Asset Based Loans : A New Model In Commercial Financing & Business Credit

Asset based Loans – Our Version Of Genetically Modified Business Lines Of Credit

OVERVIEW – Information on asset based loans in Canada. Commercial financing solutions derive from the true value of your business assets

Asset based loans in Canada - from our perspective here in the trenches a great analogy of this type of commercial financing is that this type of finance is in effect ' genetically modified ' business credit. That expression is typically defined as something that has been altered using' engineering techniques'. Let's dig in.

When it comes to commercial finance in Canada our banks kind of lump your business into a couple of basic categories - investment grade, or middle market and SME Commercial. Early stage revenue companies or start ups are at the lower end of credit quality when it comes to SME COMMERCIAL FINANCE needs.

The reason your firm might qualify for more business credit than the owner/financial mgr might think all comes back to one word - assets. They become the true collateral in business borrowing - and there's quite often a huge difference in what you're eligible to finance relative to what your financial statements say.

The typical types of collateral are inventory, receivables, and fixed assets. In today’s more high tech world other assets can sometimes be considered - that might be things like patents, or rights or contracts, etc.

Things aren’t really as complex as some might think when it comes to asset financing. Some very basic formulas drive the entire industry. A quick recap of those formulas?

Receivables - 90% financing
Inventory - % of cost
Fixed assets - current sale/market values (typically achieved by a 3rd party appraisal)

Those 3 formulas compare very favorably when it comes to bank financing - that's of course because of the more conservative stance our banks take on the ability to value your assets. Commercial finance firms on the other hand tend to have more expertise (and time to spend) on understanding what your assets are truly worth.

Business credit lines that are achieved through asset based loans are a strong alternative to bank revolving credit facilities. Although they will cost more the immediate liquidity they can bring your firm is often a lifesaver in terms of growth and daily operational activities. Simply speaking, they help lessen the cash flow crunch!

If you're looking to understand more about our ' genetically modified' business finance commercial financing seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
.


Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

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 Lending : The True Package Deal In Business Credit Line & Loan Needs

Want To Get Back To Holding All The Cards In The Right Business Credit Line Search?

OVERVIEW – Information on how asset based lending delivers on business credit line needs. An ABL loan monetizes your assets into true borrowing power

Asset based lending delivers on the ability of Canadian business to secure the right type and size of business credit line that the company needs. Yet whether it’s a business loan or a revolving credit facility many business owners/ financial mgrs rarely feel that they are the ones who hold all the cards in securing and negotiating such facilities. Looking to change that? Let's dig in.

The rise of asset based credit lines has dramatically increased over the years, even though most experts agreed this form of financing has been around since the early 1900’s, starting in the U.S.

Asset finance is all about timing - it delivers on cash and working capital needs at a time when you need it most. That time, unfortunately is when traditional lenders such as Canadian chartered banks are, for whatever reason, cautious on your business or industry in general.

Asset based loans and credit facilities work best when owners/mgrs know what's currently wrong in the business and when failure is not an option.

What then is the essential difference between bank loans and the asset based loan. It's really quite simple. Banks require positive earnings, decent operating cash flow, and the ability of your company to meet various ' tests', more often than not called ' ratios'.

Asset based lending facilities? While costing more it recognizes your business has assets and the ability to move forward - those assets being able to be constantly liquidated and refinanced per your operating cycle.

While the final source of financing for some firms is getting new equity or ownership that's rarely the desired options for owners, who don't wish to dilute equity. Also, the facts are that smaller businesses in the SME Commercial area find it impractical, mainly because of their size, to rise outside financing.

When it comes to the business credit line your company needs it's important to distinguish between two words that might sound the same - ' Assets’... and ' Collateral'. While assets on the balance sheet might have a lower or higher value the asset lender focuses in on the real collateral value of your business - and then provides financing against that. When it comes to the business credit line those assets tend to be A/R, inventories, and even fixed assets that have no liens against them.

If you're looking for the ' true package' when it comes to business credit lines seek out and speak to a trusted, credible and experienced Canadian business financing advisor - helping you to get back to holding the cards in business finance negotiation.



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com

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 Financing In Canada: Growth Finance & Turnaround Options

Looking For A Business Financing Lifeline?

