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.



Thursday, August 6, 2020

Canadian Business Working Capital Financing






















Canadian Business Working capital financing challenges sometimes have business owners/managers feeling they're on the proverbial train to nowhere. What then are the issues and are there traditional or new innovative financing strategies available? Let's dig in.

Financing of working capital is required for a number of circumstances in business - the challenge is determining what type of  working capital financing  is best designed to meet your business goals. That might include growth opportunities or just funding day to day operating capital for business operations.

WHAT IS WORKING CAPITAL CASH FLOW AND WHY MUST IT BE ADDRESSED?

 


Your accountants will tell you that the definition of 'working capital' is simply the subtraction of current liabilities from current assets. Those great accountants though aren't necessarily the ones to address the actual challenge accessing cash to cover those shortfalls that fall in between that 'ratio calculation'. Our friends in accounting will also tell us that a ' good ' working capital ratio is 2:1 , namely two times more current assets than current liabilities. A company can of course have ' negative working capital ' further exacerbating the ' cash crunch '.

At 7 Park Avenue Financial we try and help clients instead understand the ' quality of earnings ' -namely how the financials look without accounting exercises around depreciation, etc and ensuring that true profits come from higher sales and better a/r and inventory turnover, where the real profit and cash should come from! Many business owners don't always realize they can avoid borrowing for cash simply by negotiating better terms with suppliers, thereby shortening their cash conversion cycle.


It's at this time that any commercial lender or bank will examine different types of information around your sales, credit profiles and background of owners, and the amount of financing you might require for a business capital need.



Many firms these days are taking the ' quick solution ' financing approach, which has some major benefits but comes with some level of risk also. They look toward short term working capital loans offered by many firms, including online portals ,sometimes called merchant lenders. Although rates are very high the loan formula is exceptionally simple - a loan for approximately 15-20% of your annual sales repaid on a basis that gives comfort to both the lender and the borrower on an installment basis. These loans are almost always 1 year in duration.




Most of the options above are supplied by big banks, which means that if you want to obtain a loan, you will need a good credit score and/or many years in business. Fortunately, there are alternatives for those who do not meet those qualifications. There are steps you can take to obtain business financing with low credit. For example, a merchant cash advance is one way to get the funds you need, and rather than considering your credit, lenders actually look at the amount of time you’ve been in business along with the amount of monthly credit card sales you process. If you can meet a few easy qualifications, you can get the money you need in just a few days, deposited straight into your business bank account. Repayment terms are based on a portion of your daily sales. The ability to pay off these loans from ' sales revenues ' allows many firms to qualify.




Some firms might have a business line of credit in place but need complimentary financing in addition to established facilities. Firms that rely heavily on the inventory component of their business might wish to add to inventory as well as on occasion take advantage of special pricing and supplier discounts. Other firms might have initiatives around new geographic territories or marketing initiatives.

Many early-stage companies require working capital for their investment in r&d capital. At 7 Park Avenue Financial we're big believers in FINANCING TAX CREDITS to accelerate cash flow.


Some companies are in industries that are not ' asset intensive ', but they of course still require cash and are unable to pledge large amounts of hard assets or other collateral such as real estate. Also, most business owners don't wish to have to raise additional equity which of course dilutes ownership. That is why a number of working capital solutions alleviate this problem, and at 7 Park Avenue Financial our experience tells us that companies with growth potential and experienced management who can demonstrate quality preparation of financials, or a good BUSINESS PLAN , etc will always be able to raise cash and access working capital loans.



HOW FAST CAN YOUR COMPANY GROW


The irony of the business owner's concern is, many times, that business is great. We hate getting technical with clients, but finance has a term called 'sustainable growth' - very simply put it's the growth rate your firm can achieve without increasing leverage or the amount of debt to equity in your firm. It's calculated as follows:


ROE X (1-dividends paid out)


ROE is of course return on equity, the amount of net income at the end of the year as a percentage of your firm's net worth.


Perhaps we have surprised some business owners by telling them the exact day that they will have to stop growing based on their inability or desire to borrow!


Anyway, our point is not that, it's simply that at a certain point you cannot grow your business anymore without debt. No one likes taking on too much debt.

WHAT IS AN ASSET BASED WORKING CAPITAL FACILITY ?


A better solution? An asset based working capital facility. This type of facility adds no additional debt to your firm but gives you maximum liquidity for receivables, inventory, and even equipment you already own.


So, we promise, no more technical financial discussion lets discuss the financing you need and the challenges you have. As we stated it is ironic that many times the stress of managing working capital is related to success - you have new orders, contracts, the need to build up inventory, or perhaps you have granted special payment terms to new or existing customers.


At the same time your firm has its own obligations to suppliers and term creditors such as the bank or equipment lenders, etc.


We can say that the problem is very obvious when you have suppliers that want to get paid either upfront or in 30 days, but you have inventory buildup needs and your customers are paying you in closer to 60 days, despite your terms of 30 days.


The traditional solutions are always too obvious, Canadian chartered banks for term loans or operating facilities, or even consideration to giving up some equity in your ownership. That is why the appeal for an unsecured working capital loan is so desireable for many business owners.


Those are solutions that are either desirable by many of our clients. The reality? Financial conditions and lack of collateral prohibit in many cases traditional financing.


Therefore those non traditional, but getting less non traditional solutions look more and more attractive every day. By sacrificing one of two points of gross margin true working capital asset based lending facilities can provide you with all the cash flow you need when it comes to financing inventory at aggressive loan to value, 90% of receivables, and, as we said in some cases equipment and even purchase orders.

