Franchise Financing Canada . Four Things To Consider For Your Finance Loans

Are You Financially Savvy When It Comes To Financing Your Franchise ? Need Some Help?


Information on franchise financing in Canada . What are key considerations for franchising loans when entrepreneurs finance their business


Canadian would be entrepreneurs are very clearly jumping on the franchise 'bandwagon'. Whether they are current entrepreneurs looking to expand their investments and success, or downsized executives clearly there needs not be a lot of discussion on franchising popularity everywhere, and that includes our focus, Canada.

Could any business person, male or female not use some solid advice and mentorship on any one of the many aspects of this industry? We don’t think so, and our focus is on franchise financing in Canada. Simply speaking, achieving the finance and loans you require completing a transaction successfully.

As we said, optimism in franchising in Canada is everywhere, including positive stats on growth and the industry's participation in the economy as a whole.

Does that optimism translate into the availability of capital for financing the business? Let's cover off some key issues around that.

It's important to have a game plan when you enter into a franchise entrepreneurship. Focusing on those objectives in a precision like manner is key.
Is it possible to be familiar with every aspect of franchising that you need to know - we would submit that unless you are in the industry already that is not the case .

A good start might be two fold, first of all talking to a franchise broker or consultant who participates in the industry, and their services by the way are typically no cost to you. They are compensated by the franchisor. Naturally a word of caution is in order because many of these firms align themselves with only certain franchisors, and might not be in a position to expose you to all the opportunities and information you need.

Step two in your initial game plan might well be to talk to those people in our favorite profession, lawyers...! But seriously .. A well versed franchise lawyer will guide you through the pitfalls and legalities of owning your own franchise. The good news here is that the industry is very transparent and a lot of the rules and regulations are heavily focused on protecting you, the franchisee, when it comes to disclosure from your perspective franchisor, etc.

So let’s cover off our promised 4 key information points. Number one is simply that you need to assess the overall risk and return in your investment. While 95% of franchisees success according to many stats, you want to ensure you are not in the other 5%. Here is where you need to spend a decent amount of time on financial prospects, cash flow analysis, and measuring overall chance of success relative to the financial investment you are prepared to make as your equity contribution in the business. Suffice to say that aligning yourself with a successful and well run franchisor sure helps.

That brings us to point # 2 today, the size of your investment .Franchise purchase prices come in all size, from small non asset service based franchises to large ' bricks and mortar ' opportunities such as full service restaurants . Spend a significant amount of time on your equity contribution, where that capital comes from, and the methods under which franchise financing in Canada occurs. They exist, but they are limited.

For instance in the U.S. a large amount of financing in the industry is done under whets known as a 401k rollover, essentially collapsing what we know as our RRSP's in Canada. That doesnt work in Canada, unless you want to be penalized by the tax bit on that one! We don't recommend that to clients as you can imagine.

Point # 3 - Finance options. In Canada there are limited options to finance your purchase, of either an existing resale or a new unit are limited. The good news is that those that exist work. You can work with a specialized franchise finance firm, take advantage of the government BIL program (which finances thousands of franchises) and compliment both of these with additional leasing and working capital scenarios.

Finally, point # 4... and it's a bit of a tricky one. Do you as a franchisee require experience within the industry that you are buying into? To be honest we are not 100% sure on that one ourselves. We all agree it would be helpful to have some background in the industry you are proposing to invest into, however, we have observed over time that solid management and marketing skills go a long way in any business. Even large corporations bring in people from outside their industry, sometimes....!

Don't underestimate the advice and info you can get from a number of sources when considering purchase and finance loans alternatives. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in this regard. 4 Points ....hopefully well taken!




Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.

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.

Making Sense Of Franchise Loan Financing In Canada . Business Loans That Work. Business Loans For Franchising

Pitfalls and Tips on Franchise Financing In The Canadian Franchise Industry

Information on franchise financing in Canada . What issues to address for your business loan. Franchising Loans In The Canadian Marketplace.



A lot. That’s our description these days about what's happening in franchise financing. Canada has hundreds of franchising opportunities that abound; it’s just sorting through the right opportunity and matching business loan / loans to fulfill that entrepreneurial dream.

Let's sift through some of those challenges, allowing the franchisee to realize on the business ownership dream.

Many clients we talk to seem to think that a tougher economy makes it tougher to get a business loans for franchise financing in Canada. We don't necessarily feel that’s the case, if, and it’s a big if, you have done your homework and have a game plan.

That game plan includes planning, ensuring you have the expertise and sources to get your transaction completed. And all of those financial needs in many cases need to be financed differently. Those needs might include the actual franchise fee itself, financial planning that covers off your royalty fee, as well as inventory, working capital, and leaseholds and equipment.

Franchise sizes vary significantly in Canada. Many are Canadian organization, while others are units out of a U.S. parent who has a direct organization in Canada or in other cases works through a Master franchisor who has purchased a territory - Canada! (Talk about a big territory!)

Your personal resources play a significant part in your overall franchise business loan financing plan. It's important to create a personal balance sheet that allows you get a sense of your overall liquidity. Simply speaking, what you have, and what you owe.

The importance of that document can be over stated. Both franchisor and your franchising lender want to get a sense of who they are dealing with, both from a financial and business experience point of view. And by the way, your personal credit history has a huge impact on your ability to both acquire the franchise, but moreso, get it financed!

There are some interesting trends happening in the franchise industry in Canada. Many entrepreneurs are actually increasing their chances of success, (or failure) by trying to acquire multi units at the same time. We generally caution clients who are looking at multi unit deals to ensure they have the financial bench strength to go the whole process. It's absolutely critical to also ensure they have legally structured their total opportunity to ensure the failure of one unit doesn't take down their entire empire!

The other key trend we see a lot of today is that multiconcepts seem to be popular. This has the owner juggling multiple brands, typically in the QSR (quick service restaurant) industry. So if they didn't think one restaurant was enough of a challenge, how about two!

One big, now scratch that, huge mistake that franchisees make, and we see it often, is the financing of a new store out of the working capital proceeds of their other store. Inevitably Murphy's Law sets in and the resources and financial reputation of both entities are strained to the point of collapse. Our advice, consider financing each unit separately on its own merits with some additional new equity.

