The ABL Business Credit Line Facility Is The Glaring Difference In Financing Assets

Is Your Business Credit Line Search Like An Internet 404 Error Page?

OVERVIEW – Information on the asset based business credit line facility in Canada. Financing assets such as a/r, inventory and equipment under one borrowing facility

The ABL business credit line facility is a relatively new solution that many business owners / financial mgr's are still relatively unaware of. In the case of this it's all about financing assets your company already has. When it comes to operating credit lines many business people today feel that their search for this type of financing feels somewhat like the internet error 404 page... i.e. : ' NOT FOUND'. Let's dig in.


There are not a lot of ' standby' solutions when it comes to business operating lines of credit. Frankly you've got two choices - a Canadian chartered bank facility or a non bank commercial asset based credit line. The later, often called ' ABL ' is growing more popular every day. In some cases banks will recommend to existing clients that they are more suited for asset based lending solutions.

Also, unknown to many, for larger transactions in the 5-10M range and up, banks offer these facilities- although it's somewhat up for debate among industry professionals as to whether there is a huge difference in approval criteria.

The true beauty... perhaps better called ' flexibility ' of the ABL facility is that it appeals to every type of business - start up, high growth, financially distressed, public and private organizations, and large mature organization that are for all intents and purposes doing very well. Companies who are seeking informal or legal re-organization often view asset based lending as the immediate solution to the long journey back to financial health.

Asset based credit lines almost always command higher borrowing rates, but the trade off of course is that your borrowing power and approval chances are extremely high in almost every case where your balance sheet has receivables, inventory and fixed assets. It's these three categories that combine in whole or part to give you your new revolving credit line.

It's interesting (at least to us) to see how both banks and competing commercial credit line offerings view the qualifications for financing assets. From the banks perspective it's all about ' cash flow ' - your ability to positively turn over assets combined with profits and depreciation calculations. The ABL lender simply goes to the balance sheet and values your assets - and by the way almost 99% of the time in a more generous manner than Canadian chartered banks.

What are some of the specific reasons that companies gravitate towards
the ' financing assets' approach of ABL? They include fluctuating sales, the ability to reorganize and pay down some or all of term debt on the balance sheet, and the strong alternative to the inability to access new equity capital - either public or private. By the way, an often used strategy in the ABL business credit line facility environment is the use of the borrowing to acquire a competitor or strategic partner. One expert calls this the alternative to the ' blank from the bank'!

The real formula for ABL asset financing is simpler than you might think: 90% financing of receivables, inventory finance at real market values, and equipment financing within the credit line at appraised values.

If you haven’t figured it out by now asset lenders spend a lot more time keeping tabs on your firm - by simply requested more ongoing detailed reporting and asset schedules on receivables, inventory, etc. If you have trouble providing that basic info we're suggesting you have other problems. You lower your borrowing costs by actively managing those asset categories, drawing down on your facility only as you need it.

There are some attractive and workable ' subsets' to the ABL business credit line facility. They include Inventory finance, Confidential receivable financing lines, and PO financing. Whatever your need in financing assets or achieving the right ' type' of revolving credit solution 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 solutions that will make that ' glaring difference ' in financial success . Bottom line - no more 'not found' results similar to that 404 Error page!


7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS CREDIT LINE ALTERNATIVES AND EXPERTISE






7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '


ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






Stan Prokop

Receivables Loan Finance : Accounts Receivable Financing Agreement Must Have Information

Secrets to successful non bank receivables financing in Canada . Smart strategies and effective tactics in A/R finance deliver cash flow that works

OVERVIEW – Information on accounts receivable financing agreement solutions. A receivables loan allows your company to access daily cash flow needs while running and growing your company . Doing it properly is the consideration !

An account receivable financing agreement loan (by the way, it's not a ‘loan’!) comes, as does all forms of financing, with some pros and cons. What is the secret then to maximizing the pros and eliminating or ' downsizing' those cons? Let's dig in.

An a/r funding program is one consideration for almost all Canadian business owners and managers, retail businesses excepted of course. When that struggle to obtain some, or the entire bank financing you need looms large and shortages of cash flow are an ongoing occurrence it just might be time to consider a commercial financing arrangement. The solution to the challenges you have in financing your business might then just be around the corner... if assessed and executed properly.

