Government Small Business Loans : Canada

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Qualifications For The Federal Government Loan Program In Canada

Government Small Business Loan approval success depends on the quality of information that you as a business owner have on being successful for this popular government program administered by Industry Canada.

We're going to provide some key explanations and information around the ' SBL ' , the common name for the Govt Small Business Loan. And by the way, the loan amount is not that small for firms in the small and medium enterprise sector who are privately owned.

By the way, the actual name of Industry Canada's program is the ' CSBF ' ; the Canadian Small Business Financing program.

So forget all the acronyms, call it what you want, but if you're a smaller or newer business in Canada you might well want to consider utilizing the program - in recent times the govt has increased the amount that can be borrowed - up to a million dollars in certain situations. That's a large amount, but here at 7 Park Avenue Financial typical loan amounts for the program tend to range in the 350k range on average.

How To Access the Government Guaranteed Loan :

There are a number of key stages in completing a successful funding for your business, not the lease of which is being able to determine if you qualify .

Here are some key basics in the initial determination of qualifying

Actual or business revenues must be less than 5 Million dollars per annum

The owner or owners of the business must have a decent personal credit history - typically this means a credit score in the 650 range - Safe to say that since it is a federal program your personal tax filings should be up to date - Bottom line - no tax arrears

Understand what can be financed under the program - These loans are not cash or working capital loans - The loan is used to finance 2 key asset categories - equipment and leaseholds


So our point... simply call it whatever you want, but consider using the program! And by the way, whats so ' SMALL ' about 1/2 Million dollars. That’s the formal cap on the program, although most financings are done in the 350k range. Again, it’s probably just us, but that’s not small. Everything’s relative we guess.

Let’s examine the stages of getting a completed funding under the program. Stage one is of course determining if you qualify. Some basic guidelines are as follows - your first must have revenues, or projected revenues under 5 million dollars. We say ‘projected ' because thousands of firms financed under the program are in fact start ups who might clearly not be able to achieve this level of financing outside the program.

Owners of the business must have a respectable personal credit history and be up to date in their personal tax filings. Doesn’t it make sense that you might not get a government loan if you have tax arrears? We certainly think so.

Documentation for the Small Business Loan

It might be easy to feel overwhelmed on the documentation required for the loan - that should not necessarily be the case - You should have a business plan or executive summary of the business, one that includes financial projections - Additional back up info would include your personal net worth statement

It might come as a surprise to many business people that no interaction with the government is required under the program . That is because Industry Canada works with your local bank who adjudicates applications for the loan .

At 7 Park Avenue Financial many clients searching for govt guaranteed loans tell us they can't find bankers who are familiar or comfortable with the program

Recommendation :

Speak to a trusted Canadian business financing advisor with a track record of business finance success in the program

Presenting Your SBL Loan Package:

Be prepared to discuss typical questions that might come up under any loan for business - that includes use of proceeds of the loan , your relevant business background and experience, etc.

Its simply a case of presenting your package in person, and answering typical question that might come up on your business, the use of the proceeds, and your own business background and experience . Here again a trusted business advisor can do this for you and with you.

Approval Under Govt Loans:

All invoices you submit under the program are paid by the bank and are paid up to 90% of the face amount of the invoice - Your contribution to the program is the balance of 10%. That ten per cent is your ' equity ' component of the program. The govt, aka Industry Canada guarantees the bank the majority of the loan .

Hundreds of millions of dollars of loans are advanced annually under the program, for pretty well ever industry in Canada . By the way, franchises are a huge component of the program in our experience.


If you are looking to take advantage of the solid rates, terms, and flexibility of the Govt Guaranteed Loan speak to a business financing expert who can help you navigate the program in the lease amount of time - allowing you to start, run, or grow your business.


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

How Do You Finance A Business Purchase ?

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Sources Of Finance For Buying A Company In Canada

Buying a business in Canada is the goal of many entrepreneurs in Canada . The financing of that purchase requires some specialized skills when it comes to the strategies involved in acquiring an existing family business, or in some cases capitalizing on the unfortunate circumstances of firms that might be challenged in some manner. In some cases it's a solid way , versus organic growth, to grow revenues and profits via a merger/acquisition type scenario.