We can’t begin to list all the risks and rewards of a franchise opportunity in Canada. But we can ensure franchisees that careful financial planning, with expertise, is critical .Speak to a trusted credible and experienced Canadian business financing advisor on making sense of franchising opportunities in Canada. Minimize the risk, maximize the reward.





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/franchise_financing_canada_business_loan_loans.html

Understanding ( And Getting ) A Canada Government Small Business Loan – SBL Loans 101!

How To Smooth Out the SBL Loan Process For Business Financing Success

Information on the Canada government small business loan . Understanding the process of Canadian ‘ SBL Loans ‘ and qualifying for approval .



Understanding. Getting. They might seem a bit unrelated, but in the context of a Canada government small business loan boy do they make sense. Let's examine how SBL (small business loan) loans work in Canada. And won't it make sense that understanding the process around this program will allow you to get approved and funded! We certainly think so.

We'll examine how the SBL loan is evaluated in Canada, what your expectations should be, and provide you with a clear road map of business financing success with SBL loans.

Clients often come to us with experiences of frustration around the program. A common complaint is that whoever they have spoken to about getting approved for the loan seems disinterested at best. And don't even start to talk to us about timeline, that’s the other frustration around the program. So is it the banks fault, or yours. Let’s examine who's to blame.

First of all, some key basics on the program - since if you don’t know what it is you can’t deal with it, right? The Canada government small business SBL loan is the Canadian version of the U.S. ‘SBA’ program. In Canada it’s sponsored and regulated by INDUSTRY CANADA in Ottawa, but it’s actually the Canadian chartered banks that provide the financing for the program. Thousands (in 2010 over 7000) Canadian businesses are funded every year under this great program. The maximum loan amount is $ 350,000 and we can assure clients that rates, terms, structures, as well as the limited guarantee component is very appealing.

So back to the question ' who’s to blame’ when the program doesn’t work for you. It is only common sense that the banks want to ensure that they adhere to the program guidelines. And it sure helps if you don’t have a bank that is unfamiliar with SBL loans. And if you run into a banker that is somewhat daunted by the paperwork details of the program that only complicates the situation.

So what is the take away then on this key point? It’s simply to find and work with a banker who is very familiar with the program. All you need to do is ask, and there’s even an easier way than that, which will comment on later.

Naturally we commiserate with the bank on applicants who aren’t prepared. We are guessing the Canadian chartered banks don’t make a ton of money on these loans, at the same time they require a fair bit of operating costs and reporting under the program.

Is there a way we can clearly summarize the road map for success under the small business loan SBL program? When credit trainees in any aspect of lending start their careers they are told to focus on the 3 C's of credit extension – character , capacity and capital.

It occurs to us that that are a great way to create your own mini road map on SBL approval. Demonstrate to the bank your business experience and personal credit rating, demonstrate in your business plan how your business will have the capacity to repay , and , with respect to capital, make sure you have the required 10% permanent equity down payment under your loan request.

Want a fast track to both understanding the Canada government small business loan program? Easy to do. Speak to a trusted, credible and experienced Canadian business financing advisor who can work with you and a top notch SBL banker to get you the business financing you need - quickly!



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/canada_government_small_business_loan_sbl_loans.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

Understanding The Canadian Government Business Loan - Federal SBL Loans Work For New & Existing Businesses

The Canada Small Business Loan Program – Yours To Discover!

Information on the government business loan program in Canada. How the federal SBL financing program loans for your new and existing business makes you eligible for $ 350,000.00 in financing for your new or existing business.





As some , certainly not all ( that’s why we're here) Canadian business owners know the federal government has a long standing and very successful business financing program , aka the ' government business loan '. It’s a federal program in Canada, sponsored by INDUSTRY CANADA, and it is probably suited for your new or existing small (New or under 5,000,000.00$ in revenue) business capital needs.

There's just one problem we’ve perceived over the years. Simply that understanding how the program works, and how you get approved seems to be a mystery to a lot of the clients we meet looking for this type of financing.

Let’s examine some of the key underpinnings of the program, focusing on what this great financing program does, and, more importantly, how you get approved.

First of all, talk about a great partner for your loan. Have you ever needed a co signer? Here's one for you, the government of Canada! We heard their credit is excellent! What we mean of course, when we speak to clients about the program is that the government guarantees the majority of your loan to the bank that underwrites and administers your financing. Talk about a good deal. And you thought you might have to ask your brother in law!

Naturally it goes without saying that this incents the banks and some other institutions that offer the loan to provide your firm with financing that you might not otherwise be able to achieve in a normal traditional financing request.

So we all agree it’s a challenging business financing environment out there. So how can government business loans help your firm?

First of all they finance only 3 things, and that always seems to be a mystery to clients who think the program is a cash or working capital loan. It is not! The three items that the program finances are equipment, leasehold improvements, and real estate. Under the equipment category many of our clients choose to also finance software, which is allowed under the program. And by the way, that’s application software, not software you are going to develop yourself.


So how does a business owner navigate, successfully, the program? We assure clients that you can almost assuredly guarantee yourself approval by following a very specific course of action. There are numerous conditions that can negatively affect your chances of approval, and if you know them you can avoid them.

It’s quite frankly all about your proposal, how it’s presented, to whom its presented, and ensuring you have the basics covered. Those basics are as follows - a minimum 10% equity investment in the financing, reasonable personal credit, a business finance plan that clearly identifies you, your business, and some financial projections that make sense relative to the loan amount you are requesting.

So, the bottom line, you can make understanding the Canadian government small business loan complicated, or easy. We're for easy, so if you want some practical direction in getting a small business loan up to 350,000.00 in place speak to a trusted, credible and experienced Canadian business financing advisor on the positive expectation of an SBL loan approval.



ABOUT THE AUTHOR : STAN PROKOP

7 PARK AVENUE FINANCIAL

Canadian Business Financing !

We finance the little guy ! P.S. We finance the big guys too!


