In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.
Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.
Wednesday, September 5, 2012
Is The Grim Reaper Of Your Business Cash Flow? Here’s Working Capital Tips And Solutions That Only Make Sense
You Lose.. He Wins .. Don’t Let The Grim Reaper Of Business Finance Get The Lead On Your Business !
Information on business cash flow solutions for the working capital challenges faced by Canadian business on a daily basis .
Is the lack of business cash flow a potential ' GRIM REAPER ’ for Canadian businesses of any size? We certainly think so, and that’s why the ability to figure out / measure what isn’t working and what solutions are needed should be ' job 1' for the Canadian business owner and financial manager.
The goal of course is simple, and it’s to achieve the right balance of both profits and cash flow liquidity. Easier said than done, as we are prone to be saying these days, but the sad state of affairs is that most clients we talk to are focused on revenue and profits and don't have the best handle on business cash flows. And even when the problem has been identified where does the business owner/manager go for solutions?
It seems as if the Grim Reaper of negative cash flow seems to be stalking us all the time!
The actual management of cash flows is really about how well you handle turnover and overall quality of your ' current asset ' accounts. They are actual cash or business lines of credit you have access to, receivable turns, and inventory turns. And, as we said, it’s a case of quality, not quantity. We get a big kick out of what many financial analysts and accounts deem to be the best measurement of liquidity, and that’s the ' current ratio ‘. In reality this number looks great, even fabulous if you have uncollectible receivables and slow moving inventory. But don't get us started...
At the core of understanding your business cash needs is the concept of arranging your finances so that short term cash flow needs are in fact met by short term asset financing. Typically in Canada that comes from various types of financing that might include:
Asset based non bank lines of credit
Supply chain / purchase order financing
Tax credit monetization
In order to determine which one of these is right for your firm the business owner must focus on the amount of financing you require, the rates of that particular finance vehicle, and your overall ability to get approved for the financing you believe you need.
Many of the non traditional sources of working capital solutions , some of which are referenced above have in fact become more popular and well known simply because Canadian business has found it more difficult and challenging to access proper liquidity solutions from Canadian chartered banks over the past several years, although, on balance, this seems to be improving . And remember that traditional bank financing can be withdrawn at any time if the bank calls the ' demand ' loan based on perceived risk in your business, or industry. Think Automotive, circa 2008-2009.
Managing and having access to working capital cash flow and solutions is one of the greatest challenges for any business. Dropping the ball on this issue will ultimately lead to business failure.... simply speaking... the GRIM REAPER wins.
Speak to a trusted, credible and experienced Canadian business financing advisor for proper solutions to business liquidity.
7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS CASH FLOW SOLUTIONS
Stan Prokop - founder of 7 Park Avenue Financial –
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 :