Inigo Montoya’s Guide to Cash Flow Financing : The Business Working Capital Loan demystified !

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New Rules For Working Capital Finance In Canada


Information on the concept of cash flow in business financing in Canada . What type of working capital loan makes sense for your firm?

Have we got a story for you! Actually it's not even a story, it’s a fairy tale. A fairy tale? Truth to be told it’s actually been told already - we talking about the movie ' THE PRINCESS BRIDE ' which some might associate for kids, but it's actually on a few different levels.

A character in the movie is Inigo Montoya . So, Inigo Montoya? The Princess Bride? Oh, yes and cash flow financing! What in the heck could they have to do with each other? Let's explain.

In the movie our friend Inigo is known for always saying ' I do not think it means what you think it means ‘. That's our premise today on ' cash flow. With apologies to Inigo Montoya.


Business cash flow financing. We hear that a lot, clients want to talk to us about it a lot, and most of all, we hear about it in an inconceivable number of ways. Cash flow and its sister, working capital can be used in very direct ways or obscure ways. The offerings that bring about cash flow financing solutions are both direct and indirect.


A good bottom line for us to focus on is that cash flow is a crucial way of determining your company’s health. So that is why it’s a good way to get a handle on processes around cash flow in your company, our terminology (here we go again with Inigo) as well as what internal and external ' players' can affect your cash flow performance...

As we said, cash flow, as well as profit are what most people would agree are the two most important measurements to determine if Canadian business owners and financial managers are winning. The reality is though that while you might look at those two measurements over, say, a yearly period they are quite different and have different uses or meanings to you, the business owner or manager.

Suffice to say that when you are looking at operational issues and challenges the focus is often more clearly on cash flow and working capital as opposed to profit. Ironically we find that when we talk to people about their stock investments in individual firms they talk about profit more than cash flow... we'll never figure that one out.

Should you be surprised when you are doing well, (from a profit perspective meaning of course expenses were less than sales) that you are out, or short of cash? Naturally if you could immediate ' cash flow ' or monetize all that revenue you wouldn’t be in this position, right.

The three elements of your cash flow statement are financing, investment and operations. They affect cash flow in different ways. Challenges arise when you find you can't invest what you need in your business or that you need to take on more debt.

So, cash flow. As we said, there isn't a day when we don't hear about a different meaning or interpretation of the term. In a way they are all correct, it’s about managing your cash inflows, budgeting your cash flow, granting credit to clients,

Are their solutions to your working capital loan or monetization challenges in Canada? You bet there are. They include turning that revenue and those receivables and inventory into business working capital, either via a loan or direct monetization. Solutions include receivable finance, inventory financing, sale leaseback finance , asset based lending, confidential invoice finance, tax credit monetization, and a working capital term loan.

Speak to a trusted, credible and experienced Canadian business financing advisor for solutions that make sense to you. With apologies to our good friend Inigo Montoya!

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com


Click HERE for 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 .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
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