WELCOME !

Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.



Friday, February 15, 2019

You Need A Business Plan : Here's Why












YOU NEED A NEW BUSINESS PLAN

DO YOU WANT TO ELIMINATE THE WORRY AND STRESS OF GETTING A PROPER BUSINESS PLAN COMPLETED ?


LET US DELIVER IN A PROMPT AND VERY COST EFFECTIVE MANNER A PLAN THAT INCLUDES ALL THE COMPONENTS OF A PLAN THAT YOU NEED



Information on business plans in Canada. Here's why banks and other commercial lenders want a plan



Many business owners or budding entrepreneurs are taken aback when their lender asks ( or insists ) on a business plan . Why do lenders need a business plan ?


Lenders view the business plan as having forced the business owner or entrepreneur to look carefully in a critical way into their business project . They feel that if the company needs to grow or be successful such a document will guide the business person to their goals .


Ultimately those the business plan is a concise document which in effect communicates the business persons ideas to the lender .


In theory the business plan should identify areas of weakness or strength . If truth were to be known of course business plans tend to accentuate the positive . The writer of this article has a favorite saying - ' I never met a pro forma financial I didn't like '!


More about that last comment later , but suffice to say that in theory a good business plan geared towards financing should balance both the positive and negative aspects of the business and its financials . A solid business plan geared towards a lender will show you have ways of solving some of the business challenges raised in the business model and it's proposed financing .

We all know that stat's - half of new businesses fail within the first two years, 90 % within the next ten years . Why is that the case . Business guru's tell us its lack of planning . That is precisely why a business plan geared towards lending and the financials should be used as a critical follow up in the business . It should not be stored away ! As we all have learned, ' tuition is extremely high in the school of experience ' !

Most importantly though people that don't know you, or might not know your business model use a properly created plan to evaluate your business and lend you funds . The ' business plan ' in effect is really a financing proposal . That's how we look at it in our firm .

Let us remember how a lender , who you in many cases don't know, thinks. First of all he or she is hoping the information you have provided is true . Remember also that the lender works for someone, and they must communicate your idea to an underwriter of investment committee . If you haven't met the lender, trust me you definitely have not met the underwriter or investment committee.

Some of us also might think that we are the only business plan the lender is reviewing . That is not the case, our plan might be among 10-20 others in an given lending environment . And finally, people have biases - they will benchmark your own projections against their past experiences . If your business plan and financials make them think of Microsoft and Rim they will dig into the plan , if visions of Nortel come to mind that won't be the case !


Therefore business owners should put forth their plan on the basis that it will be ' attacked' by the lender , so the business owner must counter with ' real ' upside potential . The lender must genuinely feel some sort of enthusiasm about the business .


The biggest secret of business plans , and yes , we are revealing it here, is that they generally are not always read in totality by the lender . The real world dictates they are given a 5 minute read, and more careful emphasis is generally only placed on the financials . The owner should never think that either quantity or finesse in fonts and graphs will gain the funding they require.


In summary, we do not infer that a plan is in fact not required for a lender or financing, in fact a business owner or entrepreneur with no plan is , outside of luck, guaranteed to fail .

WHY BUSINESS PLANS FROM 7 PARK AVENUE FINANCIAL ?


We prepare and consult on many business plans for our customers . There are a variety of needs when you require a Business plan - We only focus one one of those ! ---> Our plans are focused on obtaining financing , as many other plans are too sales, marketing, or , unfortunately , ego driven .

Business plans prepared by 7 Park Avenue are very reasonably priced . We have researched the market and our plans typically range well below the price of other firms . We deliver the plans in a timely fashion, usually in less than one week . Plans require some input and key information from the business owner(s) , that consulting is included in our fee.

Most business people agree that entrepreneurs and owners need business plans with a clear goal and outline for their business model . Our plans are geared toward financing and investment . Our plans will show your bankers , financiers, and investors how you will make money and how debt will be repaid .

A business plan prepared for you by 7 Park Avenue Financial includes data on your industry and info and statistics that prove financing viability . Other components of our plans are owner overview and background, opening balance sheets, 3 years income statements and cash flow ( 5 if required ) etc. Typically our final plans are between 30-40 pages and include appropriate charts, graphs , etc.

Many bankers and financiers have refer customers to 7 Park Avenue Financial for such a document . They know we will deliver a professional industry driven final document thats realistic and what the bankers and lenders want / need to see.

Call now for a free consultation and a plan that will be delivered promptly at an affordable rate . Whether you are a start up, or require a plan for a new project or financing - Call now - 416 319 5769 , or email your questions to :

info@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


Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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


' 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.


