Cash On Hand! What A Concept ! Let Canadian Accounts Receivables Credit Financing Via Factoring Funding Be Your Solution

Funding Peace Of Mind With Canadian Cash Flow Financing


Information on Canadian accounts receivable credit financing . Why factoring generates ‘ cash on hand ‘ for the cash flow your firm needs.



Accounts receivable credit financing is one method in which thousands of firms in Canada generate ' cash on hand '. That phrase is of course the accounting/business term which business owners and financial managers in Canada refer to with respect to their positive cash balances.

Your ability to have cash on hand at any given time provides you of course with the sense of positive feeling that you're able to fund both operations, and hopefully growth. We've observed over the years that Canadian financial statements typically seem to reflect less cash on hand when it comes to monthly or annual financial statements .

Naturally in tougher economic times it is even hard to maintain positive cash balances, and we're quire sure most business owners would maintain that they are not 100% satisfied with their cash position over time. It is of course important to remember that too much idle cash is a negative item - large corporations even risk losing their ownership when suitors circle with the intent of leveraging the firms cash and assets to in effect take their company away from them via a buyout . But we digress...

The pressures that reduce cash flow are obvious to most business owners and managers. They are fluctuating sales, lower profit margins, and the inevitable slow paying clients which these takes take anywhere from 60 to 90 days, even though your terms are net 30. We wish!

Although management of businesses in the small and medium sized sector in Canada (SME) typically focus on survival and daily operations it's clear to all hopefully that cash flow success also translates into ability to grow your business.

So how does business increase the cash cushion. The simply answer is to lower your costs, get extended credit with key supplies, lower inventory levels, improve collections, and monetize current assets .

Factoring receivables focuses on the latter, monetizing your typically largest asset, your A/R. Accounts receivable credit financing, i.e. ' factoring ' allows you to get paid on invoicing, typically getting 90% of your funds as soon as you deliver your product or service. And by the way, that other 10 per cent isn’t the cost of financing! that balance is remitted to you as soon as your customer pays, less financing costs which are typically in the 2% range if your terms and collectability equate to 30 days. Bottom line, all of a sudden your cash cushion of cash on hand is there, and it’s positive!

The receivable financing industry in Canada is fragmented, consisting of a number of large and small players. They offer the benefit of instant cash flow for firms, allowing them to meet the obligations we spoke of, i.e. payroll, government remittances, and growth.


So when should a customer consider factoring receivables. Typically it’s when you yourself have become the financing company you never intended to be, carrying larger amounts of inventory and receivables than you desire. All of a sudden you're in a position to take supplier discounts and entertain larger orders and contracts.

Is accounts receivable credit financing and factoring for your firm. It is if you maintain proper financial records, have generally creditworthy clients, and are in a position to provide those receivables as collateral for the cash flow. Simple as that.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist your with your ' cash on hand' needs!!





Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/accounts_receivable_credit_financing_factoring.html

Do Something Uncomfortable . Try ABL Finance As Your Canadian Asset Based Lending And Financing Alternative!

Canadian Asset Based Lines Of Credit


Information on ABL finance in Canada. Reasons why asset based lending is the new paradigm in Canadian business financing .



We can't speak for everyone but isn't it safe to say that either in our personal lives, or in business we're often reluctant to enter into a new situations simply because of the feeling of uncomfortableness. That's one of the reasons why Canadian business owners and financial managers might be reluctant to step outside their zone of comfort when it comes to looking at financing via ABL finance; an asset based lending arrangement for their new business line of credit facility.

We would maintain it’s hardly a risk, as an asset based line of credit revolving facility is becoming more mainstream and popular everyday.

In some cases it simply not knowing what an initial course of action might be. That's actually quite simple - investigate what ABL, how it works, what are the benefits, what are the costs, and finally get a sense of how and why it differs from bank facilities.

It's clear to most business owners that the Canadian economy is clearly improving over the challenges of recent years. That's why it’s critical that firms such as yours have the ability to secure sufficient funding to support their growth and survival. It has been that access to funding that has been one of the greatest hurdles

It's clear to many Canadian firms that capital is available, it's simply a case
of being able to access funding that in many cases Canadian chartered banks are reluctant to make available. Canadian bank facilities via commercial business lines are credit are clearly the low cost solution and can offer numerous other services such as cash management, forex, etc.

But what if traditional bank lines of credit are not available to your firm? Enter asset based lending! This is where that feeling of ‘uncomfortable 'might be setting in. Why? Simply because it’s different, in that it focuses solely on your asset and your company's ability to turn those assets into cash flow.

Why is ABL finance a better fit in many cases. We'll offer up simply the fact that it supports growth and a number of unique needs your firm might have.

Recent studies suggest that asset based lending grew over 25% in Canada over the last year or so. The vast majority of this activity is clearly the refinancing of existing bank lines and turning them into an ABL financing arrangement.

In Canada large cap ABL financing is very different from facilities sought by smaller firms. Larger facilities often start in the 5-10 Million dollar ranges and go into the tens and hundreds of millions of dollars. The same type of facility is also available to firms in the SME sector where these working capital faculties start in the 250k+ range. Talk about a broad spectrum.

And that broad spectrum translates into a wide variety of rates and deal structures.

There is a lack of information quite often to the SME borrower who has heard about ABL finance, wants to know more, and might think his or her facility isn’t relevant, if not for size alone. In our opinion the majority of Canadian business owners and financial managers are ' desperate' for quality information on Canadian business financing alternatives.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in both understanding and creating an ABL facility to turn your collateral into cash flow, quickly, and efficiently.





Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.

A SRED Reboot? Maybe , But Not For Your SRED Financing Needs! Finance Your SR Tax Credit Consultant Claims Today

SRED Is In The Garage Getting Fixed , But SR&ED Financing Still Works !


Information on SRED financing in Canada . You Can still finance the claim prepared by your SR&ED consultant . Tax Credit Monetization works for cash flow still works!




We're all familiar with the good news / bad news phrase. So which do you want first? We're optimists, so let’s go with the good news. SRED financing is alive, well and kicking. We're not sure your SR&ED consultant is as happy and bullish as us these days on the sr&ed consultant outlook as a whole. The reason. Seems the good folks in Ottawa aren’t 100% happy with the program; at least that's our interpretation.

