SSSG Builders and Dealers

Article by Stan Prokop

Searchin’.. and Searchin.. for franchise finance in Canada ? The reality is that it’s available, and we will share some common sense approaches to successfully financing a franchise in Canada.Although you may have spent a significant amount of time in picking what you feel is the right franchise finance opportunity the reality is that we are hoping that you have spent, or will devote an equal amount of time to the financing of the purchase. Securing funding in any specialized field is clearly a challenge so working with an expert in the field is always advisable. This is no time to be a rookie when it comes to the successful financing of your business.Many franchisees without any type of finance background might assume that traditional finance is available through institutions such as banks and credit unions. The answer to this assumption is actually no… And yes. Let’s explain. We are not aware of any Canadian bank that will set up a specialized term loan for the full financing of your business. (This might happen if you have significant outside collateral, guarantors, pristine credit, etc – but generally no). But, the reality is that the banks in fact do indeed do most of the franchise finance in Canada – but it’s done under specialized program called the CSBF/BIL program. This should be your first point of call in financing your business. However, here’s where the ‘ expert’ advice is needed, as the program only covers the financing of certain aspects of the business, and you will need to cover off portions of your purchased that wont be financing through this program. This would be things such as ongoing working capital, the franchisee fee itself, etc.It’s probably commons sense but aligning yourself with a franchisor that has a good brand and reputation and a successful share of their industry’s marketplace is in fact going to make financing a franchise in your case probably easier. What category are you in? we ask clients. What we mean by that is that you might be opening a brand new franchise, or alternatively purchasing a business that is already a franchise and the existing owner wants to sell. There are advantages and disadvantages to both strategies, and there is certainly no cut and dry answer around what established or new business might be best for you. A quick example – it might be sometimes ‘ easier’ to finance an existing franchise that is being sold because the assets and cash flow and profits are more realistically able to be demonstrated. In certain cases some franchisees might want to expand their business via additional capital – that also requires a specialized focus. In summary the key elements of financing a franchise in Canada revolved around your ability to source and successfully complete financing that suits your purchase. This involves your own investment, known as the ‘ owner equity ‘ a well as the financing through programs such as the BIL program. Financing specific hard assets and complementing the overall finance package with a working capital term loan or operating facility will also get you tot he goal line. Pick your franchise carefully, and seek a trusted, credible and experienced Canadian business financing advisor who can help you structure the proper finance package that suites your overall acquisition and growth needs.

Article by Wayne Brown

Finance has become one of the stalwarts in the industrial level. Managing finance is a very mind storming work for a person, and when it comes to the accounting of huge sums of money it can be a great headache. Every business and marketing sector has to have a financial department to handle their profits and losses.

Evidently, the job of a financial manager or an assistant is to keep a detailed record of the purchase and sales of the company, have an in-depth knowledge about the transactions and deals of the company, and controlling the flow of money. A job like this demands a lot of time and attention. A financial officer has the responsibility to evaluate the accounts, the administration, prepare financial statements and payrolls, create a budget, analyze cash reserves, supervise investments, issue checks and perform other such plethora of tasks.

Just like any other field of job, the financial sector also provides us with a number of job opportunities.

There are openings for a financial manager or an officer, a cash manager, an insurance manager, an accountant or even an international banking manager. They all possess the task of coming up with successful financial strategies for the institution they work for. They are given deadlines to meet, charts to prepare, accounts to get verified, overall, they control the future of the company. A cash manager has duties like checking accounts and arranging funds for the company while a financial risk manager foresee risks and manage the funds accordingly. There are financial executives on the other hand who manage the entire financial department and allot tasks to every officer under him.  

One of the major tasks of a financial officer is to keep abreast its sales and for that they require immense interpersonal skills to get hold of their clients. Apart from this, you should also be proficient in handling computers because jobs like maintaining employee allowances, conserving funds, issuing receipts and placing orders demand skilled computer training. They should be very well aware of the market, its condition; they should also be quick in grasping things and managing calculations. So it would not be wrong to say that the financial department of a company is like the heart which keeps them alive. Prestigious institutions provide valuable management programs in this field today.  A financial career with all its incentives and whopping salaries is the perfect idea of a productive and excellent future.

