Our blog highlights Canadian Business Financing solutions via receivable finance , equipment finance, working capital financing, asset based lending, business acquisition financing,franchise finance, and tax credit monetization via SRED and Film Tax Credits. Our goal is to educate and assist Canadian businesses with their financing needs. You Are Looking For Canadian Business Financing! Welcome to 7 Park Avenue Financial Call Now ! - Direct Line - 416 319 5769
WELCOME !
In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.
Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.
Thursday, September 17, 2015
Not Getting All The Lease Equipment Financing For Business You Need? Financing Loans Made Simple!
Not Getting Your Share ?
Rumour has it you aren't getting your share of the amount of equipment business financing enjoyed by your competitors and others. Let's demonstrate how finance loans can be addressed in a time line that makes sense for your firm, with the rates, structures and terms that your competitors already enjoy.
We don't think we have met any business owner recently who doesn't feel that the traditional route or bank borrowing no longer makes sense for their asset acquisition needs. We don't have to explain the benefits of dealing with a specialist in any industry, so the firms that offer lease financing in Canada is where you will find financing products that work for you.
We also don't need to mention of course that if your firm is a start up, smaller in size, or perhaps going through some challenges... well... guess what - you are still a 100% candidate for lease and financing loans.
Many owners and managers searching for equipment financing for their business needs are under the pre-conception that certain assets can't be financed. That's where you ability to quickly focus in on a specialized firm that provides business lease solutions for your acquisition - and that includes computers, office equipment, plant and machinery assets, vehicles, and even intangibles such as software!
We are always intrigued by the reasons business owners offer up for leasing consideration - however when you think about it all those reasons come down to several key points - cash flow and working capital management, tax and accounting issues, matching the use of the asset to its estimated life. While every Canadian business owner likes to feel their needs are unique we are pretty sure that if you walk through those 3 key areas we noted above you will be able to significantly simplify your business equipment financing.
Is there a way to simplify the entire process? There sure is. Simply view what we will call ' the big picture ' around your transaction. Envision it as follows - your application and exchange of financial info with your lessor, discussion or correspondence leading to approval, documentation, and then finally funding and payment... which is often simply the payment made to your supplier, allowing you to receive the asset and put it to work for cash flow and profit generation.
There are hundreds of equipment financing and lease financing firms in Canada. We are quite sure you do want to ' simplify ' your business financing so speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can ensure your business lease is positioned properly, approved, and funded. Now you are getting your share!
Stan Prokop
7 Park Avenue Financial :
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
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.
Article Source: http://EzineArticles.com/6077333
Stan Prokop
Wednesday, September 16, 2015
Canadian Business Financing - Tips on Securing Financing For Your Business
Your Mission Should You Choose To Accept It? Sourcing the Right Business Financing Loans And Cash Flow Solutions For Your Business
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Business financing is a challenge anytime, from the entrepreneur's dream of a small start up to major corporate needs.
The current economic downturn makes the above noted challenge even more daunting. Whether a firm is established and doing well, or experiencing financial distress or working capital or growth needs - the challenge remains the same.
What is the 'challenge'? Simply speaking it is identifying the proper financing solution , determining whether the solutions is a short term fix or a long term solution , and then, most importantly executing with experience the proper financing solution.
The business owner must be able to properly position the current shortcoming as both an opportunity and risk appropriate.
Proper financing begins with the owners and his advisors ability to identify the current financing challenge. The owner and advisors must provide a compelling reason for the lender to assist in an appropriate financial solution.
Who are these 'advisors'? Typically they are internal financial staff, i.e. CFO/Controller, etc, or alternately third part accountants or a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
Business Financing is complex - However at the end of the day the financing solutions are actually very well defined - They are as follows:
Leases and Term Loans
Working Capital Loans
Asset Based Lines of Credit
Bank credit lines
Non bank credit lines
Receivables purchasing
Inventory Lines of Credit
Purchase Order Financing
Commercial mortgages
Tax Credit financing
The business owner, and their advisor, should have a very clear focus - That focus is as follows: What is the best financing solution on either a short term or an intermediate/long term basis for the business. Does the business owner or executive clearly understand all the financial options available - what are the criteria for these different options - what are the rates/terms and structures for each option.
