Surprised ? Here’s The # 1 Enemy of Business Cash Flow and Working Capital . You Shouldn’t Be!

Here’s A Clear Picture Of Your Cash Flow Needs And Solutions

Information on business cash flow and working capital financing in Canada . A strategic overview of what hurts and helps Canadian business owners when it comes to financing their company .


A business cash flow killer. Enemy # 1 when it comes to working capital for Canadian business?

Are you ready? Hopefully it won't be a surprise, but the number one killer of cash flow and working capital for Canadian business owners and financial managers is: Sales!

While most ' experts' say that its poor management that creates business failure we are pretty sure we can make a case that it’s the poorly timed financing of cash flow that comes a very close second! That goes, by the way, for a start up as well as established medium to large corporations.

The reality is that you need to understand your sales cycle and how it impacts cash flow; at the same time you need some sort of ' road map ' to business financing success. So whether its equity or debt financing you have to realistically and creatively address your cash and working capital needs.

Let's examine some ' real world " (that’s the world most of us toil in everyday) solutions to measuring and generating capital for your business.

So let’s get back to that enemy, which you probably always thought of as your friend: Sales revenue! In reality that sales revenue is a huge consumer of cash, because there's a whole series of steps that go ahead of generating that sale and collecting your receivables.

So what is that whole sales or cash flow cycle? Its the time and dollars that are spent on marketing, ordering products and services, making and delivering those products and services, invoicing them, WAITING... yes WAITING .. And then, voila! payment from your client . In most companies in Canada that can take anywhere from 30 - 100 days, and we can assure you most firms fall closer to 100 days than 30.

As you are on that journey to deliver your product and service you are spending money, and waiting, all along the way.

So how does the Canadian business owner / manager help stifle the cash flow enemy? One immediate quick solution you won’t like is to reduce sales revenue and focus totally on collections. You'll be business cash flow perfect but stomped out of business by your competitors, who are growing sales and employing solid cash flow financing methods.

The better solution - develop good financing and controls throughout your sales cycle , understand your cash flow metrics, and get creative with alternative methods of sales financing .

You can actually generate cash throughout your sales cycle by employing solid Canadian business financing techniques. They include bank lines of credit, receivable finance, offering customer financing solutions via a qualified third party, employing supply chain finance strategies, and turning your company into an immediate cash flow machine with asset based business lines of credit.

So, sales and revenue growth. The enemy? Certainly not the case if you have some solid controls and solutions in place. Speak to a trusted, credible and experienced Canadian business financing advisor on working capital solutions for your business.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS CASH FLOW FINANCING EXPERTISE




Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.

Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/business_cash_flow_working_capital.html