BENEFITS OF PROPER CAPITAL LOAN FINANCING



So what is the final effect of a true working capital facility - it's financially much better than taking on term debt or selling equity ownership, etc. We have just shown you that by maximizing a true working capital facility you have increased sales, increased profits, and have not taken on additional debt or given away any portion of your equity stake.

Many firms may choose to take advantage of working capital term loans via the crown corporation supported by the Canadian government. Their solutions are complementary to existing senior lenders and therefore are a good bridge between debt and equity. Larger transactions in this area are termed ' mezzanine financing and, in essence, are unsecured cash flow loans. Typical uses of cash flow short term or long term loans are reduction in accounts payable, or addressing the cost of additional investments in accounts receivable and employee costs including salaries, etc.

Your company might be a ' victim ' of the seasonal tendencies that occur in many industries, therefore requiring additional management focus on the proverbial cash flow credit crunch.


KEY POINT - Business owners must differentiate between long term capital needs and short term cash flow requirements. The concept of matching finance to the appropriate balance sheet asset is key.

Asset acquisitions should be financed through long term debt solutions such as EQUIPMENT FINANCING. Many firms looking to acquire owner-occupied premises should of course consider a commercial mortgage as the proper debt financing in this regard.


FACTORING / ACCOUNTS RECEIVABLE FINANCING / CONFIDENTIAL RECEIVABLE FINANCING 

 


In many instances, either a new or amended BUSINESS LINE OF CREDIT will provide the cash flow your company needs. Either a traditional bank facility or an Asset based line of credit  can provide your company with cash flow that matches sales growth and the covering off of the additional investment your firm must make to carry accounts receivable and inventories. For smaller firms a small business factoring service will often solve the problem.

Canadian businesses that cannot qualify for traditional bank credit facilities can easily access non-bank asset based lending facilities. These facilities will almost always provide more access to credit than bank margining of the balance sheet, and while more expensive, can provide your firm with the cash you need to cover the business operating cycle . 

Factoring companies  in Canada offer, under the umbrella of asset based lending, allows a company to sell receivables on an ongoing basis as soon as sales are generated. Our recommended solution in this area is Confidential A/R Finance, allowing you to bill and collect your own invoices as well as taking advantage of all the benefits of factoring.



The GOVERNMENT OF CANADA SMALL BUSINESS LOAN PROGRAM for capital loans is one of the best loans for business in Canada, and an excellent vehicle for the financing of three specific asset categories:

EQUIPMENT

LEASEHOLD IMPROVEMENTS

REAL ESTATE

Commonly called the ' SBL LOAN ' it offers attractive terms and rates and the large majority of the loan is guaranteed by the federal government of Canada, via INDUSTRY CANADA.



CONCLUSION


Canadian business turns to the working capital finance solution when cash is required to run and grow the business. Different available solutions will allow you to run and grow your company while sales are increasing and existing assets and internal resources won't fill the gap. Access to business capital is key to success and a number of specific financing solutions in alternative lending and traditional finance can offer the best business loan solution for your business.


Speak to a trusted, experienced, and credible business financing advisor for more information on how finance for working capital and true working capital asset based lending facilities can help your Canadian firm grow sales and profits.



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 areas 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial








7 Park Avenue Financial/Copyright/2020


























Canadian Business Working Capital Financing


SALE LEASEBACK LEASING IN CANADA - SALE LEASE BACK 101 !






















Sale leaseback financing is an often underutilized part of the Canadian Equipment and Leasing industry. Many business owners and financial managers in Canadian firms may not yet be aware of the wide popularity and increasing use of this type of alternative financing facility.



For various economic and financial reporting considerations, this finance strategy continues to be scrutinized as a financial option for Canadian business. Let's dig in.

WHAT IS A SALE AND LEASEBACK?



Sale and leaseback financing is a process whereby your firm can sell an asset and lease it back from a financial firm, typically a leasing company , the ' lessor ' ,as it pertains to equipment, or a mortgage firm of some type if it pertains to real estate,( sale lease-back commercial real estate ) such as owner owned premises. At the time you negotiate such financing you have the ability to set out terms of repayment, typically the term of the transaction and payment schedule. As a seller of the asset your firm effectively becomes a lessee with the financial firm becoming of course the ' lessor '.


SHOULD YOU CONSIDER A SALE LEASE BACK



Companies that are capital intensive via investments in fixed assets, equipment, or real estate and ROLLING STOCK are typically great candidates for leaseback financing. The ability to recoup some of the cash in past investments, in times of need is the common reason for considering this type of financing. When a company looks to avoid external financing leasing back owner owned assets makes a lot of sense - especially if there is a consideration for the debt to equity ratio of a company.

Although the transaction does, in fact, show up as debt on the balance sheet that debt goes down with each installment and the company has an offsetting infusion based on the cash received in teh transaction. The process can sometimes be confusing to owners as it is really a combination of sorts of both debt and equity financing by virtue of the cash received.



EXAMPLE OF AN EQUIPMENT SALE LEASEBACK DEAL


Let us assume a transportation/trucking firm has a significant investment in its truck fleet. At the start of the transaction, the trucks are unencumbered with liens by virtues of the ownership of the assets. The trucking firm sells the trucks to the commercial leasing company at an agreed-upon fair price which in some cases can actually be higher than the accounting ' BOOK VALUE ' of the trucks. The proceeds of the transaction typically used for any general corporate purpose, for which there might be a number of reasons.

