It’s Changing Times In Canadian Business Finance!
Information on the lending solutions for cash flow and working capital challenges in Canadian business.
Has your firm got cash flow in the cross hairs?
For many Canadian business owners and financial managers its clear - something isn’t working. Business seems kind of back to usual after 2008-2009 collapses ( of everything) but the average SME business owner and financial manager finds they have less working capital and lending solutions available than they had in the past .
Industry experts point out that the actual access to business credit and cash flow solutions is more and more a great predictor of survival.
Naturally all banks and major finance firms have websites and advertisements that indicate they are providing more credit to great companies like yours. Sorry for the sarcasm...
It's no secret that lending standards are tighter than in the past, there are certainly not a lot of looser credit standards and criteria these days.
Here's a big irony - a large amount of businesses in Canada actually run their businesses on credit cards - both business, and... You guessed it, personal.
The one danger there of course is that the owner’s personal financial life is significantly mixed into the business. In general that's not a good thing. One study in the states indicated that business owners seem to squeeze about 5k of revenue out of every 1k they spend via business credit cards ... it could be worse we guess. All of a sudden that 0% interest rate on a new card must seem tempting we suppose.
In a perfect world (and we know it isn't) you want your company to be able to have enough cash for all your business needs, all the time. That’s of course where the imperfect world comes in.
What really happens is that you spend a lot of cash sometimes, and in those good months you receive a lot of cash from clients for goods and services delivered... For start up firms or companies with a lot of seasonality in their business it's even a rockier road.
If the business owner and financial manager tracks ' the numbers' over time he or she will find that at time when they have high inventories and receivables they are generally running out of much needed working capital / cash flow .
Here's a fundamental concept that every business needs to get a handle on : You can raise cash flow by drawing down all the cash you have in the bank, borrowing via lending solutions - short term or other wise , or raise additional owner equity . But you can’t keep doing any one of those all the time!! There needs to be a balance, and a strong look at why you are always running low on cash.
Is there a most recommended way to access cash flow? More often than not it’s an internal solution, reducing A/R and inventory and managing payables carefully.
Great lending solutions for your cash needs include:
Receivable financing
Inventory Finance
Supply chain / PO financing
Asset based busines credit lines
Chartered bank lines of credit
Monetizing tax credits
Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in your business financing needs.
CANADIAN 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_working_capital_lending_solutions.html
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