We at 7 Park Avenue Financial leave it up to our clients to identify the business opportunity they wish to explore from a purchase perspective. Our focus is on what comes next - ensuring you have access to solid a time worn financing strategies that will work for your success in a business acquisition.


Financing a Business Purchase In Canada

One part of the business finance puzzle that is often overlooked is known as the VTB .. AKA the ' vendor take back, if only for the reason that it minimizes the financing your are required to generate to close the transaction. That is not the only reason though! Another term for this strategy by the way is ' owner financing '. Anyway you look at it VTB's are a solid strategy that make it easier to access the other types of financing that you will need to complete the loan , which typically are term loans and business revolving credit lines.

We forgive business people for thinking that ' the bank ' is the only way to acquire financing to purchase a business. That's a logical thought, but of course there are a number of other options, some of them alternative in nature . However caution is required if you are unprepared to understand how a bank looks at financing - which can in some cases be an immediate road block.

Early on in the business acquisition cycle you must also agree with the seller as to whether the sale will be a purchase sale or an asset sale . This is a key accounting and legal type issue which is a separate subject in an of itself .

It should be noted that in the SME COMMERCIAL FINANCE area it is difficult to finance a ' share sale ' given that shares in small private companies are not liquid . So if financing is required in your purchase most owners are encouraged to choose the 'asset sale ' scenario. Naturally larger companies , public companies etc have a number of ways to finance purchases - they have much more access to capital . Those companies often consider share sales, and also are looking at numerous tax minimization strategies.

In looking at assets of the company you are focused on buying it's key to determine the value of those assets . In many cases in modern times some of those assets might even be ' intangible ', and might include patents, contracts, software, etc.
Tangible hard assets, typically the ' fixed assets ' on the balance sheet can easily be valued by appraisals from reliable and experienced third parties.


Goodwill is the excess dollar amount you're paying on top of the assets. Goodwill is typically difficult to finance, which is why our owner financing/vendor take back strategy is sometimes a good place to start. The sellers financing, often referred to as ' holding the note ‘can allow you to complete a purchase satisfactory to all parties.


Both banks and non bank commercial finance lenders view vendor take backs very positively. Since the seller of the business has a vested interest in making the purchase also successful you often can get very favorable, in fact below market financing rates from the owner or owners of the company being acquired.

Many smaller businesses in Canada, including franchises of new and existing locations can be financed with the assistance of the Canada Government Small Business Loan . The government guarantees a large part of the loan to your bank as long as you meet minimum requirements, which we at 7 Park Avenue Financial view as very reasonable .Owner financing can also be a part of the gov't loan . Many small and medium sized enterprises can utilize the Small Business Loan govt program to acquire a business. It works, as we have proved time and time again at 7 Park Avenue Financial.



A typical structure for financing a purchase when you’re buying a business in Canada is the down payment, debt financing, and the vendor take back/owner financing. This three piece solution to buying a company can also be complemented with a number of ' Alternative Finance ' strategies that might include:

A/R Financing

Non Bank Credit Lines

Equipment Finance Leases

Sale Leaseback strategies

Inventory Finance

Purchase Order Finance

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success when you're looking for assistance in structuring the best deal and financing for your business purchase.






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

How Does Asset Based Lending Work ?

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Why Use Asset Based Lending ? It Works

The asset based credit line is a key part of alternative financing options available to Canadian businesses. As simple as the solution is ( i.e combining all your business assets into one borrowing facility ) it just might be the perfect solution for businesses that can't access any, or all, of the business credit they need in Canada.

It is interesting to note that this revolving facility is perfect for new, growing, and even large mature corporations , many of whom use the facility now days. When it comes to SME COMMERCIAL FINANCE needs business people would be surprised as to how many firms use this type of business finance.

There's probably no agreement on actually how tight business credit is or isn't in Canada - that debate constantly rages on . We continually read in both the GLOBE & MAIL and FINANCIAL POST that Canada is awash in capital, but here at 7 Park Avenue Financial we encounter clients with borrowing needs everyday, many of them dissatisfied with traditional access to business credit.


