Confidential AR Finance : The Inside Secret To Financing Receivables Via Factoring

Practically Invisible A/R Financing?

OVERVIEW – Information on how Confidential AR Finance works in Canada . This subset of ‘factoring’ allows businesses to run and grow their business without any 3rd party intrusion . It’s the non bank business credit line for working capital needs.

Confidential A/R Finance is a method which allows Canadian business owners and financial managers to benefit from the best parts of accounts receivable factoring. How is this method superior to traditional AR finance? Let' dig in.

Carrying a business receivable of course always involves some level of risk. Your ability to both manage and monetize your sales into cash is one benchmark of any successful business. That cost of extending business credit to customers is a key part of how factoring works, and in particular confidential receivable finance, also known as non - notification factoring.

If you’re not financing your receivables through a bank you either are self financing, and comfortable and successful with that, or are simply unable to meet bank starts for all the working capital business credit you need.

Naturally if you your business can't finance your working capital and cash flow needs you are not in a position to support sales through the ability to finance customers, purchase inventory, and fund operating expenses.

While the majority of clients we meet seem to focus on both trying to understand how this method of financing works , or what it costs they seem to forget some of the other key benefits of financing your firm in this manner.

Those benefits include:

The ability to substantially strengthen and increase supplier relationships - i.e. paying them on time, purchasing more

The ability to capitalize on opportunities for growth - that might include larger contracts or new customers in other geographies within Canada or the U.S. (Non North American receivables tend to need to be financed via credit insurance of some type)

Your overall business credit rating is critical to your long term success and factoring via confidential AR finance as payables can more easily be managed among all suppliers


Don't forget also that typically there is no upper limit in your borrowing power under a commercial A/R financing facility. That differs substantially from Canadian chartered bank credit lines, if only for the fact that those bank facilities tend to be capped at a certain limit. We should mention also that many customers who can in fact get approved by a bank often find
themselves in the position of having a low cost of funds but not being able to access all the capital they need.

So how does Confidential A/R finance work ?While it is priced competitively to other forms on non bank financing it allows you to bill and collect your receivables under you own name- accessing all the capital you need in relation to your sales growth . So, in our words, success and still being ' practically invisible '!

If you're interested in exploring what top experts deem to be the most innovate part of factoring seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can help you make that ' inside secret ' into cash flow success.



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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN CONFIDENTIAL A/R FINANCING & FACTORING EXPERTISE






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

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 '

Stan Prokop

Business Finance Sources : We’re Name Dropping On Financing Options

Getting It Wrong In Business Finance Is Not An Option

OVERVIEW – Information on business finance sources in Canada . Avoid these financing options pitfalls with careful planning and expert assistance





Business finance sources in Canada can, unfortunately come with pitfalls if not planned picked or executed carefully. Let's take a look at those financing options while demonstrating that getting it wrong is a costly option. Let's dig in.

Whether a firm's business is in a great economic recovery or even when times are tough any type of business financing is a challenge. Growth? Access to Capital? Cost of Financing? All of those play into the business owner/ financial manager challenge.

While ' low cost' financing seems logical to every applicant the reality is that low rate financing is typically only available from our Canadian chartered banks. If your business can't meet the hurdles imposed by banks (the holy grail of profits, clean balance sheets, strong cash flows)

then it becomes a question of will your business make it with alternative finance solutions.











We promised to ' name drop ' on some of those traditional and also alternate sources of capital. They include, but are not limited to:

A/R Financing

Inventory Finance

Purchase Order/ Contract financing

ABL’S (asset based non bank credit lines)

Equipment Financing

Working Capital term loans

Sale leasebacks

Bridge Loans

Tax Credit Monetization

Business owners with needs in SME Commercial Finance also have the challenge of separating their personal and business assets in the area of personal guarantees that are required by many lenders, including the banks by the way.

Many capital needs for your business, whether operating, or term in nature are actually rooted in the need for, or lack of planning. We couldn’t count the amount of clients we meet that often have no knowledge of, let alone actual cash flow budgets.

When you don't know how you'll make loan payments, or take on new or larger orders a downward spiral often starts.


Don't forget also that its not just about accessing new cash, it's also about managing what you've got. Adopting strong metrics in collections, inventory turns, and utilizing equipment financing proactively to acquire new assets (it conserves cash flow) should by your new normal.

