Canadian Business Financing - 7 Park Avenue Financial

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.

Wednesday, October 23, 2019

Important Sale Leaseback Financing Success Factors

Sale Leaseback Financing Lessons That Will Pay Off

Sale leaseback financing provides many advantages to Canadian business owners . While at the same time selling equipment or other assets ( for example real estate ) to a third party you are effectively agreeing to use and repurchase the asset .

The goal ? Simply unlocking and cash flowing the equity you have in the asset . Naturally every company has a different situation for evaluating the reasons to perform a sale leas back financing .

Cash flowing the asset through this financing process allows your company in effect to extract equity - and almost always that equity and potential cash flow infusion is significant, which is one of the reasons your firm is considering the financing .

Generally speaking a typical loan to value amount under the financing process can unlock up to 100 % of the assets value. Naturally in traditional finance scenarios the typical loan to value would be 75%.

Balance sheet implications also come about under the leasing back of assets, and the good news is that in the majority of situations those implications are positive. Your accountant will explain to you that issues such as depreciation can positively impact your financing statements in the sale leaseback process.

While ' off balance sheet financing ' is no longer in vogue for a couple of reasons the selling and refinancing of assets is a positive mechanism to cash flow success. Typically those all important ratios and covenants that revolve around debt to equity positively impact company financial statements. Anytime you remove debt from the balance sheet tends to be a good thing we are told !

Business these days seems to move at lightening speed and even the largest firms in Canada will consider the leasing back of assets as a move to improve liquidity . Any finance mechanism that improves financial statements and generates cash at the same time is a welcome Canadian business financing solution .

Let's back track to understand clearly how the transaction works . The process is quite simple - your firm owns the asset, you sell it to the lessor and lease it back. You have just converted a fixed asset to cash!

Crucial Tactics for Sale Leaseback Financing

Typically it protects both the lender and you the borrower to ensure you have a proper appraisal of the asset in question - again that's typically equipment or real estate. It is critical to mention that that there can be no liens and encumbrances on the asset .

While many firms employ lease back finance as a cash flow strategy it can also be used as a strategic option . Canadian banks sold many of their prestigious bank towers as they realized the benefits of using that capital to grow the bank.

It is safe to say that many firms unfortunately find themselves in a cash crunch and as such that is also a key reason to entertain this method of asset refinancing.

Typical asset categories in the equipment area involve construction , mfg, and rolling stock assets Companies in cash crunches use the cash to mend their working capital and debt situations . Many firms find themselves in seasonal cash crunches which must be addressed. Remember one of the golden rules of finance, which is to use assets that appreciate, while financing those that do not!

Keep the leaseback finance strategy in mind as an additional tool kit in your business finance arsenal .

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with business refinancing solutions .

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

Click Here For 7 PARK AVENUE FINANCIAL website !

7 Park Avenue Financial provides value added financing consultation for small and medium sized businesses in the area of cash flow , working capital , and debt financing .

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.

Stan Prokop

Sunday, October 20, 2019

Important Steps To Refinancing When The Bank Has Called Your Business Loan

Important Steps To Take When The Bank Has Called Your Commercial Loan

When a business demand loan has be called by the bank there has never been more of a time when a ' perfect ' solution is needed , in a timely manner. The bank demand loan letter can be the start to a difficult time for any firm.

What then are the steps required to ensure survival in the callable loan scenario? We've got some solutions, and refinancing commercial loans might not be as difficult as you think .

Not all business owners or their financial mgrs will always understand whey a band has called their loan - why would they forsake interest income and put your company in a very difficult position. In many cases your firm might have even not missed a payment !

However, when you are in the ' special loans' category at the bank there is only one immediate goal - Where can the funds come from to settle the banks outstanding loan/ loans? Ensuring business survival becomes job 1!

That challenge unfortunately comes with short time frames and the pressures on the business can be intense as the company future is in doubt.

On it's part the bank has rules around the timelines on called loans and their ability to ensure their own capital and liquidity - So they are always looking at their commercial loans to determine in their minds what might be signs of financial distress. In other words they are monitoring what might be potential ' bad debts'. By ' calling loans ' banks are in effect increasing their liquidity.

Initial steps in refinancing your business will revolve around ensuring banks are behaving properly, perhaps negotiating new deadlines , or negotiating settlement proposals. These actions are often best served when you are working with a trusted, credible and experienced Canadian business financing advisor with a financing track record of success.