Stan Prokop
7 Park Avenue Financial :
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
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' 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
Working Capital Financing - Commercial Financing Solutions
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The Working Capital Financing Challenge In Canada. Which Commercial Financing Solutions Suit Your Business
Working Capital Financing is forever a major challenge for small and medium sized business in Canada. And that is certainly not to say that larger corporations don't have that challenge, it's simply a case of having more assets and resources to deal with the same challenge.
As a business owner or financial manager the level of funding that you need, and the method in which you achieve that financing is really what drives the solution to your challenge. It is important, in understanding your cash flow needs and solutions, to determine if your working capital financing is required due to the capital intensive nature of your business - or if you in fact simply need to ' monetize', or 'cash flow ' your assets in an effort to generate more working capital and faster turnover of those funds.
Your focus on cash and business financing becomes even greater if your sales and profits are increasing. However, at the same time the ability to obtain business credit in Canada remains a challenge.
Bank financing has become more difficult to acquire, and many firms are looking at non traditional or alternative sources of financing to secure the funds they need for working capital.
Another hard reality of working capital financing is that most small and mediums sized business are searching for more cash flow on an unsecured basis. This type of financing is very difficult to achieve in the Canadian marketplace, certainly in the Chartered bank environment.
So what are the sources of financial capital that Canadian business owners and financial managers can investigate and potentially utilize? Let's cover off some of the basic options - These include:
Personal savings (not high on a business owner's priority list!)
Business Credit Cards
Factoring
Government Working Capital Term Loans - Financing Business Loan (These are cash term loans with fixed payments and rates)
Factoring financing
Asset Based lines of credit
When you are looking for working capital financing one of the key areas you can start with is your own key financial metrics. You don't need to be a seasoned financial analyst to determine at what rate your receivables are turning over. The bottom line if you haven't realized it yet (we are sure you have) is that receivables and inventory ' eat ' cash.
One key point needs to be made here, if your sales are growing at 15% and your receivables are growing at 15% that's not a bad thing. (To calculate simply measure the ratio of these two data points) However, if your sales are growing at 15% and receivables are growing at 30% your cash flow and working capital is being consumed by the investment you have made in A/R and inventory that is not turning over. Collections and inventory turnover are a key aspect of working capital financing.
Commercial financing from a bank is the optimal solution for small and medium sized business - as have noted that is difficult to achieve. Funding a business can be complex and we urge clients to seek the advice and guidance of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success to ensure they pick the right tools to solve working capital challenges.
Stan Prokop
7 Park Avenue Financial :
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
7 Park Avenue FinancialSouth Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
Click Here To Visit 7 Park Avenue Financial Website
' 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.
Article Source: http://EzineArticles.com/4669526 Stan Prokop
Monday, September 14, 2015
SR&ED Financing In Canada : SRED Loans Accelerate Cash Flow! Here Is Your ‘ How To’
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The Not So Tricky Art Of SR&ED Financing Loans In Canada
OVERVIEW – Information on SRED Loans in Canada . SR ED financing of SR&ED claims in Canada is a viable method to accelerate the cash flow from your firms r&d capital spend . Here’s why.. and how
SR ED financing (' SR&ED’) is a lot less of an art and science than most firms think. We're looking at SRED Loans from a ' how to' perspective - it's the ultimate cash flow acceleration with respect to the key benefit of the program - i.e. recouping a large part of your r&d capital spend. Let's dig in.
Billions of dollars each year flow from the government to thousands of firms who participate in the ' SR&ED ' program in Canada. The ability to turn claims into short term sred loans simply accelerates the benefits of the program. While the govt maintains that the program encourages companies to invest in the future via enhanced products and services the ' journey ' and the ' wait' for the refund can seem daunting at times.
Certain ' resources' are needed to both participate and benefit in the program. They include your own ability to finance the SR&ED process from start to finish, as well as the need to more often than not ( in fact almost always and recommended ) to acquire the services of a SRED consultant who understands your business and is experienced in the preparation , documentation, and filing of your claim.
There is a significant amount of time allowed for you to prepare your claim but the claim is always filed in conjunction with your year end. At this point both the eligibility and quality of your claim is key. Claims typically have a technical narrative and a clear break down of the costs you are claiming in the process. All of this effort is of course focused on one goal - the refund! , which is for most firms available in the form of a cheque from the government. Typical refunds are in the 30-40% of your total R&D spend, so it's easy to see why the program is in fact one of the most ' real' and ' attractive ' programs in Canada.
