Business Financing Solutions In Canada : Your Capital & Funding Fix Just Might Be In

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Are All Business Financing Solutions For New & Growth Businesses Equal ? We Think Not !

OVERVIEW – Information on business financing solutions in Canada. Funding options vary according to the type of capital you need and whether traditional or alternative financial options are available

Business financing solutions in Canada clearly demonstrate that the types of loan and cash flow financing you need are clearly not equal in value and accessibility to business owners and financial mgrs. Here's why. Let's dig in.

Many different types of business finance solutions exist - the challenge revolves around your ability to ensure you're pursuing the right type of loan or cash flow financing solution.

Many business owners/entrepreneurs aren't familiar with the Canadian govt small business loan program. We can call it the ' bread and butter ' in terms of the phrase ' government loans'. Clarification is required here because it's not the gov't that actually funds the loans, it's Canadian banks with the loan guarantee in place from the federal gov't.

For Canadian business owners timing is pretty well ... everything! That’s why with careful preparation of your submission a loan can be approved in a matter of days

Getting back to our theme of ' timing is everything ' an even more accessible solution for owners/mgrs is the working capital term loan. Often provided on an ' unsecured ' basis these loans are based primarily on the cash flow within your business bank account. There is a lot less paperwork required and funding can occur within days.

Many businesses, particularly in the SME sector (small to medium enterprise) require purchase order funding solutions when they receive orders and contracts far in excess of their normal financing capabilities. P O Financing allows companies to access new markets and larger customers, enhancing revenue growth. Most times even international orders of almost any magnitude can be financed if your firm has a qualified buyer and a legitimate supplier.

Those govt loans we referred to, specifically what most folks call the ' SBL ' program only finance two asset categories - equipment and leaseholds. Because of that most firms also require a business credit line, in some cases called an ' ABL ' line. These revolving facilities are provided by traditional financiers such as banks, and, somewhat unknown to most, commercial finance companies often referred to as 'asset based lenders '.

What information is required in order to assess your firm’s qualifications under most types of financing? It's not as complex as it might see. Traditional applications often include just financial statements, but can also be augmented by a business plan or cash flow forecast.

In all cases you should be prepared to demonstrate the type of collateral that requires financing (which might include just your sales), mgmt experience, and a solid understanding of how loans or cash flow facilities will be repaid or revolve

So yes, it’s true, not all business financing solutions are equal when it comes to benefits or qualifications. Seek out speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
to determine your exact needs and potential solutions.


Stan Prokop - founder of 7 Park Avenue Financial –
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

Government Small Business Loan Financing In Canada : We’re On The Trail Of Govt Loans

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Time To Explore Govt Business Loans In Canada ? Spoiler Alert : They Are Guaranteed By The Government!

OVERVIEW – Information on government small business loan financing in Canada . Govt funding for these loans is guaranteed , making these loans accessible to startup and growing firms with SME COMMERCIAL FINANCE needs . Loans up to maximum $ 1,000,000.00 are available for specific asset categories

Government small business loan financing in Canada should always be explored when your growing (or new) business requires external financing. But do you qualify and what exactly is the application process? We're answering those questions, so let's dig in.

Why then are govt guaranteed loans so attractive to many owners/entrepreneurs? The main reason is probably that it's an effective way of raising capital to build, grow, or buy a company. Simple as that.

Why does the govt, via ' INDUSTRY CANADA' sponsor this program? Simply speaking it's all about providing financial backing for economic growth. Andy by the way, large companies, or public companies need not apply. Small to medium sized enterprises run the economy - there's no debate about that - so that loan guarantee from the government is a valuable part of the economy.

But aren't there other alternatives to raising capital in Canada? Yes there are, but our Canadian chartered banks are more than reluctant to fund smaller start ups or businesses that have not fully matured and don’t have the profits, cash flow and collateral demanded by the banks.

We mention by the way that many entrepreneurs finance franchises through the program as it's an effective way to buy the business. Additionally any other business can be purchased through the program if the fundamentals qualify.

The program only finances two asset categories, three actually when you include real estate, although in our experience most firms finance their land and buildings through conventional commercial mortgages.

