Canadian Business Financing : Game plan Required For SME Commercial Finance Needs

Is Your Search For Canadian Business Financing Resembling The Star Trek Dilithium Saga?

OVERVIEW – Information on Canadian business financing . Do you have the right game plan for SME Commercial finance needs to grow and operate your company ?

Canadian business financing comes with a game plan requirement. If there's any good news on that it’s that there's no discrimination when it comes to being a start up, small business, or large corporate.

Consider it as tough a solution as the ' Dilithium ' story line on Star Trek (rare Dilithium crystals were rare and needed to be replicated properly and the search was lengthy). The right steps and strategy in finding the right solution is your version of that saga. Let's dig in.

Larger corporate borrowers do not have the emphasis on personal guarantees and outside collateral that are required of the start up entrepreneur and SME. It's therefore necessary for the latter to ensure their personal credit situations are in order. The good news here is that while many non traditional financings require proper disclosure in this area less emphasis is placed on this aspect of business credit application, offset by either asset strength or the proven ability to generate cash flow.

Canadian banks focus on term loans and revolving lines of credit. Low cost, plentiful, they come with the requirements one would associate with bank funding - profits, cash flow, clean financials, secondary sources of collateral. ‘Unsecured debt ' is available, but comes with requirements of high net worth and demonstrable cash flow. It's a fabulous area to waste your time in if you can’t meet those requirements!

Business plans are not always required for many types of business lending
While being critical for start ups, government loans, etc they can be easily replaced with a solid cash flow and revenue forecast - one that accurately reflects timings and inflow and outflow of cash from daily operations. The ultimate irony in one aspect of Canadian business finance is that growing too fast is actually a turn off to many conservative lenders as cash needs can’t be accurately identified.

But growing fast and large is in fact desirable when it comes to such finance solutions as Asset Based Lending which focuses on financing all your receivable and inventory requirements generated by hyper growth.

Being turned down by a bank or traditional commercial lender still offers many other alternatives to commercial financing in the SME sector. Those solutions include:

Factoring / Confidential Receivable Financing

Inventory Finance

Government guaranteed SBL loans

Equipment Leasing/ Sale leaseback/ asset based bridge loans

PO / Contract financing

Asset based revolving lines of credit (the ' ABL ' solutions)

Revenue/ Royalty Financing

Monetization of SR&ED tax credits (if applicable to firms spending on R&D

In any form of Canadian business finance allow enough time to source and achieve the financing you need, and consider the services of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success to deliver on your Dilithium dilemma!




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 :


http://www.7parkavenuefinancial.com/canadian-business-financing-sme-commercial-finance.html


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

Technology Financing Canada : The Psychology And Facts Around Computer and Tech Leasing

Interested in Spending More And Getting Less ? Don't finance Your Technology Needs ! On the Other Hand ...

OVERVIEW – Information on technology financing in Canada . Historical benefits of lease finance are even more enhanced when it comes to computer tech leasing of assets and software

Technology leasing & Financing is all about the ' economics' of acquiring tech assets in key categories of hardware, software, consulting and maintenance. Tech financing got its start 50 years ago from original behemoths such as IBM, Xerox, etc. A large part of the initial success of those two example firms revolved around their ability to offer financing to clients .

Top experts tell us that today over 50% of all workers in North America are working in companies just like yours that are big users, or producers of technology products and services. (Source: 'The Emerging Digital Economy 11')

Do Canadian business owners and financial managers really understand the differences between financing hardware and software versus other assets they might need in their business?

While conserving cash and choosing the right term or amortization are key elements in any lease tech leasing requires expertise and guidance in areas such as buy out options, renewals, upgrades, and early terminations. No one method of financing is the ‘ holy grail ‘ in Canadian business financing . While the obvious always advantage is the ability to acquire assets, including technology for minimum cash outlay more complex financial analysis in ‘ lease vs. buy ‘ scenarios will often suggest that lease financing is more expensive . Also when owners choose the wrong lease term on the wrong asset they will get that ‘ locked in’ feeling !

Although the benefit of ‘ off balance sheet financing’ has virtually disappeared with changes in accounting rules operating leases, particularly in the tech environment, still deliver lower payments, and maximum flexibility re upgrades, swaps, etc.


While almost any asset can be financed it's important to work with experts that offer specialized financing expertise in this area. That allows maximum buy and minimum spend, including, by the way, your ability to add maintenance and consulting to your desired solution.

