Acquisition Funding In Canada : Financing The Management Buyout Via Specialized Finance

Tweet




One Size Fits All Financing Doesn’t Work In Mgmt Buyouts & Acquisition Finance

OVERVIEW – Information on management buyouts in Canada. Acquisition funding via a leveraged or traditional finance solution requires addressing several key issues

Management buyout financing and acquisition funding is all about successfully engineering the executing on the finance solution - and we can pretty well guarantee our clients that ' one size doesn't fit all '! Let's dig in.

These opportunities also aren't always coming up so the ability to buy a firm you're associated with, or to capitalize on a business opportunity is often associated with the right timing.

It's also very easy to get ' stuck ' on a transaction such as this, as a myriad of non financial issues also come up - employees, customers, strategies, valuation, and on it goes ..

In some cases you might be looking at purchasing a franchise directly from the franchisor, or perhaps a current owner who wishes to sell. The Canadian franchise industry can only be called explosive and it plays a key role in the economy of Canada. The ability to 'partner' with a franchisor successfully helps guarantee a good acquisition. Some very specialized financing can help complete such an acquisition.



Let's examine some practical tips and strategies for getting ' unstuck ' on a transaction such as this.

Obtaining seller financials is key to any sort of mgmt buy out or leveraged buyout. Key point : Many alternative finance solutions are available to buy a business, but they really on a decent level of financial transparency on how the business is doing, what the actual value of assets is, etc. The ability to distinguish between internal and external financials, as well as obtaining current interim financials is key.


Purchasers and your financiers will want a proper representation of specific assets and liabilities on the balance sheet. Great care should be taken in qualifying key assets such as accounts receivable... from a simple point... are they collectible?!


Naturally there is no guarantee that any existing or future A/R item will in fact be collectible, and no one is going to guarantee that for you. Some solid credit checks on the quality of the A/R base is highly in order, as well as looking at historical payment trends of the client base. You also want to ensure there is no right of set off against the receivables, and it certainly not uncommon for us to see the A/R as often the largest asset on the balance sheet.

A great strategy for Purchasers contemplating a leveraged management buyout funding is to make some sort of agreement on the ability to ' rejig ' the final price subject to A/R collectability. Naturally owners of the company might be reluctant to do that.

Is there anything trickier than ' inventory ' with respect to classifying quality and true value of inventory, which might of course be raw materials, work in process, or finished goods. Make a solid effort to quantify the quality of the inventory you are purchasing with respect to issues such as obsolescence.

Plant and equipment should always be appraised in some manner on funding a management buys in. This quite frankly protects all parties, and we urge clients to complete an appraisal that includes some component of fair market value, orderly liquidation value, and forced liquidation. Those numbers will vary significantly in any appraisal and play a key role in the way in which assets are financing in a real management buyout. It goes without saying of course that the purchaser should ultimately be comfortable with the quality and condition of the fixed assets on the balance sheet they are contemplating financing.

Don't forget also to look any leases or contracts that might be in place via the current business owner. You will want to make sure these are assignable to yourself in the event of a completed sale.

How then is acquisition financing most commonly achieved in Canada.
Solutions include:

Govt guaranteed loans

Asset based lenders

Private equity funding

Canadian commercial chartered banks

Business Development Corp term loans


A great transaction occurs when you have a company that is both profitable and has key assets that are financeable, i.e. the receivables, inventory and equipment we highlighted earlier. That isn't always the case, and as we noted, every business and industry is different .Speak to a trusted, credible and experienced Canadian business financing advisor for assistance in successfully completing you buy in via a leveraged funding.


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

Sale Leaseback Strategies In Canada : Asset Loans Via The Lease Back Bridge Loan Work !

Tweet





Whatever Happened To Sale Leasebacks ? Answer: Nothing ! They Still Work

OVERVIEW – Information on sale leaseback strategies in Canada . Asset loans via a bridge loan / lease back provides valuable working capital and cash flow when you need it most

A sale leaseback bridge loan in Canada is often the answer to a working capital or cash flow shortfall. The fact of the matter is that every business, probably yours, has its own story as it relates to business financing needs. Utilizing asset loans on equipment, real estate and other assets you own (i.e. technology, etc) is a time proven fix to capital and funding needs that are often driven by short term fluctuations in your business. Let's dig in.