This financing transaction works well when your firm has the ability to pay back the installments on the transaction and the commercial lender has a comfort level around your financial statements and the understanding that the transaction has a long term benefit to your firm. The borrower must be able to prove proof of ownership of the asset or assets in question and its important to allow for time to close the transaction given that it has a bit more complexity and paperwork than a traditional lease financing transaction.





KEY BENEFITS OF A LEASEBACK TRANSACTION




1. This is an accepted way of raising capital that has a couple key benefits :

2. The company has the right to still use the asset for its original purpose

3. Your firm receives a cash injection based on the amount of the transaction and can preserve existing credit lines or loans with other lenders, allowing your company to maximize cash flow drawdowns


4. It removes the potential requirement of the firm to raise additional equity capital which would dilute ownership holdings - Some experts have compared the transaction, however simplistic, to a pawn shop transaction, whereby the owner has an asset/assets and requires temporary cash. The difference in that transaction though is that the seller in a leaseback is committed to regaining title and ownership of the asset!

5. Financing rates are competitive with general market conditions and your overall ' credit profile '

6. While traditional EQUIPMENT LEASE FINANCING solutions might require a down payment on the transaction leasing back an asset typically does not require a downpayment, sometimes called ' the downstroke '!

7. With business interest rates being at all-time lows for the foreseeable future companies have the ability to take advantage of those low rates

8. Balance sheet improvement - allows the company to reduce fixed assets and increase ' cash on hand '





The overall sale leaseback strategy has been around for a very long time, and, as noted, continues to gain in popularity. The primary reasons for its increasing usage are the ability of business owners to enhance their profits to a certain degree, as well as, even more importantly, to generate additional cash flow for the business. That is the key benefit of the latter would appear to be the most obvious benefit.



Business people continually look for 'creative' solutions to financial and cash flow challenges. Who wouldn't want that? Luckily these days more and more alternative solutions to cash flow needs are around.



The basic strategy? It's simple. Your firm has equipment that has been fully paid for and is currently unencumbered collateral. Your interests are simply that you wish to take advantage of the equity in the equipment, but at the same time you wish to continue to use the asset.

LESSOR APPROVAL CHARACTERISTICS


At 7 Park Avenue Financial we talk to clients about 3 key issues in ensuring faster approval.

1. The ability to demonstrate clear ownership of the asset, free from encumbrances

2. Mutual agreement of borrower and lender of the value and age of the asset - KEY POINT - In many cases it is very appropriate for some additional cost around a 3rd party appraisal by a qualified EQUIPMENT APPRAISER to determine the full proper current value

3. The ability of the borrower to demonstrate the true value and use of the asset in generating sales and profits for the firm.




Naturally, the asset base of consideration for such strategies involves a broad number of industries and an even broader number of assets. More often than not, the need is very basic - how can you leverage assets to bring more cash into the firm? In certain cases, if a transaction is managed properly, you can enhance your overall financial statement ratios.



So, ask our clients, how does it work? You 'sell' the equipment back to the finance or leasing company. Under the umbrella of equipment financing and lease documentation your firm 'leases' the asset back from the finance firm.



There are of course some key accounting issues that Canadian business owners and financial managers have to take into consideration. Based on the value of the transaction your firm may have to book either a gain or loss on the transaction. The ability to capitalize on cash received will always be a key consideration as other financing arrangements your firm might have in place, such as lines of credit, etc, stay intact.




What are some of the other motivations for considering such a strategy? We can broadly group them into a couple of categories - i.e. Cash flow, accounting and tax, and balance sheet, and income statement enhancement.



If your firm structures the transaction as a true operating lease when you enter into the sale leaseback you have somewhat magically taken debt off your balance sheet and improved many of your key operating and loan covenants.



Payments create a monthly expense and this amount more often than not is less than the depreciation taken on the asset, so, via the magic of accounting, your firm has created additional earnings! In cases where you do in fact have a 'gain' on the sale leaseback those also of course add to the profits of your firm. We love those accountants, right?!



In summary, Canadian business owners and financial managers should investigate the strategy of a sale leaseback of assets. In the current economic environment such a strategy can enhance your firm's overall liquidity and profitability. That's a good thing.

KEY POINT - Entering into the sale leaseback consideration there should be a solid understanding of issues such as balance sheet effects, interest rates and financing costs, the difference between a CAPITAL LEASE and an OPERATING LEASE and the purchase option at the end of the term of the lease. ( A higher purchase option has the effect of lowering the monthly payment on a financing lease transaction.

POTENTIAL DISADVANTAGES OF A LEASEBACK FINANCE


In evaluating a commercial financing transaction of this type it is sometimes easy for inexperienced business people to misunderstand this type of transaction, so your firm's goal should be to understand what the financing can do for your firm, ensure you understand any potential risk or disadvantages, as well as understanding how the transaction process works. The one clear and simple disadvantage of the transaction is simply the non-ownership of the asset - many companies have a pride of ownership mentality.

Another potential disadvantage is the potential complexity of working with any existing lender or most importantly your senior lender to get the asset released from their security - this is accomplished through a simple waiver process.

Additionally, proper consideration should be given to the amount of depreciation and obsolescence of any given asset or asset class, and the consideration around an operating lease vs finance lease . Due to changes in worldwide accounting rules off balance sheet financing does not always have the same benefits it used to have .