Tuesday, February 12, 2019

Looking For Asset Financing ? Looking To Double Your Business Credit Line?
















Business lines of Credit that Work !




Information on a business line of credit known as an ABL facility via an asset based lender . This type of asset financing can double your access to business credit and working capital






You're on the hunt, and the prey is business financing under an asset financing scenario you have heard so much about. Let’s examine what an ABL facility is, who is the asset based lender that offers this financing, and, oh yes, do you qualify?

To say that business credit financing is top of mind these days with Canadian business owners and financial managers is clearly an understatement. With the economic clouds clearing on the horizon after the 2008-2009 business credit meltdown business owners are looking for growth financing.

And the reality is that the type of operating facilities that you are looking for are getting tougher to secure from Canada's major chartered banks. We are of course referring in general to firms that have some sort of challenge, because medium sized and large Canadian firms with great balance sheets, profits, and solid cash flows can access great credit terms from the banks.

Unfortunately that isn’t the client profile we're talking to everyday - as owners we meet have challenges such as inability to secure the operating cash they need, the requirement to acquire additional assets, or even a full acquisition of a competitor. And that economic turbulence we mentioned earlier usually means that many firms are coming out of a turnaround type environment and are slowly getting their financials back in order. Therefore the ability to secure an ABL facility (abl = asset based lending) for inventory and receivables becomes the goal in asset financing.

So what is the real difference in asset financing under and abl facility compared to a bank line of credit, commonly called a ' revolver ' in business finance. The best way we explain it to clients is that the bank focus is on cash flow, the asset based lender focuses on assets. Big difference!

So, does your firm qualify for abl financing? In general, as we stated, any firm with assets of receivables, inventory, equipment and real estate qualifies. Where the challenge comes in is deterring the overall quality of those assets as well as the size of the facility. An ABL facility is generally available for any firm with over 250k in a combination of receivables, inventory, and equipment. In certain cases even tax credit receivables can be financed.

Where you as a business owner have to focus is the choice of a partner in this type of financing. If your facility requirements are in the millions of dollars and you have high quality business assets (i.e. collectible receivables, inventory that turns) you can access significantly more credit than under a normal bank facility - at rates commensurate with bank financing.

Small firms pay a premium for this type of facility, but when you consider you can access almost all the business credit you need under such a line of credit, coupled with the ability to grow profits and revenues and take on additional orders... well , we'll let you decide if that’s worth a premium .

If you want to comfortably walk the business financing minefield in ABL and feel you aren't 100% conversant with the players, requirements, and pricing then consider seeking a trusted, credible and experienced Canadian business financing advisor in this area .

P.S. If you found your access to business credit has just doubled, don’t say we didn’t tell you!






7 Park Avenue Financial :

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

Direct Line = 416 319 5769


Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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


' 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.








Sunday, February 10, 2019

Looking for Debt Financing ? Don’t Ignore Working Capital Funding Sources















You’ve got Options for business financing in Canada


Information on sources of debt financing and working capital cash flow solutions for growing and operating your business in Canada





We're not shocked - You wont be either - a recent U.S. survey by CFO Magazine stated that cash flow and working capital and accessing working capital funding sources was the biggest concern of any financial manager.

Welcome to Canada ! We are pretty sure we are in the same boat as we talk to clients who seek alternatives to debt financing and liquidity for their companies.

The other key item in the study was that business in general was dissatisfied with their banking relationships - again no real surprise.

So we all agree there is a gap in working capital solutions for Canadian business. Let’s discuss why that gap exists, and, more importantly is there alternatives to taking on more debt financing while at the same increasing cash flow in your firm.

As we have written in the past we always tell clients the best program in Canada, bar none in our opinion is the government small business loan program, which is underwritten by our good friends in Ottawa. Great rates, terms and structures, what more could you ask for. Well here’s the problem, the program only covers equipment, leaseholds and real estate - that’s called debt financing. So not working capital or cash flow is ever going to come out of that program for your firm. Let's move on then.

We can start by defining our working capital problem by simply saying it’s the day to day liquidity in your business that we are talking about - essentially the amount of funds you have in your company that could be liquid if you didn’t have them tied up in inventory, accounts receivable, and in some cases prepaid current assets. And of coruse the ' double whammy' comes in when you have your obligations on the other side of the balance sheet, i.e. accounts payable and term loans.