Hopefully everyone understands the lease back concept. It couldn't be simpler. Your firm refinances, via a bridge loan or lease an asset or assets that you already own and are unencumbered by any liens. Typically your goal is to continue to use and benefit from the asset, as title reverts back to your company at the end of the lease or loan.

Depending on what asset/assets you are refinancing an appraisal often will protect both the seller and the financier. The concept of ' fair market value ' is key in asset loan refinancing. Be forewarned though that often lenders will take a prudent approach and in some cases focus on liquidation value as opposed to market values.

Owners and financial mgrs should also understand there are some accounting issues that come with bridge loan leaseback financing. This involves your balance sheet as well as issues that might come up in original cost, book value, etc. Although the majority of business assets ( depreciate ( unfortunately !) the reality is that certain fixed assets, as well as real estate of course could appreciate and grow in value over time.

Sale leasebacks are structured in various ways, but it's a short list. Typical transactions use capital lease paperwork. Term loans via a bridge loan can also be utilized, and in the case of real estate commercial mortgages are often utilized. Remember that notwithstanding what we call the transaction, or how it is ' papered ' and ' collateralized ' the reality is that you still use and benefit from the asset , while at the same time benefiting from the cash and working capital received under the leaseback.

While there might be cheaper ways to borrow cash or monetize owned assets the reality is that asset loans deliver on raising cash when it's often most needed. Remember also that in many cases this type of strategy allows you to re-do' your overall financing strategy as it relates to debt load, ratios, and bank covenants. It's a real win win when your use of funds is used to generate further sales and profits.

If you're focused on refinancing assets via the lease back strategy seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you understand risk 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

Business Equipment Leasing In Canada : How To Stay Competitive With Help From Lease Financing

Tweet



Looking For A Match Made In ( Business ) Heaven?

The Right Lease Is All About The Right Partner & Solution

OVERVIEW – Information on business equipment leasing in Canada. The right type of lease financing is all about when.. and with whom

Business equipment leasing can help your business stay competitive. That shouldn’t be a mystery if your company either once in awhile, or constantly needs to replace assets or technology in your business.
As always, it's a question of the right time and right place. Let's dig in.


So exactly when should owners and business/financial mgrs consider the lease financing alternative? We're glad you asked, as we’ve got some basic do’s and don'ts on what works and when, and as importantly, with whom!

Forgive us in advance if you think it's been overdone or understated, but ensure you haven't ignored the benefits of equipment finance. Those benefits are often benchmarked when you get into issues such as ' pride of ownership ‘, assets that in fact might appreciate, ( not depreciate ) or if your firm is lucky enough to have extra cash all the time.

It's just that we think we can count on one hand the amount of assets that appreciate over time these days, and items such as computers and software certainly aren't one of them. Many businesses use ongoing 'operating lease' strategies to constantly ' refresh ' their ' tech ' needs. Assets such as these are frequently subject to obsolescence, or in some cases are only temporarily required.


So when exactly should the business owner or financial management of a firm consider leasing? Capital intensive businesses rely heavily on lease finance - they don't want all their cash or credit lines being used for long term asset acquisitions. In many case lease financing is very competitive to term loans when it comes to ' rates ' - but at the end of the day it's almost always about capital conservation.

Don't forget also to ensure you have the right knowledge and advice around accounting and tax benefits and issues as they relate to leasing. The proverbial ' lease versus buy ' decision can quickly help you identify cash flow and payment issues.

So now that you've determined when to lease the question becomes ' with whom '?! As you consider a lease firm you should, at the same time have a reasonable working knowledge of what type of lease you want. That translates into 3 basic choices in Canada, capital leases (i.e. owning the asset) operating leases, and the leasing back of your assets. Respectively these choices are known as capital leases, operating leases, and a sale leaseback.

Did you know you have 4 different choices when it comes to with whom you should be leasing from?

Your four choices are:

Commercial finance leasing companies that are most often private firms specializing in leased assets.

Choice # 2 bank leasing companies in Canada; these are closely tied to their parent companies, Canadian chartered banks.

Choice 3 is often a fabulous choice, these are the prisoners! Prisoners? Well actually we mean captives, they are finance firms related directly to the manufacturer of the business equipment you wish to lease.

Choice # 4 is often the safest bet. It's a Canadian business financing advisor who has knowledge and relationships with all of the above firms .These players, with the right credentials and reputation can bring true value and save you thousands of dollars on any single transaction. Look for past experience, credentials, etc.

Knowing why, when and how to lease your asset needs will help put your firm firmly positioned with your competitors, and on the track to financing success.

