Christmas Cancelled Due To Cash Flow Financing! Avoiding Problems And Accessing Solutions To The Working Capital Gap In Canada

Business Financing Not Working For Your Company . Here’s Why!

Information on critical cash flow financing problems , What solutions can the Canadian business owner use to solve working capital problems



Say it isn’t so. Please say it isn't so. But it is so. There it was. The front page of Canada's best known business page, Sept 10/2012. It was a headline that screamed at us to look into it.

What was the story ?It involved one of Canada's most iconic and largest corporations , indicating that the company had chosen to preserve cash due to their investments in growth and the future . The result? Travel cancellations, no new hires, and yes ... and we're quoting here:

‘CUTTING ALL FUNDING FOR CHRISTMAS PARTIES’


We suppose if they had been politically correct they should have said ' holiday parties ' but we’ll weigh in on that one another day ... as in never.


So, cash flow financing. Is it that important that it makes the front page of Business news? Well we have always thought it was so thanks for the vindication.

Let's examine why front page news is where working capital solutions belong. Business owners and managers in larger corporations all the way down to start up realize that its that elusive cash flow that runs their business on a daily basis ; and in the case of our subject company today allows you to plan and grow for the future .

So, it’s all about careful planning, and solutions to not run out of cash. And as we're always saying, you can both access cash flow and working capital solutions, as well as managing your assets to optimize cash.

The business owner always struggles with debt and although that strategy (taking on debt) is on way of accessing capital it's certainly not always the solution. In fact we tend to favor two better solutions:

Managing asset turnover in receivables and inventory (and payables)

Monetizing assets into cash flow solutions that include:

Bank credit lines
Non bank business lines of credit
Receivable and inventory financing - together or separately
Supply chain / PO financing
Monetizing valuable tax credits under the SR&ED or **Film Tax Program - * unfortunately not all of us make movies though


Canadian business owners and managers need to run their business while at the same time understanding their cash flow cycle - its not that simple - just doing some basic calcs around how long it takes for 1 dollar to flow through your corporations, from the time you buy supplies and services to the point where your valued clients pay you . It doesn't take long for the business owner and manager to understand that cycle can be anywhere from 60 -120- days. And in between that? It's the cash flow gap!

Also, differentiate between making a profit on paper and having cash, or access to cash on your balance sheet. Huge difference.

In Canadian business financing today there are numerous solutions for working capital. Some are called ' alternative ‘... many are newer and innovative, often called ' alternative '. All of them can work for your firm when you understand how they work, what they cost, and what the benefits are.


So, Xmas cancelled. We hope not. But in the meantime, speak to a trusted, credible and experienced Canadian business financing advisor on how you can access cash flow financing that makes sense for your firm... today.

7 PARK AVENUE FINANCIAL
CANADIAN CASH FLOW AND BUSINESS FINANCE EXPERTISE