OVERVIEW – Information on business financing options in Canada. Whether your company requires turnaround or growth finance solutions it’s critical to understand these basics

Business financing in Canada
can be a mixture of both challenging turnaround situations as well as growth finance challenges. It's safe to say that companies grow, and decline for many different reasons. We're examining the whys and some of the ' lifelines’ around both of those situations. Let's dig in.

When you're looking for a turnaround in your business finances it's typically a ' running out of funding' situation. Many of these types of scenarios are temporary, in other circumstances long runs of not profits or cash flow lead to a non survival situation.

There are always different sources of capital and working capital for a business - they might include A/R financing, commercial banks, asset based lending solutions, equipment financing, etc. Internally businesses should never forget that even relations with suppliers can dramatically affect their cash flow.

Canadian chartered banks are often criticized for their lending practices to Canadian firms who are new or in the SME COMMERCIAL sector. We won't weigh into that argument other than to say that it often becomes difficult for a company to replace a lost funding source such as their bank relationship. Many firms access Asset based finance solutions such as factoring or inventory finance when their bank relationship ' dries up'. Firms in the retail industry rely heavily on some method of financing their key asset - inventories.

Growth finance also brings many of the same challenges as turnaround needs. That same need to financing inventory and receivables comes out of the need for businesses to financing working capital around their current assets - again it's all about A/R and inventory.

One top expert uses the term ' reputation' financing versus asset financing. In a traditional banking relationship it's all about that relation between your company and the bank - if you can satisfy banks on profits, cash flow and clean balance sheets its all systems go.

When that ' reputation' becomes tarnished out of the inability to satisfy traditional financiers it all comes back to asset based lending solutions Asset based lending solutions such as non bank credit lines or A/R Financing keep your business going until you get past historical difficulties or until the high growth you might be experiencing ' smoothes out' a bit.

Asset lenders feel very comfortable with the assets they finance - and the company benefits by getting the true financing they need to... you guessed it, survive and grow.

If you're looking for a business financing ' lifeline' seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can identify and provide the turnaround or growth finance solutions you need.


Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com




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

SR ED Tax Credits Loan Financing In Canada

Connecting The Dots In SR&ED Loan Financing In Canada : How Your Tax Credit Becomes Cash

OVERVIEW – Information on sr ed tax credits loan financing in Canada. SR ED tax credits loan financing monetizes your r&d capital investment . Utilize sr&ed finance loans to accelerate cash flow and recoup your investment in r&d

SR ED Tax Credits loan financing in Canada is all about ' connecting the dots ' in the process to recoup your R&D capital investment. That ability to understand the SR&ED process is somewhat best achieved by understanding how those ' dots' are connected.

Recouping a solid majority of your costs in the investment your firm has made in innovation in products and processes is what Canada’s Scientific Research & Experimental Development (hence the term ' sred’) is all about.

Whether your firm is a start up, emerging, or middle market private company in Canada the cash you spend in R&D probably plays a large role in your business financing mgmt challenges.

So what then is the ' game plan ' in SR&ED finance loans? Naturally it's all about ensuring you have a quality claim submitted in hopefully a timely manner. The ability to satisfy Canada Revenue Agency's requirements starts with your selection of a qualified SRED consultant to prepare the claim. We would add the reputation and quality of that persons work certainly aids in financing your claim as it simply adds credibility.

A large majority of Sred claims are eligible for a cash refund - hence the ability to finance your claim. (Some incentives require that you reduce your taxes payable with your claim). That refund can of course be used for any general company purpose, including more R&D to keep your company competitive.

Why then does financing your refund make sense? The basic reason is pretty simply - Your SR&ED refund is just that, a refund that is not repayable to the government. Thousands of firms therefore take advantage of the program and receive billions (that’s billions with a ' b'!) every year. So financing your claim does one simple thing. It accelerates your cash flow refund.

How does the SR ED tax credits loan financing strategy work ?It's a quick and efficient process involving submitting a standard application to finance as well as a copy of your actual SRED submission . Part of our ' connecting the dots' analogy involves how the different parties in an R&D refund work. Along with our aforementioned SR ED consultant your accountant is actually responsible for including the claim in your annual tax return. That starts the clock ticking for your refund.

