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Brace Yourself ! Working Capital Financing & Cash Flow Solutions You Can Actually Access
OVERVIEW –Information on working capital financing alternatives for business owners and financial mgrs. The ability to tap successfully into either traditional or alternative finance sources is key to long term success
Expansion of your business, via increased sales, new order, contracts etc always demands more cash. There are traditional and nontraditional ways for you to achieve business financing success. And quite honestly our clients are realizing that many non traditional forms of working capital are fact become very traditional based on new alternatives available to finance your business.
Cash flow and working capital is being achieved more and more today by financing strategies that were either unheard of, non-existent, or frowned upon in previous years.
Let's recap some of those traditional and non- traditional sources of financing. If you feel you need assistance to understand the wide variety of solutions available for your firm we strongly recommend that you talk to an experienced, trusted, and credible business financing advisor to ensure you have choices.
Those alternatives:
Sr&ed tax credit bridge loans
PO / Contract financing
Non bank full business line of credit facilities
Bottom line? Therefore creativity and access to capital become a priority one for the business owner to get working capital.
We're told that banks are lending again. If you believe that (sometimes we're not quite sure!) that it is very important to focus on business bankers who are actively and aggressively looking for your business.
Bank financing is one of the lease expensive financing areas, but of course it comes with loan covenants, ratios, and personal guarantees. Those very issues are why many Canadian business owners prefer to consider non bank and independent finance company options.
When it comes to banks we'll mention also not to forget the CSBF loan which in our opinion is, bar none, the best business financing in Canada for companies with revenues fewer than 5 Million dollars. (Also called the Govt Small Business Guaranteed Loan program)
As a business owner you can also consider putting new permanent capital into your firm via your own saving, or a partnership with an associate or strategic partner - i.e. supplier.
We also wish to point out that working capital is somewhat of a generic term, and means many things to many people. The text book tells us that if you take your current assets and subtract your current liabilities you have the magic 'working capital 'number.
That's great but the actual number of ratio you get has no real meaning to you. The solution is simply analyzing your receivable turnover, and your inventory turnover in conjunction with your accounts payable demands.
The textbook calls this your cash conversion cycle - but it bring real meaning to your day to day financing needs as it will show you how long it takes for one dollar to flow through your company from order to cash .
At that point you can consider various strategies to improve cash flow based on your operating cycle of collections, inventory on hand, and supplier terms of payment.
Working capital - it's important, it's available - talk to an expert and understand your cash flow options.
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
South Sheridan Executive Centre
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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