Naturally it goes without saying that Canada, despite the complaints of the Canadian business owner and financial manager, is probably in better shape than many other countries.

Asset based financing can be used for a business credit line, as we have noted, or also as a financing vehicle for purchasing a business or competitive business. It used the leverage in your assets to monetize your cash flow needs .

The ability of a business to fund both it's operations as well as growth is key to any level of business success. When it comes to banks and other more ' traditional ' lenders thousands of businesses can't meet the credit quality criteria that is required by these lenders.

So why has asset based lending gained such a dominant foot hold in the Canadian business landscape. While chartered banks have great rates and virtually unlimited amount of capital to lend many companies don't have the balance sheets, profits, and outside collateral often demanded by our banks, who for all the right reasons are more conservative in their lending practices.

So for that reason alone thousands of firms have gravitated to asset based finance solutions that focus on your assets and sales levels. As an interesting aside asset based lenders provide close to half of all of the business credit lines in the U.S. - So it is not hard to see why ' ABL ' facilities are growing in Canada - where relatively speaking it's a newer business finance solution.


So why consider ABL financing ? Simply if your firm can't meet traditional lending criteria and you still have assets and sales it allows you to harness new borrowing power .


Yes of course those same assets are being margined, just as your bank would have, but there are two major differences, we can call them the core of our ' naked truth ‘.



How Does Asset Based Financing Work ?


First of all your borrowing levels are raised significantly because your assets are margined at a higher rate , and the inventory component of margining is very aggressive, where in some case a bank facility might not even address that asset at all, or at lease only nominally .

Asset based credit lines also can include your equipment and real estate, if applicable, as part of your new borrowing power - bottom line : increasing borrowing power of your company .

And what about that 2nd difference or truth? It's a key point, in that the focus on ABL approval is not cash flow coverage and covenants, its just mainly about assets, which has great appeal to Canadian borrowers, especially those that struggle to meet those cash flow covenants imposed by traditional lenders.


Quite often we see tremendous flexibility in the size of such a facility, because in many cases business has peaks and valleys and bulges in financing requirements.

We don't consider it a drawback necessarily, but most asset based business lines of credit have your reporting on your monthly levels of a/r, inventory, sales, etc, allowing the ABL lender to monitor and justify your borrowing needs. In many cases we have seen that it allows companies to understand and run their business more successfully.

That then is some of the naked truth in this asset credit line .It's a part of the new reality of Canadian business financing that you should take a serious look at, especially if things are not working well now .

Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success - Get the stripped down truth on the Asset Based Lending advantage .

How To Finance A Business In Canada

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Traditional and Alternative Debt Financing Solutions To Run - Grow - Or Start Your Company In Canada

How to finance a company in Canada - It is not secret that the ability to start a business, fund it for operations, and , as importantly , grow the company is a key challenge facing business owners, financial mgrs, and start up entrepreneurs.

There are basically only 3 ways to finance your company -

Equity


Debt


Cash Flow Financing Assets/Sales

Lets take a look at some key basics surrounding how these solutions can be accessed , and in some cases ' cobbled together' to identify the right source of business capital for your firm. Our comments will not focus on the ' equity ' component of your business ; private and public equity is a subject for another day .

In business the old adage ' timing is everything' is critical . Naturally financing your business in a healthy economy when your company is firing on all cylinders is much easier than a faltering economy or with your company experiencing financing challenges. The right amount of debt and cash flow is often the life blood of any firm . Companies large and small go out of business due to their inability to get the proper mix of financing in place.


Banks and commercial finance companies are of course your ' financial partner ' when it comes to generating financial support for your firm. As companies growth they need additional cash flow financing to support sales, a/r and inventory levels, etc. It should not, but it might ! come as a surprise to many that companies can fail when they grow too quickly.

As we noted the main providers of business financing in Canada are our chartered banks and commercial finance firms . Some of these commercial finance firms offer traditional financing - many of them are 'bank alternatives ' ,providing capital to firms who cannot access bank credit.

