In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.
Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.
Friday, January 24, 2014
Business Financing Health : Recognizing Finance Options
Secrets To Business Health And How They Relate To Financing Options
OVERVIEW – Information on finance options for Canadian companies. How does the overall ‘ health’ of your company affect type and amount of financing you need or are eligible for?
Business Financing Options in Canada often depend on the overall health of your company. A lot of questions can be answered by simply looking at some very basic and fundamental numbers and relationship in your financials. The doctor is in. Let's dig in!
Key to any business financing or survival for that matter is the whole issue of solvency . Here owners and managers want to assess the level of assets and debt. Lenders will always want to focus on owner equity, with a more refined focus of this number being ' tangible net worth.
Finance options will also depend on your ability and need to meet current financing commitments. Here we will point out that even a company that has had its loan called can still get very strong levels of alternative financing based solely on the asses of the business. This type of financing typically is called ' ASSET BASED LENDING ' and can come in many forms, both term debt and operating debt. They provide a path back to what many term ' traditional financing '.
The asset lending we've mentioned, when it comes to operating financing, will almost always revolve around receivables and inventory. The size, quality, and management of these two assets will dictate what type of financing you need... and... as importantly are eligible for.
You can properly measure, and help manage these two assets in some basic simple ways. In the case of A/R it simply calculating your ' day’s sales' in receivables turnover. Since the sale of inventory translates into a sale and then a receivable the management and tracking of A/R and inventory is a great way to track business health. P.S. The big companies do it all the time, all day, every day, and more often than not senior management is compensated on the management and performance of these two assets.
In the past, and we suppose we're doing it, we've suggested to clients that they track a simple chart that shows sales growth and then measures that same growth against the growth of A/R and inventories,
When looking at finance options it's important to assess whether you are looking for business financing to operate, start, or expand. In addition to traditional finance solutions offered by the Canadian chartered banks numerous other solutions work. They include:
Working capital term loans
Asset based lines of Credit
SR&ED Tax Credit Bridge Loans
Govt Small business loans (to maximum 350k)
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help you assess business health and finance options that suit your operating or growth requirements.
Stan Prokop - 7 Park Avenue Financial :
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :
7 Park Avenue Financial = Business Finance Options Expertise !
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