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

Financing A Franchise Business Purchase Loan In An Economic Downturn ? Canadian Franchising Loans Explained !

Don’t Let Economic Bad Times Deter Your Franchise Purchase

Information on financing a franchise business purchase in Canada . What type of loan / loans and finance facilities make your franchise work!



The right approach. That's definitely what it takes to finance a franchise business purchase in somewhat challenging economic times.

The majority of aspiring franchisees in Canada look to banks and specialized finance firms when investigating the purchase of a new or existing franchise business. Let's investigate successful criteria and methods for completing the purchase of such a business.

Do Canadian banks finance a franchise? That naturally is the instinctive first ' go to ' when it comes to the entrepreneur’s choice of completing a business purchase in the franchise industry. Broadly speaking they don’t specifically finance franchises outside of specialize government or franchisor programs.

If you have a stellar personal net worth and credit rating we suppose that many banks would consider some sort of term loan based on collateralizing your personal assets... that naturally is not our recommendd strategy, as we hav always felt its important to separate your business and persoanl life when it comes to finances.

Jut how important is your personal credit history as well as your overall financial profile... what the finance folks call you personal net worth - simply speaking ' what you have ' and ' what you owe'! We assure clients that a strong emphasis is placed on your personal credit and business background - typically you would want a ' beacon score ' at the credit bureau to be in excess of 650.

If you do choose to secure a franchise with personal assets you'll be asked to provide collateral such as a home mortgage, etc. Again, as we said that’s not our recommended strategy.

So if the banks don’t finance franchises in Canada who does. Are you ready? Banks! What do we mean by that seeming contradiction? Simply that the majority of franchises in Canada are financed by the banks, but via vehicle known as the BIL/CSBF loan. It’s a program run by the federal government which many banks have adopted as a solid vehicle to finance franchises in Canada.

The basics of the program lend themselves pretty perfectly to financing a franchise business purchase, and the structure of these loans fits what you are trying to achieve. Why? Simply because terms of the loan are from 5-7 years, rates are commensurate with many other types of business financing, with the ' kicker' being that you only are required to guarantee 25% of the loan.

Will a franchisor step in to help you finance your business? That’s a question we get a lot, and the answer generally is ' NO ‘. In a number of cases though franchisors have worked out packages that can more easily facilitate the bank completing a financing. This tends to work with larger brands and larger business acquisitions in franchising. The bottom lone, don’t expect internal financing from your franchisor.

Other key aspects of successfully finance a franchise in a downturn are common sense business elements - a solid business plan, locating a banker of financial advisor that is experienced in franchise loans, and aligning yourself with a successful franchisor based on your own personal and business background .

Speak to a trusted credible and experienced Canadian business financing advisor on how you to can finance a business purchase in challenging times.



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/financing_a_franchise_business_purchase_loan_loans.html

All You Need To Know About Canadian Government Small Business Loans – BIL Business Improvement Financing

The Small Business Loan Program is Your SME tool for Business financing success


Information on the SBL government small business loan – Why the BIL Improvement loans are some of the best financing for the SME sector in Canada .




Many Canadian business owners are often guided to the Government Small Business Loan program in Canada by people such as their friends, advisors, bankers, etc. But boy, have we got stories for you about some of the mis information and frustration many clients have on what is fundamentally a great business financing program in Canada.

Our mission and goal? Clarify some of the mis information and help you understand what you need to know to take advantage of this great Canadian business financing advantage.

Part of the success of the government small business improvement loan surely is who the program is aimed at. In Canada the program focuses on everyone from a start up to companies under the five million dollar mark in sales revenue. Naturally if you are a start up , for either your own business or a franchise it makes sense that you might not be able to qualify for what the finance folks call ' traditional ' financing, in other words ' the bank'!

It has always seemed to us a bit ironic that it’s actually the banks that provide the SBL loans in Canada - however they do that because they have a guarantee from Industry Canada and the federal government with respect to any financial losses they might incur on the loan. While that guarantee doesn’t cover 100% of the loan let us assure you it’s a very significant amount!

So, as we said the banks in Canada (as well as some other miscellaneous institutions (some credit unions, etc) are what some folk’s term as the ' preferred lenders ' of the program.

Limits. Let’s talk about those loan limits. Canadian SBL loans are capped at $ 500,000 for real estate and $ 350,000 for equipment and leaseholds - which includes computer software by the way.

Rates under the program are 3% over the current prime rate, and the bank collect a one time 2% admin fee also. So contrary to what many business owners think, rates are not negotiable on a business improvement loan (B I L) - they are fixed under the program.

Where things often fall part on a SBL / BIL loan is due to the fact, we think, that the government allows each bank to interpret their own credit criteria on a Government small business loan. This causes no end of frustration for our clients who are often unprepared for this individual interpretation of SBL Loans... after all; it’s a ' program' is it not?

Most Canadian business owners and financial managers are keenly aware that ' pre paying ' a business loan without penalty is virtually impossible in Canadian business financing. However, the good news is that SBL government small business improvement financing is totally repayable, at any time, without penalty!

In sports in all about knowing how to play the game... that inside edge all players are looking for. Here's a tip - you should be looking at Canadian business financing process in the same manner... winging it should not be part of your strategy. In future writings we will cover off more info on how to win at the government business loan game. And by the way, it’s not a game!

Speak to a trusted, credible and experienced Canadian business financing advisor on how to successfully apply for and obtain one of the best financing resources in Canadian business - the SBL / BIL loan.




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_improvement_loan_loans.html

How Asset Based Lending Loans Competes With A Bank Business Line Of Credit Loan – Do You Understand ABL Finance?

Don’t accidentally discover asset based lines of credit!


Information on Canadian asset based lending Finance . Why ABL Loans are a direct competitor to a bank business line of credit . A finance alternative for business owners in Canada .


We're the first to endorse healthy competition in Canadian business finance (although it’s not as fun when we're doing the competing) so it seems a good time to profile ABL asset based lending and business line of credit loans which compete directly with Canadian chartered bank facilities.

To say that Canadian business finance has changed over the last ten years or so would be a dramatic understatement. The reality is that a whole new wave of offerings to commercial business borrowers are available, and they come, you guessed it, not always from the Canadian chartered banking system.