While thousands of firms are still aggressively planning to file claims via their Sr&ed consultant for their non repayable tax credit refund just as many might be wondering if financing that claim is still valid and accessible . The answer - a resounding yes!

Statistics in recent years show that over 20,000 claims annually, if not more are filed by firms just like yours. And as a note from our view in the trenches, all of those firms still view that tax credit claim as a key, if not major source of financing for their firm. It's the private companies in the SME ( small to medium enterprise ) sector that file the majority of those claims .That cash flow, when received allows them to do a number of things, including furthering additional r&d, starting or furthering revenue and marketing , and by virtue of that Sr&ed work maintaining their particular dominance in their niche .

Supposedly the worst news seems to infer that claims will either be reduced in some manner, or eliminated to some and focused on others.

Again, we'll leave that to the experts, pundits, and oh my god the politicians; we'll focus instead on the monetizing of those claims into real cash flow and working capital.

Your SRED financing can take one of two forms in Canada. You can cash flow your claim anytime immediately after you file it, or alternatively (with a bit of a track record behind you) you can finance your claim on an accrual basis.

The accrual concept is becoming increasingly popular as it simple fast tracks cash flow re your R&D spend. In essence you're recovering a portion of your R&D as you spend on it. That’s a solid business premise as most Canadian business owners and financial managers would agree.

SRED finance is agnostic to who prepares your claim, if, and it’s a pretty basic if, your claim is prepared by a bona fide Sr&ed consultant with some level of credentials and expertise. As the majority of sred consultants seem to work on contingency naturally they are in some ways more at risk than your firm, so it’s quite easy via references to find a suitable party to submit your claim. Ironically it seems that the consultants themselves are somewhat under attack in the program, but again, that's hearsay.

The actual financing of your tax credit. Simple, as we stated. We explain to clients that they should view the process as a standard business application that is secured by the tax credit claim itself.

Other key aspects of the Sred financing? The basics are as follows: 70% loan to value funding for your filed claim. Typically no payments are made during the duration of the loan, and final adjustments are made at government finalization, returning to your firm the balance of 30% less financing costs. Accrual financing for your tax credit claim might be funded at a lower loan to value.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your tax credit finance loan today.




Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/sred_financing_sr_ed_finance_consultant_tax_credit.html

Why The SBL Government Business Loan Bridges The Gap Between Banking And Canadian Business Financing You Need Today

SBL Loans Fill The Gap In SME Finance In Canada

Information on the Canadian government business loan . How SBL financing provides an intermediate finance solution for start ups and small to medium sized businesses with revenues or projections under 5 Million dollars


We're talking about the gap today. It's the gap that is the bridge between a Canadian government business loan and the traditional banking term loan. So how does SBL financing help you or your firm bridge that gap. Let’s examine.


So what's the ' scoop ' on SBL loans? They are term loans from your bank with Industry Canada, i.e. the federal government guaranteeing 90% of the loan.

So what's the goodness in all of that. Simply that it is a great financing vehicle for start ups, small, and medium sized businesses who are looking for loans they will repay from future cash flow that they might otherwise not be able to obtain from the traditional Canadian chartered banking system. Additionally they might not have the collateral to collateralize the loan in a manner that most banks require.

It's prudent at this time to recap what mainstream chartered banks in Canada require for this same type of financing. Typically a company such as your will be required to have substantial equity in your company or the transaction in question.

Banks in Canada are very focused on what commercial lenders call the 3 C’s of lending. Those 3 C's are the banks interpretation of your character, your company's capacity to borrow ( i.e. repay!), and the quality of collateral you can offer up, The bottom line all that then ... the bank must feel comfortable with your business - its sales, cash flows, and any external issues relating to the current economy, your particular industry, etc.

So that brings us back to ' the great divide '. It’s the gap that the government business loan delivers on Canadian business financing for those firms that can't meet the requirements of Canadian business banking in the traditional manner we think of.

Don't forget also that bank loans come with commitment fees, prepayment penalties, covenants, and extreme default measures when things go awry.

So we have come full circle to a proposed solid alternative, SBL financing, that’s 'SBL ' as being the acronym for what most people call the ' government business loan '.

How does it fill the gap then? It sure is obvious to us. It allows you to repay a loan out of projected cash flow when historical cash flows are insufficient or simply not available. That's because thousands (yes thousands) of firms that utilize the program are in fact start ups, pre-revenue firms that are looking to build and grow a business.

In many cases the assets of the business otherwise would not allow you to complete a financing.

Is there enough money go around in the program? That’s a typical client question. The answer is a resounding yes! In 2010 alone over 7000 businesses borrowed billions under the program. And yes, that's billions with a ' B'.

Uses of the program are equipment financing, leasehold financing, computer and software financing, and even real estate.

The cost of the program is very appealing to business owners in Canada. Rates are competitive, there is no prepayment penalty, and even the owner’s personal guarantee is limited to 25% of the loan. Try and get that deal under more traditional financing - we bet you will find it difficult!

Is it challenging to acquire such a loan? Not if you understand the requirements and create a streamlined process and follow documentation and application details properly and efficiently.

Speak to a trusted credible and experienced Canadian business financing advisor today on Canadian SBL financing. Bridge the gap!





Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/government_business_loan_canadian_financing_sbl.html

Innovative Financing From Canadian Leasing Companies . Mastering The Lease Versus Buy Decision

Information for Canadian companies seeking financing from leasing companies . Master the lease versus buy decision and reap the financial benefits .



At one point or another Canadian companies of all size realize that financing new or existing assets via leasing companies in Canada works far better than buying those assets; in effect they have mastered and understood the lease versus buy decision.

It's never hurts for us to cover the basics with clients, so we constantly re-enforce the fact that equipment leases and loans allow you to stay ahead of the technology curve in your industry - in effect you have the ' latest and greatest ' with which to compete .

Conservation of capital is also a key point at the top of our list; in effect you don’t have to service a bank term loan for the asset. Bank loans for assets also have related issues that can significantly impact your firm, such as reduction in your overall borrowing arrangement, etc. It's no secret then that 80% of all North American businesses lease some assets they need for their firm.

Your monthly payment of course is dependent on the asset size and the structure of your lease or service agreement with leasing companies in Canada.

Innovation in financing via a lease often comes from the type of lease you enter into. In Canada two primary offerings are on the table - the capital lease, aka ' lease to own ', and the operating lease, which we can effectively call the ' lease to use'.