HOW TO EVALUATE A SALE-LEASEBACK



Generally speaking, a sale leaseback makes sense when assets transferred have value and are appreciated ( example - real estate ) or alternatively they are revenue and profit-producing assets of the business.

Assets that aren't critical to the use of the business are often simply sold and deemed as not being core to the operations of a company. But the refinancing process we have outlined releases equity in assets you own and can provide valuable working capital at a time when it is really needed.



CONCLUSION

Companies have the ability to consider numerous benefits of the sale leaseback process. It is important to ensure that the appropriate business, tax, and accounting considerations are taken and assessed properly. Utilizing this financing strategy allows companies to benefit from tax issues related to sale leaseback accounting, as well of course as utilizing the cash to grow sales revenues, clean up the balance sheet and reduce other more expensive debt.


Seek out and speak to a trusted, credible, and experienced Canadian Business Financing advisor to ensure you are working with the right sale lease-back companies.


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 areas 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial






7 Park Avenue Financial/Copyright/2020

































SALE LEASEBACK LEASING IN CANADA - SALE LEASE BACK 101 !







Monday, August 3, 2020

Asset Based Lending In Canada























Asset based Lending - Canada
is catching on quite quickly to a new breed of financing facility that has been in existence in the U.S. for a number of years. Whether your firm is relatively new, large or small, you have the option of looking at an asset based loan as an alternative financing facility in Canada, unlocking your assets for capital! Let's dig in.

The acronym for Asset Based Lending is ' ABL ' - ABL has grown popular for some very simple reasons :

1. ABL facilities will often resemble a bank credit line, providing the client with full-service banking needs

2. ABL lenders have a solid understanding of specialized asset values

3. Transactions are often very much ' customized ' to a particular firm or industry

4. There are limited or no ' financial covenants in asset-based lending; As an example banks are focused on ' leverage covenants ', thereby forcing firms to meet debt to equity ratios as an example that may be unachievable for many firms. Covenants in finance in banking scenarios become a real challenge as a firm tries to balance ratios versus growth opportunities.

5. There are no real ' upper limits' on the amount a firm can borrow in ABL, while the smaller transactions commence in the 250k range, which is considered a very small facility

6. An ABL loan line of revolving credit facility will almost always deliver more liquidity to a business because loan margins are much more generous; typical advance rates for a/r and inventory are significantly higher than bank credit lines. Stand-alone inventory loans can also be accessed as an inventory loan is a subset of asset based lending.

7. Many company's and certain industries, in general, are very ' seasonal ' when it comes to revenue recognition, need to build up inventory, etc. Asset-based credit address this issue head on. Additionally, certain industries become ' out of favour' in traditional financing circles, and ABL can often easily finance cyclical or industry specific challenges

8. Outside of general borrowing needs asset finance loans are very appropriate for acquisitions and or management buyouts.

9. Certain banks also offer ABL loans and pricing is extremely competitive KEY POINT: It should be noted that in general non-bank commercial asset based lenders have higher rates than Canadian chartered banks

10. Asset based non-bank revolving credit facilities are not really 'capped' with an upper credit limit - they can easily grow as your sales and asset base grows. This is a key differentiator vs a bank line of credit.


Asset Based Lending Versus Cash Flow Lenders



Part of the reason that asset-based lending - ' ABL ' has caught on in Canada is the current state of commercial business banking and in Canada and the access to liquidity challenges that many firms face in the post-2010 business environment. Suffice to say the 2020 pandemic has brought those same liquidity challenges to Canadian businesses


A BUSINESS LOAN WITH COLLATERAL




When your company has significant assets tied up in accounts receivable, inventory equipment, and sometimes real estate you want to ensure you are financing them at optimal levels for both survival and growth. Asset financing is the ultimate working capital finance option, as it comes with flexibility and can deliver urgent timely cash flow needs that many companies require when they are in a process of transition, or, alternatively, exploring significant growth options.





HISTORY OF ABL FINANCING IN CANADA



Although the basic financing concept is new ABL has been prospering in the U.S. for a number of years - Canadian firms compete with U.S. ABL lenders in our own business financing marketplace. Every industry in Canada has potential access to asset financing lending solutions - we note though that many industries are the perfect ' poster child' for ABl. Manufacturers, distributors, retailers are very typical users of the ABL solution.


As we noted some of the largest corporations in Canada utilize this type of financing, but the demand for ABL probably grew more out of the need for smaller and medium-sized firms in Canada - let’s say with revenues under 20 Million dollars - to get the operating financing they need.

BENEFITS OF ASSET BASED LENDING


The benefits of ABL financing seem very obvious to Canadian business owners and financial managers. The financing revolves totally around assets, and places only a very small reliance on debt to equity ratios, operating ratios, cash flow coverage, etc.



When Canadian businesses cannot satisfy their bankers on the above ratios and loan cash flow coverage they view ABL as an alternative financing solution. We would point out that ABL financing, similar to any other commercial financing, is not a solution to a firm who is in a death spiral - years ago ABL had the taint of a 'lender of last resort' - that is categorically not the case now and is utilized by firms who want to maximize operating and working capital financing but cant in many cases satisfy all Canadian chartered bank requirements.

