Cash Flow / Finance Working Capital Challenges : A Really Complete Explanation On Cash Flow Solutions

Superintelligent AI Is Not Needed For Accessing Reasonable Working Capital & Cash Flow Solutions

OVERVIEW – Information on cash flow solutions for Canadian business. The ability to finance working capital separates winners from losers in business financial success

Cash flow for Canadian businesses and the ability to finance working capital is a top priority for successful companies - of any size - start up, SME, or large corporation. Let's examine how and why companies need and use working capital - and by the way it doesn't require superintelligent artificial intelligence! Let's dig in.

In truth the ability to finance your business on a day to day basis means different things to different owners/managers and how they address the challenge differs often. The essence of successful short term financing for your business is ensuring your ' current assets ' - cash / A/R / inventory are turned and financed properly. The ability to both run your company and plan for growth is what cash flow is all about.

Unexpected cash flow needs always pop up in business - some call it ' seasonal bulges ‘, in other cases it might be new or large orders/contracts. Retailers planning for seasonality is a solid example. The goal? Simply to have enough cash on hand to meet your obligations.

One of the great surprises ( and by the way it shouldn't be !) is that fast growing sales and profits can actually lead to a business failure for the simple reason that working capital needs consume cash as you build up inventories, buy new assets, and grow your a/r . Firms that invest in longer term assets and projects should consider:

Equipment Financing

Working Capital Term Loans

Cash Flow financing

to address their long term plans.


Firms that invest in R&D and who are not public companies should take strong advantage of the governments SR&ED program - and by the way these refundable tax credits can be financed for short term working capital - eliminating the need to wait for your claim.

By the way, it's unfortunate that many business owners/mgrs, most often in the SME sector, seem to think they can use CRA obligations to finance their working capital needs. This often leads to disastrous consequences, given the heavy hand that CRA can hold over a business based on unpaid ' superpriorities'.

A good way to always consider how and why you need to finance your working capital is to simply view the need for positive working capital as the right balance of any debt you have combined with your owner equity. The problem? Companies in the SME sector, including start ups of course often can/t raise equity or debt to the extent they need it.

Mistakes in cash flow financing are often made when firms don't match short term finance solutions with short term needs.

Short term financing solutions to be potentially considered are:

Chartered bank facilities for business credit lines - these open ended ' loans' provide great liquidity at good rates and maximum limits are typically established

Commercial finance A/R financing

Asset based non bank business lines of credit - A solid way to finance assets and generate cash flow based on your sales and assets - it is the non bank alternative to cash flow

SR&ED tax credit financing

PO/Contract financing

If you're looking to finance working capital and cash flow needs with traditional or alternative solutions that make sense for your business seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your needs.

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 100 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN WORKING CAPITAL AND CASH FLOW FINANCING EXPERTISE



7 Park Avenue Financial

South 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 '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.







Stan Prokop