Innovation abounds in operating lease financing. It’s the ultimate solution for investments you make in areas such as technology, telecom, etc. Most borrowers, (and we definitely don’t agree with their focus) tend to hone in on the monthly payment. In an operating lease the monthly payment is significantly lower, anywhere from 5-20% depending on the asset size and type.

At the end of the term of your operating lease the equipment is not fully paid for. Don’t worry, that’s a good thing, because a properly structured operating lease via Canadian leasing companies allows you to at that point consider purchasing, returning, or continuing the arrangement. Those options are standard in a properly structured operating lease.

While payments on a capital lease are higher don’t forget that you own the equipment at the end of the term. This of course can be a double edged financial sword! , given that the equipment might have either significant value, some value, or no value. On balance we would say that the majority of companies that enter into a capital lease scenario do so mainly because they want to conserve cash flow.

We referenced the ' lease versus buy' decision. That’s the term referred to as the Canadian business owner or financial manager tries to decide whether he should lease or buy an asset.


Is any financial decision always 100% right? Of course not, so when it makes sense buying an asset gives you ownership of the asset, plus your ability to control the ultimate use and residual value. In some cases your accountant might be able to show you buying is less expensive than lease finance.


We tell client that in the financing decision process they should consider things such as the final monthly payment, related services to the asset that are financeable, their purchase options, as well as the cash flow effects of the transaction . Oh and by the way, most busines owners quickly realize that lease financing is easier to obtain and receive approval for. Leasing companies in Canada are thriving and want your business.

Speak to a trusted, credible and experienced Canadian business financing advisor on how innovative financing from Canadian leasing companies might make sense for your firm. You'll have mastered the lease versus buy decision!





Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/lease_versus_buy_financing_leasing_companies.html

6 Ways To Compare And Analyze Asset Based Lending Revolving Credit Facilities . ABL Financing Works

Are You In a Position To Properly Compare Business Lines Of Credit ? You are now!

Information on abl revolving credit facilities . Why financing via asset based lending is increasing as an option in Canadian business .



Clients who listen to us tout the positive aspects of business revolving credit via abl asset based lending and financing sometimes have a great question for us ; namely ' How can we compare this type of Canadian business financing to other forms of lending, i.e. the traditional chartered bank line of credit ?'

Good question! Right? So a good way to do that is to set up 6 common benchmarks that allow you as a Canadian business owner or financial manager to do a proper analysis or comparison. Let's cover off the basics of those 6 comparison points.

First of all, we can start with borrowing capability. In general terms we can make the following statement - under a bank facility you have a pre -set credit limit that typically is reviewed annually. However with an ABL facility your borrowing is always tied to the asset base of your firm, which typically is a total sum or receivables, inventory, unencumbered equipment, and even real estate. While bank A/R facilities are more often than note capped at 75% of A/R the asset based revolver will typically come in at 90%. On top of that you will also receive more generous inventory margining 99% of the time, in our opinion.

Let’s move on to overall structure, our 2nd comparable. Larger more high quality asset based facilities typically have a multi year length, while your bank facility is renewed (hopefully!) annually based on historical financial performance.

Point # 3, which we will call follow up or monitoring via your lender. Here is where a dramatic difference occurs. Your bank will assess and provide and renew the credit facility based on operating ratios, loan covenants, external collateral perhaps, and quality of owner guarantees.

Asset based lending takes a different approach; it counts your assets, both at the start of the facility, and periodically during the facility. So in the same manner that you provide what bankers call ' borrowing certificates ‘the ABL lender actually only focuses on those same assets within those certificates. Are we making ourselves clear, it’s always about the assets!

Point # 4. Bank lines of credit are available from... you guessed it... Canadian chartered banks. The ABL revolving credit universe in Canada, while not huge, is non bank in nature.

It is made up of ' unregulated " (banks are regulated) independent finance firms, small and large that offer revolving credit financing to Canadian business. Faculties are available from 250k to hundreds of millions of dollars in size. As such all types of firms that might not qualify for traditional bank financing are immediately eligible for ABL finance, even if they have financial challenges, up to and including considering a bankruptcy filing!

Let’s move on to point # 5 - pricing. While bank pricing is generally perceived as the best financial cost on Canadian business borrowing clients of the same credit quality can achieve the same or better pricing via an asset based line of credit. Firms who can't obtain bank lines of credit still qualify, but of course pay more for these facilities.

Last, but not least, covenants. While banks focus on cash flow coverage (typically 1.25:1) balance sheet ratios, and leverage ABL lending draws on appraisals of assets, reporting, and operational type audits.

What’s better for your firm a traditional bank business line of credit or an ABL financing. You're now in a position to better decide. Speak to a trusted, credible and experienced Canadian business financing advisor today on moving forth with the selection of your choice.





Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/revolving_credit_asset_based_lending_abl_financing.html

Business Equipment Leasing And Financing In Canada . When And With Whom To Lease

Carefully pick your partner and pick your solution in Canadian business lease financing .


Information on equipment leasing in Canada . When business lease financing makes sense, and what companies you should be dealing with .



As always, it's a question of the right time and right place. We're discussing business equipment leasing in Canada. When should Canadian business owners and financial managers consider lease financing for asset acquisition and use. We've got some basic checklists on what works when, and, as importantly, with whom!

We're forgiving you if you feel that the many advantages of equipment finance in Canada are sometimes overdone, or overstated. There is of course things such as ' pride of ownership ‘. Furthermore, some, certainly not all assets appreciate over time, or at least hold their value, so there are certain times when 100% purchase for cash / outright ownership seems to make sense.

Additionally, if you enter into an operating lease scenario you have certain obligations to purchase or give back the equipment at the end of the lease. What then, especially if a suitable alternative or upgrade isn't available?

It's just that we think we can count on one hand the amount of assets that appreciate over time these days, and items such as computers certainly aren’t one of them.

So when exactly should the business owner or financial management of a firm consider leasing? One of those cases might be when it's simply cost prohibitive to purchase an asset outright, or if the rates to finance that purchase via a loan seem too high.

Most businesses in Canada don't fully investigate the accounting and tax implications of a lease vs. buy scenario. If they did they might find that those benefits, coupled with a reasonable and affordable monthly payment make business equipment leasing an obvious choice.