So at this point you've identified the nature of your claim, you've engaged an industry consultant to prepare the claim and you're filing your claim. In certain cases claims are subject to audit and assessment - thereby prolonging the waiting period for your refund.
Tired of waiting? Consider financing your claims as soon as it is filed. Enter the SR ED financing process. SR&ED Bridge loans are typically done on a 70% loan to value basis - allowing you to monetize your claim and accelerate that cash flow benefit we have been speaking of. The main collateral for the loan is of course the SR&ED claim itself - loans are repayable at anytime and rarely last longer than a year, by which time your refund will have been approved and processed via the govt.
Recent enhancements to financing claims allow you to file for both past and present claims, as well as to start a financing process around your next year’s claim.
The SRED loan process is quick and efficient, with most claims being financed within a couple weeks. If you're looking to accelerate R&D capital expenditures 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 SRED Loans that make sense for your firm.
Stan Prokop
7 Park Avenue Financial :
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 . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN SR&ED FINANCING AND LOAN EXPERTISE
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' 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
Sunday, September 13, 2015
Is it Advisable to Consider Sale-Leaseback Financing?
Information on sale lease back transactions in Canada. Leaseback financing has many advantages when properly executed. Here's why .. and how.
Many business owners and financial managers are often faced with the consideration of utilizing a sale - leaseback to generate cash. This strategy became much more popular over the last year or so as banking and credit liquidity scenarios deteriorated.
The overall strategy can be viewed as giving some operational flexibility to the business. The bottom line of course is that it brings additional cash into the company at a time when ash is king. The customer is of course, essentially 'tapping into equity 'that the firm has built up in the asset. What is that asset?
Typically assets given up for consideration in sale leasebacks are manufacturing equipment, computers, and even a firm's real estate.
Sale-leasebacks have to make sense to both the lessor and the lessee. We view the largest ' negative ' aspect to such a transaction being the potential perception by the lessor, or other lenders that the firm is making a last ditch ' cash grab '. There has to be, as referenced above, an agreement that the transaction works for both parties.
If we analyze a typical example of a transaction we will hopefully get a better sense of why this strategy can in fact be a common sense financing alternative. Company A has manufacturing assets, shown as fixed assets on the balance sheet. In the sale - leaseback scenario the assets of course remain at the company - they do not move. The company receives cash for the sale of the asset to the lease firm. Quite frankly customers who consider this transaction have explored other traditional options by this time, such as reviewing additional financing with their bank or other senior lenders. Naturally the equipment is used on a daily basis to continue to generate sales, (and hopefully profits) for the firm.
In certain instances the sale-leaseback can in fact enhance the customer's balance sheet. One additional major flexibility is that the new sale-leaseback financing can in fact be used to generate additional flexibility at the end of the lease - i.e. the customer can again regain ownership of the asset if it will have economic value, or might choose to negotiate a return of upgrade with the vendor or lessor.
In summary, does a sale-leaseback of assets make sense? The answer as we have seen is ' yes ' if in fact it is done for the right reasons and makes sense for the customer and the lender.
Stan Prokop
7 Park Avenue Financial :
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
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' 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
Article Source: http://EzineArticles.com/3556312
Friday, September 11, 2015
Are Working Capital Loans What Your Company Really Needs? What Type Of Finance Company Can Help?
Information on working capital loans and cash flow solutions . Loans might not be your only alternative when looking for a finance company to increase your access to liquidity for growth and survival
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The shock has probably worn off by now.
We're referring of course to the business owner and financial managers realization that sales don't equal cash flow and that your management of working capital might just be your key to short and long term survival.
So what type of finance company or institution can help you in the access to liquidity? The reality is that every industry needs a different level of working capital. That relationship of your assets to your turnover to your cash on hand is what is going to make the final call on what type of loans you might need for your cash flow management solution.
And we will add that you might find that ' loans' or bringing on additional debt to your balance sheet is not only the wrong solution, but you have alternative non loan solutions!
