Business Financing Solutions : Distress Workout Finance Alternatives

S.O.S. Financing Needs – Answering Your Call For Business Finance Help

OVERVIEW – Information on business finance workout alternatives. The ability to identify financing solutions when your business is in, or on the verge of financial distress is key to long term survival

Distress financing solutions are required when businesses find themselves in financial jeopardy. Often called ' workout finance alternatives ' it's a case of your company sending out that S O S call for help , that term being of course the Morse Code for assistance. Your ability to take charge of the ' workout ' and implement a proper cash flow and capital plan is key to long term business survival. Let's dig in.

The ability to understand what your firms financial alternatives are also comes with the obligation of knowing where these resources are. Being unprepared at a time when your business financing needs are critical will only lead to failure.

While Canadian chartered banks are the obvious ' go to ' for capital and cash the reality is that companies exhibiting financial stress or challenges are not on the bank radar. Banks are of course ' deal makers' but the deals they make are based on the premise that money will always be safe as it can be- so that rarely if ever includes start ups, early stage firms, or companies in financial need. Assets, collateral and cash flow are their focus.

For larger firms exhibiting financial challenges ' equity capital' is often the goal. That however is rarely part of the small to medium (SME) enterprise solution. In some cases financial challenges come out of internal problems, in others it's external - i.e. competition, seasonality, economy, etc. Bottom line, having a clear understanding of the problem helps identify the solution.

While many firms can be financially ' fixed ' with one type of financing the fact is that quite often a cobbling together of different finance alternatives are in fact ' the fix '.

For the majority of business recovery finance solutions we usually turn to the balance sheet. That requires a clear understanding of where the business assets are and what they are worth. Typical asset categories are receivables, inventories, fixed assets/equipment, and in some cases real estate. Assets that aren’t financeable include goodwill and patents, R&D, etc - those two are rarely part of our fix.

True working capital solutions will come from financing that involves current assets. Typical solutions are a reworking of A/R financing coupled potentially with inventory loans...

Common working capital fixes include:

Receivable finance
Inventory financing
SR&ED refundable tax credit finance
Non bank asset based lines of credit
Sale leasebacks


If you're looking for help in identifying and negotiating workout finance alternatives for your businesses seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help answer that S O S call for assistance you might need to make.



Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

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 BUSINESS FINANCE 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