WHEN YOU SHOULD CONSIDER AN ASSET BASED LENDING SOLUTION


ABL finance is a business loan that relies exclusively on the value of assets that become the collateral for a loan or revolving credit facility. Banks as an example place a huge emphasis on a firm's ability to generate positive cash flow from operations. Firms that are unable to demonstrate cash flow but still require financing utilize asset based lending arrangements to generate cash. There may be a number of reasons why a firm cannot temporarily satisfy banking covenants - the firms' financials may not be ready or updated as an example.


The typical scenarios under which a firm considers an asset-based lending arrangement are:



Growing very quickly - in high growth mode



Expanding into new markets



Merging with another firm



In 'Special Loans 'now and wishes alternate financing



We can't over emphasis the before mentioned point about financial statement characteristics - Asset based lines of credit focus solely on assets, that is where the liquidity and the operating facility works at its best. In many cases firms that have previous financing arrangements can significantly increase their credit availability by switching to an ABL line of credit.

EXAMPLE OF AN ASSET BASED WIN!



Our firm, 7 Park Avenue Financial, worked with a firm that was in Special loans with a chartered bank. They had an original line of credit of 750,000.00 - the bank cut it down to 500,000.00 and also put the customer into a Special loans category. We originated an asset based line of credit for 1,000,000.00 based on the firm's receivables, inventory, equipment and real estate. The customer utilized the ABL for about 18 months and then migrated back to commercial chartered banking arrangements with another bank. That story plays out over and over again in Canada.


We can say that the amount of funding a company can receive in an ABL arrangement is really based on a hierarchy of value of any given asset category. So as assets become more liquid on your balance sheet and work up to 'cash on hand; they have higher loan to value ratios. So while it is improbably and very unlikely your firm would receive 100% financing receivables as an example typically qualify for 85-90% funding. Many firms owner their own premises and there is significant equity in real estate, so that category also would receive a higher 'ltv' ( loan to value) possible in the 75% range as is common. Standalone inventory loans are also a subset of ABL financing.



CONCLUSION

Asset Based Lending In Canada can be one of the most effective business credit facilities for customers unable to achieve full traditional bank financing. Securing liquidity through company assets allows your borrowing to expand and contract when you need cash flow. Companies of any size or transitional stage can take advantage of working capital provided by asset based lenders.


Asset based lending will work for your business credit needs if your cash flow requirements are seasonal and revenues fluctuate. If your business plan includes acquisition financing, a turnaround or restructuring, or even a need for capital outside of equity considerations ABL will work for your company. ABL allows you to leverage company assets and is often a bridge back to traditional financing for many companies in Canada. The ability to finance a firm when it is in transition is a key part of ABL's success in Canada.



Asset based lines of credit? Your mission, should you choose to accept it? Investigate this unique financing option and work with a trusted, credible and experienced Canadian business financing advisor if the solutions meet your working capital 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

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 areas 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial








7 Park Avenue Financial/Copyright/2020



















Asset based lending canada




Saturday, August 1, 2020

Inventory And Purchase Order Financing In Canada
























Inventory and Purchase order financing in Canada are two relatively unknown financing strategies for Canadian business owners and financial managers. The ability to complete an inventory and/or purchase order financing strategy allows you to produce more, distribute more effectively and in a cost-efficient manner, and also to buy smarter.

The ability of your firm to both buy smarter with additional capital, plus maintain the right level of inventories is a key factor in competitive success in your industry. INVENTORY AND PO FINANCING can be a stand-alone finance solution, or it can potentially be complementary to your current business financing.

The inability to secure supplier credit in the capacity your company needs is a constant challenge for many business owners. Vendors may often impose payment terms and conditions that simply can't be met and ultimately affect your ability to grow the business and profits. Sudden growth opportunities must be capitalized on or they go to your competitors.




Business owners and financial managers are required to determine what is their optimal financing for their inventory or client orders. Companies with solid P O 's from reputable clients are excellent candidates for PO Finance, while a general manufacturer who desires to build inventory levels on a constant basis should investigate the inventory finance solution.

KEY POINT - The least expensive form of financing is Supplier Financing - so the ability to get extended terms from valued suppliers is in fact the optimal solution, but often not available, necessitating the use of a funding company.




The ability to accept large new contracts as well as the ability of fulfillment to meet your client needs is the true benefit of INVENTORY/PO Finance and the services of inventory financing companies in Canada. Many firms that utilize this method of financing also have the ability to expand into the U.S. or other international markets, opening up massive opportunities for growth.

The ability to have access to capital and enter into new or foreign markets can be a game change to sales and profit growth for any business, Having financing in place to meet purchase order demands allows your firm to negotiate the best pricing and discounts available - in effect, you are ' pre-approved!

International purchase order finance can also benefit from the assistance of the Canadian government which has a mandate via EDC to supplement financing needs for Canadian exporters. A variety of industries can utilize this method of CANADIAN BUSINESS FINANCING and the ultimate solution is always tailor-made to your specific product and customer needs via a capable financing company partner.


P O Finance ensures that the financing in place is properly aligned with your payment terms to both your vendor as well as receipt of payment from your client. Numerous currency exchange issues are also dealt with within the PO order


It is important to understand both the similarities and differences in P O Finance as well as inventory finance solutions. Both function differently.

WHAT IS P O FINANCING?