We've already referenced that A/R finance is not a loan in terms of taking on ' debt ‘. In actuality you're simply cash flowing your 2nd most liquid asset - your receivables. The ability to monetize sales immediately into cash is probably the largest ' pro' when it comes to accessing the working capital/cash flow you need.

Getting back directly to those 'pros and cons'. The pros often seem easier to understand and assess, if only for the reason that thousands of businesses use commercial A/R finance everyday to run and grow their business. Almost irresistible right?

So is an accounts receivable financing agreement right for your company? In practice the simplicity of this finance is almost overwhelming - turning sales into cash pretty well the same day. The legal paperwork, similar to a bank credit line agreement, allows for A/R to be financed on an ongoing basis, typically with a 90% borrowing margin. By the way, bank receivable agreements only offer a 75% borrowing base.

So for companies that can't or don't want to borrow outside capital in the forms of debt/loans a/r invoice finance seems like a marriage made in heaven. The ability to monetize sales and transform your largest ' current asset ' into operating and growth opportunities has appeal.

Traditional ' old school ' receivable finance also gets you assistance in collecting your accounts - although those firms that wish to maintain being ' masters of their domain ' can choose CONFIDENTIAL RECEIVABLE FINANCING , allowing them to bill, collect, and fund their accounts with 100% control of their mgmt/staff. Using this method of 'non notification ' keeps you 100% under the radar - let your competitors figure out how fast you're growing.

So while those competitors are out there having to consider equity capital or even providing personal assets as collateral the A/R finance solution doesn't force you dilute ownership, or, even worse, explain to the wife or husband why personal and business assets must be co mingled!

So... about those cons! When we talk to new clients about accounts receivable finance typically cost and the, shall we say ' stigma ' of a non bank solution require some healthy discussion. With respect to ' stigma' hopefully the fact that some of the largest corporations in Canada and the world utilize this and other similar forms of non bank financing should remove any of that concern.

Because the cost in receivables agreements typically is 1.5 -2% per month, as a business owner/financial manager you need to balance that
against generating more profits, being able to buy products and services more efficiently, and being able to eliminate the huge investment require to finance A/R and inventory as you grow your business.

Working with the right advisor or the commercial receivable firm is key - as issues around contract length, financing rate, and being comfortable with the firm that you are dealing with is key. Turning the ' cons' into a smart easy financing solution is the secret. 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 cash flow needs.



7 Park Avenue Financial :

http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN ACCOUNTS RECEIVABLE FINANCING EXPERTISE



7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






















Stan Prokop

Don’t Sweat Business Cash Flow Problems : Save Your Business With Proper Financing

Business Cash Flow Gone ? How To Never Lose It Again

OVERVIEW – Information on financing tools and techniques for Canadian businesses. Business cash flow problems can be eliminated – here’s how

Business cash flow problems have us recalling that saying ' don't sweat the small stuff ‘.

However in the financing challenges your company faces , working capital/cash flows are never ' small stuff ' issues and often can make or break, and even save / ruin your business depending on how you address them. Let's dig in.









By the time your business is facing daily working capital challenges everything seems ' immediate'! Challenges of meeting term or supplier obligations have some owners/managers searching for creative ways to stem cash outflow. Some of those creative ways include using CRA HST and employee super priority obligations in a less than constructive manner.

Growing your Tax Obligations is highly NOT recommended! A separate acct for your tax obligations might actually not be a bad idea. Using an outside payroll service who will handle those remittances is also a solid cash mgmt good habit.

So how do business owners ‘avoid’, as well as ' fix ' business cash flow problems? Under the avoid category there are some time tested strategies that will always work well. These include:

Focusing on proper payables mgmt - without ruining supplier relationships for key vendors. Slowing payables and speeding up collections is Cash Flow mgmt 101 - Some top cash flow experts actually recommend you assess payables in a ' must pay/important to pay/flexible to pay' viewpoint. Negotiating extended payment terms in a proper documented manner gives you maximum flexibility in key cash outflows.

So what about actual credit solutions to those business cash flow challenges? Canadian chartered banks are quickly become not the only providers of business credit. Although non bank commercial financing solutions will always be more expensive than bank capital and the right non bank lenders are also well focused on building relationships and giving you back some sense of control.