Knowing when and with whom to finance your assets can put your firm on the track business financing success. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business equipment asset acquisition 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

5 Things You ( Probably ) Didn’t Know About Canadian Business Receivable Finance . Cash Flow Financing Via Factoring Clarified !

Tweet






Receivable Financing In Canada – Did You Know That …

OVERVIEW – Information on Business receivable finance in Canada . Cash flow financing via factoring and a/r financing – explained and clarified!

Cash flow financing
for Canadian business owners and financial managers is all about knowing what options are available when external finance solutions are being evaluated. Looking for one solution that's incredible misunderstood in the Canadian business financing landscape. We've found it. Business A/R Finance! We've got your questions, as well as the answers! Let's dig in.

Question 1 - What amount of funding can you expect to receive from your A/R base? Typical advance rates for most facilities revolve around the 90% mark... that assumes you are dealing with the right commercial financier - More on that later. That additional 10% is in effect a holdback of sorts. We would point out that Canadian chartered banks only margin A/R at the 75% level, so commercial business receivable finance offers more liquidity. One other key point on funding is that your access to capital is virtually ' unlimited' as long as you have sales and legitimate earned receivables.


Question 2 - How does a firm set up this facility? We generally advise that it takes approx 2-3 weeks to set up a proper facility - that is a general guideline. You will know, by the way, very early on in the process if you are approved. After that it's simply a question of documentation. Legal documentation and the paperwork process are very similar to bank financing and full fledged A/R facilities are secured in the same manner as banks, typically a General Security Agreement.

By the way, stop us if you’ve heard us say this before, but you should consider CONFIDENTIAL RECEIVABLE FINANCE, allowing you to bill and collect your own accounts with no notification to suppliers, customers, etc. Want to be the talk of the town? You will be among your competitors as this type of NON NOTIFICATION financing will have competitors wondering how you're able to finance your business so successfully.


Question 3 - Often, unfortunately, the only question our clients seem to ask when we're discussing business A/R finance. What's the cost?
Fees and costs. Various factors come into play here, the credit quality of your firm in general (it does not have to be as solid as you think), the size of your facility, the nature of your industry, etc. On balance a solid business receivable finance fee in Canada is 1.5 - 2% if you're billing and collecting on a 30 day term. If your company can absorb a 1 or 2% decrease in gross margins to in effect obtain all the cash flow/working capital you need, that in effect should be your consideration.


Question # 4 - What receivables can actually be financed? The key point here is that only ' business’, i.e. B2B a/r can be financed in Canada, so those companies with a consumer A/R base cannot take advantage of cash flow financing. Retailers typically look to other forms of finance for finance options in the consumer marketplace - i.e. Working capital loans, inventory loans, Merchant Cash Advances, etc.

Any North American receivable can be financed, and if your firm has overseas receivables a credit insurance policy can assist in the financing of those receivables.


Question # 5 revolves around the age of receivables that can be financed. As a pretty general rule only A/R that is under 90 days in age can be financed via this method of Canadian business financing. One can safely assume of course that if you haven’t collected your accounts by that time there is an element of uncollectibility or bad debt in your A/R portfolio. There are potential exceptions to the rule but your ability to turn over receivables based on your published selling terms is key to successful ' factoring ' finance.


Confusion gone away? We hope so. The bottom line? When considering working capital finance via business receivable financing ensure you've got the right information at hand to make an informed decision. Speak to a trusted, credible and experienced Canadian business financing advisor for your ability to get on track with cash flow finance.



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

Confidential Cash Flow Factoring - Turn Accounts Receivable Into Your Best AR Finance Strategy

Tweet

Information on cash flow factoring in Canada and how confidential accounts receivable financing can turn your AR finance strategy into an unlimited cash flow machine for your growth, and profits. Finally a strategy that allows you to be in charge!

We are going to demonstrate how a little known, and in our opinion almost a secret strategy can called confidential cash flow factoring can turn your accounts receivable into a virtual cash flow machine, turning past AR finance obstacles into cash flow solutions!

Search engine analysis will show you that thousands of Canadian businesses search everyday for what they hopefully believe will be valuable information around the most popular method of business financing today. Those businesses, of all types and sizes by the way (even the largest corporations in Canada) want to know why cash flow factoring offers unlimited unlocking of cash flow based on your sales and receivables.