Working capital funding sources come from two areas, debt and the monetization of those current assets. We prefer monetizing and cash flowing things like A/R and inventory as opposed to debt financing, which infers a long term commitment.

So let’s get right to the point, what are your alternatives to cash flow success. The good news is there are a good handful of alternatives - they include operating lines of credit which can come from your bank or your non bank lender. Clients are increasing more interested in hearing about non bank lenders because these firms can more readily approve financing for your inventory and receivables. The ' buzz word' around this industry is asset based lending, and we advise clients to check it out, because in many cases it’s the ultimate solution to working capital success.

If you are a smaller firm you can employ accounts receivable financing , otherwise known as invoice discounting. If done properly ( and many times it is not ) it can turn your firm into literally an ATM cash flow machine, as you generate instant cash flow for all your sales . This type of facility comes at a cost and we find there are many misconceptions about the cost of this type of financing, and as importantly, how it works.

So lets summarize -
you aren’t going to get working capital from our friends in Ottawa - if you qualify for bank financing employ it! Many of our clients don’t, so consider great alternatives for working capital funding sources such as asset based lines of credit, receivable financing, or in some cases even securitization.

So if your firm has a thirst for liquidity (!) speak to a trusted, credible and experienced Canadian business financing advisor who will work with you to solve your cash flow challenge .





7 Park Avenue Financial :

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

Direct Line = 416 319 5769


Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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


' 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.














Thursday, February 7, 2019

Understanding Cash Flow For Business : Why Receivable Factoring Just Might Be The Solution














You’re at the Crossroads for a Business Financing Decision


Information on receivable financing and business cash flow strategies in Canada - Factoring and Confidential Receivable finance solutions might be the right solution to your working capital challenges




Choices. Alternatives. Robert Johnson, an old blues legend wrote of being at the ' crossroads ' and had choices.
That’s what Canadian business is looking for more than ever when it comes to the Canadian business financing marketplace for small and medium size businesses. (We suspect the big guys want the same thing!).

If your business can't obtain any (or enough) cash flow for business growth then receivable factoring just might be an option. Naturally you're the client, so we'll let you decide.

Clients always ask ' why can my firm obtain working capital financing via receivable factoring when we can via the bank. The answer is really not that mysterious - it’s a case of your new financing partner looking solely at the asset and not the big picture, which our friends at the bank tend to be focused on.

And don’t get us wrong, if you firm can obtain ' all ' the financing it needs from a Canadian chartered bank you clearly have the ultimate cash flow security in place... however the reality is that we havent really met many of those firms in the tumultuous environmENT post 2008-2009 global business financial meltdown.

So yes, the cost of factoring in general is more expensive (in some cases it actually might be cheaper!) but with receivable factoring your are operating your business in an entirely different manner.

As a Canadian business owner and financial manager you should not feel embarrassed that you haven’t heard a lot about receivable financing via a factoring working capital facility. It’s been around as a financing tool for quite some time, but it’s been a little under the radar, and oft considered an alternative tool for Canadian business financing.

Essentially it is the sale, on a one of, or ongoing basis (it’s your choice) of your receivables to a third party. You receive funds instantly, and we mean basically same day! And the total focus is very simple and straightforward - the transaction is only about the value of your receivable, its not additional debt for your balance sheet, and it monetizes your receivables to the extent that you choose.

Control is the key word here, as you control what you need to borrow, when, and what those funds will be used for. Traditionally all our clients use the funds for just one purpose - financing their business for more growth and profits.

Perception is often confused with reality, and the perception is that a receivable factoring strategy to generate cash flow for business is expensive. Yes, no... Maybe! The cost of this type of financing tends to be in the 1-3% per month range. What many of our clients miss is that putting yourself in this type of facility assures you unlimited sales and profit growth. Your investment in receivables (and inventory) has essentially been monetized on a long term basis. Also, the funds you obtain from this type of financing allow you to take supplier discounts, enhance supplier relationships, purchase smarter and in larger quantities, and increase your A/R and inventory turns, which technically play a huge role in your return on equity.

So, is receivable financing and factoring your working capital solution for business cash flow - only you can decide, but you do have choices and alternative you previously might not have been aware of. Speak to a trusted, credible, an experienced Canadian business financing advisor to ensure you choose the right method of financing when you're at the crossroads!







7 Park Avenue Financial :

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

Direct Line = 416 319 5769


Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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


' 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.