Debt And Cash Flow Financing Options in Canada

Banks are often the first ' go to ' when it comes to business looking to access financing solutions in Canada. When companies have the right amount of owner equity, corporate and personal assets and collateral the rates, terms flexibility, and amount of capital is virtually unlimited.

Unfortunately the banking system in Canada does not support the many thousands of firms who have basic or specialized needs and can't qualify under bank criteria. These companies just don't have the ' secondary repayment sources' and outside the business collateral often required by the SME COMMERCIAL FINANCING sector in Canada.

So what then are the options to finance a company . The options are asset based lenders and other ' alternative finance ' firms that provide

Non bank lines of credit,

A/R financing,

Inventory financing,

Purchase order financing

Tax credit finance solutions.

Sale Leaseback financing

Short Term Working Capital Loans

And it is safe to say that these firms do not require the same qualifications required by banks . It's a bit of an over simplification but the two main requirements for alternative financing are

Sales


Business Assets


Equipment financing, aka leasing your key assets is also a very effective method of financing your firm. It also relieves the larger cash outlays your business needs when it acquires assets.


Start up and small businesses have access to the Government SBL loan program - This is a government guaranteed loan which has great rates, terms and structures when it comes to acquire assets and even financing leaseholds and real estate. Many franchises in Canada, as well as business acquisitions in the SME sector are financed by the Industry Canada govt loan program .As stated the majority of the loan is guaranteed to the bank by the Federal government. A partner you might not have known you had !


Cash flow financing, or ' Asset Monetization ' can be accomplished by utilizing receivable financing, inventory finance, and even selling your tax credits such as those under the SR&ED program . The SR&ED program provides billions of dollars in non refundable credits and these credits are easily financed.


One of the best methods of cash flow financing comes your a partner you know only too well - yourself and your firm. By managing your assets such as inventory and A/R you can generate internal cash flow through your business operations.


Speak to a trusted, credible and experienced Canadian business financing advisor who has a track record of business finance success on those debt and cash flow financing options when it comes to how to finance a 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


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 Financing Costs For Funding Solutions In Canada

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Looking for The Best Rates & Financing To Run and Grow Your Business ?

Business funding and the costs and ' rates ' around financing a company are always top of mind for business owners and their financial managers in Canada. It is safe to say that stability around financing options and solutions that are reliable play as much a key factor as the cost of that financing.

When it comes to financing a company it's a combination of current needs as well as the sometimes overlooked intermediate and long term needs of the firm. That becomes even more important if a firm has ambitious growth and expansion plans.

What Are The Finance Needs Of A Company ?

There are numerous ways to ensure your firm can access those shorter term needs to avoid the proverbial ' cash crunch '. And, as we noted cost always plays a key role.

Although it might not be immediately obvious to all business folks, suppliers are in fact a form of short term financing . There are benefits, risks, and costs associated with vendor/supplier finance.


Let's use the example of a supplier who offers your firm payment terms of 2/20 net 60. That of course means that you can pay them in 60 days, or takes a 2% discount if you pay in 20 days. If you use a sample $ 10,000.00 invoice the arithmetic around that transaction will tell you the opportunity cost of not taking that discount is almost 19%!

Opportunity cost is a solid way of looking at financing costs - It's very simply the cost associated with passing up an opportunity when making a financial decision.

The lowest costs of business financing in Canada is financing via our Canadian chartered banks . Interest rates for borrowers, consumers and businesses alike are the lowest they have every been . So what is the challenge ? Simply that bank facilities are often a challenge for a firm to get approved , so whether it's

Unsecured Cash flow loans


Business credit lines


Installment loans


Term loans

our Canadian banks offer up a plethora of financing options! For those companies that can't access some or all of the bank credit they need it is critical owners / financial mgr's understand that numerous alternative business finance solutions are available . Even firms that have had their loans called are eligible for alternative finance solutions that can save their business and put it back on the right financial footing. Special loan designation is not fun !

