Browse published articles attributed to Stan Prokop, with full-archive search.
Financing a business in Canada. A challenge? Let's just say that's an understatement when it comes to working capital, debt, and ongoing management and recognition of finance problems and opportunities. Are there some ' Golden Rules' we could follow. We think so.
Secured business credit via an ABL asset financing or a bank line of credit. It's absolutely a tale of two. We guess the book might be called ' A TALE OF TWO FACILITIES’! Let's examine some of the key differences and benefits and disadvantages of both an ABL asset line of credit and the better recognized bank secured business credit facility.
Film and Animation finance in Canada. What producer/project owner wouldn’t agree that it's a ' mad world ' when it comes to financing a project. That's exact where Canadian film tax credits enter from stage left - they play a key component in our overall financing strategy. Let's examine that a bit. It's rarely a perfect world, but when on exists in film financing it’s a case of equity investors making a reasonable (or great?!) return on their original investment, and those mezzanine and gap type folks also achieving a solid return on principal and interest.
Leasing rates for equipment lease pricing and finance in Canada. Abracadabra! We wish it were as easy as that one word magic phrase to get the best rate for your equipment finance transaction! But in reality its not that hard to ensure you have the best financing rates if you understand the basic underpinnings of a lease price and how certain obvious ( and not so obvious ) lessor strategies work for your favor , and what factors you can affect directly.
ABL asset based finance can be the solution for business revolving lines of credit when your current finance strategy isn't working. And what are those early warning signs? They include situations where your financing currently just isn’t working due to financial challenges you have experienced in the past. They also include acquisition scenarios, turnarounds, and the proverbial double edged sword, high growth.
SBL Loans in Canada. How can the Canadian business owner or financial manager ' crack the code ' when it comes to the Canada small business loan. It’s of course a government program that helps businesses get the financing they might otherwise not be able to achieve. Let's examine some crucial tips, dare we say ' secrets ' around cracking the secret code known as ' approval' on a program which has helped almost 8000 different businesses annually to either launch or grow their business.
Business Cash Flow Problems? Maybe some working capital therapy in order. Therapy - it's what they call a ' curative power ' , so let's examine some curative powers around one of the biggest challenges Canadian business financing, working capital and cash flow needs. We're all familiar with the old phrase ' you need money to make money ‘; well scratch that, we have re-written that one for today and we'll offer up ' you need working capital to make more money '!
The SR&ED bridge loan in Canada. Did it almost become a hushed secret at a timer when the very existence of the SRED tax credit seemed in doubt? The real secret of SRED loans in Canada is that they were available for your tax credit prior to the current budget, and, guess what. ? .... They remain in place today for your tax credit financing strategy! Most Canadian business owners who utilize the SR&ED program in Canada were keenly aware that the very existence of the tax credit seemed in doubt in 2012.
Thousands of Canadian business owners and financial managers perceive AR Accounts Receivable Finance as a solid strategy for financing their firms. Let's examine 5 key advantages of this method of working capital finance. But first let’s take a quick step back and ensure we understand the product and the mechanics of this type of finance service.
Cash flow financing in Canada. Is there in fact a ' happiness formula' for solving and managing through cash flow problems? In our opinion it's really a combination of management as well as sourcing the proper solution based on your firm’s particular situation. Let's examine some tools, tips and strategies around what we might consider a ' Happiness Formula '! in Canadian business financing.
Liquidity problems and cash flow challenges plague thousands of Canadian business owners and financial managers. A lot of this challenge revolves around a company's inability to properly access bank financing in Canada. If that's the case what is the next step then? We think that next step understands your alte atives, ensuring you understand why you are in a liquidity crisis, i.e. that cash strapped feeling, and finally understanding what might get you back on the right course at the bank.
Cash flow problems and working capital solutions to those challenges that are faced by Canadian business. Are we really saying there are 2,450 ways to pinpoint the problem? In a way yes. Let's explain. Although cash flow challenges are more than ' intuitive ' in the real world (that’s where we ourselves work) Canadian business owners and financial managers often fear or just simply don't understand how to quantify those problems. The reality is that the actual problem can be quite clear if you go to your financial statements, preferably on an ongoing basis.