Additional guidelines that might make you consider lease financing are areas such as equipment obsolescence, usage that is only temporary in nature, etc.

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

We can imagine the inexperienced business owners or financials manager’s quandary, or indecision on who to deal with. In Canada you have 4 choices, and it makes sense to know the benefits and basics of each of these.

Your four choices are commercial finance leasing companies that are most often private firms specializing in leased assets. Choice # 2 bank leasing companies in Canada; these are closely tied to their parent companies, Canadian chartered banks. Choice 3 is often a fabulous choice, these are the prisoners! Prisoners? Well actually we mean captives, they are finance firms related directly to the manufacturer of the business equipment you wish to lease.

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

Knowing when and with whom to finance your assets can put your firm on the track business financing success.






Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/business_equipment_leasing_financing_lease.html

Equipment Loans And Leases In Canada ! Which One Of Three Options in Business Leasing And Financing Works For Your Firm?

Leasing Business Assets Makes Sense - 80% Of Canadian Firms Utilize This Financing Strategy



Information on equipment loans and leases in Canadian business asset financing . Which leasing options works for your firm?



The need is often there, but the solution might not be always as obvious as it seems. We're talking about equipment loans and leases in Canada - those unique structures that allow business leasing strategies used by your firm to acquire financing for the assets it needs... to operate, survive, and grow!




When Canadian business owners and financial managers are faced with the challenge of fixed asset finance their oft immediate option is the traditional business loan. This might be a bank term loan for example. The criteria, we in the industry call it ' the credit bar ' might often be fairly high to achieve the types of term financing you need on structures that make sense for your firm.




So, if that was Plan A, and Plan A doesn’t work, whats left? The answer, quite simply is equipment leases for business financing. Rates and terms are quite competitive to the bank, and Canadian business, in general we feel, seems to think that lease financing proceeds with less of a ' hassle '.




Your equipment needs might be from several aspects of your business, computing, machinery, office equipment, etc. All of those assets of course run your company; they're important.




We spoke of the bank term loan as an option, the other more obvious one might have been a cash purchase , using the funds ( if they are there !) to acquire the equipment outright . However, using that capital in this manner if often a classic ' mismatch ' of funds; your firm, incorrectly so, is using short term cash for long term asset acquisition. Bottom line, not a good thing. The reality is you want to use those funds for operating and revenue growth.

That then brings us to what we feel what might be the optimal solution in business financing for assets, ' leasing '. Your new found ability to acquire assets with little or no down payment, bundle in other costs such as shipping, installation, warranty, etc becomes a solid new strategy for asset finance for Canadian business owners.

When utilizing lease finance you are in effect leveraging your cash flow, getting the most out of it, all the same time matching outflows of cash with future inflows of sales and profits arising out of the use of those operating fixed assets you are financing. Our strategy clearly works best for companies who find they need to constantly refresh assets such as computing, or shop floor equipment.



Oh, and by the way, thousands of businesses that don't qualify for bank term loans for assets do in fact always qualify for lease financing. Transactions are structured on a combination focus on the value and use of the asset, your current and future cash flows, etc .Oh, and by the way, your lease payments can generally be expenses and set off against tax obligations.



We spoke of three options in Canada under equipment loans and leases financing scenarios. Those three options are capital leases, operating leases and sale leaseback of assets you own already. Each of these options has different benefits, and gives your firm different rights and obligations. Speak to a trusted, credible and experienced Canadian business financing advisor to identify which of these 3 options make sense for your firm.




Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.

Info re: Canadian business financing & contact details:


http://www.7parkavenuefinancial.com/equipment_loans_leases_business_financing_leasing.html

Downside Of Canadian ABL Asset Based Finance ? P.S. There Is No Downside! Business Financing And Lending That Works

Asset Based Lending Works



Information on ABL asset based finance. Explaining the perceived downside of lending via asset base lines of credit financing for Canadian firms.





So, which is it? We're big proponents of ABL asset based finance in Canada. So once in awhile a client pops the question. What's the question? It's ' Is there any downside to asset based financing for a Canadian firm?" Fair enough. ABL lending seems to have only good things attached to it in terms of the benefits. So about that downside...

We often hear the term perception versus reality. In the mind of the perceiver the perception is of course reality.

The world of ABL financing in Canada is in some ways fairly new. It's used by wholesalers, distributors, retailers, and manufacturers as an alternative to the commonly known ' bank operating line of credit '. One guesses that to be able to ' pan ' something and express concerns about the downside that you have to know what you're talking about.

In simple terms ABL lending in the context we're talking about it is a revolving line of credit secured by the assets of your company. Those assets are most commonly A/R, inventories, and in some cases we can throw unencumbered fixed assets and real estate into the mix. Again, simply speaking you borrow on a daily basis against the total value of all those assets once the asset value is agreed upon between yourself and the ABL lender.

So, on to that perceived downside! Many business owners and financial managers make the assumption that their firm must have the same credit quality that Canadian chartered banks require - that being profits, clean balance sheets, owner guarantees, the necessity for outside collateral on occasion, etc.

So the perception is that the downside here is that approval for ABL asset based finance is challenging. That clearly is not the case, if your firm has assets that can be financed you are in fact the best candidate for asset based lending.

Pricing. That clearly is perceived by many clients as the downside to this newer method of financing Canadian business. So, again, perception, or reality?! The reality is as follows: larger asset based lines of credit; particularly those in excess of 3 Million dollars are priced ultra competitively with Canadian banks. In some cases they might be lower!

How's that for a perception breaker?! For facilities between 250k and the, say 3 Million range pricing is done based on credit quality. In general these facilities are in fact priced higher, but in fact become the only alternative for firms that can't access any form of traditional financing at all.

‘Our company is public ' says a CFO. So we assume we can't access ABL revolver facilities?' Nothing can be further from the truth, as our ABL financing solution serves both private and publicly controlled companies, either on the TSX or Venture exchange in Canada. Even subsidiaries of U.S. companies by the way could qualify for asset based lines of credit. And in fact we think shareholders of public companies would like the idea that asset based facilities tend to grow and provide ongoing capital as the firm grows.

Fees. That’s the other common complaint we occasionally here about asset based finance. Here's where we will give in a little bit to those naysayers, as yes, there are some miscellaneous fees associated with ABL lending. But those fees only are a bit larger when we're talking about those very large revolving facilities, and in that case the pricing and access to more credit and working capital tend to offset any cost such as an appraisal fee, commitment fee, etc.

