Business Cash Flow . Are You ‘ Pro’ ? The Case For Working Capital Finance Solutions And Management

The Oldest Words In The World - Not Cash Flow .. But Perhaps ?

OVERVIEW – .Information on business cash flow and working capital finance management . It’s all about the new tools for cash flow financing and understanding cost and management of current assets



Business Cash Flow in Canada . It always seems to us like a bit of an understatement when you talk to clients about working capital finance solutions and their importance. Business owners and finance managers know the challenge of raising capital or monetizing existing assets... or both!

Naturally financing needs are diverse. It could be operational cash flow, replacing existing assets, etc.

Is there a SME drought of some type in Canadian business financing? The commercials , stories, and ads we see everyday seem to say not, but in talking to owners and managers finance often seems just a step away from crisis mode.

When it comes to cash flow and working capital resources it comes down to two basic issues - managing your assets and accessing traditional or alternative finance to meet your needs. Top experts tell us that surveys of business indicate that well over 50% of all businesses in the small to mid market sector in Canada, in all industries are either worried or concerned about their ability to finance operations.

While simple mismanagement of your business assets is one reason for that the other is simply your inability to collect promptly from late paying clients. In some cases your clients actually might be temporarily unable to pay! Our traditional lending institutions such as Canadian chartered banks are risk averse - that has made them very strong in global profiles, but has left Canadian business shall we say ' unfulfilled '!

Rather than wait for the government to step in resourceful business owners/mangers have simply gone out and accessed alternative financing to meet their cash flow fluctuation needs. Thos sources include:

A/R Finance
Asset Based Non Bank Lines Of Credit
PO / Supply Chain finance
Sale Leaseback strategies
Securitization or monetizing contracts
Inventory Finance

Invoice (A/R Finance) is probably the most popular method of addressing the working capital challenge.

While owners and managers are justifiably concerned about the cost of financing they sometimes forget that how you manage your assets can significantly decrease your overall financing cost. And while some ' alternative ' finance solutions are viewed as too expensive there are numerous ways to offset costs of any financing you undertake.

Don't forget also there’s a huge difference between taking on new long term debt versus monetizing assets for cash flow. Let's utilize a quick example:

Consider a firm who borrows 100,000.00 as a term loan over 5 years, putting new debt on the balance sheet. Interest on that debt might easily be 15,000.00 over a 5 year term, even at excellent rates. Consider the business owner who monetizes 100k of A/R for a 30 day period. Cost is approx 2000$, and new sales creates profits over and over again as sales are generated and assets turned.

Don't underestimate the need for business cash flow and the power your firm has when it’s utilized properly. While ‘ cash flow ‘ may not be the oldest word or term in the world we cant underestimate its importance to business survival .

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business cash needs.




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 = BUSINESS CASH FLOW AND WORKING CAPITAL FINANCE




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