How To Finance A Business : We’re Talking ‘Local & Organic ‘ !
OVERVIEW – Information on financing a company in Canada . The right business loans and cash sources are a combination of external debt and proper mgmt of company assets
Financing a company in Canada is, many top experts would say, an art as well as a science. So when it comes to business loans and cash sources we're making the case that it might make sense to go ' local and organic ' let’s dig in.
Local and organic? Isn’t that about vegetables? Well in our context we maintain that it's all about being about looking inward at your financial statements (that’s the local part) and then ensuring cash sources are available to grow your company ' organically ‘.
The pro's call this ' sustainable growth rate ' and it simply means that you're able to actually calculate how fast you can grow without raising external financing, And at some point you will need ' good ' business loans and asset monetization strategies to move forward when financing is required. (Naturally you can grow by merger and acquisition but that's another story)
Financing a company is all about getting the cash you need to either start or grow a business. Three cash sources are available - debt, equity, and sometimes misunderstood: monetizing and ' cash flowing' your existing assets such as receivables, inventory, fixed assets/equipt.
Many business owners / financial mgrs don't always fully appreciate how much their financials tell them about the company's financial needs and prospects. They don't realize the ' power ' they have to affect cash through good credit extension, collecting receivables, controlling expenses, and turning inventories.
The ability to at least basically understand how your cash flow operates , where you are spending, and how outside financing is being used/consumed is key . An example: Simply slowing down your payables will increase cash flow - but there are certain risks that come with that strategy.
So how can the owner/mgr actually affect the overall financial health of a company? Knowing what your assets are really ' worth ' is also key. The quality of receivables, inventory turns, and the true value of your fixed assets leads to many external financing strategies that can help you grow cash and profits ' organically.
Asset monetization strategies, properly used, are key to good 'organic ' financing. Examples include:
Bank credit lines
Asset based lines of credit
SR&ED Tax credit financing
Sale leasebacks
PO / Contract finance
Strategies we've just named bring no debt on to your balance sheet and enhance cash flow and hopefully... profits. Real world financing always comes back to... you guessed it... Cash!
Knowing how you can extract internal (‘organic ') cash, and then complement that with good external financing is how you'll measure if your business is headed in the right direction.
Looking for the ' best ' types of business loans and cash sources? Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you in financing a company...properly.
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 :
http://www.7parkavenuefinancial.com/financing-a-company-business-loans-cash-sources.html
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
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
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