Film Tax Credit Financing in Canada










Information on film tax credit financing in Canada


Film tax credit financing in Canada is a unique and specialized type of financing. While many of the larger film, tv, and digital media firms in Canada are aware of and are utilizing this type of financing, many smaller and independent firms are either unaware that the financing exists, or alternatively know there are substantial tax credits, but were not aware that they can be monetized into immediate cash flow for either project completion, or even moving on to your next project.



All of this activity stems from federal and provincial legislation that was recently amended to increase tax credits to Canadian firms in the three aforementioned sectors:



Film

Television

Digital Media – i.e. Animation, etc



All these program obviously boost Canadian content and help foster Canadas reputation in the industry, and the government, both at the federal and provincial level seems keenly comfortable that these tax credits and incentives, which are non repayable in most cases (yes we said non repayable) generate additional tax and revenue for Canada many times in excess of the tax credit values.



While federal legislation is of course standardized across the country each province has different organizations under different ministries to handle the provincial portion of the grants.



In Ontario as an example you can claim tax credits for 6 different credits – but did you know that if properly claimed you can generate immediate cash flow and financing of these film credits. (The six credits are: Production services/book publishing/sounds recording/interactive media/film and tv/computer animation).



How can these credits be financed ask our clients? Simply speaking if you have valid tax credit claims and the proper certificates in place you can monetize these into immediate cash flow. From a terminology perspective we can almost say that you are monetizing, factoring, or discounting your claim now based on cash flow you will receive from the federal and provincial authorities. In effect they are accounts receivable now on your special purpose entities (i.e. your current project/production) balance sheet.



Clients also ask what qualities or additional information must be in place in order to generate immediate financing of your tax credit. The answer is that you must have your affairs in order, namely the ability to confirm your eligibility, ensuring you have the right certificates either in place or set to be in place, and of course maintain proper records showing your disbursements, etc.



In certain cases , where proper documentation is available and has the ability to be maintained ‘accrual financing ‘ is also available – by that we mean cash flow is made available during your production prior to final certification . This is a true temporary cash flow and working capital benefit for many independent type productions.



A recent paper by the prestigious firm KPMG referred to these tax credits as ‘hidden money ‘. We would point out that the financing of these credits is in fact the true hidden money that could be the final spoke in your productions wheel!



In summary, if your project is eligible for tax credits take advantage of them. If you wish to monetize those credits immediately into additional working capital and cash flow then speak to a trusted, credible and experienced firm in this area. It’s a great cash flow and working capital strategy in one of Canada’s most exciting industries.





7 Park Avenue Financial :

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

Direct Line = 416 319 5769


Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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


' 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.





Tuesday, February 5, 2019

Save thousands (or Millions ! ) Via Technology & IT Financing Via Smart Finance Benefits
















Make IT Technology Finance Work For Your Business

Information on what strategies can save you thousands, and millions on technology and IT financing . What benefits can you expect to receive when you consider these finance strategies




We probably couldn't come up with the exact number but wouldn’t you agree it’s safe to say that Billions of dollars are spent annually on IT (that’s information technology by the way!) and technology financing. Can you really save thousands, or those millions?! by smart acquisition strategies . We're sure you can and we will show you how.


The acquisition of computer, it, and other technology assets is without a doubt one of the largest Capex spends any medium or large sized business makes. Your make those investments because you are optimistic about the future of your firm, coupled by the need to stay ahead of the competition in the ever changing technology curve.

If your are the owner, chief financial officer, or chief information officer of any firm you want to know what your alternatives are in the areas of IT and Technology finance. Those alternatives comes with different costs, different outcomes, and different risks, all of which make it often a daunting decision when you are at the proverbial fork in the road .

The author of this article spent over 20 years in technology financing and saw trends come and go. The largest trend by far, we think, was the desire of firms to go off balance sheet when acquiring computer, technology and telecom assets. That probably is still a good decision today for many reasons - the main ones being lower monthly payments due to the residual taken by the lessors, the ability to invoke your three rights at the end of the term of the lease, as well as the constant availability of upgrading during the term.

Having said all that there are of course some new international accounting rules that will bring those off balance sheet liabilities back onto the balance sheet. Is that a good thing? We won’t weigh in on that one today... it’s probably good for lenders to your firm as all that debt is now front and center on the balance sheet. Anyway, that’s a discussion for another day.

So how are smart decisions made in technology financing - whether its computers, phone systems, software (yes software can be financed!) etc.

It all comes down to a couple key areas - first of all, if you aren’t proficient in lease calcs work with an expert who will help you assume residuals, interest rates, and proper economic life cycles . If you could afford it (some can’t... some can) the smartest thing to do would be to finance technology and IT on a 2 year FMV lease. That way the residual value established by the lessors would be high, you would be able to flip into new technology in 24 months.