Purchase order finance is directly related to a specific purchase order or contract and in essence, covers the goods directly related to the purchase order/contract. As a general rule only finished goods are financed under the P O funding mechanism, so no changes or modifications are allowed for the product. The entire process allows your supplier and vendor to be paid.
As a general rule purchase order financing is not for building inventory levels so a general manufacturing firm looking to increase inventory levels via financing would not look to PO Finance.
Purchase Orders are closed when product is shipped and accepted by the end client and invoicing creating a receivable occurs. At that point the a/r directly related to the order if financing in the normal course of business, depending on how the borrower funds receivables via a bank or financing companies in Canada.


Inventory Financing & Inventory Companies



Companies looking to leverage capital for build-up of inventories look to a sole inventory finance facility. The facility can be ' stand-alone ' or as part of a business line of credit or asset based lending facility. Therefore the inventories being financed are not specifically related to any one specific client. It is really a working capital solution for that critical part of your current assets on the balance sheet - inventory!

 Commercial finance lenders or a full service factoring company may choose to visit the borrower on a regular basis to ensure inventory is adequately maintained - companies should be capable of producing inventory reports and ensuring they have proper inventory accounting in place. For larger deals a lender might insist on a PERPETUAL INVENTORY SYSTEM being in place. Inventory can be a major portion of a company's cost of goods sold. ( COGS ). The ability to access capital to fund inventories is challenging and the ability to turn inventories is key to long term financial success.




One of the largest costs when it comes to operating a business in Canada is being able to purchase inventory. However, purchasing quick-turnaround inventory can be difficult for a new business owner. This is where inventory loans come into play.



Companies that tend to look for inventory solutions are distributors and manufacturers. Unlike our     P O Financing example inventory can be in various forms, which typically are raw materials, work that is in progress, and of course finished goods.

In the P O finance process credit adjudication is made on your firm and as well who you client and supplier are key aspects of the final approval to finance decision. When it comes to inventory is all about the valuation of your inventory vis a vis potential liquidation values in event of default from the bank or non-bank commercial lender.

As a general guideline a purchase order financing company will cover approximately 75% of the order from your client. Financing is directly related to the payment to your supplier. For most firms this will typically cover the majority of costs related to your order and it assumes that your company has good gross margins. P O Finance doesn't work well with low margin transactions as the transaction will not cover the additional financing costs. So have a gross margin in the 25-30% range is very desirable for this method of financing.

Companies that require general inventory financing for their ongoing business can get anywhere up to 70% of the agreed upon liquidation values of the inventory. In many cases some sort of third party appraisal might be required, but in general many inventory financiers are very familiar with inventory values and have significant expertise in certain industries. As a manufacturer your goal is to maximize on the funding value of the inventory.



Clients of 7 PARK AVENUE FINANCIAL ask us how they can finance inventory more effectively in their Canadian operations. Inventory financing in a traditional manner had your firm acquiring an inventory facility as part of your Canadian bank operating facility. If you are successful in obtaining such a facility one of the challenges is simply that this level of inventory margining is not sufficient to meet your needs. The very simple reason for this is that the traditional chartered bank does not necessarily understand inventory lending, which requires a unique focus and specialized knowledge of a wide variety of industries.


The best solution for an inventory financing facility in Canada is actually a dual solution.
You should finance inventory separately outside of your bank arrangement – this will give you additional margining with a finance partner who understands your industry and inventory financing needs. The other solution is to combine the inventory financing within a non-bank asset based lending facility that provides you with maximum margining on both inventory and receivables. Your facility operates just like a bank line, but you are receiving maximum liquidity via higher margining of both inventory and receivables.


By higher margining we simply mean that if you were getting nothing or say 25-30% on your inventory credit line you will probably be in a position to now receive between 40-80%. What does that mean? Of course, it signifies greater cash flow and working capital for the Canadian business owner.


A ‘true‘ inventory financing facility will now include margining against all three types of inventory:


- Raw materials

- Work in Progress

- Finished Goods


We caution you not to enter into an inventory financing facility whereby your inventory must be stored at a third party warehouse in order to receive financing consideration. We do not recommend clients pursue this type of facility.


A solid inventory financing facility will allow you to grow sales and increase your working capital base.


With respect to purchase order financing this is clearly another financing strategy that has emerged as growing and more popular in the Canadian business environment. It is not difficult to understand its popularity. Consider your firm has received a large domestic or international order but does not have the working capital ability to properly produce and deliver that order.


More often than not that is simply because of the cash flow cycle – your order is large, you require inventory and equipment to produce the order, after you have produced it you have to bill the order, and then, of course, you wait to collect your receivable. That whole process can easily take 60-120 days in any firm.


With purchase order financing your supplier is paid directly by the P.O. financier. You then receive materials and generate products for your customer. When you bill your customer that invoice must be discounted immediately in order that the purchase order financing firm gets paid. P.O. financing works best when you have a small number of suppliers, and you have good gross margins that can sustain the additional cost of financing the purchase order and then the receivable. It allows you to grow your business and stay significantly more competitive.

Almost any size or type of firm is a candidate for purchase order finance solutions, even less established or smaller firms - as a general rule in order to qualify for financing of inventory a firm should be established and have reasonable financials.

Many inventory finance needs can be accommodated as part of a business line of credit that finances both receivables and inventory as part of the facility. These solutions can come from factoring companies or asset based lending companies. The process of purchasing more inventory via an asset-based line of credit frees up capital for additional purchases. As your receivables and inventory turn you purchase additional products to sell. Firms that have unsecured credit lines have the ability to purchase goods in the normal course of their business.


WHY DOES INVENTORY FINANCE & PO FINANCE WORK?



