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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.
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.
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!
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 .
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.
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!
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.
Stripped down. An ABL facility asset credit line for your business financing needs just might be the most basic, yet perfect Canadian business financing vehicle your company needs. Oh, and by the way, that’s if you are a start up, in the SME sector, or one of Canada's largest corporations, because those three are already using this type of asset based business line of credit. The ongoing debate of whether business credit financing in Canada is still tight rages on. One could make the case that the patient, i.e. the economy and business credit is still sick. So is there a patient cure?
Can you spot (or have you spotted already) business cash flow problems inside your firm? A better question might be - have you got some solutions to those problems! We've got some insights into both today. Business failure, temporarily, (or otherwise!) often comes back to cash flow and working capital. In some cases it's an ongoing situation that saps management strength - at other times it's a time bomb inside your firm, seeming ready to explode at any time as you hit the proverbial cash flow shortage wall! Your ability to perceive this challenge and correct it is of course critical.r
An Asset Finance Leasing and Loan Strategy ? Most Canadian business owners and financial managers realize they can either purchase fixed assets out of equity, or finance those same assets on a long term lease. Business owners need to focus heavily on the use of the asset. Any company that acquires assets has either a long term view of the asset or a short term view. Lease financing is an excellent method of financing long term assets.r
Is financing cash flow and working capital really the ' black hole ' of corporate finance and business financing in Canada? It sure seems that way. That ' black hole ‘... it’s a term used to denote a place of ' confinement ‘from which ' nothing can escape '. That clearly seems to be the feeling many clients we talk to have when they are faced with the challenges of business financing.
Would a Customer Financing Program for your clients increase your sales at virtually no cost to your own firm? You might me surprised that many of your competitors are beating you at the sales game only because they have mastered utilizing the tool of vendor finance via leasing programs. Let's examine how your firm can generate additional sales, and accelerate cash flow by using a time worn tool used by thousands of Canadian firms already.
Buying a new or resale franchise in Canada? Let's try and show you how you can in effect ' pull the trigger ' successfully on franchise financing those costs. We read recently that a franchisee/ franchisor relationship is not unlike a marriage between you and the franchise firm that you have selected as your future partner for hopefully... a long time!
The ABL Revolver facility. Is it the business financing mechanism that can fill the gap your firm is experiencing in a business line of credit? Asset backed lending is working for thousands of firms who probably just several years ago had never heard of it! Here's why.
Canada government small business loans - can they give you a sense that you have just achieved an ' A ' grade in Canadian business financing? We think so, and here is why the SBL loan makes solid sense for your firm, whether you are a start up, or if you fall under the 5 Million dollar sales level criteria which are one of the parameters of the program. Whether you're the ' start up ' or simply looking for capital to expand your business the SBL loan probably makes sense, at least from a viewpoint of checking it out .
Canadian franchising loans. Buying a franchise is one half the battle when it comes to selection, location and price and return on investment - the other half of that equation is of course getting the financing you need to complete a purchase successfully. We get a lot of questions around the issues involved in franchising finance in Canada - they all can be boiled down often into three key issues of conce s of the franchisee. Let's address those.
Buying and financing a business acquisition is one of the major challenges of firms in the SME (Small and medium enterprise) sector in Canada. Unlike the big boys who have access and funds available to hire expensive talent to complete the transaction the Canadian SME business owner and financial manager has the desire to complete a transaction , but needs help and information they traditionally don't have immediate access to .
AR Finance, i.e. cash flow financing has the ability to save your company when it fact your firm is faced with survival challenges. Let's examine when a receivables strategy works, and what you need to do to facilitate a financing that makes sense. In essence, ' how it works' and ' why '.
Equipment financing in Canada. Let's discuss when... and why you should utilize business leasing companies for Canadian asset finance.
We previously wrote on some of the challenges that Canadian business owners and financial managers face in getting successful lease equipment financing in place for their assets and capital expenditures. The current difficult economic environment makes it more challenging than every for Canadian business owners to get the proper rate, terms, and structure that they deserve. Success lease equipment financing requires a working knowledge of what the lessor is looking for in a transaction.r
There's nothing like a ' Danger Ahead' sign up the road to catch a Canadian business owners attention. That's why we're pointing out a number of things today with respect to factoring companies in Canada, how they work, and why ar (accounts receivable) finance may be the best thing that ever happened to you... or the worst. Talk about a balanced perspective.
A blunder. We're told it's about ' acting blindly ‘... ‘without guidance'. Can you actually afford to make a blunder when it comes to financing a Canadian Franchise? Talk about a costly mistake. Let’s examine some ways in which you can avoid making those serious mistakes when looking at franchising in Canada and the financing needed to complete that purchase. And by the way that includes buying a resale franchise, or of course a new ' turnkey ' operation.
Carry on? Without business cash flow? That's not an option for Canadian business owners and financial managers. That's why the analysis of their cash and working capital needs, in the context of solutions available is so critical in today’s business environment. So are we all in agreement? We mean of course that no company has the ability to on a long term basis operate successfully without cash. That shortage is often the reasons why many companies fail.
Receivable finance in Canada. It's also known as the business invoice to cash strategy. Who wouldn’t want the real deal on what’s happening in A/R financing in Canada... how it works, who to deal with, what to watch out for, etc..
The FMV fair market value operating lease. It's not a bad example of, in our case, the 3 commandments of what this type of leasing finance affords Canadian business owners and finance managers. More about those 3 three later. Leasing is hardly the ' cutting edge ' in Canadian business financing. It's been around almost... well... since the Dead Sea was sick! Business has always benefitted from this type of finance; pretty well every industry in Canada utilizes it.