The reason you are looking at your working capital situation hinges probably on two areas, your firm is growing too quickly, or you have asset management challenges or problems with inventory and receivables. So hopefully you can now see that what working capital management is all about comes down to matching the financing you need to the assets and equity you have on your balance sheet. As your business and profits grow the owner equity component grows also
So are loans the solutions to your cash flow challenge (or crisis?!). Sometimes, but definitely not all the time. The long term solution to a cash flow management solution might in fact be a working capital term loan, in effect injecting long term capital into your business. If you can qualify for this loan, which is more often than not unsecured, it certainly is an option. Larger loans of this nature are called subordinated debt, but cash flow term loans are available for almost all firms - generally the minimum being 50k , but as we noted, going to several million dollars depending on the size of your firm .
But why would you borrow externally and bring debt onto your balance sheet when the solution is inside your business, not outside? Clients are often surprised when they find out that two other solutions, and not loans, are possible.
We're talking about asset based lines of credit, which are generally non bank in nature, meaning they are offered by private finance firms. Rates on such facilities can be competitive to bank rates, but more often than not come at a premium. However your ability to, in many cases, double your working capital liquidity can significantly increase profits and sales. Just think about it, if you can double sales, keep your overhead costs relatively fixed, the additional profits you generate can easily cover your new increased financing costs.
The other solution we will mention is the sales of receivables. This type of financing brings zero new debt on to your balance sheet, improves your cash position, and provides immediate cash flow for growth. Perceived as expensive and non traditional it is gaining traction with Canadian business every day. In effect it is the trade off you have between growth and survival and additional financing cost, of a non loans nature.
In summary, working capital loans can come from external finance company sources. Alternatively you can become your own finance company by managing and monetizing your assets in a variety of ways. Speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success to determine which solutions work best for your firm.
Stan Prokop
7 Park Avenue Financial :
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
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' 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
Thursday, September 10, 2015
Why You Should Utilize Asset Based Lenders for a Revolver line of credit facility
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Information on why a line of credit known as a ' revolver' might be a solid business financing solution via non bank asset based lenders in Canada . How these facilities work and what they cost .
Some Canadian business owners and financial managers aren't familiar with the term revolver line of credit . So for clarity purposes it's simply terminology for a business operating line of credit. It revolves, or goes up and down everyday, as your firm collects receivables, pays bills, buys inventory, makes loan payments, etc.
Naturally clients can be forgiven for asking '' What is the difference then for asking why asset based lenders offer a unique , and we think better revolving line of credit than perhaps their Canadian chartered bank can offer .
We're going to cover off the basics of a revolver line of credit via an asset based lending solution with a focus on ' why ' you should this type of business line of credit.
The reality is that asset based lenders are playing a more important role everyday in Canadian business - that's simply because most business owners and financial managers agree that it is more challenging than every to meet their day to day financing needs with bank facilities . That is because banks place more focus on external collateral, operating results that meet their guidelines, and a lack of desire to finance items such as inventories, purchase orders, etc.
The key main reason why you should consider an asset based line of credit is simply that the firms that provide this type of financing specialize in exactly what you need - maximum financing for receivables, inventory, and equipment .
Very typical margining of these current assets in an asset based line of credit with a non bank is 90% of receivables, 50%or more for inventory, and full appraised value of equipment and other fixed assets. We have seen real examples where a revolver line of credit has tripled a firms borrowing power, even at better rates on occasion.
So clients start seeing very quickly why they should be utilizing this type of financing, they just don't know with ' who '. There's where it does get a little tricky, as firms offering this facility are less known than the banks, and are often independent finance firms of subsidiaries of U.S. banks that operate here in Canada. There is when its best to seek the services of a trusted, credible and experienced business financing advisor to match your needs with the right asset based financing solution.
Let's summarize some key points that focus on the real issue we are talking about - why you should consider asset based lenders for your day to day operating needs.
First of all, size doesn't matter in the asset based finance world. Facilities from 100k to many millions of dollars are available. We'll quickly add that some of Canada's largest corporations are financed by this method, we just don't hear about it!
Other reasons why you should consider this type of Canadian business financing are as follows: you are in a turnaround situation, you can't get equipment and inventory financing that you need to generate sales and profit. Other reasons include your growth - in some bank environments you are punished for growing too quickly, but asset based lenders raise your facility as you grow, with their only concern being the assets you have to cover the facility.
Make sense? We think it does, so speak to trusted, credible and experienced Canadian business Financing Advisor with a track record of success on what the merits of a revolver line of credit are, and find out why asset based lenders may be your business finance savior in the current business financing environment.
Stan Prokop
7 Park Avenue Financial :
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
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' 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