Initial explanations and overviews to clients sometimes become bogged down in key issues such as the cost of this method of AR finance, and, equally important, is the unwillingness of some clients to accept how invoice discounting (that's another name for this type of financing) works.

Canadian business owners and financial managers want to like a good thing, at the same time they want to know how it works and how they avoid any pitfalls. Lets discuss the ' how it works ' portion first and then share with you the method we believe eliminates the major pitfall perceptions viewed by many firms considering this type of financing.

We'll focus on small and mediums sized business - the larger corporations have access to all sorts of financing and external finance strategies - while the small and medium sized businesses in Canada tend to rely on their own cash flow to fund their ongoing growth and working capital. In fact many firms realize they have potential to grow sales and profits, but cant because of that lack of working capital.

Back to the 'how it works'! Cash flow factoring of accounts receivable is the ongoing sale, in whole or in part of your sales invoices as you generate them and deliver products and services to your customer. The invoices are purchased at 1- 3% discount from yourself, and you receive cash, 99% of the time the same day, for those sales. So, in effect all your sales now fuel that cash flow machine you have turned your company into.

So far, so good, right? Where complications arise, especially in Canada, is the fact that this type of financing requires your client to be notified of the process, directly, or indirectly, and payments are required to be forwarded to your factoring finance firm. Canadian business, in our eyes, has a reluctance to involve their customers in their internal financing policies, and challenges. As a result, many firms are skeptical of entering into AR finance of this manner.

Is there a solution? We told you there was - it's a breakthrough called confidential invoice discounting. This type of financing comes at the same cost, allows you to bill and collect your own receivables, and gains all the benefits of that cash flow factoring machine we turned your company into.

Speak to a trusted, credible, and experienced Canadian business financing advisor who can put you into a proper AR finance facility, allowing you to reap the benefits of cash flow invoice financing, while at the same time allowing competitors, customers, and vendors to remain exactly where you want them to be, outside your financing strategies and challenges! Let's let your competitors try and figure our how you're doing so well in both growth and profits.



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 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations.Info re: Canadian business financing & contact details: http://www.7parkavenuefinancial.com/cash_flow_factoring_accounts_receivable_ar_finance.html

Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/6072401

SRED Financing In Canada : Taking Advantage Of Tax Credit Finance Via SR ED Bridge Loans

Tweet


Canada’s SR&ED Program : Get it While You Still Can! By the Way Did We Mention SR&ED Credits are Financeable for Cash Flow Now?

OVERVIEW – Information on SR&ED loans in Canada. SRED Financing offers cash flow bridge loans on your firms r&d capital investment. Tax credit finance is a solid cash flow solution to recovering valuable working capital outlays

SR&ED credits help replenish the investment thousands of Canadian firms make with R&D capital. The refundable tax credit in this sometimes misunderstood program is also financeable, accelerating and replenishing cash flow.

But the program (The Scientific Research & Experimental Development Program) is under attack. Looking for proof? The Aug 9/206 Globe &Mail story is a good example. The article (‘Gargantuan Tax Credit Doesn't Pass The Test For Evidence Based Policy) offered up 3 essential reasons the program does not work.

1. Canada's R&D capital investment is weak and declining
2. No evidence that the majority of firms are benefitting from spillover imagined benefits
3. The program is driven by bureaucracy not growth and innovation imagined benefits

The bottom line?

We'll let the pros debate the program and may the best man or woman win. We'll continue to originate and offer financing under the program

SRED financing in Canada is somewhat of an under used working capital and cash flow financing solution in Canada. Let’s explore the key basics of what SR&ED is and how Canadian firms can maximize the benefit of the program. SR&ED Bridge Loans turn that government non repayable tax credit into cash flow sooner than you had anticipated.

Most Canadian small and medium large businesses finance their day to day working capital via bank credit lines or non bank alternative financing facilities, such as asset based lending, factoring and receivable discounting. If your firm has such facilities in place, for example with a Canadian chartered bank then you are receiving probably 75% of your receivables and perhaps 50% of your inventory as eligible financing.

Did you know that your SR ED can also be in this working capital category? Let’s cover off how that is, and how it can work to your cash flow advantage! Unfortunately it's probably uniform across the board that SR ED credits aren't financed by Canadian banks. So alternative financing solutions have taken up the slack.

The basic strategy around SR & ED financing is the securing of a separate financing facility outside of your current financing arrangement. Therefore you are in essence creating a separate short term financing facility around the SR & ED claim that you have just filed.

