SME Finance Solutions For Canadian Business : Business Financing For Company Loans & Cash Flow Requirements

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How To Fix Your SME FINANCE Needs In Canada : Tailor Made Loans & Cash Flow Solutions

OVERVIEW – Information on business financing in Canada. SME Finance solutions are more relevant than ever in your search for cash flow nirvana and loans that make sense

SME FINANCE (that’s ' small to medium enterprise ‘) in Canada no doubt requires a fix (or fixes?) of some sort. Getting a tailor made business financing solution for the loans and cash flow solutions you need is not easy, but where there's a will there's a way. Let's dig in.

Alternative financing solutions are a new and appealing part of the Canadian business landscape. These solutions are of course available to any firm, both public and private, but we're quite sure the majority of firms that use these solutions are privately held.

At a certain point in time every business comes to that turning point where equity no longer works and debt or cash flow solution decisions must be made. Now ' leverage ' seems to make a lot more sense than equity dilution.

Alternative finance loan and asset monetization is almost always more expensive than bank debt. But from the owner/entrepreneurs point of view working capital and cash flow costs far outweigh equity /ownership dilution - especially for growing firms with promise.

Let us not forget also that even established firms with relatively good financials often can't ' tap ' the financing they need. And going the VC/Private Equity route makes sense only for the smallest % of Canadian business

So what are in fact some of those ' tailor made' solutions that might be highly applicable to your business finance needs. They include:

Factoring

Confidential Receivable Financing

Inventory loans

Bridge loans

ABL loans (non bank asset based business lines of credit)

Equipment leases/sale leasebacks

Unsecured cash flow loans

Govt Guaranteed Small Business Loans

Sales Royalty Finance

SR&ED Tax credit financing

Important Point: Owners/ financial managers should understand the following:

1. In some cases these alternative finance solutions can be combined or added on to one another

2. In some cases it's possible to have traditional bank financing in place as well as an alternative financing vehicle backstopping your bank facility

3. While the majority of these solutions are almost always used to finance operations and growth it's important to note that they can also be used to acquire a company or to finance a management or leveraged buyout

If you're looking for the right ' fix' or a ' tailor made' solution for your business financing needs in Canada seek out and speak to a trusted, credible and experienced Canadian business financing to fully understand the requirements and benefits .


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

Financing Assets : Let An Equipment Finance Company Get The Job Done

How To Fix The Problem Of Acquiring Business Assets

OVERVIEW – Information on financing assets in Canada. The equipment lease company solutions your firm has access to provide a multitude of flexibilities in your consideration for fixed asset investments in equipment, technology, rolling stock, software, etc .

Financing assets for any business is a key challenge for owners/mgrs. How then to fix that problem? The answer may well lie in the solutions provided by the right business equipment finance company. Let's dig in.

The popularity of equipment leasing is proven if only for the fact that it's commonly used in almost every country in the world these days. Here it's always about the value of the asset and its ability to generate profits and cash as well as of course growing sales.

The right lease partner or advisor will have the ability to understand how leased assets help your business and industry.

Lease financing is all about ' use ' of the asset, as well as easy acquisition. In many cases you are able to ensure the asset title and ownership passes fully to you the lessee at the end of the term. Asset ownership does not pass when you choose to enter into an ' operating lease ' or rental.

The true life of the asset / assets you are financing is an important concept to understand. Your goal, should you choose to accept it? Simply speaking - match the cash outflows of your lease payment to the overall useful life of the asset.

We mentioned rentals/operating leases already - they are used for temporary uses of assets - a good example is computer and software leasing where assets need to be refreshed continually due to technology changes.

Naturally owners / mgrs have the option to utilize bank term loans as another way of acquiring assets. The key benefit of leasing is touted as little or no down payment - i.e. 100% financing. We encourage all our clients to use any form of ' lease vs. buy ' analysis to ensure they are entering into the right financial arrangement. Here you are well reminded to ensure you understand the balance sheet and tax implications of buying, owning, and depreciating any asset on your balance sheet.

While in many cases you might pay more for the overall lease transaction ( not always, but sometimes ) don't ignore the ability to have the flexibility to structure cash flows, re-do the lease, or ensuring you have some options that might make sense at end of lease term.

So who in fact are the ' key players' in Canadian equipment finance? Fortunately, or unfortunately, depending on how you look at it there are numerous firms that offer these solutions. They include some banks, manufacturers themselves (captive finance firms) as well as commercial independent finance companies.

Knowing which leasing company can address your working capital needs as they relate to acquiring fixed assets is key. Not every firm can qualify for all the bank financing they need - so they aren't able to acquire what the pros call ' conventional finance '.

If your firm is considered very ' credit worthy ‘why would you consider a non bank commercial finance company? The answer? It's a simply and faster method of closing a transaction purchase , while at the same time not restricting other credit line needs your firm might have .