In many cases ratios and covenants can be renegotiated, and some firms may on their own be able to bring in new capital. Don't forget that callable loans are a costly process for the bank also, so a mutual solution is often very desirable. Business owners are well cautioned to ensure they understand the ' call provision' in their loan documents . Bank doc's can always be a bit overwhelming.

Developing a professional reputation with the workout mgr at your bank in this time period is critical. They are experienced in dealing with difficult credit situations , from simple to complex.

So what about the 'real world ' solutions to refinancing your business in a special loan scenario .

Basic Solutions To Refinancing Your Company

Asset based lending solutions are often the best way to solve the challenge of new financing options .

SOLUTIONS INCLUDE :

Asset based non bank business credit lines

A/R Financing

Sale Leasebacks

Cash flow loans

Asset sales

Inventory Financing

Seek out and speak to business finance experts with specialized knowledge in business downsizing / refinancing and recapitalization.

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

' Canadian Business Financing With The Intelligent Use Of Experience '

Friday, October 18, 2019

Here's What Really Matter In Business Funding Sources

Non Bank Lenders That Will Help You Win

Business funding sources in Canada can come from both traditional lenders, aka ' the bank ' as well as non bank lenders who often are more equipped and prepared to handle shorter term needs in a more timely manner.

Most business owners or their financial managers know that traditional banking organizations in Canada are often unable to meet your business loan and cash flow needs when you are going through a period of financial challenges. So in a time when you are in perhaps a growth mode, or are experience working capital shortages the traditional bank or business credit union will be unable to meet your needs.

The harsh reality ? Simply that banks focus on cash flow and collateral that is more consistent historically and in the present. So high growth and larger build ups in inventory and receivables often creates uncertainty in the minds of Canadian bank lenders.

Even more pronounced is their lack of desire to fund a company when it is restructuring or experience temporary negative cash flow. And don't even talk about taking on very large new orders or contracts in this period of time! Unfortunately sometimes a bank will focus on reducing your access to funding, let alone increasing it ,

Is there a solution then? Thankfully there is , in that alternative finance companies specialize in various forms of asset and cash flow financing that will provide a bridge to more normalized financing structures. In some cases it's a ' bridge loan ' to get your company to it's next stage of growth and profitability or resumption of profit generation. These type of solutions allow you to remove the ' turbulence' that engulfs mgmt in times of cash flow challenges.

How to End Cash Flow Needs

So what do we need to consider when it comes to borrowing for business - It's often simply a case of identifying the best source of capital and not over emphasizing the cost of funding, which in almost all cases is higher in alternative finance. Simply ensure that you are not taking on too much debt on the balance sheet - and in many cases alternative finance sources monetize assets and don't generate debt.

Business owners must realize that the reward of taking on more business and generating more profits and funding daily operations will many times outweigh an additional or temporary cost of capital.

Finally, understand that in the majority of situations non bank lenders who specialize in small business funding fully realize these solutions are temporary in nature - So again we're talking about that bridge. At 7 Park Avenue Financial we focus on a plan that will allow an exit to more traditional financing solutions.

So why alternative finance solutions? Simply these firms look at assets and your current cash flow needs - solutions are tailored to your current situation. Start up loans are also available via alternate funding sources.

Bottom line? Focus on your current cash needs and repayment, not rates. Analyze the merits of taking on new business or larger contracts.

Seek out a trusted and experienced Canadian business financing advisor with a track record of success to assist with your company's financing needs.

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

' Canadian Business Financing With The Intelligent Use Of Experience '

Tuesday, October 15, 2019

Modern Factoring & Accounts Receivable FInancing In Canada

The 7 Park Avenue Financial Way to Solve Lack Of Business Financing

Receivables factoring . Here is your daily spoiler alert - Factoring accounts receivable has entered in to the modern day financing arena , big time !

For those firms that either can't or don't want to access traditional bank financing the ability to cash flow your receivables on an ongoing basis is a solid way to generate immediate cash flow . Not do overdo our cliche's but in case you haven't heard - Cash is King .

But is this method practical for your firm when in fact there are other options our there in today's large array of business finance mechanisms. In fact there are a number of reasons why factoring accounts receivable is a preferred solution for many Canadian firms.

