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We’ve Primed The Pump On Canadian Business Financing Alternatives
OVERVIEW – Information on business financing solutions in Canada. The ability to access working capital and cash flow solutions to accelerate business growth and profits is key to a long term view of success
Humorously Donald Trump actually said he invented the phrase! (“Have you heard that expression used before?" Trump continued. "Because I haven't heard it. I mean, I just ... I came up with it a couple of days ago and I thought it was good. It's what you have to do."
But the term is most often associated with 20th century economist John Maynard Keynes, a giant of the field and a favorite of liberals who favored government spending.
Access and mgmt of your working capital and cash flow play a key role in business financing and your firm's growth and overall well being. No one ever argues with us on that one.
Your ability to get financing on items such as fixed assets, a/r, and inventory will ultimately depend on how successful and also how fast your company can grow .
Clients are somewhat amazed when we tell them that we can pinpoint the exact time when they will stop being successful! What do we mean by that? Simply that you have a great little tool to determine when you need that extra capital in your business. Most small and medium sized businesses haven't heard of it, we can assure you larger more sophisticated corporations have a total handle on this one.
So what’s the tool - it's called the Sustainable growth ratio and it's a simple formula that shows you the most your firm can grow without bringing in new capital. For example, if you want to get a shareholder return on your total capital in the business of 20% you can re invest all your earnings and keep your relative overall financial position the same. Want to grow faster, then access more outside capital. Simple as that.
However accessing more capital from the viewpoint of our clients is either difficult or undesirable - Most owners don't want to reduce or dilute their ownership interests, etc.
The choice? It's simply monetizing your business financing assets such as receivables, inventory and unencumbered assets and creating working capital and cash flow via asset turnover.
You create cash flow financing internally be addressing how you both manage and turnover receivables, inventory, and accounts payable.
Accounts payable you ask?! Yes, simply because as you slow your payables you generate real cash flow progress. Naturally there is a fine line here between generating that cash and alienating your valued suppliers!
We never want to be accused of talking about the problems and not the solutions, and we mean real world solutions, not textbook solutions to Canadian working capital financing.
So let's recap the solutions and why and when they might make sense. The easy, quick, go to solution is working with a commercial banker to determine if you qualify for bank financing from an operating line of credit point of view. We surmise that if you have all the access to bank credit you need you wouldn't be here reading our solutions proposed!
Other real world alternatives for cash flow financing in Canada, These include :
A/R Financing
Working Capital Term Loans
Equipment Leasing
Sale leasebacks
Asset based non bank lines of credit
SR&ED Tax credit financing
Mezzanine financing
P O Finance
In summary, we spoke of your desire or inability to attract long term capital to your business, the solution being short term working capital decisions around how you finance on a day to day basis.
Speak to a trusted, credible an experienced business financing advisor on how to access the Canadian business financing you need. Today!
7 Park Avenue Financial :
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
Email = sprokop@7parkavenuefinancial.com
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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