How then does the loan work? It's essentially a ' bridge loan ' - with typically 70% of your total claim being turned into a loan with no set payment terms. The 'no monthly payments' scenario is finalized when the govt processes and sends your refund. At that time you of course receive the balance of your refund, less financing costs which have accrued over the ' waiting period'. That waiting period involves standard processing times by CRA, as well as the potential that some claims are reviewed from a financial and technical perspective.

If you're focused on speeding up cash flow and recouping a large part of your R&D investment consider SR&ED finance loans as a winning strategy - 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 - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com


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

Who's Financing Inventory and Using Purchase Order Finance (P O Finance)? Your Competitors!

Information on purchase order financing in Canada. How does P O finance and financing inventory work for firms with contracts and orders that cant be financed via your bank.

It's time. We're talking about purchase order finance in Canada, how P O finance works, and how financing inventory and contracts under those purchase orders really works in Canada. And yes, as we said, its time... to get creative with your financing challenges, and we'll demonstrate how.

And as a starter, being second never really counts, so Canadian business needs to be aware that your competitors are utilizing creative financing and inventory options for the growth and sales and profits, so why shouldn't your firm?

Canadian business owners and financial managers know that you can have all the new orders and contracts in the world, but if you can't finance them properly then you're generally fighting a losing battle to your competitors.

The reason purchase order financing is rising in popularity generally stems from the fact that traditional financing via Canadian banks for inventory and purchase orders is exceptionally, in our opinion, difficult to finance. Where the banks say no is where purchase order financing begins!

It's important for us to clarify to clients that P O finance is a general concept that might in fact include the financing of the order or contract, the inventory that might be required to fulfill the contract, and the receivable that is generated out of that sale. So it's clearly an all encompassing strategy.

The additional beauty of P O finance is simply that it gets creative, unlike many traditional types of financing that are routine and formulaic.

It's all about sitting down with your P O financing partner and discussing how unique your particular needs are. Typically when we sit down with clients this type of financing revolves around the requirements of the supplier, as well as your firm's customer, and how both of these requirements can be met with timelines and financial guidelines that make sense for all parties.

The key elements of a successful P O finance transaction are a solid non cancelable order, a qualified customer from a credit worth perspective, and specific identification around who pays who and when. It's as simple as that.

So how does all this work, asks our clients.Lets keep it simple so we can clearly demonstrate the power of this type of financing. Your firm receives an order. The P O financing firm pays your supplier via a cash or letter of credit - with your firm then receiving the goods and fulfilling the order and contract. The P O finance firm takes title to the rights in the purchase order, the inventory they have purchased on your behalf, and the receivable that is generated out of the sale. It's as simple as that. When you customer pays per the terms of your contract with them the transaction is closed and the purchase order finance firm is paid in full, less their financing charge which is typically in the 2.5-3% per month range in Canada.

In certain cases financing inventory can be arranged purely on a separate basis, but as we have noted, the total sale cycle often relies on the order, the inventory and the receivable being collateralized to make this financing work.

Speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
as to how this type of financing can benefit your firm.


Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com


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



Article Source: http://EzineArticles.com/5614956

Business Financing In Canada : Reclaiming Your Right To Loans & Capital With The Right Financial Lenders

Looking For The Swiss Army Knife Of Business Financing In Canada ?

OVERVIEW – Information on business financing in Canada. Are you familiar with a whole new array of financial lenders and loans and cash flow and working capital solutions available to your business?

Business financing in Canada has the kind of challenges that sometimes makes business owners/ financial mgrs feeling they would like a Swiss Army Knife strategy - that iconic tool that is always versatile in almost every situation. What types of financial lenders can provide your firm with loans and cash flow solutions that you need? We're talking about underwriting innovation. Let's dig in.

Most business folks these days realize that business finance is a whole new ball game these days.

In many niches of business finance needs alternative and even online lenders dominate the capital space.







Along with traditional business loans and credit facilities from Canadian chartered banks a whole array of solutions is available these days , everything from financing SR&ED tax credits and other current asset cash flow strategies such as A/R financing , inventory loans, PO financing, equipment finance, etc.