No one recognizes the importance of cash flow than owners and managers in the SME sector in Canada. Growing a company while at the same time juggling supplier commitments, receivables challenges, and sourcing external financing is a 24 hr Job # 1. Tech Leasing is all about conserving capital and taking advantages of expertise in terms and structure. That's the ' huge win' that business owners are looking for.

Vendors, resellers and software firms can grow sales and maximize cash flows by offering lease financing options to clients. Providing clients with the ability to extend payments, or even utilizing ' buy now - pay later' creative financing is the final building block in the reseller / vendor product and service offering.

Rarely does a financing solution makes sense for both the seller and the buyer, but time invested with a trusted, credible and experienced Canadian business Financing Advisor with a track record of success will guarantee a positive impact on the bottom line of any business selling or acquiring technology.





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 COMPUTER AND TECHNOLOGY FINANCING EXPERTISE







Stan Prokop









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 '

Start Up Sources Of Finance In Canada : Early Stage Financing Is Your New BFF

Is Start Up & Growth Financing Keeping You Up At Night

OVERVIEW – Information on start up sources of finance for Canadian business owners and entrepreneurs . Early stage financing is challenging without this information

Start up sources of finance in Canada easily keep the business owner/entrepreneur up at night. Let's dig in.

Is anything more uniquely challenging than financing needs of a startup? Is it even possible that early stage financing could turn out to be, as they say, your new BFF? Nothing is truer than the fact that capital acquisition chances are less certain in an early stage environment

Key to understanding the ' capital raise' is ensuring your business has a suitable match of debt and equity. The good news is that when you are up and running many sources of capital to monetize assets and sales are fairly plentiful. They typically include debt and asset monetization vehicles that allow you to generate internal cash. Those typically include:

PO / Contract financing

Monetization of SR&ED tax credits - these bridge loans are a great way to cash flow refundable tax credits under the govt R&D program for those that file claims

Receivable Financing / Inventory Finance

Asset based credit lines that turn receivables/inventory/hard assets into on single business line of credit

Those 4 methods are ' asset monetization' strategies - also available is debt in the form of a Govt small business loan or a working capital term loan from Canada's crown corp. bank.

Many business owners, some of whom are ' newbies’ are not 100% sure of the amount of financing they require, much less they could get approved for. Potential clients we meet who state ' as much as we can get ' simply require... well... you guessed it... a lot of work.

The proven way to calculate the amount of start up financing you need is to prepare a proper opening balance sheet and cash flow projection. Properly complete it will give you a strong handle on the inflows/outflows as well as, most importantly, the timing of the funding you will need - either in term debt for new assets or for business credit line needs.

Sales typically drive cash flow needs so being realistic in your forecast is key. An old mentor

of ours once said ' I NEVER MET A PROJECTION I DIDN'T LIKE'.

Can a realistic, even conservative projection fail? It can if it doesnt allow for the timing of working capital flows. Businesses in the SME sector can generate a lot of cash, more than they might think, by proper management of receivables, payables, and utilizing sources of funds such as equipment leasing. It's then that the owner/manager must consider external capital. And as expensive as debt might seem to small or emerging businesses it’s always cheaper than diluting ownership equity.

If you're in search of the right amount of start up, growth, and early stage financing for your businesses seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who just might be the bridge to your new BFF - solid start up sources of finance.



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 START UP / EARLY STAGE 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

Business Loans : Healing Power Of Financing Sources In Canada

Dear Abby : We’re Confused About Sources And Types Of Business Loans - Signed: Anxious In Canada

OVERVIEW – Information on business loans in Canada . What financing sources can business owners and financial managers explore in SME Commercial Finance availability







Dear Anxious In Canada : There's no question that the right financing sources and business loans can deliver on that ' healing power' that the business owner / financial manager needs to propel the company to that 'next level' of sales and profits. In some cases that might even mean a turnaround from less fortunate circumstances. Let's dig in.

Top experts in Canadian business financing constantly stress the ' conservatism' of our banks and major financial companies and institutions. That conservatism is probably justified when it comes to start up and early growth firms and the good news here is that many ' niche' financial solutions are available for those categories of financing.

Even the govt steps in re start ups, franchises, etc and offers the Govt Guaranteed Business Loan, making billions accessible for early stage and smaller firms with revenues less than 5 Million dollars.

What are the key factors that the owner/manager needs to have under his or her hat in order to access a financing source that makes sense? Ask yourselves the following questions, and being honest helps!