Looking for professional help? That might come from your lawyer, accountant, or by seeking a trusted, credible and experienced Canadian business financing advisor who will help ensure that ' getting it right ' is your new strategy for Canadian business financing success.




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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN EXPERTISE IN BUSINESS FINANCING OPTIONS





Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

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 '

Stan Prokop

Financing Research And Development Tax Credits : SRED Finance Is The Easy Part Of Your R & D

The Short (And Long ) Answer is ‘ Yes ‘ : SR&ED R&D Tax Credits Can Be Financed

OVERVIEW – Information on financing refundable research and development tax credits in Canada. SRED Finance loans monetize your claim and provide .. cash flow today!

Financing research and development (R&D) tax credits in Canada is really the end to a successful outcome of your SR&ED claim. There's been a healthy dose of ' no you can't ' when it comes to a lot of the changes in the program over the last several years. SRED Finance loans are the positive monetization of your claim - in effect the easy part! Let's dig in.

Most Canadian business owners and financial managers who participate in the benefits of the program probably though do realize that for a program that has been around close to 30 years there was probably some ' Times They Are A Changing' ) that were due . (Apologies to Bob Dylan who it turns out wasn’t writing about refundable tax credits)

While top experts and pundits maintained the program was ' broken ' it nevertheless continued to fund Billions of dollars every year for thousands of firms enhancing their business prospects through research. Anything that involves both provincial and federal governments is of course going to evolve.

Participants in the program of course know the basics - it's all about proving some sort of technological advancement. Here it’s about documenting your spend on fixing ' uncertainty ' and trying to progress to ' technological advancement’


After your claim has been filed you're in a strong position to... you guessed it... wait! That waiting can be totally eliminated by utilizing a SR ED bridge loan to monetize your filing, accessing your cash now... instead of weeks, months, or longer? based upon whatever status your claim is in with Canada Revenue. In some cases that of course might be financial or technical audit, in other cases just the bureaucracy that comes with those nice folks in the government.

How then does a SR&ED loan work? It could not be simpler and in fact we maintain that if there’s been changes to the financing of the program they have all n fact been quite positive! SRED loans are financed as bridge loans. You receive 70% of the total value of the claim on approval of the loan. The key collateral of the loan is, as you might surmise, your SR ED.

No payments are made for the duration of the loan, and when claims are finally approved you receive the balance immediately less financing costs which are mezzanine in nature due to the risk profile of this type of financing.

Financing research and development tax credits is a pretty easy decision - it boils down to:

Do you need the cash today and what use can be made of the funds? It's really the ' opportunity cost ' that you are looking at. Funds of course can be used for what the accountants call ' any general corporate purpose ‘. That of course includes operating financing, purchasing new assets, or doing more R&D!

Oh by the way, even next years claim can be financed today if you have a track record or can demonstrate a quality claim with your SR&ED consultant.

Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your financing needs in research tax credits. It's the ' easy ' part of research.




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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN SR&ED CLAIM FINANCING EXPERTISE







Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

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 '

Stan Prokop

Cash Flow Financing In Canada : Reducing Working Capital Finance Challenges

How To Make A Success Story Of Your Business Cash Flow

OVERVIEW – Information on cash flow financing strategies and solutions in Canada . Working capital finance can more easily be accessed with this information





Cash flow financing in Canada is rarely termed a great success story by Canadian business owners and financial managers. How can working capital finance challenges be reduced? Let's dig in.

Numerous factors affect your ability access the right amount of funding you need to run your business. Profit or the amount of it is certainly one of them. Many firms are profitable, but only marginally - and in a lot of cases we see with clients those profits fluctuate tremendously year over year.

Turning profits into cash flow is of course another story. In traditional ' bank lending ' it’s a strong requirement, as opposed to alternative financing which often focuses on assets and collateral in your business. And every business owner knows that in the SME ( small to medium enterprise ) sector most times a personal guarantee of some sorts is of course required. Those personal guarantees are a discussion for another day.

Let's recap traditional and less than traditional methods of financing cash flow and working capital. They include the following:

Traditional Canadian chartered banking - credit lines/term loans

A/R financing

Inventory financing

Working capital term loans

Government Small business loans - structured as term loans but with maximum flexibility around payment

Asset based lines of credit - (These ' ABL''s transform all your business assets into one revolving credit line

Tax Credit Monetization

Unsecured cash flow loans, often terms ' sub debt' or ' mezzanine’

Sale leasebacks of owned assets - this might include assets in one of two categories - equipment and real estate

In some cases it makes sense to form some kind of cash flow contingency plan that might include various forms of ' bulge financing ' solutions, or approaching suppliers and lenders for a payment moratorium of sorts. Those are tough to do, by the way.