As stated a number of non bank commercial finance firms provide business funding solutions, albeit at a higher rate than the banks. With this group of lenders more emphasis is placed on business assets and sales versus the bank requirements of profits, clean balance sheets, and personal guarantees and outside collateral.
Alternative finance companies simply have a different way of looking at business credit, and of course they are not funded with customer deposits, as are our banks.


Receivable financing in Canada is more common place everyday. Many misconceptions exist around financing costs associated with ' factoring ‘. It's also important to remember that A/R finance allows you avoid long term debt and giving up equity - those are important considerations. If you understand the miscellaneous charges, the advance rate, and the discount rate on Receivable Finance in Canada you may well embrace the benefits, which are:


Immediate cash flow

Bulge financing

Growth potential

Strengthened balance sheet

Our recommended form of receivable financing for clients of 7 Park Avenue Financial is Confidential Receivable Financing, allowing firms to bill and collect their own receivables as well as achieving all the benefits of non bank a/r finance. This solution is also commonly bundled into a non bank business line of credit which combines the borrowing power of your a/r, inventory, and even equipment you own.

Short term working capital loans are also very popular in recent years - Typical terms are 1-2 years maximum, and many firms can qualify for a loan amount based on 10-20 per cent of your annual sales .


Leasing/equipment financing in Canada offers competitive rates for all asset classes commensurate with your asset class and overall credit quality. The industry has a solution for every asset, and rates from 4-24% cover the spectrum of asset financing in Canada. While you will probably pay more for leasing than a bank term loan the appeal is staggered cash outlays, obsolescence protection and fewer financial covenants /restrictions.


So our bottom line today? Simply that each category of financing required comes with a different measure of cost, risk, liquidity and in many cases, restrictions. Speak to a trusted, credible and experienced Canadian business financing advisor who has a track record of business finance success , who can assist you with the cost of finance for your business.


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 Credit Solutions For Bank & Alternative Financing Needs

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Alternative Financing Needs Outside of Canadian Bank Business Credit

Business credit access via banking and alternative finance solutions often have business owners and their financial managers searching for the optimal finance solutions for their ongoing funding and growth needs . These solutions come in the form of business credit lines, term loans ( longer in nature - typically 2-5 years ), and short term working capital loans . 7 Park Avenue Financial clients tell us it is often somewhat of a nightmare, or at minimum, a negative experience , when it comes to searching for the right amount of capital.

How then can the business owner be successful in achieving the right financial solution for their company , while at the same time eliminating that 'negative ' vibe that comes from initial failures in securing capital.

Because the majority of business people consider ' the bank ' as the premier lender in Canada one piece of guidance we can provide is to choose the right banker, not the bank per se. An experienced commercial banker can provide you with the financial and business guidance to solve almost any financial challenge.

To gain confidence of a commercial bank , or even a business financing advisor the business owner / financial mgr must be able to properly present their current financial condition in the form of cash flow , business projections, and a clear overview of your business assets and financial potential . By the way a good business plan can pretty well do all that .

Good information such as noted above will give your lender or advisor a solid idea of incoming and outgoing cash - and will often suggest how your firm can best ' bridge the gap '.

Many business owners find the whole issue of personal guarantees a major problem in their financial decisions around business credit. Of course the majority of banks almost mandate personal guarantees, while at the same time mandating outside collateral . While alternative non bank business lenders will often request guarantees it is safe to say less emphasis is placed on that owner ' promise to pay'.

Also it is important to know that guarantees can be negotiated in many situations- they can be limited or in rarer instances waived - although in general these are exceptions, not the norm. The bottom line on guarantees is that your personal assets and credit history are a large part of traditional bank lending . In certain times in the economic cycle banks pull in the reins on business credit - you therefore need to know where the banks and your particular industry are in the credit cycle.

While the need to cultivate a positive relationship with a lender is important it's key to note that other 3rd party professionals such as lawyers, accountants, and credible business financing advisors can also steer you to the right lender or financial solution. Those introductions can be worth their weight in gold when it comes to establishing a relationship with a bank or commercial lender.


