Our blog highlights Canadian Business Financing solutions via receivable finance , equipment finance, working capital financing, asset based lending, business acquisition financing,franchise finance, and tax credit monetization via SRED and Film Tax Credits. Our goal is to educate and assist Canadian businesses with their financing needs. You Are Looking For Canadian Business Financing! Welcome to 7 Park Avenue Financial Call Now ! - Direct Line - 416 319 5769
Wednesday, February 6, 2013
Which Cash Flow Lenders Can Solve Your Funding Problems In Canada?
Don’t Forget These Two Rules For Your Company To Be A Cash Flow Gusher!
OVERVIEW – Information on solutions delivered by cash flow lenders for funding Canadian businesses that are addressing their working capital challenges for survival and growth .
Can cash flow lenders and funding solve or fix the challenges that Canadian business owners and managers face? We’re not exactly sure your firm can become a ' cash flow gusher ' but the reality is that these sorts of solutions can stabilize and help grow your company. Let's explain.
We're taking somewhat of a large liberty in re- doing what of Warren Buffets great sayings - our version as follows:
‘There are only 2 rules in business. Rule # 1- generate cash flow. Rule # 2 - (here it comes) ' Don't forget Rule # 1.
In any business there are going to be some times when you 'veer off the road'
and make some mistakes, and becoming 'cash flow tight' temporarily will no doubt be one of them. So some wise advice is to get to know the potential solutions to cash flow financing in advance - simply investing a bit of time in understanding what your options are.
What are those options then? Some of them you may have heard of, perhaps your firm are even using them. In other cases the terminology might be new and you'll have to trust us that they are worth checking into.
And those solutions? They include:
Unsecured cash flow loans
Receivable financing
Inventory finance
Asset based non - bank lines of credit
Commercial bank credit facilities
Supply chain / PO / Contract finance
Securitization
Tax credit monetization
Sale leasebacks
Oh, by the way, all of these facilities simply monetize your assets, so you are not in any case taking on long term debt. We're pretty sure the revered Mr. Buffett would give us thumbs up on that one.
So how do you know when you need one of several of these solutions? Larger firms take a look at some reliable indicators of measuring your progress in the cash flow area.
Oh and by the way, these ratios (we call them relationships) are available to the small and medium sized business owner; they are just too busy putting out cash flow brush fires to check them out. Point hopefully well made!?
In case you haven’t figure it out by now these same ratios or relationships are in fact used by pretty well anyone looking to lend your firm money . They help to evaluate risk and are solid reflection of how you're managing your assets and resources in general. Ultimately they are of course looking for assurance that you can meet the payments in their loans and financing. One final point - having a bit of handle on these numbers allows you to foresee future problems.
The ratio/relationships you should have a solid handle on include the working capital ratio, cash flow coverage, debt to equity, and our personal favorite operating cash flow. The latter is the real world indicator of whets happening as there can be a lot of mistakes hiding behind a few of those other numbers in your financial stats.
If you want to strive to make your business more of a 'gusher' than a user seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can ensure solutions from cash flow lenders bring your business the funding it needs .
P.S. And don't forget rule # 2!!
7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS CASH FLOW FINANCING AND FUNDING
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/cash-flow-lenders-funding.html
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
Stan Prokop
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