Turnaround Financing : Spring Forward With A Restructuring Expert & Specialist

Now More Than Ever You Need Turnaround Financing




OVERVIEW – Information on restructuring finance in Canada and the uses and role of a turnaround financing specialist to help ensure business survival and future return to growth and profits

Turnaround financing in Canada is a restructuring of your finance arrangements. This might come out of a fall in fortunes or even a crisis of sorts. Knowing what steps to take at that time is key , including expert help of a specialist . Let's dig in.

Naturally the goal of any business owner / financial manager in a turnaround situation is to ensure stability in the business while at the same time ensuring there are possibilities for survival, and yes... growth again. Unfortunately at this time the confidence of any existing lenders is at an all time low and must be dealt with.

One basic formula for such a change in finances is simply to assess your funding possibilities from two sources - internal, plus of course focusing on new external lenders who more often than not at this point will be focusing on the actual value of your business assets. In certain cases this might be a prudent time to consider the sale of certain assets, or, if they are critical to the business and unencumbered, a sale leaseback might be appropriate.

While equity capital from owners or an outside investor might also do the trick your business none the less will still no doubt require some fundamental changes. Suffice to say that owner or outside equity chances are also at an all time low during this period of transition.

The issue of personal guarantees is always a thorny one with the owners of the business - whether guarantees were in place prior it's safe to say they will probably be a part of any new financing to some or all extent.

The question any asset or non asset based lender will ask during this period is pretty simple - You cannot ' PROCEED TO GO ‘without some solid proof of the company's ability to generate or have cash in the future. One of the key areas lenders will also focus on at this time is to ensure all arrangements with CRA / REVENUE CANADA are brought up to date, have a pay down arrangement in place, or most likely, will be taken out with new financing.

If you thought a CASH FLOW FORECAST was a textbook item in the past welcome to the real world, at this point it's key to be able to present a realistic sales and cash flow forecast for the business. This should be utterly realistic at this point and reflect the real sales and cash inflows and outflows of the business.

The combination of a realistic turnaround plan, your cash flow forecast, as well as how you are going to handle and refinance existing assets helps guarantee a successful turnaround. Many types of financing can address the turnaround of your business - they include Asset based lending, receivable financing, equipment/sale leaseback scenarios, etc.

If you're looking to 'spring forward' and not look back on a successful restructuring seek out and speak to a specialist in this area , a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you with your 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 TURNAROUND FINANCING AND RESTRUCTURING 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

Financing A Business Purchase In Canada : Calling All Buyers

Financing A Business Purchase In Canada Is Easier Using This Information

OVERVIEW – Information on methods of financing a business purchase in Canada . Numerous options exist to buy and existing business or franchise based on amt. of financing required and the nature of uses of that finance

Financing a business purchase in Canada arises out of the strong appeal of buying an existing company that is either a turnaround prospect or simply a great investment from a profit, cash flow and growth perspective. It's important to consider some key issues in the finance of your purchase. Let's dig in.

Unlike the challenge of start up financing Canadian chartered banks are generally amenable to financing a business acquisition. By the way this includes the high growth and desirable franchise industry also. Even more desirable from a bank perspective is when a current management team wishes to execute a business purchase from the owner - given they know the daily operations and are most familiar with product, pricing, financial management etc.

The type and amount of financing you require to finance a business purchase depends on how the business is being sold, as well as the ultimate purchase price. Businesses are sold on either an ' asset ' or a ' share ' basis. It is extremely difficult to finance a share purchase in the SME Commercial environment as there is no liquidity for such a transaction for companies that are not public.

The Govt guaranteed business loan is a great vehicle to finance smaller business acquisitions up to the 350k range. A larger amount could be financed with the help of a seller take back or some new owner equity. Govt small business loans are very attractive from a rate and term perspective, but it's critical to note that only finance assets and leaseholds, not working capital.

Some basic knowledge of business valuation will aid in helping you finance the purchase. Current values of the assets must be carefully reviewed to reflect the current value of the business. At the time of acquisition it's important to know how receivables and inventories will be financed on a going forward basis.

Businesses that have a lot of goodwill attached to the purchase price will also be harder to finance. The only real way this can be achieved is through a cash flow loan, so you need to e able to demonstrate historical, present and future cash flow that is realistic to the financier of your purchase.

