Working Capital And Business Cash Flow Problems?

Consequences of Inadequate Cash Flow And Growth Financing


OVERVIEW – Information on solutions for working capital and business cash flow problems for the Canadian business owner .




Business cash flow problems. Are there some consequences to working capital management and solutions? You bet there are, so let's recap what's important when it comes to this critical aspect of running, managing and growing your business.

Your ability to both manage working capital, as well as finance it will ultimately decide the long term success of your business. (A lot of small things happen along the way too!)

So how in fact can you exhibit good business working capital management and can you in fact measure that concept ? Look at the following points and ask yourself as a business owner or financial manager where you fit in -

Do you typically have enough cash on hand to cover your operating needs?

Are you in control when you look at the overall daily management of your accounts receivable?

Does the cost and flexibility of the financing you have in place reflect your overall needs?



It is safe to say that if you answer to any (or perhaps all?!) of the above you're either continually muddling through a cash crisis, or worse, the survival of your company is at risk.

So how does a firm actually ' run out of cash ' and what can you do to spot this as far in advance as possible? Believe it or not ' fast growth ‘, something the owner and entrepreneurs and managers dream of actually becomes a double edged sword relative to business cash flow problems.

That's because all that growth bulks up your balance sheet and you’re now carrying inventory, receivables, and new fixed assets all of which make you balance sheet rich and .. you guessed it... CASH FLOW POOR! To make matters worse , when sales in fact start to slow down at the same time inventory turns slow and a/r deteriorates you're as close to crisis mode as you ever will want to be .

A key point we make here also is that we're assuming all this growth is bringing you profits. If in fact it isn’t, i.e. higher costs then you're at the edge of your own version of the fiscal cliff

one more time. No business owner wants to be there!

So are we all doom and gloom today? Hopefully that's not how it's coming off. The reality is simple tools such as a cash flow budget and financing solutions such as:

Receivable financing
Asset based non bank credit lines
Commercial bank lines of credit from Canadian chartered banks
Tax credit monetization
Supply Chain Financing
Securitization
Unsecured cash flow loans

all can help you get to the working capital goal line. Oh and by the way that cash flow budget isn’t a sales forecast, it should properly reflect the timing of inflows and outflows to your capital.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in measuring and solving working capital and business cash flow problems.

7 PARK AVENUE FINANCIAL
CANADIAN WORKING CAPITAL AND CASH FLOW FINANCING EXPERTISE



Stan Prokop





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 10 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/working-capital-business-cash-flow-problems.html