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OVERVIEW – Information on cash flow financing solutions for Canadian companies . Your company needs cash flow for business growth and profits
These days business cash flow financing needs is pretty well right near the top of your worry pile. We're going to cover off measuring the problem, and fixing the problem via traditional and alternative finance solutions. Let's dig in.
Oh, and by the way, alternative is fast becoming traditional, but more about that later!
In talking to clients about business financing and business cash flow we always get the distinct impression they feel their business is unique - and that may be so but the truth of the matter is that the cash flow financing challenges you face are being faced by everyone else in and out of your industry.
You're forgiven for thinking your business cash flow financing challenges are unique, probably because of the mix. What do we mean by the mix? Simply that each h company and industry has difference levels of inventory, receivables, payables, all of which factor uniquely into the working capital challenge. That creates different challenges at different times.
In fact, whether you like it or not, about 80%, yes 80% of all you assets are in receivables, inventory, and to some extent prepaid. That's for most firms, unless perhaps you're in a service oriented business only.
Your ability to ' turnover' these assets is what makes your business successful, or not.
Each industry has different gross margins, and if you have great gross margins then you can withstand a bit less turnover that is required in inventory and receivables. If you are in a low gross margin business turnover is absolutely critical. And you measure that turnover by three key metrics, inventory turns, days sales outstanding or collection turnover, and finally days payable outstanding.
Turnover drives working capital and many business owners kind of know that, but more often than not aren't focusing on improving that turnover.
So, staying afloat. There are a number of cash flow financing solutions that allow you to address cash flow financing for your business. If it was a perfect world (apparently it's not) you would have all the liquidity you need from you bank, but bank financing is always a challenge for business, and in many cases inventory is not part of the financing mix that is available.
There are some great cash flow for business solutions available to help you succeed in Canadian business financing.
That includes:
Financing receivables
Business credit lines from banks or commercial asset based lending
SR&ED Tax Credit Financing
Working Capital Cash Term Loans
Sale Leaseback financing
Most business owners don't know they can access cash flow financing via the financing of Purchase Orders (p o' s) and contracts. They allow you to consider orders significantly higher than you could have ever handled in the past.
And, finally firms with relatively good financial standing can access unsecured cash flow working capital term loans via non bank lenders.
So what’s it all about. We think we have been fairly clear, and hope you agree. It's about understanding your cash flow financing challenges, measuring them via the turnover of working capital accounts, and finally, accessing any one of the number of solutions we have provided.
Speak to a trusted, credible and experienced Canadian business financing advisor as to what makes sense for your firm.
7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .
7 Park Avenue Financial
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
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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