What are those ' cash flow fixes' available to replenish working capital and positive cash flows that are alternative to bank solutions?
They include:

A/R Financing
Inventory loans
PO/Contract Finance
Refundable tax credit bridge loans
Non bank asset based business credit lines
Sales/Royalty Finance
Sale Leaseback Options
Unsecured cash flow loans

How you finance your working capital needs is the financial interaction of your assets and finance solutions that make or break your business. Canadian businesses run out of cash for some reasons that are simply just too obvious that they are missed! They include:

High sales growth - leaving you highly invested in A/R and inventory - but not cash!

Paper profits that don't equal cash flow generation

Poor asset turnover / heavy investment in fixed assets / poor margins

If you're focused on saving your business future with proper financing, while avoiding business cash flow problems, 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.




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

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.

' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Sred Loan Financing Is Simply Cash Flowing Your R and D Tax Credits : No Shady Math Here For your SR ED Claim

SR&ED Financing Reverses That Going Nowhere Fast Feeling In Your SR ED Claim

OVERVIEW – Information on the finance of r and d tax credits in Canada. Sred loan financing provides ready cash flow for recovery of your SR ED claim

SR ED R and D tax credits in Canada can quite easily give Canadian business owners/ financial mgr's that ' uneasy' feeling when it comes to realizing the benefits of the program. SRED loan financing can very well remove that discomfort, allowing your company to reverse that ' going nowhere fast' feeling when it comes to recouping your cash. Let's dig in.

Suffice to say that we're quite sure that most businesses utilizing Canada’s Scientific Research & Development Program (aka’ SR&ED')
would not break their commitment to developing those new products and processes around which the program was founded even if there was no refund involved. It's that competitiveness and innovation that allow your company to survive grow and stand out.

The types and sizes of companies in Canada that utilize r and d tax credits runs the full gamut - from partnerships, start ups, to larger companies in the SME Commercial workspace.

' Government programs' tend to have a natural credibility factor in the mind of business owners/financial mgrs , yet certain programs such as SR ED as well as the Govt Guaranteed Business Loan have stood the test of time, providing well over 10 Billion $ of funding in total annually for thousands of firms just like yours.

Just as r and d is integrated into your business on an ongoing basis so can the financing of your refundable tax credit. Financing your SR ED claim all of a sudden makes a great deal (the program) even better as you realize back the cash refund aspect of the program. As a general rule the SR&ED consultants that prepare these claims for Canadian businesses can recoup almost 35% of the total amt of your spend. Claims can also be carried over from the previous year, and financed in the same manner. A true 2 for 1 bonus!

The quality and amount of your claim have a lot to do with the financing of your refund. That's because the loan value of your claim is 70% of the total refund due, and the quality of the claim helps guarantee that full govt refund, as well as the timing in which it is approved.

Maybe it's just us, but one a true irony of SR ED r and d tax credits is that your research does not even ultimately have to be successful for qualification of both approval, and even the financing. We suppose that's the govt's form of a ' participation ribbon'!

As soon as your accountants and SR&ED consultant have worked together to file your claim you are eligible for financing - however recent trends in SRED loan financing actually allow for claims to be financed for future claims also if you've started that process.

SR&ED financing is a simple business application process - with the main collateral for the loan being of course your tax refund. Loans are structured as bridge loans which allow for no payments during the duration of the loan. Definitely no ' shady math' here - just a simple finance application process with refunds typically being financed in several weeks from start to finish.

If you’re focused on reversing that ' going nowhere fast' feeling in your SR&ED process 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 SR ED R and D Tax credits finance.


7 Park Avenue Financial :
http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :

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





7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com

' Canadian Business Financing With The Intelligent Use Of Experience '


ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






Stan Prokop

Business Turnaround Financing Sources Options And Techniques

Feeling Like An Honorary Member Of The Business Financing Outsider Club?

OVERVIEW – Information on business turnaround financing services and strategies. Knowing which options are available for turn around finance is your deal breaker in business survival and success

Options in business turnaround financing services leave many clients we meet feeling as if they are business financing outsiders. Knowing they have to focus on some sort of ' financial recovery ' without knowing their sources of potential financial capital can leave owners/mgr's in a very undesirable ' limbo'. We're reviewing some financial options, techniques and go to strategies for the desired turn around. Let's dig in.