Article by robert wilson

As the Canadian business financial system turns itself around going into 2011 most of are clients are finally centered on growth again.However how is that development to be financing, since lending standards and standards at institutions such because the banks don’t seem to have been liberalized at the same pace that your organization hopes to grow at!

That is where our pattern prediction comes in. Asset primarily based lending focuses in your assets and growth opportunities – it would not deal with rations, tangible equity in your company, rations, covenants, cash movement coverage, and so on, and many others, etc!

So you are selecting up on the chance, let’s have a look at how issues work. Asset based mostly lenders preserve it simple, they lend a very high value against your ongoing assets. What are the typical belongings lent in opposition to – you possibly can virtually guess what they are. They are receivables, inventory, unencumbered equipment and actual estate.

The large thriller round asset based mostly lending in Canada, based mostly on conversations with our purchasers, is that business house owners do not really know or understand who these corporations are. So we’ll tell you.

They are specialised companies, each Canadian and U.S. based mostly, that focus solely on providing credit score amenities and enterprise finance loans together with your property as security. They take the identical security as a Canadian chartered financial institution would, and you manage your facility on a day after day basis, drawing down money as you want it. Funds are wired into your account as you need them, based on… guess what… assets! That basically is the one key distinction that our clients pick up on, that the full focus of this kind of assets financing is the collateral itself.

We already know your next question… because we have heard it 100 times before. Its’ how a lot can we get ‘… followed by what does it cost.Talking typically phrases your receivables are financed at 90% of their worth, and due to the character and marketability of various kinds of inventory the sort of collateral is margined anyplace from 25-seventy five%. Recall we had famous that unencumbered equipment will be drawn in opposition to also. Typically an appraised present market or liquidation worth is agreed upon with you and the asset financing provider.

Costs vary round this type of financing. Every now and then it’s competitive with bank financing – and supplying you with twice the liquidity – but most of the time it is more expensive. You offset these costs by better access to credit score facilities that can grow your business and profits.

Speak to a trusted, credible and experienced Canadian business financing advisor who can stroll you thru the Canadian landscape of business finance loans in the asset based mostly lending area. You may rapidly find, we expect, that our prediction is becoming more true day by day, asset primarily based financing is scorching! And here to stay.

You’re on the hunt, and the prey is business financing under an asset financing scenario you have got heard a lot about. Let’s examine what an ABL facility is, who is the asset primarily based lender that provides this financing, and, oh yes, do you qualify?

To say that business credit financing is high of mind as of late with Canadian enterprise house owners and financial managers is clearly an understatement. With the financial clouds clearing on the horizon after the 2008-2009 business credit meltdown enterprise owners are in search of growth financing.

And the reality is that the kind of working amenities that you’re searching for are getting harder to safe from Canada’s major chartered banks. We’re of course referring normally to firms that have some form of challenge, because medium sized and huge Canadian companies with nice steadiness sheets, income, and stable cash flows can access nice credit score phrases from the banks.

Unfortunately that is not the shopper profile we’re speaking to everyday – as house owners we meet have challenges equivalent to inability to safe the operating cash they need, the requirement to accumulate further assets, or even a full acquisition of a competitor. And that economic turbulence we talked about earlier usually implies that many firms are coming out of a turnaround sort environment and are slowly getting their financials again in order. Therefore the flexibility to safe an ABL facility (abl = asset based mostly lending) for inventory and receivables turns into the objective in asset financing.

So what is the actual distinction in asset financing beneath and abl facility compared to a bank line of credit score, commonly known as a ‘ revolver ‘ in business finance. One of the simplest ways we explain it to shoppers is that the bank focus is on cash stream, the asset based mostly lender focuses on assets. Huge difference!

So, does your agency qualify for abl financing? Typically, as we stated, any firm with property of receivables, inventory, tools and real estate qualifies. The place the problem is available in is deterring the overall quality of those property as well as the dimensions of the facility. An ABL facility is mostly available for any firm with over 250k in a mix of receivables, stock, and equipment. In sure circumstances even tax credit score receivables might be financed.