Alternative lending solutions that we have described work for business for some very fundamental reasons :

Alternative finance is generally much easier to get than traditional bank financing, so solutions such as a receivables loan or non-bank credit line are very accessible

Inventory, a/r, and P O Financing ability grow almost automatically as your business opportunities grow

The ability to leverage asset financing often not available in traditional finance increases cash flow and working capital growth to fund day to day operations and growth opportunities



Business Funding via Purchase order financing, as well as inventory financing in Canada, are ‘boutique‘ in nature. We strongly recommend you investigate the benefits of theses financing strategies by talking to an experienced and credible advisor in this area of Canadian 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

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 areas 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial








7 Park Avenue Financial/Copyright/2020




























Inventory And Purchase Order Financing In Canada


Thursday, July 30, 2020

Business Credit Line Operating Loan Solutions Canada



















Business credit line operating loan arrangements are often sought by companies that are new, established, or growing (that pretty well covers all the scenarios!!) their businesses. The operating loan is often the heart of a company's financial arrangements yet many business owners/financial managers don't really understand all their options for a source of credit in this area of Canadian business financing.


And yes, there are two kinds of business line of credit arrangements your company can undertake, and time has proven there's room enough in town for both of them, but which suits your firm. Let's dig in.


About those two arrangements. There is of course traditional Canadian bank operating lines of credit. These come with typically a maximum ' credit limit' that you can borrow up to based on historical benchmarks of cash flow, sales levels, and quality of receivables and inventory. Banks of course prefer receivables to inventory as they are more liquid and manageable - and quite frankly they aren't in a position to do much with inventory if something goes awry in your business arrangement with the bank.

The key benefit of a bank operating loan and commercial line of credit from a traditional lender is that it is short term in nature and provides maximum flexibility around business borrowing based on the pre-set credit limit designating the amount of funds your firm can borrow at any given time.

Canadian chartered banks offer a revolving line of credit in order to allow your company to bridge payables as receivables are collected. Most Canadian business owners will immediately recognize that more and more clients are delaying payments in order to enhance their own cash flow. The ability to delay payables is a method by which any firm can increase cash versus taking on a business loan.

Bank facilities are priced based upon interest charges on funds used via the ' operating loan ' process. Naturally, balances are paid down as cash inflows are received by the company. When borrowing from a bank a company must satisfy terms and covenants within the approval. Banks view business credit lines as ' short term ' commercial borrowing, and a bank will typically constantly revisit the approval to evaluate ongoing risk - this is part of the regulatory and fiduciary responsibility of Chartered banks in Canada.




Bank facilities are secured, with the most common security being inventory and accounts receivable. Banks consider these types of facilities ' demand loans ', allowing the bank at any time to ' call ' the loan and, you guessed it .. ' demand ' payment in full. Banks register their security on these loans via the appropriate lien filings in the jurisdiction where the business operates. These ' secured loans ' are a large part of bank lending in the Canadian economy, for businesses both small and large, public and private.


KEY POINT - Although Canadian banks secure the operating line of credit via short term current assets ( a/r and inventory ) it is important to understand that the bank will almost always take collateral on all the assets of the company, as they would enforce security by liquidating both short term and long term assets. Those long term assets typically will be equipment and, if applicable, real estate.



From an accounting point of view, the bank line is designated as a liability on the company financials, typically shown as a ' current liability ' given the bank views this as a loan that revolves within a one-year business cycle.

Many businesses in the Canadian economy operate with heavy seasonality being a part of their revenue recognition model. Business lines of credit are a great ' gap bridging ' when seasonality occurs in your company. As a company's CASH CONVERSION CYCLE increases more dependence will be placed on a line of credit for business.




Having that access to bank credit should best be viewed as a strategic tool in your financing of day to day operations. Having the credit facility in place lets you know you have access to business capital at future points in time. Business owners and financial managers should view the ' operating line ' financing of their firm as a part of their overall financing structure, as the company will typically require long term debt in some form, whether that be term loans or equipment financing.



Unsecured Credit Line For Business 



There is an important distinction between ' term loans ' and ' credit lines '. Term loans place major emphasis on the overall credit profile of the borrower - the focus will be good balance sheets, profits, and reasonable owner equity compared to the debt load. The 'credit line ' on the other hand focuses on ongoing financial performance and asset turnover.

We can make the case that the credit decisions and the amount of time it takes to get approvals in each case differ. Also, those term loans or cash flow loans ( also called ' mezzanine loans' ) come with monthly installments and a one time receipt of funds.

The obligation to make those monthly installments is different from the flexibility of the revolving facility that has no fixed payments - although it should be understood that lines of credit are best viewed by the bank when they ' revolve '. In a perfect world, the revolver facility should at some point be paid down in full and then borrowed against on an ongoing basis.


SMALL BUSINESS CREDIT LINE ?
CREDIT LINE FOR BUSINESS NEEDS ?



HOW TO GET A BUSINESS CREDIT LINE



INFORMATION REQUIRED FOR BANK CREDIT LINE APPROVAL



At 7 Park Avenue Financial we focus on a complete package for clients looking for traditional bank financing. A typical package would include:

Articles of Incorporation
Financial Statements
Bank Statements
Aged payables/receivables
Inventory List
Cash flow Projection
Business Plan or Executive Summary


Generally, companies in early-stage/pre-revenue situations will have difficulty in establishing lines of credit. Companies not showing a profit or having inexperienced management  teams will also be challenged in accessing revolving credit.

