Don’t Read This If You Don’t Want The Real Deal On Receivable Finance in Canada . Business Invoice To Cash Financing

Canadian Receivable Finance Information

Information on receivable finance in Canada . Why and When does business invoice to cash financing work?





Receivable finance in Canada. It's also known as the business invoice to cash strategy. Who wouldn’t want the real deal on what’s happening in A/R financing in Canada... how it works, who to deal with, what to watch out for, etc..

Maybe it’s just us, but there is a certain discomfort we notice with Canadian business owners and financial managers around their ability to feel 100% comfortable with their overall cash flow financing strategy. And when it comes to receivable finance can the average Canadian business owner or financial manager actually say they understand the benefits, costs, and potential disadvantages of a business invoice to cash strategy? Not really in our opinion.

The time to properly consider such a strategy is when your business is still in under control when it comes to the overall working capital strategy. When you don't feel in control you tend to have a total discomfort around acquiring new assets, making on time payments to suppliers and lessors, or worrying about how you will manage growth.

Cost tends to always be the main discussion point when the conversation gets around to A/R financing with clients. The issue is simply that in many cases the business owner is not comparing on an apples to apples basis.

Why is that then? Simply because the business person, makes his or her total decision, incorrectly on the ' discounting fee ' that is implied in the cost of A/R finance.

Oh and by the way, if you are dealing with the wrong company in Canada you can get blind sided by numerous miscellaneous charges that really add up, they include service fees, an admin fee, a renewal fee, a utilization fee, and, believe it or not, many of these firms require that you have to pay them to leave! Talk about the importance of dealing with the right firm!

When considering A/R finance strategy it is good though to compare it to the alternatives when it comes to benefits. Unlike a bank facility, which many firms can’t qualify for anyway the business invoice to cash strategy has virtually an unlimited cap. As most business people know banks in Canada have, of course, pre set limits on bank facilities we can comfortably say that you are only constrained by your ability to make sales when you consider A/R financing, which isn’t the worst problem to have. You have, in effect closed the gap when it comes to cash flow flexibility.

Our recommended facility is the confidential invoice financing one, its here you get to bill and collect your own A/R, while at the same time achieving all the other benefits.

Confused about who do deal with, how it works. One way to achieve the real deal on what’s happening in Canadian business financing is to seek out and speak to a trusted, credible and experienced Canadian business financing advisor... today.







Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/receivable_finance_business_invoice_to_cash.html

SBL Loans In Canada. Degree In Rocket Science Not Required For The Canadian Small Business Loan

Canadian Small Business Loans

Information on SBL loans in Canada. Why is the Canadian small business loan so popular when it comes to business asset financing.



The Canadian Small Business Loan... it's not secret that over 90% of all businessess in Canada are in the SME sector.

Financing via SBL loans in Canada provides a solution for the small to medium sector in Canada. We always point out that to qualify your business, start up or otherwise must have less than 5 million dollars in revenue or sales projections respectively.

Does the SME sector have alternate solutions in place to finance its survival and growth? Of course it does, as they are numerous non regulated, non bank commercial finance entities that provide abundant sources of financing. They include, along with the chartered banks, receivable financing, working capital financing, asset based credit lines, equipment financing, etc.

But post 2008-2009 the commercial lending landscape changed dramatically in Canada... a lot of capital and solutions disappeared. Yes, it's coming back, but the reality is that that SBL loans in Canada were there through all this, and are still here now!

Is negotiating an SBL loan an art, or a science. And do you need the proverbial degree in rocket science to be successful? We don't think so, and if we had to weigh in we think we would argue it’s a bit more of an art than science, but we'll let the Canadian business owner of financial manager make the call on that one.

We do lean towards the successful financing of an SBL loan being a bit more of an art, as we said, and it’s important for the applicant to have a realistic expectation of what’s required and what’s involved.

If you follow some very basic steps around the Canadian small business loan your chances of financing successful greatly improve.

If you have basic perseverence, and arm yourself with the basics of the program you absolutely are in line for financing success, without that degree in rocket science.

So what are those basics? First of all you have to have a basic knowledge around the program offering itself, what it finances, what it doesnt, what the loan limits are, etc.

Understanding who guarantees your government loan and who provides of facilitates is paramount.
Once you understand that the government, via INDUSTRY CANADA is the guarantor of the loan, and that Canadian charted banks are the facilitator you're already goal line.

