Beat these 6 Worries on Working Capital Finance In Canada
Information on cash flow financing and business funding in Canada . What solutions work best when, and why .
Cash flow financing in Canada for your business funding needs. And the B A P? I guess we'll have to confess and advise that it stands for ‘BIG A$$ PROBLEM’...!
Not sure if that’s the term we would use in talking with our bankers it’s probably a term that our cousin Frank would use if we were describing business financing challenges in Canada. ‘(Doesn’t everyone have a cousin Frank who is a bit rough around the edges?)
It is of course those cash flow problems that keep your business from moving forward and generating the sales and profits you need to. Naturally every company's situation is a bit different, but at the end of the day doesnt it boil down to these categories: Here's 6 of them -
Your growth is being penalized due to cash flow challenges
Your competitors seem to be beating you to the punch (how is it that they are doing that ... i.e. financing their growth
You're spending all your time worrying about cash flow challenges
A lot of the solutions you have heard about seem somewhat technical and hard to understand how they would work on a daily basis
You don't know where to start - it’s an overwhelming and confusing feeling
Insert your own problem here!!!!!
So where does the Canadian business owner and financial manager start. One firm calls the plan your ' growth and financing navigator ' ... its all about knowing where to start.
First things first so you need a handle on your business, and it’s not as hard as you think. Spend some time to address how your company looks from a balance sheet point of view, what amount of funds do you really think you need, and what are some specific issues around your industry or company? I guess that’s where we say ' INSERT YOUR OWN PROBLEM HERE '!
Naturally all companies are in different stages - either start up, early revenue growth, or mature with prospects of growing. In some cases your firm might be established and looking for alternative financing to enhance your growth prospects.
In many cases in the SME sector owners of the company ar also the managers, so you need to be in a position to both step back and also when it might be time to bring in a trusted business financing advisor who can objectively assess risk management and liquidity solutions.
That’s when you have to assess whether you're going the debt or equity route. Equity is a whole different kettle of fish and not our subject for today. That therefore leaves us with either new debt, or, our most favorite solution, monetizing existing assets to accelerate cash flow. Through the whole process reality checks are often needed, i.e. what is really achievable here?
There are probably at least ten, if not more solutions to cash flow financing for your firm. As we said, they are a combo of debt and monetizing assets.
They include receivable financing,
inventory financing
leasing and sale leasebacks
supply chain financing
bridge loans
bank lines of credit
non bank lines of credit
government busines loans
securitization
ETC!
So, as our rough around the edges cousin said, figure out your B A P and then also consider speaking to a Canadian business financing advisor to assist you in cash flow financing and business funding.
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/cash_flow_financing_business_funding.html
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