Wednesday, August 28, 2019

The Purchase Order Financing Plan to More Sales

24 Hours to Improving Purchase Order Financing

What is Purchase Order Finance ?

That's a common question from our clients who haven't fully understand the availability of P O financing and inventory finance in Canada. It's certainly an underutilized strategy when it comes to financing more sales when your firm has financial challenges .

Inventory is a key asset in any business , unless of course you're a service business. Turning over and funding tht inventory are key to the profits you generate from sales . So what then are the costs and options when it comes to dealing with purchase order financing companies?

Purchase Order Financing: A Killer Way to More Sales

More sales is always a balancing act in business ; no inventory or improper levels of products won't allow you to fill those large new orders and contracts. Excess or poor inventory can drain cash flow.

Both Canadian banks and independent commercial finance companies finance inventory needs. Commercial finance firms, non bank in nature are often best to finance inventory because it is their business to understand your products and services. That expertise translates into greater borrowing power !

Purchase Order Funding for Better Faster & More Sales

It is important to understand the key players in the Purchase Order funding cycle . Simply speaking they are your firm, the borrower, the finance company, your supplier/suppliers, and finally, you guessed it- your customers.

Specialized services exists for your orders and contracts . Firms who are generating new contracts and large orders have a challenge in financing them because cash flow is often limited. Therefore PO Funding is a way to finance your current growth.

This type of financing makes payments to your suppliers , allowing you to receive product and deliver services. Your receivables turn into cash and the cycle is complete.

Inventory and P O finance works best when there is a holistic approach to collateralizing the purchase order , the inventory, and then the receivable arising out of that order. Don't forget to also investigate the asset based non bank line of credit, which also allows you to finance all your ' current assets ' under one umbrella.

Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success to ensure you understand solutions available to inventory and p o financing for long term sales and profit growth.

Tuesday, August 27, 2019

How to Use The Short Term Working Capital Business Loan For Business Capital

How to Get Ahead in Business Financing with The Short Term Working Capital Loan

Short term business capital loans for Canadian business is all about having to make a choice in your business financing strategy. Business owners and financial managers want choices in their business . Those large Bay street type firms have all the financing it needs it seems, but what about the little guy. Enter working capital lenders !

If your business can't obtain any, or enough cash flow then the working capital loan might be the solution you are looking for . The industry is very popular now and it seemed to rise up out of the popularity of what was known as Merchant Advance type firms who often help finance retail firms, restaurants, etc.

Our clients always ask why then can't get get the same type of funding from their bank. There are several reasons , and it's not that big of a mystery.

The working capital lender is looking mainly on your sales revenues from a size perspective . Typical working capital loan rates are reasonable when you consider they are short term in nature and are not collateralized by the assets of your business. That's a big thing when you differentiate it from bank financing . Our friends at the banks seem a bit obsessed with ratios and covenants and guarantees!

Although bank financing is cheaper it is simply isn't available for all firms looking to borrow capital.

Working capital loan rates are based on short terms , ie 1 to 18 months, and typically are for up to 10 to 20% of your annual sales.

Business capital loans such as 'merchant advances' have been popular for some time now . The time to fund is very quick and is generally one of the more popular forms for alternative financing these days. In effect you are monetizing future sales , and that can be a powerful business finance strategy.

24 Hours to Improving Short Term Working Capital Loan

Funds from business capital loans allow you to take supplier discounts, purchase inventory , increase your a/r and in inventory turns. Overall its a solid return on equity strategy.

Only you as business owner or financial manager can decide if this business funding is right for your firm. But now you've got a choice you might not have been aware of.

Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success to ensure you choose the right method of financing when you're at the crossroads!

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

Click Here For 7 PARK AVENUE FINANCIAL website !

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

Sunday, August 25, 2019

Most Important Business Cash Flow Financing Success Factors

How to Get More Capital Business Cash Flow Financing

Business cash flow is a key area of your company that requires solutions, and in that aspect of your business it's all about timing. Timing is everything when it comes to solving the cash flow conundrum.

We will examine some real world solutions around a company like yours that is trying to grow it sales revenues - which is what it's all about for many business owners and entrepreneurs.

To begin with the business owner and financial manager must be able to understand his or her's cash flow cycle '. The concept of timing has therefore just kicked in ! Your company produces goods and services and a specific amount of time has gone by as you now generate revenues via invoice clients and.. waiting for payment!

Not the biggest secret in town that the whole cash cycle varies between industries and even in companies withing that industry. So whether your total cycle is 30 days or 120 days the effects of timing require certain activities to be financed - either internally or externally through small business cash flow financing in the SME sector . ( Small to medium enterprises )

Those timing issues we speak of make or break your business. As an example your firm must buy supplies and inventories, pay wages and salaries, and then wait for delivery and acceptance of those goods and services And finally comes that payment from clients . No secret that that whole process can take anywhere from 30-120 days, again depending on yoru industry and client practices.