The winning proposal or application. Here's where you increase your chances of approval ten fold, simply because you prove you can satisfy all the basic requirements of the program. They include info you yourself, your business, a business plan or exec summary, and a detailed cash flow plan showing, guess what..??? how you will repay the loan.

Along the way you might have to refine your application and address certain potential deficiencies for final approval.

So, rocket science? Hardly! Speak to a trusted, credible and experienced Canadian business financing advisor on successful financing via SBL loans in Canada.




Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sbl_loans_canadian_small_business_loan.html

Carrying On Without Cash Flow Is Not An Option ! Analysis and Solutions For Canadian Business

The Importance Of Cash Flow Focus in Canadian Business

Information on business cash flow analysis and working capital solutions in the context of Canadian business financing .

Carry on? Without business cash flow? That's not an option for Canadian business owners and financial managers. That's why the analysis of their cash and working capital needs, in the context of solutions available is so critical in today’s business environment.

So are we all in agreement? We mean of course that no company has the ability to on a long term basis operate successfully without cash. That shortage is often the reasons why many companies fail.



However, the balance sheet and the income statement, as we always preach, dont necessarily tell you the full story of your company's goings on! A cash flow statement, that’s the third part of every financial statement package will, however, truth be told you can perform a fair bit of solid analysis way before your accountant or your accounting system delivers that document to you.

So why do you want to be so attuned to that cash flow anyway. Simply because whether it’s the short, intermediate or long term it’s a true measure of your solvency. And that solvency is what keeps your creditors and lenders and suppliers either happy or dissatisfied with your payment ability.

In more sophisticated firms a real measure of cash flow is often ' free cash flow '. Simply speaking it’s the true cash flow calc which then subtracts your capital expenditures to come up with that ' free cash flow '. Investors in public companies look at that one a lot, and quite frankly since the small to medium sized business in Canada doesn’t pay dividends or have to report earnings and cash flow we dont really consider that one quite relevant in the context of today’s discussion .

So what is important then? Several other great tools area available. Just one of those is the cash return on sales analysis tool. Take your cash flow from operations and divide that by your net sales over that same time period. Let's say the number works out to 10%. What does that mean? Simply that 10% of the sales you generate provide cash to the company. At the end of the day the number is relative to your company because it tells you how efficient you are in turning sales into cash.

Another great tool to check out is current cash debt coverage, which we'll leave for another day’s discussion.

At the end of the day there are ultimately 5 reasons why companies fair - they have too much debt, they are caught in a vicious cash flow cycle, they have current assets that aren’t turning, or fixed assets and too little capital come into play.

To solve these challenges Canadian firms have a variety of solutions - they include bank lines, asset based lines of credit, receivable and inventory financing facilities, tax credit monetization, and securitization. Oh and don't forget the proper use of equipment finance.

Speak to a trusted, credible an experienced Canadian business financing advisor on business cash flow analysis and solutions available to your firm today.






Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/business_cash_flow_analysis_solutions.html

Canadian Franchising Loans - 3 Issues in Buying A Franchise You Need To Address

How To Buy A Franchise ( And Finance It !)

Information on Canadian franchising loans . Buying a Franchise In Canada with the proper financing in place for the franchisee is a critical step to success .




Canadian franchising loans. Buying a franchise is one half the battle when it comes to selection, location and price and return on investment - the other half of that equation is of course getting the financing you need to complete a purchase successfully.

We get a lot of questions around the issues involved in franchising finance in Canada - they all can be boiled down often into three key issues of concerns of the franchisee. Let's address those.

The three issues we are referring to are the amount of cash you need to commit to in personal funds (and where that cash comes from). Secondly, potential franchisees want to know what their financing alternatives are and what to do if they are turned down by their bank.

And finally, the sources and use of that cash needed to acquire the business requires some attention and comment. Let's dig in.

The majority of potential franchisee entrepreneurs in Canada think of their bank as the first source for financing their business when buying a franchise. While a bank in Canada might choose to provide a direct loan for the purchase of the business this assumes the purchaser has a very strong relationship, credit rating, and personal net worth to cover that type of financing. In fact that is a rare scenario.

The 2 most common methods of franchise finance in Canada are either via a specialized franchise loan firm, or, more commonly used, the Government Small Business Loan, which is perfectly suited to the acquisition of many franchises.

The requirements for this type of financing are a permanent minimum 10% equity injection, as well as demonstrating that the business has sufficient working capital and cash flow to repay debt and start up the operation.

