Putting The ‘ Ding’ In Fun When It Comes To A Financing Emergency .
It’s Funding !OVERVIEW – Information on business financing services and financial strategies for the funding needs of your firm when emergencies arise.
Business financing services in Canada . That's where the Canadian business owner and financial manager looks when they need to quickly put the ' ding ' back in the fun; which equates to FUNDING of course!
We meet many clients who fortunately are doing a pretty good job of planning ahead for their financing needs. What they don't forsee is the unanticipated event that causes an immediate negative reaction in their cash flow and working capital funding needs. Just the other day we met with a client who had lost their major client. The problem? That represented 80% of all of their business. The adverse reaction? Well, you can pretty well feel the pain, but one immediate thing that happened was that their bank called their operating line of credit.
Is there some ways to take stock of how you can plan for adverse business events that happen pretty fast? We think there is, so let's dig in!
A lot of the points we'll make revolve around three areas, growing your business, generating profits, and just plain surviving! It's the goal of the owners and financial managers to keep cash flowing through all those periods, and each of them has their challenges.
It seems easy to prepare a cash flow forecast and get a strong sense of your inflows and outflows over time based on your own experience. But what will you do when the unexpected occurs: That might include:
Competitor issue re pricing/products
Government legislation
Technology change
Etc!
That's when things get exciting, in the worst way!
So how can the business owner plan for funding when an emergency situation occurs? To us it comes down to three elements:
1. Having a strong sense of the time it takes to search for funds - It just might be recommended that you always have an expert in Canadian business financing to talk to - even in the good times
Knowing what options are available - These might include a temporary bridge loan on unencumbered assets, a receivable finance strategy, Purchase order financing, an unsecured cash flow loan, and finally a monetization of any tax credits which can be financed . (Yes you can finance a SR&ED claim), and the sale leaseback of owned assets. Oh, and by the way, do you recall that client that had their chartered bank operating line of credit called - they are fully eligible for a non bank asset based line of credit?
3. Knowing that you do have a strategy to mobilize resources you are not using today. At this point you are no longer ' keeping score' in business; you're taking stock of all your financial resources in business assets, financing relationships, etc
Financial emergencies can happen to your company at any time. At that point you need to ensure you know what your resources are, what assets can be liquidated, and knowing you have alternative financial vehicles to cope with planned outflow of cash.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with a financing emergency, or help you to avoid one!
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 :
7 PARK AVENUE FINANCIAL – CANADIAN BUSINESS FINANCING SERVICES
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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