Do you know the minimum and maximum amount of financing your business needs?

Can you properly identify the right stage your business is in re growth potential?

Do you feel 100% comfortable in positioning your company for the right type of financing if in fact you were aware of those business loans and asset monetization facilities that make sense?

If you have a lot of time to waste then a recommended strategy is to approach all financial institutions that offer business finance.

Putting our sarcasm aside it's key to know that banks and commercial finance firms are very focused on specific sizes, offerings, and credit quality. So it should be very clear you should be working with someone that knows which commercial lenders are 100% interested in providing your firm financing you require.

While Canadian chartered banks are by far the best bet when it comes to cost and access to capital being established financially is key. Banks will look at your key issues such as your capacity to borrow, how much debt you have already, and what collateral and general business conditions exist in your company and industry.

Numerous financing sources exist outside the bank in Canada - they offer:

A/R Financing

Inventory Finance

Working Capital Term Loans

Tax Credit Monetization Financing

Govt Guaranteed Business Loans

PO/Contract financing

Sales royalty financing

Asset based business credit lines - revolving facilities that allow you to borrow against receivables, inventory and equipment

Equipment Leasing/ Sale Leasebacks

If you're focused on that ' healing power' achieved in proper business financing seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in eliminating confusion around business loan achievability .



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 BUSINESS 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

Business Financial Solutions In Canada : Untapping Capital

Is Lack Of Financing Hindering Your Ability To Capitalize On Growth Opportunities

OVERVIEW – Information on business financial solutions in Canada . Access to capital helps Canadian firms grow their business if proper financing is accessible

Business financial solutions in Canada (or lack thereof!) are the key in allowing business owners and financial managers to capitalize on growth initiatives. Let's dig in.

The myriad of finance offerings in the SME Commercial Finance sector can be a double edged sword. That's because lack of information , knowledge, of clarity around who is offering these solutions often confuse business people when in fact they are meant to solve growth problems That , coupled with the fact that many industries vary in the types of financial solutions that fit them best makes matters even more confusing .

A good example is a type of finance that's often the most sought by small businesses and even retailers - Inventory financing. This type of capital need is driven by the need to purchase and turn over inventory and is a key part in the ' bridge ' between client order, delivered product, and the generation of receivables, which in turn still have to be collected!

Banks and many commercial lenders shy away from inventory as a financeable asset only because they simply don’t have the expertise to manage and fund such an asset class. However, this has created opportunities for other lenders to focus on this niche, and create an entire market around inventory financing.

The most common method is to make inventories a part of an overall business credit facility. While that can be a Canadian chartered bank if your company is ' credit worthy ' more often than not the proper solution is an asset based line of credit , known as the ' ABL ' which includes inventory as party of your financing margin , together with receivables and equipment .

Bank term loans are low cost and have great term amortizations, but because they are cash flow and covenant based in our banking system they are more difficult to achieve. While the Canadian govt backed loan program, (‘CSBF’) provides thousands of businesses a year with billions in financing it only finances two asset classes - equipment and leaseholds. Popular misconceptions that this loan can provide working capital or inventory financing - the simple answer - It does not.

We spoke of that bridge from the time your firm takes and order to when you get paid from clients. Receivables are a part of that bridge and this asset can typically be financed at 75-90% of total A/R value. Receivables financing is accomplished through a bank facility, or, as common these days, via invoice finance. Our recommended solutions to clients is ' CONFIDENTIAL RECEIVABLES FINANCE ' if only for the reason... you guessed it... is that it’s CONFIDENTIAL.

In Canada equipment lessors and commercial mortgage firms can satisfy the bulk of capital options for equipment and real estate. They are typically long term in nature, 5-20 years respectively.

While personal equity and outside equity capital aren't often the most desirable methods to attract capital the best solution is simply choosing the right debt or asset monetization solution that meets your company and industry needs .

If you want to explore business financial solutions in more detail, with a view towards growth seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in tapping into second stage financing solutions.



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 BUSINESS FINANCE SOLUTIONS 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 Financing Options In Canada : Most Effective And Why

Looking For All Seasons Financing ?

OVERVIEW – Information on business financing options in Canada . Understanding various business loan and asset monetization solutions is key to your company’s financial success







Business financing options in Canada tend to be an ' all seasons' challenge. The Canadian business owner/financial manager constantly seeks different loan options and is constantly challenged to understand who to deal with, where to go, and what makes up qualifications for any specific type of financing . Let's dig in.