Owners, i.e. the franchisee should be able to provide a financial update on their net worth, assets, etc, and at the same time they should be prepared to ensure they have a reasonably good personal credit rating at the bureau. Having your federal income taxes up to date is, by the way, highly recommended!

Franchisees should also consider any tax implications around collapsing personal investments such as an RRSP when contributing to their equity portion of the transaction.

Oh, and by the way, financing under a specialized loan or the BIL program we talked about can be nicely complimented via some solid equipment financing of miscellaneous hard assets that might be required.

Want to address any questions you have in the area of Canadian franchise loans when you're considering buying a franchise? Speak to a trusted, credible and experienced Canadian business financing advisor for the assistance you need in that entrepreneurial journey.










Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/canadian_franchising_loans_buying_a_franchise.html

A Tale Of Two Business Credit Facilities – ABL Asset Financing And Bank Revolving Secured Facility

Business Line of Credit Alternatives in Canada


Information on business credit in Canada. What are some key differences in an ABL asset financing facility versus a secured bank line.




Secured business credit via an ABL asset financing or a bank line of credit. It's absolutely a tale of two. We guess the book might be called ' A TALE OF TWO FACILITIES’! Let's examine some of the key differences and benefits and disadvantages of both an ABL asset line of credit and the better recognized bank secured business credit facility.

Both public and private companies in Canada feel the squeeze when it comes to achieving the right financing for their firms in the current economic environment. Both the business owner and his or her financial managers can be forgiven for being a bit confused on alternative methods of line of credit finance.

So should you be doing what everyone else seems to be doing, or should you strike out on your own with some solid investigation in alternative business models when it comes to lines of credit for Canadian business?

Let's look at what some of those key issues might be in considering alternatives, the ABL facility, and the Canadian chartered bank offering. Clearly in both cases you want to be able to ensure you can grow, not just survive in business.

Price is a factor also; you want to know the total cost when it comes to acquiring the right finance facility. Naturally relationships are important also, you want to be dealing with the right people, it’s as simple as that.

So lets take a first pass at asset based lending via an ABL facility. It is just a business credit facility secured by the assets of your company. Many firms that either cant raise bank financing, or, more importantly, cant raise the amount of financing they need from banks consider ABL. Hundreds of Canadian firms now use ABL finance as there preferred method of leveraging their assets for a credit line . Those assets are used to bridge the timing of cash in, and cash out in your business. ABL is available for companies of all size, from major public and private corporations, right down the pecking order to start ups. The facility fluctuates with the amount of asset that your firm generates, typically around A/R and inventory. Funds are typically managed through a blocked account - that simply means that you deposit all your inflows into one account, while your balances to reduce the line are managed through a separate account. It's not as complicated as it seems. Key benefits are higher margins on receivables and inventory.

The more traditional alternative to business credit via a secured facility is the Canadian chartered bank. Facilities are low cost and can be combined with term loans. Banks are cash flow lenders, the ABL facility tends to be asset based, not cash flow based. Your financial statements and current financial history will dictate whether your firm is more cash flow or asset oriented. Banks will look to what they call secondary forms of repayment and are highly regulated with their offerings. ABL lenders for asset financing tend to be independent commercial finance companies that are none regulated. It's a little known fact that many of the banks have small boutique divisions of ABL finance that in some ways compete with their peers in Commercial business credit.

Investigate both the ABL secured asset financing revolver, and the more traditional Canadian chartered bank line. Weight the benefits and potential disadvantages of both in coming up with your preferred method of business financing. Speak to a trusted, credible and experienced Canadian business financing advisor today on differentiating that ' TALE OF TWO FACILITIES '!



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/abl_business_credit_asset_financing_secured.html

Know The Happiness Formula For Cash Flow Financing And Working Capital Problems ?

Are You A Great Cash Flow Manager


Information on cash flow financing management and working capital problems and their solutions in the Canadian business space.




Cash flow financing in Canada. Is there in fact a ' happiness formula' for solving and managing through cash flow problems? In our opinion it's really a combination of management as well as sourcing the proper solution based on your firm’s particular situation.

Let's examine some tools, tips and strategies around what we might consider a ' Happiness Formula '! in Canadian business financing.

A good way to address the topic is to focus on 3 sub topics - understanding what is in your financial statements, using that information to work through your cash flow cycle, and, finally, financing cash producing assets... properly.

We have said it before, and of course we'll say it again, too many business owners and financial managers focus on their financial statements from a viewpoint to looking primarily at their income statement, perhaps then the balance sheet.