So what then does the program finance? Answer: Equipment and leasehold improvements. Simple as that.

It gets even better when you understand the flexibility and structure of the program. Rates are very competitive, prepayment options are provided, loan term flexibility can be up to 7 years, and only a small portion of the loan must be guaranteed by the owner/owners.

The government provides a loan guarantee to the Canadian chartered banks who administer the program. Hint: It's important to find a good banker who is familiar with the program. We've spent a lot of time doing that!

Qualifications for the program - owner reasonable personal credit history, a minimum down payment/equity component to the loan, a business plan and cash flow, and a proper use of the funds for the aforementioned two asset categories - equipment and leaseholds.

Is it time you explored the program? Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can ensure you're ' on the trail ' of the govt small business loan program.
P.S. The new loan cap is $1,000,000.00 so we're thinking of using the word ' small ' a lot less these days!


Stan Prokop - founder of 7 Park Avenue Financial –
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

Cash Flow Sources In Canada: The Best Working Capital Finance Solution?

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Finally! Putting Cash Flow Solution Sources Concerns To Bed

OVERVIEW - Information on cash flow sources in Canada. The best working capital finance solution is a combination of internal operating efficiencies and understand and accessing true corporate solutions that fund current assets

The working capital finance solution for your business is all about ' quicker access' to cash flow sources. The challenge? Where to find those solutions and which work best for your company? Let's dig in.

The fuel for your firm’s survival and growth is of course cash flow. It covers operating expenses and positions your business for growing sales/revenues.

There are of course a number of external methods to raise cash that are in our opinion more closely related to owner personal financials - for that reasons they are not on our ' highly recommended ' list . They include
family and friends loans, collapsing personal investments, reliance on credit cards, collateralized home mortgages. Etc. Again, they all deliver but with a heavy reliance on owner commitment. Naturally the main reasons businesses incorporate is to minimize personal risk, not add to it. Enough said.

Many businesses have existing assets that can either

be sold

be refinanced (via sale leasebacks, etc )

The sale lease back option is in fact a very viable permanent working capital solution for any business.

We've often referred to internal methods to enhance cash flow - they should not be forgotten - they include: getting deposits from clients, deferred payables to the extent you can.

The true essence of working capital in your business always comes back to both receivables and inventories A/R financing, often called ' factoring ' is the poster boy model for a cash flow solution. The ability to cash flow your sales as you generate them has a huge appeal to the thousands of Canadian businesses that utilize this method of financing.

What many business owners/financial managers don't understand is that the actual cost of A/R financing, if you're collecting your receivables promptly is in the 1 - 1/5% ranges.

If your firm has good A/R turnover and decent gross margins that's a small price to pay for virtually ' unlimited' cash flow. By the way, our recommended solution is CONFIDENTIAL RECEIVABLE FINANCING, allow businesses to bill and collect their accounts receivable, fund them, with no notice to any customers, suppliers, etc.

By the way, large and successful corporations utilize this method of financing too - in some cases they dress up the name and call it ' securitization. At the end of the day it's still a sales financing solution.

If you're focused on ' cash flow success' seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can put those working capital worries ' to bed'!

Stan Prokop - founder of 7 Park Avenue Financial –
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 : Expansion Finance & Loan Alternatives

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Looking For That Year Round All Seasons Business Financing ? Here’s Where!

OVERVIEW - Information on expansion finance solutions in Canada. Business financing and funding needs revolve around your ability to identify the right type of loan and bank or commercial non bank lender for your growth needs

Business financing in Canada often involves the need for expansion finance solutions. What is the type of loan and funding that makes growing your company work. In a perfect world

(apparently it's not) the business owner/financial mgr is seeking a year round, can we call it ' all seasons ' funding. Let's dig in.

The challenge around the size and type of funding your business need revolves around both your current needs as well as the foresight in assessing future needs. If you talk to many owners/mgrs in the SME COMMERCIAL FINANCE world it in fact often seems like a full time job!