In normal circumstances companies that file SR ED claims particularly on a first time basis can wait well close to a year to receive their funds from the federal and provincial governments. Remember the great benefit of these funds, which is they are not repayable . How long will the government commit to this solid, proven program? We're not sure but over 3.5 Billion dollars is shelled out annually to firms just like yours.

So what have we found discovered so far? SR &ED claims a great way to recoup a large per cent age of all the funds you have invested in research and development and experimentation during the past year. In fact you can claim up to 2 years of work.

The Canadian SR ED program is Canadian government’s way of assisting firms who are moving forward with innovative products and services. To be eligible to file a claim your firm must be a private Canadian owned company , have prepared and filed a proper SR ED claim in conjunction with your annual tax filing . We would point out that if your company has arrears with Canada Revenue Agency these arrears will be set off against monies due to yourself under the claim.

Also, if cash flow and working capital are at the top of your importance list your claim can be financed with the assistance of an experienced and credible SR &ED financier. This is truly a boutique industry in Canada and business owners and financial managers are urged to seek out trusted and credible advisors in this niche financing area.

Under the concept of SR ED financing your SR ED is security for a working capital loan – funds are advanced to approximate 70% of your filed claim. If properly structured you would not make any payments under this cash flow infusion, and would repay the principal amount of the SR ED financing when your claim is authorized and approved. In effect you’re are factoring or discounting the SR ED claim.

In summary, Canadian firms eligible to file a SR ED should do so. Get it while it lasts! What firm would not want to receive a cash non repayable grant from our friends in Ottawa! If you can wait for the money, great, if you wish to arrange interim financing for your claim enlists the services of a trusted and credible SR ED financier. In a matter of a couple of weeks (why wait a year?) your working capital and cash flow will be augmented via your SR ED financing bridge loan. That’s a good thing, and a great Canadian alternative financing strategy.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow 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

Business Financing In Canada : Unearthing Working Capital & Cash Flow

Tweet





Survey Says … Your Company Needs Business Finance Working Capital & Cash Flow Solutions

OVERVIEW – Information on business financing in Canada. Knowing when and how to access working capital and cash flow solutions is key to growth and profits

Business financing solutions in Canada require a good knowledge around the ' current assets ‘on your balance sheet. These assets are the key to working capital and cash flow solutions and are tied directly to what the pro's call liquidity. In the SME world that's also known as ' making payroll ‘, paying suppliers, and being up to date on loan and lease payments ! Let's dig in.


In the majority of the business world companies sell their products and services on credit - that of course creates receivables, and the ability to understand how to manage ( and finance ) A/R is key to business success. Your true ' real ' cash flow revolves around generating positive cash from the management of a combo of a/r, inventory and a/p. Check the third part of your firms financial statement - the 'Statement Of Cash Flows ' to see if you are winning or losing .

If you're losing on ' cash flow ' its potential good news! What do we mean by that? Simply that your sales and success require your company to make a higher investment in A/R, inventory and payables. It's of course a different story if your firm is mismanaged, losing money, or has inadequate cash flow financing in place!

One key goal in your working capital and cash flow management is simply planning for what capital you need. At the extreme is the owner’s desire or necessity to bring new equity into the business - in certain cases that just is not possible. Two other solutions exist -

Debt Financing

Financing your current assets

Before you address your current asset finance strategy remember that simply turning over receivables and inventory at a faster percentage that you create them creates instant cash flow.

What types of solutions are available to finance funding needs? From a commercial finance perspective they include:


A/R Financing


Bank business credit lines

Working capital term loans / Merchant cash advances


Non bank asset based revolving credit facilities - Often called ' ABL ' loans


Tax Credit finance - Two areas of tax credit financing exist in Canada - SR&ED and Film/TV


Purchase Order / Contract Financing

Sale Leaseback finance


Inventory Loans

One of the most popular solutions we recommend to clients who can't obtain all (or any?) Canadian chartered bank financing is Confidential Receivable Financing. It's a business credit line based on receivable that allow your business to bill and collect and finance it's A/R with no notification to any third parties, i.e. your clients.

Want to be a ' winner ' in solid cash flow and working capital finance and performance? Our recommendation =

1. Ensure you know what external financing solutions are available for your firms industry needs - some are even specific to your industry


2. Understanding what factors impact your cash flow needs - i.e. sales growth levels, operating performance, capital intensity


Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help your firm ' unearth' the right capital 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