Guess what though; probably the most important way to view cash flow management and to identify working capital problems is in that third part of your financials, it’s the ' Cash Flow Statement '. For us old timers it was also aptly called ' Sources and Uses ' and we're talking cash of course! We love the line ' Cash ... where got ... where gone'!


So what we are saying is that this particular part of your financials can lead you to our sought after 'Happiness Formula.’

The simple part of looking at this statement is the fact that it quickly identifies the gap between profits and cash - and as most business owners know they are often, if not always, NOT the same!

The bigger that gap is of course a solid place to and time to start thinking about solving working capital problems.

So how do you in fact secure the proper cash flow financing in Canada. And don’t forget that it’s not just about surviving in business; it’s about growing your business. That growth will simply enhance the value of your company.

The cash flow statement will properly identify your overall business or operating cycle. In fact it’s even a precise calculation that you can use to track how long 1 Dollar flows through your company, from order to collected receivable. The longer the time gap the more working capital problems and challenges you have.

Cash flow financing come from two areas, borrowing, or simply turning your assets such as A/R and inventory over. Naturally you also want to manager your fixed assets so they are in a proper relation to your overall equity and capital structure.

And those solutions to cash flow finance in Canada? They are varied - they include chartered bank facilities, asset based non bank lines of credit, receivable and inventory financing that are again non-bank in nature. Additional sources are monetization of tax credits or the sale and leaseback of owned assets.

Still searching for the Cash flow Happiness Formula? Speak to a trusted, credible and experienced Canadian business financing advisor today.





Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/cash_flow_financing_working_capital_problems.html

Creative Ways To Use A Capital Leasing Company In Canada. Lease Finance Companies Have Your Solution In Hand

Mastered These Inside ‘ Scoops’ On Lease Financing In Canada?


Information on use of a capital leasing company in Canada . Creative methods to use lease finance companies for sales growth and cash conservation.



Is your company getting the most from an asset and capital leasing company in Canada? Let's examine how your firm can maximize some really creative benefits from lease finance companies in the Canadian marketplace.

Equipment finance doesn't have to be a ' complex ' form of business financing if you’re aware of the some key concepts, some of which are perhaps a bit more sophisticated than others... but bottom line you should never lose out on the advantages simply because you weren't aware.

There are numerous nuances in lease finance - they revolve around the areas of legal, financial, tax and accounting. Exploiting some of these areas to your firms advantages bring you maximum creativity.

It's safe to say that we are maintaining that you have to be involved and consider every aspect of the lease transaction - as benefits and creativity come at all stages, i.e. evaluation structuring, credit approval, documentation, and end of term.

Just simply by working with the right asset capital leasing company can save you time and money. Did you know many transactions today that are a smaller dollar limit can be approved within 24 hours, and often don't require even full financial statement disclosure?

If you know the general makeup of lease finance companies in Canada you're in a position to maximize your overall cost. In Canada the marketplace is broken down into small, mid and large ticket lessor. When you understand the ' credit box’... i.e. the financial criteria required for approval, you can save thousands of dollars on lease pricing.

We're often asked who has the lowest rates in Canada. In general we can say that Canadian chartered bank lease subsidiaries and divisions offer the best pricing, typically 200 basis points or less over bank cost of funds.

Another great alternative for Canadian lessees is to work with a captive finance firm. Although they are also highly competitive in price also there’s an extra creative advantage to utilizing a captive firm. Simply speaking, they are incented to make the sale and provide credit approval, if only because they are supporting the parent companies sales activities.

Did you also know that many captive firms for hardware and equipment will also consider financing a competitive product - there are various reasons they do that, but suffice to say you're the winner on that one?

Lease finance companies in Canada also provide you with a very creative hedge against obsolescence. Also, numerous ways of achieving end of term loss minimizations are available to the Canadian business owner.

We think many firms probably don't utilize the creativity embedded into operating leases in Canada. Although international accounting changes minimize some of the benefits of this off balance sheet strategy there are great reasons still to consider a FMV lease ( fair market value ) particularly when you are financing technology or large ticket capital equipment .

If your firm is somewhat ham strung on financial performance, rations, covenants, etc lease finance companies are the ultimate solution for capital and cash flow preservation.

Lease structures are virtually unlimited in Canada, and identifying what’s important to your firm will allow you to structure term, payments, end of lease obligations, etc... and on it goes.

Speak to a trusted, credible and experienced Canadian business financing advisor. Get creative when it comes to using lease finance companies in the Canadian marketplace.








Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/capital_leasing_company_finance_companies_canada.html