You're looking for sources of capital and financing for you Canadian business. A Loan? An equity arrangement? A monetization of assets ? What works best is of course the nagging question that continuously faces Canadian business owners and financial managers. Many Canadian businesses who contemplate equity type arrangements simply aren’t ready, and it’s also the most expensive form of financing when you consider the ownership dilution that comes with that strategy.
Franchisee financing in Canada. It goes nicely hand in hand with our contention; we're often told that it’s now what you know, it’s who you know. However, in the case of a franchise loan we think that both of those count. It is very easy to see the appeal of franchising in Canada. In many ways it’s one aspect of the entrepreneurial dream, in effect ' no boss'. But the amount of time, effort and knowledge in being successful is of course critical.
When it comes to a lease vs. buy decision is the Canadian business owner or financial manager considering the right issues when it comes to equipment leasing financing for his or her asset needs? There's a general sense that equipment financing is in fact the best option when it comes to acquiring assets of all types in Canada. That fact becomes even more pronounced when you business is in a constant upgrading requirement based on either useful life or perhaps technology needs. Computer and telecom assets are a great example of that.
SR & ED Tax credits. Did you or your firm have any doubt about the SRED program in Canada? I think we can safely say thousands did, and the good news is that the SRED Program is still intact... yes some changes, but still alive and well . And even better news? Your SR ED claim is still 100% financeable with the same criteria that have always been in place.
As a business owner or financial manager you want to be able to ensure that a business line of credit has the ability to assist your firm before, during and after serious financial challenges occur. That's where the ABL asset based finance facility comes in. In a perfect world (we know it's not) you want to be able to detect financial challenges, understand why they happen, and then implement a solution to avoid them. Understanding the problem (or problems) allows you to make the difficult decisions to continue your business successfully.
Receivables purchasing financing in Canada. Thousands of businesses in Canada utilize AR financing when the economic climate and their particular situation does not allow them to ' extract ' the type of financing they need for their working capital and cash flow. Is it really positive to stay ahead of the proverbial ' cash flow shortage ' 8 ball? We think there is and at the same time your firm may now be in a position to take advantage of growth opportunities it could barely even consider, let alone realize on previously.
IT cloud financing services and the leasing of such services for hardware and software needs presents new challenges for the Canadian business and financial managers looking to leverage technology via lease financing. Oh, and by the way, financing ' the cloud ' presents probably just as many challenges for lessors and finance institutions also! Cloud technology is of course the newest kid on the block. It’s another new concept to comprehend, essentially the use of computing as resources, both hardware, and software, over a network. That network typically is of course the internet.
Overlooked? You tell us, but we're never more amazed at why leasing equipment is such an often overlooked source of business financing in Canada. Here's why we think the ' unconverted' need to reassess this popular method of financing their businesses when it comes to asset acquisition. Hopefully you've got your short term working capital and cash flow needs sorted out. They might include bank lines, receivable finance, working capital facilities, asset based lines of credit, etc.
Waiting for anything good to happen is business isn't really our favorite thing to do. That's why cash flow finance via a purchase receivables strategy to finance your business eliminates waiting. Waiting for what? Well the question simply becomes: ' Would you rather have cash in the bank now for your sales, or would you prefer to wait 30, 60, and oh wow... 90 days for the funds do your firm from your clients?”
Here's to not losing your keys. We're talking about the keys to unlocking business operating cash flow and the solutions that come with that Canadian business financing challenge. We're big fans of confusion, because hopefully it enhances our reputation of providing clarity around issues such as business cash flow! That term is often confusing to many business owners, and financial managers. The reality is that you will ultimately be judged by others, i.e. suppliers, bankers, lenders, lawyers, and other professionals as to how well you manage and understand that business concept.
We meet a lot of business owners that say they don't necessarily feel ' in charge ' when it comes to business asset finance and their ability to secure a proper revolving line of credit. ABL credit, i.e. the asset based line of credit via a non bank facility is one way the Canadian business owner can take charge and regain control o their business financing needs . Asset based lenders exist in a wide variety of forms in Canada... today we're focusing on the true asset based lender that provides, outside the bank environment, business lines of credit .
SBL government loans. I guess you could call us a fan, even a super fan. The word fan comes from the root word ' fanatic ‘, denoting an ' enthusiastic devotee. So why is the Canada small business loan the recipient of our full support. Let's try and preach to some of the potential unconverted.