Independent finance companies, some from the U.S. and even overseas have a multitude of new products for the Canadian business borrower. Even the internet empowers the Canadian business owner and financial manager as it often reveals a multitude of varied choices to those willing to search. Entering a keyword such as ' abl asset based line of credit ' will get you tons of info on alternative business credit facilities.

While banks often command the first train of thought when it comes to business finance for a revolving line of credit asset based lending finance is gaining more traction everyday.

So let’s provide some clarity around ABL finance in Canada. If there is one differentiator of the product it’s simply that the total focus of the facility revolves around one word, ' assets '. Non bank asset based loans are more flexible than a traditional bank offering, and at a time when more is better they leverage your assets significantly greater than a bank facility. Remember that an ABL loan is typically from an unregulated lender; they have different sources of capital and don’t require key elements that are necessary in the Canadian chartered bank system.

Clients, and we can forgive ourselves also, often make the mistake of viewing the asset based business line of credit a as a term loan... in fact its not. It’s simply a monetization of assets with the intent to liquidate the assets or collateral in the event of a default. A good way to look at it is to view it as thinking of your assets having to perform, not our ratios which tend to become the prime fixation in a commercial business line of credit.

So why the sudden and growing popularity in asset based lending in Canada. We think the answer to that is the fact that it covers every type of industry, retail, manufacturing, service, etc. But more importantly it also addresses your company life cycle.

An asset based ABL finance facility can be achieved for a start up, an established growing firm, and yes, those firms that have suffered severe financial challenges. In the ' old days' (yes we remember them) it was not uncommon for forms of asst based lending to be viewed as a ' last resort' type of financing. Fast forward to today and some of the largest corporations in the world, in Canada included; utilize this financing as opposed to a traditional bank facility. So something must be working!

So what would you need to start discussion around this type of facility? Typically it’s just the basics: your financial statements, aged receivables and payables, and detailed asset listings of any fixed assets. And by the way those fixed assets can easily become part of your revolving day to day facility - that’s clearly a major advantage when it’s required.

Speak to a trusted, credible and experienced Canadian business financing advisor to better understand how asst based loans can monetize your firm’s assets into an ABL facility that provides you with maximum working capital and asset leverage.



ABOUT THE AUTHOR :
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_lending_loan_loans_abl_finance.html

Does Canadian Franchise Financing Success Mean Everything To You ? Tips/Info Franchising Company Lenders / Loans

We can pretty safely bet that after you have made a decision to purchase a franchise in Canada that franchise financing becomes, at least temporarily, one of the most important priorities in your life. Let’s examine some tips, info, and strategies allowing you to work through, successfully, the finance company and the various lenders and loans available to yourself.

In speaking to many clients it’s quite clear that the type and style of franchise they wish to purchase is often tied to their perception of their ability to close financing on that purchase. And when we look through the business news these days it seems that all types of businesses, from start up to large corporations have formidable financing challenges.

The reality is though, that if you have priced your franchise purchase properly relative to your own personal situation, which includes your credit history... that you should be in a position to acquire the financing you need.

So what are the ingredients to that success? Some of the key basics are a ' proper' proposal and your ability to commit some capital to the business. Clients are always concerned about how much owner equity they will have to put into the business - In Canada our experience is that typically is in the 10 - 40% range, with 10%being the absolute minimum.

Franchise financing is sold on the basis of your business plan. That document does not have to be as formal as you think, but it should include the essence of what you are trying to achieve. Those basics include info about yourself, your work and career history, your personal financial situation. The document should then cover off details on your franchisor, the business model they operate under, and finally, and perhaps most importantly a credible financial projection.

We're often asked how much detail goes into the financial projection for the franchise financing company or bank. The simple answer to that is that you should be demonstrating in a clear fashion how the loan or loans will be repaid.

We encourage all clients, via vigorous discussion to ensure they are in a position to defend their sales and cash flow projections - and, as importantly, are prepared to answer any questions the lender might have. A clear presenation,backed up by your confidence and experience are key to franchise financing loans that are successful.

Contrary to the beliefs of many franchisees in Canada your franchisor typically doesn’t play a large part in the actual financing of your franchise. In certain cases they possibly might have some sort of program in place with a finance partner, but that somewhat rare in the mainstream of franchises that sell in the 100-350k range.

So how are these financed then? Good question! One or two specialty franchise finance firms provide acquisition loans in the industry. These typically are for the largest brand names and when ticket size of the purchase is quite significant.

The reality is that the government, via the Canadian BIL / CSBF program has evolved into one of the largest financier of this business segment in Canada. The program has been adopted by hundreds, probably thousands of business owners to facilitate franchise financing loans. And for good reason, low financing rates, great terms, structures, and maximum flexibility on repayment.

In many cases financing of your franchise is complemented by specialty equipment financing for certain assets, as well as working capital loans when that is prudent and feasible. We always remind clients think in terms of acquiring the franchise, and then focusing on ensuring it will be financed properly on an ongoing basis. Running out of money right out of the gate is not recommended! That’s where your business plan and financial projections must be realistic.

Don't let the financing of your franchise overwhelm you - speak to a trusted, credible and experienced Canadian business financing advisor on a finance strategy that makes sense for your particular situation.



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/franchise_financing_company_lenders_loans.html

5 Things You Need To Know About Equipment Financing In Canada – Why The Old Rules Don’t Apply Anymore In Heavy Machinery Loans

Forget What You Thought You Knew About Lease Financing After Reading This Information on equipment financing in Canada .

Focus on these 5 issues for lease finance success in heavy machinery loans and leases.



Are the ' old ways' in business always the best ways? We're not always sure about that - let’s examine 5 key areas you need to focus on when arranging equipment financing for heavy machinery loans and leases in Canada in our current economic environment.

When we speak to clients whats the one thing they are always looking for in lease finance for the financing of heavy machinery and other types of assets from business equipment, computers, and plant assets. You guessed it. Approval! Let's drill down on 5 needs to know areas of lease financing in Canada.