In many cases no single one type of financing will always complete a purchase. In those cases it will be a combination of working capital loans, term loans, cash flow loans, or real estate financing that works to complete a transaction. At the heart of any of these financings is the key point that you need to consider all the 'cash flow'

considerations related to any type of combination of financing that is employed to complete a purchase.

The one type of financing that does work to often complete an entire business purchase is an Asset Based Loan. This financing, commonly known as ABL can finance working capital, equipment and real estate all at the same time.

Successful business purchases are completed everyday in Canada. If you're looking for effective business financing to complete a business purchase seek out and speak out to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with the acquisition financing that makes sense for your 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 BUSINESS PURCHASE 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

Research Tax Credits Are Financeable In Canada : Make Your SR&ED ( sred / s red) Claim A Cash Flow Bonus

How Hard Is It To Finance Your SR&ED R&D Credit – You’d Be Surprised?

OVERVIEW – Information on SR&ED financing in Canada . SRED research tax credits under the govt SR ED program can be cash flowed at any time

SRED Research tax credits in Canada can be financed. The ability of your business to finance your SR ED claim seems to come as a surprise to many business owners who take advantage of this popular program. Let's dig in.

The concept of financing a Sr&Ed claim is really the final step in maximizing the benefits of Canada's most popular and generous refundable tax credit program for business. For those that are interested the actual name of the program is the Scientific Research and Experimental Development program.

Having gone through significant changes over the past years the R&D program is still very robust. Just how robust - well in fact thousands of firms apply and qualify every year and they claim cash credits well in excess of 3 Billion dollars annually. Naturally only firms they have an R&D aspect to their business qualify, and they must adhere to the spirit of the program. By the way claimants can claim every year, and there are many firms that file and qualify every year.

To maximize the benefit of the program - i.e. receiving your refund involves preparing a quality claim under program guidelines. This typically is done by 3rd parties known as SR&ED consultants. The benefits of using these folks is pretty simple - they have specific expertise in the program and over time they have gravitated to a contingency fee for their work - meaning of course they absorb the risk of time and preparation of your claim at no cost to your company . They then pre negotiate a fee with yourself which typically is due on receipt of your claim. In recent years these consultants were heavily scrutinized and they now actually are identified on your claim, as well as is their compensation.

While your SR ED claim can be financed during preparation, at time of filing, or post filing there is always the chance your claim could be scrutinized or audited. Typical scenarios include claim eligibility, documentation and back up; the government actually publicizes timelines for assessing your claim and issuing a refund.

In order to cash flow your SR ED credit immediately a simple application process is in place. Typical info on your business includes a copy of your claim, info on who prepared it, and your financial statements. Firms that are in early stage can still 100% qualify for SRED financing as the key collateral behind the loan is the refund itself. Many early stage firms apply and qualify for SR&ED loans.

Why benefit from a SR ED financing? It's all about cash flow, your company’s ability to turn your R&D expenses back into cash for any company purpose.

If you're interested in seeing how easy it is to finance your R&D credit 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 turning your refund into an early cash flow bonus for your business.





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 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

Working Capital Financing In Canada : A Trip Inside Finance Options for Canadian Business

5 Working Capital Options for Canadian Business

OVERVIEW – Information on working capital financing in Canada. Various finance options exist that compliment your business cash flow needs without the need to take on additional debt

Working capital financing in Canada comes with a number of finance options for the business owner/financial manager. When, and which of these options makes sense for your business. Let's dig in.

There's not a lot of argument that that premier type of cash flow financing for your business is bank financing - but let's be frank and agree that bank credit is not always available in the amount and nature of what your business needs. Goes without saying that the other attractiveness around bank credit is the fact that it is always the lowest cost of financing vis a vis interest rates, etc.

When you firm is outside the scope of borrowing from Canadian chartered banks what then are the options? The reality is that a large number of commercial finance companies have filled the gap when it comes to alternate cash flow

and working capital solutions.

In many cases you can actually duplicate the style of bank offerings, with the only drawback typically being higher rates. Additionally these offerings tend to be ' asset ' based, focusing on one or a group of assets to provide you with the financing you need. Further comfort comes from the fact that these financings can almost always provide all the capital you need.

It's important to distinguish between working capital needs and debt, as the solutions we're talking about are cash flow focused - i.e. your business operating needs.

