Asset Finance Is All About Turnover And Canadian Business Financing Solutions Geared Specifically To Your Firms Needs

A Surprising Way To Measure Your Business Financing Needs – The GANG OF FOUR!



Information on asset finance solutions in Canada and why Canadian business financing is complemented by solid understanding of turnover of assets



Asset finance . When it comes to Canadian business financing there some surprising simply , yet powerful , shall we call them ..' tricks' when the business owner or financial manager needs to measure current and future financing needs . And those ' tricks ‘? They’re really just simple tools to measure ASSET TURNOVER. Let's dig in.

Speed counts in a lot of aspects of business - not all the times, but often. So the speed at which you turn assets into cash will often ultimately dictate the type of finance your firms needs to make it to the goal line.

It's important though to look at the trends in those numbers over time, not just on any one day. Let's take inventory as an example. Yes of course you want to know how many times your inventory turns ( Sales / Cost of Sales ) - It's important, but wont on it's own dictate the over all health of your company.

The GANG OF FOUR, as we'll nickname them, dictates how you are using those assets. They are:

A/R
INVENTORY
FIXED ASSETS/EQUIPMENT
TOTAL ASSETS

Knowing your DSO, ' day’s sales outstanding “simply tells your company how long it takes to turn over your accounts. Because you are selling on credit you need financing to support the sales growth in your A/R levels. Companies can address receivable financing via:

Factoring (Traditional)

Confidential Receivables Finance

Commercial bank lines from Canadian chartered banks

Non bank asset based lines of credit that are individual or combos of A/R and inventory margining

When you do a good job of granting credit, and collecting A/R even more expensive alternative finance solutions such as factoring make strong sense. Many clients we meet are in the business of PROGRESS PAYMENTS. Here's where things get a bit tricky, but they don't have to be. If you're able to get a down payment that helps - many firms do that. And, guess what? Progress payments can be financed if you've got the right financing partner.

We've touched on inventory finance already a bit, so let’s look at Asset turnover in general. You use your non current assets to typically operate your company and generate revenues. This is particularly important if you are in a capital intensive business. We meet with many clients who are service based and have little need for asset finance. At the other end of the spectrum are companies who need to utilize:

EQUIPMENT FINANCE
SALE LEASEBACKS
BRIDGE LOANS
ASSET BASED LINES OF CREDIT THAT INCLUDE FIXED ASSETS

as methods of Canadian business financing.

As we have said there are numerous ways to measure how much financing you need, and what type of financing works best for your particular situation. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital 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 = CANADIAN BUSINESS FINANCING AND ASSET 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