In equpment financing its all about approval, our # 1 topic today. Although lease financing is on a tremendous roll in the 2011 Canadian economic environment its safe to say getting approved for the asset financing you need, within rates and terms and structures you feel you deserve is .. Well... let’s say, still a challenge! If you have solid financials and a strong history of cash flow and repayment to a lessor you naturally will have not a large problem.

But what if all of the ' credit boxes ' the lessor puts you in don’t quite match up. The good news is that lease and equpment financing in Canada for heavy machinery loans is often a ' story credit' situation. That might mean you can expect a higher rate inherent in the lease, and the good news is that heavy machinery type assets have significant asset and residual value which will help with a structured approval. That approval might include outside collateral, a shorter term, etc. Bottom line, there is a ' credit box ' for every type of asset and business credit quality in Canada.

Point # 2 today - you've go choices. It's not always about price. Focus instead on the many other parts of the equipment financing decision such as where you will get the fastest approval. The hundreds of lessors in Canada that will provide you with financing are most focused on firms with whom they can build a longer term relationship.

Point # 3 today - Do you consider yourself the best lease equipment financing specialist in Canada. Someone who knows all the players understands current rates and structures, and who knows the in’s and outs of lease finance lingo? It's rare that any Canadian business owner or financial manager can feel 100% comfortable in knowing he or she has made the best financing decision for the asset they are acquiring.

The solution - Consider help and assistance from an experienced Canadian business leasing and financing advisor. That help should be free and the cost of your financing might go down significantly when you have expert assistance in negotiating terms, rates, and types of equipment financing leases and loans that make sense for your firm.

Point # 4 today - Simply put - the devils in the details! In small and medium sized transactions in Canada there isn’t a lot you need to know about standard documentation. However in larger ticket heavy machinery loans pay particular attention to types of leases you enter into, final pricing, and documents that make sense around your obligations, and rights in your transaction.

Item # 5 - In Canada your primary two choices for lease equpment financing are full payout lease to own transactions, known as capital leases, and the more complex operating lease transaction. Operating leases can have a significantly lower cost, but you need to understand end of term issues around extending, buying, upgrading, or returning the asset you have financed. Again, here is where some expert assistance comes in very, very handily.

In Canada there is solid competition for your lease finance business when you're acquiring heavy machinery loans and leases. Take time to understand the players, maximize the benefits, and above all seek the help of an Canadian business financing advisor who is expert in Canadian lease finance to assist you to arrange the best leases 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_financing_heavy_machinery_loans.html

What Type Of Start Up Business Financing Loans Are Available For A Canadian Company ? Startup Loan Info

Solving the startup financing challenge in Canada





Information on start up business financing in Canada . Starting a company? What type of loan/loans are available , and what do you need to do to successfully complete a startup finance strategy that makes sense.









We're all for hard work and facing challenges, but boy do we respect anyone setting up a business today and looking for start up business financing . What type of company loan/ loans and finance facilities are available for the Canadian entrepreneur?



We can pretty safely say it’s always been tough to finance a start up but in more challenging economic times you can easily assume a hard job just got harder. So what types of financings are available to Canadian entrepreneurs, and as importantly, what do you need to do to get properly prepared to complete loan/loans?



Many of our clients cringe when we ask them for their business plan - its seems a daunting task for many, and certainly doesn’t have to be. Even a very strong executive summary will often do the trick - information about yourself, your background, your new business, and, most importantly, what we call the financial potential. That potential of course relates to being able to pay back your borrowings!



Want to overcome obstacle #1 then, that business plan. Simply speaking, get someone else to do it, an experienced, credible and trusted Canadian business financing advisor. That recommendation can come from a business peer or friend, a banker, or your lawyer and accountant. These people are on the front lines of start up business financing for your company and others.



So what are some of actual borrowings available for start up Canadian companies? They include the Government small business loan - commonly called the SBL. Another government crown bank provides working capital loans that are true cash loans that are in effect unsecured - they require only your promise to pay, and of course that of your new business .



Other methods of financing your start up include receivable financing, aka ' factoring ', which provides instant cash on every sale you make, albeit at a cost. But ask yourself this, whats more important to you at this time, ' the rate ‘or access to capital? In the majority of cases we think its access to capital. Many firms that are retail or consumer oriented have gravitated to merchant cash advance financing, in effect loans made against your future sales. (A little bit of every future sale is used to repay you loan).



Having realistic sales and cash flow projections often makes or breaks the new start up in Canada. The reality is that many clients we meet with bring us unrealistic sales projections, and, on top of that those projections don’t have realistic cash flow attached to them.



Case in point, the business entrepreneur shows revenue of 100k cash coming in of 100k in that same month. Guess what though, it’s not a perfect world, and the reality is that cash, if you are selling to a business, will come in stages in 30, 60, and we shudder! even 90 days. So get realistic on cash flow, and have your plan B ready!



Many physical assets you need can be financed via Canadian lease financing. But be careful to ensure you have the right type of lease in place, and that the rates are commensurate with your overall credit quality, and that the terms and structure of the lease... you guessed it... make sense! (Don’t lease computers for 7 years!)





Many clients we speak to don’t realize the 100% OPM doesn’t work .OPM is of course ' other peoples money ', and Canadian business owners need to address the fact that they require a reasonable personal investment into the business. Whats reasonable? That question comes up pretty quickly !There is no one single answer ; as an example the government SBL small business loan requires a 10% equity injection by the owner . In the cases of lease financing 10-20% down typically are reasonable requests from the lessor.







So whats our bottom line if start up financing in Canada. First, its boy do we respect your entrepreneurial spirit! But pay attention to those details we have discussed, and seek the services of a trusted Canadian business financing advisor who can make that road you have not traveled before a much more pleasant journey, and distance!







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/start_up_business_financing_company_loans_loan.html

5 Things You Didn’t Know About The Government Small Business Loan In Canada - SBL Federal Loans Info

Use This Info For The Payoff in Canadian Small Business Financing



Information on common questions surround the government small business loan in Canada . How do these federal loans work and what must business owners need to know to maximize the program .