In today's world of globalization and highly competitive business environments business owners and their financial managers don't want to be constantly struggling for cash flow solutions. While receivables factoring is more expensive than traditional bank based line of credit facilities the vast majority of business owners are willing to give up 1-2 per cent of their gross margins as opposed to losing large or new clients or slowing down sales growth on purpose in order to conserve working capital.

We've referenced ' modern day ' receivable financing - that's because a perception remains that under ' old school ' a/r finance there was a perception that your clients would potentially lose faith in your company as a supplier. That's no longer an obstacle when utilizing such solutions as Confidential Receivable Financing .

Clients of 7 Park Avenue Financial will often ask us why thousands of firms are now utilizing this method of financing . That requires a quick history lesson, in that after the 2008 recession business lending took a dramatic turn, with many firms exiting the marketplace or just disappearing themselves. Enter factoring of trade receivables as an option - given that same option has been utilized in various forms for hundreds of years.

Benefits of commercial a/r financing strategies should be obvious to all parties :

1. Businesses generate immediate cash

2. Your balance sheet remains intact - factoring is not a debt facility - you're simply cash flowing current assets .

By the way , your borrowing facility can be further enhanced by combining inventory, receivables and equipment into one asset based business line of credit . In our experience these facilities almost 99% of the time provide more liquidity than you can ever achieve from a bank, without all that emphasis on personal guarantees, covenants, restricted borrowing, etc!

Although it's fair to say that a/r financing seems to lend itself to smaller firms in the SME COMMERCIAL FINANCE space business owners might be surprised to know that large corporations also utilize this method of financing . Naturally the big boys prefer some fancier names, such as ' securitization ' etc.

If you are looking for invoice financing solutions seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success .

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

Click For 7 PARK AVENUE FINANCIAL website !

7 Park Avenue Financial provides value added financing consultation for small and medium sized businesses in the area of cash flow , working capital , and debt financing .

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 '

Sunday, October 13, 2019

What Different Types Of Commercial Loans Does Your Business Need ?

Quick Guide to Types Of Business Loans

Different types of business loans can, in some cases, be challenging for business owners to achieve . Certain types of funding are often much better suited to your company's financing needs.

The good news is that a number of business finance solutions are more accessible than ever . Naturally the ' go to ' in the minds of many owners and their financial mgrs is ' the bank '. Here capital is virtually unlimited and the rates are typically the lowest when it comes to cost of funds .

Bank financing comes with a challenge though - the need to provide full financial disclosure around financial statements, owner personal credit history and net worth, collateral, personal guarantees, and in many cases the requirements to produce a business plan or cash flow forecast . Don't forget to take into consideration the ' timing ' factor, in that the process time might often be weeks stretching into a month.. or more.

Types of business loans offered by banks :

Business credit lines
Term Loans
Equipment Loans

We can safely say that Canadian banks offer the most flexibility and access to capital when a firm qualifies . Factors such as years in business, profits, acceptable balance sheet ratios , etc are key to bank loan approval.

Early stage businesses often utilize personal financial resources to access cash - that includes business credit cards , loans from friends and family, etc. At 7 Park Avenue Financial we encourage clients to separate personal and business financing , as those types of resources are not often the best choice to finance a company, as business failures can significantly damage personal credit .

Alternative Lending

For those firms that can't access all or even some of the funding they need alternative financing comes to the rescue . Alternative lenders provide the same types of loans available from banks - and are often quicker to approve loans . The cost of this financing is higher , but it provides access to capital.

Typical solutions available from alternative financiers include -

Non bank business credit lines
Inventory financing
A/R financing ( aka ' factoring ' )
Short term working capital loans
Tax Credit Financing ( SR&ED loans )

Both banks and alternative finance companies provide loans for long term business growth - These needs might include :

Commercial mortgages for owner occupied facilities
Mergers and Acquisitions
Franchise Financing
Leasehold Improvements - ( leaseholds can be easily finance via the Government guaranteed business loan )

These types of loans are typically longer in duration - ranging 2-5 years

If you are focusing on ensuring you understand and have access to the right type of commercial loans for your company seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success.

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

7 PARK AVENUE FINANCIAL website !

7 Park Avenue Financial provides value added financing consultation for small and medium sized businesses in the area of cash flow , working capital , and debt financing .

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 '

Thursday, October 10, 2019

Know How To Choose The Right Debtor Financing Company ? Alternative Finance Options

The Modern Rules Of Alternative Finance Options

Debtor financing, aka ' receivable finance ' is one of the most popular methods of financing a business that is growing . Success in accounts receivable financing will relate directly to your firms ability to pay normal expenses and invest in growth while not at the expense of slow paying clients . By the way, the most common term used today around debtor financing tends to be ' factoring '.