If you truly want to ' fix ' the problem of putting new assets into your business on a one time or continuous basis seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can make the job of ' financing assets' easier.



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

Alternative Financing For Cash Flow In Canada : Chasing Down the Right Factoring Company Solution Just Got Easier

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This Might Be Your First Rodeo On Alternative Financing, But Not Ours! Check Out These Cash Flow Solutions

OVERVIEW – Information on alternative financing in Canada. The type of solution delivered by a factoring company or asset based lender for cash flow requirements should be checked out and understood by all owners/mgrs with SME COMMERCIAL FINANCE

Alternative business financing for some folks might mean thoughts of their ' first trip to the rodeo '. Not us though, so we're sharing some of the best factoring company cash flow solutions available in Canada today.

Many private companies in search of SME COMMERCIAL FINANCE solutions have the one pre - requisite for this type of financing: Sales and a customer base! These firms often cannot secure what we term ' traditional bank financing ' because they can't satisfy some of the basic criteria for bank loans and business revolving credit facilities.

Those requirements? Strong financial statements, assets, collateral, cash flow, and positive credit history. Have we forgotten anything? Yes, that focus on personal guarantees. (Note - Personal guarantees are a part of almost any financing for small to medium businesses - but with Canadian banks they are a key focus point)

Why does receivable financing, aka ' factoring' work so well then. For one reason it's because your clients are often broadly diversified and represent a good credit risk to the lender in terms of diversification. Firms whose client base includes larger well known companies find themselves in even better shape when it comes to negotiating receivable finance rates and terms.
Our recommended solution in this whole area? We thought you would never ask! It’s CONFIDENTIAL RECEIVABLE FINANCING – Allowing your firm to bill and collect its own invoices, thereby financing all your sales, with no notification to any supplier, client, etc.! Check it out.

Firms that are ' service ' firms find themselves even in greater need than typical mfg type companies. That's because one of their prime expenses is payroll which creates a high cash flow need, coupled with the fact that they don't have a heavy investments in fixed assets, inventories, or other collateral. In the cases of ' tech ' firms their assets might in fact often be intellectual property of intangibles such as software, etc.

Even if your clients are overseas / international those receivables can also be financed under a factoring solution by adding a credit insurance component to your borrowing facility.

If there is one reason (among many) that thousands of business owners/financial mgrs utilize A/R financing is that it's fast and flexible. In the case of growing companies the problem is even more basic:

Their revenues are growing faster than their access to credit lines!

Why does the factoring company itself like their business? Simple! They aren't lenders per se, they don't offer business debt, they are simply purchasing your receivables on an ongoing basis in order to provide your firm with working capital it needs. No new debt comes on your balance sheet.

Unlike our regulated Canadian banking system factor firms don't have any of the legal of regulatory issues that challenge major Can financial institutions such as banks and insurance companies.

If you’re tired of chasing down financing solutions that make sense for your firm and industry seek out and speak to a trusted credible and experienced Canadian business financing advisor who can assist you with your cash flow and factoring company 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

Business Financing & Cash Flow Alternatives: Stop Pretending These Finance Alternatives Aren’t for you

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Looking For Some Cash Flow Fuel ? Try These Options !

OVERVIEW – Information on different cash flow solutions that many businesses may not have considered. Business Financing should be all about finance alternatives

Business financing is all about ensuring your firm has the ' fuel ' to operate and grow your company. But do some owners/financial mgrs sometimes fool themselves by thinking their current cash flow and finance alternatives work? We think that might be the case. Let's dig in.

Companies with different types of assets require a complete understanding of how those assets can be liquidated, acquired, or monetized. In some cases traditional bank type lending might give your firm the lending solution that you need. That's of course up to the bank in most part, based on the overall financial condition of your business.

For those that can't access all, ( or any ?! ) of the finances they need a revolving line of credit from an asset based lender will allow your firm to secure the type of cash flow / working capital you need. It should also never be forgotten that simply managing payables and maximizing supplier credit is a key to overall cash flow mgmt. Companies with the potential to secure new large orders / contracts should also consider export guarantees or P O financing.

There are some more esoteric and not always considered options that in the past have been more exclusive and reserved for larger companies. These include ' securitizing ‘your sales, or considering a convertible debt solution.

A more commonly accessed type of funding is mezzanine finance, essentially unsecured cash flow loans. They are often reviewed as a ' bridge; between debt finance and the dreaded ' equity ' dilution that is not desired by owners wishing to retain full ownership and control.

Some individual and unique ' subsets' of asset based lending strategies include:

Confidential Receivable Financing

Purchase Order Finance

Leasing Assets

Royalty finance

Those latter 3 solutions distinguish themselves because they provide billions of dollars of capital for SME COMMERCIAL FINANCE needs in ... are you read y???.. a very short period of time! It's all about quick access to cash as far as most firms are concerned. At least that's what business folks tell us. They hate it when financing stifles their ability to ' seize the moment ' when it comes to new sales opportunities.