Cash flow financing challenges and working capital solutions for Canadian business. Keeping your firm solvent / liquid can almost seem like a crisis sometime. We were talking to two of our favorite business marketing guru's the other day and one of them made the comment ' it's like a knife fight in a phone booth ..!’. Wow, we thought, could there be any more a propos comment than that when it comes to business competition and business survival
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.
Accounts receivable services in Canada. We thought it was appropriate perhaps to use the term ' conspiracy theory ' around the subject, because misinformation abounds and buying into some of that misinformation can in effect be a costly experience. Let's examine some of the key issues around that misinformation - in essence ' what is factoring' or A/R discounting and how does it work. That misinformation we talked about always seems to revolve around several key issues. What are those issues? They're as follows: Is A/R financing only available for certain businesses?
Business leasing and equipment finance in Canada. Does your firm take advantage of these 4 secrets of lease financing in Canada, thereby maximizing the benefits of an already proven business finance tool used by 80% of North American ( that’s Canada too by the way !) business.
Financing a business in Canada. One of our favorite writers recently reviewed a U.S. report focusing on the ability of a company to finance its business in the U.S. . . . The report was portrayed as a current ' pulse ' of the market, including input from business owners and entrepreneurs. That got us to thinking ... hey... this is Canada. Would that current ' pulse ' of the market be similar? Let's take a look and hopefully provide some insights into Canadian business financing.
Are some types of accounts receivable funding and factoring financing better than others? We're often accused of ' pumping’, aka ' promoting' this type of Canadian business financing for firms of all types in Canada. Why is that? Is receivable financing, on its own or blended in with another financing a ' holy grail ' of business finance? Not really, of course, but it’s an effective solution that's often very misunderstood when it comes to the mechanics of it and the cost. Let's explain.
Your business cash flow problem. A lot of times it can be avoided and or fixed by examining your balance sheet and implementing solutions either traditional or alte ative that address that problem and challenge.
When looking for a loan for a franchise is it important to match the right financing to your purchase? You bet it is! That's why some solid knowledge and tips in business loans for franchisees is definitely in order!.. Where exactly then does financing come in when it relates to the purchase of a franchise .It's critical. Because even though franchising provides you with an already proven business model its safe to say there is no real guarantee on cash flows and revenues.
Guilty as charged? You should be. We’re recommending it! We're talking about exploiting commercial equipment lease companies in Canada for your financing needs. We're told that exploitation is ' utilization, especially for profit'. That’s what we think you should be doing when it comes to considering lease financing in the Canadian marketplace. Let's explain why and how. Naturally when we talk about ' exploiting ' we think it’s fair to say it has to be to a mutual advantage, i.e. the lessor and you the lessee should be in a win win scenario. It’s all about maximizing the benefits.
Cash flow solutions and working capital management in Canada. It's nice to know that you do in fact have solutions, help and assistance in Canada... in effect ' someones got your back ' .. helping you out. A lot is written about why business fail, or stop growing ; we often hear that ' lack of good or experienced management' is the major cause, but trust us poor , or poorly timed working capital management and financial solutions are a true close second!
A hole in your leasing finance sidewalk? It's an interesting play on words around a current popular book making the rounds. We thought it was a neat analogy for Canadian business owners who want to make the most out of a lease finance company strategy... but instead keep making the same mistakes when it comes to being successful in equipment financing. In essence their equipment lease strategy becomes a hole in their business, and managing what might seem like a complex process leads to that ' hole in the sidewalk '.
Canadian franchising. Got your act together? The act we're referring to of course is your ability to successfully secure a franchise loan for a new or existing franchise in Canada. Let's focus in on some critical components of what to do and with whom!
Franchising Canada. Whether it’s an ' IT ' franchise in the world of technology, or a restaurant in the quick service / full service/ casual service industry everyone it seems wants to get on board. If they know they have the ability to finance the business...so let’s examine some creative ways in which to complete the financing of the entrepreneurial dream. It's no secret to the potential franchisee that it's all about cash - a combination of your own and borrowed funds. What are some of the methods that clients use to creatively, yet sensibly finance the franchise dream in Canada.
Is your company getting the most from an asset and capital leasing company in Canada? Let's examine how your firm can maximize some really creative benefits from lease finance companies in the Canadian marketplace. Equipment finance doesn't have to be a ' complex ' form of business financing if you’re aware of the some key concepts, some of which are perhaps a bit more sophisticated than others... but bottom line you should never lose out on the advantages simply because you weren't aware.