Canada government loans for small business. Are there some ' best practices ' to follow to ensure they work for you, and that of course you get approved? We think there are. If you have worked in a larger corporation at any time (trust us ... we have) they always talk about ' best practices. They are defined as practices or methods that will ‘consistently show results superior to those by other means’. We’re not the biggest fans of buzzwords and ' corporate speak ' but we will say that it does seem quite applicable to our subject, the SBL loan in Canada.
Not fully up to speed on how, when and why to deal with an equipment lease company in Canada. Financial leasing doesnt for capital assets your business needs doesn't have to seem like the occult to your company. Let’s establish some common sense ground rules on equipment leasing in Canada. Enter clarity! It tends to start at the ‘leasing versus buying ' decision. Whether you are a start up, in the SME sector, or a major corporation financial leasing of an asset will often work far better than an outlay of your firm’s cash in the form of a purchase.
Purchasing and financing a franchise in Canada. Of course you do in fact need a franchisee business plan to support that transaction, but it's safe to say you need to cover off a lot of the other basics also. Let's examine how your business plan works within your overall finance strategy to successfully complete a franchise purchase in Canada. Oh, and by the way, that covers both a new purchase as well as buying an existing franchise from a current owner, in effect a ' resale '.
Franchise funding in Canada. At times does it seem like you have to take a real gamble on the franchising opportunity just to complete a transaction properly? And then finance it? Is there a better way? We think there is, and here's why, and how!
Can an ABL asset based finance company, via a new business line of credit make your transition from financing pain to financing power? We think there is a strong case for that, and here's why. Thousands of companies in Canada find themselves constantly challenge when it comes to ensuring their company has the right financing in place to both survive and grow .
Receivables Finance! said the client. ‘Give me one good reason why .... ' We hear that one a lot , so we'll do one better and provide him, or her with 8 solid business reasons to consider an account receivable service for your cash flow financing needs . Reason # 1 is simply growth... one of the ultimate ironies we have found in business financing is that many clients are punished for growing. Generally of course that's growing too fast and traditional banking in Canada somewhat dislikes high growth.
A franchise financing loan. It’s one of two things you need to successfully gain your entry intro entrepreneurship - the other is of course selecting the right franchise and being approved for it! Franchising finance in Canada requires a focused commitment by yourself as a franchisee. It is a combination of positioning yourself as ' finance worthy ' and at the same time ensuring you create the perception that you can successfully run and grow a business in the Canadian franchising environment.
Business turnaround financing for Canadian firms is clearly one of the most challenging forms of corporate finance for those firms experiencing distress from either internal or exte al factors, more often than not a combination of both . You can call it crisis management, turnaround management... whatever, bottom line, your company might need it. How then does a firm recognize that need, and what tools and financial solutions are available in Canada to implement a financial reorganization that makes sense.
AR (A/R) Finance is one method that Canadian business owners use to ensure they have the optimum level of accounts receivable and cash flow. It doesn't take long for Canadian business to realize that their receivables are in effect their funds that are sitting in someone else’s bank. And trust us that the large corporations figured that out a long time ago - they invest thousands and millions of dollars in credit and collection departments. We know, we've sat there!
An accounts receivable financing loan? We think we have just answered our own question on the strategy known as invoice discounting or invoice finance... namely, the part about ' misunderstanding'. Why is that? Simply because technically it's not even a loan... so no debt, no interest paid, etc. Let's explain.
Clients who listen to us tout the positive aspects of business revolving credit via abl asset based lending and financing sometimes have a great question for us ; namely ' How can we compare this type of Canadian business financing to other forms of lending, i.e. the traditional chartered bank line of credit ?' Good question! Right? So a good way to do that is to set up 6 common benchmarks that allow you as a Canadian business owner or financial manager to do a proper analysis or comparison. Let's cover off the basics of those 6 comparison points.
Could an ABL asset based line of credit in fact be all the business financing your Canadian company needs? It's rare that one form of business finance in Canada meets everything you are looking for in a finance solution - quite often there needs to be a combination of solutions that make the final package work for yourself. We can make the case the ABL facility in fact just might be the perfect solution for you - everything you are looking for in a revolving credit facility.
It's actually not that complicated. The Government Small business loan financing program makes funding for your new or established Canadian company accessible and on terms that even larger more established firms simply can’t often achieve. Funding under the SBL program obviously has a long term gain for Canada as the 7000+ firms that use the program every year create jobs, pay taxes, etc. Clients sitting down with us only want to know one thing. Are they eligible?! Eligibility for small business loan financing therefore allows them to reap the financial benefits of the program.
How can we get the most out of lease pricing, including by the way getting best lease rates in Canada what we access capital equipment finance via an equipment finance strategy? That’s a typical client question and we'll explore some answers, tips, and strategies in that area. If there is a threat or disadvantage to equipment financing in Canada it’s a pretty simply one - being unaware of what areas can impact the advantages of a lease, for example a simple ' end of term ' option.
Financing franchise opportunities in Canada. That brings to mind one of our favorite old expressions - ' tuition is very high in the school of experience'! That's why when we talk to clients about franchisee loan financing in Canada we're often cautioning against what can go wrong as much as what can go right . Makes good business sense, right?
' Misunderstanding all you see ' ; those are lyrics from the Beatles ' Strawberry Fields ' , and talk about being a bit appropriate for the confusion around receivable financing and invoice discounting rates in Canada . So, talk about confusing... lets try and clear up some real basics around receivable finance in Canada -mostly along the lines of how it works and how it is priced. Clients are always providing their version of what they think they are getting but the reality is often far from that.