Everything You Thought You Knew About ‘ Business Money ‘!
OVERVIEW – Information on business cash flow and working capital funding in Canada . Do finance and money needs remain a top priority
Funding working capital needs for Canadian business comes with both legal , often personal ramifications, and of course costs. Some call it business cash flow, we can even refer to it as ' business money ' - The reality is that the movement of money/funds through your company has some dramatic implications. Let's dig in.
What’s bugging you ? As one top expert recently put it business owners/ financial mgrs find themselves constantly ' bugged' by the cash flow financing challenge. While the might be comfortable with sales and those ' paper profits' their ability as owners to access real cash for corporate and personal needs becomes a constant challenge.
One' rule of thumb' in business is to always have a buffer against unexpected cash needs. Not having those creates constant pressures that come from suppliers, your bank, even staff.
Bank business lines of credit are of course one of the optimal ways to achieve cash flow needs. Some clients we meet are actually in arrears with CRA due to those liabilities being ' rearranged ' for other purposes. That strategy by the way has some serious ' personal guarantee ' issues and is not recommended.
Many business financing alternatives such as:
A/R Financing
Inventory loans
PO Finance
SR&ED tax credit loans
can alleviate ' bulge' needs in business cash flow. Whether ' temporary' or ' seasonal' it's good to know your alternatives.
Stats tell us that a large majority of business owners in Canada spend more each subsequent year on replenishing or purchasing fixed assets. Here's it good to understand your equipment lease financing options as those capital expenditures can take a large bite out of working capital if allocated improperly.
Those ' CAPEX ' needs will always arrive with three questions -
How much can we spend on new assets/technology?
How much internal funds can be used for asset purchases
What outside financing is available?
What then are some solid key considerations in understanding your business cash flow?
They include:
Understanding your real profits
Why are receivables and inventory going up without the same increases in sales?
What options are available to finance new assets
The whole area of working capital, and in particular cash flow is a very misused term as its often neither real ' cash ' , or real ' flow '! If you're looking for straight answers on ' business money ' and company financing techniques and solutions 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 funding your business properly .
7 Park Avenue Financial
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 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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