Government SBL Business Loans in Canada. You can... No you Can’t. What we mean of course is that the program is limited in some respects so lets clarify for Canadian borrowers what they can and in fact can't do with the BIL program - its the acronym for the federal Business Improvement Loan' program .
Scientifically proven? It's defined as a ' body of techniques’ for acquiring new knowledge. Unless we're missing something an asset lease is a trusted financial solution, bridging your operating capital needs to your long term financing solutions. Whether it’s an operating lease versus a capital lease your company still benefits from the appropriate combination of use and to a certain degree, ownership.
Leasing versus buying. It's one of the classic questions faced by business owners and financial managers when they are looking for asset financing strategies that make sense in capital acquisition of business assets. Let's examine how you as a business owner or finance manager can make the right decisions when you are at the proverbial fork in the road, the classic ‘ lease vs. buy ' scenario. Part of the reason we're intrigued by this subject is simply the fact that there is so much misinformation around there, in some cases it's just an issue of not knowing what questions to ask.
Valid question, right? When it comes to your business working capital and cash flow financing who's running the show, you, or are those two culprits seemingly running your company? We're remind of one of Yogi Berra's (many) great lines - ' when you come to a fork in the road, take it ‘! That's probably where you are now in many cases. Determining who will win the ongoing cash flow battle for supremacy.
The sale leaseback transaction in Canada. It's back. Let's examine the resurgence of this unique financing transaction via a lease finance company or other financial firm. Canadian business owners and financial managers, as owners of certain asset classes, have the ability to enter into a sale lease back scenario. It couldn't be more basic - you sell the asset to a buyer, typical a finance firm and that firm immediately becomes the lender or lessor of your transaction. And that asset is of course still there!
Ouch! Make that a double ouch! Tax pigs? That was the assessment of one of Canada's leading economics and business professors when it came to Canadian firms who line up (we assume he meant at the trough?!?!) to get their fare share of what he called ' tax preferences' in Canada. The thrust of the article, which appeared in one of the two leading business newspapers in Canada, was that Canada is losing billions, yes that’s billions with a capital B... to a long list of tax programs from which it derives little benefit.
When it comes to Canadian business credit and banking in Canada (loans, credit lines, etc) it's more than a bit unfortunate that many business owners and financial managers view the process and the challenge as somewhat of a nightmare or at the very least a negative process. Let's examine how you can turnaround that process with a viewpoint towards success. And let's hope we can get rid of some of that negativity also.
Thinking about a customer finance vendor program? We know for sure that many Canadian business owners and financial managers recognize that their competition sometimes wins the sales battle, without even beating you at actual pricing / cost. How do they do that? If you had the ability to get to the bottom of the matter you just might find that your lost client was offered a financing solution by your competitor for a sale you should have made!
Business finance problems. Got the ability to spot financing challenges when it comes to the immediate and longer term issues that face your firm in the Canadian business environment? We have always felt that some positive proactive techniques and information can go a long way to your health... and that’s better business health we're talking about by the way!
We meet a lot of business owners that say they don't necessarily feel ' in charge ' when it comes to business asset finance and their ability to secure a proper revolving line of credit. ABL credit, i.e. the asset based line of credit via a non bank facility is one way the Canadian business owner can take charge and regain control o their business financing needs . Asset based lenders exist in a wide variety of forms in Canada... today we're focusing on the true asset based lender that provides, outside the bank environment, business lines of credit .
How To Finance A Company...that's the challenge for owners of new and existing businesses in Canada when it comes to equity, debt, and cash flow financing. Let's examine some basic aspects surrounding that issue with a focus on how Canadian business owners and financial managers can both identify and then source capital. Our focus will be primarily outside of the equity arena as private and public entity is... well... a whole different kettle of fish.
Business liquidity. We were watching a U.S. bank TV commercial the other day and they were talking about ' accelerating cash flow '. Many but not all Canadian business owners and managers are aware that the Canadian banking system is dramatically different from the U.S. one. Hundreds of U.S. banks focus very directly on commercial lending to the point that it's actually the largest part of their portfolios - that’s hardly the case in Canada of course where there is a major focus by banks on savings, mortgages, investments, securities work, etc.