Finally, time to get approved and closed. Clients perceive ABL financing, perhaps because it’s different, as taking long to close. If you have solid reporting, can talk intelligently about your business and are prepared to commit to a new lending relationship we don't think there is any more time involved versus a bank line of credit.

So, perceptions. Realities. You decide, but be open to accessing this new method of financing. Speak to a trusted credible and experienced Canadian business financing advisor for assistance in your reality check!







Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.


Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/abl_asset_based_finance_lending_financing.html

How Asset Based Loans And ABL Financing Provide Superior Canadian Lending Solutions For Your Company

Shouldn’t You Be Considering Asset Based Lines Of Credit?


Information on asset based loans in Canada and how this type of lending and financing via ABL facilities for inventory and receivables generate more cash than traditional bank lines for Canadian business .


It's certainly not an unreasonable question. The question from clients is simple: ' How Do asset based loans via an ABL financing arrangement provide more cash to a business than a traditional lending arrangement '. As we said, fair enough. Let’s explain.

Whether you are a manufacturer, a distributor or wholesaler, or even a retailer with inventory and receivable investments on your balance sheet... well guess what, you need a business line of credit.

A revolving credit facility via either a bank or an independent non bank finance firm provides you with ongoing operating capital to optimize your firm’s growth. Naturally your inventory and A/R are the essential collateral behind asset based loans. As you convert inventory into receivables or cash sales your working capital and cash flow fluctuate, on a daily basis. Naturally along the way there are seasonal or one time bulges in your sales and finance needs.

By monetizing that collateral (our aforementioned A/R and inventory) you create cash flow to keep your business surviving, and, hopefully, growing! Naturally you have one other alternative to all this, which is putting more of your own personal owner equity into the business, or bring in outside capital. That’s allowed by the way, it’s just more expensive and dilutes your ownership - so in general not a good thing for all the obvious reasons.

So back to our question, which was ' how does the abl facility add more cash than say, for example a bank facility '. The answer - it’s all in the margining. By drawing down on better margins on eligible inventory and receivables you accelerate cash flow based on growing sales. In essence you're also turning money over quickly, and those increased turns of your accounts and stock lead to a greater return on equity. That’s a good thing!

So that’s the basic theory behind abl backed revolving credit facilities - let's check into the real world for a minute and demonstrate exactly how that margining might work.


Naturally there are all kinds of ' inventory ' in the Canadian business landscape. And not to complicate things, but that inventory is broken down into raw materials; work in process (‘WIP’) and of course finished goods. By agreement with your ABL lender you create an ongoing borrowing base for your type of inventory, given its cost and salability.

In general we can make the statement that finished goods and raw materials can often be financed anywhere from 30-70 cents on the dollar.
We hate to generalize, but given the variety of inventory it’s safe to say each industry and company is a bit unique in that manner.

So, on to A/R. What's the scoop here? Receivables it can be said are the most coveted collateral by your abl lending and financing partner. Very common advance rates are in the 90% range, and it’s certainly not uncommon if you have good records and a track record to even negotiate one time temporary bulges.

In summary, when you consider that all companies in Canada of any substance are eligible for asset based loans, and giving weight to the fact that they provide more cash flow than traditional bank financing it is safe to say this financing solution should be at least examined by Canadian business owners and financial managers looking to enhance working capital .

Speak to a trusted, credible and experienced Canadian business financing advisor on how your firm can get a better deal on cash flow financing.



Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing . Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/asset_based_loans_lending_financing_abl.html

Canadian Franchise Financing Loans ! 3 Things You Wish They Had Told You About A Business Franchise Loan

What You Need To Know To Finance A Franchise In Canada

Information on how to successfully obtain a business franchise loan in Canada. Financing loans for franchising success . Use these key pieces of advice to make entrepreneurship a reality .



If only I had known! That's one of our clients talking about a business franchise loan in Canada. The financing loans for franchising in Canada is often a major challenge.

Let's examine 3 key areas of the franchise financing dilemma and help you get to the goal line on what is surely one of most rewarding and sometimes daunting business journeys that you have been on.

And what are those 3 things you sure wished they had told you previously? They are as follows - there is a unique program specially designed to cover off the majority of franchise financings in Canada. Who knew! Secondly certain aspects of your franchise business can be financed, certain things can’t. You need to know what's what and plan accordingly. Thirdly... it’s all about that word plan, because if you are 100% prepared, with a basic package, your chances of getting a business franchise loan financing approved increase commensurately. We can pretty well guarantee that.

We have always agreed that a franchise purchase in Canada is a great way to balance entrepreneurial risk. The range of opportunities available to you seems to grow every day, and if you are working with the right people and the right institutions you're in a position to capitalize on that success.

We talked about the necessity to be prepared. There was a study done in the U.S. and we're pretty sure it mirrors the Canadian experience, that over 80% of loans to new small businesses ( that’s kind of what a franchise is , wouldn’t you agree ?) are declined only for the one reason that the applicant wasn’t fully prepared with respect to a quality package of basic information.

And what those business folks hear about how basic some of those requirements are it must be downright embarrassing to know franchise financing loans weren’t approved simply because you didn’t cover off the basics.

We also point out to clients that a business franchise loan in Canada can cover of purchasing a new turnkey location, and in fact can also pertain to financing an existing franchise within the chain you are focusing on. This scenario of course requires full co operation and disclosure from both the current franchisee as well as the franchisors permission for you to complete the transaction.

Many franchisees ' turbo charge ' their chances of financial freedom and progress by adding additional units to a franchise they already own, thereby building their own mini empire! All power to them of course. We do caution clients though that it’s important to set up separate legal entities for each of those locations from a view point of risk and accounting implications.

So, what can be financed, and what can't. Typically what are financeable in a franchise scenario are leaseholds, equipment, real estate if applicable, and items such as software of POS systems. What is not financeable, much to the chagrin of a lot of our clients is inventory, as well as the franchise fee, prepaid rents, consulting you may have needed, etc.

The Government CSBF/BIL program which is administered by the banks is your quick and accessible solution for franchise financing under $350,000.00. It works great for starting any new business, and rates, structure and other aspects of the program such as limited liability make it almost perfect for what you want to achieve.