Suffice to say that in business financing knowing the problem is a huge part of the solution. While the worst case scenario is going out of business the desired solution is financing that works.

Various types of finance sources exist, both traditional and alternative to help companies in times of need when there is an operating loss or current financial structure does not allow you to pay suppliers and lenders, much less grow.

While owner or new outside equity might sometimes me desired, or even mandated that type of capital is often hard as you're turning around your business. One strategy explored by many is the possibility to merge your firm with another strategic partner or... dare we say it... competitor. In many cases declining sales and be assisted in ways such as cost cutting and operational efficiencies such as asset turnover.

Having solid cash flow projections and a realistic business plan is key to a solid turnaround strategy. That coupled with a solid understanding of current business assets and their value is the key to bouncing back financially. How you generate revenue is key in understanding potential turnaround financing solutions.

Financing solutions that properly address turnaround strategies include:

Unsecured cash flow loans

A/R Financing - Proper refinancing of sales receivables will always get you more cash

Inventory loans

Asset based non - bank business lines of credit (loan advances for these credit lines are much more generous than traditional Canadian chartered bank alternatives

Sale leaseback strategies - In many case proper appraisals of fixed or current assets may well be required by external sources

PO Financing

Sales/Royalty financing

Proper financing of your current assets (A/R / INVENTORIES) allows you turn inventories into receivables into cash in an ongoing cycle. ASSET TURNOVER IS KEY!

In many cases turnaround financing is a temporary fix - typical time frames are from 12-24 months; naturally business owners should be focusing on the long term plan also. Survive and then thrive might well be the mantra!

Outside collateral and personal guarantees of owners will almost always (unfortunately) be on the discussion table. Also, it's important to note that cash flow also comes from effective payables mgmt., as well as limiting extended terms to your customers.

Some of the strategies mentioned above involve your ability to maximize asset turnover and recognize proper valuation of your assets. Simple strategies such as the ' sale lease back ' of asset you already own can bring in valuable capital to pay off or re-arrange debt.

In any turnaround strategy it's important to address any government debt such as CRA arrears, HST, etc. New ' turnaround ' financing will often address this govt debt first because of the ' super priority' the govt has on all businesses.

Once new financing is in place your focus should be on managing cash flow and balance sheet activity. Just the ability to properly forecast a realistic future cash flow need goes a long way in arranging new financing. While lenders always have a long term focus on ' getting out' and getting paid the business owner/mgr's skills in showing control and minimizing risk is key.

If you want to become an insider, as opposed to your current business financing outsider status 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 business turnaround financing services / options.


7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS TURNAROUND FINANCING EXPERTISE




7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






Stan Prokop

Asset Based Invoice Finance : Steady To A Fault Receivable Factoring Solutions

Is Your Company One To Take Advantage Of Receivable Financing ?

OVERVIEW – Information on the advantages of asset based invoice finance in Canada . Who offers receivable factoring and how does this business finance solution provide all the cash flow your business needs

Asset based invoice finance solutions , also known as ' receivable factoring / invoicing financing ' has become a ' steady as a fault ' business finance solution for thousands of Canadian businesses who utilize it as their main cash flow / working capital source . Why... and how? Let's dig in.

Thousands of businesses in Canada find it a challenge to manage their businesses from ' get up and go ' to a ' get up and grow ' stages. Firms that are new, smaller, or financially challenged in some way find it even more difficult...


So how does this all work? It’s simpler than you might think. Given that your accounts receivable are typically the largest next to liquid cash asset that your company has, this asset becomes your short term financing strategy. The result? With the right solution in place you're now in a position to meet payrolls, buy products and services, and... dare we say it... grow your business.

By ' pledging' your receivables as the asset you are ' monetizing ‘you’re in effect securing ongoing short term lending. Here it's important to emphasize though this is not a loan / debt scenario. The Receivable factoring paperwork/security documents position your company as selling your receivables as you generate sales to access the amount of cash flow you need.

While Canadian chartered banks have ' dabbled' in asset based invoice finance the reality is that on balance 99.9% of all receivable invoice financing is done via commercial finance firms who compete with the banks for your working capital business credit lines .

If it was all about price and rate the banks would win hands down, given that commercial receivable financing from factor firms is more expensive than those low bank rates. The reality though is that many businesses can't qualify for the amount of financing they need in part or whole.

