WELCOME !

Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.



Wednesday, March 18, 2015

Sale Leaseback Transactions : Journey To The Center Of Lease Back Financing





Going Where Some Have Gone Before : The Sale Leaseback


OVERVIEW – Information on lease back financing in Canada. Sale leaseback transactions, implemented properly , is a solid way to maximize assets and enhance cash flow




Sale leaseback transactions present a unique opportunity to monetize existing equipment and real estate assets while still enjoying the benefits to the business of those assets. Many owners/financial managers are either unfamiliar with the process, or simply don’t understand when this type of financing is most applicable to their business. Let us therefore journey to the center of lease back finance! Let's dig in.

What then is the key driver in this whole process? Simply speaking it allows your company to use assets that are existing in the business while utilizing those assets to hopefully generate profits.

What can these funds be used for when a leaseback is completed. Numerous scenarios include:

Repayment of any existing debt

Generation of cash flow and working capital for the business

Owner proceeds

Partnership payouts

Financing new assets required in the business


The documentation and legality surrounding this method of financing is very basic - Title transfers to your lender, typically a bank but most often a commercial financing company. Based on the agreed upon value of the transaction your company makes monthly payments for a pre-agreed term. It's important this term could be short , i.e. a year , wherein its called a ' bridge loan', or alternately the amortization might be 3, 5, 7, even 10 years depending on the asset financed.

When traditional financing via Canadian chartered banks is not available business owners/managers typically use this financing for some sort of turnaround/restructuring of their business. We note to clients that it's important they discuss with their accountants any positive (or negative) implications around tax and balance sheets.

The size of your financing will often dictate what lender is optimal for your transaction. Also factoring into that equation is the nature of the asset - which typically includes categories such as plant assets, real estate, office technology, construction equipment (very popular!) and other miscellaneous asset categories.

Many business owners/managers contemplating sale leaseback transaction financing don't fully comprehend either the requirement for an appraisal or valuation, the nature of that whole process, and how the outcome affects your financing.

Appraisals and valuations affect the value of the asset with respect to the financing request. Lenders will focus on market values and liquidation values
(lenders seem to focus on worst case scenarios surprisingly!).








It is very rare that you would be able to achieve 100% financing on any valuation during a lease back financing - it's often a healthy per cent age of the total value of the asset or assets in question.

If you're looking to venture where you haven’t been before when it comes to considering a leaseback of assets seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your needs.



Stan Prokop
- 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :



7 PARK AVENUE FINANCIAL = CANADIAN SALE LEASEBACK FINANCING EXPERTISE







Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '


























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