficult to get all the financing they needed after 2008's recession many business owners investigated the ABL solution.

Typically, ( but not always ) asset based finance is non bank in nature - it's offered by specialized commercial finance co's. It helps businesses access more working capital and cash flow - typically "Job 1 " for any business.

If your company has long term debt , and is looking to avoid taking on more debt, payables are rising, and you're waiting long to collect receivables asset finance is a very logical solutions. Ironically many business owners and financial managers in some cases haven't heard of this type of
business financing .

In the ' old days ' ( we remember them well ) abl was often touted as a financing of last resort. No longer!! Using it can grow your business, expand into new markets, buy a competitor, and oh yes, just survive day to day!

In it's purest sense asset based lending is often just a revolving line of credit that allows you to borrow against all, repeat ' all ' of your assets. Those typical asset categories include receivables, inventory and fixed assets.. even real estate if your company occupies and owns it's own premises.

THE ABL DIFFERENCE ?

Simple - You can borrow significantly, on an ongoing basis, against those assets . Smaller ABL facilities tend to be in the 250k range, but they can easily run into the millions. Many large corporations use ABL also by the way!

By now you may have picked up on the fact that as your business grows you can borrow more on an ongoing basis, as your assets have grown also - with virtually no upper limit.

While Canadian chartered banks focus on ratios, covenants, personal guarantees and high net worth the asset finance solution focuses.. you guessed it.. mostly on your business assets.

ABL comes in different flavors and can be specifically based or full service against all assets . That allows you to not postpone business success! Can you afford not to access this solution ?

Speak to a trusted, credible and experienced Canadian business financing advisor with a track record
of success on achieving benefits of ABL 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 !





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 Financing Working Capital? And Why Should You Care?

Financing Working Capital for Better and Faster More Cash Flow

Financing working capital needs for Canadian business owners requires some ' real world ' info on the capital you need to finance day to day operations . Your competitors might well be using some strategies you might not even be aware of .

Business owners and financial managers constantly try to avoid the ' liquidity crisis' that can cripple a business . As challenging as it might be for non financial folks to understand different ratios and the structure of their balance sheet those type of issues must be understood and dealt with. That allows you to have ' predictable cash flow '

How does the financial mgr of a business address cash flow, and what is a reasonable working capital loan interest rate ? Answers are easier than you think - things like speeding up collection of your receivables, managing payables and supplier relations carefully, and ensuring you don't have excessive long term debt .

Finally you have understand how you can ' monetize ' your balance sheet to deliver on financing working capital needs. There are a number of ways finance folks have of explaining ' cash flow ' ; a common one is current ratio, simply the relationship between your short term liquidity and your short term obligations;

The reality though? Receivables can be slow to collect and inventories can sometimes turn slowly . If your sales are going up and you are on top of collections and payables your have real operating cash flow.

How then do you monetize the balance sheet - that's what our clients wan to know! They aren't looking for classroom lectures on ratios !

So those solutions ? They are more thank most business owners and financial managers might think. They include:

Traditional bank financing

A/R finance

Asset based lines of credit

Tax Credit Financing ( Typically SR&ED credits )

Sale leasebacks

Inventory financing

Short term working capital loans

So our bottom line? Simply that staying focused on turning over your current assets and financing them properly will accelerate your cash flow and provide the solution for your working capital needs.

It's critical to monetize your balance sheet in the right way, understanding the costs of these solutions, as well as how they work on a day to day basis.

Speak to a trusted, credible and experienced Canadian business financing advisor and has a track record of success.

Don't underestimate the need to address these business financing
issues today.







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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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

Five Working Capital Loan Hacks You Need to Know Now

5 Tips to Help You Find the Best Working Capital Loan Company

A business working capital loan comes in more shapes and sizes that you might think !  We're the first to admit there are no guarantees in business, let alone life, but there are some real world proven methods of achieving  cash flow solutions that work. So are you ready to apply for a working capital loan - we've got some solid solutions.

Most of clients are quick to ask about the working capital loan interest rate situation. The reality is that loan rates vary , depending on key factors such as the size of the loan and  the overall credit quality and risk parameters.

Strategy 1 - While not optimal you might consider the sale of fixed assets that your company might no longer be using in day to day operations . These would be assets not critical to your business , but in fact might be unproductive in the scheme of things.

Naturally you need to make sure you have bank permission to dispose of assets in case there are security agreements or liens in place. In some cases you might want to consider replacing assets with ones that are cheaper and more productive and less costly to maintain.

Strategy 2 - The Sale Leaseback . This is of course the opposite of buying new assets, You own the asset in question, its free and clear - you just refinance it , typically through a lease financing company  . In some cases you might want , or need to get an appraisal  to ensure you get proper value for the asset.

Strategy 3 - Inventory financing . That is often a challenge for business owners and financial managers given their bank arrangements often do not cover inventory finance. It's a specialized asset financing and is often part  of a non bank asset based lending facility . Asset based lenders like to finance inventory!

Strategy 4 - Other assets . Many businesses often have hidden assets such as tax credits , patents,  etc - They can often be monetized for cash flow

Strategy 5 - Monetize your receivables and sales if you don't have bank credit in place . Quite frankly that's our most recommended and utilized finance strategy. You don't take on debt, your cash flow grows with your sales. Using our recommended CONFIDENTIAL RECEIVABLE FINANCE solution you bill and collect your own receivables and gain cash immediately on making the sale. Quite likely your competitors might already be using this type of financing!

Summary : Those are 5 recommended business working capital loan solutions . Are they guaranteed ? Not always. Will one or some of them work for your firm. Most likely yes!

Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success who can assist you in evaluating options.

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