So... if only you had known! But now you do. So speak to a trusted, credible and experienced Canadian business financing advisor for franchise financing loans that make sense and are achievable under your personal circumstances.


Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/business_franchise_loan_financing_loans.html

A Canadian Business Financing Epiphany ! ABL Asset Based lending Is The Quiet Revolution In A Business Line Of Credit Facility

Canadian asset based lending - Business Lines of Credit


Information on asset based lending and financing in Canada . Why an ABL facility is one of Canadian businesses best form of business lien of credit finance .




And that's when it hits you. We're talking about a Canadian business financing ' epiphany' - that being the term used for a ' sudden, intuitive perception or insight '. And what exactly is that ' insight'. It's simply that an ABL facility, which is the asset based lending term for business line of credit is different, and in many ways a lot better than traditional term loans or Canadian chartered bank facilities.

So, that’s a fairly dramatic statement, so let’s set out to provide some facts and valuable information on these business revolving credit facilities.

Canadian businesses use ABL financing to leverage their assets, typically receivables, inventory and equipment into liquidity for working capital and cash flow. The most common question we get around this type of business financing is ' Why is an ABL facility different than a bank line of credit? Fair question, right?

The answer is simply as follows - it’s your asset values that determine the amount of business credit line you are eligible for. Banks view business lines of credit in Canada in an entirely different manner. It’s just a different way of looking at things. Asset based lending looks at the assets themselves as the ' prime ' collateral. In the cases of banks they look at whats important to their criteria, which are typically historical cash flow, profitability, a balance sheet that has reasonable debt, outside collateral, etc.

It's this difference then that is what becomes almost shocking to a degree on Canadian borrowing for business. Just imagine, no ratios, covenants, reliance on personal guarantees, just a focus on the assets themselves. And the more verifiable assets you have the more you can borrow.

Therefore the key advantage to this type of borrowing and financing is that the ABL facility accelerates that cash flow and allows your company to access all its working capital needs as you grow. Naturally it goes without saying that your company now has an alternative to taking on additional debt or having to dilute some or a large part of your equity ownership. Remember, almost always equity is much more expensive than debt in the long run.

Is every one eligible for an asset based lending abl facility? The general answer is yes. Junior type asset based lending and financing facilities for inventory and A/R can start as low as 250k and quite frankly there is really no upper limit for facility size. Unbeknownst to many some of the largest corporations in Canada utilize this type of financing, having forsaken bank lines of credit in the traditional sense.

Eligibility always is a key question from clients. Whats required? is really their question. First of all you have to have proper financials and be able to maintain solid reporting records on key assets such as receivables, inventory, etc. We don’t necessarily consider it a downside, but it is safe to say there is a bit more monthly reporting in an ABL facility , if only for the reason that its all about the assets, not the ratios and covenants you might be used to now .

The advance rates (how much you can borrow!) are significant in asset based lending. A/R is typically margined at 90%, and inventory (yes, inventory!) is anywhere from 30-70% depending on the type of product you produce/sell.

So, that’s the epiphany! Just that sudden insight that threes a quiet revolution going on in business financing that you might want to check out. Speak to a trusted, credible and experienced Canadian business financing advisor on the merits of ABL financing.


Stan Prokop - founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/abl_facility_asset_based_lending_financing.html

Lot’s To Gain & Nothing To Lose . 4 Tips On Best Leasing Companies For Asset Business Financing

Canadian Equipment Lease Financing Advice


Information on leasing equipment companies in Canada . What to thoroughly investigate prior to financing business assets .



Since when is some good information that helps you save money and get a good deal in business not a good thing? That's our feeling, so when you are looking for leasing equipment companies in Canada for the financing of business assets here's 4 tips on just that!

Many Canadian business owners and financial managers often consider equipment financing a relatively simple process. It is, if you know who to deal with, what to ask, and what some of the pitfalls might be.

That simplicity is often masked by some key tips and strategies you can employ to save you thousands of dollars, both now, and later. It's frankly all about business decisions that you need to make both now, and later at the end of your equipment lease. In general terms these considerations can be lumped into several categories - financial, risk, tax, accounting and legal.

All of a sudden that lease for the new computer system might not seem so simple, right? At the end of the day you want to ensure you have made the right decision, so as to warrant that financing your assets was better than purchasing or borrowing for them . Until you understand our 4 key tips you can’t make that decision! So let’s dig in!


First of all, exactly what are you looking for? We can see the puzzled look on our clients face already. ‘Haven’t we already told you, a lease!)? But what we mean is that there are different types of leases in Canada, in some cases you want to spend a decent bit of time investigating operating leases, which have different consequences before, during and at the end of the term of the lease. In many cases these payments will be lower, but you will be faced with 3 different options at the end of the term of the lease, for returning, purchasing, or extending the transaction.

If you want a simple finance ' lease to own' that becomes a much more straightforward transaction.

Tips # 2- Who do you actually deal with? In Canada leasing equipment companies are thriving - there is solid, healthy competition and business is quite frankly booming. Your choices on who to deal with are several - independent financial firms who are non bank in nature. Banks in Canada have again embraced leasing so you are in a position to talk to a bank leasing entity also. Their rates and terms are excellent of course, except for one caveat which we will discuss shortly. Suffice to say the ' credit approval’ bar is a bit higher in bank leasing in Canada.

You can also deal with captive or vendor finance firms, who typically are aligned with the manufacturer of the equipment. They are clearly
incented to finance you, because they also make the product!

One very solid solution is to also deal with a lease finance intermediary. Good ones (yes, there are not so good ones) can ensure you have access to great rates, terms, and structures, also saving you a lot of time. Respected intermediaries will bring a tremendous amount of value to your transaction, so check their ethics and reputation and experience. Ask for examples of transactions completed.

TIP# 3 - Lets talk about who to deal with for business financing of your lease transactions if in fact you choose the independent lease company route. Naturally you want to be aligned with firms that have a good reputation, can provide competitive rates and funding, and if they in fact have the capital to complete your transactions. (They borrow money too don’t forget!) Documentation is key in good leasing equipment companies, look for straightforward doc's.!

Tip # 4- If you do in fact choose a bank leasing firm find out how the lease transaction fits into your general borrowing agreement . By financing with a bank have you restricted your ability to borrow more in the future for operating needs?