Unfortunately many clients we meet don't always have a handle on their financial performance. In some cases they are ' rear focused' , having only historical data , which is challenging if no financial forecast or financial statement strategy is in place re reporting and analyzing.

Businesses with a handle on financial performance have much greater credibility with lenders; it’s as simple as that.

Remember also that while cash flow financing solutions are the fix from an external perspective it makes even greater sense to manage your assets to create internal cash flow.

That is done by having strong A/R controls and turning inventories over faster if inventory is a key part of your business. Naturally financial statement tools and other forms of business software greatly aid the business owner/finance mgr today. Knowing your DSO (day’s sales outstanding) and inventory turns and days outstanding payables is a fundamental you must know to be successful. Watch the business news on TV at night and you'll notice the ' big boys ‘, those major successful corporations always have a handle on these numbers , They're the key elements of the cash flow operating cycle.


If you're looking to be a SUCCESS STORY in your mind (or that of your competitors) seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you reduce those cash flow and working capital challenges.


ABOUT THE AUTHOR:
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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN CASH FLOW FINANCING EXPERTISE



Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

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 '

Stan Prokop

Franchising Loans In Canada : Top Franchise Financing Tips Explained

Unlocking Franchise Financing Secrets In Canada

OVERVIEW – Information on franchising loans in Canada . What franchise financing strategies are available to the prospective franchisee

Franchising loans in Canada, properly obtained and constructed, help guarantee entrepreneurial success for prospective franchisees. We're going to unlock some of those ' secrets’ to help ensure that success story. Let's dig in.

We can categorically say, notwithstanding the tremendous growth in franchising in Canada, that there's no ' easy money ' on the table when it comes to this type of loan or finance solution. In fact, we can safely say that many of the requirements of any business loan apply to almost all franchise scenarios.

So it becomes a question of leverage ( the amount of debt ) the franchisee can take on, the collateral value of assets being financed ( equipment, leaseholds, real estate, rolling stock ) as well as the business experience of the owner .

Often overlooked, or simply forgotten, is the franchisee's ability to misgauge the working capital and growth financing that might be needed post acquisition. While in some cases it might be assumed your business will lose money in the early stages it clearly makes sense to focus on cash flow and profitability from day one.

We meet with many franchisees who are interested in, or in the process of acquiring an existing franchise. Getting past the fact that the franchisor itself must approve this type of sale it's absolutely critical to determine what levels of success (or distress) that business was experiencing pre purchase. This necessitates a strong look at existing financials, personnel, and market conditions re location, industry growth, etc.

While it might seem logical that Canadian chartered banks are the predominant financier of franchises in Canada this might actually not be the case. While the banks do in fact align themselves with the big names in the business those franchises are often, for the obvious reasons, more expensive and require much more capital investment and personal financial commitment.

The reality in Canadian franchise financing? It's that most operations are financed by a small handful of specialty lenders, as well as those borrowers to choose to opt for the Government Small Business Loan (aka the ' SBL ‘). Other forms of supplementary financing are also utilized and available to borrowers - they include equipment lessors, term lenders for working capital loans, merchant advance cash flow financiers, and loans secured by personal assets of the franchisee, the latter not recommended.

If you're looking to be successful and wanting to navigate the tips and tricks of the franchise finance maze in Canada seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you on the journey to entrepreneurial success.




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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN FRANCHISE LOAN EXPERTISE





Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
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 '

Stan Prokop

Asset Based Financing : Are Business Credit Line Needs Causing You To Miss Out

Is Asset Based Financing The Better Way For Business Credit Line Needs

Information on the ABL business credit line . Asset based financing provides a solid alternative to ongoing working capital facility needs

Business credit line needs can often very well leave the Canadian business owner and financial manager feeling ' left out '. Asset based financing via an ' ABL ' line of credit can easily be called the ' better way ‘Let’s dig in.

Asset based lending, in our case in the form of a working capital facility is the ultimate in ' secured lending '. A laser like focus on your fixed assets and current asset accounts (receivables / inventory) transforms the true value of those accounts into ongoing cash flow.

