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What Would Happen If Your Business Didn’t Have Canadian Business Financing Solutions? You Don’t Want To Know!
OVERVIEW – Information on working capital and cash flow solutions in Canada . Where to access the funds and cash you need for lending that makes sense from a business financing perspective
Typically business owners/financial mgrs looking for SME COMMERCIAL FINANCE have heard all the buzzwords - cash flow, cash is king, liquidity, you name it, and we’ve heard it. To some those are text book terms - we prefer to focus on the ' real world ' where we live and work and do business. Those daily requirements for managing assets such as receivables and inventory are what it's all about in business survival.
What many business owners and financial managers fail often to realize is that your sales backlog, new contracts, , and your other assets in the business often mask the essence of our topic today, with is liquidity and cash flow to meet your daily financing needs .
Shocker! You can be profitable, have assets, and have great prospects but you inability to manage and finance receivables and inventories and payables leave you in a real cash flow crunch. ‘Cash flow crunch ' - isn't that one of those text book terms?!
The most impact you can make on this problem lies in three of your accounts - they are receivables, inventory, and payables. Payables simply because your ability to slow or delay payables increases cash flow, it's as simple as that. That though, needs to be balanced by maintain proper supplier relationships.
So the decision point comes when you have to decide what your funding needs are and how you will achieve them. Short term? Long Term? Your timeframe becomes important. Borrowing on a long term basis for short term needs never works, and time and time again we meet clients who have ' mismatched ' short term needs with long term alternatives .Don't do that!
We think we have you up to speed now on the problem - les focus on the solutions to the need for that working capital, where those funds come from, and what lending sources can assist you in that cash flow challenge .
Monetizing current assets, not borrowing and incurring long term debt is often a great solution .The one exception to this is a cash flow term working capital loan that in some cases makes sense because you are injecting permanent working capital into the business.
The real solutions to the working capital cash flow challenge revolve around the following - a bank operating facility that margins your receivables and inventory.
Can any firm access bank credit? Not really. Many firms either don't have the financial profile to access this type of facility, or in some cases banks simply don't lend against inventory, or you are often ' capped ' in this regard.
The solution? Asset based lenders who offer asset based lines of credit; a combo working capital financing and cash flow facility that margins your receivables and inventory, but at higher rates than the bank.
Our favorite options for smaller challenged firms is confidential invoice discounting - your ability to finance all you invoices but retaining full billing and collecting ability. Highly recommended.
Another solution? Purchase order financing - This comes at a higher cost but allows your firm to take on significant business it otherwise might have to forsake.
So, there you have it. To recap our bottom line (business owners love the bottom line!) you need to match your financing mix to your own business needs. Solutions you may not even have heard of are available to you now, and your competitors might be using them already.
Speak to a trusted, credible and experience Canadian business financing advisor - identify the need, and implement your working capital solution 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
' 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
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