KEY POINT - Understanding qualification criteria, timelines, loan costs, and miscellaneous fees are crucial to being successful in obtaining bank credit. Understanding bank requirements around loan covenants, debt to equity ratios, and the proper amount of owner equity contribution in the business is key to successful bank negotiations if an advisor is not used. That debt to equity ratio typically desired by a bank is in the 2 to 1, or 3 to 1 range - implying the bank wants to see the proverbial ' skin in the game ' of owners.

We advise clients to always have a backup plan in place for alternative financing solutions when time is of the essence and financing is critical.



THE ABL NON BANK BUSINESS CREDIT LINE





The other alternative, gaining more traction every day in Canada is the Asset-Based Credit Line.        " ABL " )These facilities are offered by commercial finance companies and mirror bank arrangements really only when it comes to how you access funds and how the facility revolves. In almost all other cases differences are a bit more dramatic.
For companies that have a higher debt to equity ratio, or fluctuating profits and cash flow that is erratic at times- For that reason, it is the perfect facility for a business line of credit. The ability of a company to generate working capital by being able to cash flow the assets they have in the business.

At 7 Park Avenue Financial we have found that the ABL solution can assist companies in various categories of financial health - those that require restructuring and turnaround as well firms who require financing significantly more than a bank is willing to provide. That allows firms to grow without being impeded by the covenants and other restrictions a bank might place on a borrower.

Business credit line operating loans give a company the flexibility it needs to manage day to day operations through the ' operating cycle ' of the business - namely the time it takes for a dollar to flow throughout the company from the sale to cash collected. Depending on what industry the company is in that might be a significant amount of time - business experts call it the ' cash conversion cycle '.

Common users of non-bank business credit facilities will often include manufacturers, distributors, retailers, etc although services based companies can also utilize the asset based facility. Outstanding balances of the credit line will fluctuate based on sales revenues and cash needs.



Operating loans via asset-based lending allow a company to borrow a much larger percentage of margin based on the value of the assets. The collateral in the receivables, inventory, and equipment is called a ' borrowing base ' and provides funding on an ongoing basis based on sales revenues and ongoing operations.

In Canada the majority of the banks offer an asset-based business credit line operating loan, but these boutique divisions withing the bank are much smaller and many borrower feel that bank ABL's mirror traditional bank lending - which may or may not be the case in our experience here at 7 Park Avenue Financial. Remember also that banks operate in a highly regulated capacity, while the vast majority of non-bank commercial loan provides in asset-based lending are private firms that are self-regulated. Some ABL lenders in Canada are subsidiaries of foreign corporations wishing to establish a commercial lending base in Canada.




The solid advantage of an operating loan is the fact that you are only using credit when you need to - the facility revolves and interest is only charged on the funds you are using at any given time. Banks tend to structure these facilities as ' demand loans' which means they can be ' called' at any time. Trust us that's not a call you will always want to take!


To effectively access operating loans and business lines of credit of this type you need to ensure you have some key basics nailed down. They include perhaps a business plan or executive summary, but always your historical as well as up to date financials and a cash flow forecast. While asset-based line of credit lenders don't place an overemphasis on the personal credit of owner’s banks insist that the owner demonstrate personal creditworthiness and external assets as backup collateral.

carries.


BENEFITS OF THE ASSET BASED BUSINESS CREDIT LINE OPERATING LOAN



1. Companies take comfort in the fact that they have a steady supply of cash flow based on revenues generated - as revenues grow a company must invest more capital in receivables and inventory which have a time component attached to their conversion to cash

2. Any company that has some level of seasonality or ' bulge ' needs can access liquidity during times of large orders and the necessity to build inventories

3. Rapidly growing firms experiencing ' hyper-growth ' often cannot access traditional bank finance but ABL solutions allow the constant

4. While banks place significant reliance on covenants and operating ratios for financing approval the asset based lender is ' collateral-based ' and instead focuses on regular monitoring of business assets to maximize borrowing power

5. Many asset-based lenders have special niches of expertise in a variety of industries and will frequently customize a borrowing solution outside of the ' credit box ' of a Canadian chartered bank.

6. In some cases, an asset based lender will consider an ' over advance ' of the facility - allowing the company to temporarily borrow beyond the approved limit. A firm's cyclical nature will often be the driver in a request for an over advance - a classic example is when sales are slower but there is a need for inventory build-up due to seasonality. In other cases a borrower might be viewing an opportunity to acquire a large amount of product at special pricing.




At 7 Park Avenue Finacial, we strive to provide a balanced approached to the bank vs non-bank credit line facility debate.

So it's important for ABL borrowers to understand that the cost of business credit lines in the asset based lending environment will almost always be more expensive, and must be factored into the final borrowing decision. Many companies feel that need to constantly update their reporting places some level of burden on the company. Asset based credit lines provide the lender with the ability to control the business cash account when the borrowing base is lower than the approved operating line of credit amount.



Asset credit lines also differ substantially from a bank business loan in that they will almost always lend against your fixed assets as a part of your borrowing line. That's a key difference, especially in companies that are capital intensive.


If you're looking to ensure your search for operating finance and a business credit line operating loan is a boom, and not a bust, seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your operating loan and corporate loan 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

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 areas 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. He is an experienced

business financing consultant

.

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 financing 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.


Click here for the business finance track record of 7 Park Avenue Financial








7 Park Avenue Financial/Copyright/2020
































Business Credit Line Operating Loan Solutions Canada