Can the bank or other commercial lenders provide you with the financing resources you need? We of course maintain there are the right solution/solutions out there; the trick is identifying your different loan options. Identifying the option of course then creates another challenge - which business lender can best meet your needs. That's the part about understanding the proper qualifications for different types of business loan and cash flow strategies.

Given that the majority of businesses selling to other businesses don't operate on a cash basis (retailers excluded of course) the typical needs of an expanding business include salaries, carrying inventories and accounts receivable, as well as acquiring new assets.

Unfortunately in business there's rarely a ' straight line ' so cash needs fluctuate in the short and intermediate term.

Canadian banks, commercial finance companies, and even the Govt (via the Guaranteed Small Business Loan - max to 1 Million) play key roles in providing those solutions.

Funding solutions for business expansion include:

A/R financing

Inventory Loans

SR&ED Bridge loans

Commercial business credit lines/ term loans

SBL loans (The Govt guarantees and underwrites the majority of your loan)

Equipment financing

Sale Leasebacks

Asset based bridge loans and asset based revolving credit lines

Royalty Finance

P O Financing

Unsecured cash flow loans

Not to confuse things each of the above types of financing will have you considering different key issues for the type of loan or asset monetization you need.

The most critical issues include: loan term/length, amount of funds required, collateral, personal guarantees,

For a growing company it will often be the case that a combination of finance solutions is required. That's because growing sales will necessitate financing around credit line needs, fixed asset financing, term finance.

If you're looking for that ' all seasons' finance solution seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital needs.


Stan Prokop - founder of 7 Park Avenue Financial –

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 & Capital Sources In Canada : Loans & Cash Flow Solutions That Work

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Is The Business Financing Challenge Stifling Your Growth ? Sources of Capital 101

OVERVIEW – Information on business financing solutions in Canada. Knowing which capital sources suit your company when it comes to loans and cash flow finance will make or break your company

Business Financing in Canada or notably, lack thereof has this tremendous ability to stifle busing growth and opportunities. What then are the capital sources that can get you new, growing, or mature business back on track? Let's dig in.

Business capital sources often means different things to different folks. The equity in your business is often made up of assets, both fixed and liquid (receivables / inventory, etc) and the proper mgmt of them should allow you to meeting your financing and sales targets.

Naturally ' debt ' is not capital and the term ' sources of capital ' is often misunderstood. One top expert has been quoted as saying that banks and commercial lenders love their money more than they do your business... and that's probably correct.

The challenge to business owners and financial mgrs is to undertake loans and cash flow monetization solutions that can be repaid, even when times are tight. Lines of credit should be used as day to day liquidity - using them as a long term capital fix is not the right thing to do.

The best businesses that are ' ripe ' for financing solutions are those that understand the true way that cash ' flows' through their business. Your ability to have a strong handle on both historic cash flow as well as your forecast is key to assessing the right financing solution.

By the way, there might be more financing solutions out that than you might think available. They include:

A/R Financing

Inventory Loans

Short Term Working Capital Loans

Bank credit lines / term loans

Equipment Finance/Leasing

Sale Leasebacks of owned assets

Non bank asset based lines of credit

SR&ED Tax Credit Loans

Unsecured Cash Flow Loans

Govt Guaranteed Small Business Loans (New max = $1,000,000.00)

If you're feeling ' stifled' around your ability to access cash flow and loan solutions that work for you now and in the future 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 –

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 Cash Flow Financing In Canada: Improving & Understanding Loan Access & Availability

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Unlocking Business Cash Flow Financing

OVERVIEW – Information on business cash flow financing solutions in Canada. Understand loans and working capital solutions is all about these key cash flow drivers

Business cash flow financing often requires some ' straight talk ‘. The ability to finance your company properly is one of the most powerful success forces in Canadian business. But how does the business owner/financial mgr determine where new cash flow and working capital will come from, and where it went? Let's dig in.

There is in fact a very harsh and simple reality around your business cash flows. The answer ? You've simple bought assets, or generated new assets such as receivables and inventory via monies spent.

There is a natural flow in business - it's all about paying down your debt, keeping taxes up to date, building working capital assets, and generating and taking profits

How does the owner/mgr make the right choices in raising funding for your business and keeping your financials understandable - i.e. understanding where the cash in your business is ' flowing '.

