Monthly Archives: October 2017

Is Financing Inventory And Financing Purchase Orders Actually Possible In Canada ? Yes You Can!

It’s not a myth or urban legend. Financing inventory and financing purchase orders in Canada is actually possible and in most circumstances the cost of this financing is significantly offset by your firms ability to increase sales, generate additional profits, and lower competitive pressure .The bottom line is of course more larger orders and contracts, in some cases from clients you were not able to satisfy in the past based on our financial strength or other challenges.

Let’s step back a bit and define some of our key metrics. In its simple form the financing of inventory is simply your ability to finance, or rather, ‘ margin’ inventory on an ongoing basis. The inventory is of course simply the collateral. Clients talking to us about seeking specialized inventory financing are often in the position of having inventory form a large part of their current assets, in conjunction with accounts receivable of course.

So in a perfect world you go to your Canadian chartered bank and ask they to finance you inventory and free up cash flow. It’s that simple right? We can hear you already in the background, and we’ll be the first to admit it’s not a perfect world. Even seasoned Canadian business owners and financial managers realize the inventory is not high on the list of bank financing in Canada, especially if you are a small or medium sized firm that does not have the bench strength to satisfy typical bank criteria which focus around everything EXCEPT inventory, i.e. ratios, covenants, external collateral, personal guarantees, etc.

For inventory financing to make sense you should realize that your inventory has to be marketable, it can’t be old, stale and slow moving. You also have to be in a position to demonstrate that your inventory turns regularly, and that you have sufficient gross margin to carry the financing costs associated with financing inventory and financing purchase orders. P.o. Financing is of course the ‘ kid sister ‘ to inventory finance, and such a facility contemplates direct payment to your suppliers by the p.o. financier , allowing you to of course satisfy supplier payment amounts and terms, while at the same time fulfilling client orders and contracts .

So if the bank is not your best bet how actually are these two asset categories financed? The reality is they are financed by specialized firms, and in the case of inventory pure play financing we encourage clients to bundle their inventory financing with a full asset based lending line of credit via a non bank private finance firm. This type of facility margins both inventory and A/R to maximum leverage, giving you in essence unlimited working capital to grow.

To qualify for financing inventory and financing purchase orders you should generally have solid management and industry experience, good accounting and reporting around your inventory, as well as the aforementioned marketable product that can be resold by the financier if a problem arises.

Speak to a trusted credible and experienced Canadian business financing advisor on ensuring your understand the benefits and qualifications for this valuable financing tool and strategy.

Stan Prokop is founder 7 Park Avenue Financial ; Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 6 year old firm has completed in excess of 45 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:
http://www.7parkavenuefinancial.com/Financing_inventory_financing_purchase_orders.html

Top Ten Countries Carry Most Debt Burden

Japan tops the list of ten countries that carry the most debt burden, followed by Saint Kitts and Nevis, Lebanon, Zimbabwe and Greece. The debt burden of this country becomes heavier after March’s nuclear disaster. The severe earthquake and tsunami that hit Japan are expected to cost over $ 300 billion.

 

Japan

 

Japan is the country with the highest debt-to-GDP ratio of any country in the world. The Japanese government has been in debt since the housing bubble in the 90s. Especially, the debt burden becomes heavier after the  the worst natural disaster in history hit this nation in March 2011. The Japanese government has to pile billions of dollars of fresh borrowing on top of a debt load. However, Japan has a high savings rate which makes it easier for the government to finance the debt. 90% of Japanese debt comes from Japanese individuals. 

Debt as percent of GDP: 225.8

 

Saint Kitts and Nevis

The federal two-island nation expects to get creditor cooperation in restructuring its public debt stock, which is said to be a total of about $ 1 billion. However, treasury bills are not a part of the plan.

Debt as percent of GDP: 196.3

 

Lebanon

According to IMF, the country’s debt has been falling down but half of its budget revenues go towards interest payments on its immense debt burden. Lebanon’s public debt is now at $ 52.7 billion.

Debt as percent of GDP: 150.7

 

Zimbabwe

Uncheck spending of President Mugabe had raised Zimbabwe’s debt burden. The country even asked for debt relief as part of the Heavily Indebted Poor Countries program in 2010. The IMF said that Zimbabwe was under debt stress.

Debt as percent of GDP: 149

 

Greece

Though the country has passed new austerity measures and been provided a second bailout, its default reportedly looks more likely. Greece’s public debt is expected to rise in 2012 before easing in 2013.

Debt as percent of GDP: 144

 

Iceland

The country’s economy is said to get a strong return and CDS (Credit Default Swap) on its debt has eased 14% this year. Ratings agencies maintain their junk status on Iceland with a population of about 320,000.

Debt as percent of GDP: 123.8

 

Jamaica

The island country saw a debt burden growing between 1996 and 2003 as its financial sector took a hit and a drought hurt the agricultural production. Jamaica even introduced the Jamaica Debt Exchange (JDX) program to restructure its domestic debt.