It's simply a flexible form of a ' business line of credit ' , via alternative finance options . And by the way it's utilized in pretty well every industry, by both start up earlier stage firms as well as the largest and most successful corporations in Canada.

Business owners and financial managers should simply view this tool as ' cash flow financing '. Where confusion sets in is the terminology the industry uses and how it prices this form of finance . Knowing how debtor finance works will allow you to exploit it's various features.

When setting up such a facility it's all about being able to identify the quality and size of your sales revenues as they are invoiced to your client base. In it's simplest form your facility will typically have 90% of your sales finance as soon as you generate invoices that have been ' earned ' Earned ? By that we mean simply that you have delivered a service or product under payment terms agreed to by your client base.

As an aside we also mention that many firms feel they can grow faster if they can offer extended dating terms to new or larger or strategic clients.

Clients of 7 Park Avenue Financial will typically ask when they get the balance of the invoice amount, ie that remaining 10% balance. The answer ? Once your client pays you get the remaining 10%, less finance and carrying charges. Safe to say that clients with good paying customers can see the positive advantage of cash flow turnover.

Many clients , in fact most , would prefer to be in total control of the whole debtor finance timeline. While some firms are happy to have a lender do their collections the majority of firms want to bill, and collect their own receivables.

So rather than disclose debtor financing arrangements to your customers you are in a position to ensure that your clients aren't aware of how you finance your business. This is called Confidential Receivable Financing .

Summary of the advantages of Debtor Financing:

1. Keeps a Business Focused On Better Receivable Management

2.Allows companies to access business financing not available from traditional bank type arrangements

3. Increased cash flow

The Debtor Financing Plan to More Cash Flow -->

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success .

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

' Canadian Business Financing With The Intelligent Use Of Experience '

Tuesday, October 8, 2019

Know Why Government Loans Are Preferred So Much ? We Do !

Make Government Business Loans Work For You

What is the best small business loan for Canadian business owners in the ' SME COMMERCIAL FINANCE ' sector in Canada. When it comes to lack of funding for start up or earlier stage companies already achieving revenues there is no doubt the government small business loan is a very viable solution .

Lack of funding in the earlier stages of a company's growth will always hurt long term business goals for sales and profits. Financing and execution of your business plans are of course as integral to the success of your company.

While many entrepreneurs focus on ' the bank ' for funding they typically cannot get all ( or even some ) of the business capital they need. Government in Canada recognized that a long time via Industry Canada the Canadian Small Business Financing Loan program. Some have written the program is the ' oxygen' for financing a business with government help.

There are some major key benefits to what we describe as the ' best small business loan ' in Canada. And by the way, small means under a million dollars , which in our books isn't that ' small '!

KEY FACTORS IN THE GOVERNMENT GUARANTEED BUSINESS LOAN

For a starter it is the government guaranteeing the majority of your business loan . That clearly eliminates a lot fo the collateral and reliance on personal financial information required by most ' traditional' lending institutions.

Down payments are always an issue for owners and the initial equity, or ' down payment ' you need to get the loan is modest indeed - typically in the 10-20% range.

Timing is everything in business, and if you're working with a proper Canadian Business Financing Advisor closing time on funding can be very quick in loan funding.

What does the Government small business loan finance ? That's a frequent question from clients here at 7 Park Avenue Financial . The answer:

Equipment

Leaseholds

Software

Real estate

Loans under the program are structured as term loans between 2-5 years from an amortization / length of loan perspective . Prepayment is not penalized !!

Steps To Be Successful With A Government Guaranteed Business Loan

A recent articles in Canada's major newspaper, the Globe & Mail, highlighted great ways to achieve success in government financing . That included ensuring what your business financing needs are, being pro-active in putting together a plan and request, and ensuring owners have reasonable credit history .

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance solutions.

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

' Canadian Business Financing With The Intelligent Use Of Experience '

WELCOME !

Wednesday, October 23, 2019

Important Sale Leaseback Financing Success Factors

Crucial Tactics for Sale Leaseback Financing

Sunday, October 20, 2019

Important Steps To Refinancing When The Bank Has Called Your Business Loan

Important Steps To Take When The Bank Has Called Your Commercial Loan