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
WELCOME !
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, July 11, 2014
Funding Businesses In Canada : Little Known Business Financing Loans And Cash Flow Strategies
Can You Properly Recognize Business Financing Needs ? Don’t Make These Mistakes
OVERVIEW – Information on business financing loans and alternatives in Canada . Funding businesses requires knowledge of the type of finance solutions that meet your company’s specific challenges and needs
Funding businesses in Canada often comes down to recognizing what type of business financing loans make sense for your firm. In fact not properly being able to ascertain what type of finance is needed, makes sense, or that your company is qualified for is what it's really all about. Let's dig in.
Part of the confusion around picking the right type of financing revolves around understanding the sometimes subtle ( and sometimes not so subtle !) differences between ' working capital ' , ' cash flow', 'profits' and ' asset turnover '.
We all should be familiar with the idea that profit isn’t cash and many a great company has stumble and fallen around missing that difference. There a classic example of that in the U.S. that is used in text book studies - it revolved around the dept store W.T. Grant. It was a public company, seemed to be doing well (key word = ' seemed ‘) and went under to the surprise of all, including shareholders! The reason - things in paper looked great, assets were huge. The problem - assets weren't turning and there was no real cash. After the company went under the accounting industry went on to invent the ' cash flow ' statement which is not a part of every financial statement.
The reasons that cash and profit don’t equate often come down to the asset turnover we have talked about. As your firm builds up inventory and then sells products on credit terms a huge gap develops between paper profits and cash in the bank.
Companies finance working capital, which then becomes cash via short term credit facilities. In Canada these facilities should be financed via:
Bank credit lines
Commercial A/R financing facilities
Inventory financing arrangements
PO Financing
Tax Credit Financing
Non Bank ABL Asset based credit lines
The ability to turn receivables and inventory into cash is the ultimate measure of success of a business.
The business owner/ financial manager should also be watching cash availability and assets needed to run and grow the business. Here asset financing strategies are key - they include:
Equipment Financing
Bridge Loans
Term Loans
Sale Leaseback strategies
The key point owners/managers need to recognize in acquiring capital assets is that these assets will typically be used over several years, so it doesn’t not make sense to deplete cash and credit lines today for benefits that will be received over time.
Always remember to ensure that working capital and cash flow needs cover your ability to pay down debt and purchase or finance new assets needed in the business.
If you're focused on properly recognizing the right type of business financing loans and asset monetization strategies for your company seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in business funding that matches your needs.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
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 = CANADIAN BUSINESS FUNDING EXPERTISE
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue FinancialSouth Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing With The Intelligent Use Of Experience '
Stan Prokop
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.