Let's use a 2 million dollar major technology finance acquisition as an example - Using smart financing via an FMV lease a monthly payment on our 24 month term would be approx 71k per month.

Your firm would be the beneficiary of a 400,000 residual investment by the part on the other side of the lease. Your monthly payments to acquire 2 million dollars of technology for 24 months would be only 1.7 Million dollars. If you chose the lease to own route or loan on your technology financing your payments on a typical 36 month transaction would be over 2.2 Million dollars, almost 400k more than in our ' smart finance ' scenario.

So, what’s smart IT and technology financing all about? Its knowing the use of your equipment, its expected useful life, how lessors can play the interest and residual game and how some very basic expert information can put you back into the driving seat on those thousands (or millions) that Canada spends on IT finance for technology .Speak to a trusted, credible, and experienced expert to assist you in your benefit recapture in this critical area of business.








7 Park Avenue Financial :

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

Direct Line = 416 319 5769


Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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


' 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.








Sunday, February 3, 2019

Franchise Financing Loans In Canada













Franchising Loan - Are You Approved? Here's How


Information on
franchising loan
strategies to ensure approval for the entrepreneur



Franchise financing approval in Canada is a key aspect of the entrepreneurs challenge to purchase and build a business. Canadian business people purchase franchises because they wish to profit and be successful on an already proven business model. We of course assume they have picked the right franchise!


What mistakes can be made in franchise financing as it relates to the purchase of a new or existing franchise? Naturally solid planning and careful preparation of a business plan increases the chance of success.


Whether a business is a franchise business or not the under pinnings of a successful finance strategy are important to long term success. Business owners, bankers, other lenders and financial analysts always look at the relationship between debt and equity – in simply language that means how much you yourself are putting into the business and how much you are borrowing. If you borrow too much you are considered ‘over leveraged. Therefore in the course of purchasing your franchise you should be prepared to make a personal investment in the business also – that’s a given – it cannot all be OPM, which is and an acronym for ‘Other Peoples Money ‘.


So of course when we meet with clients they always ask ‘how much do I have to put into the business? The answer is as follows – many franchisors will actually insist on a certain amount of money being put down , because based on their actual experience with their own locations and other franchisees over time there develops formulas as to what is an optimal investment by yourself .


Also keep in mind that if you, as an example, are purchasing, say, a large unit of a restaurant chain that transaction might be in the 1 Million dollars range. Let’s say you put 25% down of 250k. Another franchisee might be buying a service oriented business that does not have and furthermore does not require fixed assets such as leaseholds, equipment, etc. If that business cost 100k to purchase a 25% down payment is of course only 25k, much less than the 250k other franchisee had to put down in absolute dollars. So our point is simply that if the purchase price of your franchise is asset intensive, and has a higher dollar value you must naturally assume that a large absolute dollar amount of financing is required. That probably is clearly the appeal of many service based franchises that do not require assets.


So how are asset based franchises financing in Canada. There is in our opinion a large amount of dis information on franchise financing in Canada – therefore new and prospective franchises are encourage to speak to a trusted and credible franchise financing expert . That is simply because you will know your options and strategy much better. It certainly doesn’t hurt, if you can, to speak to other franchisees in the franchise system that you are looking at purchasing.


In some respects there is a benefit to purchasing an existing franchise from a current franchisee in the system you are looking at. Our observation is that those units come with a higher price , for the simple reason they are proven already, they have sales, profits, and cash flows that you can analyze , with your franchise financing expert, to determine the overall viability of the business .


We have worked with a number of prospective franchisees who actually are comfortable in buying a franchise that is not doing so well because they strong feel they can turn it around. So there are in effect buying a business that is proven, but temporarily distressed in some manner, usually relating to issues such as poor sales revenues, etc.


Franchises in Canada are financed predominantly by one major government program that is in existence – we have found that by utilizing this program, and complimenting that financing with a working capital term loan and lease and equipment financing (if applicable) helps to ensure overall franchise financing success.


In summary, ultimately you as a business owner have to be comfortable with what you are purchasing – but you should also take comfort in knowing that franchise financing is available in Canada, and simply needs to be tailored to the type of business you are buying, its size and asset requirements, as well as the utilization of proven and available financing methods such as the government CSBF program we referred to.


Investigate your opportunity, plan financing carefully, execute on that financing and your chances of success increase immensely






7 Park Avenue Financial :

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

Direct Line = 416 319 5769


Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


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


' 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.