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Business Cash Flow & Working Capital Solutions
Business cash flow problems are encountered at numerous stages of growth in a company's existence . The good news that numerous solutions, both ' traditional ' and ' alternative' are available to fix the problem and set your company back on the right course.
One solution to the working capital conundrum is of course to stop growing ! That's a tough one for any business owner,financial mgr, or entrepreneur to accept . If they did that though they would not need to maintain a higher level of inventory, investment in accounts receivable, or to purchase new equipment/software , etc. It then makes sense that financing solutions around those asset categories we must mentioned might just be the answer you're looking for, right?
In some cases firms might find themselves in a crisis or turnaround situation - it is very difficult to grow and expand your company when you're in the throes of daily financial type issues that deter owners and mgmt from moving forward with growth plans. Quite often these situations are accompanied by pressure from secured lenders , banks, suppliers, etc. Those situations are never comfortable.
Many firms that are growing to quickly will often find that costs and other finance issues are being masked or hidden due to the apparent success of sales. But higher sales can't hide financial flaws forever.
Obviously those sales also create the need for more working capital and the required investments in those current assets on the balance sheet - a/r , inventory, etc. As we said stopping the growth frees up cash flow and some of those creditor issues. Efficiencies around collecting your a/r faster, managing better inventory turns , etc always create more cash flow . So it shouldn't always be about volume - that old adage ' We'll make it up on volume ' somehow seems to never work!
In some cases raising prices to increase cash flow might be considered , but that's rarely the focus of many business owners.
We think you can see the point, in that the optimal solution is to ensure your cash flow / working capital availability must be measured and managed around sales growth
Many businesses in Canada, (perhaps not tech type business) would be very happy with a ten percent year over year sales growth. Let's say you were focused on growing at 25% this year, a huge increase by any measure. However, profits and cash flow and working capital don't move lock step with those sales.
What then are the actual financing solutions to those changes in your current assets in the sales growth strategy. Traditional solutions such as bank financing for business lines of credit will work - Firms that cannot access any or all the bank credit they need should consider alternative financing solutions such as asset based business credit lines. These 2 types of business credit facilities allow you to better finance and manage extending credit to your clients.
No one solution is applicable to every company in every industry - so the ability to access financing assistance from an experienced 3rd party is key .
Solutions For Cash Flow Problems In Canada:
ASSET BASED LENDING
RECEIVABLE FINANCING/FACTORING
WORKING CAPITAL TERM LOANS
SHORT TERM WORKING CAPITAL LINES
PURCHASE ORDER FINANCING
INVENTORY FINANCE
TAX CREDIT FUNDING ( SR&ED LOANS )
Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance success who can assist you in the need for proper business working capital and cash flow solutions that match your company needs.
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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