Many firms are challenged by low owner equity, which compounds the owners ability to take cash out of the company.

Is there a simple secret to managing and financing your cash flow? The pros call this whole process ' operating cash flow ' it’s simply your profit or loss for the month plus or minus your changes in working capital accounts - we’re back to those receivables and inventories again.

External financing for your business will come from either term debt of business credit lines. By the way those business revolving credit facilities will come from either a bank or alternately a commercial finance company offering asset based credit line facilities.

When it comes to business credit lines the facilities that are most manageable are those when the credit line fluctuates significantly. Banks or finance firms will always look more favorably on your ability to constantly draw done and replenish the facility via your receivable and inventory turnovers.

Assets that need to be financing in your business might include plant and equipment assets, vehicles, as well as technology / software etc. Here a term debt options such as lease financing will almost always make the most sense.

What's the bottom line in accessing outside funding and managing your balance sheet properly. We summarize as follows:

- Develop a strong sense of how cash flows in your business- a good cash flow forecast based on your historical inflows and outflows helps

- Ensure your provincial and federal taxes are paid on time- If you have tax arrears they can often be consolidated into a new re-financing of your business

- Determine your business line of credit needs - this is a critical area of business cash flow financing. Remember that Canadian chartered banks are NOT the only credit line providers

- Finance long term assets with long term leases or loans

- Focus on building equity in your business via good gross margins and profits
If you’re focused on accessing the right finance solutions for your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your long term funding and working capital needs.


Stan Prokop - founder of 7 Park Avenue Financial –

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

Buying A Business In Canada: How To Hedge Your Risk With Proper Company Financing & Loans That Fit

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Avoiding Egg On Your Face Financing Mistakes When Buying A Business

OVERVIEW - Information on loans and cash flow solutions for buying a business in Canada. Acquisition finance involves company financing that matches the balance sheet and prospects for the target company

Buying a business in Canada will often involve looking beyond the numbers when it comes to ensuring proper financing can be in place. It's not all about negotiating the sale price - it's also about the necessary finance solutions that must be put in place to ensure business survival and profitability. Let's dig in.

The pros of course call it ' due diligence’. For us it's a pretty basic common sense premise: ensuring sales, inventory, accounts receivable and accounts payable are all reasonable. Bottom line- the finance solutions tie together your plans for mgmt, mfg or delivering services, and marketing.

The essence of any business, large or small, is cash management. Working capital solutions for financing an existing business include:

A/R Financing/factoring

Bank revolving credit lines

Non bank asset based lines of credit

Inventory Financing

Tax Credit Financing

Small business govt guaranteed loans (maximum 1 Million $)

Firms that are not profitable or that have ' challenged' balance sheets will not qualify for what we call ' traditional' finance. These types of companies can't comply with the financial ratios and collateral demanded by our Canadian chartered banks. Almost all businesses that sell on credit, large or small, need some sort of business credit line.

Numerous alternative financing solutions are in fact available - but at the same time new owners/mgt must be able to address and talk to items such as gross margins, operating inefficiencies, etc.

Buying a business for ' all cash ' is almost never the option available to purchasers. Top experts tell us than not even a 1/3 of businesses purchased are done via ' all cash ‘. Unfortunately sellers like/want cash! More often than not the final structure of your transaction will be:

Owner Cash

External Financing

Vendor Take Back/Seller Financing (not always, but often)

‘ABL ' (Asset Based Lending) is often a solid solution for a business financing strategy. These types of facilities allow you to borrow heavily against inventory, accounts receivable and equipment/fixed assets.

One legal/technical issue often becomes a critical point in acquisition financing. That is the issue of ‘asset sales' vs. 'share sales'. From a buyers perspective asset sales tend to make more sense - sellers focus on share and tax strategies for selling their businesses. This can often complicate financing.

We've seen there are some critical issues that can make or break the success of financing a business purchase. Those issues include proper valuation pricing, debt load, working capital and cash flow financing challenges.

If you're focused on a winning deal and financing a business purchase properly seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your funding 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


' 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