How can you finance those shortages? You need to take a look at your balance sheet and determine where you can extricate liquidity .

Quick Tips to Help You Find the Best Business Cash Flow Financing Company

Financing business cash flow is all about managing, and monetizing your sales and assets .

Solutions include:

Receivable Financing

Commercial bank lines of credit

Alternative asset based business credit lines

Short term working Capital Loans

Term Cash Flow loans

Sales leasebacks

Proper use of equipment and leasing strategies

Monetizing tax credits such as the SR&ED credit

Purchase Order and Supply Chain Financing

Use one of a combination of these solutions we have noted to manage the patterns of your cash flow finance business needs.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success who can assist your with putting together a solution that addresses the timing of cash flows and capital in your business.

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

' Canadian Business Financing With The Intelligent Use Of Experience '

Thursday, August 22, 2019

Questions On The Best Business Working Capital Loan ?

Get Rid Of Your Cash Flow Challenge Once and for all !

What is the best small business working capital loan for my business ? We get that question a lot and many smaller and even medium sized firms look for solutions to their cash flow challenge ?
.

Unfortunately the reality is that many smaller firms don't have the financing alternatives of the big guys. Many firms who sell on credit use the concept of either bank lines of credit or alternative forms of financing such as A/R factoring. These enhance balance sheet and cash flow liquidity .

These are a bit more sophisticated forms of financing, not totally out of reach for everyone, but in some cases not the sort of finance that a firm might need. Ask any business owner and you'll here it's an effort to get a bank credit line, let alone increase it.

Enter short term working capital loans, which have become hugely popular. They convert sales into working capital . albeit at a higher cost than banks . It's simply a form of using your sales revenue as cash based on historical sales. They are typically short term loans with a year duration, and have very flexible repayment arrangements based on an analysis of your cash coming in.

As we have noted smaller firms aren't typically able to enter into long term loan arrangements - they have lower costs but come with stringent credit criteria.

If used on a regular basis the process generates ongoing working capital and relieves the day to day stress of managing cash. In some cases we can make the case that smaller firms have more flexibility in setting up short term working capital facilities. The facility can be used on a one time basis, or periodically - perhaps covering seasonality of cash in your business.

This type of loan can be set up in a very short period of time at at extremely low or no set up cost.

The Best Reason To Utilize A Short Term Business Working Capital Loan ?

Simply that business cash and liquidity are top of mind for every owner or business manager . Seek a
trusted, credible and experienced Canadian business financing advisor with a track record of success to assist you in this solid method of cash flow financing your small or medium sized business. You’ll be cash flow positive within a week !

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

' Canadian Business Financing With The Intelligent Use Of Experience '

Tuesday, August 20, 2019

Asset Based Finance Works Like A Charm

How to Use 'ABL' Asset Based Financing For Cash Flow Challenges

What is asset based finance ? That's a common question we bet from clients seeking basic understanding around asset based financing - they have heard the term, and also that it pretty well ranks # 2 , second only to traditional bank type financing.

Having an advantage in business is always good - and ' ABL ' (
asset based lending ) is fast becoming a financing of choice for Canadian business owners and financial mgrs.

ABL tries hard, and when it comes to provide commercial business credit lines that are essential to running and growing a business it's all about your assets and your sales growth.

You use the value of your working capital assets to generate borrowing capability.. on an ongoing basis.

This type of finance doesn't rely on all the ratios and formulas that come with our good friends in Canadian chartered bank commercial lending. It's in fact your company that determines your borrowing ability based on things like receivables and inventory , and that sales growth we mentioned. As sales grow so can your credit line - pretty well automatically.

Asset based credit lines tend to be there in good times and bad - many companies that are in a bit of a downturn or restructuring should also consider this type of credit line. So you business can be in hyper growth and still get access to the business credit you need.

Many companies that use this type of financing tell us that their access to credit lines has in some cases even doubled or tripled . It's pretty well 99% of the time a larger borrowing facility that you could achieve elsewhere. Many commercial lenders in ABL have a lot of industry experience in various segments of the economy.

We can't fail to mention that in some cases your bank might consider an asset based financing ABL, but it's somewhat ironic that these businesses operate within the Cdn banks and compete with bank commercial lenders.

The Asset Based Finance Plan to More Cash Flow

Typical ratios of borrowing capability are 90% of receivables and 50% or more on inventory . Don't forget also that fixed assets and even real estate can be thrown into that formula!! The cost of financing in ABL is a wide range, and depends on your facility size, overall credit profile, etc. In some cases it can be very competitive to bank rates !