Got a lot to worry about these days in business, and business financing. Who doesn’t?! Consider talking to a trusted, experienced and credible Canadian business financing advisor on your asset financing needs. As we said, lots to gain, nothing to lose.




Stan Prokop - founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/equipment_leasing_companies_business_financing.html

It’s 11 O’clock – Do You Know Where Your Canadian Financing & Funding For Production Tax Credits Is? Finance Your Film Tax Incentive Now

Let Film Tax Credit Financing In Canada Get Your Project To The Top Of The Mountain

Information on financing and film funding via monetization of your production tax credit . Finance your film and digital media tax incentive for project cash flow and working capital .



When we speak to producers/owners of film, TV and digital animation projects it always seems to be late. Late in respect to getting the financing they need for their projects. That's why it's never been as important a time as now to consider film funding and financing for TV and digital animation projects via the production tax incentive offered by Canadian provincial and federal governments.

The reality is that the Canadian tax credits available to you are currently some of the best administered and most generous in the world.

Using these credits is of course a solid way to help ' cash flow' your film. And with the right assistance, team and advisors you can creatively even pre-fund the tax incentive prior to final filing; of course eliminating then waiting for your cheque from the government.

And by they way, it’s certainly not a complicated process. We liken it with clients to a simply business financing application, one of course that is supplemented with key info on your production such as a budget that clearly that will be the essence of the tax credit application.

Naturally we spoke of a key advantage of the tax credit which was the ever elusive cash flow required to complete your project. But don’t forget also that its a well worn and proven saying in any business financing that ' debt is cheaper than equity ' so we can safely say that by maximizing your tax credit component you naturally enhance and retain equity , i.e. the ownership in your project . Bottom line, why give up equity when you don’t have to with a solid alternative such as tax credit film funding. And don’t forget that applies to TV and the growing digital media projects also.

Canada seems to continue to view in a very positive manner the impact the genres of film, TV and digital media have on the overall Canadian economy. Issues such as employment and future tax revenues seem to drive the overall thinking.

Canadian tax credit financing is not that fragmented as in the U.S. and other parts of the world. Each of the provinces work closely with the federal government which promotes a solid co operative effort.

Many U.S. and other producers in both digital media and other genres are opening Canadian offices. Gaming and video has become the fastest growing segment of the industry. It used to be mainly because of the Canadian $ exchange rate, that clearly is not longer the reason. Canada, aka ' Hollywood North' has clearly evolved into a major center for film, special effects, and gaming. One studio estimated that it costs 1/5 of the expense to create a VFX Green Room in Vancouver as opposed to L.A...

And don’t forget our subject matter today, which is thanks to a guy named DAVE. Dave is the acronym for the Digital Animation Visual Effects tax credit which provides, as an example a 50% tax incentive credit on labor

Because major Canadian centers such as Toronto, Vancouver and Montreal have great talent pools for the industry that allows the labor portion of the tax credit to be maximized - and that’s a good thing, translating into extra cash and working capital for your projects.

In Ontario for example tax credits are actually an ' online ' process for application, with major effort having gone into streamlining the process and approval times.

To finalize and finance your tax credit you need two critical team members, a tax credit expert who can maximize your claim, as well as an experienced Canadian business financing advisor who can cash flow and finance your tax credit for the obvious benefits we have mentioned.

So, it’s getting late. Do you know where your tax credit and financing is? Speak to a Canadian Expert for film and digital animation financing of your next production.



ABOUT THE AUTHOR - STAN PROKOP

7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING

http://www.7parkavenuefinancial.com/film_funding_tax_incentive_financing_production.html

Are You Eligible? Canadian Government Small Business Loan Qualifications – SBL Financing Is The Funding You’re Looking For !

Curious About SBL Government Financing Loans?



Information on the government small business loan ( SBL ) financing program in Canada . Start Up ? In Business ? Here’s how to qualify for this great funding program .



It's actually not that complicated. The Government Small business loan financing program makes funding for your new or established Canadian company accessible and on terms that even larger more established firms simply can’t often achieve.

Funding under the SBL program obviously has a long term gain for Canada as the 7000+ firms that use the program every year create jobs, pay taxes, etc.

Clients sitting down with us only want to know one thing. Are they eligible?! Eligibility for small business loan financing therefore allows them to reap the financial benefits of the program.

So, eligibility. Its a simple case of knowing how the loan guaranty program works , what options are available from a structure viewpoint, and what exactly does the program finance ?

Great questions. Let’s get some answers going! The government small business loan financing option was developed for businesses just like yours. You can either be a start up, or an established firm already in business, with the one caveat being that your revenues must be under 5 Million dollars annually.

Because you may not be eligible for financing at a Canadian chartered bank doesn’t mean you aren’t qualified to receive the SBL loan. That’s because the government guarantee on the loan, by its nature, allows the bank to now provide you with the financing you need for your business.

So when actually are you eligible ?The answer is ' all the time' as the program has been in place for years and allows you to obtain financing for real estate, equipment and capital assets, including software, and even leasehold improvements to your business facility . Many restaurants and franchises use the program for the initial funding of their transaction.

So whets with the guarantee? As we referenced it’s the federal government that guarantees the funding to your chartered bank or other financial institution that participates in the program. That’s one of the big misconceptions, because the same bank that couldn’t provide you with ' traditional' financing because you were a start up, didn’t have enough collateral, etc is the entity that both provides and administers the loan. Talk about irony.

Restrictions on the use of loan proceeds is actually one of the continually misunderstood aspects of the government small business loan. You cannot use the loan for working capital or things such as inventory ; it must be used for our three aforementioned categories - real estate, assets, including software, and leaseholds.

The general terms of the program are as follows, a very limited personal guarantee, 5-7 year term amortizations, and rates at approximately 3% over the Canadian prime rate of interest. By the way that’s a fabulous rate for a start up, wouldn’t you agree, if in fact you are utilizing the program for a new business? It’s also important that the owners of the business have a decent personal credit history, as validated by their personal credit score at the credit bureau.


How can you quickly determine your eligibility without wasting time, monies and resources? Its simple, speak to a trusted, credible and experienced Canadian business financing advisor who can quickly steer you through eligibility and yes, approval!


Stan Prokop - founder of 7 Park Avenue Financial -


http://www.7parkavenuefinancial.com



Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :



http://www.7parkavenuefinancial.com/government_small_business_loan_financing_funding.html

Save Thousands With This Info On Capital Equipment Leasing Companies In Canada . Lease Financing Tips!

