Managing ( And Solving ) Business Cash Flow And Receivables And Inventory Finance Challenges In Canada

Tweet

What is the Key to Managing and Understanding Business Cash Flow?


Information on business cash flow solutions in Canada for business owners facing receivables and inventory finance challenges

Business cash flow and working capital. U.S. financier Harold Geneen once said that you can make almost any mistake in business and be forgiven or remedy that, but ' when you run out of cash they take you out of the game ‘. W e agree!

So therefore the financing and management and solutions involved in receivables and inventory finance are key to the success of the Canadian business owner and financial manager.

While profit is the measurement of the income statement many challenges and problems arise when you are not managing cash and working capital. It's a constant juggling act, don’t you think? There is a great analogy about how you juggle the bowling pins of business to generate profits but it’s the spinning knives that determine cash balances and the pitfalls that come from that. It seems we're full of sayings and analogies today...

Busines cash flow is of course the life blood of your company's operations. The difference between cash and cash flow is essentially the difference between your balance sheet and income statement. It's really a presentation of dollar amounts at any point in time, plus the changes in those dollar amounts.

It the changes in your working capital accounts that really determine your cash flow.

While sales generate cash, but you use that cash to purchase goods and services, pay your staff, rent, utilities, loan payments, etc.

It's a constant balance act as every business owner knows and the alternatives can be very costly. You can of course increase your own equity in the firm, but that’s costly and means giving up some measure of control. Asset sales are also, generally, not desirable.

So we have made it clear that you can increase cash by one of several methods:

1. TAKE ON DEBT

2. INCREASE OWNER EQUITY BY OWNERSHIP DILUTION

3 .SELL MORE AND COLLECT MORE - Convert non cash assets such as A/R and inventories to cash

4. REDUCE COSTS

Suffice to say that number 3 is our favorite!

When your sales are growing and you turnover your receivables in a proper manner you can avoid a cash crisis. If you don’t have a proper inventory finance of receivable financing facility in place vendor relationships can get severely strained.

There are solid financial solutions for firms struggling with profitability or for those Canadian business owners and financial managers unable to raise equity. Bank financing might be available, but many times it is not. Even growth, as we have said in the past, can be a double edged sword. Great companies disappear when their cash reserves or financing procedures become insufficient to finance their growth.

In Canada solutions to business cash flow, receivable and inventory finance are abundant. They include asset based lending, equipment finance, sale leaseback strategies, receivable and inventory finance facilities, and even the monetization of tax credits.

Speak to a trusted, credible and experienced Canadian business financing advisor on how you can manage, and solve busines cash flow challenges.






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

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