Can we ask you a simple question? Actually, if it’s ok with you, we'll ask 5 questions, and we trust and hope you will gain some valuable knowledge about the Canada government small business loan. Federal loans under the CSBF / BIL program could be your secret weapon in Canadian business financing.



Ok, so let’s get the questions out of the way first and onward to those answers! Here are our 5 key shares around the program based on questions we continually get from clients.



Why should we finance equipment with federal SBL loans? What are the basic requirements of the program? Can the government small business loan be used to refinance business debt? Can we use the federal loans program for cash flow and working capital? And finally can we purchase a business via the SBL loan?



Great questions, and now hopefully some surprising answers! Here we go.



Equipment and lease financing in Canada are solid alternatives for the financing of your asset acquisitions. Numerous lease finance options are available, so why does it make sense to use the SBL program for equipment financing. For a start the small business loan program in Canada finances 90% of your equipment financing needs, the other 10% comes in the form of your down payment, which the program refers to as your equity in the transaction. Numerous lease scenarios may require either larger down payments, first and last monthly payments in advance, and in some cases might have a higher level of credit due diligence requirements .Equipment can be financing on terms up to 7 years, and typically that type of term may not be available through lease financing scenarios.



So what about those basic requirements of the program? The government small business loan requires the aforementioned 10% owner equity in your financing. Business owners and your business should have a reasonable credit history; you also should be ready to prepare a simple cash flow forecast that allows you to demonstrate repayment of the loan. Typically no other collateral is required for federal small business loans in Canada. We determined over time that it makes great sense to be able to properly demonstrate that you have sufficient management experience in your business and industry, whether you are a start up or an established firm.



On to our third question - can you utilize the loan to refinance existing debt .The short and simple answer is that any debt you wish to refinance in terms of equipment, leaseholds, software, real estate, etc can be financing within a 6 month window. Example - if you bought a major piece of equipment 5 months ago it can be refinanced under the program, bringing additional cash flow and capital into your business.



Can the program be used for cash flow and working capital? Simple answer = No! Unlike the U.S. equivalent of the program the government small business loan is massively understood by many, thinking it’s a cash flow loan. The program only funds equipment, leaseholds, and real estate.



And on to our final question. Can you purchase a whole business via SBL federal loans in Canada .Categorically yes if the business purchase is within the government loan cap you absolutely can purchase a company, competitor, franchise, etc using this program? Some very basic steps apply, including an appraisal of the business you are buying for example.



Well there you have it, 5 answers to common questions we get from clients everyday on Canadian government small business loan. Want more info, or wish to explore other issues pertaining to your financing needs around this great program? Seek and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing benefits of the program.





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_canada_loans.html

A Common Sense Way To Choose Canadian Business Leasing Companies For Equipment Loans – A Lease & Loan Alternative

Make the Right Choice for Lease Finance in Canada



Information for Canadian business on choosing the best method to select leasing companies for equipment loans – A lease and loan alternative selection process .




Rest assured you're in the same boat as thousands of your competitors - and whats that boat about? Simply not knowing who or what to turn to when selecting business leasing companies for an equipment loan for your business. More importantly, leases and loans that makes sense, not the kind where you wonder if your firm got a transaction at market rates, terms, and structures.

So is there a fast track to selecting the right lease finance company for asset financing that works, and makes sense? There are a couple of challenges we try and help clients overcome, not the least of which is the fact that there are tens and literally hundreds of firms all across Canada that ' seemingly ' fit your needs. And, and it’s a big and... if you have all the time in the world to develop relationships with these hundreds of firms, well then... let’s just say we're jealous!

But not knowing who to turn to can in fact, as many clients have experienced, cost you tens and thousands of dollars, depending on your past experience with leasing companies in Canada. One alternative is of course to send a lease bid document out to a large number or select number of parties. That makes sense for government agencies and large corporations probably, but not for small and medium sized businesses in Canada.

The reality is that all those lessors out there have their own unique business models, and are you ready... because this could be painful... they are going to try and fit your firm in a box . In a box? We're talking about the ' credit box ‘... that elusive credit policy that seems to be understood, by the lessor, but not perhaps yourself. You see each firm (who by that way had to go out and borrow money to lend it to you) has a credit box. In that box is a set of criteria around asset types, deal sizes, ratios, covenants, personal guarantees, outside collateral, years in business... well we think you get the drill

And oh yes, if there were one type of business equipment leasing company in Canada the search for asset financing might not be so daunting. In reality those hundreds of different firms are actually in 4 sub categories.

Those sub categories are bank lessors, independent leasing companies, captives (ouch! that even sounds painful - do they have a box also?) , and insurance companies.

So do we have a favorite and a recommended solution for each and every business owner and financial manager in Canada? Actually we do its number 5 in our list of 4! We're talking about an independent, experienced, trusted, and credible Canadian business financing advisor... one who should be an expert in lease financing. Utilize their experience for market knowledge, eliminating financing sourcing time, and ensuring you are getting market rates in the current low interest rate environment of 2011 where in fact lease financing is very competitive and wants your business. Adding value and saving your firm money is a powerful double punch in Canadian asset 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/leasing_companies_equipment_loan_loans_business.html

Is There A Small Business Loan From Government ? Yes, Here’s Why Canadian SBL Loans Work !

Canada’s Small Business SBL Loans Solve Your Finance Challenges

Information on why the small business loan from government is one of the most sought after loans from small and medium sized businesses in Canada . Let SBL financing help your start up or established business.


If we had to separate some of the major confusion surround two to three key areas of the small business loan from government in Canada , aka ' SBL loans ' it would be quite easy, as clients seem continually mis informed about some of the key attributes and benefits of this program .

Let’s get ' small ' out of the way first. The Canadian SBL loan underwritten by the government (more about that later!) actually goes to $ 500,000.00 dollars from a lending limit. That’s one of the initial sources of confusion for our clients... because the 500k amount refers solely to your utilization of the facility for a real estate deal. All other transaction under the program is capped at 350,000.00$.

In many cases it actually might make sense to do a real estate deal under SBL loans. For example your 10% required equity under the program is significantly less than the 25- 30% or more that is required by other lending institutions under a conventional mortgage scenario.