Canadian Equipment Financing



Information on equipment leasing companies in Canada. Financing Capital assets with the right information can save you money .





The lay of the land. Kind of important in any aspect of business, wouldn't you say? There a tremendous amount going on in Canadian capital equipment leasing today, so let’s examine who these companies are, where they are, and most importantly, what you need to know about them!

Surely we all agree there isn’t a more viable method of financing capital needs then equipment leasing in Canada. Stat's show that over 80% of all companies at one time or another lease assets. So, no surprise that the industry today provides a huge amount of the capital in the financial industry when it comes to asset acquisition... your asset acquisition!

So whats all the fuss and excitement about ?We guess its the simple fact that almost any asset can be leased, and that includes software and cloud computing , right up to our traditional favorites : plant equpment, rolling stock, office equipment, medical equipment, and heavy construction equipment, affectionately known in the industry as ' yellow iron;.

So with all that goodness is there anything to be worried about when it comes to lease financing strategies and transactions for your firm? When we talk to clients it's often simply that they can sometimes view the transaction as complicated, and find it tough slogging when it comes to credit approval, other financial considerations, and the time spent sometimes to complete a successful transaction.

And when that transaction is completed are you 100% sure it’s a good one, maximizing ALL of the benefits that equipment leasing companies offer?!

The reality we have always found is that you can save thousands of dollars, or lose thousands of dollars when entering into the best or worst, respectively, transaction.

So what are clients interested in when it comes to acquiring assets via equipment financing? We can generally lump those issues into areas such as tax and accounting implications, the choice of the best structure of the lease from lease type (there are 2 types) as well as proper terms, rates, amortizations, etc.

Many clients we've spoken also often fail to perform some very basic ' lease vs. buy' analysis that points them in the direction of knowing that they made the right decision when it comes to buying or leasing .

And finally, what are the serious pitfalls when it comes to making the wrong decision?

You're in good company when it comes to being a lessee of equipment in Canada .Canada's largest corporations, right down to start ups and sole proprietorships lease assets. They lease these assets from companies that fall into three general categories - small, medium and large ticket assets. Things are somewhat further complicated because the companies that are in these three broad groups are independent commercial finance firms, foreign owned firms, Canadian firms, captive finance firms associated with manufactures, and bank owned in some case , And that’s Canadian bank owned and U.S. bank owned .

Help! We can almost hear clients as we walk them through the basics of some of the key points we've shared above. Is there a quicker way to the goal line considering all the demands of your time as a business owner or financial manager? There is... consider using an expert. What a revelation, right?! Speak to a trusted, credible and experienced Canadian business financing advisor who can meet all your lease financing needs and put you in a transaction that save money, accrues benefits ; now that’s a win/win!




Stan Prokop - founder of 7 Park Avenue Financial -


http://www.7parkavenuefinancial.com



Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :



http://www.7parkavenuefinancial.com/capital_equipment_leasing_companies_financing.html

Canadian ABL Loans Are Solutions To A Cash Crisis and Business Growth Financing ! Look Into Business Lending via a Revolver Loan Facility.

http://www.7parkavenuefinancial.com/abl_loans_lending_financing_loan_revolver.html




Asset Based Line of Credit Facilities In Canada


Information on ABL loans in Canada and why this type of business lending and financing revolver is the ultimate working capital loan facility.




Talk about two different problems... a cash crisis (or ongoing cash crisis!) and badly needed growth financing. Let's take a look at how abl loans via asset based lending and financing can be the perfect solution for your revolver facility loan needs.

In business there’s nothing more urgent than a ' call to action ' around a working capital or cash flow crisis. At this point it's all about ' righting the ship ' and allowing Canadian business owners and financial managers to get their business finances under control. It's more often than not a case of simple survival.

Naturally putting in a proper ongoing financial solution, such as an abl financing revolved allows you to get your eyes back on running the company normally on a daily basis - we meet with clients who regularly tell us that a huge amount of time is spent on managing cash crises and juggling things such as vendor payments . Bottom line, its time to stop putting out the fires and focus on a solution... that works.

A true asset based line of credit has the ability to allow you get back the confidence that your suppliers, lessors, and other lenders had in your business, and that’s important. It goes without saying that lenders, investors and suppliers truly have the ability to control the destiny of your company if the perception of a permanent cash flow shortage remains.

So, enough about the fear! Let's focus on a solution that works. Simply speaking, that’s asset based financing via a revolver facility that is generally non bank in nature. (Some Canadian banks now offer this facility but the credit requirements and deal size criteria are, in our opinion, exceptionally high).

The concept of asset based lending, aka ' ABL ' is simply securing your assets, leverage them to the maximum that is possible, with the result being greater liquidity for your company. And by the way, don’t think we have just leveraged up a ton of debt on your balance sheet - 100% wrong, we have simply monetized or ' cash flowed ' existing assets... allowing you to borrow against them .

Those assets are typically very clear categories of receivables, inventory, equipment, and occasionally real estate and tax credits due your firm. (Yes tax credits such as the SR&ED credit can be included in your financing package).

So the question then becomes, don’t banks do this already...? And you have tried that possible scenario. The quick take away here is two things. First of all abl loans and financing revolver facilities provide greater leverage on current assets. Receivables are typically margined at 90%, and inventory, often difficult to finance for cash flow, can be margined anywhere from 30-70% as an example. If you were getting 75% from your bank on A/R and nothing on inventory haven’t we just increased your working capital by anywhere from 50-100%?! Wow.

A very simple way to look at this, and we use this example with clients all the time is to simply think of the asset based lender solely looking at the collateral, while the banks will focus on collateral, but mainly historical cash flow, ratios and covenants, and outside collateral via personal guarantees, etc . (As a general rule very little emphasis is placed on personal guarantees when an ABL loan facility is put in place.

Oh and by the way, you absolutely don’t have to be profitable to qualify for asset based lending facilities, which in Canada start at a low of 250k and go to the tens of millions of dollars.

So, cash flow crisis. Growth challenges. Looking for a solution? Speak to a trusted, credible and experienced Canadian business financing advisor on ensuring an ABL working capital facility is right for your firm.






Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/abl_loans_lending_financing_loan_revolver.html