Working Capital and Business Lending in Canada Without the Voodoo!
OVERVIEW – Information on alternatives to working capital financing needs in Canada. Accessing the right business lending improves your firms success in growing sales and profits
There seems to a lot of ' optimism ' in small and medium sized businesses - we hear and read about that every day. But it's tough to sift through all the smoke and mirrors, dare we call it voodoo? and get a sense of where working capital and business lending is at here in Canada.
Optimistic? Most business owners & financial mgrs these days are in fact bullish about their businesses. In some cases though external industry and competitive and economic issues have some folks hanging on for life!
If you are forecasting and planning your cash flow needs, say on a 12 month basis your biggest challenge is often how you do get that liquidity squeezed out of receivables, inventory, and purchase orders and contracts. That has been and still is the real challenge - it's all about that cash flow is king guy!
When looking at your cash flow and financing needs you need to focus in on several key issues and determine how they fit together - typically those issues your ability to collect your receivables and how you are financing them, what your sale growth is going to be, and what type of longer term capital do you need for things like equipment, real estate, etc. Naturally all that has to be benchmarked against how you are currently financing your company.
Looking at new equipment while at the same time conserving working capital? In certain cases you might have to spend a considerable amt. on new assets to keep up with the competition. That's where equipment/lease financing is key to minimizing cash outlay while keeping your asset needs up to speed. Typically new assets help grow sales and profits.
There are great solutions for working capital via creative business lending in Canada. When we meet with clients they typically are looking for one solution, the ' holy grail' so to speak. In reality we show them that a number of solutions, possibly combined, can get you where you want to be in Canadian business financing.
Those solutions include receivable financing. Heard about factoring but not sure you like how it works... then consider confidential invoice financing... allowing you to bill and collect your own receivables.
Don't also forget to investigate two sources of govt financing - One is the Canada Small Business Guaranteed Loan program, which finances a combo of equipment or leasehold needs. Those companies investing in R&D should take advantage of SR&ED financing. That allows you to monetize your SR ED claim, without waiting for the federal and provincial governments to cut your cheque.
Have contracts upcoming, worried about financing them. Investigate purchase order and inventory financing... despite the myth it really is available!
Finally, as an alternative to traditional bank financing consider an asset based lending facility... it combines the power of receivables, inventory and equipment... with your firm borrowing against those assets on a daily basis as you need the working capital . It grows automatically as you grow sales.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash and loan needs.
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
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
Stan Prokop
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