From your businesses perspective you must have the ability to report regularly , at least monthly on your receivables , inventory , sales growth , etc . That's because the collateral for your credit facility are those assets and sales.

Canadian business owners should check out this newer form of business financing . Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success.

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

' Canadian Business Financing With The Intelligent Use Of Experience '

Sunday, August 18, 2019

How To Get Financing For A Business

Why Your Business Financing is Missing the Mark (And How You Can Fix It)

More Cash Flow With Asset Based Lending

How to get financing for a business ? That's a question that comes up all the time with our clients, and they want solutions now, not down the road! One ' size fits all' solution is asset based lending . These 'ABL' techniques and solutions could provide all the financing your firm needs in today's compeitive environment.

Business owners and financial mgr's are looking for finance that grows with their business. As it became difficult to get all the financing they needed after 2008's recession many business owners investigated the ABL solution.

Typically, ( but not always ) asset based finance is non bank in nature - it's offered by specialized commercial finance co's. It helps businesses access more working capital and cash flow - typically "Job 1 " for any business.

If your company has long term debt , and is looking to avoid taking on more debt, payables are rising, and you're waiting long to collect receivables asset finance is a very logical solutions. Ironically many business owners and financial managers in some cases haven't heard of this type of
business financing .

In the ' old days ' ( we remember them well ) abl was often touted as a financing of last resort. No longer!! Using it can grow your business, expand into new markets, buy a competitor, and oh yes, just survive day to day!

In it's purest sense asset based lending is often just a revolving line of credit that allows you to borrow against all, repeat ' all ' of your assets. Those typical asset categories include receivables, inventory and fixed assets.. even real estate if your company occupies and owns it's own premises.

THE ABL DIFFERENCE ?

Simple - You can borrow significantly, on an ongoing basis, against those assets . Smaller ABL facilities tend to be in the 250k range, but they can easily run into the millions. Many large corporations use ABL also by the way!

By now you may have picked up on the fact that as your business grows you can borrow more on an ongoing basis, as your assets have grown also - with virtually no upper limit.

While Canadian chartered banks focus on ratios, covenants, personal guarantees and high net worth the asset finance solution focuses.. you guessed it.. mostly on your business assets.

ABL comes in different flavors and can be specifically based or full service against all assets . That allows you to not postpone business success! Can you afford not to access this solution ?

Speak to a trusted, credible and experienced Canadian business financing advisor with a track record
of success on achieving benefits of ABL finance.

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

' Canadian Business Financing With The Intelligent Use Of Experience '

Thursday, August 15, 2019

What is Financing Working Capital? And Why Should You Care?

Financing Working Capital for Better and Faster More Cash Flow

Financing working capital needs for Canadian business owners requires some ' real world ' info on the capital you need to finance day to day operations . Your competitors might well be using some strategies you might not even be aware of .

Business owners and financial managers constantly try to avoid the ' liquidity crisis' that can cripple a business . As challenging as it might be for non financial folks to understand different ratios and the structure of their balance sheet those type of issues must be understood and dealt with. That allows you to have ' predictable cash flow '

How does the financial mgr of a business address cash flow, and what is a reasonable working capital loan interest rate ? Answers are easier than you think - things like speeding up collection of your receivables, managing payables and supplier relations carefully, and ensuring you don't have excessive long term debt .

Finally you have understand how you can ' monetize ' your balance sheet to deliver on financing working capital needs. There are a number of ways finance folks have of explaining ' cash flow ' ; a common one is current ratio, simply the relationship between your short term liquidity and your short term obligations;

The reality though? Receivables can be slow to collect and inventories can sometimes turn slowly . If your sales are going up and you are on top of collections and payables your have real operating cash flow.

How then do you monetize the balance sheet - that's what our clients wan to know! They aren't looking for classroom lectures on ratios !

So those solutions ? They are more thank most business owners and financial managers might think. They include:

Traditional bank financing

A/R finance

Asset based lines of credit

Tax Credit Financing ( Typically SR&ED credits )

Sale leasebacks

Inventory financing

Short term working capital loans

So our bottom line? Simply that staying focused on turning over your current assets and financing them properly will accelerate your cash flow and provide the solution for your working capital needs.

It's critical to monetize your balance sheet in the right way, understanding the costs of these solutions, as well as how they work on a day to day basis.

Speak to a trusted, credible and experienced Canadian business financing advisor and has a track record of success.

Don't underestimate the need to address these business financing
issues today.

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

' Canadian Business Financing With The Intelligent Use Of Experience '