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Canadian Business Financing – Techniques and Solutions
Canadian Business Financing . Or lack thereof?! Are there some symptoms for finance capital strategy options we can look for, and fix for small business in Canada? We think there are. While some search for angel investors and venture capital at 7 Park Avenue Financial we focus on real-world accessible financial solutions.
Here's one for you. How many business owners would associate overdue receivables, poorly moving inventory, or underused fixed assets as a symptom of too much financing? We're pretty sure that few business owners (or even their financial managers) would associate those symptoms with having too much capital!
SYMPTOMS OF THE NEED FOR ADDITIONAL BUSINESS CAPITAL
Then of course there is the other side of the coin, which is what clients always are looking for - business loan and business financing solutions. That might be bank loan/bank financing or a business finance solution via an alternative financing source - of which there are many. So what would some of those symptoms be? They are pretty obvious more often than not:
Little or no cash on hand
Vendor payment issues
Manufacturing timing/shipment issues (You can't make ' em fast enough!)
Also, by the way, if you feel you are getting too little of a return on investment on all your assets its pretty clear that might be a symptom of a capital strategy problem.
THE ABILITY TO ACCESS CASH FLOW AND WORKING CAPITAL
It's safe to say that the right amount of cash flow, working capital, and other assets would probably fix any challenges your firm is facing. Naturally, every business is different; for example, a service company requires little fixed assets and tends to be more cash flow based.
UNDERSTANDING YOUR COMPANY'S DEBT TO EQUITY RELATIONSHIP IS KEY
Here is one for you. Did you know that some analysis around your fixed capital can actually help you solve your problems? Take a good look at your long term debt and equity on the balance sheet and measure that relationship once in awhile - yearly would be a minimum timeframe.
MONITOR CURRENT ASSET ACCOUNT TURNOVER - RECEIVABLES AND INVENTORY FOCUS
We're still looking for some other symptoms though, right. Here are some more. If you feel on an ongoing basis that you’re experiencing large increases in receivable and inventory growth you are a strong candidate for some hard analysis of some new financing and capital options. It's those 'investments ' in receivables and inventory that devour your cash flow, forcing you to address new financing options. For the SME owner, those large growths in A/R and inventory actually mean you will probably be able to take less out of the company in the form of dividends, mgmt. bonuses, etc.
By the way, if you are looking at new purchases of assets ensure those assets will generate profits, not eat up capital or create losses. That's just common sense.
CONCLUSION
New Business financing options can be addressed if you have a strong handle on a very few basic calculations - those include some rudimentary things like expense per day, receivable turnover, inventory turns, etc.
Oh, and by the way, lenders of short term and longer-term capital are looking at those same things in your balance sheet, so being able to talk to those issues will help you... a lot. Note also that a business plan and cash flow projections will assist you in accessing financing more quickly versus being unprepared!
So whether your company is early stage or simply high growth and growing .. speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with capital options and business loans in the short or long term (and crisis) situations.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Click Here For 7 PARK AVENUE FINANCIAL website !
7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.
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. He is an experienced
business financing consultant
.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 financing 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.
Click here for the business finance track record of 7 Park Avenue Financial
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