Tweet
Survey Says … Your Company Needs Business Finance Working Capital & Cash Flow Solutions
OVERVIEW – Information on business financing in Canada. Knowing when and how to access working capital and cash flow solutions is key to growth and profits
Business financing solutions in Canada require a good knowledge around the ' current assets ‘on your balance sheet. These assets are the key to working capital and cash flow solutions and are tied directly to what the pro's call liquidity. In the SME world that's also known as ' making payroll ‘, paying suppliers, and being up to date on loan and lease payments ! Let's dig in.
In the majority of the business world companies sell their products and services on credit - that of course creates receivables, and the ability to understand how to manage ( and finance ) A/R is key to business success. Your true ' real ' cash flow revolves around generating positive cash from the management of a combo of a/r, inventory and a/p. Check the third part of your firms financial statement - the 'Statement Of Cash Flows ' to see if you are winning or losing .
If you're losing on ' cash flow ' its potential good news! What do we mean by that? Simply that your sales and success require your company to make a higher investment in A/R, inventory and payables. It's of course a different story if your firm is mismanaged, losing money, or has inadequate cash flow financing in place!
One key goal in your working capital and cash flow management is simply planning for what capital you need. At the extreme is the owner’s desire or necessity to bring new equity into the business - in certain cases that just is not possible. Two other solutions exist -
Debt Financing
Financing your current assets
Before you address your current asset finance strategy remember that simply turning over receivables and inventory at a faster percentage that you create them creates instant cash flow.
What types of solutions are available to finance funding needs? From a commercial finance perspective they include:
A/R Financing
Bank business credit lines
Working capital term loans / Merchant cash advances
Non bank asset based revolving credit facilities - Often called ' ABL ' loans
Tax Credit finance - Two areas of tax credit financing exist in Canada - SR&ED and Film/TV
Purchase Order / Contract Financing
Sale Leaseback finance
Inventory Loans
One of the most popular solutions we recommend to clients who can't obtain all (or any?) Canadian chartered bank financing is Confidential Receivable Financing. It's a business credit line based on receivable that allow your business to bill and collect and finance it's A/R with no notification to any third parties, i.e. your clients.
Want to be a ' winner ' in solid cash flow and working capital finance and performance? Our recommendation =
1. Ensure you know what external financing solutions are available for your firms industry needs - some are even specific to your industry
2. Understanding what factors impact your cash flow needs - i.e. sales growth levels, operating performance, capital intensity
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help your firm ' unearth' the right capital solutions.
Stan Prokop - founder of 7 Park Avenue Financial –
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
' Canadian Business Financing with the intelligent use of experience '
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.