Key Criteria For Achieving Business Lending

Business people often ask us what lenders are looking for when it comes to accessing loans or business credit lines . We can summarize that pretty concisely - depth and experience of management, a good business model, and the right amount of debt and equity in their business. In the new economy companies can be either
asset intensive or service based - it's all about successfully marketing your service of product.


A final note on bank loans in Canada? Unlike the U.S. which has hundreds, even thousands of different banks and even more independent non bank finance firms Canada's banking system is smaller. Clients who are bankable often focus on ' rates ' - in our opinion the rates will vary no more than some basis points from bank to bank.


Your focus should be on the banker, and the structure, terms, and guarantees surrounding your bank loans or credit lines. That saving of a couple basis points will be non existent in your mind when you get locked into a structure or guarantee or ratio and covenant scenario that you can't get out of.

Non Bank Alternative Financial Solutions

Traditional finance solutions provide almost unlimited capital to a business that is profitable , has good cash flow, and is growing . Many firms don't necessarily meet all those criteria , so it's important to know that a number of key alternative financing solutions are available to run, grow, or even save your business.

These asset based lenders and provide :

Non Bank Business Credit Lines

Sale leaseback Solutions

Tax Credit Financing ( SR&ED )

Short Term Working Capital

Purchase Order Financing


Can you avoid business credit nightmares in Canadian banking? We sure think so... consider talking to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success on achieving some of the best business banking and alternative finance solutions 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


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

Looking For A Solution To Business Cash Flow Problems ? Solved !

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Business Cash Flow & Working Capital Solutions

Business cash flow problems are encountered at numerous stages of growth in a company's existence . The good news that numerous solutions, both ' traditional ' and ' alternative' are available to fix the problem and set your company back on the right course.

One solution to the working capital conundrum is of course to stop growing ! That's a tough one for any business owner,financial mgr, or entrepreneur to accept . If they did that though they would not need to maintain a higher level of inventory, investment in accounts receivable, or to purchase new equipment/software , etc. It then makes sense that financing solutions around those asset categories we must mentioned might just be the answer you're looking for, right?


In some cases firms might find themselves in a crisis or turnaround situation - it is very difficult to grow and expand your company when you're in the throes of daily financial type issues that deter owners and mgmt from moving forward with growth plans. Quite often these situations are accompanied by pressure from secured lenders , banks, suppliers, etc. Those situations are never comfortable.

Many firms that are growing to quickly will often find that costs and other finance issues are being masked or hidden due to the apparent success of sales. But higher sales can't hide financial flaws forever.

Obviously those sales also create the need for more working capital and the required investments in those current assets on the balance sheet - a/r , inventory, etc. As we said stopping the growth frees up cash flow and some of those creditor issues. Efficiencies around collecting your a/r faster, managing better inventory turns , etc always create more cash flow . So it shouldn't always be about volume - that old adage ' We'll make it up on volume ' somehow seems to never work!

In some cases raising prices to increase cash flow might be considered , but that's rarely the focus of many business owners.


We think you can see the point, in that the optimal solution is to ensure your cash flow / working capital availability must be measured and managed around sales growth


Many businesses in Canada, (perhaps not tech type business) would be very happy with a ten percent year over year sales growth. Let's say you were focused on growing at 25% this year, a huge increase by any measure. However, profits and cash flow and working capital don't move lock step with those sales.

What then are the actual financing solutions to those changes in your current assets in the sales growth strategy. Traditional solutions such as bank financing for business lines of credit will work - Firms that cannot access any or all the bank credit they need should consider alternative financing solutions such as asset based business credit lines. These 2 types of business credit facilities allow you to better finance and manage extending credit to your clients.

No one solution is applicable to every company in every industry - so the ability to access financing assistance from an experienced 3rd party is key .

Solutions For Cash Flow Problems In Canada:

ASSET BASED LENDING

RECEIVABLE FINANCING/FACTORING

WORKING CAPITAL TERM LOANS

SHORT TERM WORKING CAPITAL LINES

PURCHASE ORDER FINANCING

INVENTORY FINANCE

TAX CREDIT FUNDING ( SR&ED LOANS )



Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist you in the need for proper business working capital and cash flow solutions that match your company needs.


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

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

Stan Prokop