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Looking To Get Creative On Business Financing Cash Flow Solutions ? We’ve Got Ideas & Solutions !
OVERVIEW – Information on business cash flow financing in Canada. The growth finance funding you’re looking for come from traditional, alternative and even internal solutions that are used by … your competitors
Business cash flow financing , in the minds of many business owners and financial mgrs often would seem easier to fix with some sort of ' patch ' - that unfortunately probably isn’t available ! So it's sometimes necessary to get creative, as well as researching your growth finance options. Let's dig in.
The important thing to remember is that depending on what type of lender you choose there are in fact a lot of both viable and, more importantly accessible funding possibilities.
One more thing - Are you looking for either debt capital, aka ' loans’, or would cash flow / asset monetization solutions get you to the goal line.
While we might seem like we constantly preach ' capital solutions ' from the Canadian SME FINANCE marketplace owners/mgrs should never forget how to generate internal cash. That’s done by managing your receivables and inventory and payables to the point where you're collecting A/R promptly, turning inventory, and slowing payables (without alienating suppliers).
Depending on what industry you are in you also have the ability to ask clients to prepay, or, as effective, get special payment terms from suppliers.
Companies that have an R&D investment can utilize SR&ED tax credit financing as a bridge loan to cash flow their refundable tax credits.
Debt solutions for business financing include:
Govt Guaranteed Small Business Loans
Term Loans
Equipment Loans / Sale leasebacks
Cash flow solutions include:
A/R financing / factoring
Asset based non bank business credit lines
Inventory Financing
Tax credit financing
Unsecured Cash Flow Loans
Merchant Advances
Equipment Leasing / Sale leasebacks
The advantage of many non traditional financings include flexibility, non dilutive nature of your equity, as well as many prepayment provisions that do not come with traditional bank type financing
Knowing how much funds you need and for what purpose goes a long way toward ensuring you can cover your cash flow and growth finance needs. Here the ability to plan for times of ' bulge ' needs or fixed asset investment is the key to ensuring right financing/right time.
Rarely will firms in the ' SME ' space be able to boast they have ' too much cash ‘ !
Stan Prokop - founder of 7 Park Avenue Financial –
http://www.7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
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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