What is the appeal of alternative and online financing such as equipment leasing portals, etc? Simply speaking it’s a combination of time and efficiency complemented by the fact that a real finance approval is just around the corner - as many firms cannot acquire lowest cost bank financing due to requirements of length in business, as well as profit and cash flow and debt criteria.

While some might think that any form of nontraditional financing is the 'WILD WEST' the reality is that governments and even banks are focusing on alternative and online ' FINTECH ' ( financial technology )

solutions that services start ups and middle market firms in Canada.

The actual profile of firms that are the best candidates for alternative financing includes businesses, (perhaps like yours?) that are growing, hold some debt already and have very uneven cash flows with need for more business credit.

We note also that a lot of traditional financing prefers ' upstream' larger transactions and financings under say... a million dollars dont always get the attention they deserve given the fact that SME drives the economy. We must emphasize though that bank rates are at an all time low and any alternative nontraditional or online finance comes with a higher cost.

Time is money of course and business people have little patience these days for long approval cycles from banks or other traditional lenders.

Note also that we're not talking about consumer lending here, with heavy reliance on personal credit scores and personal assets, net worth etc. While the owner financial history may be a factor in almost all levels of financing in the SME (small to medium enterprise) sector it should never be the key factor in loan approvals.

What type of financial package should the owner /mgr be prepared to share with a business lender? The basics include:

Financial statements
Bank statements
Business plan and cash flow forecast if available (these two can be efficiently prepared at a low cost with expert outside assistance and will enhance your loan requests

Are you financially aware of business financing solutions available to your firm? Some top experts maintain that owners/mgrs continue to talk to banks when in fact they already know they don't meet criteria required!

If you want to be ' market aware' of financing solutions available to your company seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can be that Swiss Army Knife for loans and cash flow solutions you require today.



Stan Prokop - founder of 7 Park Avenue Financial –
http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com




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 Financing Turnaround : Restructuring & Fixing With Business Finance Solutions

Turn Around ! Turnaround Business Finance Solutions : How To Fix Your Company

OVERVIEW – Information on solutions for a business financing turnaround. Restructuring finance solutions to bring your company back from the brink

The business financing turnaround , commonly called ' restructuring finance ' becomes a necessity when companies find themselves on the brink of failure. The ability to turn your company around focuses on several key issues, not the least of which is ' new ' money or refinancing. The goal? Turn a business into a ' performer'. Let's dig in.

While in many cases a firm could be viewed as ' stagnant ‘it’s unfortunately a bit more dramatic than that, and whether it’s a people solution, or a monetary one the ' fix' is needed, but the solution unclear. In more dramatic circumstances a firm can be merged or acquired into a new entity.

While financial fixes and business financing solutions are almost always required it's important to note that issues such as mgmt, industry dynamics, and competition are other key factors in longer term success

What types of financing make a turnaround more plausible? Several key solutions can typically effect a positive turnaround. They include:


Revisiting operating credit line needs via a bank or Asset based lender

A/R Financing / Inventory Finance

Unsecured cash flow loans

Equipment finance/ sale leasebacks

Term loans secured by assets or cash flow

In many cases a combination of different financial solutions will bring a total solution.

More than ever the 2008-2009 financial crisis re-emphasized the fact that traditional financing can almost always not meet the needs of a turnaround. Bottom line - traditional bank type financing is not mandated to fund financial distress - simple as that. In fact even high hyper growth is rarely financeable by banks, whether financial losses or balance sheet issues are evident or not.

Many companies are already close to the brink and find themselves in the category of ' special loans' in the workout departments of banks and other lenders. If there is one finance solution that's more common a fix than others in restructuring finance it's the ABL (asset based lending) solution. That can come in the form of fixed asset financing, or more often than not a total facility that refinances your receivables, inventory, fixed assets up to and including any applicable real estate.

Asset finance can often quickly fix situations where access to operating credit is either limited or nonexistent in the face of continued ability to generate sales.

Asset lending in the wake of a turnaround situation will always be more expensive than traditional finance.

If you're looking for a financial ' fix' 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 restructuring finance needs.



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info & Contact Details :


http://www.7parkavenuefinancial.com


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