We've done a calc and a 500k mortgage utilizing the SBL would run you around 5500 a month for a commercial transaction. That is a higher payment than a longer amortized commercial mortgage but consider the fact also that your required permanent own equity into the deal is only 10%, and you personal guarantee under the program is actually only 25%. Try getting that lower personal guarantee from another commercial lender... we dont think you'll be able to.

Let's circle back again to what the word small means in a small business loan from government sources. The program, which actually is officially called the BIL /CSBF program actually stipulates that your current or projected revenues cannot exceed 5 Million dollars per annum.

As you can imagine, and as we experience, that covers thousands of business in Canada that should be accessing the program, but either aren’t aware of it or don't fully understand some of the rules and guidelines of the program .Oh, and by the way, almost 7500 Canadian firms used the program in 2010... so somebody out there, including your competitors perhaps?.. accessed over 957,000,000.00$ in capital in 2010. So we think it’s about time you got on board.

We think the program works for a couple of great reasons... it usually can finance companies who would not otherwise be able to receive traditional financing - aka your ' friendly chartered bank ' , and , secondly, it covers the financing of assets that you need to grow ( or start ) your business .

The two main asset categories that the program finances are equipment and leasehold improvements. That covers a lot of what you need to be successful. And by the way things such as computer software are covered under the program also. as that generally falls under the equipment category.

So as a Canadian small business owner do you feel challenged on whats available and how to proceed to successfully execute on SBL loans financing. Speak to a trusted, credible and experienced Canadian business financing advisor on why the small business loan from government, aka ' the SBL ' will help your firm go to the next stage of its growth or development.



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/small_business_loan_from_government_sbl_loans.html

Don’t Risk Losing Out On Franchise Financing Loans - Info For Canadian Franchisees Re: Franchising Loan Success

You’ve Got An Important Decision To Make - So Get Informed On franchise finance in Canada

Information on Canadian franchise financing . What types of loans are available , who is lending , and is there one franchising loan strategy that makes the most sense .




The reality of owning your own franchise business should not be over shadowed by the risk of not obtaining the right, and full amount, of franchise financing you need for a franchising loan. So let’s examine the right, and wrong way, of franchise loans and lending in the current environment.

The right amount of financing you need for your acquisition is often a somewhat stressful time in the total process of buying a business in this segment of Canadian business ownership.

Commercial lending financing does exist in the Canadian environment, it’s a situation of knowing what’s available, and then, of course, executing on completing the financing. Sounds simple, but many Canadian would be entrepreneurs often find themselves challenged by the whole franchise financing journey... and in reality it’s a process, not a journey.

In a perfect world you are looking for a franchise loan that has low or at least acceptable interest rates, nominal fees associated with the transaction, and has the right term or maturity that suits your payback plans and general cash flow situation.

But, does such a loan exist? It actually does, and you'd be surprised where you might find it. Many clients tell us they have spoken to the Canadian bank with whom they typically have had a long term relationship, only to find that little information has been forthcoming as to how they might be able to successfully finance their new business venture .

Naturally any bank that finds you willing to personally pledge and collateralize your home, savings, etc is very anxious to have your business and approve that loan, but it mixing your personal assets with your business venture the optimal solution. We find it rarely makes sense to follow that strategy, buy hey... that’s just us.

In Canada the financing options of franchise lending and loans is available, but somewhat less limited than in the U.S. . . . One or two large firms dominate the major franchise financing opportunities in Canada - these firms focus on the largest name brands and larger transactions that in many cases can range up to several million dollars in total financing required.

But what about the hundreds, even thousands of franchise loans that are required for purchases in the 100-500k range. Who finances those, and if they are financeable does the financing come with those low rates and great terms and structures we spoke of previously?

Actually the Canadian BIL/CSBF loan program addresses that question pretty perfectly. It finances your franchise on terms that compete with the big boys. And we're always rooting for the little guy!

The BIL program assists business purchasers such as yourself to effectively finance the franchise you wish to purchase. Rarely will your franchisor be able to assist you with financing so your ability to prepare a solid 'package' of info and position the package from a solid financial point of view is critical. Other financial solutions such as specialized equipment and asset financing can also round out your financial solution.

Bottom line, franchise financing should not be a risky or stressful time for the completion of your business acquisition. Speak to a trusted, credible and experienced Canadian business financing advisor who can help you complete franchise financing with lending that makes sense... today.

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

Understanding Canadian Working Capital Finance – Cash Flow and Institutional Loans & Private Lenders

Commercial Business Cash Flow Financing In Canada

Information on working capital finance options in Canada . What offerings are available from banks and private lenders when you need business loans or cash flow financing.



Having the right information simply becomes a small investment of your time and can turn into tremendous benefits... that are why your ability to understand working capital finance loans from both private lenders and other institutions is noteworthy.

When Canadian business owners and financial managers think in terms of capital typically Canadian chartered banks come to mind. That’s what business people tend to call traditional financing in Canada. But is it always readily available and possible to obtain? Many businesses find themselves in the position of needing to grow, or in some cases simply survive around the need for extra cash flow and liquidity.

The optimal solution is of course simple - have some sort of facility in place to access cash... when you need it! Two choices come to mind - a traditional working capital term loan from a bank - its essentially long term working capital with fixed monthly payments. Alternatively, and in many cases the better option, a non bank facility from private lenders is a better, if not more accessible solution.

And to be clear, let’s define ' private lenders' as that term is often mis understood in the context of a Canadian working capital loan. It may mean other things to you, but in our discussion today we are simply referring to a non bank entity, quite often a commercial finance firm that has a specialized niche in business lending and working capital.

What facilities are offered by these ' private lenders' if we can call them that? They include offerings such as receivables purchasing, working capital facilities that combine the borrowing ability of your inventory and receivables into one facility. Essentially a business line of credit from a non bank entity. Other offerings, somewhat more specialized include purchase order and contract financing, tax credit financing, and what we call the ' big kahuna ' of working capital cash flow financing in Canada - ABL (Asset based lending).

When we think of the facilities as describe above we're talking about the ' current assets ' part of your balance sheet - that’s where the liquidity lies.

