Are We There Yet? Who’s Driving.. Your Cash Flow
OVERVIEW – Information on the financial cash flow formula considerations that make successful business financing in Canada work . It’s all about those cash flow drivers
A Financial cash flow formula? Business financing in Canada depends on putting a proper capital structure and ensuring owners/mgrs understand the factors that shape your business financing needs. That allows you to identify proper business finance solutions. Let's dig in.
Think about it. What does in fact determine the type of business financing you need (and how do you achieve that?!). Some key factors you need to consider are:
What you will use funding for
At what stage of life is your business in (start up / growing, mature/distress)
What types of business financing does your particular industry demand
How do owners feel about debt / equity and asset acquisition and monetization?
Is your industry popular, or ' out of favor' with lenders
Naturally private,' non public' companies have different views of what happens to cash and profits. How they address those views determines their business finance direction. If there is one commonality it's that everyone, (including the clients we meet daily) wants ' inexpensive ' financing. ' Cheap' financing , also known as Canadian Chartered Bank finance !... is a lot easier when your firm is growing at a normal rate, has good cash flow, profit margins, and low debt. Companies that have challenges in some (or all?) of these areas will not be eligible for ' low cost ‘funding.
The ability to plan your cash flow needs in advance of a crisis is what successful business is all about. It's also critical to spend some time in understanding the concept of matching proper funding to specific uses.
Some examples? Acquiring assets through proper use of equipment lease financing. Another requirement is daily operating needs re payroll, suppliers, fixed expenses, etc. Here is where the proper BUSINESS LINE OF CREDIT comes into play. In some cases your firm might be investing in R&D. Many firms utilize SR&ED financing for cash flow needs to help recover off funds spent on research.
The solutions to cash flow formulas that work are numerous - but which one works for your company. They include:
A/R Financing
Inventory Loans
Business credit lines - bank and non bank
Tax Credit Financing ( sr&ed )
Equipment Leasing/ Sale Leasebacks
Cash Flow Loans
Working Capital term loans
So, are we there yet? 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 understanding, and solving, your cash flow needs.
Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :
7 PARK AVENUE FINANCIAL = CANADIAN CASH FLOW FINANCING EXPERTISE
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
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
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