If you're looking for some even better news in how these facilities working then consider looking into Confidential Receivable Financing, which allows you to garner all the benefits of ' traditional’.. aka ' old school' factoring but given you the power to do all the invoicing and collecting with no notice to your clients, suppliers, etc. This eliminates the ' notification' required by old school firms that insist your clients be notified of whets going on.

The majority of firms that utilized asset based invoice finance do this as a bridge to going back to accessing traditional bank capital. Typical current scenarios in their businesses include:

- An urgent requirement for cash flow
- Inability to get Canadian chartered bank financing
- Requiring more cash flow than is typically available
- High growth
- The requirement to carry higher levels of inventory and A/R

The formula for receivable factoring is quite simple:

Your receivables are eligible for 90% financing of your month end a/r for all accounts under 90 days (Note - if you have a/r over 90 days you probably have a bigger problem )

In summary receivable factoring is not a loan, brings no debt to your balance sheet, is easier to get approved, and allows you to grow in an almost unlimited manner as long as you have revenues that are stable or growing .

If you're suspecting that the bank financing you seek is somewhat remaining in the bank vaults 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 ' steady to a fault ' financing solutions .


7 Park Avenue Financial :

http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN ASSET BASED INVOICE & RECEIVABLE FINANCING EXPERTISE



7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






Stan Prokop

Working Capital Finance Evaluation : Where’s The Buffet In Your Financing Sources?

Avoiding Your Minute By Minute Cash Flow Crisis

OVERVIEW – Information on working capital finance alternatives in Canada . The right financing sources make the difference in the financial growth and success of your business

Working capital finance , we've always thought, should be somewhat like a ' buffet ' of financing sources for Canadian business owners and financial managers. These folks are trying to avoid the seemingly ' minute by minute' cash flow crunches that any business might experience. Let's dig in.


So, where's the buffet?

No one doubts the number of products and related services supplied by Canadian chartered banks - including both cash flow financing products as well as traditional term loans. Suffice to say that our banks are focused on providing large amounts of almost unlimited capital to businesses that present limited risk. Naturally thousands of businesses in Canada don't fall into this category of both need and size - therefore alternate sources of capital are as important as ever.

The alternative to bank financing for working capital and cash flow needs is the commercial finance companies that are more comfortable with risk and are less regulated than our banks. A great example of this are the ' asset based 'lenders that dominate the market.

These firms lend against collateral and assets - with much less focus on those 'ratios' and ' covenants' that our banks tend to focus on. The result? Greater access to capital and terms and structures that business owners can live with as they grow revenues and. hopefully...profits.

One of the main areas of commercial financing in Canada that is a solid substitute for bank financing is receivable/factoring finance. These solutions, coupled with creative mgmt of vendor payables will often provide the business owner/financial manager with the short term working capital they need. That includes the 'seasonal' or 'bulge' needs that many firms experience in their search for cash flow.

One area that is often misunderstood or overlooked by business in Canada is the Canadian Govt Small Business Loan. While not a good example of a ' working capital ' or ' cash flow ' solution it's a solid financing mechanism for equipment or leasehold improvement needs.

While many businesses in Canada continue to search for the holy grail of debt financing or VC finance solutions they often overlook alternate methods of financing their business that don't dilute equity , and these solutions often allow the business owner to avoid credit cards and personal collateral mortgages as the solution to capital needs.
Bottom line - separate your business financial life from your personal financial life is what we've always counseled clients.

What do both traditional and alternative business lenders focus on in assessing your overall credit needs? Cash flow projections are critical, and when properly prepared and both limit the amount you need to borrow and potentially highlight ways in which you can better manage cash.

Those same cash flow projections will typically also identify whether you need long term debt of some sort of short term cyclical working capital and cash flow. The reality of business financing is that short term borrowing are typically cheaper and don't add debt to the balance sheet.

So what are those forms of different working capital solutions? They include:

A/R Financing
Inventory Finance
Asset based non bank lines of credit
PO Financing
Tax Credit (SR&ED) bridge loans
Sales/Royalty Financing

If you're looking for the ' buffet ' when it comes to working capital and finance sources, with a view towards ending those daily cash flow crisis’s 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 proper evaluation of your cash flow needs .


7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN WORKING CAPITAL & CASH FLOW EXPERTISE


7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '



ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.






Stan Prokop