In a perfect world

(by the way, its not) commercial businesses in the B2B sector would choose to be 'all cash ' businesses. That won't happen as along with the costs of paying supplies, funding operating expenses and overhead the reality is that some form of debt or asset monetization is required to carry inventory, receivables, purchase equipment , etc.

Through those ongoing ' seasons' of a business year there are of course bulge requirements and seasonality, simply adding more ' excitement' to the mix.

‘Loans’ is of course the generic word that business folks associate with financing. Those fundings come from banks, commercial finance companies, and for many companies in the SME Commercial Finance need sector even the govt, via the CANADIAN GOVERNMENT GUARANTEED LOAN PROGRAM. That loan guarantees banks the majority of their principal on the loan in case of a loss

So back to our ' all seasons' approach to Canadian business financing. Typical loan needs in the business financing area include lines of credit from banks or other commercial finance companies, or equipment loans from those same banks or equipment lessors.

There is currently a healthy competition between banks and other lenders who focus on various ' niches' in business finance. As an example one alternative to the bank line of credit is the ' ABL '. It's a working capital revolving line of credit that is based on the total value of your receivables, inventory and equipment. It costs more, but 99% of the time give you more, and is much easier to access if your firm can't meet bank qualifications.

You not only need to be comfortable is assessing your options; you must ensure you have a basis sense of some key aspects of any specific type of business financing. Typical forms of business financing include:

Receivables financing / factoring / confidential receivable funding

Inventory Finance

Working capital term loans

Equipment Leasing

Tax Credit Monetization (primarily 'SR&ED ')

Asset based non bank credit lines

Purchase Order / Contract Financing

Cash Flow/ Mezzanine Financing


What are those issues that need to be addressed in any of those options for our ' all season ' approach to business loans/asset monetization? They include:

Term/amortization

Interest rates and fees

Collateral availability/quality

Owner equity issues

Personal guarantee emphasis

If you're focused on capitalizing on the best form of financing for your business, during any season! , consider seeking out and speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you with your options assessment.



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 BUSINESS FINANCE 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

Government Guaranteed Loans : Is A CSBF Your Potential Business Loan Lifesaver

We're Cutting All The Red Tape In The Gov't Guaranteed Business Loan

OVERVIEW – Information on government guaranteed loans in Canada . The ‘ CSBF ‘ business loan satisfies the capital needs of thousands of business people and entrepreneurs every year

The Government guaranteed business loan in Canada is quite often the financing that entrepreneurs in start ups and ' small business ' require to access capital for financial assistance. In many cases it's the ' lifesaver ' that the business owner is looking for. Welcome to CSBF (Canadian Small Business Financing) loans 101. Let's dig in.

Most business people in Canada, rightly or wrongly, associate anything to do with ' government' as mired in red tape/bureaucracy. That really isn’t the case with the Govt SBL (Small Business Loan) program. It certainly can be though if you're poorly armed with key critical info on the program itself, how to access it, and, most importantly, how to get approved!

By the way, do Not apply if you're a large business - and the program clearly defines that as any business with over 5 Million dollars in revenue. The actual size of the loan portfolio by the way is in fact ' large ', with billions being financed every year for thousands of applicants.

There's not mystery as to the popularity of the program, as top experts tell us everyday that it's ' Small ' business that generates employment and taxes in a big way

Why then do business people/entrepreneurs bother to investigate this type of loan? While many focus a lot of time and effort on raising equity capital from friends and family, angel investors, VC's, etc they are more often than not disappointed by their efforts in this area.

What is the appeal of the SBL loan? First of all its, longer repayment terms, as typical terms are 5-7 years. Secondly, approval is much easier as compared to traditional bank financing or other offerings from Commercial Finance companies that lend to the SME sector

It’s necessary to understand the type of loan you are applying for. For a starter, much a surprise to many is that there is no loan from the government. Industry Canada sponsors and administers the program and it simply guarantees the loans to Canadian chartered banks that provide these loans Banks therefore are more open to providing loans that in other cases they would not make!

Key to being successful is knowing what the program DOES NOT finance - and that’s working capital and inventory. It also does not refinance current debt. What it does fund is equipment, leasehold improvements and real estate.

If you're looking for a prompt answer , instead of ' maybe yes', or ' maybe no' when it comes to government backed loans in Canada seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you cut red tape and make govt loans your lifesaver for capital.


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 GOV’T GUARANTEED 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