While personal owner guarantees are required in almost all of Canadian business financing for private firms the reality is that there is less emphasis on these guarantees when it comes to various alternative finance solutions. But for the most part it's all about ' timelines' and the ability to access cash.

If your company is looking for some cash flow ' fuel' from forms of finance that will help you grow and run your business seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist. Stop pretending that newer forms of business finance aren't for you!





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 Finance In Canada : The Brave New World Of Alternative Financing & Cash Flow Solutions

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Is Your Business Financing Feeling Like The July 12 Disco Demolition Fiasco? ! We’ve Got Some Ideas On That

OVERVIEW – Information on business finance alternatives in Canada. Cash flow loans and other alternative financing solutions are the new frontier in business financing in Canada

Business finance funding for many Canadian firms often seems just out of reach for many owners/financial mgrs. Those owners and managers might even feel as if their finance challenges are somewhat impossible, almost like the July 12 1979 Disco Demo Night! (On that day a Chicago DJ organized a ' disco sucks’ protest at Chicago's Comiskey Park. The 5000 invited fans turned into a riot of 70,000 of epic proportion and damage).

Although bank financing is often critical for the ultimate success of many firms there is access to finance today in numerous other forms. These solutions tend to fill the ' growth gap ' that perceived / real credit crunches deliver to the stifling of a firm’s growth.

When it comes to low cost and low risk our Canadian chartered banks deliver on the many longer term solutions for business finance needs. Although the requirements are pretty basic, and common sense, many firms, perhaps yours , can't prove or provide stability in cash flow, smooth growth, and collateral and or covenants and personal guarantees.

4 sources of business financing you may not have considered are:

Asset based lending / non bank lines of credit

Factoring/ Confidential Receivable Finance

P O Financing

Equipment Financing (Lease finance is often both a traditional and alternative method of acquiring and financing new assets) Almost any new or used equipment asset can be financed these days, even software to run your business!

Start up and early stage growth firms should well consider the Canadian govt small business guaranteed loan program, providing a govt guaranteed loan via your bank for 90% of the loan amount, which now is up to $1,000,000.00 as a loan amt cap.


We always point out to clients that various forms of equity finance could be considered; these include bonds, private capital pools, private equity, angel investors, crowdfunding, etc. However these solutions are a road less travelled and take a ton of time with only the smallest per cent age of firms ready or succeeding in these areas.

If you're looking to feel better about business finance alternatives available to your firm seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with identifying the right mix of solution and funding/capital amount your business needs.. to grow!


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 Finance In Canada : Do Your Debt Finance & Cash Flow Solutions Work ?

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Is Your Firm Just Surviving Without The Right Financial Solutions?

OVERVIEW – Information on business finance in Canada. Choosing the right debt financing and cash flow solutions for your companies helps guarantee business success

Business finance in Canada still relies a lot on the old days. If that's how owners and financial mgrs look at things these days they just might be surprised at the amount of debt financing and cash flow solutions available if you're aware of the criteria and how they work. Let's dig in.

Again going back to those old days the lending model for companies place a high reliance on your ability to prove cash flow as what our good bankers call ' primary source of repayment'.

The good news?

Many new techniques have emerged over the last number of years that allow your firm to access capital. It's a combination of new lending solutions combined with technologies and techniques that allow a lot more flexibility loan and cash flow solutions.

What we're talking about could well be described as ‘transactional lending' ; loans and cash flow monetization strategies that focus on your assets and less reliant on what traditional bank lending tends to be focused on . That focus historically has been ratios and covenants, debt load, gross margins, etc. Those are all important but any deviation in those will often lead to severe credit limitations on your firms borrowing ability.

Many smaller transactions , especially in the SME COMMERCIAL FINANCE space in fact utilize some quick ' credit scoring ' techniques that could quickly have your firm borrowing up to several hundred thousand dollars Bank borrowing traditionally has been based on ' relationships' with your bank and a fair amount of contact over time.

We never under emphasize with our clients the ongoing need to be able produce timely financial statement and asset reporting data, typically aged payables, receivables, inventory lists, etc.

It's critical to understand that most financing solutions should typically be matched to a direct need. A basic list of financing solutions available to almost every business includes:

A/R Financing/ Confidential receivable finance

Inventory Loans

Tax Credit Bridge Loans (Typically SR&ED)

Sale Leasebacks

Asset based business credit lines

Unsecured cash flow loans

Govt Guaranteed Small Business Loans (maximum to $ 1,000,000.00)

Equipment Leasing

When you can meet requirements for personal credit, collateral, and owner equity in the business bank financing offers the lowest financing cost with a strong amount of flexibility.

The ability of owners, mgrs, entrepreneurs to successfully address the limitations they face in financing their business will go a long way to long term financial success. 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 short and long term financial requirements.



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