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Looking For A Financing Option For Your Company?
Business financing challenges? We hear about that a lot from clients at 7 Park Avenue Financial . It just so happens we've got some ' therapy ' for those cash flow and working capital problems that often beset a growing or newer firm. ' Therapy ' is defined as being a ' curative power ' so let's examine some of the most often utilized ( and sometimes quite unknown ) business finance solutions available to business owners in Canada today.
One of those time tested entrepreneurial sayings is ' you need money to make money !'; we're rewriting that and offering up ' you need working capital and cash flow solutions to make more money '!
Growth in sales will sometimes hide some problems for quite awhile but at some point business owners/entrepreneurs recognize that fundamental business challenges will often become increasingly severe without proper business funding underpinning the company.
Profits can fund growth for awhile but ultimately some business finance basics need to be addressed. One of those? Simply the fact that your lenders and suppliers want to be paid before you often get paid from clients.
Solutions To Business Cash Flow
What then are the right solutions for your business finance needs. The majority of clients tell us they ' went to the bank ' where quite often the bank as asked for owners to put more owner equity into the company . That works if it's possible , but that is usually a big ' if ' for most business owners.
The reality is those great sales we have been talking about have created a cash flow gap - some of our clients might call it a big chasm or canyon!
Every business needs a different amount of working capital based on their industry
and how their business if financed and run . This is where the ' cash conversion cycle ' comes into play , and it's different for every business and industry.
How does the business owner/financial mgr calculate that cash conversion cycle. It's more simple than you think - take you days sales outstanding ( DSO ), add up your inventory on hand days and then subtract payables.
That final number you arrive at tells you the length of time a dollar takes to ' travel ' through your company . In some cases it might seem like a slow meander!!
Take for example a pharmaceutical type firm that has to invest and spend tons of money before getting govt approval and bringing products to market . The other side of the spectrum? It could be a large retailer who sells on cash/credit cards and gets great payment terms from key suppliers. Their cash conversion cycle is a lot less than our pharma firm example.
So what is our bottom line then ? Simply that business can control the cash conversion cycle .
You can accelerate the cash conversion cycle by accessing bank or non bank business lines of credit. Many firms look to receivable financing , inventory financing, and even purchase order financing to speed up the working capital flows in their business. The shorter the cash conversion cycle the better!
Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success to assist you with your business cash flow problems and working capital solutions to accelerate your cycle of cash.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
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 .
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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