Working capital outflows though can also be stemmed by utilizing lease financing or a sale leaseback strategy... that’s for your fixed assets of course.

Thousands of retail businesses in Canada often find themselves in the working capital finance conundrum. In recent years merchant cash advances, or loans against future sales have become a solution for the smaller retail business.

Advantages of a bank loan for working capital purposes are pretty clear - it enhances your commercial credit history, rates are the lowest and most desirable.

So the essence of your subject today is that you're in effect surrounded by working capital finance and loan options from both private lenders and Canadian chartered banks. It's a question of knowing what those sources are, and, most importantly... which one works best for your firm, whether you're a small retail business or a small to medium sized established corporations. (The big boys do quite well on their own, thank you).

Permanent or temporary solutions are available in many forms, as we have noted.Speak to an experienced, trusted, and credible Canadian business financing advisor who can ensure your working capital sources are just steps away.



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 .Info re: Canadian business financing & contact details :

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

Methods Of Financing Working Capital In Canada – Current Assets Leverage For Cash Flow Loans

Isn't it ironic that business can be actually quite good... or even great..? which then becomes a problem only because in business survival and growth it’s all about financing working capital... turning those current assets of your firm into loans or monetization facilities for cash flow.

In a perfect world Canadian business owners want to be able to meet their day to day operations, make any loan or lease payments and be able to plan for upcoming expenses or growth. How could one statement like that induce so much stress!

A lot of that planning comes from the ' current assets ' category of your financials, simply speaking your liquid assets such as cash on hand, receivables, and inventories if in fact your business has inventory. (Some services businesses just have A/R).

Small and medium sized businesses in Canada rely on either capital from their owners personal resources, or their decision to take on loans and debt of some sort.

But what type of loans makes sense when it comes to liquidity? Perhaps a better re phrasing of that question would be ' what is ' good' working capital debt? In our personal credit lives we think of good debt, i.e. a mortgage, and bad debt ' credit cards'!

Naturally considering new ownership or additional equity in your company or business (taking in a partner, etc) is simply a dilution in the long run and somewhat downsizes the overall incentive for all owners to grow the firm.

And when it comes to debt the amount of ' debt' or loans your firm can take on is certainly often limited relative to your own current financials and the state of borrowing in Canada , which vacillates from great to not great as you may have noticed!

So, whats the solution? Is financing working capital the way to go? (As opposed to term loans and more debt) It’s not as complicated as you think. And it all comes back to our friends, those two guys known as ' current assets '!

A large part of working capital financing in your business can come from yourself. Real basics such as ensuring you aren’t paying your payables before you're collecting your receivables... if you're doing that you're simply creating a working capital shortage that you have self imposed.

And let’s discuss your solutions for working capital constraints. We get a huge kick out of receiving newsletters from banks which focus on how to manage your cash surpluses when they are writing about working capital and cash flow. We haven’t had one client come in today with a cash surplus problem, but it's only noon....

Canadian business owners and financial managers challenged with financing working capital have a solid handful of solutions. Naturally in a perfect world (you mean it's not?) you would prefer to not take on a term loan for permanent working capital. But back to that perfect world... that might mean you have an overdraft or bank line of credit. For many small and medium sized businesses that simply is not attainable - or if it is it’s not quite enough.

Real world solutions for financing working capital and current assets, without loans involve what we call the monetization or cash flowing of those current assets, That typically is a working capital facility, non bank in nature (yes they are available and exist!) that allows you to draw daily, as needed on your a/r and inventory in the form of a business line of credit. Larger facilities of this nature are termed ' asset based lines of credit ' - we call them ‘ABL’s ... and them often are superior to bank facilities for a lot of different reasons.

More esoteric working capital solutions, but nonetheless real, are financing your tax credits, purchase order finance, or securitization of your contracts or receivables.

Speak to a trusted, credible and experienced Canadian business financing advisor on the right method of leveraging cash flow from your assets and business. Today would be a good timeframe!





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 .Info re: Canadian business financing & contact details :


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

12 Types of Business Financing in Canada - Which Do You Need? Commercial Loans & Cash Flow Finance

Are you serious? We can hear clients asking that already. Can there really be 12 different BUSINESS financing alternatives in Canada available to business owners and financial managers? And are they finance alternatives that make sense.

Actually we're not serious, there are actually more than 12 different alternatives, some are just a bit more rare or esoteric we could say, and not applicable on a daily basis to your company relative to its finance and growth needs.

For small and medium sized businesses in Canada the ability to develop an overall long term strategy and plan is key of course. At the end of the day you want to optimize business assets for borrowing and determine which type of financing works best for your firm .That type of financing is going to come from two areas , clients and suppliers, and of course external finance sources.

When addressing where your business financing is going to come from in Canada you need to determine your optimal level of debt - many business owners don't always realize that certain forms of financing actually don’t bring debt on to your balance sheet, they simply monetize assets.

So, on to what you have been waiting for! Let's do a short highlighting of commercial loans and cash flow facilities that make up our 12 sources of external business financing. (Your profits and suppliers and customers are your other source of cash flow by the way).

12 potential sources of financing in Canada are as follows - confidential invoice discounting , inventory financing, sale and leaseback strategies, equipment financing, purchase order financing, credit card receivable financing, micro loans, working capital lines of credit, bank operating lines, asset based lending, government small business loans, mezzanine and subordinated debt finance.

That's a handful for sure What it really comes down to is determine which type of financing is available to your firms overall credit quality . Often that is tied to what stage of life your company is in - we've referred to that in the past as which stage of life cycle your firm is in. That could be start up, high growth, maturity, and yes, ' distress'.

Unfortunately the larger your company is often plays into the fact that you might have more flexibility and ' wiggle room ' in Canadian business financing alternatives.

Is there a formula or roadmap for that is perfect for any one firm? Unfortunately not, each firm and industry is different. Seek a trusted, credible and experienced Canadian business financing advisor who can ensure you are aware of various solutions that are most applicable to your company... today!




7 PARK AVENUE FINANCIAL
Canadian Business Financing

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