It's that value in your business assets that allows companies in pretty well any industry in Canada to benefit from what we term a ' non bank line of credit '.

Almost any industry can benefit from Asset based financing, and in fact many industries seem almost perfectly positioned to use this type of borrowing. That includes mfg companies, wholesaling firms, retailers who have inventory financing needs, and even tech companies.

The essential difference in a Canadian chartered bank line of credit and an asset based financing facility is one is asset based (ABL) and one is more cash flow focused (the bank!). Bank facilities typically have ‘caps’, aka limits on the facility. The asset based credit line is more, shall we say ' elastic' in nature and really grows or contracts relative to your sales and working capital accounts.

Many companies, for a variety of reasons simply can't meet the stringent requirements of bank credit lines - which comes with very low rates, but requirements that are often onerous for firms that are in various stages of their life - that might be a turnaround scenario, or coming off a difficult year, or surviving, but paying the price of a one time incident such as the loss of a contract or key personnel.

It's those above mentioned typical scenarios that don’t allow firms to meet cash flow and balance sheet ratios required by bank lending. In some cases a lot of companies are subject to seasonality and cash flow ' bulge' requirements. It's the ability to also incorporate other assets into your credit line that assist in financing those ' bulges' in cash flow needs - seasonal or otherwise.

Because asset based financing for credit lines is almost always more expensive it's often a bridge to other forms of financing, think of it as a solid business band aid. If you're focused on getting business credit that meets your cash flow and financing needs seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your asset based financing needs.



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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN ASSET BASED FINANCING & CREDIT LINE EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
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 '




Stan Prokop





























Stan Prokop

Why The Equipment Lease Bravely Steps Up : Leasing Company Solutions Help Acquire Assets

Getting It Wrong Is Not An Option When It Comes To Asset Lease Finance

OVERVIEW – Information on what key concepts business owners and financial managers must address when constructing the right equipment lease with their chosen leasing company solution provider

Equipment lease solutions aid in acquiring assets. Simple as that. It's a solution that's used by a majority of businesses in Canada and the U.S. alike. But can you ' get it wrong ' when it comes to a leasing company choice. In some cases any mistake in financing an asset properly costs your firm time and money. Let's dig in.

Whether you're a public company, a government entity, or even a start up it's still important to give serious attention to how you're leasing and asset, who you are dealing with, and the rights and obligations you have in leasing equipt. in Canada.

Leasing is all about cash flow conservation, so some solid cash flow planning around projected monthly payments relative to the useful life of the asset.

Naturally no form of Canadian business financing is ' all inclusive ' and works all the time - so yes, alternative options do exist. They include loans or rentals, although rentals are in effect a form of the ' operating lease ' solution.

Picking the right term is critical as it relates to our cash flow mention, as well as being able to accurately determine the life of the asset. While longer term/amortizations are available typical lease terms are 2-5 years in Canada. Certain heavy equipment/aircraft/production equipment etc lends itself to much longer terms potentially.

It seems our clients always only want to talk about ' rate' ' interest rate' considerations on any transaction. That's all well and fine but the actual terms of the lease as well as type and structure are considered much more important by experienced lessors. At the end of the day your overall business credit quality (or lack thereof) will take care of the interest rate question, if only for the reason that the industry itself is very competitive these days!

It's that competitiveness that will allow you potentially negotiate critical customer concerns such as down payments that might be required, the dreaded ' personal guarantee', or end of term options such as upgrading, returning, extending the lease .

Many of our clients we initially talk to don't fully understand that ' capital lease' (i.e. lease to own) solutions are known as ' hell or high water ' contract, requiring you to make all the payments under the lease - i.e. no early terminations, etc.

Who in fact offers lease finance solutions in Canada. You'd be surprised at the number of players; they include some of our Canadian chartered banks, independent commercial lease firms, captive organizations within certain large manufacturers, and niche players. In some cases your lessor might be 100% Canadian, in other time it might well be a subsidiary or division of a U.S. organization. (Not that there's anything wrong with that!)

So is there any one way to guarantee you are aware of and selected the right lease structure and lessor? One possible solution is to seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can ensure ' getting it wrong ' is not the 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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT LEASE FINANCING EXPERTISE






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
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 '

Stan Prokop