Here are the 5 Working Capital Options you may wish to consider for your business:

A/R Financing

Inventory Finance

Asset based business revolving credit facilities

Refundable Tax Credit Financing

PO Financing / Sales Royalty finance

Probably the most popular solution used by thousands of firms is Receivable financing. By immediately cash flowing your sales, at your option, your firm replaces receivables on your balance sheet with cash. As your business grows your facility can be adjusted at any time to increase the amount of borrowing. Advances under this method of financing in fact are even more generous than the bank - typically they are 90% of all receivables under 90 days.

By considering and exploring such options as CONFIDENTIAL RECEIVABLE FINANCING you're in effect mirroring exactly the same type of facility as a bank line of credit. Only the paperwork is different and you're able to bill and collect your own accounts without any notification to any other party. It's ' business as usual ' financing!

Asset based lending, also called ' ABL ' takes your business credit line one step further. It takes into account your A/R, inventory, and equipment and puts these all under one liquid borrowing facility. As we have noted inventory financing is now a part of the borrowing mix! The higher cost of this financing can easily be justified when it comes to covering your operating needs, maintaining relationships with key suppliers and vendors, and of course , job #1 - growing your company.

If you're focused on taking your company to the next level and are currently unable to negotiate traditional bank 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 on the exploration trip of working capital options for your business.


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 WORKING CAPITAL 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 Loan Alternatives : Eliminating the Curiosity Gap On Alternative Sources Of Financing in Canada

What Scares You About Alternative Financing ?


OVERVIEW – Information on alternative sources of financing in Canada . Business loan finance can be achieved via a variety of different methods of asset monetization. The non bank alternative is gaining in popularity in Canada and here is why

Alternative sources of financing in Canada
seems to sometimes conjure up images of the unknown to Canadian business owners/financial managers. Is there anything to really be afraid of when considering this method of business loan finance? Hardly. Let's dig in.


The ongoing struggle for businesses in the small and mid market size to secure financing for their firms is leaving many more options to explore these days. It's the rise of alternate forms of financing as benchmarked to traditional Canadian chartered bank financing.

One kind of hybrid example is always worth exploring - it’s alternative finance but offered by the banks. We're referring to the Govt guaranteed business loan program, which offers term loans to borrowers who otherwise cannot access a loan based on bank traditional criteria. Well worth examining.

Alternative lenders are essentially commercial finance firms that are not funded like our banks, i.e. deposits. They are therefore ' unregulated' and operate under their own risk and lending models. More often than not these firms specialize in offering financing for certain specific types of loans or working capital solutions.

Here is a list of various forms of alternate finance:

A/R Receivable Financing

Inventory Finance

SR&ED Tax Credit Financing

Working Capital Loans

Equipment financing - Sale leaseback

Non bank Asset based business lines of credit

Sales/Royalty financing

Purchase Order Financing


All of the above solutions offer tremendous flexibility in how funding can be derived. Naturally that flexibility will almost always come with higher finance costs Because lending standards are less restrictive than the banks it allows your firm to access the finance it needs.

Really the best way to look at these forms of financing is to consider the fact that they are heavily ' asset ' based, and much lighter on things such as covenants and other restrictions. Traditional lending has almost always focused on pure cash flow generation.

For firms that had bank financing but suddenly find themselves in some form of distress or business challenge the alternative finance vehicle is a tremendous way to refinance your business when a work out with the bank cannot be established.

One key factor to assess when you’re e considering business loan finance of an alternate nature is to ensure you understand any reporting requirements. Essentially that reporting becomes the ' communication vehicle ' between yourself and the lender. In many cases that reporting can also work positively in that in can help identify additional or other types of financing you might need. Being ' self aware ‘in your overall financial condition is important, and a disciplined reporting system helps that cause.

In summary , ensure you are ' self aware ' of your businesses overall financial health , and if you're looking to explore alternative sources of 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 the curiosity gap in choices .


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 ALTERNATIVE 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

Account Receivable Cash Flow : Visualizing Cash Flow Via A Receivable Financing Solution

Is Receivable Financing and Business Cash Flow All That Important?

OVERVIEW – Information on the cost of Not utilizing effective receivable financing for Canadian business. An account receivable cash flow is essential to the patients health!

Receivable financing and the management of that asset is a key source of business success. A solid account receivable cash flow strategy allows the business owner to actually ' visualize’ success. What options are available to owners /business managers and how to external methods of financing you A/R work? Let's dig in.