Debt as percent of GDP: 123.2

 

Italy

At the end of April, Italian public debt is said to be a total of €1.89 trillion. Prime Minister Silvio Berlusconi has survived a confidence vote on a €40 billion austerity package to help this country avoid becoming the next domino to fall in Europe.

Debt as percent of GDP: 119

 

Singapore

Singapore’s low debt-service ratio, for example ratio of debt service payments to that of its export earnings, has been attributed to low interest rates. Singapore is also among the nations that are under debt stress.

 

Debt as percent of GDP: 102.4

 

Belgium

To prevent contagion of fears and keep calm markets, Belgium’s caretaker government announced better-than-expected budget deficit projections of 3.3%, instead of previous estimates of 3.6%. This nation’s debt is forecasted to peat at 98.3% of GDP in 2013.

Debt as percent of GDP: 98.6

 

Greece’s Debt Burden

 

Related links:

Richest Countries in the World

Top Ten Countries That Have The Most Millionaires

Ten Countries With Most Natural Gas

Jolie Crussel, an economic expert, is keen on analyzing the economic situations in the world. Currently, she often delivers lectures on economic solutions to students and provides advice for many firms.

How To Get Loans For A Black Business With Bad Credit: Learn Alternative Channels To Get Funding

How To Get Loans For A Black Business With Bad Credit: Learn Alternative Channels To Get Funding

How To Get Loans For A Black Business With Bad Credit: Learn Alternative Channels To Get Funding

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Dealing With Bankruptcy, With Legal Debt Assistance

Bankruptcy has become daily news. Its a legal term given that can be headed on debtors, if they fail to pay money back to respective creditors. The every other day some or the other rich is getting bankrupt. Do you know why it happens? People start earning money more than what their dailies demand and come into a sudden conclusion that they wont get bankrupt and their own money handling systems hinder and get into jeopardy of breaking down! Like credit debts unpaid, wage garnishment, repossession of vehicle or home, losing your sleep worrying extensively about your finances, foreclosures etc can be some the major raison d’tre for you fearing to get bankrupt. There are lawyers who are available for you anytime to discuss the bankruptcy you fear and will help you out, legally.

There are sites availed which provide attorneys to hear your plea and take that forward. Like the Bankruptcy Lawyer Gainesville of Florida assist you advising proper employment of money for a better future. They further support you for the reconstruction of debts, where the debts are reconstructed and imperatively paid off on regular basis. Its a wiser choice, as it enables repackaging of debts with lower interests. Bankruptcy can be individual or of a corporate. You simply need to visit their sites and schedule your appointments with them. Also the Bankruptcy Lawyer Jacksonville enables services lending a hand for getting your debts cleared or getting your credit from firms that you owe. Contacting them is easier now. One can get the efficient lawyer to fight for you as well.

Bankruptcy can be nightmare come true for anyone in this competitive world. All such tribulations regarding it are handled well by attorneys playing a legal role in the businesses. They advise upon handling or avoiding a foreclosure as well. They handle very well chapter 7, liquidation bankruptcy or chapter 11, reconstruction of debts or chapter 13, reorganization bankruptcy. So people out there suffering from fear of breaking down or have already gone penniless, can take this as the next thing to last resort you ever thought of. They also provide free evaluations of your bankruptcy.

For more information, please visit: www.kevingleasonlaw.com

How to Use a Factoring Company to Finance your New Business

Although the economy still has challenges, most experts agree that conditions are improving. Unfortunately, this does not mean that getting conventional business financing will be easier. The sad truth is that many lending institutions are still licking their wounds from the excesses of the subprime credit bubble and few are willing to lend to companies – unless they have substantial collateral. Even institutions that are providing business loans to small businesses are focusing only on the bigger small businesses. So, where does this leave small and new businesses? Not in a very good place.

Small companies have had to improvise to survive the crisis. Not only bootstrapping their operations, but also looking for less conventional sources of funding. One of these less conventional sources of financing is invoice factoring. Although factoring has been available for decades, it’s gained mainstream notoriety during the recession because it was one of the only sources of funding available to small and new companies.

One of the biggest challenges that small businesses are dealing with are slow paying commercial customers. In the past, commercial clients paid their invoices in 15 to 30 days. Nowadays it tales closer to 45 or even 60 days to get paid. Few small businesses, let alone startups, have the capital reserves to wait that long to be paid. Invoice factoring helps these companies by providing them with a funding advance against their invoices/receivables.

Factoring reduces the time to get paid dramatically, freeing up your cash flow and allowing you to meet existing business demand – or deploy it to pursue new sales opportunities. Most small companies use factoring as a stepping stone to grow the business and eventually qualify for more conventional financing.

As opposed to most conventional financing alternatives, qualifying for accounts receivable factoring is relatively easy. The most important requirement is that you do business with reliable credit worthy companies. Aside from that, your company needs to be free of legal problems.

About Commercial Capital LLC

Are you looking for a factoring company? We are a leading factoring company and can provide you with a competitive factoring quote. For information, please visit our website or call (877) 300 3258.

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