Unlocking Business Capital : Operating Financing 101

Avoiding The Cash Flow Tailspin Via Proper Business Finance

OVERVIEW – Information on operating financing sources in Canada. The right amount of business capital, from the right sources will help guarantee business success and growth

Business capital , well actually the lack of it, can put companies into a highly undesirable tailspin. How does the business owner/financial manager ' unlock' the operating financing he or she needs to run the business? Let’s dig in.

Once companies are past that challenging ' start up ' phase the need for even more capital emerges. That funding needs to come in the form of longer term capital, as well as operating cash. That operating cash provides ' fuel' to your business, allowing it to grow.

Thousands of Cdn firms choose to invest in R&D to better their products/services. If that's your firm and you aren't taking advantage of Canada's SR&ED program for your refund in research and development... well... shame on you! We'll add that those r&d credits are financeable also, and a SR&ED bridge loan helps to accelerate business cash flow recovery.

We're focusing mainly though on ' operating expenses' and how the business finances those needs. Here's where a basic cash flow forecast comes in as essential. Most business owners/mgrs will agree that it's a bit more challenging to forecast ' cash flow coming in' versus expenses, many of which are fixed.

As we have hinted, cash ' inflow' is more about ' timing',

so knowing how to finance your assets and your sales is really the essence of the secret to unlocking business capital.

Where do those funds come from? The most basic sources of funding include:

Owner equity / collateralized personal assets (Businesses that can't demonstrate long term financial potential to outside investors/partners will have to self fund their businesses)

Business credit cards

Term loans / Revolving credit facilities

Trade credit from suppliers

Accounts Receivable Finance (The appeal of A/R Financing, via a bank or a commercial lender is significant. Financing comes from your sales, not from your overall ' business credit' profile)

Govt Business Loans (The federal ' SBL' loan program has recently been expanded and will have appeal to many start ups and early stage firms)

Tax Credit Financing

Equipment Finance


Which of those will work best for your firm? The reality is that it's a combination of matching several of those finance solutions to effectively run, and grow your business.

So, our recap? Simply that careful time should be spend on estimating and understanding your operating finance needs, either from your business assets or from your sales . Consider speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you with external finance needs that will allow you to ' scale' your business.


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

7 PARK AVENUE FINANCIAL = CANADIAN BUSINESS CAPITAL 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