It's very safe to say that nothing should ever be taken for granted when it comes to financing your business - especially for those firms in the small to mid market (SME) commercial area. Knowing the criteria that is set by banks or other commercial lenders is key.

Some of those factors include:

The amount of equity or investment you have in your business

Industry risk issues

The ability to generate profits

Management experience

A solid business plan or at a minimum a reasonable and realistic cash flow forecast

Again, very safe to say that if business assets/personal collateral don't meet minimum requirements or if the sales projections are too unrealistic we can only assume financing will be very difficult to achieve .

Understanding the relationships in your numbers is key - This can be done easily without getting to technical. Key areas to focus on are debt to equity, working capital and cash flow ratios, and asset turnover relationships such as collections and inventory turns.


How does a solid receivable financing strategy help ensure cash flow then? For a starter it provides maximum flexibility around how you run and grow your business. As businesses grow they are, whether they like it or not, forced to invest more funds A/R. . . When managed properly your receivables often become your largest source of working capital.

The ' battlefield'

for working capital revolves around your payment terms and the ability of your business to manage those terms while at the same time extending credit and growing sales. What many business owners don't realize is that carrying A/R too long will over time diminish return on equity. The key here is your ability to collect, or finance a receivable and then reinvest it in the business.






When you finance your receivables those ' numbers relationships all of a sudden make sense: Your cash conversion cycle comes down, your days sales outstanding improve, and new found cash begins earning more profits

The key to understanding the costs and benefits of an A/R finance solutions revolves around understanding that a solid facility no longer limits your firm’s ability to grow.

Receivable financing comes in the form of bank facilities or commercial non bank facilities. When bank financing can't be achieved our recommendations is a CONFIDENTIAL RECEIVABLE FINANCING facility that allows you to bill and collect and finance your own receivables without any notice to customers, suppliers, competitors, etc.

If you're visualizing ' cash flow ' 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 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 RECEIVABLE 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 Credit Line Rebirth Via An ABL Asset Based Lender

Is A Business Credit Line Your Brewing Problem ?

OVERVIEW – Information on an alternative business credit line in Canada . The ABL facility, as offered by the asset based lender provides high liquidity and can easily be compared to a Canadian chartered bank facility in terms of cost, more borrowing power, and reporting

The business credit line in Canada
has gone through a bit or transition over the last number of years - That transition comes via the Asset Based Lending (‘ ABL ' ) facility via the Asset Based lender . Let's examine why this ' rebirth ' of a traditional revolving credit facility (most commonly offered by banks) has taken Canada by somewhat of a storm. Let's dig in.

When it comes to spotting warning signs in a businesses financial situation many circumstance involves the business credit line. It quite simple really - your business either has no credit lines in place an needs working capital, or in some cases you have traditional bank financing but it cannot satisfy the needs for growth and operations . A final common scenario is the profile of firms that have had bank financing but for some reason are now self financing or , even worse, in ' special loans ' with an exit needed as quickly as possible in order to save the company .

When you're in a position to access Canadian chartered bank financing you're clearly part of the ' cash flow crowd'. ABL, the alternative borrowing scenario turns all that upside down - the total focus is on ... Assets. Almost always these are receivables, inventory, equipment, and real estate if that’s part of the mix.

That's the real trade off here - when you consider an asset based revolving facility you're no longer dependant in any big way on leverage, ratios, and covenants. Those almost always disappear in a true ABL facility.

The trade offs between bank financing and a non bank asset based line of credit are very clear. The extremes in focus between the two don't make the decision process all that difficult. Bank credit facilities are monitored much less , so while you can almost expect a major increase in borrowing power when it comes to an asset based lender the one thing you can also expect is more reporting requirements .

With respect to that increased borrowing power it's achieved simply through more generous margining on A/R and inventory. AR is typically 90% and inventory ranges from 25-75% - dependent on the liquidation value and turnover history of your firms inventory.

Also, for very large corporations the actual cost of an ABL credit line is equal to or even better than bank rates. However for the thousands of small to mid size borrowers the increased borrowing power that come with an asset based credit line will almost always mean higher borrowing costs.

Top experts in corporate finance are quickly realizing the true value of the asset based credit line. It is also used in a number of scenarios to facilitate purchase and takeover of a business.

Is the business credit line challenge ‘a brewing ' problem for your business? If you're looking for the know how, experience and knowledge of your cash flow needs seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can ensure proper financing is put in place to accommodate your 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 BUSINESS 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